Ningxia Baofeng Energy Co., Ltd. achieved revenue of 15.9 billion yuan in 2020, with a profit increase of 21.59%!

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On the evening of March 4, Baofeng Energy released its annual performance report for 2020. According to the express report, Ningxia Baofeng Energy Co., Ltd. (hereinafter referred to as “Baofeng Energy”) had total operating revenue of approximately 15.928 billion yuan in 2020, an increase of 17.39% compared with the previous year ； The net profit attributable to the shareholders of the listed company was approximately 4.623 billion yuan, an increase of 21.59% on a year-on-year basis. Meanwhile, the company’s basic earnings per share was 0.63 yuan, an increase of 16.67% on a year-on-year basis. The 2019 annual report shows that Baofeng Energy’s main business areas are the chemical industry and the coking industry, accounting for 59.98% and 39.7% of its total revenue respectively. Regarding the increase in the company’s total operating revenue and net profit during the reporting period, the preliminary report states that the company’s profitability was primarily driven by the commissioning of the projects funded through fundraising efforts. The production volumes of polyethylene and polypropylene increased significantly compared to the same period last year, while the average price of purchased raw materials decreased, which helped to offset the drop in product prices. Baofeng Energy was established in 2005 and is mainly engaged in the production and sales of modern coal chemical products. Before 2013, Baofeng Energy’s main products were coke, pure benzene, and modified asphalt. In 2013, Baofeng Energy acquired Dongyi Environmental Protection, and methanol was added to the company’s main products. In 2014, a project for the comprehensive utilization of coking plant exhaust gases to produce olefins came online, resulting in the addition of products such as polyethylene and polypropylene to the company’s portfolio. In 2016, a project for the advanced processing of butane derivatives was put into operation, and products like MTBE were added to Baofeng Energy’s list of main products. On January 3, 2020, Baofeng Energy was included in the list of the top 500 companies by market value among listed firms for 2020, ranking 186th. In the same year, Baofeng Energy ranked 1,864th on the 2020 Forbes Global 2000 list of the largest companies in the world. Furthermore, Baofeng Energy stated in its financial report for the first half of 2020 that the company did not suffer significant economic losses as a result of the impact of the COVID-19 pandemic. In February, when the impact of the pandemic was at its worst, Baofeng Energy’s capacity utilization rates for polyolefins and coke were close to 100%. The urgent shift to producing the S2040 grade of polypropylene, which can be used to manufacture the spunbond non-woven material for mask exteriors, brought significant economic benefits to the company. Six new grades of polyethylene and polypropylene, including S2040, helped Baofeng Energy generate an additional 84.6 million yuan in revenue. On February 28, the 10×1000 Nm3/h hydrogen production project via water electrolysis, which is part of the solar electrolytic hydrogen production and energy storage research and demonstration project carried out by the Northwest Branch of China National Chemical Engineering Corporation No. 11 Construction Co., Ltd., was successfully put into operation for the first time. The successful commissioning of this project represents a significant step forward by the traditional energy industry toward the field of new energy, achieving both environmental benefits and economic advantages; it serves as a model for other companies in the industry. This project is the first hydrogen energy industry project in Ningxia, as well as the largest integrated renewable energy-based hydrogen production and storage project in China. It utilizes the most advanced and efficient domestic alkaline electrolyzers, each with a production capacity of 1,000 standard cubic meters per hour. Once operational, it is expected to produce 160 million cubic meters of hydrogen per year, along with 80 million cubic meters of oxygen as a by-product. This will result in a reduction of 254,000 tons of coal consumption and 445,000 tons of carbon dioxide emissions each year.