Incident: The company announced a non-public offering plan to issue no more than 30 million non-public shares to 7 targets at an issue price of 7.49 yuan/share, and the total amount of capital raised should not exceed RMB 224.7 million. After all the capital raised through the non-public offering supplements the company's working capital, the construction of the company's existing projects will be promoted according to the progress of the investment. The seven distribution targets are: Shiyou Chemical, Hengrong Runye, Hengqin Rongtong, Huaxin Venture Capital, Peng Wanli, Qiaotong, and Kong Ying. Among them, Shiyou Chemical is the controlling shareholder of the company, Hengrong Runye is an affiliate of Zhang Xinyu, the company's general manager, and Hengqin Rongtong is currently an associated company for the company's senior management. Comment: The main purpose of raising capital is to advance the construction of existing projects. 1. Jintengxing storage project. The company acquired 70% of Jin Tengxing's shares in the early stages. After the project is completed and put into operation, the company can provide Wuhan and surrounding areas with the reception capacity of 18,720 square meters of packaged hazardous chemicals warehouses and 10,800 cubic meters of liquid hazardous chemical storage tanks. Through the Jintengxing warehousing project, the company can explore its regional center in central China and the middle reaches of the Yangtze River market, and expand the company's main business. 2. Shandong oil and gas project. The company plans to increase the capital of its wholly-owned subsidiary Hengtou Holdings by 54 million yuan, and the company's subsidiary Yangzhou Hengji Daxin by 6 million yuan over the same period last year. Hengtou Holdings will establish Shandong Oil and Gas with a capital increase of 60 million yuan. Shandong Oil and Gas plans to cooperate with large enterprises to participate in locally related oil and gas projects. This project brought the company into a new field of natural gas. 3. Cooperate with Green Energy Hi-Tech to carry out LNG projects. On March 21, 2014, the company reached a cooperation agreement with Green Energy Hi-Tech to jointly carry out an LNG project. Green Energy Hi-Tech is the first domestic company to commercialize LNG, and has leading domestic technical reserves and R&D capabilities. Cooperate on LNG projects, including exploring LNG liquefaction plants, LNG storage and transportation, gas stations, trade, etc. This release will help the company promote offsite expansion and related diversification. The company's original business was only petrochemical warehousing business in Zhuhai and Yangzhou, and there is limited room for long-term development. The Jintengxing project to be promoted by raising capital this time will help the company expand its warehousing business to central China, while the Shandong Oil and Gas and Green Energy Hi-Tech Project has enabled the company to expand promising businesses such as natural gas and LNG, and future development is worth looking forward to. However, these two projects are currently in the early stages, and the specific development path needs to be continuously tracked. This fixed increase further strengthens the link between management's interests and shareholders' interests. Among the distribution targets, Shiyou Chemical is the controlling shareholder of the company, Hengrong Runye is an affiliated company of Zhang Xinyu, the company's general manager, and Hengqin Rongtong is currently a company associated with the company's senior management. Through the release, the company introduced strategic investors who are optimistic about the company's long-term development. The sale period for shares subscribed by the issuer is 36 months, which shows their support for listed companies. Profit forecasting and valuation. The company's EPS is expected to be 0.23, 0.28, 0.33 yuan from 2014 to 2016. This year is the first year of reform of the petrochemical industry chain, and the company is expected to benefit. Furthermore, the Hengqin Free Trade Zone also had a positive impact on the company (the company registered and established two subsidiaries in the Hengqin New Area). Maintain an “gain” rating on the company. Risk warning. The petrochemical industry continues to be sluggish, and offsite expansion faces costs and management risks.