{"success":true,"data":{"pressRelease":{"id":"161332","rtpr_id":"nGNX6ZzrBX-20261006","ticker":"ELPW","exchange":"NASDAQ","all_tickers":["ELPW"],"title":"Elong Power Holding Limited Announces First Half 2026 Financial Results","author":"Globe Newswire","published_at":"2026-10-06T09:00:00.377Z","article_body":"BEIJING, Oct. 06, 2026 (GLOBE NEWSWIRE) -- Elong Power Holding Limited (Elong\nPower, NASDAQ: ELPW, together with its subsidiaries and consolidated entities,\nthe “Company”) today announced its unaudited financial results for the\nfirst half of fiscal year 2026 ended June 30, 2026 (the “First Half of\n2026”). The Company has completed the divestment of its lithium battery\nmanufacturing business, fully pivoted to an asset-light energy storage system\nintegration business, and completed offerings with aggregate gross proceeds of\napproximately US$20 million, laying a solid funding foundation for its global\nenergy storage market expansion.\n\nFirst Half 2026 Financial and Operating Highlights\n\n ● 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; \n ● 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; \n ● 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; \n ● 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; \n ● 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. \n\nManagement Commentary\n\nElong Power’s management stated: “The first half of 2026 marked a\nsignificant change in the Company’s business. We completed the divestment of\nour lithium battery manufacturing business and recognized a non-operating\ndisposal gain, thereby pivoting to an asset-light energy storage system\nintegration business and concentrating resources on the research and\ndevelopment and market development of energy storage products. Meanwhile, the\nCompany completed an approximately US$20 million public market financing\nduring the first half of 2026, providing solid funding support for energy\nstorage product research and development and market promotion, and laying the\nfoundation for the Company’s global energy storage market expansion. We\nbelieve that our asset-light model focused on the energy storage integration\nbusiness will help drive long-term, sustainable value creation for the\nCompany.”\n\nBusiness Progress and Operational Review\n\n1. Asset Divestment and Strategic Transformation: In March 2026, the Company\ncompleted the divestment of its lithium battery manufacturing subsidiary,\nadopted an asset-light operating model, and focused on the energy storage\nsystem integration business, while retaining its research and development,\nsales and full-lifecycle service capabilities. The disposal gains recognized\nfrom the divestment provided the primary support for the turnaround to\nprofitability in the current period.\n\n2. Public Market Financing: The Company completed offerings with aggregated\ngross proceeds of approximately US$20 million during the first half of 2026,\nproviding funding support for energy storage product research and development\nand market promotion, and facilitating its global energy storage market\nexpansion.\n\n3. Operating Results: Net revenues in the current period were derived almost\nentirely from the sales of energy storage system integration equipment and\nsupporting accessories. This business was still in its early stage with an\nextremely low revenue base in the same period of the prior year. During the\ncurrent period, the Company focused on expanding its customer base and\nsecuring orders for energy storage products, and sales volume increased\nsignificantly, driving revenue from US$19,229 to US$2.90 million. Meanwhile,\nthe business is currently a thin-margin business with limited per-unit gross\nprofit. As sales volume grew, the consolidated gross margin declined from\n10.00% in the same period of the prior year to 0.3%, with gross profit of only\nUS$8,994, which was insufficient to cover selling, administrative and other\noperating expenses, resulting in a net loss of US$2.11 million from continuing\noperations in the current period.