Summary of Baofeng Energy Conference Call Company Overview - **Company**: Baofeng Energy - **Industry**: Coal-to-olefins and petrochemicals Key Points Financial Performance - In Q2 2025, Baofeng Energy achieved a record net profit of nearly 3 billion yuan, with a non-GAAP net profit of 3 billion yuan, an increase of over 400 million yuan from Q1 [4][2] - Operating cash flow significantly improved to 4.6 billion yuan, primarily used for dividends, share buybacks, and repaying high-interest debt [11][2] Olefin Business - The olefin business contributed nearly 2.6 billion yuan in net profit, with sales of polyolefins and EVA reaching 1.33 million tons, a historical high, up 280,000 tons quarter-on-quarter [2][4] - Inner Mongolia's production capacity utilization improved, with July's operating load exceeding 110%, and a monthly output surpassing 280,000 tons [6][2] - The Ningdong base experienced a slight decrease in output due to maintenance, but overall production is expected to increase under normal operating conditions [7][2] Cost and Profitability - The price difference for coal-to-olefins and single-ton profitability saw a decline due to falling product prices, although upstream coal prices decreased, offsetting some impacts [8][2] - Inner Mongolia's cost control was effective, with single-ton net profit rising to around 2,000 yuan, while Ningdong's net profit slightly decreased to about 1,700 yuan due to maintenance impacts [9][2] Capital Expenditure and Debt Management - Capital expenditures significantly decreased to 900 million yuan in Q2, with a total planned investment of 10.5 billion yuan for the year, most of which will occur next year [11][2] - The company plans to distribute a 2 billion yuan interim dividend in the second half of the year and aims to further reduce debt [11][2] Industry Dynamics - Domestic coal-to-olefins technology continues to advance, with the Ningdong Phase III project adopting third-generation DMTO technology, providing a competitive cost advantage [5][2] - The closure of some petrochemical plants in Europe and Northeast Asia is expected to optimize the global supply-demand balance [22][2] - The "anti-involution" policy is likely to lead to a dynamic adjustment of production structures in state-owned enterprises, positively impacting the petrochemical industry [23][2] Future Outlook - The company anticipates a strong and certain dividend capability moving forward, with a focus on reducing debt and increasing shareholder returns [27][2][28] - The coal price fluctuations since Q3 have had a limited overall impact on costs, with the coal-coke sector benefiting from price recovery [12][2][13] Project Developments - The Xinjiang project is awaiting approval, with the company focusing on expanding production capacity and enhancing product differentiation [16][17][26] - The investment amount for the Ningdong Phase IV project is planned at 10.6 billion yuan, differing from public reports [15][2] Market Supply and Demand - The domestic polyethylene and polypropylene market has a total capacity of approximately 80 million tons, with coal-to-olefins capacity accounting for about 20% [21][2] - New capacity additions are expected to replace high-cost oil-based routes, with limited impact on prices due to ongoing losses in oil-based production [21][2] Conclusion - Baofeng Energy is positioned for growth with strong financial performance, effective cost management, and strategic project developments, while navigating industry challenges and opportunities.

Core Viewpoint - Guohai Securities report indicates that Baofeng Energy achieved a net profit attributable to shareholders of 5.718 billion yuan in the first half of the year, representing a year-on-year increase of 73.02% [1] Financial Performance - In Q2 2025, the company realized a net profit of 3.281 billion yuan, showing a year-on-year increase of 74.17% and a quarter-on-quarter increase of 34.64% [1] - The significant growth in Q2 performance is attributed to the full production capacity of the Inner Mongolia project [1] Future Outlook - The company is expected to see increased revenue and profit in Q3 2025, driven by the planned completion and full production of the 2.6 million tons/year coal-to-olefins and 400,000 tons/year green hydrogen coupling olefins project in Inner Mongolia [1] Dividend Policy - For the first half of 2025, the company plans to implement a semi-annual cash dividend of 0.28 yuan per share, amounting to 2.036 billion yuan, which accounts for 35.62% of the net profit attributable to shareholders for the first half of the year [1] Industry Position - The company is recognized as a leading player in the coal-to-olefins sector, with multiple projects progressing in an orderly manner, indicating strong growth potential [1]

