The glory of modern coal chemical industry
There is an important transformation of supply-side structural reform and high-quality development inside, and there are major changes unseen in a century outside, and internal and external factors work together. The Fifth Plenary Session of the Nineteenth Central Committee of the Party is at the right time to carry out this historic turning point. A solemn calibration and solemn declaration.
Time is a melting pot, extracting the essence and depositing dross, which is fully reflected in the development of the modern coal chemical industry. During the "Thirteenth Five-Year Plan" period, my country’s modern coal chemical industry has gone through more than ten years of turmoil and the market is forced by the falling international oil prices. Pioneer enterprises with high-quality development stand out and enter the fast lane of Yiqi Juechen. Among them, Ningxia Baofeng Energy Group Co., Ltd. is an outstanding representative. Put into operation a number of high-level modern coal chemical production lines in the world, adhere to green manufacturing, and become the first domestic modern coal chemical listed company with a market value of nearly 100 billion yuan. Based in Ningdong, looking at the world, we will open a deep layout... in China's modern coal chemical industry Successfully climbed to the top during rapid development. The "13th Five-Year Plan" has become a precious glorious journey for Baofeng Energy.
The enterprise is the main body of the market and the main carrier for representing the country in participating in international competition and demonstrating the country's strength. For the country to be prosperous and the society to progress, this is the last word for enterprise development. On July 21, 2020, when President Xi Jinping presided over a symposium on entrepreneurs, he expressed his earnest hopes for promoting entrepreneurship and enhancing entrepreneurs’ patriotism: “Entrepreneurs love the country in many ways, but first of all, it is good to do well. enterprise."
Changhuai Industry’s feelings of serving the country’s innocent children, holding high the banner of revitalizing the national industry, based on China’s resource endowment of rich coal, lack of oil, and less gas, centered on the actual needs of ensuring the country’s energy and raw material safety, with a circular economy model as the core, green and smart Develop into two wings, explore a new way of clean and efficient use of coal with Chinese characteristics, and build a technologically advanced, world-leading high-end coal-based new material leader. This is Baofeng Energy's unwavering purpose and follow. During the "13th Five-Year Plan" period, especially in 2020, under the unfavorable environment of low oil prices and product price fluctuations, China's coal chemical industry once fell into a dormant downturn, but Baofeng Energy burst out with a steady stream of vitality, retrograde, creating miracles of development.
Since naphtha to olefins is still the mainstream process globally, the prices of polyethylene and polypropylene have a certain degree of correlation with crude oil prices. Crude oil prices fell overall from the second half of 2014 to the end of 2015, with a significant drop of more than 70%. During this period, the price of polyethylene and polypropylene in my country fell from a high point close to 12,000 yuan/ton to below 8,000 yuan/ton. From the end of 2015 to the end of 2017, with the rise of international crude oil prices, the prices of polyethylene and polypropylene also adjusted back to more than 9,000 yuan/ton. In 2020, international oil prices have seen an epic dive, and are hovering at a mid-to-low level of more than 40 US dollars per barrel.
Affected by the petrochemical price system, although my country’s modern coal chemical industry has achieved large-scale growth during the 13th Five-Year Plan period, in addition to outstanding coal-to-olefin companies achieving stable profits, industrialized coal-to-liquid, Modern coal chemical routes, such as coal-to-gas and coal-to-ethylene glycol, generally only remain on the line of meager profit or even loss.
The sea is flowing, and the heroic character is even more evident. It is in this industry background that Baofeng Energy has handed in a dazzling "13th Five-Year" report card. In 2015, the end of the "Twelfth Five-Year Plan", the company's total assets were 26.264 billion, revenue was 7.081 billion, total profit was 1.684 billion, and actual tax payment was 252 million. By the end of the "13th Five-Year Plan" period, Baofeng Energy is still advancing despite the impact of the new crown epidemic, and the momentum of rapid development has continued to increase.