\n\nAbout Elong Power\n\nElong Power Holding Limited is an exempted company incorporated under the laws\nof the Cayman Islands. Adhering to its development strategy of “Asset-Light,\nR&D-Intensive, AI + Energy Storage, Global Scenario Layout”, the Company\nfocuses on lithium battery energy storage system core business, with strategic\nlayout covering overseas residential & commercial and industrial (C&I) energy\nstorage, as well as grid-side energy storage in China. The Company is\ncommitted to delivering high-reliability, cost-effective and intelligent\nenergy storage system solutions to global customers. Elong Power is chaired\nand led by Ms. Xiaodan Liu as Chief Executive Officer.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended, and Section 21E of the\nSecurities Exchange Act of 1934, as amended, and the Private Securities\nLitigation Reform Act of 1995. These statements can be identified by\nterminology such as “will,” “expects,” “anticipates,” “aims,”\n“future,” “intends,” “plans,” “believes,” “estimates,”\n“likely to” and similar expressions, and include statements regarding the\nCompany’s business strategy, its transition to an energy storage system\nintegration business, its global expansion, its use of financing proceeds and\nits future results of operations. Such statements involve risks and\nuncertainties, including, among others: the Company’s limited operating\nhistory in the energy storage business; its ability to achieve positive gross\nmargins and profitability from continuing operations; its need for additional\nfinancing and its ability to continue as a going concern; customer and\nsupplier concentration; competition; related-party transactions; maintaining\nits Nasdaq listing; PRC regulatory, economic and currency risks; and the other\nrisks described under “Item 3. Key Information—D. Risk Factors” in the\nCompany’s most recent Annual Report on Form 20-F and other SEC filings.\nActual results may differ materially. Except as required by law, the Company\nundertakes no obligation to update any forward-looking statement.\n\nInvestor & Media Contact\n\nElong Power Investor Relations\nEmail: ir@elongpower.com\n\nELONG POWER HOLDING LIMITED AND SUBSIDIARIES\nUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS\n(Amount in U.S. dollars, except for number of shares or otherwise noted)\n\n As of June 30 As of December 31 \n 2026 2025 \n (Unaudited) (Audited) \n ASSETS \n Current assets: \n Cash and cash equivalents 5,939,950 443,591 \n Short-term investments 2,940,490 7,165,232 \n Accounts receivable 220,295 889,533 \n Amounts due from related parties 138,091 71,499 \n Prepaid expenses and other current assets 8,874,078 2,066,487 \n Current assets held for sale associated with discontinued operation of ELPW - 1,240,751 \n Total current assets 18,112,904 11,877,093 \n Equity method investment 4,572,796 \n Property, plant and equipment, net 100,255 117,453 \n Right-of-use assets, net 59,074 71,751 \n Non-current assets held for sale associated with discontinued operation of ELPW - 15,674,938 \n Total non-current assets 4,732,125 15,864,142 \n Total assets 22,845,029 27,741,235 \n LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) \n Current liabilities: \n Short-term loans-third parties 1,937,582 7,498,469 \n Short-term loans-related parties 4,679,224 2,030,366 \n Accounts payable 46,234 875,063 \n Amounts due to related parties - 79,773 \n Contract liabilities 169,470 2,038,433 \n Accrued expenses and other current liabilities 842,508 1,812,778 \n Provision for product warranty, current 182,006 83,784 \n Lease liabilities, current 33,702 32,074 \n Current liabilities held for sale associated with discontinued operation of ELPW - 11,436,442 \n Total current liabilities 7,890,726 25,887,182 \n \n Provision for product warranty, non-current 15,120 638 \n Lease liabilities, non-current 20,193 41,644 \n Non-current liabilities held for sale associated with discontinued operation of ELPW - 24,555,631 \n Total non-current liabilities 35,313 24,597,913 \n Total liabilities 7,926,039 50,485,095 \n 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 \n 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 \n Treasury shares (80 ) (80 ) \n Additional paid-in capital 67,725,796 51,070,354 \n Statutory Reserve - 708,470 \n Accumulated deficit (53,271,564 ) (74,474,141 ) \n Accumulated