Key Highlights

  • Shares are trading 17.64% lower at $2.47 on Thursday, October 29, 2026, against an implied prior close near $3.00 (calculated).
  • On Wednesday, October 28 the stock traded 25.41% higher at $3.06 once a $25.5 million one-year distribution agreement was announced.
  • The agreement's first delivery is worth about $0.84 million.
  • Half-year revenue of $2,899,110 produced gross profit of $8,994.
  • The float is roughly 805,500 shares, and market capitalisation is near $2.3 million.

Elong Power Gives Back Gains: What Is Behind the 17.64% Penny Stock Drop After Wednesday's Rally?

Elong Power Holding (NASDAQ:ELPW) shares are trading 17.64% lower at $2.47 on Thursday, October 29, 2026. The implied prior close is about $3.00 (calculated from the price and the move). No new company release came with the drop.

It follows the company's release of Wednesday, October 28, 2026, when shares traded 25.41% higher at $3.06. That release stated that the Hong Kong subsidiary had signed a one-year cooperation agreement worth $25.5 million to distribute smart consumer electronics, with a first delivery of about $0.84 million and automatic renewal unless a party objects.

Elong Power sold its lithium battery business in March 2026 and now reports distribution revenue.

Elong Power Agreement Size: How Does $25.5 Million Compare With $2.9 Million in Revenue?

Set beside half-year revenue of about $2.9 million, a $25.5 million agreement is sizeable, although only the first delivery of $0.84 million has been disclosed. The release gives no expected margins.

Six-month gross profit amounted to just $8,994 on revenue of $2,899,110, so the margin on the new contract will determine whether the headline value becomes earnings.

Elong Power Interim Results: What Lies Behind $20.5 Million of Net Income?

A release of Tuesday, October 6, 2026 covered the six months ended June 30. Revenue increased to $2,899,110 from $19,229, while the loss from continuing operations grew to $2,110,295 from $1,422,582.

Net income of $20,494,107 comes from a one-time gain of $22,606,404 on the March 2026 sale of the lithium battery business, not from operating performance. At June 30, 2026 cash was $5,939,950 and shareholders' equity was $14,918,990.

Elong Power Share Count: How Do Two Reverse Splits and New Offerings Bear on Dilution?

The company carried out reverse splits of 1-for-80 and 1-for-45 during 2026. It said the 1-for-45 split, effective Monday, August 10, 2026, was intended to keep it in compliance with Nasdaq Rule 5810(c)(3)(A)(iii).

Offerings were priced at about $6.6 million on Friday, July 10, 2026 and about $1.38 million on Monday, August 3, 2026. The float is put at about 805,500 shares and market capitalisation near $2.3 million, so the shares trade thinly and can swing sharply in either direction.

Frequent offerings and splits make further dilution and exchange compliance named risks, together with unproven deliveries after the first shipment and ongoing operating losses.

Next Checkpoints: Deliveries Under the $25.5 Million Agreement and the Next Financial Report

Further delivery announcements under the agreement, any new financing and the next financial report all bear watching. Until the company explains how its Hong Kong distribution business turns revenue into margin, the move from Wednesday's gain to Thursday's drop shows how fast sentiment can reverse in a stock of this size.