Chang Jiang Shang Bao·2025-05-12 23:28Core Viewpoint - The significant share reduction by major shareholders of Shandong Molong coincided with a dramatic surge in the company's stock price, raising concerns about the company's future prospects despite recent operational changes [1][9]. Group 1: Shareholder Actions - Major shareholder, Shandong Zhimo Holdings, reduced its stake by approximately 17% over three trading days, cashing out nearly 600 million yuan [1][8]. - The share price of Shandong Molong increased over 300% in just two trading days, primarily due to the company's removal from the delisting list and inclusion in the Hong Kong Stock Connect [2][6]. - Following the share price surge, Shandong Zhimo Holdings and its concerted parties completely divested their holdings, indicating a strategic exit during a peak [7][8]. Group 2: Financial Performance - In Q1 2024, Shandong Molong reported revenue of 291 million yuan, a year-on-year increase of over 50%, but still recorded a net loss when excluding non-recurring items [2][12]. - The company has faced continuous losses in its net profit excluding non-recurring items for six consecutive years, totaling 2.061 billion yuan from 2019 to 2024 [2][10]. - Despite the ongoing financial struggles, there are signs of improvement, with a significant increase in operating cash flow and a reduction in net loss compared to previous periods [12]. Group 3: Company Background - Founded in 1987, Shandong Molong specializes in energy equipment manufacturing and is the only domestic supplier providing a full range of oil drilling equipment services [9][10]. - The company has not engaged in equity refinancing since its A-share listing, relying instead on asset sales to maintain operations [11]. - Recent internal reforms and successful bids for major contracts indicate a potential shift in the company's operational trajectory [12].