4June2024|7:54PMHKT

ChinaSoftware:Softwarespendingremainsmuted;slowerAprilgrowthat11%YoYwhileCloudandBigDataanalysisoutperform

WeseeslowerChinasoftwareindustrygrowthinAprilat+10.9%YoY,leading

4M24revenues+11.6%YoY(vs.12.8%YoYin4M23),duetoslowersoftware

spendingamidmacroweakness,andITbudgettowardinfrastructureandcomputingspace.Forcoming2Q24,weexpectsequentialgrowthofChinasoftwarecoverageat24%YoYonlowbase,stilllowerthanhistoricallevelconsideringchallenging

environment,andwekeepmonitoring(1)SMBPMIdata,(2)contractliability

ratio,(3)ARdays,(4)companyhiring,and(5)productiterationtotrackthepathofsoftwarespendingrecoveryinChina.

Verticalswithstrongergrowth:4M24cloudcomputingandbigdatasegment

+14%YoY,whilesoftwareproducts/Cybersecuritywereslowerat9%/9%YoY,

potentiallyre?ectingtheITspendingdrivenbygenerativeAIisnowstillmoreat

infrastructure,andnotyettowardplatformorapplicationsoftware.ThehigherARdaysandlowercontractliabilityratiooflocalsuppliersin1Q24,alsore?ectslongerpaybackperiodofChinasoftwarecustomers.Despitenear-termweaknesson

budgeting,weremainpositiveonsoftwareexpansioninlongtermdrivenby

strongerfeaturestodrivepaymentandChinasoftwareindustryatearlystagewithupsidetogrowacrossARPU,newcustomers’expansion,andbusinessupgrade

towardsubscriptionfromone-off.

Buy:Of?ceSoftware:KingsoftOf?ce;ERP:Yonyou,Kingdee;Automotivesoftware:DesaySV,Arcsoft;Cybersecuritysoftware:Venustech;Salesandmarketing:

Weimob;Finance:Hundsun;IoTsoftware:TUYA.Readmore:ChinaSoftwaredowngrades:ChinasoftIntl.,iSoftstone,Thundersoft.

AllenChang

+852-2978-2930|

allen.k.chang@

GoldmanSachs(Asia)L.L.C.

VerenaJeng

+852-2978-1681|verena.jeng@

GoldmanSachs(Asia)L.L.C.

SimonCheung,CFA

+852-2978-6102|

simon.cheung@

GoldmanSachs(Asia)L.L.C.

TimothyZhao

+852-2978-2673|timothy.zhao@

GoldmanSachs(Asia)L.L.C.

ShuoYang,Ph.D.

+852-2978-0701|shuo.yang@

GoldmanSachs(Asia)L.L.C.

TingSong

+852-2978-6466|ting.song@

GoldmanSachs(Asia)L.L.C.

GoldmanSachsdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,

investorsshouldbeawarethatthe?rmmayhaveacon?ictofinterestthatcouldaffecttheobjectivityofthis

report.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.ForRegACcerti?cationandotherimportantdisclosures,seetheDisclosureAppendix,orgoto

/research/hedge.html.Analystsemployedbynon-USaf?liatesarenotregistered/quali?edasresearchanalystswithFINRAintheU.S.

Jan-17

May-17

Sep-17

Jan-18

May-18

Sep-18

Jan-19

May-19

Sep-19

Jan-20

May-20

Sep-20

Jan-21

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Jan-18

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Jan-22

May-22

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Jan-23

May-23

Sep-23

Jan-24

May-24

GoldmanSachs

ChinaSoftware

ChinaSoftwareinSixcharts

Exhibit1:SMBPMIdowninMay,showing?uctuationinmacroandsoftwarespending

Exhibit2:Cloudcomputingandbigdataoutpacedtheindustryin4M24

4M24ChinaSoftwareindustryrevenuegrowthbysegment

50%40%30%20%10% 0%-10%

-20%

55

Macroweaknesssince2H23,

MarPMIrecoverywhileMay

wasdown

50

45

40

35

30

SoftwareindustryYoYSMBPMI(RHS)

16%

12%

8%

4%

0%

,semisdesignsoftware,cloudcomputingandbigdata.

