Incident: The company announced that it plans to exchange its own capital for foreign exchange, invest 6.6 million euros to establish a subsidiary in the Netherlands, and plans for the Dutch subsidiary to acquire the Kazakh subsidiary held by the company, Zunyu Tianshan. Further optimization of the overseas business management structure The establishment of a Dutch subsidiary this time will help the company optimize its overseas business management structure and further advance Kazakhstan's oil and gas business. The main benefits are: 1. In the future, the company's overseas business, including Kazakh oil and gas business, can be managed uniformly by Dutch subsidiaries, which is conducive to improving the efficiency of international investment and capital operations; 2. Since under the holding company structure, the Netherlands has other tax benefits such as tax exemptions on dividends and capital gains in other countries, so managing a company's overseas projects by Dutch subsidiaries is conducive to reasonable tax savings. Kazakhstan's oil and gas business is expected to accelerate. Since the subsidiary set up by the company in Hong Kong earlier did not have substantial operability in terms of reasonable tax savings, the company can effectively solve the problem of reasonable tax savings in Kazakhstan's oil and gas business through the establishment of a Dutch subsidiary. The progress of Kazakhstan's oil and gas business is expected to accelerate, and we continue to be optimistic about the company's development space and performance elasticity in the Kazakh oil and gas field. While local oil service enterprises in Xinjiang are expected to enjoy reform dividends, recently the central government's policy on building a new Silk Road economic belt with Xinjiang as the core has been continuously introduced, and it is expected that there will be continued favorable policies in the field of energy development in the Xinjiang region. As a local enterprise in Xinjiang, we believe that the company is also expected to enjoy more reform dividends. Maintaining the “buy” rating We maintain the company's 14-16 EPS forecast of 0.45 yuan, 0.85 yuan, and 1.08 yuan respectively, maintain the “buy” rating, and raise the target price to 30 yuan. Risk warning: The risk that Kazakhstan's oil and gas business is progressing less than expected.