Ganfeng Lithium Group Co.,Ltd. is suspected of the crime of insider trading as a corporate entity, and the case has been transferred to the procuratorate for review and prosecution.
On the evening of December 29, Ganfeng Lithium Group Co.,Ltd. issued an announcement stating that it had received a notice of transfer for prosecution from the Yichun Public Security Bureau on the same day: due to suspicion of the crime of insider trading as a corporate entity, the case has been transferred to the procuratorate for review and prosecution.
In July 2024, due to suspected insider trading in "*ST Jiangte" shares, the Jiangxi Regulatory Bureau of the China Securities Regulatory Commission imposed administrative penalties on Ganfeng Lithium Group Co.,Ltd., its then Chairman and President Li Liangbin, and board secretary Ouyang Ming. The Jiangxi Regulatory Bureau confiscated illicit gains of 1.1053 million yuan from Ganfeng Lithium Group Co.,Ltd. and imposed a fine of 3.3159 million yuan; Li Liangbin and Ouyang Ming were given warnings and fined 600,000 yuan and 200,000 yuan respectively.
Regarding this current suspicion of the crime of insider trading, Ganfeng Lithium Group Co.,Ltd. stated that this matter is a subsequent normal judicial procedure carried out based on the administrative penalties imposed by the Jiangxi Regulatory Bureau. The company understands and respects the judicial authorities' performance of their duties in accordance with the law.
Ganfeng Lithium Group Co.,Ltd. stated that, as of now, all of the company's production and operational activities continue to operate normally and orderly. This involved matter pertains to a specific historical event previously disclosed by the company and is not expected to affect the company's normal production and operations.
This notice of transfer for prosecution disclosed by Ganfeng Lithium Group Co.,Ltd. signifies that the case has moved from the administrative investigation stage to the criminal review and prosecution stage, escalating the legal consequences for insider trading.
In recent years, regulatory authorities have intensified their crackdown on various illegal activities, including insider trading, imposing punishments in accordance with the law once violations are discovered. For clues involving criminal offenses, the China Securities Regulatory Commission adheres to the principle of transferring all cases that should be transferred, strictly following the provisions of the "Criminal Law" and the "Regulations of the Supreme People's Procuratorate and the Ministry of Public Security on the Standards for Filing and Prosecuting Criminal Cases under the Jurisdiction of Public Security Organs (II)" when transferring cases to public security organs.
It is worth noting that there were previously reports about the potential spin-off and listing of Ganfeng Lithium Group Co.,Ltd.'s subsidiary, Ganfeng Lithium Battery. However, according to the China Securities Regulatory Commission's "Rules on Spin-offs of Listed Companies (for Trial Implementation)", a listed company, or its controlling shareholder or actual controller, that has been subject to administrative penalties by the China Securities Regulatory Commission within the last 36 months, is not permitted to undertake a spin-off listing.
Public information shows that Ganfeng Lithium Group Co.,Ltd. was established in March 2000 and is the first "A+H" listed company in China's lithium industry. The company is a world-leading lithium ecosystem enterprise, as well as the world's largest producer of metallic lithium and the largest producer of lithium hydroxide in China.
In terms of performance, for the first three quarters of 2025, Ganfeng Lithium Group Co.,Ltd. achieved operating revenue of 14.625 billion yuan, a year-on-year increase of 5.02%; it achieved a net profit attributable to shareholders of the parent company of 26 million yuan, a year-on-year increase of 103.99%; its net profit after deducting non-recurring gains and losses was a loss of 942 million yuan, a year-on-year decrease of 163.43%.
As of the market close on December 29, Ganfeng Lithium Group Co.,Ltd.'s share price was 65.32 yuan per share, a decrease of 4.74%; its total market capitalization was 136.894 billion yuan.
