Profile of Hubei Kailong Chemical Group Co., Ltd.

 

Hubei Kailong Chemical Group Co., Ltd. (hereinafter referred to as "the Company") was established in 1994 through the restructuring of the main body of a former provincial military enterprise—State-Owned Xiangsha Chemical Plant (Designation: Factory 9615). After over 50 years of entrepreneurial development, the Company has evolved from a single local military enterprise into a diversified enterprise group. It is now the leading civil explosives enterprise in Hubei Province and a key backbone enterprise in China's civil explosives industry. The Company was listed on the Shenzhen Stock Exchange on December 9, 2015.

With a registered capital of RMB 391 million and over 4,000 employees, the Company operates 3 branch companies and holds equity in 65 subsidiary and grandchild companies. Its branches and subsidiaries are located in Xinjiang, Ningxia, Shandong, Guizhou, Liaoning, Guangdong, as well as in Wuhan, Jingmen, Xiaogan, Huanggang, and Shiyan within Hubei Province.

The Company is one of the few enterprises in China's civil explosives industry with a complete industrial chain. It has established a comprehensive development model encompassing synthetic ammonia, ammonium nitrate & compound fertilizers, civil explosives products, blasting services, mining, and dangerous & hazardous chemicals transportation. Its current production and operation are primarily organized into five major segments: Civil Explosives Products, Chemical Products, Mining Products, Engineering Blasting Services, and Modern Logistics.Civil Explosives Products Segment: Licensed production capacity for industrial explosives exceeds 280,000 tons/year (including 86,100 tons of bulk emulsion explosives), encompassing four major product types: emulsion explosives, expanded ammonium nitrate explosives, modified ANFO (Ammonium Nitrate Fuel Oil), and seismic charges. It also holds licensed production capacities for: 70.08 million digital electronic detonators; 5 million nonel detonators (for export only); 370 million meters of plastic detonating cord; 20 million meters of industrial detonating cord; and 4,500 tons of booster charges.Chemical Products Segment: Combined production capacity for ammonium nitrate and compound fertilizers is 800,000 tons/year. Synthetic ammonia production capacity is 200,000 tons/year.Mining Products Segment: Production capacity for construction aggregates is 14 million tons/year; for calcium oxide (lime) is 1 million tons/year; and for nano calcium carbonate is 50,000 tons/year.Engineering Blasting Services Segment: Operates 15 blasting companies holding various qualification levels, including 3 with Grade-A blasting qualifications.Modern Logistics Segment: Manages 11 logistics companies, comprising 10 hazardous materials transport companies and 1 dedicated railway line transport company, operating a total fleet of 336 vehicles with an approved load capacity of approximately 2,300 tons.

The Company possesses outstanding R&D capabilities and strong technical expertise, employing over 400 specialized technical personnel, including 62 with senior professional titles. It has established four major R&D institutions: Kailong Wuhan Research Institute, Wuhan Smart Agriculture Research Institute, Calcium Carbonate Products Research Institute, and Blasting Technology Research Institute. Furthermore, it has built four key technical platforms: a Provincial-level Technology Center, the Hubei Provincial Engineering Technology Research Center for Civil Explosives, the Hubei Provincial Postdoctoral Kailong Industrial Base, and the Kailong Chuxing Academician Expert Workstation. Through years of independent R&D, the Company has developed 552 new products and technologies and obtained 410 patents, including 38 invention patents.

