Maliantai Coal Mine is a branch of a publicly listed company, located in Zone B of the Baofeng Circular Economy Industrial Park within the Ningdong Base. Its mining area spans 24.7 square kilometers, with coal resources estimated at approximately 240 million tonnes, consisting primarily of 1/3 coking coal and gas-fat coal. The mine commenced operations in 2008, and in 2023, its annual production capacity was increased from 3.6 million tonnes to 4 million tonnes. It serves as a core operating mine for the group, with extraction costs that rank among the lowest in the industry. In 2023, the 30303 coal face at Maliantai Coal Mine was developed into the group’s first intelligent mining face and successfully passed inspection. This achievement marked a breakthrough in the independent design, installation, and extraction processes for high-seam mining faces. With this milestone, all three of the group’s active coal mines have passed national-level intelligent mine inspections. In external communications, it should be referred to as "Baofeng Energy Maliantai Coal Mine" rather than being presented as a separate, independent company.
On August 13, Ningxia Baofeng Energy Group Co., Ltd. (hereinafter referred to as "Baofeng Energy") released its 2026 semi-annual report. In the first half of the year, the company recorded an operating revenue of 30.198 billion yuan, a year-on-year increase of 32.33%, and a net profit of 9.728 billion yuan, up 70.14% year-on-year. Both revenue and net profit saw significant growth, reaching new highs for the first half of the year since the company’s public listing in 2019. Liu Yuanguan, President of Baofeng Energy, stated to a reporter from *Securities Daily* that as a domestic leader in the coal-to-olefins sector, the company’s strong performance in the first half of the year is driven by its cost advantages in coal-to-olefins production and the scale benefits resulting from continuous capacity expansion. With further capacity growth, Baofeng Energy’s total polyolefin production capacity is set to reach 6 million tons by the end of 2026. This will not only support the company’s continued growth but also contribute more effectively to national energy security and the transformation and upgrading of the energy structure. Baofeng Energy’s core business involves the production of olefins (ethylene and propylene) from coal, which are then used as feedstock to manufacture polyolefins (polyethylene and polypropylene) and ethylene-vinyl acetate (EVA) copolymers. Polyolefins represent the most widely consumed synthetic resins globally and serve as essential foundational materials for the national economy. As of the end of 2025, Baofeng Energy’s coal-to-olefins production capacity accounted for approximately 34% of the national total, ranking first in the industry. According to the semi-annual report, the company’s output of its primary products—polyolefins (including EVA)—reached 2.9731 million tons in the first half of the year, an increase of 23.64% year-on-year. Meanwhile, coke production reached 3.4681 million tons, a year-on-year increase of 1.47%. Publicly available information indicates that olefins can be produced via various routes, including oil-based, gas-based, and coal-based processes. Oil-based production remains the mainstream method, while coal-based production represents a distinct, advantageous route specific to my country. In the first half of 2026, profit margins varied significantly across these different production pathways. Oil-based olefin and propane dehydrogenation (PDH) processes faced rising production costs due to increased prices for feedstocks such as crude oil and propane, leading to a year-on-year decline in profit margins. According to data from JLC (Jinlianchuang), the average profit per ton for oil-based polyethylene fell by 527 yuan, while the average profit per ton for oil-based polypropylene dropped by 215 yuan compared to the previous year. Conversely, the coal-based olefin production route benefited from China’s abundant coal reserves and a stable, sufficient coal supply. This resulted in relatively stable production costs and a notable improvement in profit margins. JLC statistics show that in the first half of the year, the average profit per ton for coal-based polyethylene rose by 333 yuan, and the average profit per ton for coal-based polypropylene increased by 1,070 yuan. Compared to oil-based and PDH routes, the advantages of coal-based olefin production—specifically regarding supply chain security and cost competitiveness—have become even more pronounced. Liu Yuanguan stated that by the end of 2026, Baofeng Energy’s total polyolefin production capacity is expected to increase from the current 5.2 million tons to 6 million tons. This capacity could displace over 30 million tons of crude oil imports annually—equivalent to approximately 5% of China’s total national oil imports. Given my country’s resource endowment—characterized by "abundant coal, scarce oil, and limited gas"—and its continued high dependence on imported oil and gas, this expansion will provide vital industrial support for ensuring national energy security and facilitating the transition of the country’s energy structure. According to Baofeng Energy’s semi-annual report, the company’s net cash flow from operating activities for the first half of 2026 reached 11.964 billion yuan—a year-on-year increase of 49.74%. The company plans to distribute 3.055 billion yuan in cash dividends for the period, representing 31.4% of its net profit for the same timeframe. Zhang Xiaofeng, a professor at the School of Economics at Beifang University of Nationalities, noted in an interview with *Securities Daily* that Baofeng Energy’s steady performance growth, combined with a high dividend payout ratio, not only provides a strong boost to market confidence but also enhances the sense of gain for investors. Liu Yuanguan stated that, as the company stands at the historic threshold of the start of the "15th Five-Year Plan" period, Baofeng Energy will continue to deepen its focus on the high-end coal chemical sector, aligning its own high-quality development with the broader national development agenda.
