Against the backdrop of a booming industry cycle and persistently tight global vessel supply, Hengli Heavy Industries has achieved exponential business growth by leveraging its paced production system and synergistic resources across the entire industrial chain; key operational metrics—including new orders and production deliveries—have all reached record highs for the corresponding period.
On August 24, Songfa Co., Ltd., the listed entity of Hengli Heavy Industries, released its “2026 Semi-Annual Report.” During the reporting period, the company generated operating revenue of approximately 23.504 billion yuan (approximately $3.495 billion), representing a year-over-year increase of 251.87% (from approximately 6.680 billion yuan); operating profit was approximately 4.344 billion yuan, up 394.90% year-over-year (approximately 878 million yuan); Net income attributable to shareholders of the parent company was approximately 3.609 billion yuan (approximately $537 million), representing a year-over-year increase of approximately 457.67% (from approximately 647 million yuan); net income excluding non-recurring gains and losses was approximately 3.514 billion yuan, surging by 2,935.31% year-over-year (from approximately 116 million yuan), marking a major breakthrough in profitability; Total assets increased to 74.611 billion yuan (approximately $11.095 billion), and the balance sheet structure continued to improve.
Regarding the reasons behind the changes in key financial data and indicators for the first half of 2026, Songfa Co., Ltd. stated that Hengli Heavy Industries possesses world-leading shipbuilding capabilities and has become the core driver of the company’s performance growth. Leveraging Hengli Heavy Industries’ core technologies and efficient production capacity, combined with robust global demand in the shipbuilding market, the company has maintained a robust order backlog and stable deliveries, resulting in significant increases in operating revenue, profits, and net assets.
During the reporting period, Hengli Heavy Industries secured 207 new shipbuilding orders, far exceeding the total of 115 vessels contracted for the entire year of 2025. The order mix was simultaneously optimized, comprising 94 oil tankers, 56 container ships, 49 bulk carriers, and 8 Very Large Ammonia Carriers (VLACs), successfully achieving balanced growth across the full spectrum of “container, bulk, oil, and gas” vessels. This marks the first time Hengli Heavy Industries has included VLACs in its order portfolio and secured bulk orders for them; container ships and oil tankers together account for over 72% of the total, with high-value-added vessel types now firmly establishing themselves as the mainstay of the order book.
Currently, Hengli Heavy Industries has a delivery schedule extending through 2030, with its order backlog consistently ranking among the highest in the industry; notably, it holds the highest number of orders for Very Large Crude Carriers (VLCCs) of any single shipyard worldwide.
During the reporting period, the company moved beyond the traditional “customized single-vessel” model to establish a highly efficient production system characterized by the “simultaneous construction and centralized dry-dock exit” of multiple vessels, ultimately delivering a total of 40 ships.
In terms of production capacity, Hengli Heavy Industries stands as one of the world’s largest and most comprehensively equipped green shipbuilding bases. It boasts an annual steel processing capacity of 3 million tons and operates four ultra-large dry docks alongside world-class slipways, enabling the simultaneous batch construction of high-value-added vessels such as VLCCs and ultra-large container ships. Additionally, the company has an annual production capacity of 180 marine engines—covering the full spectrum of low- and zero-carbon dual-fuel engines (LNG, LPG, methanol, and ammonia)—making it one of China’s largest single-site marine engine manufacturers.
Thanks to its exceptional order-taking capacity, Hengli Heavy Industries’ existing production lines are now operating at full capacity. To accelerate the fulfillment of its current order backlog and ensure sufficient flexibility for future orders, the three major capacity expansion projects that Songfa Co., Ltd. proactively launched at the beginning of the year are proceeding in an orderly manner. The nearly 7 billion yuan in funds raised for these projects has been fully injected into the relevant subsidiaries through tiered capital increases, raising the registered capital of Hengli Heavy Industries, Hengli Shipbuilding, and Hengli Outfitting to 13 billion yuan, 19 billion yuan, and 100 million yuan, respectively.
The “impressive” performance of Hengli Heavy Industries in the first half of 2026 is inextricably linked to the continued robust upward cycle of the global shipbuilding industry. Data from Clarkson shows that global new shipbuilding orders totaled 42.95 million compensated gross tons (CGT) for the period, a year-on-year increase of 66%; in terms of deadweight tonnage (DWT), orders reached 137.473 million DWT—a massive 125.7% year-on-year surge and a record high for the period. Meanwhile, the newbuilding price index closed at 185.15 points, marking three consecutive months of month-on-month recovery and consolidating a trend of simultaneous growth in both volume and price.
At the same time, China’s shipbuilding industry has bucked the global trend and taken the lead in global competition thanks to its comprehensive industrial chain, early-mover advantage in green technology, and efficient delivery capabilities. According to statistics on the shipbuilding industry for the first half of the year released by the Ministry of Industry and Information Technology, China’s three core indicators—shipbuilding completions, new orders, and order backlog—accounted for 62.2%, 82.3%, and 71.2% of the global total, respectively. This means that nearly 8 out of every 10 new ship orders worldwide are being built in China, and leading shipbuilders generally have production schedules booked through 2030.
Hengli Heavy Industries stated that in the future, it will continue to leverage its unique strengths to improve shipbuilding quality, expand its order volume, and further enhance its position in the industry, thereby providing support for China’s transition from a “major shipbuilding nation” to a “leading shipbuilding power.”