Shandong Molong Petroleum Machinery : ANNOUNCEMENT ON PART OF THE SHARES HELD BY A SHAREHOLDER BEI...

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)

INSIDE INFORMATION

ANNOUNCEMENT ON PART OF THE SHARES HELD BY

A SHAREHOLDER BEING JUDICIALLY FROZEN

This announcement is made by Shandong Molong Petroleum Machinery Company Limited (the "Company") pursuant to 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The Company has, through a recent enquiry on the system of the Shenzhen Branch of China Securities Depository and Clearing Company Limited, noticed that part of the shares of the Company (the "Shares") held by the single largest shareholder of the Company, Mr. Zhang Enrong, have been judicially frozen. The details of which are as follows:

A. Basic information in relation to the freezing of Shares

		Controlling
		shareholder
		or single			% of total
Name of		largest	Numbe	% of	issued			Applica	Reason
	shareholder	r of	share	Date	Expiry
holder of		Shares	nt of	for
	and parties	Shares	capital of	commenced	Date
Shares		held	freezing	freezing
	acting in	frozen	the
		concert			Company
		with it or
		not
								Middle
								People's
Zhang			15					Court of
	Yes	6.37%	1.88%	2020-10-21	2023-10-20	Weifang	Unknown
Enrong		million
						City,
								Shandong
								Province
	Total	15	6.37%	1.88%	-	-	-	-
	million

B. Information on the Shares frozen held by the aforementioned shareholder (cumulative)

As at the date of this announcement, information on the judicially frozen Shares held by Mr. Zhang Enrong (cumulative) is set out as follows:

Name of holder	Number of	Shareholding	Number of	% of Shares	% of total issued
Shares frozen	Share capital of
of Shares	Shares held	proportion	held
(cumulative)	the Company
Zhang Enrong	235,617,000	29.53%	15,000,000	6.37%	1.88%
Total	235,617,000	29.53%	15 ,000,000	6.37%	1.88%

C. Other information

1. Upon enquiry, as at the date of this announcement, Mr. Zhang Enrong has not received any written litigation notice or document issued by the Middle People's Court of Weifang City, Shandong Province;
2. On 28 September 2020, Mr. Zhang Enrong entered into a voting rights nomination agreement with Shandong Shouguang Jinxin Investment Development Holdings Group Limited* ("Shouguang Jinxin", 山東壽光金鑫投資發展控股集團有限公司), pursuant to which Mr. Zhang Enrong nominated Shouguang Jinxin to exercise the voting rights in all of the Shares held by him (i.e. 235,617,000 A Shares of the Company (representing approximately 29.53% of the total issued share capital of the Company)). The controlling shareholder of the Company has changed to Shouguang Jinxin, and the ultimate controller has changed to the State-owned Assets Supervision and Administration Bureau of Shouguang City* (壽光市國 有資產監督管理局); and
3. The judicial freezing of part of the Shares held by Mr. Zhang Enrong will not lead to a change in control of the Company, and is not expected to affect the continuous operations of the Company.

The Company will closely monitor the development of the aforementioned, and will update its shareholders and potential investors by way of issuing further announcement(s) in compliance with the Listing Rules and the Securities and Futures Ordinance as and when appropriate.

Shareholders of the Company and potential investors are reminded to exercise caution when dealing in the shares of the Company.

By order of the Board

Shandong Molong Petroleum Machinery Company Limited

Liu Yun Long

Chairman

Shandong, the PRC

23 October 2020

As at the date of this announcement, the board of directors of the Company comprises the executive directors, namely Mr. Liu Yun Long, Mr. Liu Min, Mr. Zhang Yu Zhi 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