On January 14, Hengli Heavy Industries’ listed entity *ST Songfa announced a “2026 Pre-Plan for Issuing Shares to Specific Parties.” According to the plan, the company intends to invest 13.5 billion yuan (approximately US$1.937 billion) in three shipbuilding capacity expansion projects. Of this amount, 7 billion yuan (approximately US$1.004 billion) is to be raised through a private placement of A-shares to specific investors.
According to the plan, the 13.5 billion yuan will be used for: the integrated green intelligent high-end shipbuilding project, the green shipbuilding supporting upgrade project for curved hull block manufacturing of Hengli Shipbuilding (Dalian) Co., Ltd., and the supporting Berths 3-6 project for the green high-end shipbuilding project. The investment amounts for the three projects are approximately 10.065 billion yuan, 2.126 billion yuan, and 1.318 billion yuan, respectively, with planned investments of 5 billion yuan, 1.5 billion yuan, and 500 million yuan from the raised funds, respectively, as follows:
Currently, relying on its core competitive advantages such as an international R&D team, leading domestic shipbuilding infrastructure, continuously optimized shipbuilding technology, and independent production capabilities of marine engines, *ST Songfa has become a major player in the global shipbuilding market, with its order backlog continuing to climb and ranking among the top in the world.
*ST Songfa noted that the construction and implementation of the Green Intelligent High-End Shipbuilding Integration Project will significantly enhance its ability to fulfill existing orders, ensure timely and high-quality delivery of current contracts, strengthen its order-taking capacity, and guarantee long-term stable growth in performance. This initiative is a practical necessity for leading the trend toward intelligent shipbuilding and establishing a digital smart shipbuilding base.
The green shipbuilding supporting upgrade project for curved hull block manufacturing of Hengli Shipbuilding (Dalian) Co., Ltd. is a key component of the Hengli Heavy Industry Industrial Park. Its core construction includes a curved block workshop and supporting outfitting workshop. This project will further enhance the company’s existing block supply capacity, improve assembly line efficiency, elevate the level of parallel construction for multiple vessels, achieve quality and efficiency gains through process optimization, and consolidate the company’s core competitive advantages and market position.
Additionally, the construction and implementation of the supporting upgrade project for curved hull block manufacturing line aims to specifically augment production capacity in intermediate processes such as curved block fabrication during shipbuilding. This initiative seeks to refine the production chain, achieve seamless integration across all production stages, enhance overall construction efficiency, shorten shipbuilding cycles, and improve both delivery capacity and efficiency.
The primary construction components of the supporting Berths 3-6 Project for the Green High-End Shipbuilding Project include four outfitting quays capable of accommodating vessels ranging from 100,000 to 400,000 DWT. This facility will primarily serve the shipbuilding industry support zone on the southern shore of Changxing Island in Dalian Port. Upon completion, the project will further enhance the port area’s infrastructure, promote the development of shipbuilding and offshore engineering industry clusters, and align with policy development plans.
*ST Songfa also stated that as the company secures more orders for high-end vessel types such as VLCCs and ultra-large container ships, higher demands are placed on the tonnage capacity and berthing capabilities of its outfitting quays. Its existing outfitting capacity and berth tonnage are no longer sufficient to meet the needs of current orders and the industry trend toward larger mainstream vessel designs.
Therefore, the construction and implementation of the supporting Berths 3-6 Project for the green high-end shipbuilding initiative will further enhance supporting production facilities, address deficiencies in wharf outfitting capabilities, and accommodate the requirements for constructing large vessels. This will lay a solid foundation for the company to deliver its existing orders with high quality and efficiency, while further expanding its high-value-added large vessel business.
*ST Songfa believes that the projects funded by this capital raising align with relevant national industrial policies and the company’s overall development strategy. They will help the company seize market opportunities, expand its business scale, achieve industrial upgrading and strategic expansion, further enhance its core competitiveness and sustainable development capabilities, and demonstrate promising market prospects and economic benefits. Upon completion of these projects, *ST Songfa’s overall competitiveness will be further improved, meeting its long-term development needs and the interests of all shareholders.
It is worth noting that the aforementioned fundraising project marks *ST Songfa’s second fundraising initiative in several months. The company’s previous fundraising round secured 4 billion yuan (approximately US$574 million), earmarked for two major projects: the Hengli Shipbuilding Green High-End Equipment Manufacturing Project and the Hengli Heavy Industry International Ship R&D Design Center Project (Phase I). These projects received 3.5 billion yuan and 500 million yuan in raised funds, respectively.
In August 2025, *ST Songfa increased the capital of its wholly-owned subsidiary Hengli Heavy Industries with the net proceeds from its previous fundraising (approximately 3.932 billion yuan). Subsequently, through Hengli Heavy Industries, it used the raised funds to inject 3.5 billion yuan into its wholly-owned sub-subsidiary Hengli Shipbuilding to implement the fundraising investment project.