other comprehensive (loss) income 379,980 (48,964 ) \n Total shareholders’ equity (deficit) 14,918,990 (22,743,860 ) \n Total liabilities and shareholders’ equity (deficit) 22,845,029 27,741,235 \n\n\n\n * 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. \n * Giving retroactive effect to the 1-for-45 reverse share split effected on August 10, 2026. \n\nELONG POWER HOLDING LIMITED AND SUBSIDIARIES\nUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE\nINCOME (LOSS)\n(Amount in U.S. dollars, except for number of shares or otherwise noted)\n\n For the six months ended June 30, \n 2026 2025 \n Unaudited Unaudited \n \n Revenues $ 2,899,110 $ 19,229 \n Cost of revenues (2,890,116 ) (17,306 ) \n GROSS PROFIT 8,994 1,923 \n \n OPERATING EXPENSES \n Selling expenses (505 ) (19,985 ) \n General and administrative expenses (1,809,901 ) (1,252,874 ) \n TOTAL OPERATING EXPENSES (1,810,406 ) (1,272,859 ) \n \n OPERATING LOSS (1,801,412 ) (1,270,936 ) \n \n OTHER (EXPENSE) INCOME \n Interest income 59,148 200 \n Interest expense (206,698 ) (22,899 ) \n Foreign currency exchange losses, net (255,926 ) (128,947 ) \n Share of profit from equity method investment 180 - \n Fair value losses on short-term investments (186,854 ) - \n Other income 281,267 - \n TOTAL NON OPERATING EXPENSE, NET (308,883 ) (151,646 ) \n \n LOSS BEFORE INCOME TAXES (2,110,295 ) (1,422,582 ) \n \n INCOME TAX EXPENSE - - \n \n NET LOSS FROM CONTINUING OPERATIONS (2,110,295 ) (1,422,582 ) \n \n DISCONTINUED OPERATIONS: \n Loss from discontinued operations (2,002 ) (1,232,895 ) \n Gain on disposal of subsidiaries 22,606,404 - \n NET INCOME(LOSS) FROM DISCONTINUED OPERATIONS 22,604,402 (1,232,895 ) \n \n NET INCOME (LOSS) $ 20,494,107 $ (2,655,477 ) \n \n Net income (loss) per share attributable to ordinary shareholders of the Company-Basic and Diluted * \n Continuing operations (42.36 ) (1,645.40 ) \n Discontinued operations 453.73 (1,426.00 ) \n Total basic and diluted $ 411.37 $ (3,071.40 ) \n WEIGHTED AVERAGE SHARES OUTSTANDING USED IN CALCULATING BASIC AND DILUTED LOSS PER SHARE \n Class A and Class B Ordinary Shares 49,819 865 \n\n\n\n * Giving retroactive effect to the 1-for-45 reverse share split effected on August 10, 2026. \n\nELONG POWER HOLDING LIMITED AND SUBSIDIARIES\nUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS\nFOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025\n(Amount in U.S. dollars, except for number of shares or otherwise noted)\n\n For the six months ended June 30, \n 2026 2025 \n \n Cash flows from operating activities \n Net income (loss) $ 20,494,107 $ (2,655,477 ) \n Provision for losses on accounts receivable - 23,132 \n Provision of obsolete inventory - 148,912 \n Depreciation and amortization expense 25,488 60,221 \n Interest on lease liabilities 1,323 3,678 \n Amortization of operating and finance right-of-use assets 14,883 820,287 \n Gain on disposals of property, plant and equipment - (66,138 ) \n Gain from debt forgiveness - (7,218 ) \n Provision (reversal) for warranty liability 108,876 (153,845 ) \n Fair value losses on short-term investments 186,854 - \n Share of profit from equity method investment (180 ) - \n Gain on disposal of subsidiaries (22,606,404 ) - \n Changes in operating assets and liabilities: \n Accounts receivable 682,962 (276,816 ) \n Inventories - (38,474 ) \n Amounts due from related parties (128,072 ) - \n Prepaid expenses and other current assets (7,349,365 ) (28,014 ) \n Long term accounts receivable - 99,183 \n Accounts and notes payable (795,842 ) 50,904 \n Amounts due to related parties - 140,972 \n Contract liabilities (1,791,605 ) 150,313 \n Accrued expenses and other current liabilities 4,106,253 156,703 \n Product warranty liability 53,791 (38,229 ) \n Lease liability (53,895 ) - \n Net cash used in operating activities (7,050,826 ) (1,609,906 ) \n \n Cash flows from investing activities \n Purchase of property, plant and equipment (5,128 ) (62,254 ) \n Proceeds from disposal of short term investments 2,045,400 - \n Placement of short-term investments (4,132,849 ) - \n Placement of equity method investment (4,572,616 ) - \n Disposal of subsidiaries, net of cash disposed (123,021 ) - \n Net cash used