Logo of Ningbo Ronbay New Energy Technology Co Photo: VCG

Chinese battery materials maker Ningbo Ronbay New Energy Technology Co, listed on the Shanghai Stock Exchange, plunged 8.57 percent to 34.15 yuan ($4.9) per share in the morning session on Monday after the securities regulator lunched a probe into the company over misleading statements related to a major business contract.

Ningbo Ronbay disclosed earlier a major contract, which is now suspected of containing misleading content. Recently, the China Securities Regulatory Commission (CSRC) has launched a probe into the company, according to a statement seen on the CSRC website on Sunday.

The regulator noted that it will handle the case in accordance with law on the basis of comprehensive investigation to safeguard the healthy and stable development of the market.

According to a company filing to the SSE on Wednesday, Ningbo Ronbay said that it signed a battery materials supply deal with Chinese battery giant Contemporary Amperex Technology (CATL). The company said that it would supply an estimated 3.05 million tons of lithium iron phosphate materials from the first quarter of 2026 to 2031 to CATL, claiming total contract value at more than 120 billion yuan.

Following that announcement, the SSE swiftly sent an Inquiry Letter to Ningbo Ronbay, requiring the company to make supplementary disclosures on the accuracy of information disclosure, performance capability, mandatory obligations, liability for breach of contract, and prevention and control of insider trading. The exchange also requested clarification on whether the announcement contained exaggerated statements or promotional language, and  whether there were motives for stock price manipulation.

Ningbo Ronbay later announced that its shares were suspended from trading on Wednesday, Thursday and Friday.

In its reply to the SSE on Sunday night, the company said the contract did not specify a procurement volume, and the "total contract amount of 120 billion yuan" was an internal estimate. The actual sales scale will depend on raw material prices and order volumes at the time of execution.

The wording of the contract value on Wednesday was not rigorous, the risk warnings regarding potential risks that might arise after the signing of this agreement were insufficient, and some of the wording was not standardized, it added.

This marks the third listed company probed by the CSRC since the start of 2026, following Ningbo Tip Rubber Technology Co and Zhejiang Sunflower Great Health Co, over suspected violations related to information disclosure, the Securities Daily reported.