Group 1 - The report highlights investment opportunities in AI applications, particularly in the midstream data services and downstream sectors like AI+Media, AI+IT software, and AI+Healthcare, which show structural growth potential [3][4] - The domestic AI application market is shifting towards a focus on fundamentals, emphasizing actual returns, with potential catalysts for growth including new model releases and decreasing computing costs [4][3] - The report indicates that the overall market trend for domestic AI applications is weaker than computing power, but there are still structural opportunities in individual stocks [4] Group 2 - The report on Xingfa Group indicates a stable performance in Q2 2025, with revenue reaching 14.62 billion yuan, a year-on-year increase of 9.07%, despite a decline in net profit [6][7] - The company has a strong position in the phosphate market, with high prices maintained and a significant increase in revenue from mining operations [8][9] - The acquisition of a 50% stake in Qiaogou Mining is expected to enhance the company's phosphate resource advantages, increasing its total mining rights to 58 million tons [12][13] Group 3 - The report on General Motors shows that the company is advancing mixed-ownership reforms, with a significant increase in revenue to 4 billion yuan in H1 2025, despite a sharp decline in net profit due to international trade barriers [16][17] - The company is expanding its international presence with projects in Thailand and Cambodia, which are expected to enhance its competitive edge in the global market [19] Group 4 - The report on Stanley indicates a dual increase in volume and profit, with revenue of 6.39 billion yuan in H1 2025, a year-on-year increase of 12.66%, driven by phosphate exports [21][22] - The company is focusing on optimizing its product structure and expanding its online retail presence, which has seen significant growth [23][24] Group 5 - The report on New Mile shows a significant decline in revenue to 1.588 billion yuan in H1 2025, primarily due to the impact of medical insurance and centralized procurement policies [28][29] - The company anticipates a recovery in growth in the second half of 2025, supported by strategic restructuring and operational efficiency improvements [30] Group 6 - The report on Hualu Hengsheng indicates a decline in revenue to 15.764 billion yuan in H1 2025, with a focus on innovation and cost reduction to navigate a challenging market environment [31][32] - The company is actively pursuing new projects to enhance production efficiency and market competitiveness [37]

Core Viewpoint - Baofeng Energy has experienced significant growth in its performance in the first half of the year, benefiting from increased production capacity and a decline in product prices that is less than the drop in raw material costs [1][2] Group 1: Financial Performance - In the first half of the year, the average selling price of polyethylene and polypropylene was 6730.7 yuan/ton and 6423.3 yuan/ton, respectively, reflecting a year-on-year decrease of 5.3% and 3.7% [1] - The average procurement price of gasification raw coal was 446.87 yuan/ton, down 20.5% year-on-year, contributing to improved profitability in the polyethylene business due to stable selling prices and significantly reduced costs [1] - The Inner Mongolia olefin project contributed a gross profit of 3.4 billion yuan, accounting for 43% of the company's overall performance in the first half of the year [2] Group 2: Production Capacity and Projects - The company is actively advancing new capacity construction, with the Ningdong Phase IV project under construction and expected to be operational by the end of 2026 [1] - The Inner Mongolia project has been completed and is fully operational, producing 1.1635 million tons of polyethylene, which represents 48.39% of the company's total polyethylene output [2] - The company has established production capacities of 30,000 standard cubic meters/hour for green hydrogen and 15,000 standard cubic meters/hour for green oxygen at its Ningdong base, with the electrolysis water hydrogen project in Inner Mongolia already under construction [1]

