DCX — H1 2026 Financial Report Analysis

A token treasury in an ex-carmaker's shell: $65.8 million "profit", but only because the old business was handed away

Digital Currency X Technology (formerly Chijet Motor, a Chinese electric-vehicle maker) reported its first half of 2026 as a company that has stopped making cars and now mostly holds one crypto token. It had no revenue. Its reported net income of $65.8 million came entirely from accounting for the sale of the old car business, which it sold for $1. Without that, the company lost $189.0 million because its token holdings fell in value. Results come from the unaudited financial statements (Exhibit 99.1) and management's review (Exhibit 99.2) in a Form 6-K furnished on September 18, 2026. As a foreign private issuer, the company reports half-years rather than quarters.

At a glance

• $215.0 million in EDGEAI tokens, 99% of total assets. A single, thinly traded crypto token makes up nearly all of what the company owns, and that token lost 46.5% of its book value in six months.
• $1.3 million in cash against $2.6 million of cash burned by the ongoing business in the half. To keep paying its bills the company will have to turn tokens into cash, and the token's market is shallow.
• Class A shares outstanding went from 19.6 million to 351.6 million (about 18 times as many), and there are another 996 million warrants (rights to buy shares) priced near $2.11–$3. The $3.33 earnings per share is calculated on the old, much smaller share count and won't carry forward.

Results

n/m = not meaningful. Prior-year per-share figures are restated for three share consolidations (1-for-30 in 2024, 1-for-100 in November 2025, 1-for-12 in January 2026), which is why last year's per-share loss looks so extreme. The balance-sheet rows compare with December 31, 2025, not June 2025.

What actually happened

The car business was sold for $1, and that produced the profit. On March 18, 2026 the company agreed to sell Chijet Inc. and all its subsidiaries (the EV manufacturing group) to an unrelated buyer for $1, closing March 20. Just before the sale, that group had about $465.6 million of assets and $723.5 million of liabilities: on the books it was worth minus $257.9 million. When a company gives away a unit whose debts exceed its assets, those net liabilities leave its balance sheet, and accounting records that as a gain. Here the gain was $258.8 million. The filing says the gain "arose principally from the derecognition of the Disposed Group's net liabilities... rather than from the cash consideration received." No cash came in. The company got rid of an obligation it was carrying on paper. Before the sale, the EV group lost another $5.6 million in 2026 (it earned $432 thousand of revenue from January 1 to March 20).

The new business is one token. The company holds 157,453,325 EDGEAI tokens, the native token of the EDGEAI network, and held the same number at December 31. Their recorded value dropped from $402.0 million to $215.0 million. That $187.0 million fall goes straight into the income statement, because under current US accounting rules (ASC 350-60) crypto assets are marked to market every reporting period. The tokens cost $318.6 million, so they are now carried $103.6 million (about 33%) below cost. A one-year staking agreement (locking the tokens up in exchange for 3.5%–8% annual rewards) was signed in January and ended by mutual agreement on May 18. It produced no rewards.

The operating side costs about $2 million per half-year and earns nothing. Selling, general and administrative expense was $2.0 million, roughly flat. Lower advisory fees after the EV divestiture were partly offset by $0.33 million of costs at NexFi, a new subsidiary set up in October 2025. NexFi runs DexTrader, an information service that aggregates on-chain and decentralized-exchange data. Management says it "has not yet generated any revenues" and is focused on user acquisition.

The $700 million placement, paid in more of the same token

On June 24, 2026 the company agreed to a private placement of 331,753,557 units at $2.11, each made up of one Class A share and three warrants exercisable at $2.11 for three years. The shares were issued by June 30. Investors paid on July 3, 2026, not in cash but in 491,849,359 EDGEAI tokens with a stated gross value of $700 million (about $1.42 per token). At June 30 the unpaid amount sits in equity as a $700 million "share subscription receivable", which is why the balance sheet doesn't show it yet.

This has three effects:

• Concentration gets worse. After settlement the company holds about 649 million EDGEAI, roughly four times its June 30 position, and it still owns no other crypto asset.
• The share count is now about 18 times larger. The 331.8 million new shares were issued on June 30, so they barely affect the half-year's weighted average share count (19.8 million). That is why EPS is $3.33. Any per-share figure from the second half onward will be divided by at least 351.6 million shares.
• About 996 million warrants are outstanding, almost all exercisable at $2.11. If the share price rises above that, exercising them could nearly quadruple the share count again.

What the headline numbers hide

• The profit is an accounting gain with no cash behind it. Of the $65.8 million net income attributable to shareholders, $258.8 million is the paper gain from shedding the EV group's net liabilities. The ongoing company lost $189.0 million. Nothing in this half suggests the business earns money.
• The token's value is an estimate built on a thin market. EDGEAI's price comes from the median closing price on PancakeSwap v3, a decentralized exchange. The filing says the token "had limited trading activity and market depth" and was not trading on any other significant market. Management therefore applied a 20% discount for lack of marketability to the quoted price, and the valuation is classed as Level 3, the least observable tier of fair-value inputs. The company also warns that it "may not be able to dispose of a significant portion of its holdings within a short period at quoted market prices." With 649 million tokens after July, that risk is much larger.
• Cash conversion: the cash pile is small. Continuing operations used $2.6 million of cash in the half, more than the $2.0 million of expenses. Cash fell to $1.3 million. Management still concluded that no going-concern doubt is warranted. Its reasoning rests on a low cost base, no material debt, and the July token receipt, which it says could be turned into cash through exchange sales, over-the-counter transfers, fee settlements or swaps. The filing adds that realizing cash "is subject to limited market liquidity, counterparty availability and regulatory uncertainties."
• The balance sheet is now very simple. Total liabilities are $16 thousand, down from $709.2 million at year-end, all of which left with the EV group. Shareholders' equity is $216.8 million, and almost all of it is the token holding.

Outlook

Management gives no revenue or earnings guidance. The filing does say that from June 30 to its September 17 issue date, EDGEAI's market price rose about 15%. Applied to the July holdings, that would show up as a gain in the second half if it lasts, and as a loss of similar size if it reverses. Second-half results will mostly follow one token's price. DexTrader is the only operating business, and it has no revenue yet.

What to watch in the FY2026 annual report (Form 20-F): whether any EDGEAI is actually sold and at what discount to the marked price, whether DexTrader reports its first revenue, how many of the ~996 million warrants are exercised, and whether cash stays above roughly one half-year of operating burn.

Takeaway: The $65.8 million profit comes from handing away a car business whose debts exceeded its assets, not from operating income. What remains is about $1 million of cash, a business with no revenue, and a balance sheet that is almost entirely one thinly traded token. That token fell 46.5% in six months, and the July placement roughly quadrupled the holding. Each share's value now depends almost entirely on EDGEAI's price and on whether the company can sell tokens near that price, spread across about 18 times as many shares, with nearly a billion warrants on top.