in investing activities (6,788,214 ) (62,254 ) \n \n Cash flows from financing activities \n Proceeds from borrowings from related parties 4,568,835 1,280,093 \n Repayment of borrowings to related parties (873,231 ) - \n Proceeds from borrowings from third parties 1,289,909 322,045 \n Repayments of borrowings to third parties (2,189,134 ) (31,269 ) \n Offering costs (1,702,120 ) - \n Proceeds from issuance of common stock 18,328,919 - \n Net cash provided by financing activities 19,423,178 1,570,869 \n \n Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash (216,732 ) (16,182 ) \n Net increase in cash, cash equivalents and restricted cash 5,367,406 (117,473 ) \n Cash and cash equivalents and restricted cash, beginning of period 572,544 318,001 \n Cash and cash equivalents and restricted cash, end of period $ 5,939,950 200,528 \n Supplemental disclosure of cash flow information: \n Issuance of Class B ordinary shares for Debt Settlement 48,600 - \n Issuance of Class B to a shareholder 64,400 - \n Short term investment Redemption Proceeds Applied to Offset Loans 6,289,040 - \n Lease liabilities arising from obtaining right-of-use assets - 311,871 \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/ee19363b-440f-4174-ae3c-7a940ea524a2)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX6ZzrBX-20261006","title":"Elong Power Holding Limited Announces First Half 2026 Financial Results","author":"Globe Newswire","ticker":"ELPW","created":"2026-10-06T09:00:00.377Z","tickers":["ELPW"],"exchange":"NASDAQ","article_body":"BEIJING, Oct. 06, 2026 (GLOBE NEWSWIRE) -- Elong Power Holding Limited (Elong\nPower, NASDAQ: ELPW, together with its subsidiaries and consolidated entities,\nthe “Company”) today announced its unaudited financial results for the\nfirst half of fiscal year 2026 ended June 30, 2026 (the “First Half of\n2026”). The Company has completed the divestment of its lithium battery\nmanufacturing business, fully pivoted to an asset-light energy storage system\nintegration business, and completed offerings with aggregate gross proceeds of\napproximately US$20 million, laying a solid funding foundation for its global\nenergy storage market expansion.\n\nFirst Half 2026 Financial and Operating Highlights\n\n ● 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; \n ● 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; \n ● 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; \n ● 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; \n ● 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. \n\nManagement Commentary\n\nElong Power’s management stated: “The first half of 2026 marked a\nsignificant change in the Company’s business. We completed the divestment of\nour lithium battery manufacturing business and recognized a non-operating\ndisposal gain, thereby pivoting to an asset-light energy storage system\nintegration business and concentrating resources on the research and\ndevelopment and market development of energy storage products. Meanwhile, the\nCompany completed an approximately US$20 million public market financing\nduring the first half of 2026, providing solid funding support for energy\nstorage product research and development and market promotion, and laying the\nfoundation for the Company’s global energy storage market expansion. We\nbelieve that our asset-light model focused on the energy storage integration\nbusiness will help drive long-term, sustainable value creation for the\nCompany.”\n\nBusiness Progress and Operational Review\n\n1. Asset Divestment and Strategic Transformation: In March 2026, the Company\ncompleted the divestment of its lithium battery manufacturing subsidiary,\nadopted an asset-light operating model, and focused on the energy storage\nsystem integration business, while retaining its research and development,\nsales and full-lifecycle service capabilities. The disposal gains recognized\nfrom the divestment provided the primary support for the turnaround to\nprofitability in the current period.\n\n2. Public Market Financing: The Company completed offerings with aggregated\ngross proceeds of approximately US$20 million during the first half of 2026,\nproviding funding support for energy storage product research and development\nand market promotion, and facilitating its global energy storage market\nexpansion.