Elong Power Holding Limited Announces First Half 2026 Financial Results

Operating cash use rose to $7,050,826 from $1,609,906 a year earlier despite the disposal-driven return to net profit.

Rhea-AI Summary

Elong Power (NASDAQ: ELPW) reported first-half 2026 net income of $20,494,107, driven by the disposal of its lithium battery manufacturing business. Revenue for the six months ended June 30 rose to $2,899,110 from $19,229 a year earlier. Gross profit increased to $8,994 from $1,923, but gross margin fell to 0.3% from 10.00% as its early-stage energy storage integration business operated with thin margins.

The March divestment generated a $22,606,404 one-time disposal gain. Continuing operations lost $2,110,295, versus $1,422,582 a year earlier. Offerings raised approximately $20 million in gross proceeds. June-end cash was $5,939,950, and shareholders’ equity reached $14,918,990 versus a year-end deficit. Basic and diluted earnings per share were $411.37, versus a $3,071.40 loss, retroactively adjusted for the 1-for-45 reverse split effected August 10, 2026.

14 points · 3 major

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How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

3 major · 12 points

How the balance works

Positive

• Major pointFirst-half 2026 net income of $20,494,107 reversed a $2,655,477 loss, driven by a $22,606,404 disposal gain.
• Major pointApproximately $20 million gross proceeds raised through first-half 2026 offerings support energy storage development and marketing. 7.3× market cap
• Major pointFirst-half borrowing proceeds added $4,568,835 from related parties and $1,289,909 from third parties.
• Moderate pointFirst-half 2026 revenue rose to $2,899,110 from $19,229 in the same period of 2025.
• Moderate pointMarch 2026 manufacturing divestment completed the pivot to an asset-light energy storage integration business.
• Moderate pointShareholders’ equity of $14,918,990 at June-end replaced a $22,743,860 deficit at December 31, 2025.
• Moderate pointTotal liabilities fell to $7,926,039 at June-end from $50,485,095 at December 31, 2025.

7 minor points

• Minor pointJune-end cash of $5,939,950 increased from $443,591 at December 31, 2025.
• Minor pointFirst-half gross profit increased to $8,994 from $1,923 a year earlier.
• Minor pointBasic and diluted EPS of $411.37 reversed a $3,071.40 loss; both periods reflect the reverse split.
• Minor pointFirst-half selling expenses fell to $505 from $19,985 a year earlier.
• Minor pointFirst-half interest income increased to $59,148 from $200 a year earlier.
• Minor pointFirst-half other income reached $281,267, compared with none a year earlier.
• Minor pointFirst-half discontinued-operation loss narrowed to $2,002 from $1,232,895, excluding the disposal gain.

Negative

• Major pointContinuing-operation loss widened to $2,110,295 in first-half 2026 from $1,422,582 a year earlier.
• Major pointOperating cash use rose to $7,050,826 in first-half 2026 from $1,609,906 a year earlier.
• Major pointCommon-stock issuance raised $18,328,919 in first-half 2026 while adding shares that dilute existing holders. 6.7× market cap
• Moderate pointFirst-half gross margin declined to 0.3% from 10.00% a year earlier amid thin-margin integration sales.
• Moderate pointShort-term related-party loans increased to $4,679,224 at June-end from $2,030,366 at December 31, 2025. 1.7× market cap

7 minor points

• Minor pointFirst-half offering costs totaled $1,702,120.
• Minor pointFirst-half general and administrative expenses increased to $1,809,901 from $1,252,874 a year earlier.
• Minor pointFirst-half operating loss widened to $1,801,412 from $1,270,936 a year earlier.
• Minor pointFirst-half interest expense rose to $206,698 from $22,899 a year earlier.
• Minor pointFirst-half foreign-exchange losses increased to $255,926 from $128,947 a year earlier.
• Minor pointFirst-half short-term investment fair-value losses totaled $186,854, compared with none a year earlier.
• Minor pointFirst-half prepaid expenses and other current assets absorbed $7,349,365 of operating cash, versus $28,014 a year earlier.

News Explained

The reported June 30 cash balance of $5,939,950 sits alongside $7,050,826 of cash used in operating activities during the first half, adding the period’s operating cash outflow to the liquidity picture.

