From a small county in Henan province, a mining giant has emerged. Luanchuan County, with a population of just over 300,000, is home to the headquarters of Cmoc Group Limited (603993.SH; 03993.HK), Henan's new stock market leader.
The company's transformation over the past two decades is remarkable. It evolved from a nearly bankrupt molybdenum processing plant into one of the world's top ten copper producers, surpassing Glencore to become the largest cobalt miner globally. In 2025, Cmoc made a significant move by investing billions to acquire gold mines in Ecuador and Brazil, entering the gold sector. This expansion coincided with a bull market for gold, copper, and cobalt, causing Cmoc's stock price to surge more than threefold since 2025. At its peak, its market capitalization exceeded 550 billion yuan, surpassing other prominent companies to become Henan's top stock. Although the valuation has since moderated, it remains above 420 billion yuan.
This wealth creation is closely tied to Yu Yong, a low-profile Shanghai-based billionaire. Through his company, Hongshang Holding, Yu spent over a decade strategically building his position. Starting with a 180 million yuan investment during the company's restructuring in 2004, his stake in Cmoc is now valued at approximately 100 billion yuan. Despite ranking 46th on the 2025 Hurun Rich List with a fortune of 95 billion yuan, Yu remains so discreet that clear photographs of him are scarce online.
In 2025, Cmoc reported revenues of 206.684 billion yuan, a slight decrease of 2.98% year-on-year, but its net profit grew significantly by 50.3% to 20.339 billion yuan. Although its name suggests a focus on molybdenum, the company's primary revenue source is now its copper-cobalt mine in the Democratic Republic of Congo (DRC) in Africa. This is followed by its molybdenum-tungsten mine in Luoyang and a niobium-phosphorus operation in Brazil, with over 90% of its assets located overseas.
The company's journey to this point was not smooth. Over 23 years ago, Cmoc was on the brink of shutdown. Despite being located in China's leading molybdenum and tungsten production county, persistently low molybdenum prices and inflexible management had left half of its 6,000 employees idle, with over 50 million yuan in unpaid pension contributions.
A turnaround began in 2003 when rising molybdenum prices prompted the then state-owned enterprise to seek strategic investors for expansion. While major players like Zijin Mining and Fosun Group initially expressed interest, Hongshang Holding, a relatively unknown entity at the time, ultimately secured a 49% stake for 178 million yuan in August 2004. A key condition was that the state would retain absolute control, which led other bidders seeking control to withdraw.
The company enjoyed several prosperous years fueled by rising molybdenum prices and restructuring benefits. However, the 2008 global financial crisis exposed its vulnerability to commodity price swings, leading to a 70% profit plunge in 2009. This prompted another round of reforms by the state-owned assets regulator. Hongshang Holding, which had maintained a financial investor role through subsequent capital injections and listings in Hong Kong and Shanghai, gradually increased its stake. By the end of 2013, it held 36.01% of the shares, becoming the largest shareholder and completing the transfer of actual control in January 2014.
After nearly a decade, Hongshang had finally gained control. Under Yu Yong's leadership, Cmoc accelerated its overseas acquisition strategy. Its first major international move was in December 2013, acquiring an 80% interest in the Northparkes copper-gold mine in Australia from Rio Tinto for $820 million. This marked its expansion beyond molybdenum and tungsten into copper and gold.
A pivotal moment came in 2016 with the acquisitions of a niobium and phosphate business in Brazil and a stake in the Tenke Fungurume Mining (TFM) copper-cobalt mine in the DRC. This counter-cyclical investment, made when copper prices were low, dramatically expanded Cmoc's balance sheet. With copper prices now at historic highs, these assets have become major profit drivers, with the copper segment generating over 55 billion yuan in revenue in 2025.
However, the bulk of Cmoc's revenue, exceeding 200 billion yuan, now comes from metals trading. In 2018, the company acquired IXM, the world's third-largest metals trader, for $518 million. In 2025, trading contributed over 180 billion yuan, accounting for 87% of total revenue, albeit with a thin gross margin of 6.44%. In contrast, the mining and processing division, with revenue of 77.713 billion yuan (37.6% of the total), enjoyed a high gross margin of 52.85%. It's important to note that these figures involve internal transaction offsets.
Cmoc has strategically positioned itself around a "copper-gold" focus, citing fundamental demand drivers from the energy transition and global safe-haven needs. This strategy has been a key factor in its market valuation surge.
Despite its success, Cmoc faces significant structural risks. Its heavy reliance on copper means its performance is highly sensitive to copper price fluctuations. Geographically, nearly 80% of its mining revenue comes from the DRC, exposing it to geopolitical risks. For instance, a 2025 cobalt export ban and subsequent quotas in the DRC caused a 29.42% drop in cobalt revenue there, even as copper revenue grew. A previous dispute with a state-owned partner in 2023 over royalties had temporarily halted exports, causing an 83% profit decline in the first half of that year.
The company's recent multi-billion yuan gold acquisitions also carry timing risks. Gold prices had soared 62% to over $4,300 per ounce in 2025 and continued rising into 2026. However, prices have since retreated, raising concerns that Cmoc may have bought at a market peak. The new mines in Ecuador and Brazil are not expected to begin significant production until 2029 and 2026, respectively, delaying any benefit from current high prices. Cmoc maintains a long-term bullish outlook on gold.
Yu Yong himself remains an enigmatic figure. A native of Dalian's Wafangdian city, his career began in the textile industry before founding Hongshang in 2003. The source of his initial capital for the Cmoc investment is not publicly known, but his investment acumen extends beyond mining. In 2015, Hongshang invested 800 million yuan in CATL (300750.SZ), then a four-year-old startup. This investment has yielded enormous returns, with Hongshang's remaining stake valued at around 16 billion yuan, not including over 10 billion yuan already realized from partial sales.
Hongshang's portfolio now spans international mining (primarily through Cmoc), insurance services, and equity investments in new energy and technology companies. By the end of September 2025, the group reported total assets of 227.3 billion yuan, revenue of 149.9 billion yuan, and a net profit of nearly 22.9 billion yuan.
A significant development occurred in September 2022 when the Luoyang state-owned assets regulator transferred its stake in Cmoc to a subsidiary of CATL, making the battery giant Cmoc's second-largest shareholder. CATL stated this move was to deepen industrial cooperation for securing global new energy metal resources and committed not to seek control or further increase its stake for three years.
This transaction reunited Yu Yong and CATL's founder, Zeng Yuqun, as allies. Following the partnership, the two companies jointly acquired the Kisanfu copper-cobalt mine in the DRC and lithium-rich salt flats in Bolivia, securing a complete portfolio of key battery metals like copper, cobalt, nickel, and lithium. The deal also brought industrial benefits to Luoyang, with CATL announcing a 14 billion yuan investment to build a new battery production base in the city just two days before the stake transfer.
The involvement of Yu Yong's brother, Yu Bo, who is described as a key figure behind Hongshang, was noted during CATL's site inspection in Luoyang. Together, the low-profile Yu brothers have steered Cmoc from a local enterprise to a major international mining player. Their continued success, however, will depend on navigating the complex interplay of geopolitical risks and volatile commodity cycles.
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