The main investment is the strategy of the entire natural gas industry chain, focusing on natural gas distribution. 1) Upstream oil and gas resources: Invest 10 million US dollars and participate in coalbed methane pioneer Yamei Energy. 2) Midstream gas distribution: Raised an additional 565 million yuan to acquire 88% of the shares of Jingneng Natural Gas and Luojiang Natural Gas. Acquire the remaining 12% of shares from major shareholders. In addition to the original Shangrao project and the Dalian project, there are a total of four projects. 3) Downstream distributed applications (main focus within the next three years): 60 million dollars were invested in the Shanghai Huanchuan project to pioneer the distribution of the Guanghuan New Network IDC. 4) Cessation of self-operation in the commercial sector: Another commercial business (excluding hotels and restaurants), which originally had two main businesses, is expected to stop. As a result, losses were terminated in the trading business, and profits are expected to be between 6 million and 7 million yuan. The IDC project is very well distributed and has broad prospects. 1) Strong economy: The IDC project requires cooling throughout the day, and the energy consumption structure matches the distributed thermoelectric load. Therefore, the cost of distributed energy consumption will be significantly lower than the cost of simply using electricity. Compared to simple power supply, distributed projects with triple supply have more revenue from heating and cooling, and thermal efficiency has been greatly improved. 2) Guanghuan Xinwang IDC Project: The first phase of the project has an investment of 70 million yuan. It is expected to be put into operation in the first quarter of next year, and is highly profitable. 3) Status of IDC projects in China: According to data from China's IDC circle, China's IDC market reached 37.22 billion yuan in 2014, with a year-on-year growth rate of 41.8%. It is expected to maintain rapid growth in the next few years, spawning demand for downstream distributed projects. Invest 100 million yuan to participate in the establishment of an energy investment fund (first phase of 1.5 billion yuan) to accelerate the pace of expansion. The fund will exclusively serve Chase Gas, acquire, cultivate and manage the target assets of urban pipelines and natural gas, upstream oil and gas resources, the LNG industry chain, and new energy. Priority will be given to Chase Gas's acquisition of target assets to complete the exit of the fund. The fund will be issued in two phases, with the size of the first phase not exceeding RMB 1.5 billion; of this, Chase Gas's investment will not exceed RMB 100 million, and the remaining portion will be completed by Ruishi Investment and funded by other investors; the size of the second phase of the fund will be determined according to the status of subsequent projects; fund manager: Ruishi Investment; Cooperation period: The total period of cooperation is 7 to 10 years. Investment advice: Give an increase in holdings rating for the first time. We forecast that the net profit for exam preparation in 2016 and 17 will reach 0.75 million and 107 million respectively; the current total market value is 4.6 billion yuan. The layout of the company's entire natural gas industry chain: 1) Distribution has become the biggest highlight: 60 million dollars have been invested in the Shanghai Huanchuan project, and the first to deploy the Guanghuan New Network IDC distribution. 2) Natural gas distribution business: Raised an additional capital of 565 million yuan to acquire 88% of the shares of Jingneng Natural Gas and Luojiang Natural Gas. Acquire the remaining 12% of shares from major shareholders. 3) Natural gas source: Invest 10 million US dollars to participate in coalbed methane pioneer Yamei Energy. 4) The company's three-year employee stock ownership plan has been implemented (increase price of 7.18 yuan/share). With the support of a 1.5 billion M&A fund, the subsequent layout of the entire natural gas industry chain has accelerated. This is the first time an increase in holdings rating has been given. Risk warning: distributed gas project progress falls short of expectations