BAOFENG ENERGY(SH:600989) Zheng Quan Shi Bao Wang·2025-09-22 09:48Core Viewpoint - The modern coal chemical industry plays a crucial role in ensuring national energy security while facing challenges of green transformation under the "dual carbon" goals during the "14th Five-Year Plan" period [1][2]. Industry and Company Research Industry Positioning - The modern coal chemical industry is strategically important for energy security in China, particularly in the context of high dependence on oil imports. The industry aims to replace oil with coal for producing high-end chemical materials [2]. - The industry is undergoing a transformation to enhance self-sufficiency and reduce reliance on imported high-end chemical products [2]. Company Initiatives - Baofeng Energy has established the largest and most complete modern coal chemical industrial cluster in China, located in Ningxia and Inner Mongolia, which produces over 100 types of chemical products [2]. - The company’s annual production capacity of 5.2 million tons of polyolefins can replace nearly 30 million tons of oil imports and over 5 million tons of high-end polyolefins imports, addressing supply issues in the industry [2]. Technological Advancements - Baofeng Energy focuses on domestic innovation to overcome reliance on imported high-end equipment, achieving 23 core technologies and equipment that meet international standards [3][4]. - The company has set global records in several production metrics, including the largest scale of coal-to-olefins single plant and the highest capacity for coal gasification [3]. Green Development - The company has pioneered a "green hydrogen coupling" model, integrating clean energy into coal chemical production to reduce carbon emissions [6]. - Baofeng Energy's solar-powered hydrogen production project generates high-purity green hydrogen, which is used to produce green methanol and other products, thus addressing the industry's carbon footprint [6]. Digital Transformation - The company is leveraging AI, big data, and IoT technologies to enhance operational efficiency and safety in production processes [7]. - Baofeng Energy has developed an AI-based coal blending platform that optimizes raw material ratios, leading to reduced costs and improved efficiency [7]. Social Responsibility - Baofeng Energy has contributed significantly to local economies through tax payments and job creation, with a total tax contribution of 10.918 billion yuan and over 7,000 new jobs created from 2021 to 2024 [8]. - The company has also engaged in extensive charitable activities, providing financial support to students in need, with a total donation of 5.038 billion yuan [8]. Future Outlook - The modern coal chemical industry is moving towards greener, smarter, and higher-end development, with Baofeng Energy aiming to become a global supplier of new materials [9].