On May 22, Songfa Co., Ltd., the listed entity of Hengli Heavy Industries, announced that it had received the “Exchange Review Opinion on the Private Placement of Shares by Guangdong Songfa Ceramics Co., Ltd.” issued by the Shanghai Stock Exchange (SSE) on May 22, 2026: Songfa Co., Ltd.’s application for a private placement of shares meets the issuance criteria, listing requirements, and information disclosure requirements. The SSE will submit the application documents to the China Securities Regulatory Commission (CSRC) for registration upon receipt.
Songfa Co., Ltd. noted that the private placement of shares to specific investors is subject to the CSRC approval and cannot be implemented until such approval is granted; there remains uncertainty regarding whether and when the CSRC will grant its approval.
According to reports, Songfa Co., Ltd. plans to issue A-shares to no more than 35 specific investors, raising a total of no more than 7 billion yuan (approximately $1.032 billion). The net proceeds, after deducting issuance expenses, will be invested in three major projects: the Integrated Green and Smart High-End Shipbuilding Project; the Supporting Upgrade Project for Curved Hull Block at Hengli Shipbuilding (Dalian) Co., Ltd.; and the Supporting Project for Berths 3–6 of the Green High-End Shipbuilding Project:
This integrated project for manufacturing green, intelligent and high-end vessels involves the construction of production facilities covering steel pretreatment, steel cutting, assembly and welding, block pre-outfitting, block painting and hull erection, with finished ships as end products. Supporting facilities include steel storage yards for various marine steel plates and block storage yards for curved hull blocks manufactured in production processes. The project basically covers all core shipbuilding procedures.
This hull block supporting project centers on constructing production facilities for assembly welding, block pre-outfitting and block painting, delivering large ship hull blocks as finished products, which serve as key prefabricated components prior to hull erection. A supporting block storage yard will be built to store completed hull blocks from production.
The wharf project primarily focuses on building Hengli Heavy Industries’ wharf outfitting capabilities, covering production processes such as wharf outfitting and painting, which constitute the final critical step in the shipbuilding process.
As of March 31, 2026, Hengli Heavy Industries had a backlog of 284 vessels with a total order value of $27.513 billion; in April, the company announced it had secured orders for 18 new vessels. Excluding the new vessel projects officially announced in May, Hengli Heavy Industries currently has a backlog exceeding 300 vessels.
Currently, Hengli Heavy Industries’ production capacity is nearing full utilization. Key production facilities, including core slipways, block workshops, final assembly yards, and outfitting workshops, are operating at full capacity on a continuous basis, with production schedules for core slipways already booked for the next 3–4 years.
Songfa Co., Ltd. stated that once the three major fundraising projects are implemented, its production capacity will be further expanded. At that time, Hengli Heavy Industries will have the capacity to simultaneously construct 10 vessels under 200,000 deadweight tons and 12 vessels over 200,000 deadweight tons, for a total of 22 slots.