The fundamentals are solid, and the momentum for incremental growth is strong. YipuLi will deliver an impressive performance in 2025.

On March 27, Yipuli, a leading company in the civil explosives industry, released its latest annual report. Faced with multiple pressures—including intensifying market competition, accelerated industrial transformation, and challenges from safety risk— the company responded proactively and implemented precise measures. Key production and operating indicators achieved a historic breakthrough of “five consecutive increases” during the 14th Five-Year Plan period. Core indicators such as new contract value and “one profit and five ratios” were all completed at a high quality against the annual targets, delivering an excellent performance.

A stable base in mine operations, with strong momentum in expanding civil explosives incremental growth

According to available information, Yipuli was established in 1993, originating with the launch of the Three Gorges Water Conservancy Project. The company has a complete industrial chain covering civil explosives products R&D, production, sales, blasting services, mine engineering general contracting, and green smart mine construction. It is a specialized central enterprise civil explosives company with the largest scale for on-site mixed loading explosives production and blasting integration services in China.

In the latest disclosed annual report, in 2025, Yipuli achieved operating revenue of RMB 9.832 billion, up 15.05%; it achieved net profit attributable to shareholders of RMB 0.793 billion, up 11.16%; net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 0.718 billion, up 6.81%; and net cash inflow from operating activities was RMB 0.8 billion, up 20.07% year over year.

Achieved operating revenue of X billion yuan, up X%; achieved net profit attributable to shareholders of X billion yuan, up X%; gross margin, cash flow……（awaiting updates）

The continuous strengthening of the core battlefield of mine engineering services is an important foundation for Yipuli’s performance growth. In 2025, Yipuli achieved comprehensive and on-time contract renewals for existing projects in key regions such as Inner Mongolia, Shanxi, and Henan, ensuring a stable base of existing projects. Meanwhile, emerging regions such as Ningxia, Hubei, and Guangxi, as well as high-quality incremental projects along the “Belt and Road” routes—including countries such as Namibia and Liberia—were successfully implemented. With new incremental tracks, multiple points bloomed.

In addition, the company has continued to optimize its business structure. The revenue share of the mine construction general contracting business has kept rising; the revenue share of the mine construction general contracting business surpassed 50%, making the market layout more rational. Its affiliated units have focused deeply on their primary responsibilities and businesses, strengthening their regional responsibility and commitment, forming a good momentum of “deepening domestically, expanding outward overseas, with equal efforts across existing and incremental growth.”

For civil explosives products, the company has actively built a win-win development framework of competitive cooperation with industry leading enterprises and production companies in neighboring provinces. It implements precise customer targeting and analysis, orderly exits low-efficiency markets, and promotes the concentration of resources in high-value areas. The market share in traditional advantaged regions has remained stable, while momentum for opening up incremental markets has been strong, and market share has grown steadily. Throughout the year, the release rate of industrial packaged explosives production capacity increased steadily, and its profitability improvement capability was significantly enhanced.

In the international market, the company has actively responded to the initiative to co-build the “Belt and Road,” keeping pace with the overseas expansion of Chinese enterprises. Its business footprint covers multiple “Belt and Road” countries including Namibia, Liberia, Pakistan, and Malaysia. As an early mover and a leading enterprise in the internationalization of China’s civil explosives industry, the company has fully leveraged the advantages of its central state-owned enterprise brand, the operation of high-end resources, and market development capabilities in regions such as Southeast Asia, Africa, and South America. Its international operation level and international competitiveness have improved steadily.

Technological innovation leads the way; digital intelligence empowers growth

To continuously explore new drivers of growth, Yipuli focused on innovation and promoted transformation. In 2025, the company held a high-standard inaugural conference on scientific and technological innovation, sparking an innovation drive across the entire workforce and achieving notable results during the year.

First, breakthroughs were made in key technology research and development. The annual report shows that the mixed-loading ammonium-oil explosive truck completed its overall assembly and commissioning. A high-altitude tunnel-specific mixed-loading emulsion explosive equipment was selected for the promotional catalogue of the first major technology equipment (a set) of China Energy Engineering Corporation, demonstrating the strong “hard-core” capability of a central enterprise in technological self-reliance and strength.

Second, the role as a source of original technology has been significantly strengthened. As disclosed, relevant technologies related to ordinary-type on-site mixed-loading water gel explosives and coal-based F-T products achieved original breakthroughs from “0” to “1.” The high-power type on-site mixed-loading water gel explosive successfully filled the domestic gap, and key core technologies such as “EDF2 coal mine permissible electronic detonators” have reached internationally advanced levels.