\n\n3. Operating Results: Net revenues in the current period were derived almost\nentirely from the sales of energy storage system integration equipment and\nsupporting accessories. This business was still in its early stage with an\nextremely low revenue base in the same period of the prior year. During the\ncurrent period, the Company focused on expanding its customer base and\nsecuring orders for energy storage products, and sales volume increased\nsignificantly, driving revenue from US$19,229 to US$2.90 million. Meanwhile,\nthe business is currently a thin-margin business with limited per-unit gross\nprofit. As sales volume grew, the consolidated gross margin declined from\n10.00% in the same period of the prior year to 0.3%, with gross profit of only\nUS$8,994, which was insufficient to cover selling, administrative and other\noperating expenses, resulting in a net loss of US$2.11 million from continuing\noperations in the current period.\n\nAbout Elong Power\n\nElong Power Holding Limited is an exempted company incorporated under the laws\nof the Cayman Islands. Adhering to its development strategy of “Asset-Light,\nR&D-Intensive, AI + Energy Storage, Global Scenario Layout”, the Company\nfocuses on lithium battery energy storage system core business, with strategic\nlayout covering overseas residential & commercial and industrial (C&I) energy\nstorage, as well as grid-side energy storage in China. The Company is\ncommitted to delivering high-reliability, cost-effective and intelligent\nenergy storage system solutions to global customers. Elong Power is chaired\nand led by Ms. Xiaodan Liu as Chief Executive Officer.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nSection 27A of the Securities Act of 1933, as amended, and Section 21E of the\nSecurities Exchange Act of 1934, as amended, and the Private Securities\nLitigation Reform Act of 1995. These statements can be identified by\nterminology such as “will,” “expects,” “anticipates,” “aims,”\n“future,” “intends,” “plans,” “believes,” “estimates,”\n“likely to” and similar expressions, and include statements regarding the\nCompany’s business strategy, its transition to an energy storage system\nintegration business, its global expansion, its use of financing proceeds and\nits future results of operations. Such statements involve risks and\nuncertainties, including, among others: the Company’s limited operating\nhistory in the energy storage business; its ability to achieve positive gross\nmargins and profitability from continuing operations; its need for additional\nfinancing and its ability to continue as a going concern; customer and\nsupplier concentration; competition; related-party transactions; maintaining\nits Nasdaq listing; PRC regulatory, economic and currency risks; and the other\nrisks described under “Item 3. Key Information—D. Risk Factors” in the\nCompany’s most recent Annual Report on Form 20-F and other SEC filings.\nActual results may differ materially. Except as required by law, the Company\nundertakes no obligation to update any forward-looking statement.\n\nInvestor & Media Contact\n\nElong Power Investor Relations\nEmail: ir@elongpower.com\n\nELONG POWER HOLDING LIMITED AND SUBSIDIARIES\nUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS\n(Amount in U.S. dollars, except for number of shares or otherwise noted)\n\n As of June 30 As of December 31 \n 2026 2025 \n (Unaudited) (Audited) \n ASSETS \n Current assets: \n Cash and cash equivalents 5,939,950 443,591 \n Short-term investments 2,940,490 7,165,232 \n Accounts receivable 220,295 889,533 \n Amounts due from related parties 138,091 71,499 \n Prepaid expenses and other current assets 8,874,078 2,066,487 \n Current assets held for sale associated with discontinued operation of ELPW - 1,240,751 \n Total current assets 18,112,904 11,877,093 \n Equity method investment 4,572,796 \n Property, plant and equipment, net 100,255 117,453 \n Right-of-use assets, net 59,074 71,751 \n Non-current assets held for sale associated with discontinued operation of ELPW - 15,674,938 \n Total non-current assets 