Rongbai Technology: Reply to inquiry letter, explaining contract performance capabilities and risks.

Yongbai Technology announced that the company has replied to the inquiry letter from the Shanghai Stock Exchange regarding the contract signed with CATL. The "total contract amount of 120 billion yuan" is an estimate, and actual sales have uncertainties. The company plans to acquire part of the equity of Guizhou Xinren for 342 million yuan and increase capital by 140 million yuan, with its existing 60,000-ton lithium iron phosphate production line. Capital expenditure for expanding production in the next three years is estimated at 8.7 billion yuan, with allocations of 3.6 billion, 3.3 billion, and 1.8 billion yuan in 2026, 2027, and 2028 respectively. The company's financial reserves and financing capabilities can ensure this. Risks such as insufficient production capacity and fluctuating raw material prices are also highlighted. Additionally, it was found during self-inspection that 2 employees traded stocks during the agreement period, with no current holdings and no insider trading motives. The original announcement was criticized for inexact total contract amount statement and inadequate risk warnings.