PROCEDIMIENTO PARA EL SEGURO DE UNIDADES EN CASO DE SINIESTRO

We believe the following strengths differentiate us from other industry participants and have enabled us to compete effectively in our industry.

Leading market position with strong brand recognition and a distinguished history

We are one of the largest digital video technology solution and service companies in China. In our main business, which is post-production system solutions primarily targeting TV broadcasters, we were ranked among the top three in China with a 5.1% market share in terms of 2014 revenue, while no single market player had a market share greater than 10%, according to the Frost & Sullivan Report. In particular, according to the same report, in terms of 2014 revenue, we were highly ranked in several key categories which are the core building blocks of our industry:

• our graphics creation systems had an industry-leading market share of 23.4%; • our virtual studio solutions had an industry-leading market share of 8.5%;

• our digital broadcast automation solutions had an industry-leading market share of 6.4%; and

• our live sports broadcasting services ranked second with a market share of 19.9%. In addition, in multi-camera recording and editing service, which is an emerging solution that we pioneered in 2013 and marketed under the brand “CreaStudio,” we had the industry-leading market share of 7.5% in terms of 2014 revenue, according to the Frost & Sullivan Report.

In November 2014, we were selected by Shanghai Media Group to jointly develop an omnimedia convergence platform that enabled Shanghai Media Group to source news materials from not only its traditional media platforms such as TV and radio, but also the new media platforms such as Internet media, social media and mobile applications, and generate and distribute news contents through these channels in a targeted manner. In the new era where audience demands the latest news from the widest variety of sources, the new omnimedia convergence platform allows Shanghai Media Group to meet audience’s new expectations. Our omnimedia convergence platform for Shanghai Media Group was the first such platform in China, according to the Frost & Sullivan Report.

Founded 25 years ago, we have built “新奧特” (“Xin’aote”) into a brand name that we believe is among the best-known and trustworthy in the industry in China today. We developed the first generation of Chinese character generators and video editing systems in China, which established our reputation in the industry. Our industry leading position has also been well-recognized by customers and regulatory bodies. For instance, we were the domestic digital video technology and service provider selected to serve the Beijing 2008 Summer Olympic Games and also provided international broadcasting center solution and service for the 2010 World Expo in Shanghai. The quality of our customer base, with the likes of CCTV and provincial-level broadcasters as our core customers, and the long history of those relationships further illustrate the recognition and trust that our “新奧特” (“Xin’aote”) brand has gained over the years.

Highly responsive R&D supported by strong technology expertise and a large intellectual property portfolio

We place great emphasis in developing a demand-driven and highly responsive R&D. This is particularly critical for us because of our focus on the solutions and services businesses, where customers demand customized services. Through our on-site sales teams, we are able to get first-hand feedback from our customers and provide solutions tailored to their differentiated needs and requirements, which we believe in turn contributed to increased customer loyalty. The extent of our R&D efforts is reflected in the following:

• IP portfolio. As a result of our continued focus on innovation, we have built an extensive

intellectual property portfolio. As of the June 30, 2015, we had 334 PRC-registered patents, 136 PRC-registered software copyrights and 601 patent applications pending approval by the PRC State Intellectual Property Office.

• Team. We have built an industry-leading R&D team with strong technology expertise. As

workforce, of whom 72 have post-undergraduate degrees and 58 have more than five years of industry experience. Mr. Jichuan Sun, our chief technology officer, has more than 20 years of industry experience and led the development of the first generation of domestically developed Chinese character generators and video editing systems in China.

• Results. Our R&D team has pioneered a series of industry-leading innovations in China,

which we believe have given us a first mover advantage in rapidly gaining market share in these market sub-segments. These innovations include:

o in 1994, the first windows-based Chinese character generator in China; o in 1997, the first video editing system in China;

o in 2001, the first domestically developed 3D virtual studio solutions recognized by SARFT;

o in 2005, the first HD video editing system in China;

o in 2010, the first domestically developed visual effects and video compositing system, which we launched under the brand Dunhuang; and

o in 2013, the cutting-edge multi-camera recording and editing system that allows for secure, reliable and quick integration and editing of recordings from up to 40 cameras at once, which we launched under the brand “CreaStudio.”

• Financial resources. We have expended significant resources on our R&D. In 2013 and

2014 and the six months ended June 30, 2015, our total R&D expenditures (including both capitalized and expensed) amounted to RMB66.9 million, RMB70.6 million and RMB36.3 million, respectively, representing 13.3%, 17.4% and 13.0%, respectively, of our revenue in these periods.

Large, diverse and high-quality customer base with long-term relationships

We have a large, diverse and high-quality customer base. In 2013 and 2014 and the six months ended June 30, 2015, we served 302, 298 and 174 customers, respectively, which included TV broadcasters, new media operators and other digital video content providers.

