Shenglong Holdings initiates issuance: driven by resource reserves and market share, strengthening the long-term growth foundation

Source: Jinzhong Technology

On March 12, Luoyang Shenglong Mining Group Co., Ltd. (referred to as “Shenglong Co.”) disclosed its initial public offering prospectus for the first time on the Shenzhen Stock Exchange Main Board, officially launching the issuance. Subscription will begin on March 20, 2026. The company plans to issue 215 million common shares, with all proceeds to be invested in core business projects, including the “Henan Song County Angou Molybdenum Multi-metal Mining and Processing Project” and the “Mining Technology R&D Center.” This move marks the company’s new phase of resource value release, technological upgrading, and supply chain deepening under capital empowerment, effectively enhancing molybdenum resource acquisition capabilities and cultivating new productivity.

Resource endowment constitutes a core barrier, with reserves and growth driven by both long-term value and incremental increases

Shenglong Co. is a leading large-scale molybdenum company in China, dedicated to the comprehensive development and utilization of non-ferrous metal mineral resources. The company has built an industry chain covering mining, beneficiation, and sales around its key strategic resource, molybdenum, focusing on the production, processing, and sales of molybdenum concentrates and molybdenum iron.

The company’s core competitiveness stems from its scarce mining rights and mineral resource reserves. As of the end of 2024, the company held 710,500 tons of molybdenum resources, accounting for approximately 9.10% of China’s proven reserves, making it one of the country’s important molybdenum suppliers. Its core asset, the Nanni Lake Molybdenum Mine, has an annual mining capacity of 16.5 million tons, making it the largest single molybdenum mine in China in terms of production scale. It also features advantages such as shallow burial, high extraction efficiency, low production costs, and good safety conditions.

More notably, the company’s location in Luanchuan County offers broad prospects for deep exploration. According to the “Deep Exploration Report of Cold Water-Chitudi Molybdenum-Lead-Zinc Multi-metal Deposit in Luanchuan County, Henan Province,” the deep exploration in the Cold Water-Chitudi area added 3.194 million tons of molybdenum metal resources. The Nanni Lake Molybdenum Mine is situated in the core area of this region, with significant potential for resource expansion through deep development, promising substantial growth in reserves in the future.

Stable market position, clear capacity planning, and continuous growth momentum

Relying on abundant resource reserves, Shenglong Co. has become one of China’s key molybdenum suppliers. Industry estimates indicate that in 2024, the company’s molybdenum metal production will reach 10,600 tons, accounting for about 9.64% of China’s total molybdenum metal output, demonstrating significant industry influence. The company’s products are mainly sold to leading domestic steel companies such as China Baowu, Shandong Iron and Steel, Hualing Steel, and CITIC Special Steel, establishing stable and strong partnerships. Additionally, the company plans to build an annual capacity of 20,000 tons of high-performance molybdenum materials to extend and strengthen the molybdenum industry chain, optimize product structure, and further enhance industry competitiveness and brand influence.

In response to the structural growth in demand from downstream high-end equipment manufacturing, new energy, national defense, and aerospace sectors, the company has proactively expanded capacity. With the phased commissioning of the Nanni Lake mine expansion and the Angou project, future capacity will reach 55,000 tons per day of molybdenum mining and beneficiation. Meanwhile, funds raised from this IPO will be invested in the “Mining Technology R&D Center Project,” aiming to promote technological innovation and industry chain synergy. The center will focus on key areas such as molybdenum flotation process improvement, open-pit mine slope ecological restoration, and fine-grained molybdenum tailings resource recovery. By introducing and applying new technologies, the company plans to upgrade traditional production modes and unlock the full potential of its mineral resources.

Furthermore, the company will leverage the R&D center to deepen geological research on the Nanni Lake molybdenum deposit and the Angou molybdenum multi-metal deposit in Luanchuan County, as well as nearby regions, to further explore reserve growth potential. It will also provide technical support for downstream molybdenum smelting and deep processing industries, enhancing the entire molybdenum industry chain. Through technological empowerment, process optimization, and industry expansion, the company aims to continuously reduce costs, improve operational resilience and profitability, and solidify its long-term competitive advantages, laying a strong foundation for steady growth in complex market environments.

By entering the A-share capital market, Shenglong Co. is expected to leverage the power of capital markets to accelerate the integration of resource reserves, growth potential, and market position amid intensifying global strategic mineral resource competition and domestic industrial upgrades driving increasing molybdenum demand.

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