Shandong Molong Petroleum Machinery : ANNOUNCEMENT UNAUDITED 2019 THIRD QUARTERLY REPORT...

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibilities for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(A Sino-foreign joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 568)

ANNOUNCEMENT

UNAUDITED 2019 THIRD QUARTERLY REPORT

This announcement is published simultaneously in the People's Republic of China pursuant to the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange 《( 深圳證券交易所股票上市規則》) and in Hong Kong pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (''Listing Rules'').

PART 1 IMPORTANT NOTICE

The board of directors, supervisory committee and the directors, supervisors and senior management of the Company confirm that this quarterly report does not contain any false information, misleading statements or material omissions, and collectively and individually accept responsibility for the truthfulness, accuracy and completeness of its contents.

All directors attended the Board meeting for approving this quarterly report.

Liu Yun Long, person in charge of the Company, Liu Min, accounting officer in charge of the Company and Ding Zhi Shui, person in charge of the accounting body (accounting executive) of the Company, hereby confirm the truthfulness, accuracy and completeness of the financial statements contained in this quarterly report.

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PART 2 BASIC INFORMATION OF THE COMPANY

1. MAJOR ACCOUNTING DATA AND FINANCIAL INDICATORS
   Any necessary retrospective adjustment or restatement of the accounting data of the prior years
   □ Yes ✓ No

				Increase/decrease
				at the end of the
				current reporting
	At the end of		period as compared
	the reporting		At the end	to the end
		period		of last year	of last year
Total assets (RMB)	6,272,722,526.14	6,607,536,593.37	-5.07%
Net assets attributable to shareholders
of listed company (RMB)	1,910,430,019.47	1,944,091,288.19	-1.73%
				From the
		Period-on-	beginning of the	Period-on-
			period year to the end of	period
	The reporting	increase/	the reporting	increase/
	period	decrease	period	decrease
Operating income (RMB)	1,023,689,794.92	-21.15%	3,401,134,829.18	3.12%
Net profit attributable to
shareholders of listed
company (RMB)	(51,188,088.71)	-208.97%	(33,175,165.35)	-141.70%
Net profit after extraordinary
gains or losses attributable
to shareholders of listed
company (RMB)	(56,744,614.49)	-223.99%	(41,750,952.91)	-159.86%
Net cash flows from
operating activities (RMB)	112,806,406.28	-62.19%	386,518,038.08	152.55%
Basic earnings per share
(RMB per share)	(0.0642)	-209.00%	(0.0416)	-141.73%
Diluted earnings per share
(RMB per share)	(0.0642)	-209.00%	(0.0416)	-141.73%
Weighted average rate of
return on net assets	-2.64%	-5.08%	-1.72%	-5.89%

Extraordinary gain or loss items and amounts

• Applicable □Not applicable

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			Unit: RMB
	From
	the beginning of
	the year to
	the end of the
Item	reporting period		Note
Profit or loss on disposal of non-current assets (including
written-off of provisions for assets impairment)	5,499,629.48			-
Recorded into the profit or loss of the current government
subsidies (except those closely associated with the enterprise
business, in accordance with the unified national standard
quota or quantity)	13,296,278.90			-
Profit or loss arising from contingencies unrelated to the normal
operation of the Company	(14,734,583.46)		-
Other non-operating income and expenses other than the above
items	4,668,260.59
Less: Effect of income tax	(394,254.62)		-
Effect of minority interests (after tax)	548,052.57		-
Total	8,575,787.56			-

Explain the reasons for determination of the extraordinary profit or loss items defined by the Company in accordance with the definition set out in the Explanatory Announcement No. 1 on Information Disclosure by Public Issuers - Extraordinary Profit or Loss Items 《( 公開發行證券的 公司信息披露解釋性公告第1號-非經常性損益》), and of the recurring profit or loss items that are in conformity with the definition of ''extraordinary profit or loss items'' as set out in the above-mentioned document.

• Applicable ✓ Not applicable

No extraordinary profit or loss items as defined and illustrated in the Explanatory Announcement No. 1 on Information Disclosure by Public Issuers - Extraordinary Profit or Loss Items was deemed to be recurring profit or loss items for the reporting period.