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Details

Market move: ELPW -4.10% vs previous close. 1H26 earnings report

+12.1% Peak in 0 min

$2.72 – $3.53 Day Range

$2.62M Market Cap

On Oct 6, the day this news came out, the latest delayed price for ELPW is 4.10% below the previous close. Argus tracked a peak move of +12.1% during the session. Our momentum scanner has recorded 17 alerts for this stock so far that day. The latest delayed price is $2.81. Relative volume is exceptionally heavy at 135.2x the average.

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Key Figures

Revenue: US$2.90 million; +14,977% year over year Gross margin: 0.3%, down from 10.00% Net income: US$20.49 million +3 more

Revenue

US$2.90 million; +14,977% year over year

First half of fiscal 2026

Gross margin

0.3%, down from 10.00%

First half of fiscal 2026 versus the same period of the prior year

Net income

US$20.49 million

First half of fiscal 2026; included a one-time non-operating disposal gain

Gain on disposal

US$22.61 million

One-time, non-operating gain in the first half of fiscal 2026

Net loss from continuing operations

US$2.11 million loss

First half of fiscal 2026, compared with a US$1.42 million loss in the same period of the prior year

Offering proceeds

Approximately US$20 million gross proceeds

Offerings completed during the first half of 2026

Key Terms

non-operating gain, diluted earnings per share, continuing operations, equity method investment, +1 more

5 terms

non-operating gain financial

"a one-time, non-operating gain of US$22.61 million on the disposal"

Non-operating gain is profit a company records from activities outside its core business operations, such as selling an asset, receiving investment income, or winning a one-time legal settlement. It matters to investors because these gains can temporarily boost reported earnings without reflecting the ongoing business performance, similar to finding a windfall in the attic versus earning a steady paycheck, and so they affect how one interprets a company’s sustainable profitability.

diluted earnings per share financial

"Both basic and diluted earnings per share were US$411"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

continuing operations financial

"Net loss from continuing operations was US$2.11 million"

Continuing operations are the parts of a company's business that it expects to keep running into the future, excluding divisions or activities it has sold, closed, or classified as discontinued. Investors watch continuing operations because they show the company’s core ability to generate revenue and profit over time — like evaluating the healthy, ongoing crops on a farm rather than one-off harvests from fields you've already sold.

equity method investment financial

"Share of profit from equity method investment"

An equity method investment is an accounting way to report ownership in another company when an investor has significant influence (commonly around 20–50% of voting rights). Instead of listing the other company’s full assets and debts, the investor records its share of that company’s profits or losses on its own income statement—like keeping track of your share of a neighborhood bakery’s monthly earnings. Investors care because those shared profits, losses and changes in the investee’s value directly affect the investor’s reported earnings and balance sheet, so this method can materially change a company’s financial picture and valuation.

discontinued operations financial

"Gain on disposal of subsidiaries"

Discontinued operations are parts of a company that it has decided to sell or shut down, and no longer plans to run in the future. This matters to investors because it helps them understand which parts of the business are ongoing and which are being phased out, providing a clearer picture of the company’s current performance and future prospects. Think of it like a store closing a department—it no longer contributes to sales or profits.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BEIJING, Oct. 06, 2026 (GLOBE NEWSWIRE) -- Elong Power Holding Limited (Elong Power, NASDAQ: ELPW, together with its subsidiaries and consolidated entities, the “Company”) today announced its unaudited financial results for the first half of fiscal year 2026 ended June 30, 2026 (the “First Half of 2026”). The Company has completed the divestment of its lithium battery manufacturing business, fully pivoted to an asset-light energy storage system integration business, and completed offerings with aggregate gross proceeds of approximately US$20 million, laying a solid funding foundation for its global energy storage market expansion.

First Half 2026 Financial and Operating Highlights

	●	Net revenue was US$2.90 million for the first half of fiscal year 2026, representing a substantial increase of 14,977% from US$19,229 in the same period of the prior year. This growth was primarily attributable to the significant ramp-up in sales of our energy storage system integration equipment and supporting accessories business;
	●	Gross profit was US$8,994 for the first half of fiscal year 2026, representing an increase of 368% from US$1,923 in the same period of the prior year; gross margin declined from 10.00% in the same period of the prior year to 0.3%, primarily due to the thin-margin operation of the energy storage system integration equipment and supporting accessories sales business in its early stage;
	●	Net income was US$20.49 million for the first half of fiscal year 2026, compared with a net loss of US$2.66 million in the same period of the prior year. This result was driven by a one-time, non-operating gain of US$22.61 million on the disposal of the lithium battery manufacturing business;
	●	Net loss from continuing operations (sales of energy storage system integration equipment and supporting accessories) was US$2.11 million for the first half of fiscal year 2026, widening from a net loss of US$1.42 million in the same period of the prior year;
	●	Both basic and diluted earnings per share were US$411 for the first half of fiscal year 2026, compared with a loss per share of US$3,071 in the same period of the prior year. The per-share amounts give retroactive effect to the 1-for-45 reverse share split effected August 10, 2026, after period end.

