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Shandong Molong Petroleum Machinery Co., Ltd. achieved an operational turnaround in 2025, recording positive earnings for the first time after several consecutive years of losses, with the overseas market serving as the core engine driving the performance rebound.
The company's annual report shows that in 2025, the net profit attributable to the parent company was 5.1556 million yuan, successfully reversing the loss of 43.70 million yuan in 2024. Revenue was 1.762 billion yuan, a year-on-year increase of 29.88%, and the net cash flow from operating activities surged by 630.85% year-on-year to 321 million yuan.
It is worth noting that the net profit after deducting non-recurring gains and losses was still -27.6225 million yuan, indicating that the company's main business profitability has not yet fully returned to the right track. Given that the distributable profit at the consolidated and parent company levels is negative, the company announced that no profit distribution will be made for 2025.
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<h2>Overseas Strategy Pays Off, Revenue Scale Expands Leapfrog</h2>
The overseas market was the primary driver of performance improvement this year. The company vigorously promoted its overseas strategy, with revenue from foreign markets increasing by approximately 50% year-on-year, significantly higher than the company's overall revenue growth rate.
The company's main business is centered on pipe products, including oil pipes, casing pipes, line pipes, boiler pipes, hydraulic support pipes, gas cylinder pipes, marine pipes, and nuclear power pipes, etc. These products combined account for over 90% of operating revenue.
The company adopts a &#34;production based on sales&#34; model. During the reporting period, product orders were ample, with significant year-on-year increases in production and sales volume, and further improvement in capacity utilization.
Gross profit margin increased significantly year-on-year, coupled with the continuous deepening of cost control, leading to a substantial improvement in the company's profitability. The company stated that it achieved internal cost reduction and efficiency improvement through lean management measures, comprehensively enhancing operational efficiency and market competitiveness.
<h2>Concerns over Profitability Quality, Main Business Recovery Still Underway</h2>
Despite the turnaround in net profit, the sustainability of the company's earnings still faces certain uncertainties. The net profit excluding non-recurring items was a loss of 27.62 million yuan, implying that the positive net profit was mainly contributed by non-recurring gains and losses, and the main business is still in the stage of loss recovery.
Looking at quarterly data, the distribution of profits was clearly uneven.
Net profit attributable to shareholders of the listed company in the first and second quarters was 5.42 million yuan and 6.74 million yuan, respectively, while the third and fourth quarters recorded losses of 6.73 million yuan and 275,000 yuan, respectively, with performance under significant pressure in the second half of the year. Operating cash flow also showed similar fluctuations, with negative values in both the second and third quarters.
There are uncovered losses at the parent company level, which directly results in the company's inability to distribute cash dividends to shareholders.
<h2>Asset Scale Expansion, Concentrated Equity Structure</h2>
As of the end of 2025, the company's total assets were 2.682 billion yuan, an increase of 10.82% from the beginning of the year; net assets attributable to shareholders of the listed company were 498 million yuan, a slight increase of 1.14% from the beginning of the year.
In terms of equity structure, HKSCC Nominees Limited held 32.08% as the largest shareholder, and Shouguang Molong Holdings Co., Ltd. held 29.53%. Together, they hold over 60% of the shares, indicating a highly concentrated equity structure.
Among them, approximately 99.35 million shares of the 236 million shares held by Shouguang Molong Holdings are in a pledged state.
The company's stock is listed on both the Shenzhen Stock Exchange and the Hong Kong Stock Exchange. The company previously used the stock abbreviation &#34;ST Molong&#34; and has now resumed its normal abbreviation, reflecting the phased improvement in its operating condition.

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002490

Shandong Molong's 2025 revenue reached 1.762 billion yuan, a year-on-year increase of 29.88%; net profit attributable to the parent company was 5.1556 million yuan, reversing the 2024 loss of 43.70 million yuan. Revenue from foreign markets increased by approximately 50% year-on-year, significantly higher than the company's overall revenue growth rate. Net profit excluding non-recurring items was a loss of 27.62 million yuan, indicating that the main business is still in the recovery phase from losses

- Shandong Molong Petroleum Machinery Co., Ltd. achieved a turnaround in 2025, reporting a net profit of 5.16 million yuan, following significant losses in prior years.  
- The overseas market was the main driver of this performance, with revenue increasing by approximately 50% compared to the previous year, although the company's core profitability remains under pressure due to a loss of 27.62 million yuan in net profit after excluding extraordinary items.  
- The firm's total assets grew by 10.82%, reaching 2.68 billion yuan, but the concentrated ownership structure, with major shareholders holding over 60% of the company, raises concerns about cash dividend distribution.

Shandong Molong 2025 Revenue Grows 30%, Net Profit of 5.16 Million Reverses Losses YoY, Overseas Revenue Surges 50% | Earnings Insights