One person was killed and two others remained missing after an explosion struck a residential compound in Linyi City, east China's Shandong Province, on Friday, local authorities said.

The blast occurred at 3:38 p.m. in a detached single-story residence in Wangqiao Community in the Yihe New Area, according to a statement released by a joint working group set up after the incident.

Other people injured in the explosion have been taken to hospital and are not in life-threatening condition. Search and cleanup operations are still underway at the site.

A preliminary investigation indicated that the explosion may have been caused by explosives allegedly stored illegally by a tenant for use in fishing, the statement said.

Residents of nearby apartment buildings have been relocated. An investigation into the cause of the incident and follow-up work are underway.