Company Profile Beyondsoft Corporation (002649: SZ) is China’s leading software and IT service outsourcingcompany, covering businesses of R&D engineering, enterprise application and IT services.. Event Beyondsoft Corp’s wholly-owned subsidiary Beyondsoft Consulting North America announcedthat it plans to acquire a 70% stake in 1Strategy, a consulting firm focused on providingcustomers with design, implementation and services on the Amazon Web Services (AWS)Cloud, with a total of USD 1.845 million. The strategic partnership with 1Strategy strengthensBeyondsoft's business enterprise by further extending its delivery and developmentcapabilities to the AWS Cloud. Comment The acquisition of 1Strategy will enable the Beyondsoft to accelerate expanding into thecloud computing industry. According to the acquisition agreement, Beyondsoft would acquirea 70% stake in 1Strategy with USD 1.85 million. As a senior consulting partner with AWS,1Strategy focuses on providing customers with design, implementation and services on theAWS Cloud; its key team members all came from the world’s leading cloud computing serviceprovider. The company is able to provide migration, automatic operation and deploymentsolutions on AWS for clients of all industries. 1Strategy provides architecture and developmentservices for enterprises in Washington and Utah. The strategic partnership with 1Strategystrengthens Beyondsoft's business enterprise by further extending its delivery anddevelopment capabilities to the AWS Cloud. In addition, Beyondsoft will gain strengths inproviding various cloud services including cloud consulting, cloud migration and cloudarchitecture. AWS currently leads the world’ s cloud computing industry. Through acquiring1Strategy, Beyondsoft’s competency in the cloud computing area will be further strengthened. Earnings of AWS was on explosive growth. The growth prospects of the cloud migrationbusiness merit high attention. On April 29, Amazon released its 16Q1 financial report, statinghast it has managed to turn loss into profit thanks to explosive growth of earnings from AWS. Particularly, in 16Q1, AWS made USD 2.57 billion in operating revenue, up 64% YoY. Theoperating profit was USD 604 million, up 128% YoY. After releasing its 16Q1 financial report,the stock price of Amazon surged by 14% within two trading days. The explosive earningsgrowth recorded by AWS is indicative of growth potential of the cloud computing industry. Atpresent, the penetration rate of cloud computing business in US far exceeds that in China. Thissuggests that there is still wide room for growth in China’s cloud computing industry. Through carrying out cloud migration businesses, the traditional IT service provider is able togradually expand its presence into the cloud computing industry. Cloud migration serviceproviders are able to access resources along the cloud computing industry chain andaccumulate experiences in providing cloud services. China’s cloud computing industry is still inits initial stage of development. The domestic cloud migration service providers are embracingvast development opportunities. Beyondsoft has started providing consulting services,engaged in system construction, data migration, disaster recovery backup and businessoperations. With distinctive strength, the company is expected to achieve fast growth in thenear term. The introduction of the stock incentive scheme will provide impetus for the company’s future growth. The company launched a restrictive stock incentive scheme at the end of 2015,offering a total of 10 million restrictive shares to its 301 executive s and key staff member. Theincentive scheme has covered a large number of employees, with 40% shares unlocked in thefirst year, 30% shares unlocked in the second year and 30% shares unlocked in the third year. To have these restrictive shares unfrozen, the company needs to achieve earnings increase of40% in 2015, 30% in 2016 and 30% in 2017, as compared with the figure for 2014. Theintroduction of the stock incentive scheme will provide impetus for the company’s futuregrowth. Earnings Forecast and Investment Recommendations: We made our EPS forecast for thecompany at CNY 1.13 in 2016, CNY 1.40 in 2017 and CNY 1.63 in 2018. We have strongconfidence towards the company’s competency in the field of cloud migration. ReiterateOUTPERFORM. Potential Risk: Intensifying market competency, foreign exchange fluctuation,slower-than-expected new business development

Five investors included in the Company’s private placement plan are going to spend at most CNY1.2 billion buying 80 million of its shares. CNY 900 million of the investment will flow to smart citycomprehensive information service and operation program. Based on grid management concept,Beijing eGOVA intended to build several platforms (information platform, cloud platform,monitoring and control platform) leveraging cloud computing, mobile network, IoT and big datatechnologies which will be applied to city management, smart parking, smart pipeline system,safe city, smart medical care and smart transportation. After striving for expansion in smart cityconstruction for many years, the Company has gradually built up its competitive advantages andgood reputation on the market. We believe it is very likely obtain larger market share withsufficient capitals coming in this time. Q1 report indicated steady growth of Beijing eGOVA’s main business. (1) It holds 75% stakes in JinDi Pipeline, Jin Di Technology and Jin Di Technical Instruments respectively. They operate pipelinerelatedbusiness in over 300 cities around China. Their clients are very likely to approach BeijingeGOVA for other smart city services in the future. (2) Beijing eGOVA has signed cooperationagreements with over 80 real estate companies and property management companies, includingGreenland Group, China Vanke, Poly Real Estate Group, Color Life Services Group, to promoteapplication of smart parking system. It can access parking information of more than 300 parkinglots of business complexes, office buildings and high‐end residential buildings nationwide now. The Company founded branches in at least 40 cities (Beijing, Shenzhen, Zhengzhou, Chengdu,etc.) to operate the business and is working on comprehensive parking solutions for cities likeYibin and Wenxing. We expect Beijing eGOVA to sustain sound growth momentum consideringwith boom of new business. Earnings Forecast and Investment Recommendations: We made EPS forecast for the Company atCNY 0.52 in 2016, CNY 0.67 in 2017 and CNY 0.89 in 2018. Reiterate OUTPERFORM. Potential Risks: intensified market competition, new business progressing slower‐than‐expected.

