Revenue and Profit Surge, First-Year Performance Targets Over 50% Achieved! Songfa Share's High-End Shipbuilding "Full Steam Ahead"

On March 9th, Songfa Co., Ltd. (603268), known as the “Number One Private Shipbuilder in China’s A-shares,” disclosed its first annual report after the restructuring, showcasing a solid performance with double-digit growth in both revenue and profit. The company injected core shipbuilding assets from Hengli Heavy Industry through asset restructuring, accurately capturing the high boom cycle of the global shipbuilding industry, and driving operational efficiency and quality through both capacity and technological advancements.

The annual report shows that by 2025, Songfa Co. achieved an operating revenue of 21.639 billion yuan, a year-on-year increase of 274.95%; net profit attributable to shareholders was 2.655 billion yuan, a surge of 1,083.05%. Notably, Hengli Heavy Industry, which was injected during the restructuring, contributed a net profit of 2.579 billion yuan after non-recurring gains in its first year, surpassing half of the 2025–2027 cumulative net profit target of 4.8 billion yuan set in the performance compensation agreement. This impressive start not only significantly reduces future performance pressure but also sparks market imagination about the company’s growth potential.

Additionally, with comprehensive improvements in key financial indicators, the company now meets the conditions for “removing the star and losing the hat,” entering a new cycle of high-quality development with a fresh outlook. Behind this high growth is the full-scale effort in high-end shipbuilding. On the capacity side, the “Ocean Factory” is operating at full capacity, and the “Future Factory” is rapidly releasing production, jointly establishing a solid capacity base of 2.3 million tons of steel processed annually. Modernized shipyards and world-class docks work efficiently in coordination, with over twenty gantry cranes operating simultaneously, pushing China’s shipbuilding efficiency to a new level.

Technological breakthroughs include the successful delivery of the first 306,000 DWT ultra-large oil tanker (VLCC); the commencement of the first batch of 21,000 TEU dual-fuel container ships; the smooth delivery of the first LPG dual-fuel engine; and the simultaneous advancement of multiple large high-end dual-fuel engines. By 2025, the company’s production and delivery capabilities have been fully established, with order intake booming—culminating in the delivery of 115 ships and total contract value exceeding 100 billion yuan—affirming its strong position as a major player in the global shipbuilding market. According to Clarksons and the International Shipbuilding Network, Hengli Heavy Industry ranked second in China and second globally in new order volume by deadweight tonnage in 2025.

Entering 2026, the company’s momentum continues to strengthen. Four VLCCs were launched on the same day, and six bulk carriers were launched shortly after, setting new global records for rapid, large-scale production within just three days, indicating that the company’s capacity has reached a world-leading level. Order performance is even more impressive: in just over two months this year, the company secured over 75 new ship orders, including 44 VLCCs, 14 oil tankers, 8+2 container ships, 7+2 Cape-size bulk carriers, and 2 VLACs, with a total contract value of up to approximately $9.3 billion. Particularly in the VLCC market, the company performed outstandingly, capturing over 80% of global orders in 2026, far ahead of South Korean competitors, with all orders from well-known international shipowners such as Seatankers, Dynacom, and EPS. This strong start not only secured a “good beginning” in the first quarter but also laid a solid foundation for continued order growth and record highs throughout the year.

“Either do nothing, or do it best!” To seize the best market window in nearly a decade for shipbuilding, the company announced a private placement plan in January, aiming to invest 13.5 billion yuan to expand capacity. With the smooth progress of expansion projects and continuous growth in new orders, the company is rapidly moving toward becoming “the largest single-plant green shipbuilding base in the world, with the most modern facilities and the most complete supporting systems,” and will fully develop independent production capabilities for all series of dual-fuel engines, including LNG, LPG, methanol, and ammonia, along with the entire industry chain. From an emerging industry player to a major participant in the global shipbuilding market, Hengli Heavy Industry is working at full throttle to write a new chapter of high-quality development for China’s shipbuilding industry during the 14th Five-Year Plan period.