Hengli’s reverse takeover revives Songfa as profitable shipbuilder amid order boom
Hengli Heavy Industry’s reverse takeover of Guangdong Songfa Ceramics has turned the once-ailing listed firm into a fast-growing, profitable shipbuilder
Company’s outlook is expected to be further powered by booming new orders, state support and possibly easing US-China trade tensions
HENGLI Heavy Industry’s backdoor listing through Guangdong Songfa Ceramics has transformed the once-struggling Shanghai-listed company into a profitable shipbuilder.
Songfa reported a 237% year-on-year surge in revenue to Yuan11.8bn ($1.7bn) and a 1,614% increase in net profit to Yuan1.3bn for the January-September period, according to an exchange filing.
By comparison, Hengli itself recorded revenue of Yuan11.7bn and net profit of Yuan1.4bn over the same period — suggesting that the listed entity would have been in the red without Hengli’s contribution.
The reverse takeover was completed in August 2025.
According to the filing, the shipbuilding sector continued its strong growth momentum, with Hengli seeing a sharp increase in newbuilding orders and higher construction and delivery volumes, leading to a notable improvement in financial results.
On October 27, Hengli announced contracts with Greek shipowner Efnav for six 82,000 dwt bulk carriers. While the contract value was not disclosed, shipbrokers estimate newbuilding prices for such vessels at around $35m each.
The deal followed a wave of 16 vessel orders earlier in the month — including 13 306,000 dwt very large crude carriers, two 181,000 dwt dry bulkers and one 95,500 dwt bulker.
As of October 25, Hengli said it had begun construction on more than 100 vessels, with deliveries scheduled through to 2029.
Government support has also played a role. On October 24, Hengli received a Yuan60m subsidy, adding to Yuan740m in grants obtained between June and August.
At talks held in Kuala Lumpur from October 24-26, 2025, both sides reached a basic consensus on export controls, Section 301 measures, and the extension of the suspension of reciprocal tariffs, according to Li Chenggang, China’s international trade representative.
Analysts view the meeting as a sign of easing tensions on what some have called the “maritime front” of the US-China trade dispute, though no final agreement has been confirmed.
Yan Hairuo, an analyst at Shenwan Hongyuan, noted that if port fees were lowered or removed, newbuilding prices could rise and additional orders may return to Chinese shipyards.
