On June 14, Songfa Co., Ltd., the listed entity of Hengli Heavy Industries, issued an announcement regarding the approval of its share issuance application by the China Securities Regulatory Commission (CSRC). The announcement stated that the company had recently received the official approval document, which greenlights its application for the issuance of shares to specific investors.
According to previous 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 $1.035 billion). The net proceeds, after deducting issuance expenses, are to be invested in three major projects: the Green Intelligent High-End Shipbuilding Integration Project, the Hengli Shipbuilding (Dalian) Co., Ltd. Green Shipbuilding Section Assembly Support Upgrade Project, and the Berths 3–6 Support Project for the Green High-End Shipbuilding Project, The total investment for these three projects is approximately 13.5 billion yuan (approximately $1.997 billion).
Specifically, the Integrated Green, Smart, and High-End Shipbuilding Project has a total investment of 10.065 billion yuan (approximately $1.489 billion), with 5 billion yuan (approximately $740 million) of raised funds allocated to the project:
The project comprises two sub-projects: the Hengli Shipbuilding Green Intelligent Equipment Manufacturing Project and the supporting facilities for the Hengli Shipbuilding Green High-End Shipbuilding Project. The main scope of work involves constructing onshore intelligent workshops and renovating and expanding other related supporting facilities. This includes establishing onshore production facilities such as a steel yard, a hull assembly workshop (including pre-treatment), a flat section workshop, a curved section workshop, and an advance outfitting workshop, as well as related supporting facilities. The project is scheduled to have a construction period of 24 months.
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.
Since 2026, Hengli Heavy Industries has secured orders for more than 150 new vessels; it currently has a backlog of approximately 330 new vessels, with delivery schedules extending through 2030.
Songfa Co., Ltd. stated that upon the successful implementation of the aforementioned three major fundraising projects, Hengli Heavy Industry will possess the capacity to simultaneously build 10 vessels under 200,000 deadweight tons and 12 vessels over 200,000 deadweight tons—a total of 22 berths—to rapidly fulfill Hengli Heavy Industries’ existing order backlog and meet future market expansion needs.