Event: On the night of August 13, 2013, Baoli Asphalt announced and Anterra EnergyInc. (Anterui Energy Co., Ltd.) signed the “Investment Framework Agreement”. Baoli Asphalt plans to invest 7 million Canadian dollars with its own capital to obtain 17.4% of Anterra's shares. Baoli Asphalt participated 17% in shares to enter the upstream overseas industry. Anterra Energy Inc. (Anteri) is a Canadian energy company listed on the Toronto Stock Exchange's Venture Exchange. It is mainly engaged in oil and gas development. Atari will issue targeted additional shares to Baoli Asphalt. Baoli Asphalt plans to invest 7 million Canadian dollars in Anterui with its own capital and obtain a total of 104,477,612 shares of Anterui A shares at a price of 0.067 Canadian dollars per share. The current total share capital of Anterui is 496,871,120 shares. After the investment, the total share capital of Anterui is 601,348,732 shares, and Baoli Asphalt accounts for 17.4% of Anterui's shares. Another listed company, Hengtai Aipu, also holds 22% of Anterui's shares. Atari is mainly engaged in oil and gas development in Canada's western basin. Its main production blocks are “Brighton,” “Bakan,” “Twin Creek,” and “Small.” Its 2013 production and operation target is to produce 1,000 barrels of oil and gas equivalent per day, of which more than 80% is light crude oil. The company's main business is growing steadily: Baoli Asphalt is mainly engaged in the construction of modified asphalt and heavy asphalt for highways. With the gradual completion of China's highway plans, the overall industry is growing steadily, and the structural growth rate in the western region is relatively rapid. Currently, the company has 5 subsidiaries in the central and western regions: Shaanxi, Hunan, Sichuan, Xinjiang, and Tibet (the modified asphalt production base in Tibet is still under construction). Sichuan and Xinjiang are all new production bases built in 2012, and may become the main source of growth in the modified asphalt business in 2013. According to the plan, in 2013, Xinjiang plans to invest 35 billion yuan to 40 billion yuan in fixed assets in transportation to complete the construction of 5 highways; the total mileage of the Sichuan Expressway will exceed 5,000 kilometers. The purpose of Baoli Asphalt's investment in Anterui is to help the company open up the upstream industry chain, explore overseas markets, enhance the company's ability to make comprehensive use of global resources, and lay the foundation for the company to establish petroleum asphalt raw material bases overseas in the future through strategic cooperation with Anterui. Profit forecast and investment advice: We believe that the modified asphalt industry is showing steady growth with fixed asset investment and the gradual completion of highway layout, and that the company's participation in Canadian oil and gas companies will help the company obtain more upstream resources. The profit forecast remains unchanged for the time being. The net profit for 2013/2014 was 118 million yuan and 137 million yuan respectively, equivalent to EPS of 0.23 yuan and 0.37 yuan, respectively, up 22% and 17% from the previous year, maintaining the “increase in holdings” rating. Risks: Accounts receivable cannot be collected in a timely manner; demand for transportation infrastructure shrinks due to the macroeconomic downturn; execution of orders and projects falls short of expectations; rising crude oil prices lead to higher raw material costs.