A 120 billion yuan "sky-high" order is suspected of containing misleading statements, prompting an investigation by the China Securities Regulatory Commission (CSRC). A leading company with a 26 billion yuan market capitalization has urgently responded, stating the amount was derived from estimates, the original announcement was not rigorously phrased, and there was no intention to hype the stock price.
According to an announcement on the CSRC official website this afternoon, on January 14, 2026, Ronbay Technology (688005) disclosed an announcement regarding a significant daily operating contract, which is suspected of containing misleading statements.
The CSRC stated that it has filed an investigation into Ronbay Technology. The next step will involve handling the matter according to law based on a comprehensive investigation to effectively maintain the healthy and stable development of the market. Ronbay Technology subsequently announced that it had received a "Notice of Case Filing" from the CSRC. Due to suspicions of misleading statements in the company's major contract announcement, the CSRC decided to initiate an investigation into the company.
The company stated that all current operating activities and business are proceeding normally. During the investigation period, the company will actively cooperate with the CSRC's related work and strictly fulfill its information disclosure obligations in a timely manner according to relevant laws, regulations, and regulatory requirements. Reviewing the previous announcement, on January 13, Ronbay Technology announced that it had signed a "Lithium Iron Phosphate Cathode Material Procurement Cooperation Agreement" with CATL. Starting from the first quarter of this year until 2031, it will supply CATL's domestic operations with 3.05 million tons of lithium iron phosphate cathode materials, with total sales exceeding 120 billion yuan. The enormous size of this order and the massive quantity demanded are quite rare within the lithium battery industry.
According to prior reports, the 120 billion yuan figure is equivalent to 8 times Ronbay Technology's 2024 revenue. On January 14, regarding the contract's progress, an inquiry was made to Ronbay Technology's public contact number. A staff member who answered the call stated that both parties had already completed the stamping process, confirming it is a genuine order contract. Regarding the "120 billion yuan sales amount," the staff member indicated that the contract does not specify a fixed amount but contains a pricing formula, explaining that "(120 billion yuan) is a conservatively estimated figure." On the evening of January 13, the Shanghai Stock Exchange rapidly issued an inquiry letter, demanding the company conduct a self-examination and provide supplementary disclosures regarding the accuracy of information disclosure, the agreement's content, and the prevention of insider trading. The exchange also required Ronbay Technology to explicitly state whether there was any motive to use the large contract for stock price speculation. In the inquiry letter, the SSE indicated that it would subsequently initiate disciplinary procedures based on Ronbay's response.
Following this, Ronbay Technology issued announcements for two consecutive trading days stating it would delay its response to the SSE's inquiry letter. The company's stock was suspended from trading on January 14, 15, and 16 due to important matters not yet announced. This afternoon, Ronbay Technology released an announcement in response to the SSE's inquiry. The announcement stated that the previously disclosed cooperation agreement with CATL did not stipulate a procurement amount. The "total contract value of 120 billion yuan" was an estimate calculated by the company, and the final actual sales scale will depend on the raw material prices and quantities specified in actual purchase orders, meaning the sales amount is uncertain. The original announcement's phrasing regarding the total contract value was not rigorous.
Considering the company's planned and under-construction production capacity, fund matching, and other factors, the company possesses the comprehensive capability to fulfill the relevant agreement. To match the anticipated customer orders, the company plans to use 342 million yuan of its own funds to acquire a partial equity stake in Guizhou Xinren and use an additional 140 million yuan of its own funds to increase its capital investment in Guizhou Xinren. Currently, the company has completed payment for part of the equity transfer and is in the process of completing the industrial and commercial registration changes. Guizhou Xinren currently possesses an annual production line capacity of 60,000 tons of lithium iron phosphate. In the future, the company will continue to expand its production scale through investment mergers, acquisitions, and self-built capacity to meet actual customer order demand. It is estimated that capital expenditure required to fulfill this contract over the next three years will be approximately 8.7 billion yuan. The company plans to meet the funding needs for project construction and operation through methods including bank loans, its own funds, and other sources. "In summary, although the investment amount for this project is substantial, the company has sufficient capital reserves and good financing capabilities. It is expected that this will not have a significant adverse impact on the company's liquidity and financial condition. The company has the ability to provide solid financial guarantees for the fulfillment of this contract."
Furthermore, regarding whether the company had any motive to use the large contract for stock price speculation, the company responded: The original announcement did not provide sufficient risk warnings potentially arising after the signing of this agreement, and some terminology was not standardized. However, there was no motive to use the large contract for stock price speculation. The company will further enhance the rigor of its information disclosure in the future.
Public information shows that Ronbay Technology is a leader in ternary cathode materials, primarily engaged in the R&D, production, and sales of ternary materials, lithium iron phosphate materials, lithium iron manganese phosphate materials, sodium battery materials, and multi-element precursors. Its products are mainly used in the manufacturing of lithium/sodium batteries. Ronbay Technology announced its formal entry into the lithium iron phosphate field in the first half of 2025. Ronbay Technology is currently under performance pressure. The company's 2025 performance forecast indicates an estimated net profit attributable to shareholders of between -190 million yuan and -150 million yuan, and an estimated扣非 net profit attributable to shareholders of between -220 million yuan and -180 million yuan. This is noted to be Ronbay Technology's first annual loss since its listing. Before the trading halt on January 14, Ronbay Technology's stock price showed strong performance against the market trend. As of the close on January 13, the stock rose 1.66% to 37.35 yuan, with a total market capitalization of 26.7 billion yuan.
(This article does not constitute investment advice. Operate at your own risk based on this information.)
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