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Baofeng Energy saw its revenue increase by 46% in 2021, while its net profit rose by 53%; it is leading the energy revolution and aims to become the world’s largest green hydrogen company. https://p26.toutiaoimg.com/origin/tos-cn-i-qvj2lq49k0/b0709900b26b468fad01a2a1d01fedc0?from=pc On the evening of March 9, Baofeng Energy released its annual report for 2021, showing that the company’s performance reached record levels, with annual revenue amounting to 23.3 billion yuan, a 46.29% increase compared to the previous year； The net profit attributable to the parent company was 7.07 billion yuan, a year-on-year increase of 52.95%. This marks the seventh consecutive year that Baofeng Energy has achieved high growth in its operating revenue, with an average annual compound growth rate of 31.38%. Its net profit has doubled since the company went public in 2019, and its profitability continues to rise. Baofeng Energy has maintained a low debt ratio for a long time; in 2021 it dropped to 30.84%. Its operating cash flow amounted to 10.157 billion yuan, representing a 56% increase on a year-on-year basis, showing an upward trend from year to year. Behind Baofeng Energy’s ability to maintain strong performance is the company’s establishment of a solid competitive advantage by controlling costs. The company has made a one-time plan for its circular economy industry chain, with a centralized layout and phased implementation, thus creating industrial clusters of extremely large scale. The production units at various stages are closely connected; the products from one unit serve as raw materials for the next unit, which ensures a stable supply of raw materials and enables full-capacity operation. This approach significantly reduces energy consumption, logistics costs, and management costs, with operational expenses being about 35% lower than those of companies in the same industry with similar scale. In the face of cost pressures caused by the sharp rise in raw material prices in 2021, Baofeng Energy’s solution was to implement precise cost control and rely on the complementarity of its various products. The company’s main products – polyethylene, polypropylene, and coke – are among the most important basic raw materials for the development of the national economy. With total production capacity remaining unchanged, both product output and raw material consumption reached record levels. The output of coke and polyolefins increased by 102,400 tons and 30,100 tons respectively, representing growth rates of 2.31% and 2.26%. The amount of methanol required to produce one ton of olefins decreased by 1.14% compared to the same period last year, maintaining a level that is among the best in the industry. Meanwhile, Baofeng Energy’s project production increase plan is progressing smoothly. The 3 million tons per year coking combined production project will be fully completed in the first half of 2022, while the construction of the third phase of the olefin project in Ningdong is already about halfway done, with completion expected by the end of 2022 ； The approval process for Inner Mongolia’s 4 million tons per year coal-to-olefins project is in its final stage. In addition, the company’s products are continuously moving toward higher-end categories; several new types of coke and new grades of polyolefins have been developed, with over 20 projects and products in the pipeline. The production capacity for high-end polyethylene EVA products at the Ningdong Phase III facility, amounting to 250,000 tons per year, is expected to come online in 2023. EVA resin is a key material for photovoltaic packaging components, and currently, about 60% of its supply relies on imports. In 2021, Baofeng Energy focused on the clean energy industry chain, driving a zero-carbon transformation of the chemical industry chain, with the goal of becoming the world’s largest producer and supplier of green hydrogen. Currently, the world’s largest production capacity for green hydrogen – 300 million cubic meters – and green oxygen – 150 million cubic meters – has been established, with this capacity continuing to increase at a rate of 300 million cubic meters of green hydrogen per year. Part of the green hydrogen produced by the company is used in chemical manufacturing, which will significantly reduce coal consumption and carbon dioxide emissions ； The other part will develop comprehensively in the areas of hydrogen production for energy storage, hydrogen storage and transportation, and the construction of hydrogen refueling stations, thereby achieving integrated development across the entire hydrogen industry chain. At present, **efforts are being made to “drive an energy revolution, ensure energy supply, take advantage of existing resources, adhere to the principle of establishing new systems before phasing out old ones, plan comprehensively, and promote a low-carbon transition in the energy sector.”** Faced with an increasingly strained global energy supply and demand situation, Baofeng Energy makes full use of its advantages in integrating high-end coal-based new material industries, and thanks to its world-leading capabilities in the \"green hydrogen\" industry chain, it is at the forefront of the new energy revolution.