After a 200% surge in one day, important shareholders "liquidated" their holdings! Over 20,000 retail investors are confused

On the evening of May 8, Shandong Molong announced that its shareholder Shandong Zhimon Holdings Co., Ltd. (hereinafter referred to as "Zhimon Holdings") and its concerted actors Shouguang Panjin Real Estate Co., Ltd. (hereinafter referred to as "Panjin Real Estate"), Shouguang Hongsen Logistics Co., Ltd. (hereinafter referred to as "Hongsen Logistics"), and Shouguang Ruisen New Building Materials Co., Ltd. (hereinafter referred to as "Ruisen New Materials") cumulatively reduced their holdings of the company's H shares by 106.8048 million shares through centralized bidding from May 7 to May 8, 2025, accounting for 13.3866% of the company's total share capital.

On May 6 and 7, the company's stock price surged over 300%. On May 6, Shandong Molong's H shares (00568.HK) once rose over 200% during the trading session, closing up 188.51%. The total trading volume of the company's stock reached HKD 1.276 billion, with a turnover rate of 125.12%. Shandong Molong's A shares also hit the daily limit.

The "liquidation-style" reduction of holdings by multiple shareholders of Shandong Molong has attracted strong market attention. Choice data shows that there are approximately 24,700 A-share shareholders of Shandong Molong.

Some Shareholders Directly Liquidate

The reporter noted that after the stock price surged, several shareholders significantly reduced their holdings, with even three shareholders completely liquidating their positions, which is rare in recent years.

The announcement shows that Zhimon Holdings reduced its holdings by 20.83 million shares, accounting for 2.6108% of the company's total share capital; Panjin Real Estate reduced its holdings by 30.80 million shares, accounting for 3.8604%; Hongsen Logistics reduced its holdings by 31.80 million shares, accounting for 3.9857%; Ruisen New Materials reduced its holdings by 23.3748 million shares, accounting for 2.9297%.

After the reduction, Zhimon Holdings holds 44.81 million shares of the company, accounting for 5.6164% of the company's total share capital. Panjin Real Estate, Hongsen Logistics, and Ruisen New Materials have already "liquidated."

From May 7 to 8, the average transaction price of Shandong Molong's H shares over the two days was HKD 5.038 per share. If this stock price is used to calculate the reduction price for the four shareholders, the total cashing out over the two days exceeds HKD 500 million.

Surge of Over 300% in 2 Days

It can be traced that after Shandong Molong "removes the cap" and is included in the Hong Kong Stock Connect target list, its Hong Kong and A shares began to "skyrocket."

On May 6, Shandong Molong's A shares resumed trading and lifted other risk warnings. The Shenzhen Stock Exchange announced before the market opened that Shandong Molong was included in the list of securities under the Hong Kong Stock Connect. On that day, the company's H shares (00568.HK) once rose over 200% during the trading session, closing up 188.51% The company's stock had a total trading volume of HKD 1.276 billion throughout the day, with a turnover rate as high as 125.12%. Shandong Molong's A-shares also hit the daily limit.

On May 7th, Shandong Molong's H-shares opened with a surge of over 40%, but after a large amount of selling, it subsequently fluctuated downwards, closing with a decline of 6.37%. The total trading volume reached HKD 2.15 billion, with a turnover rate of 150.28%. The A-shares hit the daily limit, achieving two consecutive limit-ups.

Net Profit Plummets 97.50% in Q1 Report

Shandong Molong was successfully listed on the Growth Enterprise Market of the Hong Kong Stock Exchange in April 2004 and transferred to the main board in February 2007. The actual controller is the State-owned Assets Supervision and Administration Commission of Shouguang City.

The company mainly engages in the design, research and development, processing, manufacturing, sales services, and export trade of products related to the energy equipment industry. Its main products include oil drilling machinery, oil and gas transportation equipment, and oil and gas extraction equipment, which are widely used in oil and gas energy drilling, machining, urban pipeline networks, and other fields.

However, the company's performance has been unsatisfactory over the years. Data shows that since 2019, Shandong Molong's net profit attributable to the parent company after deducting non-recurring gains and losses has remained in a loss state. The net profits before and after deducting non-recurring gains and losses for the fiscal years 2021, 2022, and 2023 were -370 million yuan, -425 million yuan, and -567 million yuan, respectively, with negative values for the last three consecutive accounting years. The company's stock trading has triggered other risk warning situations.

In 2024, Shandong Molong achieved operating revenue of 1.356 billion yuan, a year-on-year increase of 2.95%; the net profit attributable to the parent company was a loss of 43.6998 million yuan, a decrease in loss of 92.29% compared to the same period last year.

In the response announcement to the inquiry letter for the 2024 annual report from the Shenzhen Stock Exchange, Shandong Molong stated that its operating conditions in 2024 showed significant improvement compared to 2023 and have gradually returned to normal. The company's current ratio and quick ratio improved compared to 2023, and the debt-to-asset ratio decreased from 88.41% in 2023 to 79.68%, a decrease of 8.73 percentage points. The company's debt repayment ability showed a significant improvement in 2024 compared to 2023 based on three financial indicators.

However, the Q1 report for 2025 shows that Shandong Molong achieved operating revenue of 291 million yuan in the first quarter, a year-on-year increase of 50.51%; the net profit attributable to the parent company was 5.4232 million yuan, a year-on-year decrease of 97.50% Shanghai Securities Journal, original title: "After a 200% Surge in One Day, Major Shareholders 'Liquidate' Their Holdings! Over 20,000 Retail Investors Are Stunned"

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