Hengli Heavy Industry’s reverse takeover of Guangdong Songfa Ceramics has revitalized the formerly struggling Shanghai-listed company, transforming it into a profitable and fast-growing shipbuilder amid surging global demand and strong state backing.
Financial Turnaround Following Takeover
Following the reverse takeover completed in August 2025, Songfa reported a 237% year-on-year rise in revenue to ¥11.8bn ($1.7bn) and a 1,614% jump in net profit to ¥1.3bn for the January–September period, according to a stock exchange filing.
In comparison, Hengli Heavy Industry posted ¥11.7bn in revenue and ¥1.4bn in net profit during the same timeframe suggesting that without Hengli’s consolidation, Songfa’s financials would have remained in the red.
Order Surge and Production Expansion
The shipbuilding sector’s continued momentum has strongly benefited Hengli. The company has seen rapid growth in newbuilding orders and delivery volumes, fueling a sharp improvement in its financial results.
On October 27, Hengli announced contracts with Greek shipowner Efnav for six 82,000 dwt bulk carriers, each estimated by brokers at around $35 million. This deal followed an earlier batch of 16 vessel orders, including 13 very large crude carriers (VLCCs), two 181,000 dwt bulkers, and one 95,500 dwt bulker.
As of October 25, Hengli had over 100 vessels under construction, with deliveries scheduled through 2029.
Strong Government Support and Policy Tailwinds
Government support continues to boost Hengli’s performance. On October 24, the shipbuilder received a ¥60m subsidy, adding to the ¥740m in grants secured between June and August 2025.
At trade discussions held in Kuala Lumpur from October 24–26, Chinese and US officials reportedly reached a basic consensus on export controls, Section 301 measures, and tariff suspensions. Analysts interpreted the dialogue as a sign of easing trade tensions potentially favorable for China’s maritime and shipbuilding sectors.
Market Outlook
Analyst Yan Hairuo of Shenwan Hongyuan noted that any reduction or removal of port fees could further stimulate shipbuilding activity, raising newbuilding prices and driving additional orders to Chinese yards.
With booming order books, sustained government support, and a more favorable trade environment, Hengli Songfa is now positioned as a major player in China’s next wave of shipbuilding growth.
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Source: Hapag-Llyod
