南岭民爆(002096CH)APPENDIX 1Summary●The company is mainly engaged in the production,research and development and sales of civil explosive materialsand military products,engineering blasting services and other businesses.Through years of intensive cultivation in thearea with Hunan as the core,the company has covered the entire industrial chain of research and development,production,sales and blasting services in the field of civil explosives.The product market has been distributed in South China,Southwest,Northwest and other regions.As a commercial manufacturer of civil explosive materials with the core positionin the regional industry,the company's products and services include industrial explosives,industrial detonators,industrialdetonators,industrial detonators,military detonators and other products and integrated civil explosive system integrationservices.The above products are applied to mining,infrastructure construction and other engineering blasting services.Themilitary products operated by the company are military initiating explosive devices,etc.,which are tertiary supportingproducts of military industry.The company's engineering blasting business can provide blasting design and construction,safety assessment,safety supervision and other services for various blasting engineering projects.The company's logisticstransportation includes the transportation services of civil explosive products and other products.In addition,the companytakes advantage of initiating explosive devices to expand its fire protection products.It includes the fire initiating deviceaccessories series,the fire finished products series,such as various types of fire extinguishers,and the provision of publicbuses,tunnel intelligent fire extinguishing systems and other products.In the first three quarters of 2022,the deduction ofnon-net profit was 29.35 million yuan,a year-on-year decrease of 41.22%.In the first three quarters of 2022,the companyachieved operating revenue of 1.619 billion yuan,a year-on-year increase of 20.67%,and net profit attributable to theparent company of 37.15 million yuan,a year-on-year decrease of 41.22%.In the third quarter of 2022,the operatingrevenue was 548 million yuan,up 12.98%year on year and 8%month on month;The net profit attributable to the parentcompany was 15.33 million yuan,a year-on-year decrease of 39.94%and a month-on-month decrease of 56%;Non-netprofit deducted was 13.02 million yuan,an increase of 85.82%year on year and a decrease of 58%month on month.The company purchased 668793726 shares of China Gezhouba Group Epli Co.,Ltd.held by China Gezhouba GroupCo.,Ltd.,Pangang Group Mining Co.,Ltd.and 23 natural persons by issuing shares.The company has completed theissue of 752005914 shares to Gezhouba,Panzhihua Iron and Steel Group Mining Co.,Ltd.and 23 natural persons.The listingdate of the new shares is February 3,2023.Gezhouba holds 538032152.00 shares of the company,accounting for 47.90%of the total share capital of the company.At present,EPOLl is the largest professional company engaged in the"integration"service of on-site mixed explosive production and blasting construction in China.So far,it has a complete civilblasting industry chain integrating research and development,production,sales,transportation,and blasting services.It iswell complementary to the Nanling Mountain's civil explosives in terms of capacity scale,product structure,marketchannels,and service capabilities.After the completion of the transaction,the overall mixed explosive capacity of the listedcompany will be greatly improved,and the engineering service capacity will be effectively improved.After the completionof this transaction,the permitted explosive production capacity of the Nanling Mountain Civil Explosive Management willreach nearly 560000 tons,becoming the top listed company in China's civil explosive industry and occupying the leadingposition in the industry development.In addition,the market layout and sales channels of the new company after thetransaction is completed will also be greatly optimized.According to the restructuring arrangement,after the completion ofthe transaction,Gezhouba will hold about 536 million shares of the Nanling Mountain Civil Explosive,accounting for 47.46%and will become the direct controlling shareholder of the listed company.The actual controller is the State-owned AssetsSupervision and Administration Commission of the State Council.The indirect shareholding ratio of Hunan SASAC wasreduced to about 21.34%.The concentration of civil explosive industry will continue to increase.In July 2022,the Ministry of Industry andInformation Technology issued the Notice of the Safety Production Department of the Ministry of Industry and InformationTechnology on Further Improving the Promotion and Application of Digital Electronic Detonators,It is proposed to stopproduction and sales of ordinary industrial detonators by the end of June 2022 and other industrial detonators other thanindustrial digital electronic detonators by the end of August 2022,in strict accordance with the work requirements of the"Fourteenth Five-Year Plan for the Safety Development of the Civil Explosives Industry",which is determined in the"Fourteenth Five-Year Plan".Impact on the company:the structural surplus of civil explosives has not been fundamentallyresolved,and the deep-seated contradiction of irrational structure has seriously restricted the development quality of thecivil explosives industry.In order to realize the long-term,high-quality and safer development of the civil explosive industry,it is necessary to accelerate the supply-side structural reform,promote the optimization and upgrading of the industrialstructure,and accelerate the realization of power,efficiency and quality changes.28Feb20232