Biyou Group (09893.HK) FY2025 results impressive: Revenue and net profit both increase, main board transfer opens a new chapter of growth

Recently, the only stock in the civil blasting industry in the Hong Kong stock market, $PIZU GROUP(09893.HK), released its annual performance report for the year ended March 31, 2025. The company's turnover reached RMB 1.696 billion, an increase of 24.09% compared to the previous fiscal year; profit attributable to shareholders was RMB 164 million, a year-on-year increase of 25.20%. The board of directors proposed a final dividend of HKD 0.015 per share, providing investors with corresponding returns.

This is the first annual report released by 比优集团 after transferring from the GEM to the main board in February 2025, marking a new development stage for the company. In the face of multiple uncertainties in the global economy, this report shows certain growth resilience. The biggest reason is the operational resilience and strategic foresight shown by 比优集团 in its business. As a track not so well-known to the public, 比优集团 has actually accumulated a stable growth structure. This transfer also provides positive support for the company's image, compliance governance, and liquidity in the international market.

1. Performance growth and main board transfer, a strategic breakthrough with double happiness

比优集团 achieved rapid growth in the 2025 fiscal year, with profit growth exceeding revenue growth, reflecting a substantial improvement in the company's profitability. The announcement shows that the performance growth mainly comes from the good performance of the mining and blasting business. Compared to the 2024 fiscal year (April 2023 to March 2024), when the company's total revenue was RMB 1.366 billion and profit attributable to shareholders was RMB 131 million, the performance growth this fiscal year seems even more hard-won. By the end of the fiscal year, the company's cash and cash equivalents reached RMB 633 million, an increase of 182.60% compared to the same period last year.

This performance improvement is mainly due to three aspects: first, continuous attention to market changes and exploration of capacity structure optimization; second, the scale effect is evident, and the profit level of the Anhui Jinding Mining project has further improved; third, the continuous value of technological innovation applications, such as the successful implementation of the carbon slurry gold extraction process in 2024, which has played a positive role in improving the subsequent metal recovery rate. This has laid a good business foundation for 比优集团， thus being able to deliver on performance.

A major event before the release of this annual report is particularly noteworthy. On February 18, 2025, 比优集团 successfully completed the listing process from the GEM to the main board, becoming the first successful case after the implementation of the Hong Kong Stock Exchange's "simplified transfer mechanism." This change is not only an adjustment of the trading board but also an important node in the development stage.

Looking back at the development trajectory of 比优集团， the company was established in 2003 and established a strategic direction for development in the civil blasting and mineral extraction industry after 2012. In 2015, it injected Inner Mongolia Sheng'an Chemical assets, and in 2020, it acquired Anhui Jinding Mining, gradually forming the current "civil blasting + mineral" dual-wheel drive business pattern. The main board listing is a natural advancement of this development process, marking that after the business structure is perfected to a certain extent, the company has also entered a new development stage in the capital market.

The main board market has a broader investor base and higher liquidity, enhancing the company's market exposure and valuation potential. The company can also obtain more diversified financing channels and more competitive financing costs, enhancing its capital operation capabilities. Moreover, considering the strict regulatory requirements and governance standards of the main board and higher requirements for information disclosure transparency, 比优集团's subsequent recognition in the customer, supplier, and talent market may be expected to improve, providing help for business development.

It is particularly worth mentioning that the civil blasting industry is in the period of national policy dividends. The "14th Five-Year Plan for Safe Development of the Civil Blasting Industry" clearly promotes the improvement of industry concentration, forming 3-5 large civil blasting integrated enterprises with international competitiveness. 比优集团 is the only listed company in the civil blasting sector in the Hong Kong stock market, with good performance + vertical positioning + business improvement "three-in-one" self-characteristics, further strengthened in the main board environment.

