Lygend Resources & Technology Co., Ltd. (001246.SZ) has launched its subscription window on September 18, setting the offering price at 21.23 yuan per share. The maximum subscription amount for retail investors is 51,500 shares, with the stock carrying a price-to-earnings ratio of 12.98 times. The company will be listed on the Shenzhen Stock Exchange, with China International Capital Corporation serving as the sponsor.
According to the prospectus, Lygend Resources operates as a globally leading nickel industry chain enterprise. During the reporting period, its core business spans upstream nickel resource procurement, nickel product trading, and nickel product production and sales. The company has deep roots in the nickel sector, starting with nickel product trading and progressively expanding downstream to establish a comprehensive presence across multiple segments of the industry chain.
In the nickel trading segment, the company primarily sources laterite nickel ore and ferronickel. Given the scarcity of nickel ore resources, securing a stable and ample supply is critical for industry participants. Through years of dedicated operations in nickel trading, Lygend Resources has forged long-term, stable partnerships with prominent nickel ore miners and ferronickel producers across regions abundant in laterite nickel ore globally.
Regarding nickel production, the company has entered into a long-term supply agreement with an Indonesian partner for laterite nickel ore to support its OBI project operations. Meanwhile, the pyrometallurgical project under Hui Ran Industrial sources its laterite nickel ore primarily from the Philippines. The company's production bases are located on Obi Island in Indonesia and in Suqian, Jiangsu Province. At the Obi Island facility, the company-controlled hydrometallurgical refining project has commenced operations, with an annual capacity of 120,000 metal tonnes of nickel-cobalt compounds. The controlled pyrometallurgical project is slated for phased commissioning between December 2024 and May 2026, adding 185,000 metal tonnes of ferronickel capacity. Additionally, an associated pyrometallurgical project with 95,000 metal tonnes of ferronickel capacity is already in operation. At the Suqian base, Hui Ran Industrial's pyrometallurgical project contributes 18,000 metal tonnes of ferronickel capacity annually.
During the reporting period, downstream clients for the company's nickel-cobalt compound products included leading domestic manufacturers of ternary battery materials for new energy vehicles. Meanwhile, buyers of laterite nickel ore and ferronickel products consist primarily of stainless steel producers, along with large, creditworthy commodity trading firms.
As detailed in a CIC Consulting report, Lygend Resources ranked first globally in nickel product trading volume in 2024, representing approximately 10.4% of global nickel market demand that year. The company also held the position of China's largest nickel ore supplier, capturing a market share of roughly 35.8%. In the production arena, the company ranked second worldwide among stable HPAL technology-based hydrometallurgical projects by annual design capacity of controlled projects as of the end of 2024, with a 19.7% market share. Within Indonesia's stable HPAL operations specifically, it secured the second spot with a 25.1% market share.
Financially, Lygend Resources reported revenues of approximately 21.29 billion yuan, 29.85 billion yuan, and 40.26 billion yuan for fiscal years 2023, 2024, and 2025, respectively. Net profits during these periods stood at around 1.72 billion yuan, 3.20 billion yuan, and 4.75 billion yuan.