Source:MIIT

Source:MIITNBS*:softwareproductsincludeindustrialsoftware;**:ITservicesincludeE-commerceITservices,

Exhibit3:WeexpectChinasoftwaretoseesequentialgrowthat24%YoYin2Q24onlowbase

Exhibit4:LowercontractliabilityratiowithARdaysremaininghigh,re?ectinglowerrevenuesvisibilityahead

(%)

40%35%30%25%20%15%10%5%

0%

35%

17%

11%

1Q24softwarecoverage

namesoutperformed

industry,whilestillwaiting

forinflectionpoint

24%

18%19%

9%

(Days)

250

200

150

100

50

0

Contractliabilityratio

(Prepayment)improvedin2023,

whileARdayswerealsohigher

4Q201Q212Q213Q214Q211Q222Q223Q224Q221Q232Q233Q234Q231Q24

25%

23%

21%

19%

17%

15%

ChinaSoftwareRevYoY

SoftwareProductIndustryRevYoY(RHS)

Avg.ARdays

Contractliabilityratio(RHS)

Source:MIIT,Companydata,GoldmanSachsGlobalInvestmentResearch

Exhibit5:Chinasoftwarecompanieshavesloweddownheadcountexpansionsince2023

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

Exhibit6:ChinaSoftwarenameshavetradedbelowUSrecently

CNandUSsoftware12MforwardP/Ssince2019

peers

(Units)

14,000

12,000

10,000

8,000

6,000

4,000

2,000

-

Optimizationin1Q24,slowerheadcountincreasaein2024

AItalentsstillinexpansion

Optimizationin1Q24,limitedheadcountin2024

20192020202120222023

#ofemployees(units)Revenuesperemployee(Rmbk)(RHS)

(Rmbk)

660

640

620

600

580

560

540

30.0

25.0

20.0

15.0

10.0

5.0

0.0

Chinasoftwarenames

aretradedbelowavg.at6xrecently

USavg.11.9x

UScurrent:9x

CNavg.9.9x

CNcurrent:6x

ChinaSoftwareP/SUSSoftwareP/S

Source:Companydata

Source:Re?nitivEikon

4June20242

4June2024

3

GoldmanSachs

ChinaSoftware

ChinaSoftware:SlowAprilrevenuesechoesourviewthatcustomers’softwarespendingrecoverytakestime

ChinasoftwareindustryAprilrevenueswere+10.9%YoY,slowingdownfromMar

+11.9%YoY,echoingourviewthatitstilltakestimetoseesoftwaregrowthrecovery.

AmongChinasoftwarecoverage,weexpectsequentialgrowthat24%YoYin2Q24onlowbase(vs.1Q24+19%YoY,Exhibit3),stilllowerthan2021levelat30%+YoY,given(1)customerITspendingbudgetconstraint,(2)lowercustomerretention,and(3)lowermarketingexpensesonpromotion.

Visibilityremainslow:

nChinaSMBPMI:ThePMIdatare?ectseconomicmomentumandiscorrelatedwithsoftwaremarketandcustomerbudgets.InMay,SMBPMIwasdownto46.7fromMar/Aprrecoveryto50.3(Exhibit1),showingrecent?uctuation,whichhasimpactoncustomerspending.

nLowercontractliability,whilehigherARdays:Thecontractliabilityratio

(prepayment)hasincreasedtoover20%since1Q23,whilewasdownfrom2Q23at23%to1Q24at21%(Exhibit4),withARdaysincreasedtohistoricalhighlevel

since2023,showinglongerpaybackperiodundersluggishmacro.

nSlowerhiring:Postheadcountexpansionin2022,theavg.numberofemployeeswasdownto11.7kunits(Exhibit5)byend-2023(vs.11.8kunitsby2022),as

softwarecompanieshaveslowedteamexpansioninordertoimprovecompanymargins,whilethismayalsoslownewcustomerpenetration/productexpansionpace.

SoftwareMonthly:Aprrevslowedto+10.9%YoYonCybersecurityandEmbeddedsoftware

April2024Chinasoftwarequickread:

1.Revenue+10.9%YoY,leading4M24toincreaseby11.6%YoY,lowerthan3M24growthof11.9%YoY:InApril,theaggregaterevenueofsoftwarecompanies

registeredinChinawasup+11%YoYtoRmb989bn(US$124bn),resultingin4M24revenuegrowthof+11.6%YoY,lowerthan3M24of11.9%YoY,perMIIT.

