Group 1 - Shandong Molong's stock price increased by 5.3% to 4.97 HKD per share, with a trading volume of 365 million HKD as of July 31 [1] - Shandong Molong Petroleum Machinery Co., Ltd. specializes in energy equipment manufacturing and services, offering a wide range of products including oil casing, line pipes, drill pipes, boiler pipes, and oil extraction equipment [1] - The company has established strong partnerships with major players in the industry such as PetroChina, Sinopec, and CNOOC, and its products are widely used in oil, natural gas, shale gas, coalbed methane extraction, and coal mining [1] Group 2 - As of the first quarter of 2025, Shandong Molong reported total revenue of 291 million CNY and a net profit of 5.42 million CNY [2]

Core Viewpoint - The significant share reduction by Zhimo Holdings and its concerted parties occurred after a substantial increase in the stock price of Shandong Molong, indicating a strategic exit at a high valuation [2][4][8]. Share Reduction Details - On May 7 and 8, Zhimo Holdings and its concerted parties collectively reduced their holdings by 13.39% of Shandong Molong's total shares, cashing out several hundred million yuan [2][6]. - The reduction included 31.9372 million H-shares on May 7 and 74.8676 million H-shares on May 8, totaling 107 million shares [5][6]. - After the reduction, Zhimo Holdings and its concerted parties held 44.81 million shares, representing only 5.6164% of the total shares [6]. Stock Performance - Following the removal of risk warnings, Shandong Molong's A-shares experienced three consecutive trading days of price increases, while its H-shares saw a maximum increase of 476% over four days [8][12]. - The stock price surged by 188.51% on May 6, followed by a 45% increase on May 7, before experiencing a decline of 6.37% and 27.66% on May 7 and 8, respectively [8][12]. Company Background - Shandong Molong is an energy equipment manufacturer and service provider, with a complete industrial chain in oil machinery research, design, manufacturing, and technical services [12]. - The company was listed on the Hong Kong Stock Exchange in April 2004 and on the Shenzhen Stock Exchange in October 2010 [12].