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

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: [email protected]
Tel: +86 0536-2180886

SOURCE Hongli Group Inc.