Ningxia Baofeng Energy Group (600989) H1 2024 earnings summary

Executive summary

• Achieved revenue of RMB 16.90 billion in H1 2024, up 29.09% year-over-year, with net profit attributable to shareholders of RMB 3.30 billion, up 46.44% year-over-year.

• Polyolefin/olefin production rose sharply, driven by the launch and ramp-up of the third-phase olefin project, significantly increasing output and profit.

• Major new projects advanced, including the third phase olefin project and Inner Mongolia coal-to-olefin project, with significant milestones achieved.

• R&D investment exceeded 4% of revenue, with RMB 740 million invested in H1 2024.

Financial highlights

• Operating income: RMB 16.90 billion (+29.09% YoY); net profit attributable to shareholders: RMB 3.30 billion (+46.44% YoY).

• Operating profit was RMB 4,165 million, a 47.01% year-over-year increase.

• Basic and diluted EPS: RMB 0.45 (+45.16% YoY).

• Total assets grew to RMB 81.85 billion, a 14.27% increase from the start of the year.

• Gross margin improved due to lower coal prices and higher polyolefin output.

Outlook and guidance

• Inner Mongolia coal-to-olefin project to begin trial production in October 2024, with 70% of investment already paid.

• Fourth phase Ningdong olefin project in early preparation.

• All financial data are preliminary and unaudited, with final figures to be disclosed in the official half-year report.