In the face of macroeconomic uncertainties, Chinese companies have shown more resilience. On the evening of March 21, the 2023 annual report disclosed by Baofeng Energy (600989, SH), a leading enterprise in the whole industrial chain of high-end coal-based new materials in China, further demonstrated the background and quality of the company's high-quality development.
In 2023, Baofeng Energy will achieve operating income of 29.1 billion yuan, a year-on-year increase of 2.5%, net operating cash flow of 8.7 billion yuan, a year-on-year increase of 31.2%, and a net profit of 5.9 billion yuan after deducting non-profits.
Baofeng Energy's high-end coal-based new materials circular economy industrial cluster
Not only is the operating data and financial indicators stable, but Baofeng Energy's achievements in energy technology self-reliance and self-reliance, cultivation and development of new quality productivity are also remarkable. Relying on the innovation-driven strategy, Baofeng Energy continues to improve the energy technology innovation system, and strives to build an energy science and technology innovation highland, and its projects are "the world's largest" and create a number of "industry firsts", which fully reflects the company's innovation ability and future development potential.
The 2023 annual report reflects the remarkable achievements of Baofeng Energy's high-quality development, the 2023 annual report highlights the vivid practice of Baofeng Energy's innovative development and continuous breakthroughs, and the 2023 annual report also shows the bright future of Baofeng Energy to climb the peak of the industry.
The operating indicators are stable
Key projects have been accelerated
Judging from the annual report data, Baofeng Energy will achieve stable development in 2023. For the increase in revenue, Baofeng Energy said that it was mainly due to the commissioning of the third phase of the olefin project and the increase in sales of olefin products.
During the reporting period, Baofeng Energy's industrial layout was further optimized and upgraded, and the overall production and sales volume increased steadily. The company's Ningdong Phase III with an annual output of 1 million tons of coal-to-olefins has been put into production, ranking second in the world. The annual sales volume of polyethylene was 830,000 tons, a year-on-year increase of 18.2%, and the sales volume of polypropylene was 750,000 tons, a year-on-year increase of 14.1%.
At the same time of achieving development, Baofeng Energy actively gave back to the shareholders of the company, and decided to distribute a cash dividend of 2.048 billion yuan based on the total share capital of 7.314 billion shares after deducting the repurchased shares. Among them, small and medium-sized shareholders will distribute a cash dividend of 0.3158 yuan per share, and major shareholders will distribute a cash dividend of 0.2650 yuan per share.
In fact, if you take a closer look at Baofeng Energy's 2023 annual report, you will find that this company has had many development highlights and highlights in the past year.
For example, in terms of the construction of major projects, the Ningdong Phase III coal-to-olefins and C2-C5 and mixed hydrocarbon value-added utilization project of the olefin branch company was completed and put into operation, becoming the world's first olefin project using the third-generation 1 million ton DMTO unit of the Dalian Institute of Chemical Physics of the Chinese Academy of Sciences. In addition, the company's coal and coke division, Sima Liantai Coal Mine and Hongsi Coal Mine, have added a total of 1 million tons/year of coal production capacity, and the company's coal production capacity will increase by a total of 1.96 million tons/year in 2023, a year-on-year increase of 24%.
What is particularly noteworthy is that the construction speed of the world's largest single-plant olefin plant in Inner Mongolia Baofeng is amazing, once again showing the "Baofeng speed". The project is scheduled to be put into operation in the fourth quarter of 2024, when Baofeng Energy's total olefin production capacity will increase to 5.2 million tons/year, making it the world's leading coal-to-olefins industry.
In addition, Baofeng Energy continues to extend the chain and strengthen the chain, building the world's largest coal-to-EVA project, using the industry's top BASELL high-pressure tubular process technology, and the technical and economic indicators in the design of the process package have reached the international advanced level, with high yield and low energy consumption.
