In-Depth Analysis of Ganfeng Lithium (002460.SZ) Insider Trading Case: Assessment of Subsidiary's IPO Prospects and Legal Consequences

Based on the above information, I have prepared a detailed analysis report for you.

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On December 29, 2025, Ganfeng Lithium, a leading enterprise in the lithium industry, issued an announcement stating that the company received the Notice of Transfer for Prosecution served by the Yichun Municipal Public Security Bureau on the same day. Due to suspicion of

, the relevant case has been officially transferred to the procuratorial organ for examination and prosecution [1][2]. This marks that this insider trading case that occurred in 2020 has officially entered the criminal judicial procedure from the administrative penalty stage.

Item	Details
Formation time of insider information	On June 9, 2020, Jiangte Motor (formerly ST Jiangte) drafted the Plan to Become the Largest Shareholder of Jiangte Motor
Content of insider information	Ganfeng Lithium and Jiangte Motor conducted contacts regarding merger and acquisition matters
Trading period	June to July 2020 (within the sensitive period of insider information)
Trading behavior	Cumulative purchase of 16,777,700 shares of Jiangte Motor
Transaction amount	RMB 24,888,800
Profit amount	RMB 1,103,300 (all shares sold later)
Decision-making chain	Decided by Chairman Li Liangbin, overseen by then Secretary of the Board Ouyang Ming, and implemented by the Securities Department [1][3]

• June-July 2020
  : Insider trading occurred
• January 2022
  : The China Securities Regulatory Commission (CSRC) officially opened an investigation into Ganfeng Lithium [3]
• July 2024
  : The Jiangxi Regulatory Bureau of the CSRC issued the Administrative Penalty Decision
• December 29, 2025
  : The case was transferred to the procuratorial organ for examination and prosecution [1][2]

Pursuant to Paragraph 1 of Article 191 of the Securities Law, the Jiangxi Regulatory Bureau of the CSRC previously imposed the following administrative penalties [1][3]:

Punishment Target	Punishment Content
Ganfeng Lithium	Confiscation of illegal gains of RMB 1,103,300, plus a fine of RMB 3,315,900
Chairman Li Liangbin	Warning plus a fine of RMB 600,000
Then Secretary of the Board Ouyang Ming	Warning plus a fine of RMB 200,000

The company has paid the fines and confiscated gains as required and completed relevant rectification work.

After administrative penalties enter the litigation process, securities regulatory authorities transfer the case to public security, procuratorial and judicial organs, which means that if it is subsequently determined to constitute a criminal offense, the punishment will be significantly more severe [1].

According to the Amendment (XI) to the Criminal Law implemented in March 2021, the maximum prison term for insider trading has been raised to

, the maximum fine has been increased to , and the “double punishment system” for unit crimes has been clearly stipulated [3].

The transfer of the case by the public security organ to the procuratorate indicates that the preliminary investigation has been completed, and the procuratorate believes that there is a criminal fact that requires criminal liability to be pursued. However, it should be noted that

— the procuratorate still needs to conduct a comprehensive review of the evidence and finally decide whether to initiate a public prosecution [3].

“A lawyer analyzed that the transfer of the case by the public security organ to the procuratorate indicates that the preliminary investigation has been completed, and it is believed that there is a criminal fact that requires criminal liability to be pursued. However, this does not mean that prosecution is certain — the procuratorate still needs to conduct a comprehensive review of the evidence and finally decide whether to initiate a public prosecution.”[3]

According to relevant regulations of the CSRC,

[4][5]. After the administrative penalty was officially imposed in July 2024, this hard rule has basically blocked the independent listing path of Ganfeng Lithium Power.

Ganfeng Lithium Power was established in 2011. Between 2020 and 2022, it introduced industrial capitals such as Xiaomi Industrial Investment, Dongfeng Motor, and Changan Motor through three rounds of capital increase, and signed a valuation adjustment mechanism (VAM) agreement [4][5][6]:

“If Ganfeng Lithium Power fails to achieve a qualified IPO by December 31, 2025, investor shareholders have the right to require the company’s actual controller to repurchase shares.”

According to the Shareholder Agreement, the actual controller must repurchase shares unconditionally under the following circumstances [2][6]:

1. The actual controller of Ganfeng Lithium Power commits an
   intentional crime
   unrelated to the business and operations of the group company
2. The controlling shareholder or actual controller is subject to
   securities market entry restrictions
   by relevant domestic or foreign regulatory authorities
3. The actual controller is under
   criminal investigation or held criminally liable
   according to law

The transfer of this case for examination and prosecution has already triggered the condition of “the actual controller is under criminal investigation according to law” [2].

