Elong Power Completes Divestment, Focuses on Energy Storage Integration

BEIJING, Oct. 06, 2026 /CourierPR/ -- Elong Power Holding Limited, a company that has pivoted to an asset-light energy storage system integration business, has announced its unaudited financial results for the first half of fiscal year 2026, ending June 30, 2026. The company completed the divestment of its lithium battery manufacturing business, marking a significant shift in its operational model. This move allowed Elong Power to focus on research and development and market development of energy storage products, while also securing substantial funding through public market offerings.

In March 2026, Elong Power completed the divestment of its lithium battery manufacturing subsidiary, adopting an asset-light operating model. This strategic transformation enabled the company to concentrate on energy storage system integration, retaining its core capabilities in research and development, sales, and full-lifecycle service. The disposal gains from this divestment provided a critical financial boost, supporting the company's transition to profitability.

Elong Power also completed public market financings during the first half of 2026, raising approximately US$20 million. These funds will be used to support the research and development of energy storage products and market promotion, facilitating the company's global expansion in the energy storage market. The company's management believes that this asset-light model will drive long-term, sustainable value creation.

Revenue for the first half of 2026 was derived almost entirely from the sales of energy storage system integration equipment and supporting accessories. While the business is still in its early stages, the company has seen significant growth in sales volume, driving revenue from US$19,229 to US$2.90 million. However, the business remains a thin-margin enterprise, with a gross margin that declined from 10.00% in the same period of the prior year to 0.3%. This resulted in a gross profit of only US$8,994, which was insufficient to cover selling, administrative, and other operating expenses. Consequently, the company reported a net loss of US$2.11 million from continuing operations.

The company focuses on lithium battery energy storage system core business, with strategic layout covering overseas residential and commercial and industrial (C&I) energy storage, as well as grid-side energy storage in China. Elong Power is chaired and led by Ms. Xiaodan Liu as Chief Executive Officer.

The press release includes 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 involve risks and uncertainties, including the company's limited operating history in the energy storage business, its ability to achieve positive gross margins and profitability, and its need for additional financing.