Elong Power Holding Ltd. (ELPW): Financial results for H1 2026
Elong Power Holding Ltd. (ELPW) furnished an SEC Form 6-K — earnings release. Exhibit 99.3 Elong Power Holding Limited Announces First Half 2026 Financial Results BEIJING, October 6, 2026 / Globe Newswire / - Elong Power Holding Limited (Elong Power, NASDAQ: ELPW, together with its subsidiaries and consolidated entities, the “Company”) today announced its
How this was made
The 30-second read
Why it matters
The earnings release provides the first public numbers for the period, showing a dramatic revenue jump but a loss in core operations, suggesting near‑term volatility.
Market read
Primary earnings disclosure for a micro‑cap; may trigger short‑term price movement but limited broader market impact.
What to watch
The one‑time disposal gain masks underlying operating weakness; cash balance remains modest at ~$6 M.
Elong Power reports US$20.49 million net income on US$22.61 million disposal gain while continuing operations post US$2.11 million loss.
Revenue rose from US$19,229 to US$2.90 million following the pivot to energy storage system integration, but gross margin declined to 0.3% and continuing-operations loss widened to US$2.11 million. Reported net income of US$20.49 million was driven by a US$22.61 million gain on disposal of subsidiaries.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| H1 2026 revenueother | $ 2,899,110 | – | 14,977% |
| H1 2026 cost of revenuesother | (2,890,116 ) | – | – |
| H1 2026 gross profitother | 8,994 | – | 368% |
| H1 2026 gross marginother | 0.3% | – | – |
| H1 2026 selling expensesother | (505 ) | – | – |
| H1 2026 general and administrative expensesother | (1,809,901 ) | – | – |
| H1 2026 total operating expensesother | (1,810,406 ) | – | – |
| H1 2026 operating lossother | (1,801,412 ) | – | – |
| H1 2026 interest incomeother | 59,148 | – | – |
| H1 2026 interest expenseother | (206,698 ) | – | – |
| H1 2026 foreign currency exchange losses, netother | (255,926 ) | – | – |
| H1 2026 share of profit from equity method investmentother | 180 | – | – |
| H1 2026 fair value losses on short-term investmentsother | (186,854 ) | – | – |
| H1 2026 other incomeother | 281,267 | – | – |
| H1 2026 total non operating expense, netother | (308,883 ) | – | – |
| H1 2026 loss before income taxesother | (2,110,295 ) | – | – |
| H1 2026 income tax expenseother | - | – | – |
| H1 2026 net loss from continuing operationsother | (2,110,295 ) | – | – |
| H1 2026 loss from discontinued operationsother | (2,002 ) | – | – |
| H1 2026 gain on disposal of subsidiariesother | 22,606,404 | – | – |
| H1 2026 net income (loss) from discontinued operationsother | 22,604,402 | – | – |
| H1 2026 net income (loss)other | $ 20,494,107 | – | – |
| H1 2026 basic and diluted loss per share from continuing operationsother | (42.36 ) | – | – |
| H1 2026 basic and diluted earnings (loss) per share from discontinued operationsother | 453.73 | – | – |
| H1 2026 total basic and diluted earnings (loss) per shareother | $ 411.37 | – | – |
| H1 2026 weighted average Class A and Class B Ordinary Shares outstanding used in calculating basic and diluted loss per shareother | 49,819 | – | – |
| H1 2026 net cash used in operating activitiesother | (7,050,826 ) | – | – |
| H1 2026 net cash used in investing activitiesother | (6,788,214 ) | – | – |
| H1 2026 net cash provided by financing activitiesother | 19,423,178 | – | – |
| H1 2026 net increase in cash, cash equivalents and restricted cashother | 5,367,406 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Energy storage system integration equipment and supporting accessoriesThe Company stated that net revenues in the current period were derived almost entirely from this business, with sales volume increasing as it expanded its customer base and secured orders for energy storage products. | $2.9M | – | 14,977% |
What drove it
- The Company completed the divestment of its lithium battery manufacturing subsidiary in March 2026 and pivoted to an asset-light energy storage system integration business.
- Revenue growth was primarily attributed to the ramp-up in sales of energy storage system integration equipment and supporting accessories.
- The Company recognized a gain on disposal of subsidiaries of 22,606,404, which management identified as the primary support for the turnaround to reported profitability.
- The Company completed offerings with aggregate gross proceeds of approximately US$20 million during the first half of 2026.
Concerns
- Gross margin declined from 10.00% to 0.3% because the energy storage system integration equipment and supporting accessories business was described as thin-margin and in an early stage.
- Gross profit of US$8,994 was insufficient to cover selling, administrative and other operating expenses, resulting in a US$2.11 million net loss from continuing operations.
- Net cash used in operating activities increased to (7,050,826 ) from (1,609,906 ).
- The filing identifies risks including limited operating history in energy storage, ability to achieve positive gross margins and profitability from continuing operations, need for additional financing and ability to continue as a going concern, customer and supplier concentration, competition, related-party transactions and maintaining its Nasdaq listing.
