Shandong Molong Petroleum Machinery Company Limited (00568) announced that, in order to revitalize its existing assets, enhance their utilization value, improve asset liquidity, and broaden the company's financing channels, it intends to act as a lessee in a sale-leaseback financing transaction with Guangxi Leasing Co., Ltd.

The financing amount for this transaction will not exceed RMB 50 million, with a term of up to 36 months, using certain production equipment owned by the company as the leased assets.

Specific details such as the lease interest rate, rental payments, and payment methods will be determined based on the final agreement.

On January 23, 2026, the company's Eighth Board of Directors' 11th interim meeting reviewed and approved the "Proposal on Carrying Out Financial Leasing Business" with a vote of 9 in favor, 0 against, and 0 abstentions.

This financing lease operation falls within the authority of the company's Board of Directors and does not require submission to the shareholders' meeting for deliberation.

The counterparty in this transaction, Guangxi Leasing, has no affiliation with the company, its controlling shareholders, actual controllers, shareholders holding more than 5% of shares, directors, or senior management.

Therefore, this transaction does not constitute a connected transaction nor a major asset reorganization as defined by the "Administrative Measures for Major Asset Reorganization of Listed Companies."

Conducting this sale-leaseback financing business is beneficial for revitalizing the company's assets, improving their usage value, enhancing liquidity, expanding financing avenues, and providing long-term capital support for the company's operations.

This transaction will not affect the normal use of the underlying assets, will not significantly impact the company's production and operations, does not harm the interests of the company and all shareholders, does not affect the company's operational independence, and the buyback risks are controllable.