According to the company’s forward periodic report, in the first three quarters of 2020, the company’s total assets were 36.689 billion yuan, an increase of 10.19% over the end of the previous year; operating income was 11.299 billion yuan, a year-on-year increase of 15.93%; net profit was 3.152 billion yuan, a year-on-year increase of 11.27% ; The net cash flow from operating activities was 3.708 billion yuan, a year-on-year increase of 57.76%. The company’s existing production capacity includes: 7.5 million tons/year coal, 11 million tons/year coal washing, 4 million tons/year coke, 4 million tons/year methanol, 600,000 tons/year polyethylene, 600,000 tons/year Annual polypropylene, 780,000 tons/year fine chemicals, and more than 13,000 employees. In the company's main business, the scale of polyolefin production and the resulting operating performance have successfully doubled on the basis of 2015. At the same time, this year, with the launch of the 3 million tons/year coking polygeneration project, the clean capacity of the company's coking business has almost doubled. This is the speed and record of Baofeng, which is well-known in China's coal chemical industry.
Since entering the modern industrial revolution, the West has dominated the process of human industrial civilization, and China has created and led the development of a major basic industry. There are only a handful of situations in which China’s entity enterprises in the modern coal chemical industry have become outstanding worldwide. represent. After nearly 20 years of continuous hard work and exploration, China’s modern coal chemical industry system has become more abundant and prosperous. It has become a unique and beautiful business card for the Chinese chemical industry, and a new force that cannot be ignored in the global chemical industry. Become an outstanding representative of China's advanced and high-end manufacturing industry.
There must be a leader in the wild geese formation; the horses galloping in the air, take the reins. With the rise and growth of an industry, the leading role of leading companies is unquestionable. In a sense, the significance of leading companies to an industry lies in "defining" the industry with benchmarking. For the emerging modern coal chemical industry in China, in the early stages of development, the industry was mainly defined by the first batch of central enterprises and state-owned enterprises that entered the energy sector. With the development of the modern coal chemical industry in the "13th Five-Year Plan" entering the mid-term, a number of extraordinary private enterprises have sprung up in adversity, provoking more responsibility to define the industry. Baofeng Energy is an outstanding representative of the definition of China's modern coal chemical industry during the 13th Five-Year Plan.
The "Golden Triangle" of energy and chemical industry (Ningdong-Yulin-Ordos) is the core area of China's modern coal chemical industry. Baofeng Energy entered the Ningdong Energy and Chemical Base in 2006 and is one of the companies that entered the Ningdong Base early. The Baofeng Ningdong base is planned to cover an area of 14,000 mu. It adheres to the development route of large-scale, integrated, high-end, raw material self-sufficiency, and product differentiation. The circular economy industrial cluster integrating propylene and fine chemicals has realized the quality, classification, clean, and efficient utilization of coal resources, truly squeezed coal resources, and replaced petroleum to produce more than 100 kinds of high value-added chemical products. .
During the "13th Five-Year Plan" period, Baofeng Energy has built or planned a number of industry-leading production lines with firm confidence and forward-looking vision, which has become a powerful carrier and evidence that defines China's modern coal chemical industry. In 2016, the construction of the second phase of Baofeng 600,000 tons/year olefin project (hereinafter referred to as the second phase) was officially launched, and the world's largest coke oven gas and coal-to-gas combined olefin production plant was built.
In October 2019, the second phase of Baofeng Energy's second-stage methanol-to-600,000-ton/year polyolefin project was completed and put into operation, and the company's polypropylene and polyethylene production capacity doubled. Among them, the polyethylene device of the project adopts the Chevron Phillips double-loop tube slurry process, which can produce bimodal polyethylene products and metallocene polyethylene products. The current import dependence of bimodal polyethylene products is above 50%.
In June 2020, the previous 2.2 million tons/year methanol project of the second phase of the project was successfully started up at one time, and the front and back sections of the project were opened up. It is particularly worth mentioning that the 2.2 million tons/year coal-to-methanol project uses the world’s largest single set of 2.2 million tons/year methanol synthesis tower and the domestically large 105,000 standard cubic meter/hour air separation unit, Larger methanol scrubbers in the domestic coal chemical industry have consolidated Baofeng's material foundation for defining China's modern coal chemical industry.
