Jiangsu Lopal Tech (SHA:603906, HKG:2465) issued a risk warning after its subsidiaries signed a second supplemental agreement to a long-term production-materials procurement contract with units of Cornex New Energy, according to a Wednesday filing.

The company said the deal involves large supply volumes and a multi-year execution period, with actual sales, delivery progress, and revenue recognition subject to uncertainty.

The agreement sets supply at 100,000 tonnes for 2026 and 300,000 tonnes annually from 2027 to 2030.

Lopal cautioned that demand shifts, policy changes, raw material swings, and adjustments in lithium-battery technology could affect performance.

The firm also warned of significant liabilities if it fails to meet supply or quality obligations.

Unauthorized delivery suspensions could trigger penalties of five to ten times the value of undelivered goods, plus shutdown-loss compensation, the filing said.