On October 24, *ST Songfa announced that its subsidiary, Hengli Shipbuilding (Dalian) Co., Ltd., received government subsidies totaling 60 million yuan (approximately US$8.436 million) related to assets.
The announcement stated that, in accordance with the relevant provisions of “Enterprise Accounting Standard No. 16 – Government Grants”, the above-mentioned grants are considered asset-related government grants and are recognized as deferred income. The specific accounting treatment and the impact on the company’s profit and loss and assets in 2025 will be subject to the results of the annual audit confirmation by the auditing agency.
It is understood that this marks the fourth government subsidy disclosed by Hengli Shipbuilding (Dalian) since June. The total amount of the four subsidies is 770 million yuan (approximately US$108 million). The first three subsidies were disclosed on June 17, July 18, and August 11, respectively, with subsidy amounts of 120 million yuan, 260 million yuan, and 330 million yuan.
Notably, just last week (October 18), *ST Songfa announced that its subsidiary Hengli Shipbuilding (Dalian) plans to invest 2.654 billion yuan (approximately US$373 million) in constructing a green high-end equipment manufacturing support project. Upon completion, the project will achieve an annual steel surface processing capacity of 400,000 tons, facilitating the company’s production scale upgrade and cost optimization while enhancing its market competitiveness.
To date, Hengli Heavy Industries ranks among the world’s leading large ocean-going shipbuilders in both its existing order backlog and newly secured contracts. The company has commenced construction on over 70 vessels, with production schedules extending through 2029.
Upon full completion, the project will generate an annual output value of 150 billion yuan (approximately US$21.09 billion), establishing Dalian as the world’s largest single-site shipbuilding base with the most comprehensive supporting facilities.