Elong Power (NASDAQ: ELPW) sheds deficit unit and lifts equity above Nasdaq minimums

Rhea-AI Filing Summary

Elong Power Holding Limited has sold 100% of its British Virgin Islands subsidiary, Elong Power International Co., Limited, and its related subsidiaries to a non-affiliated buyer for $10,000. These entities carried approximately $18 million in shareholders’ deficit, so the divestiture increased shareholders’ equity at the parent and remaining subsidiaries by the same amount.

The sale follows slowed growth and rising net losses in battery pack, battery cell and related scrap sales, and aligns with a strategic shift away from battery cell sales toward research, development, sales and service of energy storage systems. Combined with two recent financings that raised about $14.6 million in gross proceeds, the company believes its stockholders’ equity now exceeds Nasdaq’s $10 million Global Market and $2.5 million Capital Market equity requirements.

Positive

• Balance sheet strengthened: Divesting Elong BVI eliminates approximately $18 million in shareholders’ deficit, increasing shareholders’ equity for Elong Power and its remaining subsidiaries by the same amount.
• Listing compliance supported: After the $14.6 million in recent financings and the spinoff, the company believes stockholders’ equity now exceeds Nasdaq Global Market and Capital Market minimum equity requirements.

Negative

• None.

Insights

Equity & capital markets analyst

Elong removes a loss-making unit and boosts equity above Nasdaq thresholds.

Elong Power Holding Limited divested its Elong BVI subsidiary group, which had about $18 million in shareholders’ deficit. Removing this deficit directly raises consolidated shareholders’ equity by that amount, materially cleaning up the balance sheet despite the nominal $10,000 sale price.

The company also raised roughly $14.6 million in recent financings. Together, the equity gain from the spinoff and new capital mean management believes stockholders’ equity now exceeds Nasdaq’s $10 million Global Market and $2.5 million Capital Market minimums, reducing near-term listing risk while the business pivots toward energy storage systems.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of March 2026

Commission File Number:001-42416

Elong Power Holding Limited

3 Yan Jing Li Zhong Jie

Jiatai International Plaza

Block B, Room 2110

Beijing, China 100025

(Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

On March 17, 2026, Elong Power Holding Limited (the “Company”), Elong Power International Co., Limited (“Elong BVI”), a company formed under the laws of British Virgin Islands and a wholly owned subsidiary of the Company, entered into an Equity Transfer Agreement (the “Agreement”) with a non-affiliated third party (the “Buyer”), pursuant to which the Company agreed to sell to the Buyer 100% equity interest in Elong BVI, at a purchase price of $10,000. The sale of Elong BVI includes the sale of its subsidiaries, including Elong Power (Hong Kong) International Limited, Elong Power (Ganzhou) Co., Ltd., Huizhou Jingyang Energy Technology Co., Ltd. (formerly known as Huizhou City Yipeng Energy Technology Co., Ltd), Ganzhou Zhangyang Energy Technology Co., Ltd. (formerly known as Ganzhou Yipeng Energy & Technology Co., Ltd.) and Zibo Jingyang New Energy Technology Co., Ltd. (formerly known as Zibo Yipeng Energy & Technology Co., Ltd.).

The sale of Elong BVI and its subsidiaries was mainly due to slowed growth and increased net loss in the sales of battery packs, battery cells, and battery spare parts and other such as sales of product waste and scraps. It is consistent with the Company’s strategic shift away from the battery cell sales. As part of its strategic realignment, the Company will continue to focus on the research and development, sales and service of energy storage systems to provide a foundation for long-term growth. The transaction contemplated by the Agreement closed on March 19, 2026.

Elong BVI and its subsidiaries have approximately $18 million in shareholders’ deficit. The sale of Elong BVI and its subsidiaries increased the shareholders equity of the Company and its remaining subsidiaries by $18 million.

Additionally, as disclosed on the Reports on Form 6-K filed with the Securities and Exchange Commission on February 4, 2026 and March 2, 2026, the Company completed two rounds of financing and received gross proceeds of approximately $14.6 million, before deducting underwriting discount, expenses and other expenses payable by the Company.

As a result of the financings and spinoff transaction, and as of the date of this report, the Company believes it has stockholders’ equity in excess of both the $10 million stockholders’ equity requirement for continued listing on The Nasdaq Global Market and the $2.5 million stockholders’ equity requirement for continued listing on The Nasdaq Capital Market.

The foregoing summary of the Agreement is not complete and is qualified in the entirety by reference to the complete text of the Agreement, which is filed as Exhibit 10.1 to this report on Form 6-K and are incorporated by reference herein.

EXHIBIT INDEX

Exhibit No.		Description
10.1		Equity Transfer Agreement, dated March 17, 2026

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Elong Power Holding Limited
Date: March 20, 2026	By:	/s/ Xiaodan Liu
	Name:	Xiaodan Liu
	Title:	Chief Executive Officer and Chairwoman of the Board of Directors

FAQ

What transaction did Elong Power Holding Limited (ELPW) announce in this 6-K?

Elong Power Holding Limited completed the sale of 100% equity in Elong Power International Co., Limited and its subsidiaries to a non-affiliated buyer for $10,000, effectively spinning off a group that carried significant shareholders’ deficit on its balance sheet.

How does the Elong BVI sale affect ELPW’s shareholders’ equity?

Elong BVI and its subsidiaries had about $18 million in shareholders’ deficit. By selling these entities, Elong Power increased the shareholders’ equity of the parent company and its remaining subsidiaries by roughly $18 million, materially improving its equity position.

Why did Elong Power Holding Limited divest its battery-related subsidiaries?

The sale was driven by slowed growth and increased net loss in sales of battery packs, cells, spare parts and related scrap. It aligns with Elong Power’s strategic shift away from battery cell sales toward research, development, sales and service of energy storage systems.

How much new capital has ELPW raised recently and how?

Elong Power completed two financing rounds, receiving gross proceeds of about $14.6 million before underwriting discounts and expenses. These financings, disclosed in earlier reports, add fresh capital to support operations and the company’s strategic focus on energy storage systems.

What does this transaction mean for ELPW’s Nasdaq listing status?

After the $14.6 million financings and the spinoff of the deficit-laden subsidiaries, Elong Power believes its stockholders’ equity now exceeds Nasdaq’s $10 million Global Market and $2.5 million Capital Market minimum equity requirements for continued listing.

What is Elong Power’s strategic focus after selling the Elong BVI group?

Following the sale, Elong Power plans to focus on research and development, sales and service of energy storage systems. Management presents this as a strategic realignment intended to support long-term growth, moving away from lower-performing battery cell and related product sales.

Filing Exhibits & Attachments

1 document

Agreements & Contracts

• EX-10.1 EX-10.1 111.6 KB