2.Cloudcomputingandbigdataoutpaced:In4M24,Cloudcomputingandbigdatarevenueswereup14.3%YoY,outpacingthemarketgrowth(+11.6%YoY),andsemidesigngrowth(+11.3%YoY),embeddedsoftwaregrowth(+8.4%YoY),software

productgrowth(+8.7%YoY),cybersecuritygrowth(+9.3%YoY),andE-commerceplatform(+4.5%YoY).

3.Netmarginwas11.4%,leadingto4M24at11.4%,?attishtrendvs.3M24of11.4%:InApril,netincomeofsoftwarecompaniesregisteredinChinawas

Rmb113bn(US$14bn),ornetmarginof11.4%(vs.10.2%inMarch),resultingin

4June2024

4

GoldmanSachs

ChinaSoftware

4M24netmarginof11.4%,sameto3M24netmarginof11.4%,perMIIT.

4.Overseasexposureupto3.2%:InApril,theaggregaterevenuefornon-China

marketsfromsoftwarecompaniesregisteredinChinawasUS$3.9bn,andoverseasexposurewasupto3.2%(vs.2.4%inMarch).

5.Sharefromlargeprovinceslargelystable:In4M24,theaggregaterevenueof

softwarecompaniesregisteredinChina(Rmb3.8tn)mainlygeneratedfromBeijing(23%oftotal),andGuangdong(19%),followedbyJiangsu(12%),Shandong(10%),Zhejiang(7%),andShanghai(7%).Thetop?veprovinces’revenuecontribution

accountedfor72%ofthetotalin4M24vs.72%in3M24,perMIIT.Forthetoptwoprovinces,theaggregaterevenuefromBeijingwasup17%YoY(vs.12%YoYacrossthecountry)in4M24,andthatfromGuangdongwasupby13%YoYin2023,per

MIIT.

6.ITservicesremainakeycontributor:In4M24,theaggregaterevenueofsoftwarecompaniesregisteredinChina(RmB3.8tn)mainlygeneratedfromITservices(66%ofthetotal),followedbysoftwareproductsat24%,embeddedsystemsoftwareat9%,andsecuritysoftwareandservicesat1%,perMIIT.

