China’s securities regulator is probing Ningbo Ronbay New Energy Technology over alleged misleading statements regarding a major contract announcement, a company filing to the Shanghai Stock Exchange showed.
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 Ronbay on Tuesday announced a battery materials supply deal worth more than 120 billion yuan ($17.2 billion) with Contemporary Amperex Technology (CATL).
In a separate filing on Sunday, Ronbay said in response to queries from the Shanghai Stock Exchange that the 120 billion yuan figure was the company’s own estimate.
The sale value remains uncertain as the final volume will depend on raw material prices and quantities when actual orders are placed, it said.
Ronbay said it plans to invest approximately 8.7 billion yuan in capital expenditure over the next three years to fulfil the contract requirements.
The company has sufficient cash reserves and financing capabilities to ensure the contract’s execution without significantly impacting its liquidity position, it said.
Reuters
