Shenglong Stock Approved for 15.3 Billion Yuan IPO on Shenzhen Exchange

Luoyang Shenglong Mining Group Co., Ltd., also known as Shenglong Stock, has received approval for its initial public offering (IPO) on the Shenzhen Stock Exchange's main board. The company aims to raise approximately 15.3 billion yuan, with Guotai Junan Securities serving as the lead underwriter.

Shenglong Stock is a leading molybdenum company in China, focusing on the comprehensive development and utilization of non-ferrous metal mineral resources. The company's primary business involves the production, processing, and sales of molybdenum-related products, with molybdenum concentrate and ferromolybdenum being the main products.

According to the U.S. Geological Survey (USGS), China's molybdenum metal production is projected to reach 110,000 tons in 2024. Shenglong Stock's molybdenum metal production for the same year is estimated at 10,600 tons, accounting for 9.64% of the national output, making it one of China's key molybdenum suppliers. The company's mines, including the Nannihu Molybdenum Mine and the An Gou Molybdenum Polymetallic Mine in Songxian, are open-pit mines known for their high efficiency, low production costs, and favorable safety conditions.

The Nannihu Molybdenum Mine is a large-scale molybdenum-tungsten deposit with an annual production capacity of 16.5 million tons. It is the largest single operating molybdenum mine in China, characterized by large reserves, shallow burial, ease of mining, high mechanization, and high safety. The mine is a crucial energy resource base and a strategic mineral exploration base in China. The An Gou Molybdenum Polymetallic Mine has good mineralization conditions, and the associated lead metal has high recoverable value. Shenglong Stock is currently expanding its production capacity and is expected to achieve a daily molybdenum ore mining and selection capacity of 55,000 tons in the future.

As of the end of 2024, Shenglong Stock holds five large and medium-sized molybdenum mine rights, including four mining rights and one exploration right. The company's molybdenum metal reserves amount to 710,500 tons, approximately 9.10% of the national molybdenum resource reserves, according to the Ministry of Natural Resources' 2024 China Natural Resources Bulletin. The company's mines are in the early stages of exploitation, ensuring a long-term mining period and significant economic benefits. Shenglong Stock's products are known for their high quality, low impurity levels, and strong potential for deep processing, earning the company a high reputation in the industry. Major customers include Baowu Steel, Shandong Steel, Huaxin Steel, and Zhongxin Special Steel. The company is also planning to build a 20,000-ton high-performance molybdenum material project to advance the molybdenum industry chain, optimize product structure, and enhance competitiveness and brand influence.

In terms of financial performance, Shenglong Stock reported revenues of approximately 19.11 billion yuan, 19.57 billion yuan, and 28.64 billion yuan for the years 2022, 2023, and 2024, respectively. Net profits for the same periods were approximately 4.52 billion yuan, 7.25 billion yuan, and 7.54 billion yuan, respectively.