Core Viewpoint - The company "Yipuli" emphasizes its commitment to technological productivity and its mission to serve national strategies, showcasing its role in significant projects like the Three Gorges Water Conservancy Project [1] Group 1: Company Background and Mission - Founded in 1993, the company has consistently adhered to its responsibilities as a state-owned enterprise, participating deeply in major national strategic projects [1] - The name "Yipuli" reflects the company's vision of being easily accessible technology and its ambition to expand internationally [1] - The company aims to embody the spirit of "not easy to achieve," uphold the responsibilities of a state-owned enterprise, and pursue excellence in quality [1] Group 2: Technological Innovation and Industry Impact - Yipuli was the first to apply mixed explosives technology in hydropower construction, promoting technological upgrades and safety in the industry [1] - The company is committed to high-quality development and aims to build a world-class civil explosives enterprise [1] Group 3: Commitment to Global Development - Yipuli is dedicated to serving global energy and infrastructure development, contributing to the modernization of China and the creation of a beautiful world [1] - The company expresses its mission through the phrase "to write for mountains and rivers, to record for rivers and lakes, and to build new achievements for the times" [1]

中国国际金融股份有限公司 关于易普力股份有限公司 2025 年度持续督导现场检查报告 中国国际金融股份有限公司（以下简称"中金公司"、"独立财务顾问"）作为易 普力股份有限公司（以下简称"易普力"、"上市公司"或"公司"）发行股份购买资 产并募集配套资金暨关联交易的独立财务顾问及持续督导机构，根据《上市公司重大资 产重组管理办法》《上市公司并购重组财务顾问业务管理办法》《深圳证券交易所股票 上市规则》《深圳证券交易所上市公司自律监管指引第1号——主板上市公司规范运作》 等有关法律、法规和规范性文件的要求，中金公司于2025年12月18日对易普力进行了现 场检查，现将本次检查的情况报告如下： 一、本次现场检查的基本情况 （一）独立财务顾问 中国国际金融股份有限公司 （二）独立财务顾问主办人 谭笑、谭畔、翁嵩岚 （三）现场检查时间 2025 年 12 月 18 日 （四）现场检查人员 王思迈 （五）现场检查手段 现场检查人员查阅了持续督导期间的股东会、董事会、监事会（2025年6月取消） 会议文件和与会议相关的其他资料；查阅了公司相关制度文件和持续督导期间的信息披 1 露文件；与公司相关人员进行了沟通；了解了公司 ...

Group 1 - The core business of the company includes research, production, sales of civil explosives, integrated blasting services, and mining construction contracting, as well as green mine construction [1] - The company has stated that it does not engage in the fireworks business and has no plans to enter this market in the future according to its strategic development plan [1]

Core Viewpoint - Yipuli (002096) emphasizes the capabilities and achievements of its wholly-owned subsidiary, Changtai Mining Explosives Company, which operates in the industrial explosives sector and has a comprehensive industrial chain [1] Group 1: Company Overview - Changtai Mining Explosives Company is a wholly-owned subsidiary of Yipuli, involved in the production and sales of industrial explosives, fine chemical products, engineering blasting, and electromechanical installation [1] - The company is recognized as a national "High-tech Enterprise" and has received multiple accolades, including being a model enterprise for the integration of information technology and industrialization in Hubei Province [1] Group 2: Innovation and Technology - Changtai Mining Explosives Company places a strong emphasis on technological innovation, actively exploring basic research and process optimization [1] - The company has achieved a total of 10 invention patents and 65 utility model patents, showcasing its commitment to product innovation [1]

