Hongli Group Provides Progress Update on Proposed Acquisition of a 20% Equity Interest in Xell Energy

The proposed investment remains unsigned and requires board approvals and regulatory clearances.

Rhea-AI Summary

Hongli Group (Nasdaq: HLP) is negotiating with existing Xell Energy stockholders to acquire a 20% equity interest in the battery company. The proposed share purchase follows a non-binding memorandum of understanding signed with Xell Energy in June 2026 to explore a potential manufacturing collaboration.

Hongli describes the investment discussions as part of its transition from cold roll-formed steel manufacturing into clean energy. Xell Energy, formerly Sidus Energy Storage, develops battery cells and integrated battery-pack solutions. If completed on the terms currently contemplated, the acquisition would make Hongli a 20% stockholder. No definitive agreement has been executed; the transaction remains subject to finalizing and signing an agreement, board approvals and regulatory clearances. Completion is not assured.

1 point · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Proposed acquisition of a 20% equity interest in Xell Energy would advance Hongli's stated clean-energy transition.

Negative

• Moderate pointProposed acquisition remains unsigned, with a definitive share purchase agreement still under negotiation.
• Minor pointCompletion remains subject to board approvals and regulatory clearances.

Key Figures

Proposed equity interest: 20%

Proposed equity interest

20%

Proposed acquisition of an aggregate interest in Xell Energy

Historical Context

1 past event · Latest: Oct 13

1 event

1. Oct 13

   Xell collaboration

   24h Move

   +6.8%

   Xell reported drone-customer battery-pack design wins, with energy density up to 420 Wh/kg.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

memorandum of understanding, share purchase agreement

2 terms

memorandum of understanding financial

"entered into a non-binding Memorandum of Understanding with Xell Energy"

A memorandum of understanding (MOU) is a formal agreement between two or more parties that outlines their shared intentions and plans to work together. It acts like a handshake in writing, clarifying each side’s roles and expectations before any official contract is signed. For investors, an MOU signals that parties are serious about collaboration, which can influence future business opportunities and potential growth.

share purchase agreement financial

"negotiating with existing stockholders of Xell Energy regarding a definitive share purchase agreement"

A share purchase agreement is a written contract that outlines the terms and conditions for buying and selling shares of a company. It specifies details like the price, number of shares, and any special conditions, ensuring both buyer and seller agree on the transaction. For investors, it provides clarity and legal protection, making sure the purchase is clear and enforceable.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WEIFANG, China, Oct. 30, 2026 /PRNewswire/ -- Hongli Group Inc. (the "Company") (Nasdaq: HLP), a cold roll-formed steel profile manufacturer advancing its strategic transition into high-growth clean energy sectors, today provided an update on its discussions regarding a proposed strategic investment in Xell Energy, Inc.( "Xell Energy"), formerly known as Sidus Energy Storage, Inc., an innovator in advanced battery manufacturing and energy storage solutions.

As previously announced, the Company entered into a non-binding Memorandum of Understanding with Xell Energy in June 2026 to explore a potential strategic manufacturing collaboration. Building on those discussions, the Company is negotiating with existing stockholders of Xell Energy regarding a definitive share purchase agreement for the proposed acquisition of an aggregate 20% equity interest in Xell Energy. If completed on the terms currently contemplated, the transaction would result in the Company becoming a 20% stockholder of Xell Energy.

While negotiations are progressing constructively toward the execution of definitive transaction documents, the proposed acquisition remains subject to the finalization and execution of a definitive agreement, customary closing conditions, board approvals, and regulatory clearances. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated on the terms currently contemplated, or at all.

About Hongli Group Inc.

Hongli Group Inc. is a Cayman Islands holding company, and through a series of contractual arrangements, consolidates the financial results of Shandong Hongli Special Section Tube Co., Ltd. and its subsidiaries (collectively, "Hongli Operating Group"). Hongli Operating Group is a cold roll-formed steel profile manufacturer with operating subsidiaries in China. Hongli Operating Group designs, customizes and manufactures cold roll-formed steel profiles for machinery and equipment in a variety of sectors, including but not limited to mining and excavation, construction, agriculture and transportation. The Hongli Operating Group, with over 25 years of operating history, has developed customers in more than 30 major cities in China as well as a global network including South Korea, Japan and the United States. Hongli Operating Group currently has 11 cold roll forming production lines and produces a variety of distinct profile products in a broad range of materials, sizes and shapes.

About Xell Energy, Inc.

Xell Energy, Inc. is a Silicon Valley-based battery technology company with advanced high-energy-density battery cells and integrated battery-pack solutions for drones, robotics, unmanned systems and other demanding applications. For more information, visit www.xellenergy.com.

Forward-Looking Statements

Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, performance, or underlying assumptions, and other statements that are not historical facts. When used in this press release, words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate," "continue," "seek," "endeavor," or similar expressions identify forward-looking statements, including statements regarding the commercialization, customer adoption, production, market opportunities, and future applications of Xell Energy's technology. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from expectations. These risks and uncertainties include, but are not limited to: the Company's ability to achieve its goals and strategies; future business development, financial condition, and results of operations; product and service demand and acceptance; reputation and brand strength; the impact of competition and pricing; technological changes; government regulations and import/export restrictions; fluctuations in general economic and business conditions; the Company's ability to maintain compliance with Nasdaq continued listing standards; and assumptions underlying any of the foregoing.

For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements in this press release. Additional factors and risks are detailed in Hongli Group's filings with the U.S. Securities and Exchange Commission ("SEC"), available for review at www.sec.gov. The Company undertakes no obligation to publicly update or revise these forward-looking statements to reflect events or circumstances arising after the date hereof.

For more information, please contact:

Hongli Group Inc.
Mr. Jie Liu
Email: zjf@hongli-profile.com
Tel: +86 0536-2180886

View original content:https://www.prnewswire.com/news-releases/hongli-group-provides-progress-update-on-proposed-acquisition-of-a-20-equity-interest-in-xell-energy-302924062.html

SOURCE Hongli Group Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much of Xell Energy does Hongli Group propose to acquire?

Hongli proposes to acquire an aggregate 20% equity interest in Xell Energy from existing stockholders. If completed on the terms currently contemplated, the transaction would make Hongli a 20% stockholder.

Has Hongli Group signed a definitive agreement to acquire the Xell Energy stake?

No definitive share purchase agreement has been executed. Hongli is negotiating with existing Xell Energy stockholders. The proposed acquisition remains subject to finalizing and executing an agreement, board approvals and regulatory clearances, and completion is not assured.