On October 28, *ST Songfa released its “2025 Third Quarter Report”. The company achieved a net profit of RMB 1.271 billion (approximately US$179 million) in the first three quarters of 2025. Its core asset, Hengli Heavy Industry, achieved operating revenue of RMB 11.653 billion (approximately US$1.642 billion) and net profit of RMB 1.355 billion (approximately US$191 million) in the first three quarters.
The report disclosed that *ST Songfa achieved total operating revenue of RMB 11.759 billion (approximately US$1.657 billion) in the first three quarters, a year-on-year increase of 237.23%; net profit attributable to the parent company was RMB 1.271 billion (approximately US$179 million), a year-on-year increase of 1614.08%; net profit excluding non-recurring items was RMB 688 million (approximately US$97 million), turning a loss into a profit year-on-year; net cash flow from operating activities was RMB -822 million (approximately US$116 million), compared to RMB -2.127 billion (approximately US$300 million) in the same period last year. During the reporting period, *ST Songfa’s basic earnings per share were RMB 2.74, and the weighted average return on net assets was 30.51%.
Among them, Hengli Heavy Industries, the core asset of *ST Songfa’s restructuring, performed exceptionally well. In the first three quarters, it achieved operating revenue of RMB 11.653 billion (approximately US$1.642 billion), net profit of RMB 1.355 billion (approximately US$191 million), and net profit after deducting non-recurring items of RMB 1.241 billion (approximately US$175 million), exceeding its annual performance commitment of RMB 1.127 billion (approximately US$159 million) one quarter ahead of schedule. According to the “Performance Compensation Agreement”, Hengli Heavy Industries has committed to achieving a cumulative net profit of RMB 4.8 billion (approximately US$676 million) from 2025 to 2027.
The main business of Hengli Heavy Industries covers a wide range of sectors such as independent production of engines and shipbuilding. The company has an annual production capacity of 180 marine engines, realizes full coverage of G95 and below models, and completes the layout of four dual-fuel systems based on traditional fuel and LNG/LPG/methanol/ammonia. In addition, the company’s high-end marine engine assembly project has been selected as one of the national “two-fold” construction projects.
Recently, Hengli Heavy Industries has won the construction contracts of 13 ultra-large tankers (VLCC) and many bulk carriers, which have been recognized by international first-tier shipowners such as Frontline and Dynacom Tankers as well as large domestic shipping enterprises, and the orders for multiple types of vessels, including “container ships, bulk carriers, tankers”, have blossomed comprehensively.
Up to now, Hengli Heavy Industries has started construction of more than 100 ships, with the order backlog up to 2029.Along with the commissioning of “Future Factory” at the beginning of 2025, Hengli Heavy Industries’ world-class green shipbuilding system is maturing, and its production capacity is expected to be released continuously. After reaching full production, Hengli Heavy Industries’ annual steel plate processing capacity will reach 2.3 million tons, and it will become the world’s largest single-unit shipbuilding enterprise with the most complete supporting facilities.