Core Viewpoint - Baofeng Energy's stock has shown a positive trend in 2023, with significant revenue and profit growth reported for the first half of the year, indicating strong operational performance and investor interest [1][2]. Group 1: Stock Performance - On September 9, Baofeng Energy's stock price decreased by 2.01%, reaching 17.57 CNY per share, with a trading volume of 5.21 billion CNY and a turnover rate of 0.40% [1]. - The company's total market capitalization is 128.47 billion CNY [1]. - Year-to-date, Baofeng Energy's stock has increased by 8.79%, with a 2.93% rise over the last five trading days, a 15.59% increase over the last 20 days, and an 8.79% rise over the last 60 days [1]. Group 2: Financial Performance - For the first half of 2025, Baofeng Energy reported operating revenue of 22.82 billion CNY, a year-on-year increase of 35.05%, and a net profit attributable to shareholders of 5.72 billion CNY, reflecting a 73.02% year-on-year growth [2]. - Since its A-share listing, Baofeng Energy has distributed a total of 17.35 billion CNY in dividends, with 9.14 billion CNY distributed over the past three years [2]. Group 3: Shareholder and Institutional Holdings - As of June 30, 2025, Baofeng Energy had 63,000 shareholders, an increase of 2.29% from the previous period, with an average of 116,356 circulating shares per shareholder, a decrease of 2.24% [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 202 million shares, an increase of 22.26 million shares from the previous period [2].

宁夏宝丰能源集团股份有限公司董事会议事规则 宁夏宝丰能源集团股份有限公司 董事会议事规则 （五） 制订公司增加或者减少注册资本的方案、发行债券或其他证券及 上市方案； （六） 拟订公司重大收购、收购本公司股票或者合并、分立、解散及变 更公司形式的方案； （七） 在股东会授权范围内，决定公司的对外投资、收购出售资产、资 产抵押、对外担保事项、委托理财、关联交易、对外捐赠等事项； （八） 决定公司内部管理机构的设置； （九） 决定聘任或者解聘公司总裁、董事会秘书及其他高级管理人员， 第一章 总则 第一条 为规范宁夏宝丰能源集团股份有限公司（以下简称"公司"）董 事会的议事方式和决策程序，促使董事和董事会有效地履行其职责，提高董事会 规范运作和科学决策水平，完善公司治理结构，根据《中华人民共和国公司法》 （以下简称"《公司法》")和《宁夏宝丰能源集团股份有限公司章程》（以下简称 "《公司章程》"）及其他有关法律法规、部门规章、上海证券交易所股票上市规 则和其他规范性文件的规定，结合公司实际情况，制定本规则。 第二条 董事会由 9 名董事组成，设董事长 1 人，董事长由董事会以全 体董事的过半数选举产生。董事会成员中 ...

宁夏宝丰能源集团股份有限公司独立董事工作制度 宁夏宝丰能源集团股份有限公司 独立董事工作制度 第一章 总则 第一条 为进一步完善宁夏宝丰能源集团股份有限公司（以下简称"公司"或 "本公司"）治理结构，促进公司规范运作，切实保护股东利益，有效规避公司决 策风险，根据《中华人民共和国公司法》（以下简称"《公司法》"）、《上市公 司治理准则》《上市公司独立董事管理办法》》《上海证券交易所股票上市规则》 （以下简称"《上市规则》"）、《上海证券交易所上市公司自律监管指引第 1 号 ——规范运作》《宁夏宝丰能源集团股份有限公司章程》（以下简称"《公司章程》"） 及其他有关法律法规、部门规章和业务规则，制定本工作制度。 第二条 本制度所指独立董事是指不在公司担任除董事外的其他职务，并与本 公司及主要股东、实际控制人不存在直接或者间接利害关系，或者其他可能影响其 进行独立客观判断关系的董事。独立董事应当独立履行职责，不受本公司及本公司 主要股东、实际控制人等单位或者个人的影响。 第三条 独立董事对公司及全体股东负有忠实与勤勉义务。 第七条 《公司章程》中关于董事的规定适用于独立董事，本制度另有规定的 除外。 第二章 独立董 ...