2. Deepening of the dual-wheel drive strategy, civil blasting business and mineral extraction create prospects together

Specifically, civil blasting is the basic business segment of 比优集团 and also the company's traditional advantage field, with revenue reaching RMB 860 million this fiscal year. Unlike other companies in the industry, 比优集团 has formed a relatively complete integrated service system with the "product + service" integrated model. The company not only produces civil blasting products such as emulsion explosives and ammonium oil explosives but also provides full-process services from blasting design to engineering construction, achieving vertical integration of the industrial chain.

For a long time, the integrated service model of vertical integration has certain advantages: reducing intermediate links, creating higher comprehensive value, forming stable product sales channels, and reducing market fluctuation risks; in addition, it has accumulated rich application scenario experience, promoting product technology innovation and optimization. On the production side, the group also continues to promote digital management of processes. Sheng'an Chemical was selected as a typical case of digitalization by the Ministry of Industry and Information Technology, and the related system has improved the quality control efficiency of emulsion explosive production.

In the 2025 fiscal year, despite facing challenges such as intensified industry competition and fluctuations in raw material costs, 比优集团's civil blasting business still achieved steady and stable growth. The company performed well in the blasting operations and mining engineering service fields, not only driving the sales of civil blasting products but also improving overall profitability. The company's advantageous position in the Inner Mongolia market was further consolidated, and progress was also made in the layout of regions such as Tibet, laying a solid foundation for future business expansion. In addition, with mature technology and rich experience in the civil blasting field, 比优集团 began to layout civil blasting business in Central Asia as early as 2017, and established a joint venture company in Tajikistan to build a factory to produce civil blasting products, while actively promoting comprehensive business expansion in Tajikistan and surrounding countries.

Mineral extraction is the strategic segment that 比优集团 has focused on developing in recent years, with revenue reaching RMB 833 million this fiscal year. Through the dual layout of Anhui Jinding Mining and Tibet Tianren Project, its influence in the mineral resource field is gradually increasing. This also once again reflects 比优集团's deep understanding of industrial logic after years of deep cultivation:

The mining industry is the largest downstream field of civil blasting, accounting for more than 50% of civil blasting product applications, and extending to mineral resources is an advantageous choice for achieving industrial chain integration.

Anhui Jinding Mining has become an important performance growth point for 比优集团 since its commercial production in August 2021. The project mainly produces sulfur concentrate, copper concentrate, iron concentrate, and gold (including gold concentrate and gold mud ore), and the approximate ore reserves of the Huangtun mining area are considerable. In the past fiscal year, the mining area mined more than 960,000 tons of ore.

In the past three years, the revenue of the Anhui Jinding project has achieved rapid growth, quickly rising from RMB 200 million to the current level, with a compound annual growth rate of over 60%. In the 2025 fiscal year, with the optimization of production processes and the improvement of management efficiency, the profit contribution of Anhui Jinding Mining further increased, becoming one of the main business support segments for the company's performance growth.

The Tibet Tianren Project represents the future development direction of 比优集团's mining business. The project is located in Mozhugongka County, Lhasa City, Tibet Autonomous Region, and has a mining license for the Bangfu molybdenum copper mine (valid from October 2024 to October 2047). After geological exploration confirmation, the proven reserves of the mining area are huge, although the ore grade is relatively low, it is suitable for large-scale production, meeting the requirements of large-scale, mechanized mining.

Since acquiring most of the equity of Tibet Tianren in April 2023 to become the controlling shareholder, 比优集团 has actively promoted project preparation work. In January 2025, the project successfully obtained project approval from the Tibet Autonomous Region Development and Reform Commission, meaning that the main administrative approval procedures have been completed. This landmark node means that all administrative procedures have been fully completed—as the core premise for the project to transition from the preparation stage to substantive construction, it provides key policy guarantees for subsequent construction. Relying on this important progress, in March this year, the mining area began construction and is expected to be completed and put into production by the end of 2026. On the other hand, in November 2024, the company signed a RMB 150 million investment agreement with the Mozhugongka County government for the construction of an emulsion explosive production line, further improving the western production capacity layout.