Management Commentary

Elong Power’s management stated: “The first half of 2026 marked a significant change in the Company’s business. We completed the divestment of our lithium battery manufacturing business and recognized a non-operating disposal gain, thereby pivoting to an asset-light energy storage system integration business and concentrating resources on the research and development and market development of energy storage products. Meanwhile, the Company completed an approximately US$20 million public market financing during the first half of 2026, providing solid funding support for energy storage product research and development and market promotion, and laying the foundation for the Company’s global energy storage market expansion. We believe that our asset-light model focused on the energy storage integration business will help drive long-term, sustainable value creation for the Company.”

Business Progress and Operational Review

1. Asset Divestment and Strategic Transformation: In March 2026, the Company completed the divestment of its lithium battery manufacturing subsidiary, adopted an asset-light operating model, and focused on the energy storage system integration business, while retaining its research and development, sales and full-lifecycle service capabilities. The disposal gains recognized from the divestment provided the primary support for the turnaround to profitability in the current period.

2. Public Market Financing: The Company completed offerings with aggregated gross proceeds of approximately US$20 million during the first half of 2026, providing funding support for energy storage product research and development and market promotion, and facilitating its global energy storage market expansion.

3. Operating Results: Net revenues in the current period were derived almost entirely from the sales of energy storage system integration equipment and supporting accessories. This business was still in its early stage with an extremely low revenue base in the same period of the prior year. During the current period, the Company focused on expanding its customer base and securing orders for energy storage products, and sales volume increased significantly, driving revenue from US$19,229 to US$2.90 million. Meanwhile, the business is currently a thin-margin business with limited per-unit gross profit. As sales volume grew, the consolidated gross margin declined from 10.00% in the same period of the prior year to 0.3%, with gross profit of only US$8,994, which was insufficient to cover selling, administrative and other operating expenses, resulting in a net loss of US$2.11 million from continuing operations in the current period.

About Elong Power

Elong Power Holding Limited is an exempted company incorporated under the laws of the Cayman Islands. Adhering to its development strategy of “Asset-Light, R&D-Intensive, AI + Energy Storage, Global Scenario Layout”, the Company focuses on lithium battery energy storage system core business, with strategic layout covering overseas residential & commercial and industrial (C&I) energy storage, as well as grid-side energy storage in China. The Company is committed to delivering high-reliability, cost-effective and intelligent energy storage system solutions to global customers. Elong Power is chaired and led by Ms. Xiaodan Liu as Chief Executive Officer.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar expressions, and include statements regarding the Company’s business strategy, its transition to an energy storage system integration business, its global expansion, its use of financing proceeds and its future results of operations. Such statements involve risks and uncertainties, including, among others: the Company’s limited operating history in the energy storage business; its ability to achieve positive gross margins and profitability from continuing operations; its need for additional financing and its ability to continue as a going concern; customer and supplier concentration; competition; related-party transactions; maintaining its Nasdaq listing; PRC regulatory, economic and currency risks; and the other risks described under “Item 3. Key Information—D. Risk Factors” in the Company’s most recent Annual Report on Form 20-F and other SEC filings. Actual results may differ materially. Except as required by law, the Company undertakes no obligation to update any forward-looking statement.

