Core Viewpoint - Ganfeng Lithium's IPO prospects have been severely impacted by a past insider trading incident, leading to a loss of investor confidence and a collective withdrawal of shareholders from Ganfeng Lithium's subsidiary, Ganfeng Lithium Battery [2][4][8]. Group 1: Insider Trading Incident - The insider trading incident occurred in November 2022, when Ganfeng Lithium engaged in illegal stock trading during a sensitive period, resulting in regulatory penalties [4][5]. - The China Securities Regulatory Commission (CSRC) imposed fines and penalties on Ganfeng Lithium, which directly affected Ganfeng Lithium Battery's ability to pursue an independent IPO due to regulatory restrictions [5][6]. Group 2: Shareholder Withdrawal - A total of 23 shareholders opted to sell their entire stakes in Ganfeng Lithium Battery, signaling a lack of confidence in the company's future and confirming the failure of the IPO gamble [2][8]. - The collective withdrawal of shareholders indicates a significant loss of trust in Ganfeng Lithium's management and future prospects [8]. Group 3: Financial Performance - Ganfeng Lithium Battery reported a profit of 164 million yuan in 2023, but this positive trend did not continue into 2024, with a loss of approximately 52.94 million yuan reported for the first nine months [10]. - Ganfeng Lithium's parent company, Ganfeng Lithium Industry, has also faced declining profits, with a projected net loss of 1.4 to 2.1 billion yuan for 2024, marking the first annual loss since its listing in 2010 [11]. Group 4: Market Conditions - The lithium carbonate price has plummeted from 600,000 yuan per ton in 2021 to 75,000 yuan per ton in 2024, representing a decline of 87.5%, which has severely impacted profit margins [14]. - Ganfeng Lithium's core business has seen a significant drop in gross profit margin from 49% in 2022 to 10.34% [14]. Group 5: Strategic Responses - In response to the financial downturn, Ganfeng Lithium is exploring new technologies such as solid-state batteries and diversifying into the photovoltaic sector, although these strategies face significant challenges [16][17]. - The company's expansion into the solar energy market has raised concerns among analysts regarding the risks associated with entering a volatile industry amid declining lithium prices [17].