Songfa Co., Ltd. announced that the company held a board of directors meeting on July 23 and agreed to use the capital raised to increase the capital of its wholly-owned subsidiary Hengli Heavy Industries by 6.941 billion yuan, and then to increase the capital of the wholly-owned Sun Company Hengli Shipbuilding and Hengli Outfitting by 6.791 billion yuan and 150 million yuan respectively to implement the fund-raising project. This capital increase does not constitute a related transaction or major asset restructuring, and there is no need for shareholders' meeting to review it. After the capital increase, the capital strength and operating capacity of the fund-raising project entities will improve, which will help speed up project implementation and enhance the company's competitiveness.

Songfa Co., Ltd. announced that the company held a board of directors meeting on July 23 and agreed to use the capital raised to increase the capital of its wholly-owned subsidiary Hengli Heavy Industries by 6.941 billion yuan, and then to increase the capital of the wholly-owned Sun Company Hengli Shipbuilding and Hengli Outfitting by 6.791 billion yuan and 150 million yuan respectively to implement the fund-raising project. This capital increase does not constitute a related transaction or major asset restructuring, and there is no need for shareholders' meeting to review it. After the capital increase, the capital strength and operating capacity of the fund-raising project entities will improve, which will help speed up project implementation and enhance the company's competitiveness.