Investor & Media Contact

Elong Power Investor Relations
Email: ir@elongpower.com

ELONG POWER HOLDING LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amount in U.S. dollars, except for number of shares or otherwise noted)

		As of June 30				As of December 31
		2026				2025
		(Unaudited)				(Audited)
ASSETS
Current assets:
Cash and cash equivalents			5,939,950				443,591
Short-term investments			2,940,490				7,165,232
Accounts receivable			220,295				889,533
Amounts due from related parties			138,091				71,499
Prepaid expenses and other current assets			8,874,078				2,066,487
Current assets held for sale associated with discontinued operation of ELPW			-				1,240,751
Total current assets			18,112,904				11,877,093
Equity method investment			4,572,796
Property, plant and equipment, net			100,255				117,453
Right-of-use assets, net			59,074				71,751
Non-current assets held for sale associated with discontinued operation of ELPW			-				15,674,938
Total non-current assets			4,732,125				15,864,142
Total assets			22,845,029				27,741,235
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Short-term loans-third parties			1,937,582				7,498,469
Short-term loans-related parties			4,679,224				2,030,366
Accounts payable			46,234				875,063
Amounts due to related parties			-				79,773
Contract liabilities			169,470				2,038,433
Accrued expenses and other current liabilities			842,508				1,812,778
Provision for product warranty, current			182,006				83,784
Lease liabilities, current			33,702				32,074
Current liabilities held for sale associated with discontinued operation of ELPW			-				11,436,442
Total current liabilities			7,890,726				25,887,182
Provision for product warranty, non-current			15,120				638
Lease liabilities, non-current			20,193				41,644
Non-current liabilities held for sale associated with discontinued operation of ELPW			-				24,555,631
Total non-current liabilities			35,313				24,597,913
Total liabilities			7,926,039				50,485,095
Class A Ordinary Shares, US$0.576 par value, 333,333,333 shares authorized, 1,065 shares issued and 769 outstanding as of December 31, 2025; 145,073* shares issued and 144,778 outstanding as of June 30, 2026;			83,392				443
Class B Ordinary Shares, US$0.576 par value, 83,333,333 shares authorized, 101 shares issued and outstanding as of December 31, 2025; 2,545 shares issued and outstanding as of June 30, 2026*			1,466				58
Treasury shares			(80	)			(80	)
Additional paid-in capital			67,725,796				51,070,354
Statutory Reserve			-				708,470
Accumulated deficit			(53,271,564	)			(74,474,141	)
Accumulated other comprehensive (loss) income			379,980				(48,964	)
Total shareholders’ equity (deficit)			14,918,990				(22,743,860	)
Total liabilities and shareholders’ equity (deficit)			22,845,029				27,741,235

	*	Including 295 shares issued but not outstanding, consisting of 156 forfeited Earnout Shares pending cancellation and 139 shares held as treasury stock reserved for future issuance, as discussed in Note 17.
	*	Giving retroactive effect to the 1-for-45 reverse share split effected on August 10, 2026.

ELONG POWER HOLDING LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Amount in U.S. dollars, except for number of shares or otherwise noted)

		For the six months ended June 30,
		2026				2025
		Unaudited				Unaudited
Revenues		$	2,899,110			$	19,229
Cost of revenues			(2,890,116	)			(17,306	)
GROSS PROFIT			8,994				1,923
OPERATING EXPENSES
Selling expenses			(505	)			(19,985	)
General and administrative expenses			(1,809,901	)			(1,252,874	)
TOTAL OPERATING EXPENSES			(1,810,406	)			(1,272,859	)
OPERATING LOSS			(1,801,412	)			(1,270,936	)
OTHER (EXPENSE) INCOME
Interest income			59,148				200
Interest expense			(206,698	)			(22,899	)
Foreign currency exchange losses, net			(255,926	)			(128,947	)
Share of profit from equity method investment			180				-
Fair value losses on short-term investments			(186,854	)			-
Other income			281,267				-
TOTAL NON OPERATING EXPENSE, NET			(308,883	)			(151,646	)
LOSS BEFORE INCOME TAXES			(2,110,295	)			(1,422,582	)
INCOME TAX EXPENSE			-				-
NET LOSS FROM CONTINUING OPERATIONS			(2,110,295	)			(1,422,582	)
DISCONTINUED OPERATIONS:
Loss from discontinued operations			(2,002	)			(1,232,895	)
Gain on disposal of subsidiaries			22,606,404				-
NET INCOME(LOSS) FROM DISCONTINUED OPERATIONS			22,604,402				(1,232,895	)
NET INCOME (LOSS)		$	20,494,107			$	(2,655,477	)
Net income (loss) per share attributable to ordinary shareholders of the Company-Basic and Diluted *
Continuing operations			(42.36	)			(1,645.40	)
Discontinued operations			453.73				(1,426.00	)
Total basic and diluted		$	411.37			$	(3,071.40	)
WEIGHTED AVERAGE SHARES OUTSTANDING USED IN CALCULATING BASIC AND DILUTED LOSS PER SHARE
Class A and Class B Ordinary Shares			49,819				865

*

Giving retroactive effect to the 1-for-45 reverse share split effected on August 10, 2026.

