China's securities regulator is probing Ningbo Ronbay New Energy Technology over alleged misleading statements regarding a major contract announcement, according to a Shanghai Stock Exchange filing by the company on Sunday.
The Chinese battery materials maker said its operations remain normal and it will cooperate fully with the regulatory probe while complying with disclosure requirements, according to the filing.
The probe comes after Ningbo Ronbay on Tuesday announced a 120 billion yuan (HK$134.44 billion) battery materials supply deal with battery giant Contemporary Amperex Technology (3750).
This marks the largest order ever recorded in the lithium and battery sectors and has attracted significant market attention.
Subsequently, the Shanghai Stock Exchange asked Ronbay to clarify the annual production capacity obligations stipulated in the agreement and to verify its ability to meet those commitments.
Ronbay replied on Thursday that the order amount was an estimated value and was subject to uncertainty.
The company said it plans to invest approximately 8.7 billion yuan in capital expenditure over the next three years to fulfil the contract requirements.
Ronbay has sufficient cash reserves and financing capabilities to ensure the contract's execution without significantly impacting its liquidity position, it said.
Following the inquiry, Ronbay's shares were suspended from trading starting on Wednesday.
Reuters and staff reporter
