Shandong Molong (00568) opened sharply higher by over 13%. As of the time of writing, the stock was up 13.31%, trading at HK$3.66 with a turnover of HK$8.0037 million.
The surge follows the company's announcement that it recently received a government cash subsidy of 20 million yuan.
This subsidy is income-related and accounts for 45.77% of the absolute value of the net profit attributable to the listed company's shareholders in its last audited fiscal year.
Notably, Shandong Molong recently received support from Shouguang State-Owned Capital, which helped alleviate its financial pressure through an in-kind debt settlement.
On the evening of December 29, Shandong Molong disclosed a debt restructuring plan.
Under the plan, Shandong Shouguang Vegetable Wholesale Market Co., Ltd. intends to use assets it holds—including land use rights, buildings and structures, and machinery equipment located in the Shouguang Science and Technology Industrial Park, with an assessed value of 362 million yuan—to repay a 361 million yuan debt owed to Shandong Molong on behalf of Shouguang Huarong Agricultural Technology Co., Ltd.