4,732,125 15,864,142 \n Total assets 22,845,029 27,741,235 \n LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) \n Current liabilities: \n Short-term loans-third parties 1,937,582 7,498,469 \n Short-term loans-related parties 4,679,224 2,030,366 \n Accounts payable 46,234 875,063 \n Amounts due to related parties - 79,773 \n Contract liabilities 169,470 2,038,433 \n Accrued expenses and other current liabilities 842,508 1,812,778 \n Provision for product warranty, current 182,006 83,784 \n Lease liabilities, current 33,702 32,074 \n Current liabilities held for sale associated with discontinued operation of ELPW - 11,436,442 \n Total current liabilities 7,890,726 25,887,182 \n \n Provision for product warranty, non-current 15,120 638 \n Lease liabilities, non-current 20,193 41,644 \n Non-current liabilities held for sale associated with discontinued operation of ELPW - 24,555,631 \n Total non-current liabilities 35,313 24,597,913 \n Total liabilities 7,926,039 50,485,095 \n 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 \n 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 \n Treasury shares (80 ) (80 ) \n Additional paid-in capital 67,725,796 51,070,354 \n Statutory Reserve - 708,470 \n Accumulated deficit (53,271,564 ) (74,474,141 ) \n Accumulated other comprehensive (loss) income 379,980 (48,964 ) \n Total shareholders’ equity (deficit) 14,918,990 (22,743,860 ) \n Total liabilities and shareholders’ equity (deficit) 22,845,029 27,741,235 \n\n\n\n * 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. \n * Giving retroactive effect to the 1-for-45 reverse share split effected on August 10, 2026. \n\nELONG POWER HOLDING LIMITED AND SUBSIDIARIES\nUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE\nINCOME (LOSS)\n(Amount in U.S. dollars, except for number of shares or otherwise noted)\n\n For the six months ended June 30, \n 2026 2025 \n Unaudited Unaudited \n \n Revenues $ 2,899,110 $ 19,229 \n Cost of revenues (2,890,116 ) (17,306 ) \n GROSS PROFIT 8,994 1,923 \n \n OPERATING EXPENSES \n Selling expenses (505 ) (19,985 ) \n General and administrative expenses (1,809,901 ) (1,252,874 ) \n TOTAL OPERATING EXPENSES (1,810,406 ) (1,272,859 ) \n \n OPERATING LOSS (1,801,412 ) (1,270,936 ) \n \n OTHER (EXPENSE) INCOME \n Interest income 59,148 200 \n Interest expense (206,698 ) (22,899 ) \n Foreign currency exchange losses, net (255,926 ) (128,947 ) \n Share of profit from equity method investment 180 - \n Fair value losses on short-term investments (186,854 ) - \n Other income 281,267 - \n TOTAL NON OPERATING EXPENSE, NET (308,883 ) (151,646 ) \n \n LOSS BEFORE INCOME TAXES (2,110,295 ) (1,422,582 ) \n \n INCOME TAX EXPENSE - - \n \n NET LOSS FROM CONTINUING OPERATIONS (2,110,295 ) (1,422,582 ) \n \n DISCONTINUED OPERATIONS: \n Loss from discontinued operations (2,002 ) (1,232,895 ) \n Gain on disposal of subsidiaries 22,606,404 - \n NET INCOME(LOSS) FROM DISCONTINUED OPERATIONS 22,604,402 (1,232,895 ) \n \n NET INCOME (LOSS) $ 20,494,107 $ (2,655,477 ) \n \n Net income (loss) per share attributable to ordinary shareholders of the Company-Basic and Diluted * \n Continuing operations (42.36 ) (1,645.40 ) \n Discontinued operations 453.73 (1,426.00 ) \n Total basic and diluted $ 411.37 $ (3,071.40 ) \n WEIGHTED AVERAGE SHARES OUTSTANDING USED IN CALCULATING BASIC AND DILUTED LOSS PER SHARE \n Class A and Class B Ordinary Shares 49,819 865 \n\n\n\n * Giving retroactive effect to the 1-for-45 reverse share split effected on August 10, 2026. \n\nELONG POWER HOLDING LIMITED AND SUBSIDIARIES\nUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS\nFOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025\n(Amount in U.S. dollars, except for number of shares or otherwise noted)\n\n For the six months ended June 30, \n 2026 2025 \n \n Cash flows from operating activities \n Net income (loss) $ 20,494,107 $ (2,655,477 ) \n Provision for losses on accounts receivable - 23,132 \n Provision of obsolete inventory - 148,912 \n Depreciation and amortization expense 25,488 60,221 \n Interest on lease liabilities 1,323 3,678 \n Amortization of operating and finance right-of-use assets 14,883 820,287 \n Gain on disposals of property, plant