Baofeng Energy’s First-Quarter Net Profit Rose More Than 50%; Company Says “Product Prices Have Generally Been Rising Since The Second Quarter”

May 18,Baofeng Energy(27.800, -0.29, -1.03%)(600989.SH) participated in the “2025 Annual Results Briefing and Online Collective Investor Reception Day for Listed Companies in the Ningxia Jurisdiction” on the “Panorama Roadshow” platform.

As a leading enterprise in the coal-to-olefins sector, Baofeng Energy benefited in 2025 from the full ramp-up of its 2.6 million-ton-per-year coal-to-olefins project in Inner Mongolia, leading to a substantial increase in performance. In that year, the company achieved operating revenue of RMB 48.038 billion, up 45.64% year on year; and net profit attributable to shareholders of the listed company of RMB 11.35 billion, up 79.09% year on year.

In the first quarter of this year, Baofeng Energy achieved operating revenue of RMB 13.237 billion, up 22.90% year on year; net profit attributable to shareholders of the listed company reached RMB 3.661 billion, up 50.23% year on year. The company’s earnings growth was likewise driven by the Inner Mongolia olefin project reaching full production, which led to a year-on-year increase in the production and sales volumes of olefin products. According to Baofeng Energy’s “Announcement on Main Operating Data for the First Quarter of 2026,” during the period, the company’s major products, polyethylene and polypropylene, recorded output of 733,700 tons and 696,500 tons, up 40.42% and 38.91% year on year, respectively; sales volumes were 718,300 tons and 689,600 tons, up 39.58% and 40.31% year on year, respectively.

In addition to the ramp-up of the Inner Mongolia olefin project, Baofeng Energy has in recent years maintained multiple reserve projects, including the Ningdong Phase IV project, the Xinjiang project, and the Inner Mongolia Phase II project, with projects under construction or planned continuing to advance.

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Securities Market Weekly: In recent years, your company has advanced the construction and commissioning of key olefin projects, contributing incremental earnings. As of now, what is the progress of your Ningdong Phase IV project, Xinjiang project, and Inner Mongolia Phase II project?

This year, geopolitical conflicts have driven up oil prices. In this context, coal-to-olefin companies with industrial substitutability and clear cost advantages have attracted market attention for their allocation value. Has your company’s export scale of olefin products increased as a result this year? Since the second quarter of this year, have the prices of polyolefin products risen further?

Baofeng Energy: The construction progress of the Ningdong Phase IV project is in line with expectations and is planned to be completed and put into operation by the end of this year; the Xinjiang project and Inner Mongolia Phase II are both undergoing the relevant approval procedures, and the company will fulfill its information disclosure obligations in accordance with regulations.

This year, product export volume has increased significantly year on year, and since the second quarter, product prices have generally shown an upward trend.

Image source: Screenshot from the “Panorama Roadshow” platform