On December 29, Jiangxi Ganfeng Lithium Industry Group Co., Ltd. (Ganfeng Lithium Industry) publicly announced that it has been sued for suspected insider trading. At the same time, the company’s cash flow has turned negative compared to the same period last year, indicating a cash flow crisis.
Ganfeng Lithium Industry issued a notice on December 29 entitled “Announcement Regarding Receipt of Indictment Notification Letter Transferred by Yichun Public Security Bureau,” stating that the company “received an indictment notification letter from Yichun Public Security Bureau on December 29, 2025, regarding criminal acts of suspected insider trading. The case has been transferred to the procuratorate for review and prosecution.”
The announcement explained that “the company received the ‘Administrative Penalty Decision’ (No. [2024]2) issued by the Jiangxi Regulatory Bureau of the China Securities Regulatory Commission in July 2024 regarding the above-mentioned matter. The company has timely fulfilled its disclosure obligations in accordance with relevant regulations, paid the fines as required, and made serious rectifications regarding the issues.”
Public records show that in July 2024, Ganfeng Lithium Industry was fined 3.3159 million yuan for insider trading involving Jiangte Electric stock, with illegal gains of 1.1053 million yuan confiscated. A September 2024 announcement revealed that the company had a first-half operating income of 9.589 billion yuan and a net loss of 760 million yuan.
According to news from “Duchuang,” a publication under Shenzhen Window Media Investment Co., Ltd., Ganfeng Lithium Industry’s net profit attributable to shareholders reached 20.5 billion yuan in 2022. However, this figure decreased by 75.87% to 4.947 billion yuan in 2023 and further dropped to a net loss of 2.074 billion yuan in 2024, a year-on-year decline of 141.93%.
In the first three quarters of 2025, Ganfeng Lithium Industry achieved total operating income of 14.625 billion yuan, a 5.02% year-on-year increase. Nonetheless, the adjusted net loss remained at 942 million yuan, compared to a loss of 358 million yuan in the same period last year. During the same period in 2025, the company’s operational cash flow was -429 million yuan, a significant decrease from 4.106 billion yuan in the previous year.
Established on March 2, 2000, Jiangxi Ganfeng Lithium Industry Group Co., Ltd. is engaged in the full industry chain of resource extraction, refining, processing, battery manufacturing, and recycling. Its products are widely used in electric vehicles, energy storage, 3C products, chemicals, pharmaceuticals, and other fields.
As of December 29, Ganfeng Lithium Industry’s stock price was reported at 65.32 yuan per share, a decrease of 4.74%, with a total market value of 136.9 billion yuan.