Recently, Ningxia Baofeng Energy Group has pioneered a dual-driven approach—combining "fund investment" with "AI technology"—to spearhead a comprehensive transition from traditional coal-based chemical production toward a model centered on "green energy and digital intelligence." This initiative has successfully forged a new path for industrial transformation and upgrading, offering a replicable and scalable "Baofeng Model" for similar enterprises to follow. It also underscores the robust innovative vitality of businesses operating within the Ningdong Industrial Base. This strategic layout serves as a vivid embodiment of the development philosophy championed by Baofeng Energy Chairman Dang Yanbao: "empowerment through technology and innovation for a greener future." Baofeng Energy focuses on two core objectives—green, low-carbon development and digital-intelligent efficiency—by pursuing targeted breakthroughs across multiple fronts. Regarding the transition to green energy, the company is replacing fossil-fuel-based feedstocks with green hydrogen. It is prioritizing the R&D and production of green methanol, green ammonia, and green olefins, thereby driving a low-carbon transformation of its production processes. In terms of digital and intelligent upgrades, the company employs AI-driven coal blending technology to effectively reduce production costs and enhance operational efficiency. Simultaneously, through an industrial acceleration fund, Baofeng Energy is fast-tracking the localization of green hydrogen equipment and accelerating technological iteration. This effort aims to drive down the cost of green hydrogen, facilitating its gradual, comprehensive replacement of "grey" hydrogen (hydrogen produced from fossil fuels). This initiative—replacing coal-based hydrogen and imported LNG with green hydrogen—not only alleviates energy supply pressures but also supports the Ningdong Base in achieving its "dual carbon" (carbon peaking and carbon neutrality) goals. It provides a practical, viable pathway for the green transformation of the traditional coal-chemical industry, serving as a compelling testament to how enterprises at the Ningdong Base are embracing innovation-led development. Under the precise guidance and robust support of the "science-and-technology finance" service system established by the Ningdong Base Administrative Committee, the "Beijing Stock Exchange-Lingyue No. 2 Equity Fund"—spearheaded by Baofeng Energy—has successfully completed its business registration, with a total capital of 96.6 million RMB. The fund focuses strategically on three high-potential sectors: artificial intelligence, new energy, and high-end chemicals. Its core mission is to leverage AI technology to foster a deep integration between green hydrogen and the coal-chemical industry, driving a major industrial upgrade. By acting as a resource bridge, the fund enables the company to transcend the limitations of relying solely on internal R&D, seamlessly connecting external innovation vitality with internal industrial applications. Looking ahead, Baofeng Energy will continue to advance its "Fund + AI" dual-engine strategy. By increasing investment in scientific and technological innovation and accelerating its green, low-carbon transition, the company aims to establish itself as a world-class green energy technology enterprise, making an even greater contribution to national energy security and high-quality economic and social development.
On June 16, at the conference center of the Baofeng Energy Inner Mongolia Coal-Based New Materials Industrial Base in Uxin Banner, Ordos City, over 100 guests gathered—including Liu Zhongmin, Academician of the Chinese Academy of Engineering and Director of the Dalian Institute of Chemical Physics (Chinese Academy of Sciences); Jin Zhijun, Academician of the Chinese Academy of Sciences and Dean of the Institute of Energy at Peking University; and Dang Yanbao, Chairman of Baofeng Energy, a leading enterprise in the high-end coal-based new materials sector. The attendees included prominent technical experts from China’s coal-chemical industry; representatives and technical leaders from organizations such as Aerospace Changzheng, China Tianchen, SEI, the Guangzhou Research Institute of Sinopec, and various national-level research institutions; executives from major equipment manufacturers like Zhenhai Petrochemical, Shenyang Blower Group, Lanzhou Lanshi, Hangzhou Oxygen Plant Group, and Zhangjiagang Chemical Machinery; leaders from top-tier construction and installation firms such as China National Chemical Engineering and CNPC Jilin; as well as representatives from several investment institutions. Together, they explored significant industrial breakthroughs—driven by "new quality productive forces" and independent technological innovation—that enable the production of polyolefins from coal as a substitute for petroleum. The participants also assessed how