Shandong Molong Petroleum Machinery : INCREASE IN SHAREHOLDING BY SHAREHOLDERS

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

(Stock Code: 568)

INCREASE IN SHAREHOLDING BY SHAREHOLDERS

The board of directors (the "Board") of Shandong Molong Petroleum Machinery Company Limited* (the "Company") was informed by Shandong Zhimeng Holdings Co., Ltd.* (山東智夢 控股有限公司, "Zhimeng Holdings") and Shouguang Panjin Property Co., Ltd.* (壽光市磐金 置業有限公司, "Panjin Property") that during the period from 9 March 2021 to 19 March 2021, Zhimeng Holdings has acquired 37,637,600 H Shares and 2,254,910 A Shares of the Company on market for an average price of HK$2.14 per H Share and RMB3.73 per A Share, respectively (the "Acquisition"). Based on the information provided by Zhimeng Holdings and Panjin Property, they are parties acting in concert in respect of the shares of the Company (the "Shares").

Immediately after the Acquisition, Zhimeng Holdings and Panjin Property collectively hold 79,784,910 Shares (representing approximately 10.00% of the total issued share capital of the Company as at the date of this announcement). Details of the shareholdings of Zhimeng Holdings and Panjin Property are set out as follows:

Shareholders

Number of H Shares held

% of total issued share capitalNumber of A Shares held

% of total issued share capitalTotal Number of Shares held

% of total issued share capital

Zhimeng Holdings

Panjin Property

60,830,000 16,000,000

• 7.62% 2,754,910

• 2.01% 200,000

0.35% 0.02%

• 23,584,910 7.97%

• 16,200,000 2.03%

Total

76,830,000

9.63%

2,954,910

0.37%

79,784,910

10.00%

The Board was informed by Zhimeng Holdings and Panjin Property that the Acquisition andincrease in shareholding in the Company were actions demonstrating their optimistism regarding the long-term prospects of the Company and with reference to their own assessment of the investment value of the Company.

By order of the Board

Shandong Molong Petroleum Machinery Company Limited

Yang Yunlong

Chairman

Shandong, PRC

22 March 2021

As at the date of this announcement, the Board comprises the executive Directors, namely Mr. Yang Yun Long, Mr. Yuan Rui, Mr. Liu Min and Mr. Li Zhi Xin; the non-executive Directors, namely Mr. Yao You Ling and Mr. Wang Quan Hong; and the independent non-executive Directors, namely Mr. Tang Qing Bin, Mr. Song Zhi Wang and Mr. Cai Zhong Jie.

* For identification purposes only