On March 27, Baofeng Energy quickly hit the daily limit down after opening, with its market value evaporating by about 12.914 billion yuan compared to 129.214 billion yuan on March 26.

According to Xinhua News Agency, the 34th Chairman's Meeting of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) was held in Beijing on March 26. The meeting reviewed and approved the decision to revoke the qualifications of Tang Yong, Dang Yanbao, and Li Minji as members of the 14th National Committee of the CPPCC, and proposed to seek confirmation from the 12th meeting of the Standing Committee of the 14th CPPCC.

The person whose qualifications as a member of the National Committee of the Chinese People's Political Consultative Conference have been revoked, Party Yanbao, is the chairman and actual controller of Baofeng Energy.

On March 7, 2025, the China Securities Regulatory Commission announced that Dang Yanbao, the chairman of Ningxia Baofeng Energy Group, has been formally investigated for suspected violations of information disclosure. Following the announcement, the company's stock price plummeted 5.3% at the opening.

The flow of funds is in question. According to a report from Caizhong News, Baofeng Energy has a highly concentrated shareholding. As of the end of 2024, Dang Yanbao directly holds 7.53%, while his controlled companies, Ningxia Baofeng Group Co., Ltd. and Dongyi International Group Co., Ltd., hold 35.65% and 27.27% respectively, totaling a shareholding ratio of 70.45%. This means that over 70% of this dividend will flow to the actual controller and his controlled enterprises.

In 2014, Dan Yanbao entered the coal-to-olefins field, producing products such as polyethylene and polypropylene. The company's revenue rose from 3.449 billion yuan in 2014 to 28.43 billion yuan in 2022. His personal wealth has skyrocketed, and he has repeatedly been named the richest person in Ningxia, becoming a regular on Forbes' lists.

According to a report by 21st Century Business Review, on September 11, 2023, in a response to the Shanghai Stock Exchange's inquiry, Baofeng Energy stated that there is a capacity gap in polyethylene and polypropylene. It predicts that in the next five years, the apparent consumption of polyethylene and polypropylene in China will increase by a total of 26.4 million tons; there will be a gap of over 10 million tons between production and apparent consumption, which will need to be supplemented by imports.

The first phase of the project involves an investment of 47.8 billion yuan, with an annual production capacity of 7.42 million tons of methanol, 3 million tons of polyolefins, 1.5 million tons of polyethylene, and 1.5 million tons of polypropylene. The project adopts a production process that integrates green hydrogen with modern coal chemical technology, achieving a total olefin production capacity of 3 million tons per year. It is currently the largest coal-to-olefins project in the world in terms of single plant scale and is also the only project globally that replaces fossil energy with green hydrogen on a large scale to produce olefins.

On March 26, an investor asked Baofeng Energy on the interactive platform: According to industry data, the price of olefins is expected to rise slightly overall in 2024, but based on the company's annual report, why is the single-ton income calculated using the olefin segment's revenue/sales volume expected to decrease by more than 1,000 yuan/ton in 2024 compared to 2023?

The company's response stated: According to the company's operating data announcement, the sales prices of polyolefin products are as follows: the average annual selling price of polyethylene products is 7,089 yuan/ton, an increase of 0.1% year-on-year; the average annual selling price of polypropylene products is 6,697 yuan/ton, a decrease of 0.9%. Overall, the prices of polyolefin products remained basically stable year-on-year. The revenue from the olefin product segment in the annual report includes not only the income from polyethylene and polypropylene but also income from EVA and other products related to olefins. Therefore, it is not possible to derive the price per ton of polyolefin products by dividing the segment revenue by olefin sales volume.