Ningxia Baofeng Energy Co., Ltd. has all its built coal mines running at full capacity, with a combined annual capacity of 8.2 million tonnes, the company said on an investor platform.

All self-produced coal from Baofeng Energy is used for coking production after washing, with average  yield ranging 50-55%. The company's olefins business relies entirely on purchased coal, while its coking operations meet 40%-50% of coal demand from self-produced coal, with the remainder sourced externally. Baofeng Energy's coke products are mainly used in the steel smelting industry.

Baofeng Energy's core business is coal-to-olefins (ethylene and propylene), producing polyolefins (polyethylene and polypropylene) and ethylene-vinyl acetate copolymer (EVA) from olefins.

Polyolefins, the world's most consumed synthetic resin, are essential basic materials for national economic development, widely used in packaging, agriculture, construction, automotive, home appliances, textiles, electronics and healthcare.

Leveraging low-cost coal resources in northwest China, Baofeng Energy has seen a clear cost advantage in coal-to-olefins. Combined with the ramp-up of its Inner Mongolia olefins project, higher sales volumes and optimized raw material costs, the company achieved "volume growth and profit expansion", with net profit attributable to shareholders expected at 9.3-10.2 billion yuan in the first half, up 63%-78% year on year.

Baofeng Energy also said its 110,000 Nm3/h air separation unit, jointly developed with Hangyang Co., is the largest single-train unit domestically produced. Its core technological advantages include "ultra-large capacity, high localization and intelligent operation", achieving domestic replacement of ultra-large air separation compressor units. The liquid oxygen and liquid nitrogen produced are mainly used for the company's own chemical production.

Ningxia Baofeng Energy Group Co., Ltd., a leading green manufacturer of high-end chemical materials, has built China's largest, most complete and most technologically advanced modern coal chemical circular economy industrial cluster at the Ningdong and Ordos national energy bases.

The cluster produces over 100 chemical products through closely linked upstream and downstream chains, achieving resource conservation and clean, efficient utilization. Its annual capacity includes 300 million cubic meters of green hydrogen, 7 million tonnes of coke, 14 million tonnes of methanol, 6 million tonnes of polyolefins and 1.35 million tonnes of fine chemicals, replacing over 30 million tonnes of oil imports and nearly 6 million tonnes of olefin product imports annually.