Molybdenum industry leader Shenglong Co., Ltd. opens subscription today with an offering price of 7.82 yuan per share

Shanghai Securities News China Securities Network News (Reporter Wang Qiaoqi): Molybdenum industry leader Shenglong Co., Ltd. officially launched its A-share subscription on March 20. The company’s issue price is 7.82 yuan per share, with a subscription limit of 45,000 shares. The sponsor institution is Guotou Securities.

According to information, Shenglong Co., Ltd. mainly engages in the production, processing, and sales of molybdenum-related products, which are important strategic resources. Its main products include molybdenum concentrate and molybdenum iron. The company’s actual controller is the State-owned Assets Supervision and Administration Commission of Luoyang City. The company’s mines are located in China’s largest molybdenum mineralization belt, the East Qinling Molybdenum Belt, and Luoyang Luan County, where the mine is situated, is known as the “Molybdenum Capital of China.”

Thanks to its geographical advantages, the company’s mines have excellent conditions. The Nanni Lake molybdenum mine and the under-construction Song County Angou molybdenum and polymetallic mine are both open-pit mines, offering high extraction efficiency, low production costs, and good safety conditions. The Nanni Lake molybdenum mine is a super-large molybdenum-tungsten deposit with a proven production capacity of 16.5 million tons per year, making it the largest single molybdenum mine in China.

As disclosed, by the end of 2024, Shenglong Co., Ltd. will hold 4 mining rights and 1 exploration right, with molybdenum metal reserves of 710,500 tons, accounting for approximately 9.10% of China’s total molybdenum resources. The company also holds 55,300 tons of tungsten trioxide, 11,800 tons of copper metal, and 68,700 tons of lead metal as associated and co-occurring resources.

According to the “Deep Exploration Report of Cold Water-Chitudi Molybdenum-Lead-Zinc Polymetallic Deposit in Luan County, Henan Province,” the deep exploration in the Cold Water-Chitudi area has added 3.194 million tons of molybdenum metal reserves. The Nanni Lake molybdenum mine is located in the core area of this region, indicating significant potential for further resource expansion. Exploration work has also been carried out within the Song County Angou molybdenum and polymetallic deposit, with good results. The region’s favorable mineralization conditions and multiple high-quality mineral rights nearby provide a clear advantage for future resource acquisitions and joint development based on the Angou deposit.

The funds raised from this IPO will mainly be invested in the mining and beneficiation project of the Angou molybdenum and polymetallic deposit in Song County, Henan Province, the construction of a mining technology R&D center, as well as supplementing working capital and repaying bank loans. These projects will further expand the company’s resource reserves and production capacity, enhance technological R&D strength, and optimize financial structure, thereby consolidating and improving the company’s overall competitiveness in the molybdenum industry.

Financial data shows that the company is expected to achieve operating revenues of 1.957 billion yuan, 2.864 billion yuan, and 3.503 billion yuan in 2023-2025, respectively, representing year-on-year growth of 2.41%, 46.30%, and 22.31%. During the same period, net profits attributable to the parent company are projected to be 619 million yuan, 757 million yuan, and 884 million yuan, respectively, with year-on-year increases of 80.05%, 22.23%, and 16.80%.

According to the company’s preliminary forecast, its operating revenue in the first quarter of 2026 will fluctuate between -9.41% and 3.11% compared to the same period in 2025, and net profit attributable to the parent company will fluctuate between -8.40% and 5.07%.