On March 10th, Guangdong Songfa Ceramics Co., Ltd. (hereinafter referred to as “Songfa Shares”) released the “Announcement on the Action Plan for ‘Improving Quality,Increasing Efficiency, and Focusing On Returns’.”
The announcement disclosed that Songfa Shares has formulated an action plan of “improving quality, increasing efficiency and Focusing On returns” in combination with its own business reality and development strategy. The fourth meeting of the sixth board of directors was held on March 7, 2025, and the “Proposal on the Action Plan of “Improving Quality, Increasing Efficiency and Focusing On Returns” was reviewed and approved.
According to the announcement, the proposals involve improving operating quality and accelerating the development of new quality productivity; strengthening cash dividends and paying attention to shareholder returns; enhancing communication with investors and delivering company value; adhering to standardized operations and improving corporate governance; strengthening the responsibilities of the “key few” and improving their ability to perform their duties.
Currently, Songfa Shares is promoting the purchase of 100% equity of Hengli Heavy Industry Group Co., Ltd. through major asset replacement and issuance of shares to purchase assets, and issuing shares to no more than 35 specific investors to raise matching funds.
On December 1, 2024, Songfa Shares disclosed the draft transaction of the company’s issuance of shares to purchase Hengli Heavy Industry’s equity. According to the draft, the asset valuation of the proposed disposal is 513 million yuan, and the asset valuation of Hengli Heavy Industry to be acquired is 8.006 billion yuan. After the transaction is completed, Songfa Shares will officially withdraw from the daily ceramic products manufacturing industry and fully transform and upgrade its strategy to the world’s most promising shipyard.
The announcement disclosed that on January 2, 2025, the company received the “Notice on Accepting the Application of Guangdong Songfa Ceramics Co., Ltd. to Issue Shares to Purchase Assets and Raise Matching Funds” issued by the Shanghai Stock Exchange. The Shanghai Stock Exchange verified the company’s application documents and decided to accept it and conduct an examination in accordance with the law.
Through this transaction, Songfa will strategically withdraw from the daily-use ceramic products manufacturing industry, and Hengli Heavy Industry will become a wholly-owned subsidiary of the listed company, with the main business of research and development, production and sales of ships and high-end equipment. After the completion of the transaction, the main business of the company will be changed to the research and development, production and sales of ships and high-end equipment.
Songfa shares introduced that Hengli Heavy Industry has built a world-leading shipbuilding and high-end equipment manufacturing industrial base in the Changxing Island in Dalian, which has natural advantages in terms of geographical location, industrial foundation, policy support, market and talents. The company through this transaction into the Hengli Heavy Industries’ ship and high-end equipment manufacturing business, with the listed company platform to further improve the Hengli Heavy Industry high-end, intelligent, green shipbuilding capacity, and actively cultivate the new quality of productivity of shipping, and become a supporting force for the construction of a strong marine country.
Songfa stated that the transaction is subject to the approval of the Shanghai Stock Exchange and the consent of the China Securities Regulatory Commission for registration before it can be implemented. The company will actively promote the work, according to the progress of the matter, strictly in accordance with the provisions and requirements of relevant laws and regulations to fulfill the information disclosure obligations in a timely manner.