Elong Power Delivers $0.84 Million First Batch After New Cooperation Agreement
Key Facts
Elong Power said its subsidiary, Elong Power (Hong Kong) Holding Limited, completed delivery of the first batch of goods, valued at approximately $0.84 million, shortly after signing a multi-channel cooperation agreement. The company said the agreement takes effect on the date of signing and renews automatically unless either party objects. The completed delivery puts the agreement to the test of whether the company can turn its new business model into tangible execution. Elong linked the step to its strategic shift to an asset-light model. It said the delivery “strengthens validation of the company’s ability to execute commercially” after the shift.
The agreement follows a fundamental change in the company’s business. In its first-half results filing, it said it completed the divestiture of its lithium battery manufacturing subsidiary in March 2026. It said its business had shifted to energy storage system integration, including sales of integration equipment and supporting accessories. In its annual report, it described its new model as relying on external manufacturing partners and design suppliers within a flexible global supply chain. It said its focus includes integrating energy storage solutions and targeting residential, commercial and industrial storage markets outside China, alongside grid storage within China. The new agreement is therefore part of the company’s efforts to expand its commercial activity after exiting manufacturing.
First-half 2026 results showed revenue of $2.90 million, compared with $19,229 in the same period of 2025. The company said the increase stemmed from higher sales of energy storage system integration equipment and accessories. But gross margin fell to 0.3% from 10.00% a year earlier, which the company attributed mainly to lower margins in its early-stage integration business. Loss from continuing operations was $2.11 million, compared with a loss of $1.42 million in the first half of 2025. By contrast, the company recorded net income of $20.49 million, after a net loss of $2.66 million in the year-earlier period. It said the first-half result included a one-time, non-operating gain of $22.61 million from the sale of its battery manufacturing business.
The company’s past record again highlights the importance of tracking contract execution and delivery schedules. In its annual report, Elong said a previous contract to supply energy storage equipment, signed in May 2024, was valued at about $67.6 million, including taxes. Delivery under that contract was expected to begin in 2025, but was delayed while the customer awaited government approvals. The company later said delivery was expected to begin in June 2026. In July 2025, the company announced a strategic cooperation with Indonesia’s Consumer Protection Agency to address challenges in access to electricity and support the development of Indonesia’s new energy sector. At the time, the company said the agreement did not constitute a binding commitment to purchase products or services.
For the new agreement, the company’s statement did not identify the other party or provide a schedule for subsequent deliveries. The announced first batch is therefore an indication that execution has begun, while tracking further progress will depend on details of subsequent shipments and continuation of the cooperation under the automatic renewal clause. ELPW shares closed at $2.44 on October 27, 2026, according to EL7 data. That was the trading day before the company’s announcement; the statement did not specify the agreement’s effect on the stock. First-half results provide the financial backdrop: revenue growth came with a low gross margin and a loss from continuing operations, while the divestiture gain supported net income.