BAOFENG ENERGY(SH:600989) Chang Jiang Shang Bao·2025-08-25 00:41Core Viewpoint - Baofeng Energy, a leading enterprise in efficient coal-based new materials in China, reported strong mid-year results for 2025, with significant increases in revenue and net profit driven by higher production and sales of polyolefins [2][3]. Financial Performance - In the first half of 2025, Baofeng Energy achieved operating revenue of 22.82 billion yuan, a year-on-year increase of 35.05%, and a net profit attributable to shareholders of 5.718 billion yuan, up 73.02% [2][3]. - The company’s main product, polyolefins (including EVA), saw production reach 2.4046 million tons, a substantial year-on-year growth of 96.64% [4]. - The comprehensive gross margin for the first half of 2025 was 36.74%, an increase of 3.14 percentage points, while the net profit margin reached 25.06%, up 5.5 percentage points [4]. Shareholder Returns - Baofeng Energy plans to distribute a cash dividend of 0.28 yuan per share, totaling 2.036 billion yuan, which represents 35.62% of the net profit for the period [4]. - Cumulatively, the company’s total dividends since its listing in 2019 will reach 17.35 billion yuan if the current dividend is executed [4]. Operational Highlights - The company’s cash flow from operating activities showed a net inflow of 7.99 billion yuan in the first half of 2025, an increase of 92.74% year-on-year [4]. - Baofeng Energy has been actively repurchasing shares, having bought back 60.5934 million shares, accounting for 0.83% of the total share capital, with a total expenditure of approximately 1 billion yuan [5]. Project Development - The company successfully launched new projects, including a 2.6 million tons/year coal-to-olefins project in Inner Mongolia, which is the largest of its kind globally and utilizes green hydrogen technology [6]. - Baofeng Energy's olefin production capacity has reached 5.2 million tons/year, positioning it as the leader in China's coal-to-olefins industry [6]. - Ongoing projects include the Ningdong Phase IV olefin project, which is progressing well and is expected to be completed by the end of 2026 [7]. R&D Investment - Baofeng Energy has significantly increased its R&D investment, totaling 1.768 billion yuan over the past three and a half years, focusing on product and process innovation [6][7].