Lygend Sets A-Share Issue Price at RMB 21.23 to Raise RMB 3.67 Billion

Lygend Resources (02245. HK) announced that it has completed preliminary bookbuilding and set its A-share issue price at RMB 21.23 per share. Online and offline subscriptions will formally open on September 18, 2026, and the shares will be listed on the Shenzhen Stock Exchange main board. The A-share public offering comprises 172.89 million new shares, representing 10% of total share capital after the issue. No transfer of existing shares is arranged, and no strategic placement is set, with all shares being newly issued. Based on the final issue price, gross proceeds from the offering are RMB 3.67 billion. After deducting issuance-related expenses, net proceeds are RMB 3.404 billion, lower than the previously disclosed fundraising target of RMB 4.047 billion. The proceeds will be invested in the Indonesia wet-process slag resource utilization demonstration project and the MHP refining production project, both scheduled for completion in the first quarter of 2028.

The company began as a nickel product trader. After more than a decade of vertical integration along the industrial chain, it has built a full nickel industry chain spanning nickel resource procurement, trading, smelting production and sales. It is China's largest nickel ore trader, with its 2024 nickel product trading volume accounting for 10.4% of the global market and 35.8% of the domestic market. On the production side, the company has established wet-process and pyrometallurgical smelting projects on Obi Island in Indonesia. Current nickel-cobalt compound capacity stands at 120,000 tonnes per year, and ferronickel capacity at 203,000 tonnes per year. Its controlled wet-process HPAL project ranks second globally and second in Indonesia by capacity. Downstream customers include CATL-affiliated enterprises, Ningbo Ronbay New Energy Technology Co. , Ltd. and GEM Co. , among other new energy material companies, while ferronickel products are mainly supplied to major steel enterprises such as Tsingshan Holding Group, Baosteel Desheng and South Korea's POSCO.

In terms of performance, from 2023 to 2025, the company's operating revenue was RMB 21.286 billion, RMB 29.846 billion and RMB 40.255 billion, respectively, while the lower of net profit attributable to shareholders before and after deducting non-recurring items was RMB 1.001 billion, RMB 1.768 billion and RMB 2.827 billion, respectively. In the first half of 2026, the company recorded revenue of RMB 25.364 billion, up 39.8% year on year, and net profit attributable to shareholders of RMB 2.738 billion, up 91.9% year on year. Lygend Resources listed on the Hong Kong Stock Exchange in December 2022, raising HKD 3.763 billion at an issue price of HKD 15.80 per share. As of the close on September 17, 2026, its Hong Kong shares closed at HKD 16.50, giving a total market capitalization of approximately HKD 25.673 billion.