ELONG POWER HOLDING LIMITED AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(Amount in U.S. dollars, except for number of shares or otherwise noted)

		For the six months ended June 30,
		2026				2025
Cash flows from operating activities
Net income (loss)		$	20,494,107			$	(2,655,477	)
Provision for losses on accounts receivable			-				23,132
Provision of obsolete inventory			-				148,912
Depreciation and amortization expense			25,488				60,221
Interest on lease liabilities			1,323				3,678
Amortization of operating and finance right-of-use assets			14,883				820,287
Gain on disposals of property, plant and equipment			-				(66,138	)
Gain from debt forgiveness			-				(7,218	)
Provision (reversal) for warranty liability			108,876				(153,845	)
Fair value losses on short-term investments			186,854				-
Share of profit from equity method investment			(180	)			-
Gain on disposal of subsidiaries			(22,606,404	)			-
Changes in operating assets and liabilities:
Accounts receivable			682,962				(276,816	)
Inventories			-				(38,474	)
Amounts due from related parties			(128,072	)			-
Prepaid expenses and other current assets			(7,349,365	)			(28,014	)
Long term accounts receivable			-				99,183
Accounts and notes payable			(795,842	)			50,904
Amounts due to related parties			-				140,972
Contract liabilities			(1,791,605	)			150,313
Accrued expenses and other current liabilities			4,106,253				156,703
Product warranty liability			53,791				(38,229	)
Lease liability			(53,895	)			-
Net cash used in operating activities			(7,050,826	)			(1,609,906	)
Cash flows from investing activities
Purchase of property, plant and equipment			(5,128	)			(62,254	)
Proceeds from disposal of short term investments			2,045,400				-
Placement of short-term investments			(4,132,849	)			-
Placement of equity method investment			(4,572,616	)			-
Disposal of subsidiaries, net of cash disposed			(123,021	)			-
Net cash used in investing activities			(6,788,214	)			(62,254	)
Cash flows from financing activities
Proceeds from borrowings from related parties			4,568,835				1,280,093
Repayment of borrowings to related parties			(873,231	)			-
Proceeds from borrowings from third parties			1,289,909				322,045
Repayments of borrowings to third parties			(2,189,134	)			(31,269	)
Offering costs			(1,702,120	)			-
Proceeds from issuance of common stock			18,328,919				-
Net cash provided by financing activities			19,423,178				1,570,869
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash			(216,732	)			(16,182	)
Net increase in cash, cash equivalents and restricted cash			5,367,406				(117,473	)
Cash and cash equivalents and restricted cash, beginning of period			572,544				318,001
Cash and cash equivalents and restricted cash, end of period		$	5,939,950				200,528
Supplemental disclosure of cash flow information:
Issuance of Class B ordinary shares for Debt Settlement			48,600				-
Issuance of Class B to a shareholder			64,400				-
Short term investment Redemption Proceeds Applied to Offset Loans			6,289,040				-
Lease liabilities arising from obtaining right-of-use assets			-				311,871

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

Why did Elong Power report a profit in the first half of 2026?

Elong Power’s $20,494,107 net income was driven by a one-time $22,606,404 gain from disposing of its lithium battery manufacturing business. Continuing operations still recorded a $2,110,295 loss, compared with a $1,422,582 loss in the first half of 2025.

When did Elong Power’s 1-for-45 reverse share split take effect?

Elong Power’s 1-for-45 reverse share split took effect on August 10, 2026, after the first-half reporting period ended. The reported per-share amounts and share figures give retroactive effect to that split.

What financing costs did Elong Power incur in the first half of 2026?

Elong Power recorded $1,702,120 in offering costs during the first half of 2026. Its cash-flow statement also reported $18,328,919 in proceeds from common-stock issuance.

How much did Elong Power invest in an equity-method investment in the first half of 2026?

Elong Power placed $4,572,616 into an equity-method investment during the first half of 2026. This is an investment whose share of profit is recorded in earnings; the company reported $180 of such profit and a June-end carrying value of $4,572,796.