these achievements contribute to strengthening the foundations of national energy security and empowering the "manufacturing powerhouse" strategy, pooling their collective wisdom to help ensure a secure and stable energy supply for my country. Aligned with the national strategies of building a "strong energy nation" and a "manufacturing powerhouse," as well as the strategic deployment for the National Modern Energy Economy Demonstration Zone in Inner Mongolia, Baofeng Energy has invested 67.3 billion yuan in a coal-based new materials demonstration project. The first phase—completed and put into operation in just 18 months—is the world’s largest single-site industrial complex that utilizes coal as a feedstock to replace petroleum for the production of polyethylene and polypropylene. With an annual output capacity of 3 million tons of olefins, 1.5 million tons of polyethylene, and 1.5 million tons of polypropylene—accounting for 23.4% of China’s total national production—the project enjoys significant cost advantages and market competitiveness compared to petroleum-based olefin production. Experts in attendance offered high praise, noting that the Inner Mongolia Baofeng coal-based new materials project has set new industry benchmarks in terms of production scale, construction duration, equipment substitution, and energy consumption costs. Its technological sophistication leads the world, providing a replicable and scalable model for the deep integration of large-scale operations and industrialization within the coal-chemical sector. Furthermore, since the 20th National Congress of the Communist Party of China, this project has stood out as the modern coal-chemical initiative in Inner Mongolia with the largest investment, the fastest implementation, and the shortest construction cycle. Baofeng Energy has consistently strengthened its focus on technology-led development and independent innovation, driving both technical transformation and industrial upgrading within the modern coal-chemical sector. For its project in Inner Mongolia, the company forged strategic partnerships with prominent national-level research institutions and equipment manufacturers—including China Aerospace, the Chinese Academy of Sciences (CAS), Hangyang, Hangqi, and Shenyang Blower Works—to overcome critical technical bottlenecks and equipment constraints. The project exclusively utilizes domestically manufactured equipment, with 23 technologies reaching leading domestic or international standards. It has set five global records for the largest single-unit capacity—covering gasification, purification, methanol synthesis, methanol-to-olefins (MTO) separation coupled with steam cracking, and full-density polyethylene production—as well as three national records for the largest single-unit capacity in air separation, DMTO, and polypropylene production. This achievement marks a significant leap for my country’s modern coal-chemical industry, transitioning from a reliance on imports to independent leadership, and injecting fresh momentum into the nation’s goal of becoming a global manufacturing powerhouse. Notably, the project features the world’s largest 4,000-ton-class "Aerospace Furnace" (developed by China Aerospace), which employs 6.5 MPa pressurized pulverized coal gasification technology; this system delivers high gas output and conversion rates while reducing both oxygen and raw coal consumption, thereby lowering feedstock costs. Furthermore, by implementing the third-generation DMTO technology from the Dalian Institute of Chemical Physics (CAS), the project achieves a single-unit olefin production capacity exceeding 1 million tons, with a methanol-to-olefin consumption ratio that ranks among the best in the industry. The project also incorporates an air separation unit—developed and manufactured by Hangyang—with a capacity of 110,000 Nm³/h. This has significantly advanced the domestic R&D, design, and manufacturing of air separation equipment. Its core component, a new-generation "6+1" ultra-large-scale high-efficiency compressor unit (combining axial and centrifugal stages), stands as the largest of its kind in my country, representing a major breakthrough in the domestic substitution of large-scale air separation compressor units. It is reported that the project has maintained stable production for 4,800 consecutive hours, with an average daily output of 9,000 tons of polyolefins. The gross profit margin for olefins has remained steady at around 30%, reflecting a significant cost advantage and delivering notable economic and social benefits. By 2025, the project is projected to generate an industrial output value of approximately 30 billion yuan, contribute over 3 billion yuan in tax revenue, and provide nearly 6,000 jobs. It will serve as a robust support for optimizing my country’s energy structure, strengthening the foundations of energy security, and advancing Chinese-style modernization.
