Songfa Shares' removal of the delisting warning marks a strong start to the first quarter; high-speed growth in annual performance is expected.

Recently, Songfa Co., Ltd. (603268), which completed its delisting from the “star” status on April 20, has released its Q1 2026 report: achieving operating revenue of 8.89B yuan, with net profit attributable to the shareholders of the listed company of 1.09B yuan, both showing significant year-on-year growth. This is the first regular report after delisting, and the strong performance along with continuously high shipbuilding orders demonstrate the company’s stable operating trend.

While financial data is steadily growing, the company is also making comprehensive efforts in order acquisition, production delivery, and capacity expansion, making high-speed growth in annual performance expected.

The impressive order intake across multiple types—“oil, gas, container, and bulk”—set a new record for the same period in history. In the first quarter, the company signed a total of 108 new shipbuilding projects. Among them, 76 oil tankers (including 54 VLCCs, 18 Suezmax, and 4 LRII product oil tankers), 12 container ships, 16 bulk carriers, and 4 refrigerated ships. The “oil, gas, container, and bulk” sectors are advancing simultaneously, with a diversified and high-end order structure, fully reflecting global shipowners’ high recognition of Hengli Heavy Industry’s construction capabilities. More notably, the company’s order volume in the first quarter has nearly reached the total of 115 ships ordered in all of 2025, with production plans scheduled through 2030. Greek major shipowners Dynacom and CAPITAL have on-hands and ongoing orders reaching 43 and 30 ships respectively, and the continued expansion by shipping giants fully confirms Hengli Heavy Industry’s excellent strength in product quality, delivery cycle, and after-sales service. It also marks the ongoing enhancement of Chinese shipbuilding companies’ competitiveness in the international high-end market.

The core advantages of mass production and paced delivery are becoming prominent, and shipbuilding capacity has reached a world-leading level. In January this year, the company’s No. 1 dock successfully launched four 306k DWT VLCCs on the same day, and No. 3 dock launched six 82k DWT bulk carriers simultaneously; on April 22, just three months later, No. 1 dock again completed the launch of 2 VLCCs and 3 bulk carriers simultaneously, demonstrating Hengli Heavy Industry’s world-leading ability in batch, paced, and scaled shipbuilding. By the end of Q1, the company had successfully delivered 14 ships, with an average of less than 10 days per ship, marking continuous optimization of production organization and quality management systems.

Continued investment is being ramped up, with the third phase capacity expansion project progressing rapidly and about to be put into operation. In recent years, the company’s capacity release has been steady and swift. After the full commissioning of the “Ocean Factory” and “Future Factory,” the company invested another 13.5 billion yuan to initiate three major shipbuilding capacity expansion projects in the third phase. Currently, construction of No. 4 dock is in full swing. According to public reports, on April 10, three ultra-large gantry cranes at No. 4 dock officially started their first day of operation—achieving a 256-meter span across the sea, setting a global record; the 12,700-ton self-weight crane broke the heaviest record worldwide, with multiple core indicators reaching the top of the world. On April 16, the caisson fixed ballast concrete pouring for No. 4 dock was successfully completed. The 10,000-ton “giant” equipment was precisely positioned, and the caisson door was poured four days ahead of schedule, laying a solid foundation for subsequent processes and timely commissioning of the dock. Once all these projects reach full capacity, the company will become one of the largest and most complete shipbuilding bases globally.

Hengli Heavy Industry stated that the performance in the first quarter of 2026 is a concentrated reflection of the company’s adherence to the development path of “high-end, intelligent, and green.” Looking ahead, the company will continue to deepen its presence in the global shipping market, guided by customer needs, driven by technological innovation, and continuously improve shipbuilding quality and service levels. It aims to become the most trusted partner for global shipowners and contribute more to the high-quality development of China’s shipbuilding industry.