With the completion of major projects such as needle coke, vinyl acetate, and green hydrogen to green ammonia, Baofeng Energy will form coal-to-olefins and fine chemical industry clusters to promote the comprehensive transformation and upgrading of circular economy industrial clusters, and make new contributions to further filling the gap of domestic high-end products, realizing product import substitution, and ensuring national energy security.
Driven by innovation
New quality productivity is surgingly stimulated
In the past year, new quality productivity has become a hot word and a high-frequency word. In the field of energy, the new quality productivity is manifested in the profound innovation of traditional energy production and consumption patterns, and is committed to guiding and promoting the flow and integrated development of new production factors such as new technologies, new forms of business and new models to the energy field, so as to promote the efficient use of energy, green and low-carbon transformation and sustainable development.
As a leading enterprise of high-end coal-based new materials in China, Baofeng Energy takes innovation as the core and industry as the carrier to embark on a new growth path with higher technical level, better quality, higher efficiency and more sustainability, so as to establish new core competitive advantages and actively build a new frontier of high-quality productivity in the field of energy resources.
The annual report data further clarifies Baofeng Energy's innovation-driven strategy, and the company's R&D investment will continue to increase in 2023, with R&D expenditure reaching 431 million yuan, an increase of 185.76% year-on-year. From the perspective of R&D investment, Baofeng Energy has truly achieved "real investment, dare to invest, and invest big".
Innovation is placed at the logical starting point and core of Baofeng Energy's development. Through the 2023 annual report, investors can find that scientific and technological innovation has become the first driving force for Baofeng Energy's development.
In terms of product technology innovation, Baofeng Energy strengthened the construction of R&D system, actively promoted industry-university-research cooperation, promoted the implementation of the first set of new technologies of million-ton DMTO, developed and built an intelligent coal blending system, continued to promote the R&D and trial production of new olefin and coke products, and completed the implementation of scientific research projects on methanol fine residue reduction and resource utilization.
In Baofeng Energy, the "traces" of innovation can be seen everywhere. In view of the particularity of low-temperature heat surplus in coal chemical industry, Baofeng Energy has developed a water electrolysis hydrogen production device and system that can respond quickly. Focusing on industrial transformation and upgrading, Baofeng Energy focuses on the research and development of new technologies for hydrogen production by electrolysis of water from photovoltaic new energy, explores a new model of integrated development of new energy and modern coal chemical industry, accelerates the development process of replacing fossil energy with new energy, and has gradually developed into a world-class supplier of coal-based new materials and a manufacturer of "green hydrogen".
The construction site of the world's largest single-plant olefin plant in Baofeng, Inner Mongolia
Continuous efforts in exchange for valuable returns, a number of "first", "first" and "largest" further demonstrate Baofeng Energy's leading position in the industry. For example, Inner Mongolia Baofeng is the world's first and first to replace fossil energy with green hydrogen for large-scale production of green high-end chemical products, and is the world's largest producer of green methanol and green olefins; it has demonstrated the application of the latest technologies in six industries to lead the green and low-carbon development of modern coal chemical industry and help the high-end climb of "Made in China" To achieve import substitution of high-end equipment for modern coal chemical industry, boost the upgrading of the mainland's high-end equipment manufacturing industry, and boost the "Made in China" to "Created in China".
Stable business performance and strong scientific and technological innovation capabilities have won more market attention and recognition for Baofeng Energy. In the past month, a number of brokerages have released research reports on Baofeng Energy. Among them, the research report of Tianfeng Securities gave Baofeng Energy a buy rating, mainly due to the decline in raw material costs, continuous efforts to reduce costs and increase efficiency, and the steady progress of key projects.
The so-called past is a prologue. For the future development, Baofeng Energy is full of confidence. Looking forward to the future, Baofeng Energy will continue to focus on major national strategies, actively integrate into and serve the construction of a new development pattern, expand and strengthen the coal-to-polyolefin industry, deepen the fine chemical industry, promote the integrated development of the new energy industry and the modern coal chemical industry, and continue to contribute to the promotion of Chinese-style modernization.