On August 15, *ST Songfa announced that its subsidiary, Hengli Shipbuilding (Dalian) Co., Ltd., had recently signed two framework contracts for the purchase of shipbuilding steel plates, with an estimated contract value of RMB 3.371 billion (approximately US$469 million).
Specifically, Hengli Shipbuilding (Dalian) has signed and entered into two raw material procurement framework contracts with Shenyang Angang International Trade Co., Ltd. and Shenyang Baosteel Northeast Trade Co., Ltd. The subject matter of the contracts is shipbuilding steel plates, with an estimated total value of approximately RMB 3.371 billion.
*ST Songfa stated that the contract will not have a significant impact on the company’s total assets, net assets, or net profit for the current year, and will not affect the company’s business independence. The contract signed this time is for daily operations and does not require review by the company’s board of directors or shareholders’ meeting.
Previously on August 12, *ST Songfa issued a capital increase announcement, intending to use the raised funds to increase the capital of its wholly-owned subsidiary Hengli Heavy Industries by RMB 3.932 billion, and to increase the capital of its wholly-owned subsidiary Hengli Shipbuilding by RMB 3.5 billion through its wholly-owned subsidiary Hengli Heavy Industries to implement the fundraising and investment projects.
