Shandong Molong Petroleum Machinery (00568) and Huarong Agricultural and Vegetable Wholesale Company entered into a debt payment agreement.

Shandong Molong Petroleum Machinery (00568) announced that on December 29, 2025, the company entered into a debt payment agreement with Huarong Agricultural and Vegetable Wholesale Company. The Vegetable Wholesale Company agreed to transfer the land to the company as a way to pay off the debt owed by Huarong Agricultural, amounting to RMB 361 million. The company believes that this payment arrangement will help recover the debt, reduce bad debt risks, improve the company's financial condition, ensure fund safety, and have a relatively positive impact on the group's future financial condition and operating results. In addition, in recent years, the company has been leasing the land (along with the buildings, structures, and machinery and equipment on it) for the group's production operations. The payment arrangement will reduce leasing costs and production expenses, contributing to stable production and operations for the company. As mentioned in the company's announcement dated December 15, 2025, the company is planning to establish a new high-end intelligent processing line for petroleum specialty pipes to enhance processing capacity and improve production efficiency at the factory located on the land. Acquiring the land will meet the company's project construction needs, enhance the industrial chain, and provide a crucial foundation for further market expansion and cost reduction, aiding in the company's later operational improvements and profit enhancement.