Baofeng Energy Reports H1 2026 Net Profit of RMB 9.728B, Up 70.14%

On August 12, Baofeng Energy released its 2026 semi-annual report. During the reporting period, the company achieved operating revenue of RMB 30.198 billion, a year-on-year increase of 32.33%; net profit attributable to shareholders reached RMB 9.728 billion, up 70.14% year-on-year; and net profit excluding non-recurring items was RMB 9.21 billion, up 65.07% year-on-year. The company stated that revenue growth was mainly driven by rising chemical product prices due to geopolitical conflicts in the Middle East, as well as a significant increase in production and sales volumes following the full commissioning of its Inner Mongolia olefin project in April 2025.

During the reporting period, the company's main product, polyolefin, recorded output of 2.9731 million tonnes, up 23.64% year-on-year; coke output reached 3.4681 million tonnes, up 1.47% year-on-year. As of the end of 2025, the company's coal-to-olefin capacity accounted for approximately 34% of the national total, ranking first in the industry. The company noted that in the first half of 2026, due to Middle East geopolitical conflicts, global supplies of key chemical raw materials such as crude oil and propane were disrupted and prices rose sharply, pushing up costs across the global chemical industry chain. Oil-based olefin and PDH production routes faced increased cost pressure, with unit operating rates notably lower year-on-year and production costs substantially higher, leading to declining profit levels. In contrast, the coal-to-olefin route benefited from abundant domestic coal resources and ample, stable coal supply, maintaining high operating rates and significantly improved profit margins.

Data show that in the first half, average profit per tonne for oil-based polyethylene declined by RMB 527 per tonne year-on-year, while oil-based polypropylene saw a drop of RMB 215 per tonne. Coal-based polyethylene average profit per tonne rose by RMB 333 year-on-year, and coal-based polypropylene increased by RMB 1,070 per tonne. During the reporting period, net cash flow from operating activities reached RMB 11.964 billion, up 49.74% year-on-year. As of the end of the reporting period, the company's total assets stood at RMB 94.913 billion, an increase of 5.28% from the end of 2025; net assets attributable to shareholders of the listed company were RMB 55.205 billion, up 14.08% from the end of 2025.

As of August 13, Baofeng Energy traded at RMB 22.81 per share, with a total market capitalization of RMB 167.3 billion.