On April 27, a grand launch ceremony was held at the Ningdong Base for the construction of Baofeng Energy Storage’s cathode, anode, and electrolyte production facilities, alongside the fourth phase of Baofeng Energy’s olefin and new materials project. This initiative represents a concrete step by the Baofeng Group to implement the spirit of General Secretary Xi Jinping’s important remarks at the symposium for private enterprises, as well as the directives from the region’s third conference on the high-quality development of the private economy and the comprehensive improvement of the business environment. It aligns with the autonomous region’s “Year of Tackling Challenges for Stable Growth and Development” and demonstrates a commitment to developing “new quality productive forces” tailored to local conditions. The event underscores the responsibility and robust capabilities of the Baofeng Group—a leading enterprise in Ningxia and the broader industry—as it remains dedicated to contributing to the nation through the real economy, deepening its roots in Ningxia, and pursuing innovation-driven growth. The projects launched today represent a total investment of 31 billion yuan; once fully completed and operational, they are expected to generate an annual industrial output value of 49 billion yuan and create nearly 10,000 jobs. Advanced energy storage serves as essential infrastructure for building a modern power system and acts as a critical pillar for the integrated development of AI, computing power, and electricity—aligning perfectly with national initiatives to foster “new quality productive forces.” With an investment of 10.5 billion yuan, Baofeng’s energy storage projects—encompassing an annual production capacity of 250,000 tons of lithium iron phosphate (LFP) cathode materials, 150,000 tons of artificial graphite anode materials, and 170,000 tons of electrolyte materials, as well as 100 GWh of lithium batteries, energy storage systems, and power storage stations—are being accelerated toward completion. These facilities will form a production hub for advanced energy storage materials, anchored in Ningxia and serving the entire Northwest region and the rest of China. This hub will provide a solid foundation for Ningxia’s ambition to become a national comprehensive new energy demonstration zone and a “capital of computing power,” while supporting the development of green-energy industrial parks, large-scale new energy bases, and computing infrastructure. Furthermore, it will facilitate the construction of integrated “generation-grid-load-storage” energy systems, empower the growth of emerging and future-oriented industries, and drive the green transformation of the energy sector. Energy is a matter of national strategic importance, and the coal-chemical industry serves as a vital “ballast” for my country’s energy security. With an investment of 20.5 billion yuan, Baofeng Energy’s Phase IV olefin and new materials project stands as a key initiative in the company’s strategy to "focus on its core business and strengthen its industrial foundation." The project employs the industry’s most advanced process technologies, and all selected equipment and installations are independently developed and manufactured within my country—achieving full domestic substitution and contributing to the national goal of becoming a "manufacturing powerhouse." The project leads the industry in key performance metrics, including energy conversion efficiency, water and energy consumption, and environmental protection standards. Its output further displaces imports, solidifies the company’s position as an industry leader, and serves as a model for the high-end, low-carbon, intelligent, and green development of the coal-based new materials sector—all while making an ever-increasing contribution to safeguarding national energy security. The energy storage cathode, anode, and electrolyte production facilities, along with the Phase IV olefin and new materials project of Baofeng Energy, will effectively drive the upgrading of Ningxia’s advantageous and emerging industries. These initiatives will inject fresh momentum into the "second venture" and high-quality development of the Ningdong Industrial Base, while further contributing to the creation of a beautiful, modern Ningxia.
Ethylene-vinyl acetate (EVA) copolymer is a critical polymer material for the new energy and light manufacturing sectors. Characterized by high light transmission, aging resistance, excellent flexibility, and superior adhesive properties, it serves as the core base material for photovoltaic (PV) encapsulation films. It is also widely used in foamed products, wires and cables, hot-melt adhesives, and high-end packaging. For a long time, the supply of high-end, PV-grade EVA has been heavily dependent on imports. Leveraging its integrated coal-to-olefins industrial chain, Baofeng Energy has established a 250,000-ton-per-year EVA production facility, becoming a major domestic supplier of coal-based EVA and accelerating the localization of high-end EVA products. Located at the Ningdong Energy and Chemical Base in Ningxia, Baofeng Energy’s 250,000-ton EVA project features process parameters that meet advanced international standards. The facility offers the flexibility to switch between different product grades—such as those for foaming applications and PV encapsulation—enabling a seamless transition from foam-grade to PV-grade materials. The stable production of high-quality, PV-grade EVA effectively addresses the domestic supply gap for high-end EVA. By utilizing its comprehensive, integrated industrial chain—spanning coal, methanol, and olefins—Baofeng Energy benefits from a stable raw material supply and a significant cost advantage. Furthermore, the company incorporates a "green hydrogen" decarbonization strategy, integrating green hydrogen—produced via renewable energy sources like wind and solar—into its coal-chemical processes. This continuously reduces the carbon footprint of its products, aligning with the PV industry’s growing demand for low-carbon raw materials. In terms of market expansion, Baofeng Energy’s EVA is supplied not only to domestic manufacturers of PV encapsulation films, foamed materials, and cables, but has also successfully entered international markets, with initial shipments reaching Southeast Asia. The quality of the products has earned recognition from overseas customers, opening doors to the global polyolefin materials market. As a key component of Baofeng Energy’s high-value-added product portfolio, EVA complements the company’s other polyolefin offerings—such as HDPE, LLDPE, and PP—thereby optimizing its product structure. This transition from basic, commodity-grade materials to high-end, new-energy-focused materials not only supports the company’s strategic evolution but also provides a reliable raw material foundation for the autonomy and security of the domestic PV supply chain.
