An "Estimate" contract results in a 9.5 million fine! Rongbai Technology's 120 billion yuan order is penalized.

●|Business News

Recently, Rongbai Technology was fined 9.5 million yuan by the CSRC for making misleading statements in its disclosure of a lithium iron phosphate cathode materials procurement cooperation agreement with CATL, which is valued at up to 120 billion yuan, becoming one of the highest-amount cases of information disclosure violations punished in the recent A-share market.

The regulatory investigation found four issues with the announcement: first, the agreement does not specify a total sales amount, and “120 billion yuan” is a figure estimated by the company itself; second, the actual procurement volume is only set to be no less than 70% of the forecast value; third, the supply cutoff date is earlier than the contract’s effective period; fourth, performance-related conditions precedent were not disclosed.

Rongbai Technology’s revenue in the first half of 2025 was only 6.2 billion yuan, while the order amount stated in the announcement was equivalent to the company’s total revenue over 10 years. As a leading company in ternary cathode materials, there is a huge gap between Rongbai Technology’s lithium iron phosphate production capacity and the 3.05 million tons of supply expected under the agreement. After regulatory inquiries, the company admitted that the figure was “worked out based on an estimate,” while CATL said it was “best to ask Rongbai Technology.”

Rongbai Technology is facing challenges in business transformation. With the market share of lithium iron phosphate batteries already reaching 81%, the company that focuses on high-nickel ternary cathode materials is expected to incur losses in 2025, and this penalty comes at a key time when it is rolling out new products such as lithium iron phosphate manganese, sodium batteries, and others.

With the penalty taking effect, eligible investors can already initiate the claims process. This incident highlights that, amid the rapid development of the new energy industry, the importance of information disclosure compliance and market trust is becoming increasingly prominent.

Disclaimer: The content of this article is for reference only. The information and views contained herein do not constitute any investment advice. Readers are kindly requested to make prudent decisions.