On August 11, Guangdong Songfa Ceramics Co., Ltd. (*ST Songfa) announced that its subsidiary, Hengli Shipbuilding (Dalian) Co., Ltd., received a total of RMB 330 million (approximately US$46 million) in government subsidies related to assets on August 11, 2025.
According to the announcement, this subsidy is an asset-related government grant and is recognized as deferred income. The specific accounting treatment and its impact on the company’s profit and loss and assets in 2025 will be subject to the results of the annual audit confirmed by the auditing agency.
This is the third government subsidy received by Hengli Shipbuilding. The total amount of the three government subsidies is RMB 710 million (approximately US$99 million). The first two subsidies were disclosed on June 17 and July 18, with amounts of RMB 120 million and RMB 260 million, respectively.
It is understood that 2025 is the third year of the establishment of Hengli Heavy Industries. With the completion and commissioning of the “Future Factory” at the beginning of the year, Hengli Heavy Industries has gradually formed a development trend of mass construction and rhythmic delivery of multiple ship sectors including “container ships, bulk carriers and oil tankers”.
During this period, the first 306,000 DWT VLCC independently designed and built by Hengli Heavy Industries was successfully delivered; the first 181,000 DWT bulk carrier was successfully launched, becoming the first bulk carrier of this tonnage class built and launched on the slipway in China. The ship is also the largest tonnage ship that can be built on the slipway in the world.
In Hengli’s “Future Factory”, two world-class docks with a single length of 860 meters have been put into operation one after another; cutting-edge technologies such as automatic welding robots and dynamic automatic printing of steel plates are applied on a large scale. The intelligent production line has realized automated pipeline operations including cutting, welding, grinding, sorting and warehousing. “Large-scale processes” such as the enlargement of segments and grand blocks have been fully implemented.
A month ago, Hengli Heavy Industries announced orders for 10 new ships at once, including 2+2 95,500 DWT bulk carriers, 2+2 LNG dual-fuel Suezmax tankers, and 2 LNG dual-fuel 22,000 TEU container ships.
To date, Hengli Heavy Industries has started construction on more than 70 ships, with orders booked through 2029. Once fully operational, Hengli Heavy Industries will process 2.3 million tons of steel plates annually, becoming the world’s largest and most comprehensive shipbuilding base.