and equipment - (66,138 ) \n Gain from debt forgiveness - (7,218 ) \n Provision (reversal) for warranty liability 108,876 (153,845 ) \n Fair value losses on short-term investments 186,854 - \n Share of profit from equity method investment (180 ) - \n Gain on disposal of subsidiaries (22,606,404 ) - \n Changes in operating assets and liabilities: \n Accounts receivable 682,962 (276,816 ) \n Inventories - (38,474 ) \n Amounts due from related parties (128,072 ) - \n Prepaid expenses and other current assets (7,349,365 ) (28,014 ) \n Long term accounts receivable - 99,183 \n Accounts and notes payable (795,842 ) 50,904 \n Amounts due to related parties - 140,972 \n Contract liabilities (1,791,605 ) 150,313 \n Accrued expenses and other current liabilities 4,106,253 156,703 \n Product warranty liability 53,791 (38,229 ) \n Lease liability (53,895 ) - \n Net cash used in operating activities (7,050,826 ) (1,609,906 ) \n \n Cash flows from investing activities \n Purchase of property, plant and equipment (5,128 ) (62,254 ) \n Proceeds from disposal of short term investments 2,045,400 - \n Placement of short-term investments (4,132,849 ) - \n Placement of equity method investment (4,572,616 ) - \n Disposal of subsidiaries, net of cash disposed (123,021 ) - \n Net cash used in investing activities (6,788,214 ) (62,254 ) \n \n Cash flows from financing activities \n Proceeds from borrowings from related parties 4,568,835 1,280,093 \n Repayment of borrowings to related parties (873,231 ) - \n Proceeds from borrowings from third parties 1,289,909 322,045 \n Repayments of borrowings to third parties (2,189,134 ) (31,269 ) \n Offering costs (1,702,120 ) - \n Proceeds from issuance of common stock 18,328,919 - \n Net cash provided by financing activities 19,423,178 1,570,869 \n \n Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash (216,732 ) (16,182 ) \n Net increase in cash, cash equivalents and restricted cash 5,367,406 (117,473 ) \n Cash and cash equivalents and restricted cash, beginning of period 572,544 318,001 \n Cash and cash equivalents and restricted cash, end of period $ 5,939,950 200,528 \n Supplemental disclosure of cash flow information: \n Issuance of Class B ordinary shares for Debt Settlement 48,600 - \n Issuance of Class B to a shareholder 64,400 - \n Short term investment Redemption Proceeds Applied to Offset Loans 6,289,040 - \n Lease liabilities arising from obtaining right-of-use assets - 311,871 \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/ee19363b-440f-4174-ae3c-7a940ea524a2)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-10-06T09:00:00.436060159Z","server_sent_at_ms":1791277200436},"received_at":"2026-10-06T09:00:00.736Z","source_url":null},"analysis":{"id":"149864","press_release_id":"161332","analysis_json":{"industry":{"label":"Electrical Equipment","sector":"Industrials"},"redFlags":["gross margin collapsed to 0.3% on the core business","continuing-operations loss widened to $2.11 million; profitability driven by one-time disposal gain","operating cash burn of $7.05 million vs. $5.94 million cash on hand","recent 1-for-45 reverse split signals listing-compliance risk","going-concern and related-party transaction risks disclosed","heavy reliance on related-party borrowings ($4.68M short-term loans from related parties)"],"eventType":"earnings","narrative":"Elong Power reported H1 2026 revenue of $2.90 million, up 14,977% from $19,229 a year earlier, as its new energy storage system integration business ramped from a near-zero base.\n\nProfitability is cosmetic: net income of $20.49 million came from a one-time $22.61 million gain on divesting the lithium battery manufacturing business, while the continuing-operations loss widened to $2.11 million and gross margin collapsed to 0.3%.\n\nThe company also completed ~$20 million in offerings and a 1-for-45 reverse split (effective August 10, 2026), and cash burn from operations was $7.05 million against $5.94 million of cash at period end.\n\nManagement says the asset-light pivot funds global energy storage expansion, but the disclosure flags going-concern, Nasdaq-listing, and related-party risks.