Shandong Molong Petroleum Machinery (HKG:0568, SHE:002490) agreed to sell Shouguang Maolong New Materials Technology Development for a little over 203.0 million yuan.

Shougang Maolong is primarily engaged in producing and selling castings and forgings. It has been incurring losses since 2022.

The group expects a net gain of 86 million yuan from the disposal. It plans to use the disposal proceeds for working capital, a Monday filing with the Hong Kong Exchange said.

The petroleum machinery manufacturer's shares closed nearly 4% lower on Monday.

Price (HKD): $1.23, Change: $-0.050, Percent Change: -3.91%