*ST Songfa, plans to raise no more than 7 billion yuan through a private placement

Reprinted from: China Securities Golden Bull

On the evening of March 24, the listed company *ST Songfa under the Hengli Group announced that its private placement plan has been accepted and is under review by the Shanghai Stock Exchange. The proposed fundraising will not exceed 7 billion yuan, focusing on expanding high-end shipbuilding integrated projects, with an overall investment scale of 13.51B yuan. This is an important part of Hengli Heavy Industry’s major expansion plan after going public through a backdoor listing.

The announcement shows that the net proceeds after deducting issuance costs will be invested in three specific projects. Among them, the green intelligent high-end shipbuilding integration project plans to invest 5 billion yuan, including Hengli Shipbuilding (Dalian) Co., Ltd.'s green intelligent equipment manufacturing project and its supporting facilities. The green ship manufacturing assembly upgrade project plans to invest 1.5 billion yuan, and the green high-end shipbuilding project supporting the No. 3–6 wharf project plans to invest 500 million yuan.

By May 2025, Hengli Heavy Industry will go public through a backdoor listing of *ST Songfa. The backdoor listing mainly involves asset purchase and asset swap methods. The announcement shows that *ST Songfa will swap all assets and operating liabilities held as of the valuation date with the equivalent portion of Hengli Heavy Industry Group Co., Ltd., held by Zhongkun Investment, a Hengli Group company, and will purchase assets from Hengli Group companies through share issuance. Specifically: purchasing the difference of the major assets swap from Suzhou Zhongkun Investment Co., Ltd.; and acquiring the remaining 50% equity of Hengli Heavy Industry held by Suzhou Hengen Supply Chain Management Co., Ltd., Hengen Investment (Dalian) Co., Ltd., and Chen Jianhua.

As of May 23, 2025, the 100% equity of Hengli Heavy Industry held by Zhongkun Investment, Suzhou Hengen, Hengen Investment, and Chen Jianhua was transferred to *ST Songfa. Hengli Heavy Industry became a wholly owned subsidiary of *ST Songfa. The company’s main business shifted from the research, production, and sales of daily-use ceramic products to the research, production, and sales of ships and high-end equipment.

The actual controllers of *ST Songfa have changed to Chen Jianhua and Fan Hongwei, who jointly hold 775 million shares of *ST Songfa, accounting for 79.83%. Chen Jianhua and Fan Hongwei are also the actual controllers of the A-share listed company Hengli Petrochemical, holding a 61.51% stake. As of the close on March 25, Hengli Petrochemical’s total market value was 151.34 billion yuan.

On August 23, 2025, Chen Jianhua was elected chairman of *ST Songfa, and Chen Hanlun was appointed general manager. Public information shows that Chen Hanlun is the son of Chen Jianhua and Fan Hongwei, born in 2001, with a master’s degree in applied finance, and previously served as a corporate income tax consulting advisor at PwC (Singapore). Since March 2024, he has been the vice president of Hengli Group Co., Ltd.

After the completion of Hengli Heavy Industry’s asset injection, *ST Songfa’s performance surged. On March 10, *ST Songfa released its annual report, showing that in 2025, the company achieved operating revenue of 21.64B yuan, with a net profit attributable to shareholders of listed companies of 2.66B yuan. By the end of 2025, the company’s total assets reached 49.39B yuan.