Company Announcement/News: Henderson Daxin announced the 2014 non-public offering plan and the “Company's Shareholder Return Plan for the Next Three Years (2014-2016)”. The plan rationalizes the interest mechanism between executives and majority shareholders, and the majority shareholders and companies that act in concert participate in the subscription in a high proportion. (1) It is proposed to privately issue no more than 30 million shares to 7 institutions, including Shiyou Chemical, Hengrong Runye, Hengqin Rongtong, and Huaxin Venture Capital, and raise no more than 224.7 million yuan in capital. Among them, Hengqin Rongtong is an equity investment partnership formed mainly by executives of listed companies. Executives of listed companies hold 36.5% of Hengqin Rongtong's shares. In this private offering, Hengqin Rongtong participated in the subscription of 2 million shares, accounting for 6.67%. The participation of the executive team in this subscription effectively straightens the interest mechanism between the executives of listed companies and the majority shareholders, which is conducive to leveraging the enthusiasm of executives. (2) Major shareholders and companies acting in concert participated in the subscription for 15 million shares, accounting for 50%. Shiyou Chemical, the majority shareholder of the company, subscribed for 5 million shares, accounting for 16.67%; Hengrong Runye participated in the subscription for 15 million shares as an equity investment partnership (Zhang Xinyu, general manager of the company holds 20% of the shares). The majority shareholders and cooperating companies participated in this subscription at a rate of 50%, demonstrating the majority shareholders' confidence in the company's future development. Lu Xin Venture Capital was introduced to help the company expand its industrial chain, and the shareholder return plan clarifies the dividend policy. (1) The 224.7 million yuan of capital raised by the company this time is mainly used to supplement working capital, and the investment will be based on the progress of early investment projects (Jintengxing Storage Project, Shandong Oil and Gas Project, and LNG Project in cooperation with Green Energy Hi-Tech). Our previous follow-up report mentioned that the company's new investment in the Wuhan Jintengxing project will significantly increase the company's ROE (with guaranteed profit of 10%). The Shandong oil and gas project and LNG project will effectively extend the company's industrial chain and open up the ceiling for the company's growth while leveraging the company's professional warehousing management and transportation capabilities in the field of hazardous chemicals. Also included in the current subscription target is an important strategic investor - Huaxin Venture Capital. The actual controller of Huaxin Venture Capital is Luxin Venture Capital, a subsidiary of the Shandong Provincial State-owned Assets Administration Commission. We believe this will help the company further expand its business offsite in the future. (2) The shareholder return plan for the next three years clarifies the company's cash dividend policy in different situations (industry characteristics, stage of development, operating model, profit level, funding arrangements, etc.). The maximum cash dividend ratio is not less than 80%, which effectively guarantees the interests of the company's large and small shareholders during the next three years of investment. Maintain the 2014-2016 profit forecast and confirm the “gain” rating. We maintain our 2014-2016 profit forecasts of 54 million yuan, 65 million yuan, and 67 million yuan (without considering the profit contribution of investment projects). Considering the impact of high turnover shares in 2013, the corresponding fully diluted EPS was 0.22 yuan, 0.27 yuan, and 0.28 yuan; the PE corresponding to the latest stock prices was 37.4X, 31.2X, and 30X, respectively. Although PE has a high valuation, based on the positive outlook for the company's development over the next three years after this non-public offering and the catalyst for oil and gas reform, we reaffirm the “gain” rating for the company.