Time	Event
March 2025	Ganfeng Lithium Power planned to repurchase no more than 499 million shares with a maximum amount of RMB 1.6 billion, involving 28 shareholders [2][4][5]
Repurchase Result	23 investors exited completely, including Hainan Jimu (Xiaomi Group), Hubei Xiaomi Yangtze River Industry Fund, and Anker Innovations [4][5][6]

Assessment Dimension	Current Status	Expected Outlook
Regulatory Compliance	Bound by the 36-month penalty restriction period	Cannot carry out spin-off listing in the short term
VAM Pressure	Triggered, required to fulfill share repurchase obligations	Sustained pressure from capital withdrawal
Performance	RMB 128 million loss in 2024, RMB 62.71 million loss in H1 2025 [6]	Need to improve profitability to restart IPO
Latest Financing	Launched a new round of capital increase in September 2025 (maximum RMB 2.5 billion) [6]	Still has capital operation intentions, but the IPO path is unclear

Financial Indicator	2024	First Three Quarters of 2025
Operating Revenue	Approximately RMB 20 billion (estimated)	RMB 14.439 billion
Net Profit Attributable to Parent Company	-RMB 2.074 billion (first loss since listing more than 10 years ago)	RMB 25.52 million
Total Assets	—	RMB 110.199 billion

As of the close on December 29, 2025, Ganfeng Lithium’s stock price was reported at RMB 65.32 per share, with a decline of 4.74%, and a total market capitalization of RMB 136.894 billion [1]. Although the stock price fell due to the news on that day,

, mainly benefiting from the recovery of the new energy industry boom and the rise in lithium carbonate prices [7].

Indicator	Value
Total Liabilities as of the end of September 2025	Over RMB 63.4 billion
Asset-Liability Ratio	Approximately 57.59%
Short-Term Borrowings	RMB 10.577 billion
Monetary Funds	RMB 8.017 billion
Current Ratio	0.73 (below 1, existing short-term debt repayment pressure) [7]

Risk Level	Assessment Basis
Medium-High Risk	The case has been transferred to the procuratorate for examination and prosecution. If it is determined to constitute the unit crime of insider trading, it may face criminal punishment; however, the procuratorate still has an evidence review process, and there is uncertainty about whether prosecution will be initiated finally

Impact Dimension	Assessment Conclusion
Direct Impact	Cannot complete spin-off listing within the 36-month penalty restriction period
Capital Chain Reaction	VAM clauses triggered, multiple industrial capitals have initiated withdrawal
Indirect Impact	The actual controller’s criminal risk may further weaken investor confidence
Possibility of Restart	Need to wait for the expiration of the penalty restriction period + resolution of the actual controller’s criminal risk + improvement of the subsidiary’s performance

1. Procuratorate’s Prosecution Decision
   : The procuratorate is expected to decide whether to formally initiate a public prosecution within the next 1-2 months
2. Criminal Trial Result
   : If prosecuted, the subsequent trial result will determine the final legal consequences
3. Performance Improvement of Ganfeng Lithium Power
   : Against the background of rising lithium prices, it is necessary to observe whether it can turn from loss to profit
4. Expiration of Penalty Restriction Period
   : Only after July 2027 will it meet the compliance conditions for spin-off listing

1. Criminal Liability Risk Upgraded
   : The case has escalated from administrative penalty to criminal judicial procedure, and Chairman Li Liangbin, as the directly responsible person in charge, faces personal criminal risks [1][3].

2. Subsidiary’s IPO Plan Substantially Stranded
   : Restricted by the 36-month penalty period, coupled with capital withdrawal triggered by the VAM agreement, it is impossible for Ganfeng Lithium Power to complete its IPO by the end of 2025 [4][5].

3. Short-Term Impact Controllable, Long-Term Risks to Be Observed
   :
   • The company stated that “all production and operation activities remain normal and orderly” [1]
   • It has turned from loss to profit in the first three quarters of 2025, showing an obvious performance recovery trend
   • However, the actual controller’s criminal risk, liquidity pressure and debt level still need continuous attention

: As a global lithium industry leader, Ganfeng Lithium has certain fundamental support, but the actual controller’s criminal risk, blocked spin-off listing and industry cycle fluctuations constitute multiple uncertainties. It is recommended that investors pay close attention to subsequent judicial progress and changes in the company’s operating data.

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[1] Securities Times - “Ganfeng Lithium Suspected of Insider Trading Transferred for Prosecution” (https://stcn.com/article/detail/3563184.html)

[2] China Economic Net - “Ganfeng Lithium Transferred for Prosecution, Spin-off Listing of Subsidiary Clouded” (http://finance.ce.cn/stock/gsgdbd/202601/t20260102_2679208.shtml)

[3] 36Kr - “From ‘Lithium King’ to ‘Involved Party’: Ganfeng Lithium’s Insider Trading Dilemma” (https://m.36kr.com/p/3626398390993927)

[4] Sina Finance - “Hundred-Billion ‘Lithium King’ Commits Insider Trading, Ruins ‘Son’s’ IPO” (https://finance.sina.cn/stock/xg/xgzx/2025-12-30/detail-inhequpm5690354.d.html)

[5] FX168 Finance - “Ganfeng Lithium’s Insider Trading Case Ferments Again, Administrative Penalty Upgrades to ‘Handcuff Risk’” (https://news.fx168news.com/cooperate/2601/7405315.shtml)

[6] StockStar - Relevant Reports (Cited from comprehensive reports of financial media)

[7] Jinling API Market Data (Company Profile and Stock Price Data)