Shenglong Co., Ltd. listed on the Shenzhen Stock Exchange with a 183% increase at opening: annual revenue of 3.5 billion yuan, holding 9% of the national molybdenum resource reserves.

Rui Finance Liu Zhiying On March 31, Shenglong Co., Ltd. (001257.SZ) was listed on the Shenzhen Stock Exchange Main Board, with Guotou Securities as the sponsor. The stock opened up 182.74%, with a total market capitalization of RMB 40.593 billion.

The prospectus shows that Shenglong Co., Ltd. was established in December 2020. It is a large molybdenum company dedicated to the comprehensive development and utilization of nonferrous metal mineral resources. It mainly engages in the production, processing, and sales of heavy and strategic-resource-related molybdenum products, with its main products being molybdenum concentrate and ferro-molybdenum.

As of the end of 2024, the company holds five mining rights for medium-to-large molybdenum mines (including four mining rights and one exploration right). The company possesses 710,500 tons of molybdenum metal, accounting for approximately 9.10% of the country’s total molybdenum resource reserves. The resource reserves are substantial, and all the affiliated mines are in the initial stage of development, with a long remaining period of potential mining in the future. The company’s main customers include China Baowu, Shandong Iron and Steel, Hualing Steel, Citic Pacific Special Steel, among others.

From 2022 to 2025, the company’s operating revenues are projected to be RMB 1.911 billion, RMB 1.957 billion, RMB 2.864 billion, and RMB 3.503 billion, respectively, while net profits attributable to shareholders of the parent company are expected to be RMB 344 million, RMB 619 million, RMB 757 million, and RMB 884 million, respectively.

In the first quarter of 2026, the company expects to achieve operating revenue of RMB 1.23 billion to RMB 1.4 billion, representing a year-on-year change of -9.41% to 3.11%. It also expects net profit attributable to shareholders of the parent company of RMB 340 million to RMB 390 million, with a year-on-year change of -8.40% to 5.07%. After deducting non-recurring gains and losses, net profit attributable to shareholders of the parent company is expected to be RMB 335 million to RMB 385 million, with a year-on-year change of -9.18% to 4.37%.

Before the IPO, Guosheng Group directly held 25.4% of the company’s shares; through the company’s second-largest shareholder, Youse Group, and the third-largest shareholder, Luoyang Chengjian, it indirectly controlled 38.09% of the shares. Guosheng Group and its concerted parties collectively control 63.49% of the company’s shares, making it the controlling shareholder.

Youse Group and Luoyang Chengjian are persons acting in concert with Guosheng Group. Since Luoyang Gongkong Group and Guosheng Group are both subsidiaries with 100% direct ownership by the Luoyang State-owned Assets Supervision and Administration Commission (SASAC), the company also considers Luoyang Gongkong Group as a person acting in concert with Guosheng Group based on prudent principles. Guosheng Group and its concerted parties together hold 64.5% of the company’s shares.

The Luoyang Municipal SASAC is the actual controller of Guosheng Group, Youse Group, Luoyang Chengjian, and Luoyang Gongkong Group, the company’s shareholders. The Luoyang Municipal SASAC is also the actual controller of the company. Since its establishment, the Luoyang Municipal SASAC has continuously been the company’s actual controller, with no changes.