Intraday increase of over 280%, leading molybdenum company Shenglong Co., Ltd. listed today

On March 31, Minmetals leader Shenglong Co., Ltd. listed on the Shenzhen Stock Exchange Main Board, opening at 23.46 yuan per share, with an intraday increase of over 280%.
By the close, the company’s latest stock price was 27.68 yuan per share, with a market value of 50.8 billion yuan.
As a result, the total number of A-share listed companies in Henan Province reached 114.

Molybdenum metal reserves: 710.5k tons

As a non-renewable, scarce strategic resource, molybdenum is widely used in steel, petrochemical, defense, military, power, and new energy sectors due to its unique properties, making it an important strategic mineral.

Public information shows that Shenglong Co. is a leading large-scale molybdenum company in China. The 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 Dong Qinling molybdenum belt, with Luoyang’s Luanchuan County 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 Song County Angou molybdenum polymetallic mine under construction 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 operating molybdenum mine in China.

The prospectus discloses that by the end of 2024, Shenglong Co. will hold 4 mining rights and 1 exploration right, with molybdenum metal reserves of 710.5k tons, accounting for about 9.10% of China’s total molybdenum resources. The company also holds 55.3k tons of tungsten trioxide, 11.8k tons of copper metal, and 68.7k tons of lead metal as associated and co-occurring resources.

As a resource-based enterprise, the company’s core competitiveness and sustainable operation largely depend on the number of mining rights and mineral resource reserves it owns. The deep parts of the Nanni Lake molybdenum mine have significant potential for resource expansion. It is expected that in the near future, the mine will reach a daily ore extraction of 50,000 tons.

Additionally, exploration work for resource expansion has been carried out in the mineral area of the Song County Angou molybdenum polymetallic mine, with good results. The region’s favorable mineralization conditions and multiple nearby high-quality mineral rights provide clear advantages for future acquisitions and joint development of resources around the Angou molybdenum mine.

Supported by Zijin Mining, Jiangxi Copper, and China Gold Group

In this IPO, Shenglong Co. attracted strategic investments from Zijin Mining, Jiangxi Copper, and China Gold Group, along with participation from Henan state-owned assets and leading insurance funds. A total of 8 investment institutions subscribed for 504 million yuan.

Shenglong Co. stated that Zijin Mining, Jiangxi Copper, and China Gold Group are large mining enterprises with strong synergy in mineral exploration, mining opportunities, and downstream smelting and processing. The company will deepen cooperation with industry leaders based on the signed “Strategic Cooperation Agreements,” continuously improve its mining and beneficiation technology, enhance market position, and ultimately convert these efforts into stable profitability.

The company raised a total of 710.5k yuan in this capital market listing. The funds will be used to improve the molybdenum metal industry chain layout, further expand resource reserves and capacity, strengthen R&D capabilities, and optimize financial structure, thereby consolidating and enhancing its overall competitiveness in the molybdenum industry.
Specifically, 1.28 billion yuan will be invested in the Henan Province Angou molybdenum polymetallic mine mining and beneficiation project, 100 million yuan in a mining technology R&D center, and 150 million yuan for working capital or bank loan repayment.

Financial data shows that from 2023 to 2025, the company’s operating revenue is projected to be 710.5k yuan, 55.3k yuan, and 11.8k yuan, respectively, with year-on-year growth of 2.41%, 46.30%, and 22.31%.
During the same period, net profit attributable to shareholders is expected to be 619 million yuan, 757 million yuan, and 884 million yuan, with growth rates of 80.05%, 22.23%, and 16.80%.

Aim to Build a World-Class Multi-Metal International Mining Company

It is noteworthy that downstream demand for molybdenum is steadily increasing. According to Tungsten-Molybdenum Cloud Commerce, from January to September 2025, China’s total molybdenum steel demand was approximately 118.4k tons, up 5.03% year-on-year. During the same period, major special steel producers such as Blue Mountain Group, Shanxi Taigang, and CITIC Special Steel increased their molybdenum iron procurement.

Industry reports forecast that the international market prices for molybdenum oxide will steadily rise from $21.3 per pound in 2025 to $22.6 per pound in 2026 and $23.5 per pound in 2027.

According to Shenglong Co.'s preliminary estimates, its operating revenue in the first quarter of 2026 may decrease by 9.41% to 3.11% compared to the same period in 2025, and net profit attributable to shareholders may decrease by 8.40% to 5.07%.

Chairman Lu Youxia stated in her listing speech that this IPO is a recognition of the company’s past efforts and a new starting point. The company will firmly implement the development strategy of “resource priority, innovation-driven, cost leadership,” deeply practice new development concepts, actively assume corporate responsibility, and strive to maximize investor returns, company benefits, and social benefits, aiming to become a top-tier international multi-metal mining enterprise in China.

Author: Wang Qiaoqi