Baofeng Energy Achieves Full Production and Sales with 11.35 Billion Yuan Profit; Circular Economy Industrial Chain Integration Reduces Costs by 30%

Yangtze Business Daily News ● Yangtze Business Reporter Shen Yourong

China’s leading high-efficiency coal-based new material enterprise, Baofeng Energy (600989.SH), has achieved its best-ever operating performance.

On the evening of March 12, Baofeng Energy disclosed its 2025 annual report. In 2025, Baofeng Energy achieved operating revenue of over 48 billion yuan, a year-on-year increase of more than 45%; net profit attributable to shareholders was approximately 11.35 billion yuan, up nearly 80%. Both figures set new records.

Why has Baofeng Energy achieved such impressive results? In 2025, the company’s main business expanded rapidly, reaching full capacity and full sales, with significant increases in olefin product output and sales volume year-on-year. Additionally, the company actively improved efficiency, increasing efficiency by 90.24 million yuan, with annual revenue growth of 179 million yuan and cost savings of 351 million yuan.

Baofeng Energy’s advantages are very clear. Besides location and technological advantages, the company also has a significant cost advantage. Based on an integrated circular economy industrial chain layout, the company’s operating costs are about 30% lower than those of similar-sized peers.

With substantial growth in operating performance, Baofeng Energy’s financial condition has improved. By the end of 2025, the company’s asset-liability ratio was 46.32%, down 5.66 percentage points from the end of the previous year.

Baofeng Energy increased its dividend payout. In 2025, the company distributed dividends of 5.091 billion yuan, also a new high.

Performance and stock price both hit new highs

Baofeng Energy achieved record-breaking operating results.

According to the latest disclosed annual report, in 2025, Baofeng Energy achieved operating revenue of 48.038 billion yuan, a 45.64% increase; net profit attributable to shareholders and net profit after non-recurring gains and losses were 11.35 billion yuan and 11.52 billion yuan, respectively, up 79.09% and 69.91% year-on-year.

Earning over 10 billion yuan annually marks Baofeng Energy’s best-ever operating performance in history.

Baofeng Energy listed on the A-share market in 2019. From 2019 to 2024, the company’s revenue grew continuously, from 13.568 billion yuan in 2019 to 32.983 billion yuan in 2024, with 2025 revenue being 3.54 times that of 2019.

Compared to the steady growth in revenue, Baofeng Energy’s net profit attributable to shareholders has experienced some fluctuations, mainly in 2022 and 2023, with 6.303 billion yuan and 5.651 billion yuan, respectively, down about 10% year-on-year. Overall, the company’s net profit has shown an upward trend, from 3.802 billion yuan in 2019 to 29.9 times that in 2025.

It’s worth noting that in 2024, Baofeng Energy’s performance was also quite strong. That year, net profit attributable to shareholders was 6.338 billion yuan, ending the consecutive decline seen in 2022 and 2023, with a year-on-year increase of 12.16%.

A comparison shows that in 2025, Baofeng Energy’s non-recurring net profit exceeded net profit attributable to shareholders, indicating that most of the company’s net profit comes from its main business.

In summary, in 2025, Baofeng Energy’s revenue and net profit attributable to shareholders both hit record highs.

In 2025, corresponding to its explosive performance, the company’s operating cash flow also surged. The net operating cash flow for the year was 16.851 billion yuan, an increase of 7.953 billion yuan from the previous year, up 89.39%.

In the secondary market, Baofeng Energy’s stock price also reached a new high.

The K-line chart shows that on March 12, 2025, the stock price was 17 yuan per share, and by March 13, 2026, the closing price was 34.7 yuan per share. Over the past year, the stock price doubled and hit a new all-time high.

Currently, Baofeng Energy’s market value is 254.5 billion yuan, ranking among the 200-billion-yuan camp.

Funds increased holdings in Baofeng Energy. Wind data shows that at the end of Q4 2025, funds held approximately 161 million shares, an increase of 24.49 million shares from the end of the previous quarter.

Advancing toward the world’s largest green energy enterprise

With rapid growth in performance, Baofeng Energy also has big ambitions, seeking to become the world’s largest green energy company.

The significant increase in Baofeng Energy’s performance is directly related to the completion and commissioning of major projects.

In 2021, Baofeng Energy launched the Inner Mongolia 3 million-ton-per-year olefin project, building the world’s largest single-plant coal-to-olefin production line, with supporting 400,000-ton-per-year green hydrogen coupled olefin project, using third-generation DMTO technology, with over 98% domestication of equipment.

In the 2025 semi-annual report, Baofeng Energy stated that in the first half of the year, the above projects were completed and put into full production as planned, producing 1.1635 million tons of polyolefins, accounting for 48.39% of the company’s total polyolefin output. To date, this project is the world’s largest single-plant coal-to-olefin project and the first to apply large-scale green hydrogen and modern coal chemical integrated production technology for olefins. After its completion, the company’s olefin capacity reached 5.2 million tons per year, ranking first in China’s coal-to-olefin industry. The Inner Mongolia olefin project demonstrated the application of many equipment with independent intellectual property rights, with domestication rate over 98%. The project adopts the most advanced DMTO-Ⅲ technology, leveraging location, technological, and investment advantages to further reduce production costs.

Baofeng Energy’s 100,000-ton-per-year vinyl acetate project was successfully started and put into operation, achieving self-supply of key raw materials for EVA production.

Additionally, the Ningdong Phase IV olefin project broke ground in April 2025, with planned commissioning by the end of 2026. Pre-project work for Xinjiang olefin and Inner Mongolia Phase II olefin projects is also actively progressing.

A prominent feature of Baofeng Energy’s major projects is industrial clustering. The company’s circular economy industrial chain is planned in one go, with centralized layout and phased implementation, forming a large-scale industrial cluster. Upstream and downstream production units are closely connected, significantly reducing individual project investment, auxiliary facilities, and financial costs. The company states that compared to similar-scale projects launched domestically at the same time, its investment costs are reduced by over 30%.

Beyond investment and financial costs, Baofeng Energy also benefits from operational cost advantages. The tightly integrated industrial chain ensures that the products of one unit directly become raw materials for the next, guaranteeing stable raw material supply and full-capacity operation, greatly reducing energy consumption, logistics, and management costs—operating costs are about 30% lower than those of peers of similar size.

Baofeng Energy’s location advantage is also evident. The company headquarters is located in the Ningdong National Energy and Chemical Base, one of China’s “Golden Triangle” energy chemical zones. The newly launched Phase I of Baofeng Coal-based New Materials Co., Ltd. in Inner Mongolia, with a capacity of 2.6 million tons per year for coal-to-olefin and supporting 400,000 tons per year of green hydrogen coupled olefin project, is situated in another core area of the “Golden Triangle”—Ordos, Inner Mongolia. The region is rich in coal resources, with abundant and convenient raw material supply, and lower raw material costs.

Aligned with the “dual carbon” strategy, Baofeng Energy is the only chemical enterprise worldwide that uses green hydrogen to replace fossil fuels for large-scale methanol and green ammonia production. In the future, the company aims to reach an annual capacity of 10 million tons of methanol and 5 million tons of green ammonia, becoming the world’s largest green energy enterprise.

Visual China Image

Editor: ZB