To The Moon

Shandong Molong Petroleum Machinery Company Limited (00568) has announced that on December 29, 2025, the company, Huarong Agriculture, and a vegetable wholesale company entered into a debt payment agreement. The vegetable wholesale company has agreed to settle the debt of RMB 361 million on behalf of Huarong Agriculture by transferring a specific land parcel to the company. The company believes this payment arrangement will facilitate the recovery of the debt, mitigate bad debt risks, improve the company's financial condition, and ensure fund security, thereby exerting a relatively positive impact on the Group's future financial position and operating results. Furthermore, in recent years, the company has been leasing this land (including the buildings, structures, and machinery equipment on it) for the Group's production and operational activities. This payment arrangement will reduce rental expenses and production costs, contributing to the stability of the company's production and operations. As stated in the company's announcement dated December 15, 2025, the company is planning a new project for an intelligent processing line for high-end specialized petroleum pipes. This project aims to supplement processing capacity and enhance the production efficiency of the factory located on this land. Acquiring the land will meet the company's project construction needs, perfect the industrial chain, and provide an important foundation for further market expansion and the reduction of production costs, which will aid in improving the company's future operational performance and profitability.