HK Stock Market Move | CALB (03931) fell nearly 4% again, CALB 177Ah lithium iron phosphate battery core plunged into a quality crisis.

CALB (03931) dropped by nearly 4%, with a cumulative drop of nearly 30% this month. As of the time of publication, it fell by 2.67% to HK$16.78, with a transaction amount of HK$56.3087 million. On the news front, on July 14th, Xinhuanet Co., Ltd. reported that a large number of operation vehicles equipped with CALB 177Ah lithium iron phosphate battery cells experienced safety issues such as battery swelling, drastic decline in battery life, and sudden power failure while driving. GAC Aian took the lead in announcing a warranty upgrade, extending the battery warranty for the vehicles involved to 8 years or 300,000 kilometers, with free inspection and replacement, and subsidies for operation suspension. CALB also announced on the same day that it would rectify the situation and establish a dedicated maintenance channel to uphold the quality responsibility of the battery cells. It is worth noting that the division of responsibilities between the two parties has not been clearly stated, and both have not responded to whether a centralized recall will be conducted. Data shows that the AIONS series, from its launch in 2019 to its peak in 2023, has accumulated sales of over 400,000 vehicles. According to media reports, this outbreak of faults occurred within the range of 150,000 to 300,000 kilometers, which happens to be a sensitive period when many operation vehicles either just passed or are about to exceed the manufacturer's warranty period.