Elong Power Holding Limited (NASDAQ:ELPW) has announced that its subsidiary, Elong Power (Hong Kong) Holding Limited, has entered into a one-year cooperation agreement valued at $25.5 million, as the company expands its international distribution activities following a shift towards an asset-light business model.
The agreement covers the distribution of smart consumer electronic products through multiple sales channels, with an emphasis on developing a business-to-business network serving enterprise customers.
Elong Power confirmed that its Hong Kong subsidiary has already completed delivery of an initial shipment valued at approximately $840,000 following the signing of the agreement.
The contract takes effect from the signing date and includes an automatic renewal provision unless either party objects.
Agreement Supports Expansion of International Distribution Network
Under the arrangement, Elong Hong Kong will distribute smart consumer electronics while developing commercial relationships with enterprise customers across different markets.
The company intends to establish a business-to-business distribution network and expand the range of commercial applications served through its Hong Kong operations.
The agreement represents a further step in Elong Power’s efforts to develop its smart hardware distribution activities alongside its existing energy storage business.
Hong Kong will serve as a base for the company’s international trading operations, providing access to cross-border financial services, logistics infrastructure and commercial networks.
Elong Power said the arrangement is intended to strengthen its supply chain management capabilities and support the expansion of its overseas distribution activities.
The company did not disclose the identity of its commercial counterparty or provide a breakdown of the agreement’s expected revenue recognition.
Initial $840,000 Shipment Completed
Elong Power reported that its subsidiary completed delivery of the first batch of products shortly after the cooperation agreement was signed.
The shipment was valued at approximately $840,000, representing an initial transaction under the broader $25.5 million arrangement.
The company described the delivery as evidence of its ability to execute commercial orders following the restructuring of its operations.
Further shipment schedules, payment terms and the expected timing of additional deliveries were not disclosed.
The agreement’s automatic renewal provision provides for the possibility of continued cooperation beyond the initial one-year term, subject to the contractual conditions.
Elong Power Advances Asset-Light Business Strategy
The distribution agreement follows Elong Power’s completion of an asset-light strategic transformation during the first half of 2026.
The company has shifted its operating approach towards research and development, intelligent energy storage technologies and international commercial deployment.
Management said the revised business structure and its available cash resources provide a foundation for expanding distribution activities.
“With the asset-light strategic transformation completed in the first half of 2026 and our robust cash reserves, we possess strong risk resilience and a solid foundation for business expansion,” management stated.
The company added that the new partnership would help establish a distribution channel for overseas enterprise customers while strengthening its cross-border supply chain operations.
Elong Power intends to combine its trading activities with its existing energy storage operations as it develops additional commercial relationships.
Company Targets Asia-Pacific Energy Storage Markets
Elong Power’s core business focuses on lithium battery energy storage systems, including portable, residential, commercial and industrial, and utility-scale applications.
The company plans to use its expanded international distribution capabilities to support the introduction of energy storage products and solutions into additional markets.
Management identified the Asia-Pacific region as an area of focus for future commercial expansion.
The company also intends to develop relationships with suppliers and distribution partners across its industrial supply chain.
Its longer-term strategy combines energy storage technology development, artificial intelligence applications and international distribution through an asset-light operating structure.
Elong Power Outlook
The $25.5 million annual cooperation agreement represents a new commercial arrangement for Elong Power’s Hong Kong subsidiary and supports the company’s efforts to expand its international distribution business.
The completion of the initial $840,000 shipment marks the first reported delivery under the agreement.
The company plans to develop its enterprise distribution network while continuing to focus on lithium battery energy storage products and commercial opportunities in the Asia-Pacific region.
Although the agreement has a stated annual value of $25.5 million, Elong Power has not provided details of its expected profit contribution, payment schedule or the timing of revenue recognition.
The financial impact will depend on the execution of further deliveries and the commercial terms of the arrangement.