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 RelationsEmail: ir@elongpower.com

ELONG POWER HOLDING LIMITED AND SUBSIDIARIESUNAUDITED 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 SUBSIDIARIESUNAUDITED 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 SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFOR 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