On July 19, Guangdong Songfa Ceramics Co., Ltd. announced that its subsidiary Hengli Shipbuilding (Dalian) Co., Ltd. received government infrastructure cost-sharing funds totaling 260 million yuan on July 18, 2025, which are asset-related.
According to the announcement, in accordance with the relevant provisions of “Accounting Standards for Business Enterprises No. 16 – Government Grants,” the infrastructure cost-sharing funds received this time qualify as asset-related government subsidies and are recognized as deferred income. The specific accounting treatment and the impact on the company’s 2025 financial performance and assets will be subject to the annual audit results confirmed by the auditing firm.
This marks the second government subsidy received by Hengli Heavy Industry in recent months. A month earlier, on June 18, Songfa announced that Hengli Shipbuilding (Dalian) had received asset-related government subsidies totaling 120 million yuan on June 16. The combined amount of the two subsidies is 380 million yuan.
It is reported that Hengli Heavy Industry’s predecessor, STX Dalian, was once China’s largest foreign-owned shipyard, boasting the largest single shipyard in northern China. In July 2022, to implement the State Council’s decisions on revitalizing idle assets and expanding effective investment, Hengli Group established Hengli Heavy Industry Group, entering the shipbuilding industry across sectors. The company invested 2.11 billion yuan to acquire the long-idle assets of the former STX Dalian, aiming to build a world-class high-end shipbuilding base focused on vessel construction, marine engineering, engines, and precision casting.
In January 2023, Hengli Heavy Industry’s first-phase project, the “Marine Factory,” officially commenced production. In January of this year, the second-phase “Future Factory,” with an investment of nearly 10 billion yuan, was put into operation. The “Future Factory” specializes in high-value-added green vessels and high-end marine equipment manufacturing, including VLCCs, VLGCs, ultra-large container ships, FPSOs, floating offshore wind power units, and drilling platforms. At full capacity, Hengli Heavy Industry will process 2.3 million tons of steel annually, produce 180 marine engines, and achieve an annual output value exceeding 70 billion yuan, becoming the world’s largest single-site shipbuilding base with the most comprehensive supporting facilities. It will also achieve full coverage of LNG, LPG, methanol, and ammonia dual-fuel engines.
In the first half of this year, Hengli Heavy Industry became a wholly-owned subsidiary of the listed company Songfa. Currently, Songfa is raising capital through the capital market to support Hengli Heavy Industry’s strategic development, planning to secure up to 4 billion yuan in funding. The proceeds will primarily invest in two core projects: the “Hengli Shipbuilding (Dalian) Green High-End Equipment Manufacturing Base” and the “International Ship R&D and Design Center (Phase I).” This initiative will significantly enhance production efficiency and technological innovation capabilities, further strengthening the manufacturing capacity for high-value-added vessels and advanced equipment. Leveraging capital market advantages, Songfa is driving Hengli Heavy Industry toward becoming a globally leading intelligent green ship equipment manufacturer.
In 2024, Hengli Heavy Industry ranked fifth globally and fourth in China in new orders. To date, the company has commenced construction on over 60 vessels, with an order backlog of approximately 170 ships scheduled through 2029. Moving forward, Hengli Heavy Industry will continue to deepen its expertise in high-end equipment R&D and manufacturing, leveraging the advantages of its listed platform. Through technological innovation and lean management, it aims to enhance its core competitiveness, injecting new momentum into China’s shipbuilding industry as it advances toward high-end and intelligent development.
