New stock news | Mingzhu Chemical submitted the listing application to the Hong Kong Stock Exchange as a provider of selected mineral dressing agents.

According to the disclosure from the Hong Kong Stock Exchange on April 22, Hunan Mingzhu Mining Chemical Technology Co., Ltd. (referred to as Mingzhu Chemical) has submitted its listing application to the main board of the Hong Kong Stock Exchange, with CMBC CAPITAL as the exclusive sponsor. Company Overview The prospectus shows that Mingzhu Chemical is a provider of mineral processing reagent solutions serving domestic and international markets. It is mainly engaged in the research and development, production, and sales of flotation reagents, including collectors, regulators, and frothers. The company's products are mainly used in the precious metals and non-ferrous metals mining industry, providing efficient, low-toxicity reagent formulas and lime-free flotation processes that can increase concentrate recovery rates while reducing the generation of hazardous waste. Revenue breakdown by product or service type is as follows: According to Frost & Sullivan's data, based on the revenue attributed to flotation reagent product sales in China in 2024, the company ranks second among flotation reagent companies in China with a market share of 1.05%. At the same time, based on the sales revenue of yellow medicine products in China in 2024, the company ranks first among yellow medicine companies in China with a market share of 15.57%. Traditionally, the mining industry has relied on highly toxic and environmentally impactful reagents, leading operators to bear significant compliance burdens while often not achieving ideal resource recovery rates. The company addresses these challenges by continuously investing in proprietary research and development to enhance the performance of existing reagent formulas and develop solutions for complex ore issues such as low flotation efficiency, poor selectivity, and unstable recovery rates under complex ore conditions. Driven by industrialization, urbanization, the continuous transformation of energy, and the development of emerging technology industries, global demand for mineral resources continues to demonstrate structural and sustained characteristics. The increasing demand for key minerals, such as lithium, copper, rare earth elements, and phosphorus, has been spurred by the accelerated shift towards clean energy transitions (including the development of electric vehicles and energy storage), advances in artificial intelligence, and the construction of data centers. As the extraction activities of these minerals intensify, there is a growing demand in the market for specialized flotation reagents capable of handling increasingly complex low-grade ore bodies and addressing pain points of traditional reagents. At the same time, the increasingly stringent environmental regulations in major mining jurisdictions are driving the industry to accelerate the transition from traditional high-toxicity reagents to more environmentally friendly alternatives. Leveraging the company's technical strength in complex ore processing and low-toxicity reagent development, as well as its long-standing client relationships across over 15 countries globally, the company can seize the growing market demand for high-performance, environmentally compliant flotation reagent solutions. Financial Information Revenue: In the fiscal years 2023, 2024, and 2025, the company achieved revenues of approximately RMB 230 million, RMB 259 million, and RMB 324 million, respectively. Net Profit: In the fiscal years 2023, 2024, and 2025, the company recorded total profits and comprehensive income of RMB 43.98 million, RMB 49.42 million, and RMB 66.59 million, respectively. Gross Margin: The company's overall gross margin increased from 27.9% in 2024 to 29.7% in 2025, mainly attributed to the increase in the collector's gross margin from 28.3% in 2024 to 30.7% in 2025. This is due to (i) the company's cost control measures, such as prepayment to suppliers in exchange for discounted purchase prices, and (ii) the revenue contribution from several high-margin products. Industry Overview From 2020 to 2024, the size of the Chinese flotation reagent market increased from RMB 16.7 billion to RMB 19.8 billion, with a compound annual growth rate of 4.3%. From 2025 to 2029, the size of the Chinese flotation reagent market is expected to grow from RMB 20.9 billion to RMB 26.5 billion, with a forecasted compound annual growth rate of 6.2%. In 2024, oxide ore flotation reagents were approximately RMB 13.4 billion, and sulphide ore flotation reagents were approximately RMB 6.4 billion. By ore type, oxide ore flotation reagents account for about 68% of the total market, while sulphide ore flotation reagents account for about 32%. Future growth momentum will mainly come from the continuous increase in domestic mineral resource development investment, especially the proportion of deep, complex, and low-grade ore body development, driving the intensity of reagents to improve and achieve better recovery rates. In addition, under the joint effect of policies guiding resource security, continuous integration in the mining industry, and the accelerated application of high-performance, environmentally friendly flotation reagents, market