Shenglong Corporation's IPO on the Shenzhen Stock Exchange main board has been approved, and the molybdenum metal production is expected to reach 10,600 tons in 2024.

On December 23, Luoyang Shenglong Mining Group Co., Ltd. (referred to as Shenglong Mining) passed the IPO review of the Shenzhen Stock Exchange Main Board Listing Committee. The sponsor institution is Guotou Securities, with a planned fundraising of 1.53 billion yuan. According to the prospectus, Shenglong Mining is a leading large-scale molybdenum company in China, dedicated to the comprehensive development and utilization of non-ferrous metal mineral resources. During the reporting period, the company mainly engaged in the production, processing, and sales of important strategic resources related to molybdenum products, with main products being molybdenum concentrates and molybdenum iron. The company is the cornerstone supporting the safe and stable operation of China's molybdenum industry chain, a strong guarantee for the production and supply of national strategic mineral resources, and an active practitioner in fulfilling the mission of safeguarding national industrial security. By the end of 2024, the company's share of molybdenum metal reserves and molybdenum metal production in China both reached over 9%, fully playing a key role in the supply of raw materials, actively improving the tight supply-demand situation of molybdenum resources, and effectively promoting the sustainable development of the molybdenum industry chain. The company is deeply integrated into the domestic molybdenum industry chain. Its subsidiary Longyu Molybdenum Industry is a key unit in Henan Province's tungsten-molybdenum-titanium-magnesium industry chain, with multiple independent research and development core technologies in key areas of the molybdenum industry chain, ranking at the forefront in various core indices such as recovery rates. The company actively promotes the high-quality development of the molybdenum industry chain by improving the efficiency of mineral resource development, the level of comprehensive utilization, and cultivating new mining production capabilities. Shenglong Mining's main business production capacity is outstanding. According to data from the United States Geological Survey (USGS), China's molybdenum metal production in 2024 was approximately 110,000 tons, and the company's molybdenum metal production in 2024 was 10,600 tons, accounting for 9.64% of China's molybdenum metal production, making it one of China's important molybdenum suppliers. The company has excellent mineral endowment. The Nanmihu molybdenum mine in production and the Songxian Angou molybdenum-polymetallic mine under construction are both open-pit mines with advantages of high mining efficiency, low production costs, and good safety conditions. The Nanmihu molybdenum mine is a super-large molybdenum-tungsten deposit with a proven production scale of 16.5 million tons per year, making it the largest single operating molybdenum mine in China. It has the characteristics of large reserves, shallow burial, easy beneficiation, high degree of mechanization, and high safety coefficient, serving as an important energy resource supply base and a key strategic mineral exploration base in China. The Songxian Angou molybdenum-polymetallic mine under construction has favorable ore-forming conditions, with high recoverable value of associated lead metals. Currently, the company's various capacity expansion projects are fully underway, and in the future, it will have a molybdenum ore beneficiation capacity of 55,000 tons per day. The company has abundant resource reserves. As of the end of 2024, Shenglong Mining holds 5 large and medium-sized molybdenum mining rights (including 4 mining rights and 1 exploration right), with a molybdenum metal reserve of 710,500 tons, accounting for approximately 9.10% of the national molybdenum resource reserves (according to the Ministry of Natural Resources' "China Natural Resources Bulletin 2024"). The resource reserves are huge, and the affiliated mines are all in the early stages of mining, with long mining periods in the future and significant economic benefits. The company's product quality is good, with few impurities and great potential for deep processing. It has high visibility and reputation in the industry. Its major customers include China Baowu, Shandong Iron And Steel, Hunan Valin Steel, CITIC Pacific Special Steel Group, etc. At the same time, the company plans to build a project with an annual production of 20,000 tons of high-performance molybdenum materials to promote the extension and complementation of the molybdenum industry chain, optimize product structure, and further enhance industry competitiveness and brand influence. The funds raised this time will be invested in the company's main business, enhancing the overall competitiveness of the company and benefiting the company and all shareholders. After deducting the issuance expenses, the funds raised from this issuance and listing will be allocated to the following projects in order of importance: Finance-wise, as of 2022, 2023, 2024, and January to June 2025, Shenglong Mining achieved operating income of approximately 1.911 billion yuan, 1.957 billion yuan, 2.864 billion yuan, and 2.289 billion yuan respectively. The net profits during the same period were approximately 452 million yuan, 725 million yuan, 754 million yuan, and 602 million yuan respectively.