NEW YORK, N.Y. - eLong Power Holding Limited, a developer of high-power battery technologies, has secured an RMB 80 million (approximately $11 million) contract to supply an energy storage system for intelligent charging robots in Beijing, China. This system is slated for completion by the end of 2024 and marks the company's second substantial order in Q2 2024, following a RMB 480 million (approximately $66 million) deal for a project in Shandong province, China.
The company, which has over a decade of experience in lithium-ion battery technology, entered the energy storage market in 2023 and is working towards becoming a leader in the industrialization of large-scale energy storage systems. eLong Power's energy storage solutions are noted for their safety, capacity, longevity, charging speed, and adaptability.
In parallel, eLong Power is progressing towards a business combination with TMT Acquisition Corp (NASDAQ: TMTCU), a special purpose acquisition company (SPAC). The merger, approved by both companies' boards, is anticipated to finalize in the second half of 2024, allowing eLong Power to become publicly traded and accelerate its business growth.
eLong Power's CEO, Ms. Xiaodan Liu, expressed confidence in the company's development and the market's growing trust in their products. DJ Guo, Chairman and CEO of TMTC, echoed this sentiment, highlighting the strategic alignment and growth potential reinforced by the recent orders.
The proposed business combination is subject to approval by TMTC shareholders and other customary closing conditions. eLong Power has filed a registration statement on Form F-4 with the SEC, which includes a preliminary proxy statement of TMTC and a preliminary prospectus of eLong Power.
eLong Power specializes in the R&D, manufacturing, sales, and service of lithium-ion batteries for electric vehicles, construction machinery, and energy storage systems. Its product range is designed to meet the demands of high-power and energy storage applications across various scenarios.
This news article is based on a press release statement.
No assurances can be given that the anticipated business combination will be completed as planned, or at all, or that the energy storage system delivery will be finalized within the expected timeframe. Investors are urged to read the proxy statement/prospectus and other relevant documents filed with the SEC as they contain important information about the proposed business combination.
InvestingPro Insights
eLong Power Holding Limited's recent contract wins underscore the company's growth trajectory in the energy storage space. As eLong Power positions itself to capitalize on the burgeoning demand for high-power battery technologies, potential investors and market watchers are closely monitoring its financial metrics and stock behavior. According to InvestingPro, eLong Power's merger partner, TMT Acquisition Corp (TMTC), is trading near its 52-week high, indicating a robust market confidence which aligns with the optimism expressed by eLong Power's CEO and TMTC's Chairman.
InvestingPro data reveals that TMTC's market capitalization stands at $89.38 million, with a forward-looking P/E ratio for the last twelve months as of Q1 2024 at 42.2. This suggests that investors are willing to pay a premium for the company's earnings, reflecting expectations of future growth. Furthermore, TMTC has shown profitability over the last twelve months, which is a positive sign for eLong Power as it moves closer to the merger completion.
However, there are areas where caution is advised. InvestingPro Tips indicate that TMTC is trading at a high earnings multiple, which could suggest the stock is overvalued compared to its earnings. Additionally, TMTC does not pay a dividend, which might be a consideration for income-focused investors. These insights are part of the comprehensive analysis available on InvestingPro, which features several additional tips for a deeper understanding of TMTC's financial health and stock performance.
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