It undertook research for national Torch Program projects on expanded ammonium nitrate seismic charges and emulsion seismic charge series. In collaboration with Nanjing University of Science and Technology, it pioneered the development of expanded ammonium nitrate seismic charges, recognized as a National New Product. Jointly developed with Shenzhen JinAobo Blasting Technology Co., Ltd., the JK-type emulsion explosive production technology and equipment filled a gap both domestically and internationally, achieving domestic leadership and international advanced levels. Its self-developed intelligent, minimally-manned production technology and equipment for emulsion explosives and seismic charges reached domestic leading levels. Collaboratively developed with Jianghan University, the Industrial Internet + Intelligent Safety Monitoring System for Civil Explosives Production and Storage achieved international advanced levels.The Company has achieved remarkable results in technological innovation. It is a National High-Tech Enterprise and a national-level demonstration enterprise of IT-OT integration. Six of its subsidiaries have successively been recognized as High-Tech Enterprises. Five subsidiaries have been selected as provincial-level "Little Giant" specialized, refined, distinctive, and innovative enterprises or provincial-level specialized, refined, distinctive, and innovative SMEs. One subsidiary was awarded the title of national-level demonstration enterprise of IT-OT integration, and one was recognized as a Hubei provincial-level demonstration enterprise of IT-OT integration. The Company has received numerous awards, including first and second prizes for Science and Technology from the China Civil Explosives Industry Association, second and third prizes for provincial-level Science and Technology Progress, and first and second prizes for municipal-level Science and Technology Progress.

The Company has established a comprehensive quality management system certified to ISO 9001:2015. Its "Kailong" brand explosives have been honored as "Hubei Provincial Famous Brand Product" and "High-Quality High-Tech Product Award for Hubei in the 60 Years of New China". The "Kailong" trademark has been recognized as a "Hubei Famous Trademark" and a "China Well-Known Trademark". "Kailong" brand seismic charges have been awarded the title of "Nationally User-Satisfied Product".

The Company firmly upholds the safety philosophy that "Safety is the foundation for the survival of the enterprise and its employees". It adheres to a people-oriented approach to strengthen safety, maintains safety through robust systems, ensures safety through rigorous inspection and assessment, and enhances safety through increased investment. It focuses on building a safety value system centered on "Safety Subconsciousness", which has been successfully patented as a management system. The Company has been consecutively awarded the title of "Hubei Provincial Red Flag Unit for Work Safety" by the Hubei Provincial Government for nine terms and was honored as one of Hubei's "Top Ten Work Safety Demonstration Enterprises" in the inaugural selection. It was recognized by the former State Administration of Work Safety as a "National Demonstration Enterprise for Safety Culture Development". The Company continuously improves its environmental management standards, actively undertakes corporate social responsibility, implements clean and civilized production, and has achieved ISO 14001:2015 environmental management system certification.

The Company continuously strengthens its corporate culture development around reform and growth. Building upon the military-industrial heritage of unity, dedication, and perseverance, it promotes core values, shapes a new image, and aspires to the corporate vision of a "Centennial Enterprise, Flagship of the Civil Explosives Industry". It has distilled its core values as "Duty, Dedication, Innovation, and Striving". It has established a "Community of Shared Values" among its middle management leaders and above, forming a "Common Set of Values" within this community. For all employees, it has instilled the work ethic of "Pursuing Excellence Every Day, Striving Upward for Everyone", making Kailong culture a powerful spiritual pillar for the Company's extraordinary development.

The Company has experienced rapid economic growth and delivered strong operational performance. It has been honored with awards such as the "China Listed Companies Golden Bull Award", "China Listed Companies Outstanding Industrial Chain Innovation Award", "Hubei Provincial Enterprise Outstanding Contribution Unit for 30 Years of Reform and Opening Up", "Hubei Yangtze River Quality Award", "Hubei Provincial Advanced Unit for Economic Efficiency", "Hubei Provincial Gold Award for Best-Selling Product in its Category", "Top 100 Hubei Manufacturing Enterprises", and "Jingmen City Enterprise with Outstanding Contribution to High-Quality Development".The Company maintains excellent social credit standing. It has been granted honors including the "Top 100 Honest Enterprises among China's Listed Companies Award", "National Contract-Honoring and Credit-Worthy Enterprise", "National May 1st Labor Certificate", "Provincial Top 100 Honest Taxpayers (Inaugural)", "Nationally User-Satisfied Enterprise for Market Quality Credit", "Hubei Provincial Excellent Creditworthy Banking Customer", "Hubei Provincial Consumer Satisfaction Unit", "Hubei Provincial Outstanding Honest Enterprise", "Hubei Provincial Labor Security Honesty Unit", and "Hubei Provincial Civilized and Honest Demonstration Enterprise".

The Company is willing to extend cooperation and seek mutual development with friends both at home and abroad, repaying customers and society with better products and services.