By the end of 2025, Yipuli had a total of 833 effective patents, including 194 invention patents (including 1 international PCT patent); 555 utility model patents; 3 design patents; and 81 software copyrights.

Behind these series of innovative achievements is Yipuli’s R&D system and scientific research strength. The annual report shows that the company has established technology innovation platforms such as a national postdoctoral research workstation and provincial-level engineering research centers. It added a provincial postdoctoral innovation and entrepreneurship practice base in Hunan, and jointly built a “Green and Smart Mine Joint R&D Center” with Wuhan University of Technology. The company collaborates with renowned universities and research institutions such as Wuhan University of Technology, Central South University, and the National Key Laboratory of Precision Blasting, conducting industry-academia-research cooperation. It undertakes national natural science foundation projects, provincial and ministerial-level key projects, and open fund projects of the National Key Laboratory of Precision Blasting.

While driving original innovation from the source, Yipuli has also actively seized opportunities in intelligentization. It has consolidated consensus across the entire workforce for transformation, systematically enhanced its digital-intelligent thinking and artificial intelligence application capabilities, and built a composite talent team that understands technology and excels at management.

In terms of specific initiatives and achievements, the company has comprehensively rolled out digital scenario applications. It has built 18 digital employees and 17 intelligent agents. The “Smart Xiao E” has been deployed efficiently. “Blasting robots” and “unmanned mine dump trucks” were successfully selected as group-level artificial intelligence demonstration scenarios. The “On-site mixed-loading vehicle management system based on Internet of Things technology” was recognized as a typical digital transformation case for key scenarios by the Ministry of Industry and Information Technology.

In addition, Yipuli leads the industry paradigm. It released the first green and intelligent development white paper for general contracting of open-pit coal mine construction. It systematically summarizes and publishes the company’s innovative practices and standards system for promoting the greening and intelligentization of mine construction, providing an “Yipuli solution” for the industry’s transformation and upgrading.

Incremental opportunities for civil explosives enterprises remain; unique competitiveness is favored by institutions

At present, leading enterprises in the civil explosives industry are accelerating their strategic transformation toward becoming “integrated mine service providers.” The game among large mine service enterprises has entered the decisive stage. Enterprises are upgrading comprehensively into a multidimensional integrated contest spanning technology, market, capital, resources, and qualifications. Mine construction and service through smart mines has become the focus of competition in the industry.

Meanwhile, industry demand remains substantial. According to statistics from the China Explosive Ordnance Industry Association, in 2025, civil explosives industry production companies cumulatively achieved total profit and taxes of RMB 12.271 billion; cumulatively achieved total profits of RMB 9.313 billion; and cumulative achieved blasting service revenue of RMB 39.691 billion, up 12.64% year over year. Momentum behind the growth of blasting service revenue remains strong.

Yipuli mentioned that during the “15th Five-Year Plan” period, driven by a new round of strategic actions for breakthroughs in mineral exploration, the development speed of metal and non-metal mines will be accelerated, and a new round of water conservancy investment and construction in key areas will be continuously advanced. As a result, domestic demand for civil explosives products and services will receive stable support. Under the broader policy environment of deep implementation of the “Belt and Road” initiative and the strategy of securing supply of key minerals, Chinese mining enterprises will speed up their overseas expansion of mining rights resources. This will create historic opportunities for domestic civil explosives enterprises to expand overseas markets and open up more incremental space during the “15th Five-Year Plan” period.

In addition, a research report by China International Capital Corporation—Changjiang Securities notes that it still looks favorably on the company’s unique competitiveness in the Tibet region. In the first three quarters of 2025, the output value of civil explosives enterprises in Tibet was RMB 420 million, with a year-on-year growth rate as high as 26.9%, still leading the nation. Yipuli has already set up Tibet Engineering Co., Ltd. and a Nyingchi branch in Tibet. In the future, it will actively expand business in large open-pit mine exploitation and national key engineering construction areas.

Yipuli stated that, in response to the forward-looking layout of the “15th Five-Year Plan,” it will continue to uphold a market-first approach and innovation-driven development. It will focus on strategic emerging industries of the nation, accelerate the implementation of the “mine energy integration” strategy, and build a second growth curve. At the same time, leveraging digital and intelligent transformation as a key enabler, it will reshape a new paradigm for industry development, and fully build itself into a leading enterprise in China’s civil explosives industry and the main force in smart mine construction and services. It will steadily move toward the goal of building world-class green, smart civil explosives and mine service providers.