Core Insights - The report emphasizes the acceleration of bidding for nuclear fusion projects and the operational launch of the Liebherr Nantong base, focusing on nuclear power and marine engineering modules [6][15][28] - The report highlights the structural recovery of infrastructure investment, particularly in Sichuan and Xinjiang, and recommends investments in low-valuation central state-owned enterprises [6][34] - The report tracks the development of cleanroom technology and the increasing capital expenditure of Taiwanese electronics companies in the U.S., indicating a trend of the Taiwanese supply chain moving to the U.S. [6][34] Group 1: Nuclear Fusion and Power Projects - The signing of a joint statement between China and France on December 4, 2025, promotes the development of nuclear power, recognizing nuclear fusion energy as a significant direction for future energy development [6][15] - The Liebherr Nantong base is expected to achieve an annual output value of CNY 560 million for nuclear modules and CNY 640 million for oil and gas energy modules, addressing the decline in traditional chemical business demand [6][28] - The report notes that the modular construction method in nuclear power can significantly shorten construction periods, with the Liebherr Nantong base now operational [6][28] Group 2: Cleanroom and Coal Chemical Industry - The report tracks the cleanroom sector, noting that TSMC plans to invest USD 165 billion in capital expenditures in the U.S., with Foxconn and Wistron also planning significant investments [6][34] - In the coal chemical sector, projects are progressing steadily, with Xinjiang remaining a primary investment area, including a 1.5 million tons/year coal-to-ethylene project [6][34] - The average price of medium and heavy plates in 13 regions decreased by 0.9%, while rebar prices fell by 1.0%, indicating a slight decline in steel prices [6][34] Group 3: Financial Tracking and Investment Recommendations - The report indicates that special bonds issued for refinancing have reached CNY 2.01 trillion, with a cumulative issuance of CNY 4.5 trillion in special bonds for the year, reflecting a 13.8% year-on-year increase [6][34] - The report recommends focusing on four main investment lines: infrastructure recovery, safety resources, technology in high-end manufacturing, and overseas business opportunities [6][34] - The funding availability rate for construction sites is reported at 59.74%, showing a slight increase from the previous week [6][34]

Core Insights - The chemical industry is entering a favorable phase driven by demand, value, and supply dynamics [5][6][7] - Global supply constraints and the exit of European capacities are expected to enhance the market environment for the chemical sector [7] Demand Drivers - Key opportunities identified in various sectors include: - Gas turbine upstream: companies like Zhenhua Co., Yingliu Co., Longda Co., and Wanze Co. [5] - Refrigerants and fluorinated liquids: companies such as Juhua Co., New Zhoubang, and Runhe Materials [5] - Energy storage supply chain: including Chuanheng Co., Xingfa Group, Yuntianhua, Batian Co., and others [5] - Semiconductor materials: companies like Yanggu Huatai, Wanrun Co., Dinglong Co., and others [5] Value Drivers - Potential for increased dividend yields in sectors such as: - Coal chemical: Hualu Hengsheng, Luxi Chemical, and Baofeng Energy [6] - Oil refining: Hengli Petrochemical, Satellite Chemical, and Sinopec [6] - Phosphate fertilizers: Yuntianhua, Yuntu Holdings, and others [6] Supply Drivers - Domestic anti-involution policies and the exit of European production capacities are expected to support the chemical industry: - PTA and polyester filament: companies like Xin Fengming and Tongkun Co. [7] - Tire manufacturing: including Sailun Tire, Zhongce Rubber, and others [7] Key Companies and Profit Forecasts - Selected companies with profit forecasts include: - Zhenhua Co. (Net profit forecast for 2025: 6.04 billion, PE: 21.8) [8] - Yingliu Co. (Net profit forecast for 2025: 4.08 billion, PE: 42.7) [8] - Longda Co. (Net profit forecast for 2025: 1.06 billion, PE: 34.9) [8] - Wanze Co. (Net profit forecast for 2025: 2.37 billion, PE: 32.9) [8] - Juhua Co. (Net profit forecast for 2025: 48.14 billion, PE: 24.4) [8] Industry Cycle Insights - The chemical industry is expected to enter a new cycle, with demand recovery and supply-side reforms driving growth [14][21] - The chemical price index has shown signs of recovery, indicating a potential upturn in the market [20][21]

