Ganfeng is suspected of insider trading in the shares of a company listed on China's A-share market, according to an announcement.
Chinese lithium giant Ganfeng Lithium (SHE: 002460) is being investigated by China's securities regulator for alleged insider trading in the shares of a company, a rare case in the sector.
Shenzhen-listed Ganfeng, the world's largest lithium producer by market capitalization, revealed the probe in an announcement today, saying it received a notice of investigation from the China Securities Regulatory Commission (CSRC) on July 1.
The CSRC decided on January 24, 2022 to open a case against the company for alleged insider trading in the shares of a listed Chinese A-share company, according to the announcement.
The matter will not affect the company's normal production and operation activities, and the company will continue to monitor the progress of the matter and actively cooperate with the CSRC's related work, Ganfeng said.
It is unclear which company's stock Ganfeng allegedly insider traded in.
Ganfeng is one of the most complete manufacturers of lithium products in China, with production capacity for more than 40 types of lithium compounds and lithium metal products used in electric vehicles, aerospace, functional materials and pharmaceuticals.
Over the past year, Ganfeng has benefited from the rising prices of raw materials, including lithium.
In the first quarter of this year, Ganfeng achieved operating revenue of RMB 5.365 billion, up 233.91 percent year-on-year. Its net profit attributable to the parent company in the first quarter was RMB 3.525 billion, up 640.41 percent year-on-year.
As its operations improve, Ganfeng is also undergoing significant expansion, having said in May that it plans to invest RMB 2 billion to build a project with an annual capacity of 50,000 tons of lithium materials.
On December 10 last year, Ganfeng unveiled its first-generation solid-state battery, a hybrid solid-state and liquid lithium-ion battery, according to a report in Sina.
Ganfeng is working on the second generation of all-solid-state batteries with an energy density of more than 360Wh/kg, according to the report, which does not mention the energy density of the current generation of batteries.
Dongfeng Motor's E70 model was the first to use the battery, and the first 50 vehicles were delivered at the end of January.
Ganfeng's stock traded in Shenzhen has risen 41 percent in the past two months.