The company's net profit in 2013 fell 10.8% year on year. The company announced its 13-year results. During the reporting period, it achieved operating income of 397 million yuan (down 4.0% year on year), net profit attributable to the parent company of 10.1 million yuan (down 10.8% year on year), EPS of 0.10 yuan, and operating cash flow per share of 1.02 yuan. The profit distribution for the year 13 was 0.5 yuan for every 10 shares, while the capital reserve fund was used to transfer 10 shares to 10 shares for every 10 shares. The gross margin and period expense ratio were basically the same year on year 13, and the company's comprehensive gross profit margin was 21.8%, which was basically the same year on year. The main reason was that the profit margin of the company's domestic oil service contract was basically locked down and did not change much; the period fee ratio was 16.6%, which was also basically the same year over year. Among them, the management fee ratio rose 0.7 percentage points to 15.0%, mainly a slight increase in management expenses and a decrease in revenue over the same period last year, and the financial expenses ratio fell 0.4 percentage points to 1.5% year on year, mainly a decrease in interest expenses after loan repayment. We have extensive experience in inefficient oilfield management. Overseas oil and gas business expansion is beneficial to the company's growth. The main customers of the company are the four major oil fields in the Xinjiang region, and CNPC has managed inefficient oil fields for a long time. In the process, it has developed comprehensive integrated oilfield development and management capabilities including development plan design, production increase construction, and oilfield block management, etc., leading the industry in the Xinjiang region. However, due to the relatively low degree of marketization of domestic onshore oil services, the company's ability to integrate has not been fully unleashed. Therefore, expanding overseas oil and gas business with a relatively high degree of marketization will help the company further develop its advantages and break through existing business bottlenecks. Kazakhstan's oil and gas development strategy is gradually becoming clear. The company has set up a subsidiary in Kazakhstan, and it is expected that it will enter the Kazakh oil and gas sector later. At present, domestic oil service companies of various sizes have developed various models when expanding overseas oil and gas business in different regions. Combining the company's own technical capabilities and capital strength, the short-term strategic goal is expected to become the general contractor for oil companies through the development of comprehensive and integrated oil field development and management projects. As the general direction of oil and gas business development in Kazakhstan gradually becomes clear, the company's subsequent project progress is worth looking forward to. Maintaining the “buy” rating, the company's EPS for 14-16 is expected to be 0.45 yuan, 0.85 yuan, and 1.08 yuan respectively, and maintain the “buy” rating. Risk warning: The risk that Kazakhstan's oil and gas business is progressing less than expected.