New contract signed! A new giant in private shipbuilding secures another 200 million yuan in government subsidies.

On the evening of February 2, Guangdong Songfa Ceramics Co., Ltd. announced that a construction contract for one Capesize bulk carrier has recently been signed and become effective with its subsidiary, Hengli Shipbuilding (Dalian) Co., Ltd.

The announcement indicates that this new vessel was ordered by a well-known European shipowner. In accordance with the agreement between the shipowner and Hengli Shipbuilding, as well as the relevant provisions of the "Regulations on the Temporary Suspension and Exemption of Information Disclosure for Listed Companies," the specific identity of the shipowner is exempted from disclosure. The total contract value for this transaction amounts to approximately US$70–100 million (equivalent to roughly RMB 487–695 million), with payment denominated in U.S. dollars. The new vessel is scheduled for delivery in the third quarter of 2027.

For reference, Clarkson’s data show that the current price of a newbuild Cape-size bulk carrier with a deadweight tonnage of 180,000 to 182,000 tons is approximately US$75 million, unchanged from the same period last year.

The Cape-size bulk carriers built by Hengli Heavy Industry are the core mainstay vessel type in the international dry bulk shipping market, boasting significant economies of scale, robust endurance, and superior economic efficiency. This vessel type features a design that seamlessly integrates route versatility with cargo adaptability, enabling it to efficiently interface with loading and unloading facilities at major global dry bulk ports. It can fully meet the transoceanic trunk-line transportation needs for dry bulk commodities such as iron ore and coal, making it a benchmark vessel type that aligns with the global trend toward larger and greener dry bulk fleets.

Including the latest order, Hengli Heavy Industry has already secured a total of 16+2 new ship orders so far this year, comprising 10 VLCCs, 1 LR2 product oil/crude oil tanker, 1 bulk carrier, and 4+2 6,000-TEU container ships.

Meanwhile, on the same day, Songfa Shares also announced that Hengli Shipbuilding (Dalian) received a total of 200 million RMB in government subsidies related to assets on February 2. The aforementioned subsidy is classified as an asset-related government grant and will be recognized as deferred income.

From June to November last year, Hengli Shipbuilding (Dalian) received six government subsidies in succession, totaling 827 million yuan. On June 4 and June 18 last year, Songfa Shares announced one after the other that Hengli Shipbuilding (Dalian) had received government subsidy funds related to assets amounting to 30 million yuan and 120 million yuan, respectively. Subsequently, on July 19, Songfa Shares disclosed that Hengli Shipbuilding (Dalian) had also received 260 million yuan in government funds allocated for infrastructure expenses. On August 11, Hengli Shipbuilding (Dalian) received a total of 330 million yuan in government subsidies related to assets. On October 24, Hengli Shipbuilding (Dalian) received a total of 60 million yuan in government subsidies related to assets. On November 25, Hengli Shipbuilding (Dalian) received a total of 27 million yuan in government subsidies related to assets.

It is understood that Hengli Heavy Industry’s predecessor, STX Dalian, was once China’s largest foreign-invested shipyard and boasted the largest single shipyard in northern China. In 2022, responding to the nation’s call, Hengli Group established Hengli Heavy Industry Group and spent 2.11 billion yuan to bid for and acquire the assets of the former STX Dalian, which had been idle for ten years, with the aim of fully developing a world-class, high-end shipbuilding base. In January 2023, Hengli Heavy Industry’s Phase I “Ocean Factory” achieved full operational status in just 150 days. This past January, Phase II—the “Future Factory”—was brought into production within five months. In September of this year, the Hengli Heavy Industry Collaborative Innovation and Offshore Engineering Technology Industrial Park broke ground on Changxing Island in Dalian.

Once all projects in the Hengli Heavy Industry series reach full production capacity, the facility will be able to build over 150 ultra-large vessels annually and produce 180 marine engines—including G95 main engines and models below—that support a comprehensive range of dual-fuel systems for LNG, LPG, methanol, and ammonia. This will make it the world’s largest single-site shipbuilding base with the most complete supporting infrastructure.

According to Clarkson’s data, excluding the latest orders, Hengli Heavy Industry currently holds a total of 219 ship orders totaling 35.81 million deadweight tons. Among these, there are 91 bulk carriers, 72 oil tankers, 52 container ships, and 4 LPG carriers, with delivery schedules extending as far as 2029.