2025 Performance Turns Loss into Profit *ST Songfa Applies for "Hood Removal"

*ST Songfa (603268) turns profitable in 2025, has applied to revoke the delisting risk warning.

On the evening of March 9, *ST Songfa disclosed its 2025 financial report. The company’s total profit, net profit attributable to shareholders, and net profit after non-recurring gains and losses for 2025 reached 3.181 billion yuan, 2.655 billion yuan, and 2.033 billion yuan, respectively. The net assets at the end of 2025 were 9.452 billion yuan. The company has applied to the Shanghai Stock Exchange to revoke the delisting risk warning.

Previously, the company was subject to a delisting risk warning because, for the year 2024, the audited total profit, net profit, and net profit after deducting non-recurring gains and losses were negative, and the operating income after deducting unrelated business income and income without commercial substance was below 300 million yuan.

Based on the performance in 2025, *ST Songfa’s stock no longer meets the criteria for the delisting risk warning, so it has submitted an application to the Shanghai Stock Exchange to revoke the warning. The exchange will decide whether to revoke the warning within 15 trading days after receiving the application, based on actual circumstances. During the review period, the company’s stock will remain trading as usual.

In 2025, *ST Songfa completed a major asset swap and share issuance to acquire 100% equity of Hengli Heavy Industry Group Co., Ltd. (“Hengli Heavy Industry”). After the transaction, the company’s main business shifted from traditional ceramic manufacturing to the high-growth shipbuilding industry. Currently, the company covers key segments such as engine自主 production and shipbuilding, with main products including bulk carriers, oil tankers, container ships, and gas carriers.

Since the business transformation, the stock price has risen significantly. As of the close on March 9, the stock price was 119.42 yuan per share, with a total market value of 115.93 billion yuan.

*ST Songfa mentioned in its 2025 annual report that Hengli Heavy Industry and its subsidiaries are included in the company’s consolidated financial statements, leading to an effective improvement in asset quality. Hengli Heavy Industry possesses globally leading shipbuilding capabilities and has become the core driver of the company’s performance growth. Relying on Hengli Heavy Industry’s core technology and efficient production capacity, combined with strong global demand in the shipbuilding market, the company has sufficient orders on hand, stable deliveries, and significant increases in revenue, profits, and net assets.

Recently, the company’s shipbuilding business has made new progress. On the evening of March 5, *ST Songfa announced that its subsidiary Hengli Shipbuilding (Dalian) Co., Ltd. signed and became effective on contracts for the construction of four ultra-large crude oil tankers, with a total contract value of approximately $400 million to $600 million.

(Source: Shanghai Securities Journal)