The equipment is changing and the technology is changing, but what remains unchanged is Baofeng Energy's persistence and dedication to "clean, low-carbon, safe and efficient". Since the planning and construction of Baofeng Energy, safety and environmental protection have always been regarded as the "lifeline", and strive to ensure that no coal is seen in coal mining, water is not drained, and soot does not fall to the ground. During the "13th Five-Year Plan" period, Baofeng Energy's coal-to-olefin production capacity doubled, but its total profit increased by nearly three times; it was awarded the 2019 petroleum and chemical industry coal-to-olefin energy efficiency "leader" benchmark enterprise and national "green factory" , To become an outstanding model of internal excellence and external beauty of coal chemical enterprises.
In accordance with the trend of industrial chain extension and product differentiation and high-end development, Baofeng Energy has also made an active layout in the "13th Five-Year Plan". Relying on advanced equipment and technological advantages, Baofeng Energy is also continuously accelerating innovation, enhancing the level of high-end differentiation of products, and striving to reduce my country's foreign dependence on polyolefin products. Since the beginning of this year, Baofeng Energy has successively launched 10 new brand products including thin-walled injection molding materials, high-density polyethylene hollow materials, high-strength bimodal film materials, and linear polyethylene special materials for weather-resistant greenhouse films, which have brought on the market. At the same time, it has also led to the upgrading and upgrading of products in my country's modern coal chemical industry.
Baofeng Energy also has extraordinary innovation leadership in the layout of new energy. In April 2020, Baofeng Energy spent 1.4 billion yuan to start construction at the Ningdong base to build a large-scale solar energy electrolytic water hydrogen storage and comprehensive application demonstration project in the world. At the same time, it will expand the application fields of hydrogen energy in an all-round way, realize the multi-scenario and integrated development of the hydrogen energy industry chain, and create a new chapter in green and low-carbon development. After all the projects are put into production, it can reduce coal resource consumption by 254,000 tons and carbon dioxide emissions by approximately 445,000 tons per year.
Born and grown in Sri Lanka, Ningdong base is the foundation and blessed land of Baofeng Energy. In the 15 years since the establishment of the company, the previous generations of Baofeng people have dedicated all their hard work and years to Ningdong. At the end of the "13th Five-Year Plan", Baofeng Energy plans a new chapter of development with a global perspective, opens up a broader new world in the energy and chemical "Golden Triangle", and strives to build Baofeng Energy into the world's excellent modern coal-to-olefin supplier And service providers.
On July 1 this year, Baofeng Energy issued an announcement announcing that it would establish a subsidiary in Inner Mongolia. The subsidiary is located in Wushen Banner, Ordos City, Inner Mongolia. The construction content is 4 million tons/year coal-to-olefins and downstream extension projects. After the completion of the project, Baofeng Energy’s total polyolefin production capacity will exceed 6.2 million tons per year, and its coal-to-olefin production capacity ranks among the top in the world. It will play a major role in filling the gap in my country’s polyolefin supply and at the same time further extend Baofeng Energy and coal chemical industry circular economy industrial chain, consolidation of the company’s scale advantage and industry leader status, and improvement of the company’s overall profitability and sustainable development capabilities will all play a key role, which will promote the deep conversion and processing of coal resources in the Ordos region. Utilizing, expanding and strengthening coal-to-olefins and downstream high-end new materials and fine chemical industry clusters will also play a leading role in promoting and leading.
In the year of the epidemic, all industries are struggling. Why did Baofeng Energy dare to expand investment against the trend at this time? Baofeng Energy Chairman Dang Yanbao believes that the crisis inevitably breeds opportunities, and crisis and opportunity have always been dialectical and unified. At present, there is still a relatively large gap in domestic polyolefin supply. In the future, with the advancement of new infrastructure construction, new urbanization construction, and strengthening of major projects such as transportation and water conservancy, polyolefin consumption will continue to increase, and the market space will be broad. Under this basic premise and logic, the more the cycle is low and the market is down, the more it is conducive to the introduction of high-end technology in the industry, and the investment and construction costs are lower than usual. Based on the accurate judgment of the industry situation, coupled with the low debt ratio of the company, the low cost of bank funds for new projects, and relying on a mature professional team, Baofeng Energy has the courage to make a counter-trend layout.
