Targeted additional issues are to be issued to major shareholders. On April 1, the company announced the suspension of trading on important matters. On April 12, the company announced the “Plan for the Non-public Issuance of A Shares”, which plans to issue no more than 11 million shares privately to Chuangyue Energy Group, the largest shareholder, at an issue price of 18.80 yuan/share. Reviews: 1. Targeted additional issuance to major shareholders once again. In January of this year, Zhunyou Co., Ltd. completed the issuance of additional shares to Chuangyue Energy Group, the largest shareholder, and targeted additional 2013 million shares to the majority shareholders at a price of 11.10 yuan/share. After the additional issuance is completed, the company's total share capital will increase to 11.5887 million shares, of which Chuangyue Energy holds 16.83% of the shares; since Qin Yong, chairman of Zhunyou Co., Ltd., is the controlling shareholder of Chuangyue Energy, holds 64.08% of Chuangyue Energy's shares. Thus, after the completion of this additional offering, Mr. Qin Yong controlled a total of 23.30% of the company's shares through direct control of Chuangyue Group and direct ownership of the company's shares. Only 3 months after the previous fixed increase was completed, the company once again issued targeted additional shares to the majority shareholders. It plans to increase the majority shareholders by 11 million shares at a price of 18.80 yuan/share, and plans to raise 206.8 million yuan in capital. 2. The majority shareholders once again participated in the fixed increase, demonstrating full confidence in the future of the company. The majority shareholders' participation at high prices has increased steadily, indicating that they are optimistic about the future of the company. This additional issue price is 18.80 yuan/share, up 69.37% from the fixed increase just completed in January (fixed price increase price of 11.10 yuan/share). Only 3 months after the last increase was completed, the majority shareholders (Chuangyue Energy Group) are confident in the future development of listed companies, once again participating in the fixed increase at a price significantly higher than the price of the previous increase. After this fixed increase is completed, the majority shareholders' shareholding ratio will reach 29.76%. At the end of 2013, Mr. Qin Yong, the actual controller of the company, had a shareholding ratio of only 7.78%; after completing the fixed increase in January, Mr. Qin Yong's shareholding ratio increased to 23.30%; and if this increase was completed, Mr. Qin Yong's shareholding ratio would further increase to 29.76%. The shareholding ratio of major shareholders continues to increase. On the one hand, it can better strengthen control over the company, and on the other hand, it also shows optimism about the future development of listed companies. Replenish working capital through additional issuance. The capital raised by Zengfa Company reached 213 million yuan in January, and the additional company plans to raise 207 million yuan in capital this time. After the two capital raised, the financial pressure on the company will be greatly alleviated, and sufficient capital will be provided for the company's future development. 3. Focus on the company's future development. (1) Actively participate in the mixed ownership reform of state-owned oil companies. The company believes that “speeding up the development of a mixed ownership economy is conducive to expanding the scope and scale of the company's business.” Sinopec used its oil sales business as a pilot project to develop mixed ownership reforms, kicking off the development of mixed ownership management by state-owned petrochemical companies. CNPC announced six major business cooperation platforms, including upstream unused reserves, to develop mixed ownership; Sinopec announced plans to develop mixed ownership throughout the shale gas exploration, mining, pipeline, and operation industry chain. As an oil service company spun off from CNPC and specialized in oil field monitoring services, Zhunyou Co., Ltd. is expected to enter the upstream oil and gas field as long as the upstream oil and gas extraction business allows private enterprises to participate in the operation, the company is expected to enter the upstream oil and gas sector. (2) Coalbed methane. The company has a certain reputation in the field of coalbed methane fracturing services. It has been providing coalbed methane mining services for CNPC Coalbed Methane Corporation for several years. Zunyou Energy, a wholly-owned subsidiary of the company, conducts coalbed methane exploration and mining work in the Kuqa and Baicheng regions of Xinjiang, while the Kubai Basin is a region with relatively rich coalbed methane in Xinjiang. The company has resources and technical advantages, and has a first-mover advantage in developing the coalbed methane business. However, due to various reasons, the development of coalbed methane in Xinjiang has been at a standstill in recent years. As long as there is a breakthrough in the development of coalbed methane in Xinjiang, the company's coalbed methane business should develop soon. 4. Earnings forecasts. We expect the company's EPS from 2013 to 2015 to be 0.10, 0.19, and 0.27 yuan respectively, giving it an investment rating of “increased holdings”. At the end of 2013, the company's net assets per share were 4.91 yuan. After this additional issuance is completed, the company's net assets per share will reach 6.08 yuan. According to the PB of 3.7 times the average of the same industry in 2014, we gave the company a target price of 22.50 yuan. 5. Risk Alerts. There is a risk that orders from downstream customers will fall and that progress in coalbed methane development in Xinjiang is lagging behind.