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1. TOTAL NUMBER OF SHAREHOLDERS AND SHAREHOLDINGS OF TOP TEN SHAREHOLDERS AS AT THE END OF THE REPORTING PERIOD
   1. Number of ordinary shareholders and preferred shareholders restored by voting rights and shareholdings of top ten shareholders

						Unit: share
Total number of ordinary		36,623 Total number of preferred		0
shareholders as at the end		shareholders restored by
of the reporting period			voting rights as at the end of
			the reporting period
Shareholdings of top ten shareholders
					Number of	Pledged or frozen
			Percentage of	Number of	shares subject	Status of
Name of shareholder	Nature of shareholder	shareholding	shares	to lock-up	shares	Quantity
Hong Kong Securities Clearing
Company Limited	Overseas legal person	30.93%	246,785,390	0	-	-
	Domestic	natural
Zhang En Rong (張恩榮)	person		29.53%	235,617,000	176,712,750	Pledged	235,617,000
	Domestic	natural
Zhang Yun San (張雲三)	person		4.03%	32,168,400	17,331,000	-	-
	Domestic	natural
Lin Fu Long (林福龍)	person		3.28%	26,162,000	0	-	-
Central Huijin Asset Management	State-owned legal
Co., Ltd	person		1.70%	13,536,100	0	-	-
SZ Qianhai Jing Wei Rong He
Asset Management Co., Ltd (深
圳前海經緯融和
資產管理有限公司) - Rong He
Private Securities Investment	Domestic	non-state
Fund II	owned legal person	0.47%	3,757,252	0	-	-
MORGAN STANLEY & CO.
INTERNATIONAL PLC.	Overseas legal person	0.31%	2,458,899	0	-	-
	Domestic	natural
Zheng Xiang Jin (鄭香金)	person		0.29%	2,300,100	0	-	-
	Domestic	natural
Sun Xiao Ou (孫小鷗)	person		0.24%	1,926,000	0	-	-
	Domestic	natural
JSAN ANNE MARIE	person		0.19%	1,500,000	0	-	-

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Shareholdings of top ten shareholders not subject to lock-up

	Number of shares not	Stock class
Name of shareholder	subject to lock-up	Class	Quantity
		Overseas listed foreign
Hong Kong Securities Clearing Company Limited	246,785,390	shares	246,785,390
Zhang En Rong (張恩榮)	58,904,250	RMB ordinary shares	58,904,250
Lin Fu Long (林福龍)	26,162,000	RMB ordinary shares	26,162,000
Zhang Yun San (張雲三)	14,837,400	RMB ordinary shares	5,777,000
		Overseas listed foreign
		shares	9,060,400
Central Huijin Asset Management Co., Ltd	13,536,100	RMB ordinary shares	13,536,100
SZ Qianhai Jing Wei Rong He Asset Management
Co., Ltd (深圳前海經緯融和資產管理有限公
司) - Rong He Private Securities Investment
Fund II	3,757,252	RMB ordinary shares	3,757,252
MORGAN STANLEY & CO. INTERNATIONAL
PLC.	2,458,899	RMB ordinary shares	2,458,899
Zheng Xiang Jin (鄭香金)	2,300,100	RMB ordinary shares	2,300,100
Sun Xiao Ou (孫小鷗)	1,926,000	RMB ordinary shares	1,926,000
JSAN ANNE MARIE	1,500,000	RMB ordinary shares	1,500,000

Description of connected relationship or concert-party relationship among the above shareholders

Mr. Zhang En Rong is a controlling shareholder and de facto controller of the Company. Mr. Zhang En Rong is the father of Mr. Zhang Yun San. The Company has no further information as to whether the other shareholders have connected relationships or are acting in concert.

Description of the top ten shareholders	Not applicable
participating in margin trading business

Whether the top ten ordinary shareholders and the top ten ordinary shareholders not subject to lock-up made the repurchase transactions during the reporting period

• Yes ✓ No

The top ten ordinary shareholders and the top ten ordinary shareholders not subject to lock-up did not undertake any repurchase transaction during the reporting period.

2. Total number of preferred shareholders and shareholdings of top ten preferred shareholders

□ Applicable ✓ Not applicable

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