In terms of business expansion, 比优集团 uses the Tibet Tianren Project as an important fulcrum, closely relying on the opportunities brought by the national "Belt and Road" initiative, deepening cooperation with Central Asian national enterprises, and focusing on two core directions: first, accelerating the development and utilization of mineral resources, and maximizing its potential as a new profit growth point for the group through continuous optimization of management; second, fully leveraging the unique advantages of the group's "civil blasting, mining construction services + mining" dual-wheel drive model, using the group's strong strength in civil blasting product production, sales, and blasting services to strengthen cooperation with Central Asian national enterprises and provide technical support and safety guarantees, while the growth of mineral development business directly drives the demand for the group's civil blasting products, the two promote each other and complement each other, jointly building 比优集团's core competitiveness and sustainable growth momentum.

The strategic value of the Tibet Tianren Project lies not only in its resource reserves and economic benefits but also in its optimization of the company's business structure and regional layout. The mineral resources in the Tibet region are rich, the policy support is strong, but the development degree is relatively low, and there is a broad development space. 比优集团， through the Tibet Tianren Project, can share the dividends of mineral development in Tibet on the one hand, and on the other hand, create synergy for the expansion of the company's civil blasting business in the western region, providing a new growth pole for the company's long-term sustainable development.

3. International prospects are worth paying attention to, the domestic and foreign dual-drive pattern is yet to be formed

The demand for minerals and blasting is not limited to domestic. 比优集团 uses the Central Asian region as an anchor point to carry out effective international business layout.

In March 2017, 比优集团 established a joint venture "KM Company" in Tajikistan, mainly engaged in the production and sales of civil explosives, and has now grown into the largest civil blasting manufacturer in Tajikistan, contributing stable overseas revenue.

The successful expansion of the Central Asian market is due to 比优集团's precise strategic positioning. The company fully utilizes the policy dividend support brought by the "Belt and Road" initiative, focusing on the Tajikistan market with natural resource advantages and infrastructure needs, and quickly establishes market position through deep cooperation with local governments and enterprises.

Especially the KM Company's second phase project of producing 10 million detonating cord detonators annually, which was launched in September 2024, received high-level support from the President of Tajikistan personally attending the groundbreaking ceremony, demonstrating 比优集团's influence and development potential in the local area.

比优集团's deep cultivation in Tajikistan has also driven the company's business expansion in other Central Asian countries. The company gradually builds a sales network radiating the Central Asian region. This strategic layout not only expands the company's market coverage but also forms a stable customer base, providing a guarantee for future business sustained growth.

Therefore, the prospects of 比优集团 can actually be reflected in several clear paths:

First, further optimize the business structure, increase the proportion of high value-added services, and enhance core competitiveness. Based on the "product + service" integrated advantage, the company can expand the scale of blasting engineering and mining construction services business, and at the same time, improve product performance and service quality through technological innovation, creating differentiated competitive advantages.

Second, accelerate the construction of the Tibet Tianren Project, cultivating new performance growth points. After the Tibet Tianren Project is put into production, it will form regional complementarity with Anhui Jinding Mining, significantly enhancing the company's comprehensive strength in the mineral resource field.

Third, the international business map is yet to extend from Central Asia to a broader region. On the basis of consolidating the Tajikistan market, actively explore business opportunities in other Central Asian countries and emerging markets along the "Belt and Road," through the combination of localized operations and international management, will help 比优集团 build a global business network.

Conclusion: Sustained growth at a new starting point

比优集团's impressive performance in the 2025 fiscal year and successful transfer to the main board marks the company's development entering a new stage. The "civil blasting + mineral" dual-wheel drive business model shows a stable development foundation and growth momentum, and the coordinated layout of domestic and foreign markets also provides the company with broad development space.

As the only listed company in the civil blasting sector in the Hong Kong stock market, under the joint action of national policy dividends and industry integration trends, 比优集团 is expected to use the main board platform as a new starting point to achieve higher quality and more sustainable long-term development, creating greater value for shareholders.