The acquisition of Huazhiyuan will accelerate the development of smart transportation. Huazhiyuan is known as China’s leading urban transportation and telecommunication systemsolution provider. After the transaction complete, Huazhiyuan will become the company’swholly-owned subsidiary. It pledged to make no less than CNY 40 million and CNY 50 million innet profit in 2016 and 2017 respectively. This time’s acquisition will not only boost thecompany’s earnings, but also provides it with access to clients throughout the country. Itscompetency in the smart transportation business will be further strengthened. So far, China’ssmart transportation industry has accelerated its growth. The total worth of Huazhiyuan’sbid-wining projects in 2015 increased by 155%. Its revenue went up by 66% YoY. Thecompany’s net profit also experienced explosive growth, increasing by 73% YoY. The company has ramped up efforts on the video big data business, which enjoys stronggrowth prospects. The company plans to raise no more than CNY 218 million fund, which willbe mainly used on the construction of police video cloud-computing platform. The video bigdata industry enjoys strong growth prospects, and we expect unicorn companies to arise fromthe industry. Valuation of US’ industry leader Palantir has reached USD 20 billion. With rich experience accumulated in the security field, PCI-Suntek Technology boast both technologicalstrengths and market influence. In the future, the company plans to leverage its strengths intothe development of video big data businesses. Earnings Forecast and Investment Recommendations: We made our EPS forecast for thecompany at CNY 0.53 in 2016, CNY 0.83 in 2017 and CNY 1.11 in 2018. With strong confidencetowards the company’s growth prospects, we maintain BUY rating for the company. Potential Risk: Intensifying market competition, M&A risks

Company Profile Beijing Thunisoft Corporation Ltd. develops and provides services for e-governmen tsystem software. The Company's main products are software systems for courts, taxdepartments and general sectors. Event Beijing Thunisoft Co., Ltd. released its 2015 annual report, stating that it made CNY1.352 billion in revenue in 2015, up 49.75% YoY. The net profit stood at CNY 208million, an increase of 41.44% compared to a year earlier. The Company was going togive out CNY 1 stock dividend per 10 shares and increase share capital by 100% fromaccumulation fund. Comment Revenue from providing information and system services to courts and procuratoratesgrew by 36.62% YoY and 30.21% YoY respectively to CNY 757 million and CNY 209million last year. Services related to food security contributed CNY 117 million income,rising by 71.6% YoY. And Beijing Thunisoft made over CNY 100 million in revenue in bigdata business last year. In addition, there are CNY 1.5 billion orders to be implementedin 2016, setting up sound foundations for sustainable high-speed growth. Beijing Thunisoft conducted series of M&As last year and achieved good results inthese transactions. Earnings of Pudong Zhong Ruan, Wanhu Network and ThunsoftCredit all beat their commitment (CNY 23 million, CNY 30 million and CNY 22.08million) made previously with CNY 23.86 million, CNY 30.91 million and CNY 22.44million. (Beijing Thunisoft purchased 100% stake, 100% stake and 49% stakerespectively in the three companies.) We believe Beijing Thunisoft will move forward tobreak into new segments of government related business through acquiring leadingtargets in these fields, forming more comprehensive competitiveness on the market. Supreme People’s Court and Supreme People’s Procuratorate both rolled out policiesto boost wider application of information systems. And Food Safety Law was officially launched on Oct 1 last year. Big data and establishment of autonomous & controllablesystems are also expected to bring about development opportunities for the Company. Beijing Thunisoft announced a private placement plan the end of 2015, intending toraise CNY 1.07 billion to meet the increased demand. Earnings Forecast and Investment Recommendations: We made EPS forecast forthe Company at CNY 0.90 in 2015, CNY 1.19 in 2016 and CNY 1.56 in 2017. ReiterateOUTPERFORM. Potential Risks: intensified competition in the industry, M&A and R&D generateworse-than-expected results.