demand is expected to further unleash. Overall, the Chinese flotation reagent market is expected to maintain a steady expansion trend in the forecast period and continue to lay a solid foundation for its revenue scale. From 2020 to 2024, the global flotation reagent market grew from RMB 50.7 billion to RMB 59.6 billion, with a compound annual growth rate of 4.1%. From 2025 to 2029, the global flotation reagent market is expected to grow from RMB 62.7 billion to RMB 78.4 billion, with a forecasted compound annual growth rate of 5.7%. The faster growth trajectory is expected to be driven by the continuous increase in global mineral resource development investment, the enhancement of complex and low-grade ore beneficiation, and the increase in reagent consumption related to stricter environmental and performance requirements. In the forecast period, the global flotation reagent market is expected to maintain a robust growth momentum, primarily benefiting from increased sales volume and the continuous upgrade to high-value, high-performance formulations. Collectors are a type of flotation reagent primarily used to selectively regulate the surface properties of target minerals. Its core function is to enhance the hydrophobicity of mineral particles, allowing them to adhere to the surface of bubbles and rise with the bubbles, thereby achieving effective separation from gangue minerals during the flotation process. From 2020 to 2024, the global collector market grew from RMB 21.91 billion in 2020 to RMB 25.88 billion in 2024, with a compound annual growth rate of 4.2%. The yellow medicine market grew from RMB 2.15 billion to RMB 2.56 billion, primarily supported by its widespread application in sulphide ore flotation; the black medicine market grew from RMB 1.85 billion to RMB 2.19 billion, reflecting stable demand in complex polymetallic ore beneficiation. Ethyl xanthate and dithiocarbamate grew from RMB 1.15 billion and RMB 0.82 billion to RMB 1.32 billion and RMB 0.95 billion, respectively, benefiting from their high selectivity advantages in fine-grained flotation. Other categories of collectors also maintained steady growth, reaching RMB 18.85 billion in 2024, reflecting a continued trend of diversification in the global collector formulation system. By 2029, the global collector market is expected to reach RMB 35.03 billion, with a forecasted compound annual growth rate of 6.3% from 2025 to 2029. As global ore grades continue to decline, market growth is expected to accelerate, driving an increase in reagent consumption and promoting the widespread use of customized, high-performance collector systems. The yellow medicine market is expected to reach RMB 3.54 billion, the black medicine and ethyl xanthate markets are expected to grow to RMB 2.99 billion and RMB 1.73 billion, respectively, while the dithiocarbamate market is expected to reach RMB 1.28 billion, benefiting from its expanded application in high-selectivity flotation scenarios. The other collector market is expected to increase to RMB 25.5 billion, reflecting the industry's accelerating transition towards environmentally friendly and specialized collector products. Overall, the global collector market will benefit from the upgrade of reagent structures and the improvement of flotation intensity in global ore processing operations. From 2020 to 2024, the Chinese collector industry market size increased from RMB 6.37 billion in 2020 to RMB 7.57 billion in 2024, with a compound annual growth rate of 4.4%. During this period, the yellow medicine market size increased from RMB 0.79 billion to RMB 0.94 billion; the black medicine market increased from RMB 0.54 billion to RMB 0.65 billion; the ethyl xanthate market increased from RMB 0.31 billion to RMB 0.36 billion; the dithiocarbamate market increased from RMB 0.20 billion to RMB 0.23 billion, and other collectors increased from RMB 4.53 billion to RMB 5.39 billion. By 2029, the Chinese collector industry market size is expected to reach RMB 10.29 billion, with a forecasted compound annual growth rate of 6.4% from 2025 to 2029. During this period, the yellow medicine market size is expected to reach RMB 1.30 billion, the black medicine market to RMB 0.88 billion, the ethyl xanthate market to RMB 0.47 billion, the dithiocarbamate market to RMB 0.31 billion, and other collectors to increase to RMB 7.32 billion. Board Information The board of directors will consist of seven directors, including four executive directors and three independent non-executive directors. Equity Structure Ms. Diao holds 65.76% of the company's shares, Mr. Liu Da holds 15.54%, Mr. Heizi Jian holds 4.80%, Mr. Zhang Xiaofeng holds 3.50%, and Mr. Luo Ren holds 1%. Intermediary Team Exclusive Sponsor: CMBC CAPITAL Limited Overall Coordinator: Minyin Securities Limited Company Legal Advisors: Regarding Hong Kong law: HanKun Solicitors and Lawyers; Regarding Chinese law: Beijing Tongshang Law Firm; Regarding U.S. sanctions and export control laws: HanKunLLP Legal Advisors of the Exclusive Sponsor: Regarding Hong Kong Law: Zhao Buyu Maguoqiang Law Firm; Regarding Chinese law: Jing Tian Gongcheng Law Firm Auditors and Reporting Accountants: Deloitte Touche Tohmatsu Certified Public Accountants Industry Consultants: Frost & Sullivan (Beijing) Consulting Co., Ltd., Shanghai Branch.