Shandong Molong's 2025 revenue grows by 30%, net profit turns positive at 5.16 million yuan, overseas revenue surges by 50% | Financial Report Highlights

Shandong Molong Petroleum Machinery Co., Ltd. achieved a turnaround in its operations in 2025, recording a positive profit for the first time after consecutive years of losses. The overseas market became the core engine driving the rebound in performance.

According to the company's annual report, net profit attributable to shareholders in 2025 was 5.1556 million yuan, successfully reversing the loss of 43.7 million yuan in 2024. Revenue reached 1.762 billion yuan, a year-on-year increase of 29.88%. Net operating cash flow surged 630.85% year-on-year to 321 million yuan.

It is worth noting that net profit excluding non-recurring gains and losses was still -27.6225 million yuan, indicating that the main business's profitability has not fully returned to normal. Given that distributable profits at the consolidated statement and parent company levels are negative, the company announced that it will not distribute profits for 2025.

Overseas Strategy Pays Off, Leapfrog Expansion of Revenue Scale

The overseas market is the most significant driver of performance improvement this year. The company actively advanced its overseas strategy, with revenue from foreign markets rising about 50% year-on-year, significantly higher than the company's overall revenue growth rate.

The company's main business centers on pipe products, including oil pipes, casing pipes, pipeline pipes, boiler pipes, hydraulic support pipes, gas cylinder pipes, ship pipes, and pipes for nuclear power, with these products accounting for over 90% of total operating revenue.

The company adopts a "production based on sales" model, and during the reporting period, product orders were abundant, production and sales volumes increased significantly year-on-year, and capacity utilization improved further.

Product gross margin increased sharply year-on-year, and with continued deepening of cost control, the company's profitability improved markedly. The company stated that internal cost reduction and efficiency gains were achieved through lean management measures, comprehensively enhancing operational efficiency and market competitiveness.

Profit Quality Remains a Concern, Main Business Recovery Still Underway

Although net profit turned positive, the sustainability of the company's profitability remains somewhat uncertain. The loss of 27.62 million yuan in net profit excluding non-recurring gains and losses means that the positive net profit mainly relies on non-recurring items, and the main business is still in the process of loss recovery.

Quarterly data shows an obvious imbalance in the distribution of profits.

Net profit attributable to shareholders of the listed company was 5.42 million yuan and 6.74 million yuan in the first and second quarters, while the third and fourth quarters saw losses of 6.73 million yuan and 275,000 yuan respectively, with performance noticeably under pressure in the second half of the year. Operating cash flow also showed similar volatility, with negative values in both the second and third quarters.

There are un-offset losses at the parent company level, which directly results in the company being unable to pay cash dividends to shareholders.

Asset Scale Expands, Highly Concentrated Equity Structure

As of the end of 2025, the company’s total assets were 2.682 billion yuan, up 10.82% from the beginning of the year. Net assets attributable to shareholders of the listed company were 498 million yuan, an increase of 1.14% from the beginning of the year.

In terms of equity structure, Hong Kong Securities Clearing Company Ltd. holds 32.08% as the largest shareholder, and Shouguang Molong Holdings Ltd. holds 29.53%. Together, they hold over 60% of shares, resulting in highly concentrated ownership.

Among them, about 99.35 million shares out of the 236 million shares held by Shouguang Molong Holdings are pledged.

The company's shares are listed on both the Shenzhen Stock Exchange and the Hong Kong Stock Exchange. The company previously used "ST Molong" as its stock abbreviation, but has now returned to its normal abbreviation, reflecting a stage-wise improvement in its operations.

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