ZANGGE MINING(SZ:000408) Xin Lang Cai Jing·2025-07-17 07:11Core Viewpoint - The company, Zangge Mining (000408.SZ), has been ordered to suspend operations at its wholly-owned subsidiary, Geermu Zangge Lithium Industry Co., Ltd., due to illegal lithium resource extraction activities, which may have limited impact on its overall financial performance [1][2]. Company Summary - Zangge Mining's subsidiary, Geermu Zangge Lithium, received a notice from the Haixi Prefecture Natural Resources Bureau and the Haixi Salt Lake Management Bureau to immediately cease lithium resource development activities and rectify the situation [1]. - The company plans to apply for resumption of production once it has completed the necessary legal procedures for lithium resource extraction [1]. - For the current year, Geermu Zangge Lithium aims to achieve a lithium carbonate production and sales target of 11,000 tons each, with an expected net profit of 49 million yuan for the first half of the year, which is a small portion of the company's overall net profit [1][2]. Industry Summary - The domestic lithium carbonate market is currently experiencing oversupply, leading to a decline in lithium prices [4]. - A report from Yong'an Futures indicates that by the first half of 2025, the oversupply of lithium carbonate will continue to exert pressure on prices, with Australian mine quotes being compressed to $600-650 per ton, corresponding to domestic lithium carbonate prices of 58,000-62,000 yuan per ton [4]. - The report suggests that the probability of large-scale production cuts by Australian mines to support prices is low, and the oversupply situation is expected to persist in the coming months [4].