On March 9, Songfa Co., Ltd. (603268), known as the “first private shipbuilding company in China” on the A-share market, released its first annual report after restructuring, showing a strong performance with both revenue and profit soaring.
Songfa Group injected Hengli Heavy Industries’ core shipbuilding assets through asset restructuring, accurately grasped the high prosperity cycle of the global shipbuilding industry, and achieved a leapfrog improvement in operational efficiency through the dual drive of production capacity and technology.
According to the annual report, in 2025, Songfa Co., Ltd. achieved operating revenue of RMB 21.639 billion, a year-on-year surge of 274.95%; net profit attributable to the parent company was RMB 2.655 billion, a year-on-year surge of 1083.05%; Hengli Heavy Industries, which was injected through restructuring, contributed RMB 2.579 billion in net profit after deducting non-recurring items in its first year, directly fulfilling more than half of the commitment target of RMB 4.8 billion in cumulative net profit after deducting non-recurring items from 2025 to 2027 in the “Performance Compensation Agreement” at the time of restructuring.
According to the annual report, in 2025, Songfa Co., Ltd. achieved operating revenue of RMB 21.639 billion (approximately US$3.144 billion), a year-on-year surge of 274.95%; net profit attributable to the parent company was RMB 2.655 billion (approximately US$386 million), a year-on-year surge of 1083.05%; Hengli Heavy Industries, which was injected through restructuring, contributed RMB 2.579 billion (approximately US$375 million) in net profit after deducting non-recurring items in its first year, directly fulfilling more than half of the commitment target of RMB 4.8 billion in cumulative net profit after deducting non-recurring items from 2025 to 2027 in the “Performance Compensation Agreement” at the time of restructuring.
Songfa Co., Ltd. stated that Hengli Heavy Industries’ better-than-expected start has not only significantly reduced performance-based pressure over the next two years but also further expanded market expectations regarding its growth potential. Additionally, with comprehensive improvements across core financial indicators, Songfa Co., Ltd. has met the criteria for delisting its “*” symbol and will soon embark on a new cycle of high-quality development with a renewed outlook.
Songfa Co., Ltd. noted that the robust growth in performance stems from the comprehensive advancement of its high-end shipbuilding operations. Currently, Hengli Heavy Industries’ “Ocean Factory” and “Future Factory” are operating at full capacity, with over twenty gantry cranes working in tandem to achieve an annual steel processing capacity of 2.3 million tons. Concurrently, Hengli Heavy Industries has successfully delivered its first 306,000 DWT VLCC; commenced concentrated construction of its first batch of 21,000 TEU dual-fuel container ships; delivered its inaugural LPG dual-fuel engine; and is simultaneously advancing multiple types of large-scale, high-end dual-fuel engines.
By 2025, Hengli Heavy Industries had fully established its capabilities in rhythmic production and batch delivery. It concluded the year with an impressive performance of 115 vessels and a total order value exceeding RMB 100 billion, demonstrating its formidable strength as a major player in the global shipbuilding market.
According to data from shipping agency Veson Nautical, Hengli Heavy Industries ranked first among China’s top ten shipyards from February 2025 to February 2026, securing 174 vessels valued at approximately $15.954 billion. During the statistical period, Hengli Heavy Industries primarily secured orders for VLCCs, accounting for 31% of its total orders. LR2 product tankers ranked second at 15%, followed by Post-Panamax container ships at 12%.
Entering 2026, Hengli Heavy Industries continues to gain momentum in its development. With four VLCCs launched and six bulk carriers rolled out on the same day, the company twice broke the global record for rhythmic production within just three days, marking its large-scale shipbuilding capabilities as world-leading.
Regarding new ship orders, as of March 5, Hengli Heavy Industries has secured 75+4 new vessels for 2026. Its orderbook includes 44 VLCCs, 14 tankers, 8+2 container ships, 7+2 Capesize bulk carriers and 2 VLACs. With a total contract value of approximately $9.3 billion, it has become the shipyard with the highest number of new ship orders secured so far this year.
Particularly in the VLCC single-type market, Hengli Heavy Industries has secured over 80% of new ship orders for 2026, surpassing South Korean shipyards. All orders come from internationally renowned shipowners such as Seatankers, Dynacom and EPS.
“Either don’t do it, or do it to the best!” To seize the most favorable market window for the shipbuilding industry in the past decade, Songfa Co., Ltd. disclosed a private placement plan in January, planning to invest RMB 13.5 billion in capacity expansion.
With the smooth progress of expansion projects and the steady growth of new orders, Songfa Co., Ltd. is accelerating its advancement toward the goal of becoming “the world’s largest single-site, most modern, and most comprehensively equipped green shipbuilding base.” The company will achieve full-scale independent production capabilities for the entire range of dual-fuel engines—including LNG, LPG, methanol, and ammonia—along with the entire industrial chain.