On August 28, Guangdong Songfa Ceramics released its first periodic report following the completion of a major asset restructuring.
According to the 2025 Semi-Annual Report: In the first half of the year, the group achieved operating revenue of RMB 6,679,789,100 (approximately USD 936,506,400), representing a year-on-year increase of 315.49%; total profit reached RMB 877,723,400 (approximately USD 123,056,800), surging 16,156.55% year-on-year; Net profit attributable to shareholders reached RMB 647.0997 million (approximately USD 90.7234 million), while non-recurring net profit stood at RMB 115.7855 million (approximately USD 16.2331 million). Both results achieved substantial turnaround from losses to profits, marking a fundamental improvement in profitability.
Hengli Heavy Industries achieved an actual net profit of RMB 721.6399 million (approximately USD 101.1739 million) and a non-recurring net profit of RMB 659.2903 million (approximately USD 92.4325 million) in the first half of 2025. Of this amount, net profit from the beginning of the current period to the consolidation date was RMB 522.7908 million (approximately USD 73.2953 million), which was recorded as non-recurring gains and losses in the consolidated financial statements of Guangdong Songfa Ceramics in accordance with regulations.
Compared to the ceramics business expected to be deeply loss-making in 2024, Guangdong Songfa Ceramics’ current impressive performance is the result of a landmark asset restructuring. The company decisively divested its traditional household ceramics manufacturing business and fully integrated Hengli Heavy Industries, a representative of China’s high-end manufacturing capabilities, into the listed company. This cross-border merger and acquisition not only achieved strategic transformation for the company itself but also provided a new paradigm for the capital market to precisely serve the real economy and promote industrial upgrading.
According to the announcement, Guangdong Songfa Ceramics’ substantial performance growth stems primarily from two factors: Firstly, the significantly enhanced profitability of the newly consolidated shipbuilding business following the completion of the 2025 asset restructuring has substantially boosted and bolstered the listed company’s earnings capacity and overall performance. Hengli Heavy Industries’ “Ocean Factory” has been fully put into production, and the production capacity of the “Future Factory” is gradually being released. When completed, it will become the world’s largest single shipbuilding base with the most complete supporting facilities.
On the other hand, driven by multiple factors such as the increasingly prominent problem of ship aging, the continuous tightening of environmental regulations and policies, and the steady growth of global maritime trade volume, the demand in the ship market has grown rapidly and continued to expand.
At the same time, Songfa’s management team has worked collaboratively across all aspects of its operations, including market contracting, production operations, and R&D innovation, to build order-taking capabilities for all ship types, enhance overall process management capabilities, and strengthen its all-round innovation capabilities. These multiple measures have significantly enhanced the company’s overall competitiveness. Currently, the company ranks among the top global large ocean-going ship manufacturers in terms of both backlog and newly signed orders. Production has been scheduled through 2029, solidifying the company’s confidence in continued, stable growth in future performance.
With the “Factory of the Future” project now fully operational, Hengli Heavy Industries will process approximately 2.3 million tons of steel annually, enabling simultaneous construction of various vessel types. Annual production of marine engines will reach around 180 units, covering four types of dual-fuel engines: LNG, LPG, methanol, and ammonia. Hengli Heavy Industries’ annual output value will exceed RMB 70 billion.
Through continuous deepening of high-end, intelligent, green, and international innovation, Hengli Heavy Industries is reshaping the development path of China’s shipbuilding industry and the global competitive landscape. As the “Hengli Power” continues to gather momentum, it not only propels China’s steady advancement toward becoming a leading shipbuilding nation but also injects robust “Chinese momentum” into the global shipping industry’s green and low-carbon transformation.