On January 30, *ST Songfa, the listed entity of Hengli Heavy Industries, issued an announcement stating that it expects to achieve a net profit attributable to the parent company of RMB 2.4 billion to RMB 2.7 billion (approximately US$345 million to US$388 million) for the full year of 2025, turning a loss into a profit; and expects to generate operating revenue of RMB 20 billion to RMB 22 billion (approximately US$2.876 billion to US$3.164 billion).
According to the announcement, based on preliminary calculations by the finance department, *ST Songfa expects to achieve a total profit of RMB 2.8 billion to RMB 3.1 billion in 2025, a net profit attributable to owners of the parent company of RMB 2.4 billion to RMB 2.7 billion in 2025, and a net profit attributable to owners of the parent company after deducting non-recurring gains and losses of RMB 1.8 billion to RMB 2.1 billion (approximately US$259 million to US$302 million) in 2025.
The company projects annual revenue of RMB 20 billion to RMB 22 billion for 2025, and RMB 15 billion to RMB 17 billion after deducting revenue from businesses unrelated to its main operations and revenue lacking commercial substance. Net assets at the end of 2025 are projected to be RMB 9 billion to RMB 10 billion (approximately US$1.294 billion to US$1.438 billion).
*ST Songfa stated that the primary reason for its projected profit in 2025 is the completion of a major asset restructuring during the reporting period, transforming its core business from traditional ceramic manufacturing to the high-growth shipbuilding industry. Hengli Heavy Industries possesses world-leading shipbuilding capabilities, with operations spanning independent engine production and shipbuilding. It has achieved comprehensive coverage of dual-fuel technologies including LNG and methanol, establishing a complete industrial chain from core components to finished vessels.
Following the completion of this restructuring, the injected assets have become the core driver of the company’s performance growth. Leveraging Hengli Heavy Industries’ strong profitability and bolstered by robust global demand in the shipbuilding market, the company maintains a substantial order backlog, significantly enhancing its overall profitability and risk resilience.
Notably, on January 29, *ST Songfa announced a major contract, revealing that its subsidiary Hengli Shipbuilding had recently signed and finalized contracts for the construction of two 306,000 DWT VLCCs. With this latest order, Hengli Heavy Industries has secured 15+2 new vessels this year, including 10 VLCCs, 1 LR2 crude/product tanker, and 4+2 container ships, with a total value exceeding RMB 10 billion.