Our customer base during the Track Record Period covers most of the central-, provincial- and capital city-level TV broadcasters in China, including 28 of the 31 provincial-level TV broadcasters during the Track Record Period. Our customer base includes the dominant players in the media business, such as CCTV, the largest TV broadcaster in China, and Shanghai Media Group, both of which are among the most well-recognized names and historically have been our top customers. The larger broadcasters in China such as CCTV and the provincial-level TV broadcasters, compared to their smaller peers, have greater demand for high-end products and more advanced solutions that are supported by both higher revenue bases and government subsidies. In addition, the supplier

qualification standards at the larger broadcasters are often more stringent, which is a further testament to our “新奧特” (“Xin’aote”) brand and the quality of our products and services. The results of our product development efforts for our larger broadcaster customers then can be offered to smaller local broadcasters at more cost effective prices.

We have established long-term relationships with most of the central- and provincial-level TV stations in China, and with some of the provincial-level TV broadcasters in China for over 20 years. Among our top 10 customers in 2014, seven had business relationships with us for more than 10 years. These long-term relationships enable us to better understand our customers’ long-term needs and help them achieve better system continuity and compatibility through system expansions and upgrades, which is usually of a three to five year cycle, according to the Frost & Sullivan Report. For instance, during early 2000s, many of our TV broadcaster customers engaged us to upgrade their systems or procure additional solutions, services or products to commence simultaneous high-definition and standard-definition, or HD/SD, broadcasting. As the TV broadcasting industry in China migrates to a 4K ultra-high definition standard, continuing its omnimedia convergence as well as a cloud-computing platform, we expect to benefit further from these relationships as they implement their next phase of expansions and upgrades.

New businesses leveraging our technical expertise to drive future growth

In recent years, we have sought to leverage our core strengths in digital video technology to expand into a wider range of products and applications. For instance, to address the rising market demand for digital video content creation and distribution on consumer mobile devices, we have successfully developed video-editing mobile application based on our industry-leading visual effects and video compositing technologies, including the Dunhuang-series visual effects and video comprising systems. Launched in October 2014, Meicam (“美攝”) is a mobile application that allows users to conveniently create and edit high-quality videos using a variety of advanced features and share the finished contents on a variety of social media platforms. As of June 30, 2015, we had approximately 1.9 million downloads with over 50,000 and 150,000 weekly and monthly active users, respectively. According to the Frost & Sullivan Report, Meicam was ranked seventh among video-editing mobile applications in China in 2014 in terms of the number of average monthly active users. We are currently developing a number of viable revenue models for Meicam, including revenue-share from sales of user-generated model templates.

In addition, leveraging our core technology and our strong market position in the live sports broadcasting business, our joint venture, Beijing Hermit, in which we hold a 40% equity interest, has developed a digital technology, AutoAd, to insert virtual advertising images to live sporting events. In April 2015, Beijing Hermit entered into a cooperation agreement with a third party, which owns the broadcasting rights to the games of a leading European professional football league in China, to jointly market and sell virtual advertising in China where the games are broadcasted during the 2015/16 and 2016/17 seasons.

We believe the successful launch of these new products will be critical steps in our efforts to further diversify our product portfolio and drive our growth.

Nationwide sales coverage with efficient and effective customer services

We have established a nationwide sales coverage through our in-house sales team and distributors, which provides us with the depth needed to serve the large broadcaster customers and the breadth to help us reach the smaller local broadcasters.

Our in-house direct sales team mainly focuses on serving provincial-level broadcasters and larger broadcaster customers. Direct sales to our core customers enable us to better understand the needs of these customers, which, in turn, helps us (i) in the pre-sale process, design better solutions to meet their needs, thereby driving sales; and (ii) in after-sales services, respond more quickly to customers’ issues to maintain service quality. We provide efficient and effective customer services, such as on-site maintenance services and routine technical support, with a view to ensuring that technical issues are resolved on a real-time basis. Our direct sales efforts supported by our strong customer services, we believe, have strengthened the stability of our technical support team, which, in turn, would enhance our service quality and customer experience.

Complementing our in-house direct sales team is our distribution network comprising 18 distributors in eight provinces and provincial-level municipalities as of the Latest Practicable Date. Our distributors mainly focus their sales and support efforts on smaller local TV broadcasters and other industry users including governmental agencies, schools and state-owned and private enterprises, and are selected based on their local knowledge and industry contacts. According to the Frost & Sullivan Report, there were approximately 1,996 local broadcasters below the provincial-level in 2013. We believe that the model of using distributors to target smaller local broadcasters and industry users is the most effective and efficient way of reaching out to this part of our customer base.

Professional and experienced management team

Members of our management team have strong academic backgrounds in computer science and engineering and extensive knowledge of, and experience in, China’s digital video technology and services industry. Our Board of Directors and senior management members have an average of 10 years of experience in the digital video technology and services industry. Mr. Fushuang Zheng, our founder and the chairman of our Board of Directors, is a well-recognized industry pioneer and visionary and has been critical in developing and maintaining key customer relationships. Mr. Baodong Liu, our chief executive officer, has applied his international engineering and management experience in guiding our growth. Mr. Jichuan Sun, our chief technology officer, has more than 20 years of industry experience and led the development of the first generation of domestically developed Chinese character generators and video editing systems in China. Our management team possesses complementary skills required for many aspects of our business, including software development, operations, finance as well as sales and marketing. These skills have been enhanced by management training received from leading domestic and foreign institutions and extensive overseas experience in engineering development and management. We believe the leadership, vision, management experience and the proven track record of this management team will continue to be instrumental in driving our future success.