Ningxia Baofeng Energy Group Co., Ltd. issued a positive profit alert on July 14, estimating that net profit attributable to shareholders for the first half of 2026 will land in the range of 9.3 billion yuan to 10.2 billion yuan, representing year-on-year growth of approximately 62.65% to 78.40%.
Excluding non-recurring items, attributable net profit is projected at 8.7 billion yuan to 9.6 billion yuan, an increase of 55.93% to 72.06%. In the same period last year, the company reported attributable net profit of 5.72 billion yuan and adjusted net profit of 5.58 billion yuan.
The company attributed the strong earnings growth to two main factors. First, geopolitical conflict in the Middle East during the first half of 2026 pushed up global prices of key chemical feedstocks such as oil and alkanes, leading to higher market prices for chemical products and improving the profitability of the company's olefin products. Second, the Inner Mongolia olefin project reached full production in April 2025, resulting in a significant year-on-year increase in both production and sales volumes during the first six months of 2026.
The preliminary estimates were prepared by the company's finance department and have not been audited by certified public accountants. The company stated that there are currently no material uncertainties that would affect the accuracy of the forecast, but the final financial data will be disclosed in the official 2026 semi-annual report, and investors are cautioned about investment risks.