I. Company Operating Conditions
In 2025, Shandong Molong Petroleum Machinery Co., Ltd. (hereinafter referred to as "the Company") actively expanded its sales market, resulting in a substantial increase in product orders and production volume compared to the previous year. Notably, the Company's overseas strategy led to a revenue increase of approximately 50% in foreign markets. The capacity utilization rate improved further, and the gross profit margin significantly increased, enhancing profitability. The Company continued to refine lean management measures, strengthen cost control, and achieve internal cost reduction and efficiency enhancement, leading to a substantial increase in operational performance and a turnaround from loss to profit. By the end of the reporting period, the Company's total assets were approximately 2.682 billion yuan, an increase of 10.82% from the beginning of the year; the net assets attributable to shareholders of the listed company were approximately 498 million yuan, an increase of 1.14%. During the reporting period, the Company achieved operating revenue of approximately 1.762 billion yuan, a year-on-year increase of 29.88%; the net profit attributable to shareholders of the listed company was 5.1556 million yuan, a year-on-year increase of 111.80%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was -27.6225 million yuan, a year-on-year increase of 91.13%.
II. Daily Work of the Board of Directors
In 2025, the Company continuously improved its corporate governance structure and internal control systems in accordance with the requirements of the Company Law, Securities Law, Corporate Governance Standards for Listed Companies, Shenzhen Stock Exchange Listing Rules, Hong Kong Stock Exchange Listing Rules, and relevant regulations of the China Securities Regulatory Commission. The Board actively engaged in investor relations management to further enhance corporate governance standards and promote standardized operations.
(1) Operation of the Board of Directors
During the reporting period, the Company held a total of 13 board meetings, including 4 regular meetings and 9 temporary meetings. A total of 36 proposals were reviewed, including regular reports, debt restructuring, executive appointments, and related party transactions. All directors were able to perform their duties in accordance with laws, regulations, and the provisions of the Corporate Governance Guidelines, Board Meeting Rules, and Independent Director Work System, attending board and shareholder meetings diligently and participating in training to learn relevant laws and regulations, fulfilling their responsibilities with integrity, diligence, and accountability. The Board's four specialized committees—Audit, Nomination, Remuneration and Assessment, and Strategy—held meetings during the reporting period, providing scientific and professional advice for the Board's decision-making.
(2) Execution of Shareholder Meeting Resolutions
In 2025, the Company convened the 2024 Annual General Meeting and two temporary shareholder meetings. The Board strictly adhered to the provisions and requirements of the Articles of Association and Board Meeting Rules, actively implementing and executing the proposals approved by the shareholder meetings, effectively safeguarding the legitimate rights and interests of the Company and all shareholders, and ensuring that shareholders could exercise their rights in accordance with the law, promoting the Company's long-term, stable, and sustainable development.