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"H1 'profit' is a disposal-gain mirage -- core energy storage business running at 0.3% gross margin with widening losses."},"keyFigures":{"eps":411.37,"revenue":2899110,"guidance":"","revenueYoy":"14,977%","customDimensions":{"net_income":20494107,"gross_margin":"0.3%","gross_profit":8994,"disposal_gain":22606404,"reverse_split_ratio":"1-for-45","cash_and_equivalents":5939950,"offerings_gross_proceeds":20000000}},"quotedText":"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","namedEntities":{"people":[{"name":"Xiaodan Liu","role":"CEO and Chair"}],"products":["energy storage system integration equipment and supporting accessories"],"companies":[{"name":"Elong Power Holding Limited","ticker":"ELPW"}],"dollarAmounts":[{"amount":"US$2.90 million","context":"First Half 2026 net revenue"},{"amount":"US$19,229","context":"prior-year period revenue"},{"amount":"US$20.49 million","context":"First Half 2026 net income"},{"amount":"US$22.61 million","context":"one-time gain on disposal of lithium battery manufacturing business"},{"amount":"US$2.11 million","context":"net loss from continuing operations"},{"amount":"approximately US$20 million","context":"aggregate gross proceeds from offerings"},{"amount":"US$8,994","context":"gross profit"}]},"materialImpact":{"score":3,"reasoning":"First-half results show explosive revenue growth ($19,229 to $2.90M) but a collapse in gross margin to 0.3% and a widening continuing-operations loss; headline net income of $20.49M is entirely from a one-time $22.61M disposal gain. A strategic pivot plus ~$20M in offerings adds material context for a micro-cap."},"tickerRelevance":{"others":[],"primary":"ELPW"},"globalImportance":8,"audienceRelevance":15,"eventTypeSecondary":["restructuring"],"importanceComponents":{"tickerTier":"micro-cap","eventGravity":"earnings-with-strategic-pivot","qualityOfEarnings":"one-time-gain-driven","householdBrandBoost":0}},"event_type":"earnings","event_type_secondary":["restructuring"],"sentiment":"mixed","material_impact_score":3,"narrative":"Elong Power reported H1 2026 revenue of $2.90 million, up 14,977% from $19,229 a year earlier, as its new energy storage system integration business ramped from a near-zero base.\n\nProfitability is cosmetic: net income of $20.49 million came from a one-time $22.61 million gain on divesting the lithium battery manufacturing business, while the continuing-operations loss widened to $2.11 million and gross margin collapsed to 0.3%.\n\nThe company also completed ~$20 million in offerings and a 1-for-45 reverse split (effective August 10, 2026), and cash burn from operations was $7.05 million against $5.94 million of cash at period end.\n\nManagement says the asset-light pivot funds global energy storage expansion, but the disclosure flags going-concern, Nasdaq-listing, and related-party risks.","key_figures":{"eps":411.37,"revenue":2899110,"guidance":"","revenueYoy":"14,977%","customDimensions":{"net_income":20494107,"gross_margin":"0.3%","gross_profit":8994,"disposal_gain":22606404,"reverse_split_ratio":"1-for-45","cash_and_equivalents":5939950,"offerings_gross_proceeds":20000000}},"named_entities":{"people":[{"name":"Xiaodan Liu","role":"CEO and Chair"}],"products":["energy storage system integration equipment and supporting accessories"],"companies":[{"name":"Elong Power Holding Limited","ticker":"ELPW"}],"dollarAmounts":[{"amount":"US$2.90 million","context":"First Half 2026 net revenue"},{"amount":"US$19,229","context":"prior-year period revenue"},{"amount":"US$20.49 million","context":"First Half 2026 net income"},{"amount":"US$22.61 million","context":"one-time gain on disposal of lithium battery manufacturing business"},{"amount":"US$2.11 million","context":"net loss from continuing operations"},{"amount":"approximately US$20 million","context":"aggregate gross proceeds from offerings"},{"amount":"US$8,994","context":"gross profit"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-06T09:00:09.052Z","global_importance":8,"audience_relevance":15,"importance_components":{"tickerTier":"micro-cap","eventGravity":"earnings-with-strategic-pivot","qualityOfEarnings":"one-time-gain-driven","householdBrandBoost":0}},"durationMs":8296,"modelName":"glm-5.3-flashx"}}