On Mar 15th 2020, Ningxia Baofeng Energy Group Stock Co Ltd published the first annual report since the company was listed. The report showed CNY13.568bn business income for year 2019, growing by 3.95% over the previous year; and CNY3.802bn net profit attributable to listed company shareholders, a growth of 2.88%.
During the report period, Baofeng made CNY13,568,199,200 revenue, increasing by CNY515,908,900 or 3.95%. Olefin business realized CNY6,369,665,000 income, adding CNY838,277,400 or by 15.15%. This was mainly owing to the commissioning of post section of coke gasification to 600kt/a olefin project (olefin phase II), contributing 191.7kt additional sales and causing CNY1,579,249,800 revenue, but polyolefin price cut off by 12.17%, on the other hand, negatively affected the revenue by CNY740,972,400.
Up to the end of 2019, the company had furnished PE/PP capacity of 1.20Mt/a, accounting for 10.2% of the total of Chinese coal to olefin (CTO) industry. 2019 Baofeng PE/PP output totalized up to 862.9kt, accounting for 7.33% of the industry’s total.
Post section, a methanol to 600kt/a olefin unit, of Baofeng CTO phase II project designed of coke gasification to 600kt/a polyolefin capacity, was initially started up with full success in Oct 2019. The new released capacity doubled the company’s total to 1.20Mt/a, bringing obviously bigger market share; Front section of the project, coke gasification to 2.20Mt/a methanol has also reached completion of construction, expected to start up in H1 2020. The leading unit of the company’s CTO phase III planning, of 500kt/a CTO capacity, obtained registration approval from Ningxia DRC in Jan 2020.