Luoyang Shenglong Mining's IPO Approved: Analysis of the Impact of the Resumption of A-Share IPOs for Mining Enterprises on Industry Valuation and Resource Allocation

Based on the analysis of Luoyang Shenglong Mining Group’s IPO approval and relevant market data, I will systematically elaborate on the impact of the resumption of A-share IPOs for mining enterprises on industry valuation and capital market resource allocation.

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Luoyang Shenglong Mining Group Co., Ltd. (referred to as “Shenglong Co., Ltd.”) obtained the CSRC’s IPO registration approval on January 9, 2026, and plans to list on the main board of the Shenzhen Stock Exchange. This is a key IPO case of a mining enterprise on the SZSE main board[1][2].

• Core Business
  : A leading large-scale molybdenum company in China, committed to the comprehensive development and utilization of non-ferrous metal mineral resources, mainly engaged in the production, processing and sales of molybdenum-related products[1]
• Market Position
  : In 2024, it produced 10,600 tons of molybdenum metal, accounting for 9.64% of China’s total molybdenum output, making it one of China’s important molybdenum suppliers[2]
• Fundraising Scale
  : Plans to raise RMB 1.53 billion to invest in the Angou Molybdenum Polymetallic Ore Mining and Processing Project in Songxian County, Henan Province, the Mining Technology R&D Center Project, and supplementary working capital[1]
• Financial Performance
  : From 2022 to 2024, operating revenues were RMB 1.911 billion, RMB 1.957 billion, and RMB 2.864 billion respectively; net profits were RMB 344 million, RMB 619 million, and RMB 757 million respectively, showing a steady growth trend[1]

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In 2025, the non-ferrous metals sector rose 94.73% cumulatively for the year, ranking first in A-share industry gains for the first time, breaking the historical record that the sector had never topped the list since 2000[3][4]. There are multiple driving factors behind this valuation re-rating:

1. Superposition Effect of Commodity Price Cycles
   • The gold market is supported by continuous gold purchases by global central banks, changes in the US dollar credit system, and geopolitical factors
   • Silver, driven by both its industrial attributes (demand from photovoltaics and new energy vehicles) and financial attributes, outperformed gold in terms of annual gains
   • The copper supply side faces constraints from insufficient medium- to long-term capital expenditure, coupled with demand growth brought by the expansion of AI computing power

2. Dual Drive of Policies and Capital
   • The CSRC System Work Conference clearly proposed “formulating implementation opinions for the capital market to do a good job in the five major financial tasks” to support the development of strategic mineral resource enterprises[5]
   • The launch of 2 structural monetary policy tools has provided ample liquidity support to the market

:

• The listing of high-quality mining enterprises provides a new valuation anchor, offering a value reference for similar unlisted mining enterprises
• As a large domestic molybdenum company, the IPO pricing process of Shenglong Co., Ltd. itself is the market’s reconfirmation of the valuation level of the molybdenum industry

:

• IPOs bring in incremental capital, improving the market liquidity and trading activity of the mining sector
• Increased participation of institutional investors helps reduce valuation volatility and improve market pricing efficiency

In 2026, the valuation of the mining industry will show obvious structural differentiation characteristics:

Sub-segment	Valuation Driving Factors	Institutional Views
Copper	Expansion of AI computing power, accelerated power grid investment	Supply-demand gap widens, with significant upside potential for valuation[4]
Gold	Global central bank gold purchases, geopolitics	Supported by financial attributes, valuation hub moves upward[4]
Silver	New energy demand + gold-silver ratio repair	Driven by both industrial and financial attributes[4]
Rare Earth/Tungsten	Strategic resource positioning, supply contraction	Obvious policy premium[4]

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The 2025 A-share IPO market showed obvious structural optimization characteristics. According to Wind data, as of December 28, 111 companies completed their initial public offerings during the year, with a total fundraising amount of approximately RMB 125.324 billion, a year-on-year increase of 96.25%[6]. Capital allocation presents the following characteristics:

1. Increased Concentration of Industry Financing
   • The five industries of electronics, automobiles, utilities, power equipment, and biomedicine accounted for over 70% of total fundraising[6]
   • Although mining and resource-based enterprises account for a small proportion in terms of quantity, their single financing scale is large, which has a significant impact on industry resource allocation

2. Intensive Listing of Leading Enterprises in Sub-segments
   • The top 10 IPOs raised a total of RMB 56.164 billion, accounting for 44.82% of the annual total fundraising[6]
   • Huadian New Energy ranked first with a fundraising amount of RMB 18.171 billion, focusing on the green transformation of traditional industries

:

• Luoyang Shenglong Mining plans to raise RMB 1.53 billion, mainly investing in resource development projects and technological R&D[1]
• Funds raised through IPOs have long-term characteristics, which are highly compatible with the long-cycle, asset-heavy investment characteristics of mining enterprises

:

• Fundraising can reduce the enterprise’s asset-liability ratio and optimize its capital structure
• Taking Shenglong Co., Ltd. as an example, the “supplementary working capital and repayment of bank loans” in its IPO investment projects directly improves the company’s financial situation

:

• Shenglong Co., Ltd. plans to invest in the “Mining Technology R&D Center Project”, which reflects the incentive effect of IPOs on technological innovation[1]
• The valuation premium of the capital market for R&D investment guides mining enterprises to increase investment in technological transformation

The area of Luoyang, Henan, where Shenglong Co., Ltd. is located, is known as the “Molybdenum Capital of China” and enjoys unique resource endowment advantages[1]. IPO financing will further strengthen the regional mining industry cluster effect:

• Driving the development of upstream and downstream supporting industries
• Promoting local employment and tax growth
• Promoting high-quality development of the regional economy

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The 2025 CSRC System Work Conference clearly proposed “deepening the comprehensive reform of capital market investment and financing” and emphasized “studying and formulating policy arrangements to better support the development of new-quality productive forces”[5]. The resumption of IPOs for mining enterprises is a concrete embodiment of this policy orientation:

• Improved System Inclusiveness
  : Shifting from “result-oriented” to “process and potential-oriented” to support the listing of strategically significant enterprises with short-term profit fluctuations[6]
• Optimized Review Efficiency
  : Shenglong Co., Ltd. took only about two weeks from passing the listing committee meeting to obtaining CSRC registration, reflecting improved review efficiency

Against the background of intensified global resource competition, the capital market’s support for mining enterprises is of strategic significance:

• Supply Chain Security
  : As an important strategic resource, the stable supply of molybdenum is related to the upgrading of the country’s manufacturing industry[1]
• Resource Pricing Power
  : The listing of high-quality mining enterprises helps enhance China’s voice in global resource pricing

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1. Cyclical Fluctuation Risk
   : The mining industry has strong cyclical characteristics, and commodity price fluctuations directly affect corporate profits and valuations[4]
2. High Valuation Pressure
   : As of the end of 2025, the Shenwan Non-Ferrous Metals Index has hit a new historical high, only 7.4% away from the 2007 historical peak[4]
3. “Champion Curse” Risk
   : Historically, the non-ferrous metals sector has never ranked among the top five in market gains for two consecutive years[4]

Institutions generally believe that in 2026, mining investment opportunities will shift from “cyclical carnival” to “structural opportunities”[3][4], and it is recommended to focus on:

1. Enterprises with Resource Endowment Advantages
   : Enterprises with high-quality copper, gold, and silver mineral resources
2. Enterprises with Excellent Cost Control Capabilities
   : Leading enterprises that achieve cost reduction and efficiency improvement through technological innovation
3. Enterprises with Definite Downstream Demand
   : Metal application enterprises related to the new energy industry chain

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The successful registration of Luoyang Shenglong Mining Group’s A-share IPO marks the substantive resumption of the IPO channel for mining enterprises. This event has a far-reaching impact on industry valuation and capital market resource allocation:

:

• Providing a new valuation reference frame, driving the upward movement of the industry’s valuation hub
• Accelerating valuation differentiation of sub-segments, with resource endowment becoming the core pricing factor
• Enhancing the market’s recognition of the long-term value of mining enterprises

:

• Expanding direct financing channels for mining enterprises and optimizing their capital structure
• Guiding social capital to allocate to strategic mineral resource sectors
• Promoting coordinated regional economic development and industrial upgrading

Looking ahead, with the continuous deepening of capital market reforms and the advancement of the 15th Five-Year Plan, IPOs of mining enterprises are expected to remain active, providing strong support for industry development and resource security strategies.

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[1] Securities Times - “Shenglong Co., Ltd. Passes SZSE Listing Committee Meeting for Initial Public Offering” (https://www.stcn.com/article/detail/3554738.html)

[2] Sina Finance - “CSRC Approves Shenglong Co., Ltd.'s IPO Registration on SZSE Main Board” (https://finance.sina.com.cn/stock/hkstock/ggscyd/2026-01-09/doc-inhftcfs1491257.shtml)

[3] Caifuhao - “Non-Ferrous Metals Tops A-Share Annual Gains for the First Time: What’s Ahead in 2026?” (https://caifuhao.eastmoney.com/news/20260105150444717382100)

[4] Rui Finance - “2026 Non-Ferrous A-Shares Top Gains, Structural Differentiation Expected” (https://m.rccaijing.com/news-7413505933622048207.html)

[5] China Securities Regulatory Commission (CSRC) - “CSRC Holds 2025 System Work Conference” (http://www.csrc.gov.cn/csrc/c106311/c7533169/content.shtml)

[6] Securities Times - “2025 IPOs: Inclusive and Innovative, Sci-tech Innovation Endures, Future Has Arrived” (https://www.stcn.com/article/detail/3561612.html)