Core Viewpoint - The company, Yipuli, reported significant growth in revenue and net profit for the first three quarters of 2025, indicating a strong performance and effective strategic transformation [2] Financial Performance - Revenue for the first three quarters reached 7.356 billion yuan, representing a year-on-year increase of 16.70% [2] - Net profit for the same period was 644 million yuan, showing a year-on-year growth of 22.91% [2] - The net profit growth in the third quarter alone was 36.03%, highlighting an improvement in profitability [2] Project and Order Status - The company has a sufficient backlog of orders, with key projects such as Anhui Baomei and Xinjiang Yanzhou Mining being executed efficiently [2] - The overseas market has contributed over 2 billion yuan in orders, providing a solid foundation for revenue growth [2] Strategic Transformation - The strategic transformation has shown significant results, with the mining engineering construction contracting business accounting for over 50% of total operations [2] - International business has emerged as a "second growth curve," enhancing the company's core competitiveness [2]

Core Viewpoint - Yipuli (002096) is actively engaged in military-related business through its wholly-owned subsidiary, focusing on weaponry research and production, and aims to leverage its technological and resource advantages for sustained growth in military product development [1] Group 1: Company Overview - The company possesses qualifications for research and production of military equipment, including core military products such as military pyrotechnics and military airbag devices [1] - It provides research and production services for related products while strictly adhering to military industry regulations and confidentiality requirements [1] Group 2: Strategic Focus - As a state-owned enterprise involved in civil explosives and military-related business, the company plans to continuously deepen its research and development of military-related products [1] - The company aims to inject ongoing momentum into its overall business growth through its technological accumulation and resource synergy advantages [1]

Investment Rating - The report maintains an investment rating of "Outperform" for the construction and decoration industry [3]. Core Viewpoints - The report highlights a continued decline in fixed asset investment in October, with a focus on the positive impact of moderately loose monetary policy and the acceleration of strategic project implementation [14][20]. - It emphasizes the increase in net financing of special bonds and rapid deployment of special government bonds, indicating a supportive funding environment for infrastructure projects [21][19]. Summary by Sections Industry Perspective and Investment Recommendations - The construction and decoration index rose by 0.35%, outperforming the overall A-share index by 0.53 percentage points, with notable performances in landscaping engineering and decoration sectors [13][30]. - Fixed asset investment from January to October 2025 reached CNY 408,914 billion, down 1.7% year-on-year, with infrastructure investment at CNY 203,809 billion, growing by 1.5% [14][16]. Key Company Dynamics - China Construction reported a new contract total of CNY 33,194 billion from January to October 2025, up 2.0% year-on-year [37]. - China Metallurgical Group announced a new contract amount of CNY 8,451 billion, down 11.8% year-on-year [37]. Valuation Status - As of November 14, 2025, the price-to-earnings (PE) ratios for various construction sub-sectors were as follows: housing construction at 6.64x, decoration at -24.37x, and municipal engineering at 8.14x [40].

Core Points - The stock price of Yipuli has decreased by 2.06% on November 18, trading at 13.76 CNY per share with a market capitalization of 17.068 billion CNY [1] - Yipuli's main business includes the production, research and development, and sales of civil explosive materials and military products, with a revenue composition of 75.36% from blasting services, 13.53% from industrial explosives, and 4.71% from industrial detonators [1] - For the first nine months of 2025, Yipuli reported a revenue of 7.356 billion CNY, a year-on-year increase of 16.70%, and a net profit attributable to shareholders of 644 million CNY, up 22.91% [2] Financial Performance - Yipuli's stock has increased by 18.11% year-to-date, with a recent decline of 2.62% over the last five trading days [1] - The company has a total of 33,600 shareholders as of September 30, a decrease of 6.71% from the previous period, with an average of 20,870 circulating shares per shareholder, an increase of 7.19% [2] - Since its A-share listing, Yipuli has distributed a total of 891 million CNY in dividends, with 577 million CNY distributed over the last three years [3] Market Activity - The net outflow of main funds was 6.5279 million CNY, with large orders showing a buy of 9.3201 million CNY and a sell of 15.6958 million CNY [1] - Yipuli has appeared on the "Dragon and Tiger List" once this year, with the most recent occurrence on July 23 [1] Industry Context - Yipuli operates within the basic chemical industry, specifically in the chemical products sector focusing on civil explosive products [1] - The company is associated with several concept sectors, including civil explosives, mid-cap stocks, the Belt and Road Initiative, state-owned enterprise reform, and fire safety concepts [1]