Incident: The company announced on the evening of December 7, 2017, that it signed a strategic cooperation agreement with Huawei and reached a mutual partnership in the same boat. The two parties will further cooperate in solution construction, services, and ecological construction based on HUAWEI CLOUD to provide leading public clouds to the government and enterprises and accelerate their digitization process in a rapidly changing world. Comment: 1. Huawei is making efforts to expand its public cloud business, and Topway Information is the first “working together in the same boat” partner of A-shares. In July 2017, HUAWEI CLOUD's business fully moved into the 2.0 era. “HUAWEI Enterprise Cloud” advanced to the “HUAWEI CLOUD” brand, marking the strong penetration of Huawei's private cloud business into public clouds and its commitment to providing world-class public cloud services based on the OpenStack open architecture. Meanwhile, Huawei said it is ready to develop up to 20 partners working together in the same boat domestically to jointly build a cloud ecosystem. Currently, China Soft International, Softcom Power, and Pig Bajie Network have signed strategic cooperation agreements with Huawei. Topway Information is its fourth partner in Tongzhou and the manufacturer that has signed this strategic cooperation agreement with A-share leader, demonstrating the company's business layout, and its comprehensive strength and development strategy have been strongly recognized. 2. Using HUAWEI CLOUD technology and customer resources to enhance the strength and brand influence of the education cloud platform. According to the content of the strategic cooperation, Huawei will provide the company with a complete public cloud solution, jointly build a smart education cloud, promote applications such as education informatization systems, examination services, education evaluation systems, interactive classrooms for young children, etc., and gradually implement cloud upgrading to meet the digital needs of the education industry and help the development process of the company's smart education platform project. At the same time, the company will use Huawei's hardware equipment to reduce the cost of deploying an education cloud. Furthermore, China has previously focused on the enterprise cloud sector and has a large number of government and industry user resources. The company is expected to use Huawei's customer resource advantages corresponding to the brand to provide impetus for the continuous expansion of the education market. 3. Cloudize the company's internal IT system to enhance overall operational strength. The company plans to migrate internal IT systems to the Huawei public cloud and gradually use the Huawei software development cloud platform to carry out the entire software development process activities of the internal R&D department, promote the improvement of the company's software development efficiency, and enhance the organization and operation capabilities. 4. Provide game business channels, help the company's mobile game business develop rapidly in the past two years for the company's profit growth, and contribute long-term stable cash flow to the company. Through this collaboration with Huawei, the company's independent game agency business will not only migrate and deploy to Huawei's public cloud, but is also expected to turn game content providers in Huawei's ecological cooperation circle into incremental customers, contributing to the company's profit growth. 5. Investment advice: maintain “Highly Recommended - A”. We are optimistic about the sustainability of the company's mobile game business and the strategic layout of the “cloud and big data platform+O2O” in the education sector. Combined with joining hands with Huawei as the fourth “working together in the same boat” partner, it highlights the company's overall strength and industry recognition. In the future, we hope to use Huawei's technology, equipment, and resources to move forward in the two major fields of education and gaming. Net profit from exam preparation for 2017-2019 is estimated to be 257 million yuan, 331 million yuan, and 419 million yuan respectively. The 2018 valuation is 40 times higher, and the corresponding target price is 12 yuan/share. Maintaining “Highly Recommended - A”, the current market value is 9.118 billion yuan, corresponding to PE 39.4 times, 30.6 times, and 24.2 times, respectively. Risk warning: The sales volume of smart terminals falls short of expectations, and there is uncertainty about the profit of the new business.