Movement Alert|SHANDONG MOLONG Falls 8.48% in Regular Trading, Second Deep-Discount H-Share Placement in Two Months Pressures Stock

Market Focus
09/28

On September 28, SHANDONG MOLONG fell 8.48% in regular trading, trading at HK$3.61/share, with turnover of HK$83.91 million. The decline was triggered by the company's announcement of a new discounted H-share placement, its second such offering within two months.

On September 24, the company disclosed a placement agreement with China Merchants Securities (Hong Kong) to issue up to 33,615,600 new H-shares at HK$3.50 each, representing a discount of approximately 16.17% to the September 23 closing price of HK$4.175, and roughly 19.91% below the five-day average price of HK$4.37. The placement shares account for about 11.93% of existing H-shares and 4.08% of total issued shares, with estimated net proceeds of approximately HK$115 million.

Notably, the company had just completed a prior placement of 25,678,400 H-shares on July 29 at HK$4.58 per share, raising approximately HK$115.68 million. The two placements combined have raised over HK$230 million within two months, primarily earmarked for loan repayment and raw material procurement. The frequency and depth of discount have heightened market concerns over equity dilution and the company's liquidity position, particularly given that half-year results showed revenue growth of 57.10% but net profit declined 65.38% year-over-year to just RMB 4.21 million.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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