BAOFENG ENERGY(600989) 中国经营报·2025-04-02 14:01Core Viewpoint - The recent decision to revoke the qualifications of three members of the National Committee of the Chinese People's Political Consultative Conference, particularly Party Yanbao, who is the chairman of Baofeng Energy, has triggered significant market reactions, including a drop in Baofeng Energy's stock price [1][2]. Company Overview - Baofeng Energy, a leading player in the coal-to-olefins industry, has shown strong performance in recent years, with a reported revenue of 32.983 billion yuan in 2024, reflecting a year-on-year growth of 13.21%, and a net profit of 6.338 billion yuan, up 12.16% year-on-year [3]. - The company primarily focuses on producing high-end chemical products by substituting coal for oil, with key products including olefins, coking products, and fine chemicals [3]. Business Operations - As of January 2024, Baofeng Energy has invested 72.7 billion yuan in the construction of a modern coal chemical industry cluster at the Ningdong National Energy Chemical Base, with an annual production capacity covering 8.1 million tons of coal, 7 million tons of coke, 14.6 million tons of washed coal, 7.4 million tons of methanol, 3.46 million tons of olefins, and 135,000 tons of fine chemicals [3]. - In Inner Mongolia, the company has invested 67.3 billion yuan to plan a 5 million tons olefins project, with the first phase involving an investment of 47.8 billion yuan to build a 3 million tons olefins facility, including 400,000 tons of green olefins produced using a wind-solar hydrogen integration demonstration project [3]. Market Reaction - Following the announcement of the revocation of Party Yanbao's qualifications, Baofeng Energy's stock price hit the daily limit down on March 27, closing at 15.86 yuan per share, with a subsequent recovery to 15 yuan per share by April 1, resulting in a cumulative fluctuation of 8.8% [1][3]. - The company has stated that its operations are normal and that all projects are progressing as planned, with the first quarter report for 2025 scheduled for release on April 23 [1][2].