The launch of the Inner Mongolia project means that Baofeng Energy has entered a new era of "Ningdong + Ordos" dual center development. On September 23 this year, as the first major project launched in Ningxia to build the Yellow River Basin ecological protection and high-quality development pilot area, Baofeng Energy’s 500,000 tons/year coal-to-olefin project officially started construction, and the construction of 500,000 tons/year was started simultaneously. Comprehensive utilization of carbon three to carbon five to olefin project. After the completion of the project, it will add 1 million tons of polyolefin production capacity each year, increasing the annual polyolefin production capacity of Baofeng Energy’s Ningdong base to 2.2 million tons and the annual production capacity of methanol to 6.4 million tons. The advantages of integration and scale will be increased. It is more prominent, the profit-making ability is further enhanced, and the advantages of leading enterprises in high-end coal-based new materials are more obvious.
Based on Ningdong and facing the world to build an excellent modern coal chemical industry leader, Baofeng Energy has drawn up the blueprint in the final year of the "13th Five-Year Plan", and the future can be expected.
The leading "dark horse" of the capital market
Taking the lead in the "Golden Triangle" to advance into the capital market, becoming a public company, and using the power of finance and capital to achieve the second take-off of the company is another monument worth engraving in Baofeng Energy's "13th Five-Year Plan" period.
On April 18, 2019, Baofeng Energy obtained the approval of the China Securities Regulatory Commission for its first A-share listing; On May 16, Baofeng Energy successfully listed on the Shanghai Stock Exchange and landed on the Chinese A-share capital market. The listed company raised a total of 8.155 billion yuan, mainly invested in the above-mentioned second phase coke gasification to 600,000 tons/year olefin project. With its low-cost, high-profit outstanding performance and more modern operating style, Baofeng Energy has introduced a new era of new style to the coal chemical industry. In this sense, Baofeng Energy can be called the "dark horse" of China's coal chemical industry.
In 2019, the gross profit margin of Baofeng Energy's coke products reached 45.33%, and its profitability was higher than that of major domestic coke companies; the gross profit margin of coal-to-olefin companies was generally below 15%, and Baofeng Energy reached 44.09%. Overall, in 2019, Baofeng Energy’s operating profit rate was 34.14%, total return on assets was 15.67%, weighted average return on equity was 19.3%, and cost and expense margin was 48.58%, not only in all listed coal chemical companies It stands out, even if it is placed among all the more than 4,000 listed companies in China, it is equally beautiful.
So, what is the unique gene of Baofeng Energy as the absolute leader in the modern coal chemical industry? The answer can be found from multiple dimensions, but the key is that Baofeng has opened up a new track that others cannot match. Baofeng Energy’s Ningdong base has a total planned investment of more than 70 billion yuan. One-time planning, centralized layout, and step-by-step implementation have integrated a complete industrial chain of “from a piece of coal to a bag of plastic raw materials” in the same park. Each production device The layout is compact and public and auxiliary facilities are shared, which greatly saves construction costs. Compared with other non-integrated enterprises of the same size, the investment can be saved by more than 30%.
Comprehensive advantages such as large-scale industrial chain, integrated construction, and high raw material self-sufficiency rate have brought Baofeng Energy a significant cost and competitive advantage. At the same time, looking forward to the fourth wave of industrial revolution, Baofeng Energy also takes the lead in laying out in the fields of informatization, automation, digitization, and intelligence. It plans to systematically introduce advanced technologies such as 5G to create a new "smart factory" of artificial intelligence and industrial interconnection. Realize disruptive changes in traditional coal chemical industry.
Bravely take responsibility, fulfill responsibilities, assist in tough tasks
This year is the closing year of the "13th Five-Year Plan", and it is also the goal of our country’s struggle for the past century.