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On March 11, Baofeng Energy’s 2020 annual report was released. During the reporting period, the company’s olefin products generated revenue of 9.221 billion yuan in 2020, representing a year-on-year increase of 44.77%. Among them, the production volume of polyethylene products was 694,800 tons, while the sales volume was 686,200 tons, representing year-on-year increases of 57.76% and 62.38% respectively ； The production volume of polypropylene products was 640,700 tons, while sales amounted to 633,900 tons, representing year-on-year increases of 51.66% and 62.03%, respectively. Throughout the year, 9 new specialty material products were developed, including high melt index fiber material (S2040), melt-blown material, thin-walled injection molding material, small and medium hollow material (BM593), water supply pipe material (TRB432), and high-strength film material. The proportion of these specialty materials reached 57%; the high-strength film material can be used for shrink films in heavy packaging, enabling it to serve as a substitute for high-end imported products. R&D expenses increased by 87% on a year-on-year basis in 2020, with the additional funds primarily used for the research and development of new products in the areas of polyethylene, polypropylene, and coke ； More than 20 technical exchanges were carried out, and collaborative research was conducted with the Beijing Institute of Chemistry, Chinese Academy of Sciences, on the \"Development and Research Project for High-Melting Polyolefin Products\" and the \"Research on Key Technology Development and Industrial Application of Transparent and Heat-Sealable Propylene-Butylene Copolymers\" projects ； In 2020, the company obtained a total of 35 new authorized patents. In July 2020, the 4×1000,000 tons/year coal-to-olefins demonstration project of Inner Mongolia Baofeng Coal-based New Materials Co., Ltd. (with an initial capacity of 2.6 million tons/year) was approved by the Development and Reform Commission of Inner Mongolia Autonomous Region. The approvals required for the project’s land use and related forestry and grassland matters have also been obtained from the relevant regulatory authorities. During the reporting period, the environmental impact assessment report for the project was completed, and the project has now entered the stage of coordination for submission for approval. In September 2020, for the Phase III project in Ningdong involving 500,000 tons per year of coal-based olefins production and 500,000 tons per year of olefins production through the comprehensive utilization of C2-C5 compounds, the methanol and olefins production facilities were scheduled to come online by the end of 2022, while the 250,000 tons per year EVA production facility was set to start operations in 2023. 3 million tons/year coking cogeneration project: Completion and commissioning are scheduled for the end of 2021, with the accompanying benzene hydrogenation capacity to be expanded to 120,000 tons/year and the tar processing capacity to be expanded to 400,000 tons/year. The demonstration project for solar electrolysis hydrogen production, energy storage, and integrated applications began construction of its first phase in April 2020; this first phase was put into trial operation in February 2021, with the completion of the entire project scheduled for the end of 2021. Hongsi Coal Mine with a capacity of 2.4 million tons per year: It began trial operations in October 2020, and is scheduled to be put into full operation after passing the acceptance tests within 2021. In 2020, Baofeng Energy made efforts across the entire coal-coke-alcohol-olefin-refinery value chain. By the end of 2020, Baofeng Energy had a production capacity of 7.5 million tons per year for coal, 4 million tons per year for coking, 4 million tons per year for methanol, 600,000 tons per year for polyethylene, 600,000 tons per year for polypropylene, 100,000 tons per year for benzene hydrogenation units, 300,000 tons per year for advanced tar processing units, 200,000 tons per year for advanced C4 processing units, and 120,000 tons per year for heavy C4 isomerization units. By 2025, the company will have production capacities of 8.4 million tons per year for coal, 7 million tons per year for coking, and 2.2 million tons per year for polyolefins. On March 10, Baofeng Energy released its annual report for 2020. According to the announcement, the company achieved revenue of 15.928 billion yuan in 2020, a year-on-year increase of 17.39% ； The net profit attributable to the parent company was 4.623 billion yuan, representing a year-on-year increase of 21.59% ； After deducting non-recurring items, the net profit attributable to the parent company was 4.847 billion yuan, representing a year-on-year increase of 23.99% ； The gross margin was 45.10%, up 1.15 percentage points year-on-year ； The net profit margin was 29.02%, up 1.00 percentage points year-on-year ； R&D expenses amounted to 100 million yuan, representing a year-on-year increase of 87.28%. By the end of 2020, the company had a production capacity of 7.5 million tons per year for coal, 4 million tons per year for coking, 4 million tons per year for methanol, 600,000 tons per year for polyethylene, 600,000 tons per year for polypropylene, 100,000 tons per year for benzene hydrogenation units, 300,000 tons per year for advanced tar processing units, 200,000 tons per year for advanced butane processing units, and 120,000 tons per year for heavy butane isomerization units. From 2015 to 2020, Baofeng Energy’s operating revenue increased from 3.449 billion yuan (the figure for 2014) to 15.928 billion yuan, an increase of nearly 4 times, amounting to almost 12.5 billion yuan. The corresponding net profit rose from 115 million yuan to 4.623 billion yuan, an increase of nearly 39 times, amounting to 4.5 billion yuan.