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 | ||||||