宁夏宝丰能源集团股份有限公司对外担保管理制度 宁夏宝丰能源集团股份有限公司 对外担保管理制度 第一章 总则 第一条 为保护广大投资者特别是中小投资者的合法权益，加强宁夏宝丰能源 集团股份有限公司（以下简称"公司"）的银行信用和担保管理，规避和降低经营 风险，根据《中华人民共和国公司法》（以下简称"《公司法》"）、《中华人民 共和国证券法》（以下简称"《证券法》"）、《中华人民共和国民法典》（以下 简称"《民法典》"）、《上海证券交易所股票上市规则》（以下简称"《上市规 则》"）、《上市公司监管指引第 8 号——上市公司资金往来、对外担保的监管要 求》和《宁夏宝丰能源集团股份有限公司章程》（以下简称"《公司章程》"）及 其他有关法律法规、部门规章和业务规则，制定本制度。 第二条 本制度适用于公司及公司的全资、控股子公司（以下简称"控股子公 司"）。 第三条 本制度所述的"对外担保"是指公司以自有资产或信用为其他单位或 个人提供的保证、资产抵押、质押以及其他形式的对外担保，包括公司对控股子公 司提供的担保。所称"公司及其控股子公司的对外担保总额"，是指包括公司对控 股子公司担保在内的公司对外担保总额与公司控股子公 ...

宁夏宝丰能源集团股份有限公司对外投资管理制度 第三条 公司所有对外投资行为必须符合国家有关法律法规及产业政策，符 合公司的经营宗旨、发展战略和发展规划，有利于拓展主营业务，优化产业结构， 有利于提高核心竞争力，实现可持续发展，有利于提高公司的整体经济利益。 公司对外投资应遵循合法、审慎、有效的原则，控制投资风险。 第四条 公司对外投资由公司集中进行，控股子公司确有必要进行对外投资 的，需事先经公司批准后方可进行。公司对控股子公司及参股公司的投资活动参 照本制度实施指导、监督及管理。 第二章 投资决策及披露 第五条 公司对外投资的决策机构主要为股东会、董事会或董事长。具体权 限划分如下： （一）公司对外投资达到下列标准之一的，须经董事会审议通过后提交股东 会审议： 宁夏宝丰能源集团股份有限公司 对外投资管理制度 第一章 总则 第一条 为了加强宁夏宝丰能源集团股份有限公司（以下简称"公司"）对外 投资活动的管理，规范对外投资行为，防范对外投资风险，提高对外投资效益， 根据《中华人民共和国公司法》（以下简称"《公司法》"）、《上海证券交易所股 票上市规则》（以下简称"《上市规则》"）》和《宁夏宝丰能源集团股份有限公 ...

宁夏宝丰能源集团股份有限公司募集资金管理制度 宁夏宝丰能源集团股份有限公司 募集资金管理制度 第一章 总则 第一条 为了规范宁夏宝丰能源集团股份有限公司（以下简称"公司"）募 集资金的管理和运用，保护广大投资者特别是中小投资者的合法权益，依照《中 华人民共和国公司法》《中华人民共和国证券法》《上市公司证券发行注册管理 办法》《上海证券交易所股票上市规则》《上市公司募集资金监管规则》《上海 证券交易所上市公司自律监管指引第 1 号——规范运作》和《宁夏宝丰能源集团 股份有限公司章程》（以下简称"《公司章程》"）及其他有关法律法规、部门 规章和业务规则，结合公司实际情况，特制定本制度。 第二条 本制度所称募集资金是指公司通过发行股票或者其他具有股权性质 的证券向投资者募集并用于特定用途的资金，但不包括公司实施股权激励计划募 集的资金。 第三条 募集资金涉及信息披露事宜的，按照相关法律法规及《宁夏宝丰能 源集团股份有限公司信息披露管理制度》执行。 第四条 公司控股股东、实际控制人及其他关联人不得直接或者间接占用或 者挪用公司募集资金,不得利用公司募集资金及募集资金投资项目获取不正当利 益。公司发现控股股东、实际控制 ...