On the evening of March 15, Baofeng Energy (16-DPA), a leader in high-end coal-based new materials, released its 2019 annual report. During the reporting period, the company achieved revenue of 13.568 billion, a year-on-year increase of 3.95%; net profit attributable to parent company was 3.802 billion, year-on-year An increase of 2.88%, performance growth against the trend, in the sluggish market, most companies' performance fell sharply year-on-year in the chemical sector. As of December 31, 2019, the company's total assets reached 33.295 billion yuan, an increase of 24.10% from the beginning of the period; the net assets attributable to shareholders of listed companies reached 23.352 billion yuan, an increase of 70.67% from the beginning of the period. The company’s debt-to-asset ratio is low and the net operating cash flow is sufficient. After a large-scale dividend distribution in the mid-term, it plans to distribute another 3.2 yuan (including tax) to all shareholders of tradable shares. The total dividend is about 2.053 billion yuan, and the dividend is in A shares. Among the listed companies are at the forefront.

Doubled olefin production capacity and promoted to the ranks of the largest coal-to-olefin companies in China

In 2019, the company focused on the main business of diene, and its production capacity and output were steadily increased. In the latter part of the IPO fundraising project, the methanol-to-600,000-ton/year olefin plant achieved full production, and the annual diene production capacity was doubled to 1.2 million tons, accounting for more than 10% of the domestic coal-to-polyolefin production capacity. At the same time, product output hit a record high. The output of olefins in the first phase increased by 12% year-on-year; the output of olefins in the second phase was increased by 160,000 tons in only two months; and the coke output increased by 6% year-on-year. Baofeng Energy stated to the author that in 2020, the company's second-phase olefins will achieve full production throughout the year, and the polyolefin production plans to reach 1.25 million tons, a year-on-year increase of more than 45%.

Consolidate cost advantages and create the lowest "cost curve" in the industry

During the performance period, the company's cost advantage continued to increase, effectively resisting the impact of product price declines on the company's performance. Baofeng Energy stated that the company's current production costs for polyolefin products have been reduced by approximately 14% year-on-year, and relevant operating indicators are leading the industry. In 2020, the production cost of the company's main products is expected to be further reduced. The first stage of the IPO fundraising project-the main project of the coke gasification plant to produce 2.2 million tons of methanol per year has been completed. It is expected to be put into operation in the first half of 2020, when the methanol required for production will be fully self-sufficient; in addition, the annual production capacity of 2.4 million tons of red The four coal mines are undergoing commissioning procedures and will further increase the coal self-sufficiency rate after commissioning. It is expected that the above two projects are expected to save nearly 1.1 billion yuan in costs in 2020.

Focus on R&D, high-end and differentiated strategies to improve product structure

According to the company, Baofeng Energy has recently begun to produce a variety of new products, of which 16-DPA is the first titanium-based bimodal product in the domestic coal-to-olefin industry; it will also focus on the development of chromium-based and titanium-based polyethylene bimodal products. Products and metallocene polyethylene products. The production of new products and new materials will effectively replace imports and enhance market position.

New projects have been started one after another, and the company's growth has a strong certainty

According to the author’s understanding of the company, Baofeng Energy's third-phase olefin project plans to start construction this year. The planned olefin production capacity is 1.8 million tons/year, methanol 6 million tons/year, coke 3 million tons/year, and fine chemical products 570,000 tons/year. In 2012, the first unit of the third phase of the project will be equipped with 250,000 tons of EVA production capacity, deepening the added value of the product; at the same time, the company is also planning a 3 million tons/year coal coking polygeneration project, which has been approved by the government for the record. The company's total coking capacity will reach 7 million tons per year, making it one of the largest independent coking companies in China; the company will also start the construction of photovoltaic power generation supporting electrolytic water hydrogen production projects, exploring new energy and modern coal chemical industry integration and development model .

Liu Yuanguan, President of Baofeng Energy, said: The company has always emphasized doing a good job in the main line of business, intensively cultivated in the coal chemical industry, and refined, strengthened, and expanded the olefin industry. At the same time, we will continue to strengthen the high-end and differentiation of the company's product structure, realize the effective integration of the fine chemical industry and the olefin industry, and guide the advanced and scientific nature of the industrial layout.