Core Viewpoint - Guangdong Songfa Ceramics Co., Ltd. has received approval from the China Securities Regulatory Commission for a significant asset swap and share issuance to acquire 100% equity of Hengli Heavy Industry Group Co., Ltd., marking a substantial step towards the listing of a new private shipbuilding enterprise in China's shipbuilding industry [1][2][4]. Group 1: Transaction Details - The transaction involves Guangdong Songfa proposing to swap assets and issue shares to acquire equity from Suzhou Zhongkun Investment Co., Ltd., Suzhou Hengneng Supply Chain Management Co., Ltd., Hengneng Investment (Dalian) Co., Ltd., and Chen Jianhua [2][4]. - The China Securities Regulatory Commission has approved the issuance of 343,513,041 shares to Suzhou Zhongkun, 131,338,490 shares to Hengneng Investment (Dalian), 131,338,490 shares to Suzhou Hengneng, and 131,338,490 shares to Chen Jianhua, along with a fundraising of up to 4 billion yuan [2][4]. - The asset swap will see Songfa's assets valued at approximately 513.1 million yuan exchanged for 50% equity in Hengli Heavy Industry, which has an estimated value of 8 billion yuan [6]. Group 2: Financial Projections and Strategic Implications - Following the transaction, major stakeholders will hold significant shares: Zhongkun will have 39.86%, Hengneng Investment and Suzhou Hengneng will each hold 15.24%, and Chen Jianhua will also hold 15.24%, leading to a total of 89.93% ownership among these parties [4]. - The company aims to transition from daily ceramic manufacturing to focus on shipbuilding and high-end equipment, which is expected to enhance its profitability and align with shareholder interests [11]. - Hengli Heavy Industry is projected to achieve net profits of approximately 1.127 billion yuan, 1.641 billion yuan, and 2.063 billion yuan for the years 2025, 2026, and 2027, respectively, with a performance guarantee of at least 4.8 billion yuan over the three years [9][11]. Group 3: Fundraising and Project Allocation - The company plans to raise up to 4 billion yuan, which will be allocated to projects including the green high-end equipment manufacturing project and the international ship research and design center [8][9]. - The total investment for these projects is estimated at approximately 874.3 million yuan, with 350 million yuan allocated for the green equipment project and 50 million yuan for the research center [8].