Shandong Molong(002490) Hua Xia Shi Bao·2025-05-10 23:43Core Viewpoint - The stock price of Shandong Molong (002490.SZ) experienced significant volatility following announcements of substantial share reductions by major shareholders, raising concerns about the company's future performance and market perception [2][4][5]. Shareholder Actions - On May 8, Shandong Molong announced that its shareholder, Zhimo Holdings, and its concerted parties reduced their holdings by 107 million H-shares, accounting for 13.39% of the total share capital [2][4]. - Following this, on May 9, Zhimo Holdings further reduced its holdings by 28.81 million shares, bringing the total reduction over three days to 17% of the total share capital [2][5]. - The timing of these reductions coincided with a significant increase in the stock price, which had risen over 450% in the previous four trading days [2]. Stock Price Movements - The H-shares of Shandong Molong saw a dramatic increase, with a peak price of 7.55 HKD per share on May 7, before experiencing a decline after the reduction announcements [6]. - The A-shares also followed a similar trend, with a three-day increase before a drop of 7.59% on May 9 following the announcements [6]. Company Background and Performance - Shandong Molong primarily manufactures oil drilling machinery and equipment for oil and gas extraction, which is directly influenced by the global oil and gas market conditions [8]. - Despite the industry's recovery and increased demand for oil and gas equipment, Shandong Molong has reported continuous losses, with revenues declining from 37.34 billion CNY in 2021 to an estimated 13.56 billion CNY in 2024 [8]. - The company faced regulatory scrutiny due to inaccurate earnings forecasts, leading to administrative warnings from the Shandong Securities Regulatory Bureau [9]. Financial Adjustments - The company's projected losses for 2024 were revised significantly, with a forecasted net loss of 35 million to 45 million CNY, contrasting sharply with an earlier profit estimate [9]. - The anticipated reduction in losses for 2024 is attributed to the sale of subsidiaries, which is not indicative of improved core operational performance [9].