Incident: The company announced a private issuance plan. It plans to issue no more than 11 million shares at a price of 18.8 yuan/share. All shares will be subscribed in cash by Chuangyue Energy Group, the largest shareholder (Chuangyue Energy Group shareholders include Qin Yong, the company's actual controller, and some management employees). The total capital raised will not exceed 206.8 million yuan. After deducting issuance fees, all of the capital raised will be used to supplement working capital. The capital structure is more optimized, and the ability to withstand risks has been strengthened. Referring to the company's three-quarter report in '13 and the latest issuance situation, the company's total assets are expected to rise from 850 million yuan to about 1.05 billion yuan, of which book cash will increase by about 200 million yuan to 450 million yuan, while the balance ratio is expected to drop from 31% to about 25%; overall, the capital structure will be further optimized, capital strength will be further complemented, subsequent investment will be more relaxed, and risk resistance will be strengthened. The financial strength has been strengthened, and it has gone one step further than the general contractors for oil development. Currently, the company's business mainly serves the four major oilfield companies in Xinjiang. Previously, development was restricted due to serving enterprises within the system. With the gradual liberalization of mixed ownership in the field of oil and gas exploration and development in the country, especially in the Xinjiang region, and plans to enter the oil and gas sector in Kazakhstan, the company will usher in an unprecedented opportunity for development. Supplementing capital at this time will help the company improve its equipment level and technical capabilities, help it undertake larger oil field service contracts, and the company's transformation into a general contractor for petroleum development will go one step further. Control is more stable, and the majority shareholders have increased their cash holdings, and management has shown confidence. After the completion of this additional issuance, the shareholding ratio of the majority shareholders increased, and the company's control was further consolidated, helping to reduce potential future control risks. At the same time, the increase in cash holdings by the majority shareholders also demonstrated management's confidence in the company's subsequent development. Maintaining a “buy” rating: The company is the largest oil service company in the Xinjiang region and will fully benefit from the liberalization of mixed ownership in the oil and gas sector in the Xinjiang region; at the same time, the company's business strength lies in the steady increase in production in inefficient oil fields, while Kazakhstan has many old oil fields with inefficient oil and gas resources and has great potential to increase production, so the company has a lot of room for development in Kazakhstan to expand its oil and gas business. After this additional issuance is completed, the company's capital structure is more optimized, and the company's control is more stable, which is conducive to subsequent participation in the construction of a mixed ownership economy in the domestic oil and gas sector and the development of Kazakh business. The dilution of this increase is not taken into account for the time being, maintaining the 14-15 EPS forecast of 0.45 yuan and 0.85 yuan respectively, and maintaining the “buy” rating. Risk warning: The risk that Kazakhstan's oil and gas business is progressing less than expected, and the risk that mixed ownership reform in the oil and gas sector falls short of expectations.