Setting off fireworks and crackers is common during holiday celebrations in China, especially around Lunar New Year.

The explosion occurred on Wednesday afternoon in Jinpu village, in the central province of Hubei.

"Following thorough search and rescue operations, the incident was confirmed to have resulted in 12 fatalities: seven adults and five minors," state broadcaster CCTV said Thursday, citing authorities.

The identities of all victims have been verified, it added.

"Aside from one individual, identified as the proprietor Mr Lin, the remaining 11 were customers purchasing fireworks," the report said.

Three of the customers who died had travelled from Chengdu, roughly 780 kilometres (485 miles) away, to visit their relatives, it added.

A police investigation is underway to determine the cause of the explosion.

Several major Chinese cities have banned the use of fireworks and firecrackers in recent years for safety and pollution control reasons, but the practice remains very popular in rural areas.

Fatal explosions regularly occur around the holidays.

On Sunday, an explosion at a fireworks shop in eastern China's Jiangsu province killed eight and injured two.