What to watch
- Whether energy storage system integration equipment and supporting accessories sales can sustain growth after the US$19,229 prior-year revenue base.
- Gross-margin progression from the reported 0.3% as the asset-light energy storage business develops.
- The continuing-operations loss, reported at (2,110,295 ), and operating cash usage of (7,050,826 ).
- Use of the approximately US$20 million financing for energy storage product research and development and market promotion.
- The Company's expansion of its customer base and efforts to secure energy storage product orders.
Balance sheet and cash flow
- Cash and cash equivalents were 5,939,950 as of June 30, 2026, compared with 443,591 as of December 31, 2025.
- Short-term investments were 2,940,490 as of June 30, 2026, compared with 7,165,232 as of December 31, 2025.
- Total assets were 22,845,029 as of June 30, 2026, compared with 27,741,235 as of December 31, 2025.
- Short-term loans-third parties were 1,937,582 as of June 30, 2026, compared with 7,498,469 as of December 31, 2025.
- Short-term loans-related parties were 4,679,224 as of June 30, 2026, compared with 2,030,366 as of December 31, 2025.
- Total liabilities were 7,926,039 as of June 30, 2026, compared with 50,485,095 as of December 31, 2025.
- Total shareholders’ equity (deficit) was 14,918,990 as of June 30, 2026, compared with (22,743,860 ) as of December 31, 2025.
- Proceeds from issuance of common stock were 18,328,919 for the six months ended June 30, 2026.
- Offering costs were (1,702,120 ) for the six months ended June 30, 2026.
- Cash and cash equivalents and restricted cash, end of period were $ 5,939,950 for the six months ended June 30, 2026, compared with 200,528 for the six months ended June 30, 2025.
Analysis
Elong Power completed a major business transition in the first half of 2026, divesting its lithium battery manufacturing subsidiary in March and concentrating on an asset-light energy storage system integration model. Net revenue increased from US$19,229 to US$2.90 million, with the Company attributing the growth to a significant ramp-up in energy storage system integration equipment and supporting accessories sales. Management said current-period revenue was derived almost entirely from that business.
The revenue ramp did not yet produce operating profitability. Gross profit was US$8,994, while gross margin declined from 10.00% to 0.3%. The Company attributed the margin outcome to the thin-margin characteristics of the early-stage integration equipment and accessories business. Total operating expenses were (1,810,406 ), producing an operating loss of (1,801,412 ) and a net loss from continuing operations of (2,110,295 ), compared with (1,422,582 ) in the prior-year period.
Reported net income of $ 20,494,107 reflected discontinued operations rather than profitability of the remaining business. The Company recorded a gain on disposal of subsidiaries of 22,606,404 and net income from discontinued operations of 22,604,402. Total basic and diluted earnings per share were $ 411.37, compared with $ (3,071.40 ), with the filing stating that per-share amounts give retroactive effect to the 1-for-45 reverse share split effected August 10, 2026.
Liquidity increased following financing activity, but cash usage remained significant. Cash and cash equivalents were 5,939,950 at June 30, 2026, compared with 443,591 at December 31, 2025. Proceeds from issuance of common stock were 18,328,919, and net cash provided by financing activities was 19,423,178. Net cash used in operating activities was (7,050,826 ) and net cash used in investing activities was (6,788,214 ), including placement of an equity method investment of (4,572,616 ).
The release provided no forward financial guidance. The stated near-term operating focus is energy storage product research and development, market promotion, customer-base expansion and order acquisition. The reported indicators requiring attention are whether revenue growth can continue, whether gross margin can improve from 0.3%, and whether the continuing-operations loss and operating cash use can be reduced.
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Prior-outlook guidance was not provided.
- Non-GAAP or adjusted financial metrics were not provided.
- Free cash flow was not provided.
- Share repurchases and dividend declarations or payments were not provided.
- A formal segment revenue table was not provided.
- The accounting framework was not specified in the provided filing text.
- Named executive quotes were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Elong Power Holding Ltd., a Cayman‑incorporated, Nasdaq‑listed energy‑storage integrator, disclosed its unaudited H1 2026 results via a Form 6‑K filing.
Ticker impact
Elong Power Holding Ltd. filed its H1 2026 earnings on Form 6‑K, reporting a $2.9 M revenue increase and a $20.5 M net income driven by a one‑time disposal gain.
likely downside pressure as investors price in thin‑margin operating losses and reliance on one‑time gains.
Primary earnings disclosure with modest scale; future profitability uncertain, prompting cautious market reaction.
Market effects
Highlights challenges for small‑cap energy‑storage integrators transitioning from battery manufacturing.
Limited to niche U.S. and Asian energy‑storage markets; no broad regional effect.
Minimal; the company is micro‑cap and its results are unlikely to move global indices.
Counterpoint
If the $20 M financing is fully deployed, the company could achieve scale quickly, turning the thin‑margin loss into sustainable profit.
Key entities
- companyElong Power Holding Ltd.
Nasdaq‑listed energy‑storage system integrator.