Entering the 10 Billion Club! Baofeng Energy's 2025 Non-GAAP Net Profit Exceeds 11.5 Billion, YoY Growth Nearly 70%

On March 12, Baofeng Energy (600989.SH) released its 2025 annual performance report: Despite pressures from the macroeconomic environment and the industry entering a period of deep adjustment, the company delivered an outstanding “high growth, high profitability, high cash flow” performance, demonstrating its core profitability continues to lead the industry, with an asset-liability structure further optimized. Solid results prove its unshakable leading position and strong industrial strength in a complex market environment.

The key data in the annual report confirms a simultaneous rise in volume, price, and profit. In 2025, the company achieved operating revenue of 48.038 billion yuan, a year-on-year increase of 45.64%; net profit attributable to shareholders after non-recurring gains and losses exceeded 10 billion yuan for the first time, reaching 11.519 billion yuan, up 69.91%; net operating cash flow reached 16.851 billion yuan, an increase of 89.39%; basic earnings per share were 1.56 yuan, up 79.31%. This performance, far surpassing market expectations, marks a solid step into a new stage of high-quality development for Baofeng Energy.

Capacity集中释放，构建能源安全“压舱石”

2025 is Baofeng Energy’s year of capacity explosion. With the full production of the Inner Mongolia 3 million-ton/year coal-to-olefins project, the company’s polyolefin total capacity has surged to nearly 6 million tons per year, firmly ranking first in the domestic industry. This scale increase is not just a numerical growth but a strategic implementation. The company can replace over 30 million tons of imported oil annually, effectively strengthening the security of the energy industry chain supply chain. The company’s methanol capacity reaches 14 million tons per year, making it the largest single-factory methanol producer in China. Relying on an integrated coal-methanol-olefins industrial chain model, the methanol production cost per ton is 300-500 yuan lower than the industry average, highlighting scale and cost advantages. This capacity is not only a core force for domestic methanol to replace imports but also ranks among the industry leaders in volume and price elasticity, with an annual replacement of 14 million tons of methanol imports, greatly enhancing China’s coal chemical industry chain autonomy and control. The concentrated capacity release also provides a solid foundation for the company’s performance growth. During the reporting period, olefin products maintained strong production and sales, becoming the core engine driving overall revenue. Through technological integration and scale effects, Baofeng Energy is acting as a “ballast stone,” providing sustainable endogenous power for domestic energy security and industrial upgrading.

“Extreme Cost” Moat, Profitability Through Cycles

In the increasingly fierce competition within the polyolefin industry, cost control is the sole measure of a company’s core competitiveness. In 2025, Baofeng Energy’s cost advantage was amplified to new heights due to scale effects and technological breakthroughs. Thanks to the large-scale synergy effect of the Inner Mongolia project, its total cost is nearly 10% lower than the Ningdong base in Ningxia; compared to traditional oil-based and gas-based routes, the cost advantage of coal-to-olefins is further emphasized. Baofeng Energy’s gross profit per ton of olefins is 2,500 yuan, with a gross profit margin of 38.61%. According to a research report by Kaiyuan Securities, under the backdrop of declining raw material costs and relatively stable selling prices, Baofeng Energy’s “volume increase, cost decrease” scissors effect is significant, allowing profit elasticity to be fully unleashed.

More notably, this cost advantage is highly exclusive. Key equipment for the Inner Mongolia project has achieved full domestic replacement, with 23 technologies reaching international leading levels. This not only solves industry “bottleneck” problems but also keeps core technologies firmly in its own hands, turning “big national heavy equipment” into a solid backing for cost leadership.

Technological Innovation Drives High-Quality Development

In 2025, the company’s R&D investment reached 961 million yuan, a year-on-year increase of 27.11%. Throughout the year, 115 technological breakthrough and energy-saving, carbon-reduction projects were implemented, enabling precise delivery of production materials and accurate process control, resulting in a yearly decline in unit product energy consumption. A total of 165 R&D projects were initiated, with 221 patents and software copyrights authorized, and 8 technological achievements registered—setting new records and providing strong technical support for high-end, refined industry transformation.

The company relies on the “Baofeng AI Industrial Brain” to build an intelligent operation system across the entire industry chain. All three coal mines under its control have passed national-level intelligent acceptance, four projects have been included in autonomous region AI typical scenarios, and smart factory construction has achieved remarkable results. The deep integration of digital and intelligent technologies is accelerating green and low-carbon transformation. During the reporting period, the company’s comprehensive energy consumption per 10,000 yuan of output decreased by 9.42% year-on-year, maintaining the top spot among national coal-to-olefins water efficiency leaders, and Wind ESG rating rose to AA. From “traditional manufacturing” to “green intelligent manufacturing,” Baofeng Energy is redefining the sustainable development path of coal chemical industry.

Looking ahead, with the continuous quality improvement of the Ningxia Ningdong base, full operation of the Inner Mongolia base, and steady progress of the Xinjiang Zhundong 4 million-ton/year project, Baofeng Energy’s “tripod” coordinated development pattern has taken shape. More importantly, the company is accelerating its shift from “scale-driven” to “product-driven” development. The increased output of high-value-added products such as high-end polyolefins and EVA will help the company break out of the red ocean of common materials, opening up a broader profit blue ocean, and delivering better performance to investors, serving national energy strategies, and leading high-quality development in the modern coal chemical industry.