Shandong Molong (00568.HK) saw its stock price surge dramatically within the first two days after its resumption of trading, drawing significant market attention. On May 6, the company’s A-shares resumed trading and lifted the risk warning. On the same day, the H-shares skyrocketed by over 200% during trading, closing up by 188.51%, while the A-shares also hit the daily trading limit. However, following the explosive price increase, several shareholders chose to significantly reduce their holdings, with some even opting to sell off their entire positions.

Stock Price Soars Over 300% After Resumption

On May 6, Shandong Molong's A-shares resumed trading and the risk warning was lifted. The Shenzhen Stock Exchange also announced that the company had been added to the Hong Kong Stock Connect list. After the resumption, the company's H-shares surged by over 200%, eventually closing with an impressive gain of 188.51%. The H-shares saw a total trading volume of HKD 1.276 billion, with a turnover rate of 125.12%. At the same time, the A-shares hit the daily 涨停 (limit up) for the first time, signaling strong investor enthusiasm.

On May 7, the H-shares continued their strong performance at the opening, rising by more than 40%. However, faced with significant selling pressure, the stock price began to fluctuate and eventually closed down by 6.37%. The day’s trading volume was HKD 2.15 billion, with a turnover rate of 150.28%. Meanwhile, the A-shares remained strong, continuing with their limit-up trend for two consecutive days.

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Shareholder Large-Scale Reductions Spark Market Concern

Following the dramatic surge in stock price, several shareholders decided to significantly reduce their holdings, with some even engaging in “clearance-style” sell-offs. This has become a major focus of market attention. According to the company's announcement, the following shareholders carried out substantial reductions:

Zhimeng Holdings reduced its stake by 20.83 million shares, or 2.61% of the total share capital.

Panjin Properties reduced its stake by 30.80 million shares, or 3.86% of the total share capital.

Hongsen Logistics reduced its stake by 31.80 million shares, or 3.99% of the total share capital.

Ruishen New Materials reduced its stake by 23.37 million shares, or 2.93% of the total share capital.

After these reductions, Zhimeng Holdings still holds 44.81 million shares, or 5.62% of the total share capital. However, Panjin Properties, Hongsen Logistics, and Ruishen New Materials have completely liquidated their holdings, exiting as shareholders of Shandong Molong.

Performance Fluctuations

Over the years, Shandong Molong’s performance has been disappointing. According to the data, the company’s net profit attributable to the parent, after excluding non-recurring items, has been consistently negative since 2019. Specifically, from 2021 to 2023, the company's net losses were:

2021: -370 million yuan

2022: -425 million yuan

2023: -567 million yuan

This resulted in three consecutive years of losses, and the stock had even triggered risk warnings on several occasions due to poor performance.

However, in 2024, the company showed signs of improvement. Operating revenue reached 1.356 billion yuan, an increase of 2.95% year-on-year. The net loss attributable to the parent narrowed to 43.7 million yuan, a 92.29% reduction in losses compared to the previous year. This suggests that the company’s operational situation and debt repayment ability have improved significantly.

Yet, the Q1 2025 report showed mixed results. Despite a 50.51% year-on-year increase in revenue, reaching 291 million yuan, the net profit attributable to the parent was just 5.42 million yuan, a 97.50% decrease compared to the same period last year. This stark contrast between revenue growth and declining profits indicates challenges in the company’s overall profitability and cost control.

How to Buy Shandong Molong on uSMART

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