Elephant Holdings Group Limited (8635) published an announcement detailing a change in the allocation of net proceeds from its previous placing of 80.00 million new shares under a general mandate. According to the announcement, the total net proceeds of HK$33.60 million have been partially used for multiple business development activities, leaving HK$26.40 million unutilized.
The company’s board resolved to reallocate a significant portion of the remaining proceeds to support and expand its artificial intelligence (AI) business. This shift follows management’s recognition of rising market demand for data-driven technology services and the AI business’s existing contribution, which reached approximately HK$22.10 million—roughly 69.20% of the company’s total revenue for the six months ended 30 September 2025.
Under the revised allocation, funds originally earmarked for the e-commerce business and related logistics arrangements will be redirected to AI-focused development, including the recruitment of specialized staff, acquisition of high-quality data for model training, and technical enhancements. The board believes the AI business creates synergies with the company’s financial trading and non-financial IT solutions, improving resource utilization and overall profitability.
The company stated that the nature of its business remains unchanged and emphasizes that this reallocation aims to enhance commercial returns and better align with core technology strengths. Shareholders and potential investors are advised to exercise caution when trading in the company’s securities.
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