Exhibit7:Chinasoftwaremarketsnapshot

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

Nov-23

Dec-23

Jan-Feb24

Mar-24

Apr-24

Chinasoftwaremarket

Totalrevenues(Rmbm)*

891,851

927,358

1,193,141

940,073

1,060,781

1,243,226

1,058,072

1,225,590

1,281,102

1,704,994

1,096,969

988,679

Softwareproducts

215,045

201,287

254,933

199,748

248,090

302,762

271,195

268,527

316,782

394,405

288,942

229,381

ITservices

576,157

638,583

823,132

633,447

709,472

821,896

661,991

828,777

798,291

1,124,659

716,575

657,103

Securitysoftware

10,451

15,869

22,160

18,637

16,848

20,995

20,924

27,971

32,183

35,188

6,286

10,569

Embeddedsystemsoftware

90,197

71,619

92,916

88,242

86,370

97,573

103,964

100,315

133,847

150,742

85,167

91,627

MoM

-9%

4%

29%

-21%

13%

17%

-15%

16%

5%

33%

-36%

-10%

Softwareproducts

-18%

-6%

27%

-22%

24%

22%

-10%

-1%

18%

25%

-27%

-21%

ITservices

-10%

11%

29%

-23%

12%

16%

-19%

25%

-4%

41%

-36%

-8%

Securitysoftware

71%

52%

40%

-16%

-10%

25%

0%

34%

15%

9%

-82%

68%

Embeddedsystemsoftware

22%

-21%

30%

-5%

-2%

13%

7%

-4%

33%

13%

-44%

8%

YoY

11%

15%

18%

9%

13%

14%

15%

16%

9%

12%

12%

11%

Softwareproducts

8%

13%

13%

7%

10%

8%

20%

10%

9%

8%

11%

7%

ITservices

12%

17%

19%

12%

15%

16%

14%

17%

11%

14%

12%

14%

Securitysoftware

3%

9%

16%

8%

8%

5%

22%

16%

18%

13%

3%

1%

Embeddedsystemsoftware

13%

8%

19%

-1%

14%

14%

7%

24%

-2%

9%

16%

2%

Mix

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Softwareproducts

24%

22%

21%

21%

23%

24%

26%

22%

25%

23%

26%

23%

ITservices

65%

69%

69%

67%

67%

66%

63%

68%

62%

66%

65%

66%

Securitysoftware

1%

2%

2%

2%

2%

2%

2%

2%

3%

2%

1%

1%

Embeddedsystemsoftware

10%

8%

8%

9%

8%

8%

10%

8%

10%

9%

8%

9%

Totalnetincome(Rmbm)*

97,287

114,772

124,800

120,400

125,400

146,200

133,600

160,700

155,800

206,400

112,400

112,600

MoM

2%

18%

9%

-4%

4%

17%

-9%

20%

-3%

32%

-46%

0%

YoY

10%

7%

4%

32%

17%

53%

-12%

7%

20%

12%

18%

16%

Netmargin

10.9%

12.4%

10.5%

12.8%

11.8%

11.8%

12.6%

13.1%

12.2%

12.1%

10.2%

11.4%

Totalrevenues(Rmbm)

891,851

927,358

1,193,141

940,073

1,060,781

1,243,226

1,058,072

1,225,590

1,281,102

1,704,994

1,096,969

988,679

FromChinamarket

866,667

903,923

1,156,041

913,123

1,033,831

1,210,376

1,028,142

1,193,470

1,233,652

1,650,884

1,070,159

957,239

Fromnon-Chinamarkets

25,184

23,435

37,100

26,950

26,950

32,850

29,930

32,120

47,450

54,110

26,810

31,440

Exportratio

3%

3%

3%

3%

3%

3%

3%

3%

4%

3%

2%

3%

*Aggregaterevenue/netincomeforsoftwarecompaniesregisteredinChina.ITservicesgrowthismainlydrivenbycloudcomputingandbigdatasegment.

Source:MIIT

4June2024

5

Mar-19

May-19

Jul-19

Sep-19

Nov-19

Jan-Feb20

Apr-20

Jun-20

Aug-20

Oct-20

Dec-20

Mar-21

May-21

Jul-21

Sep-21

Nov-21

Jan-Feb22

Apr-22

Jun-22

Aug-22

Oct-22

Dec-22

Mar-23

May-23

Jul-23

Sep-23

Nov-23

Jan-Feb24

Apr-24

Mar-19

May-19

Jul-19

Sep-19

Nov-19

Jan-Feb20

Apr-20

Jun-20

Aug-20

Oct-20

Dec-20

Mar-21

May-21

Jul-21

Sep-21

Nov-21

Jan-Feb22

Apr-22

Jun-22

Aug-22

Oct-22

Dec-22

Mar-23

May-23

Jul-23

Sep-23

Nov-23

Jan-Feb24

Apr-24

Mar-19

May-19

Jul-19

Sep-19

Nov-19

Jan-Feb20

Apr-20

Jun-20

Aug-20

Oct-20

Dec-20

Mar-21

May-21

Jul-21

Sep-21

Nov-21

Jan-Feb22

Apr-22

Jun-22

Aug-22

Oct-22

Dec-22

Mar-23

May-23

Jul-23

Sep-23

Nov-23

Jan-Feb24

Apr-24

GoldmanSachs

ChinaSoftware

Exhibit8:ChinasoftwaremarketcontinuedtogrowinApril

SoftwarecompaniesregisteredinChina:aggregaterevenuesandYoY

Exhibit9:Chinasecuritysoftwarerevenues:+3%YoYinApril(vs.+1%YoYinMarch)

SecuritysoftwarecompaniesregisteredinChina:aggregaterevenuesandYoYgrowth

Rmbbn

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

Chinasoftwareandservices

revenueYoY(RHS)

40%

30%

20%

10%

0%

-10%

-20%

Rmbbn

40

35

30

25

20

15

10

5

0

SecuritysoftwareandservicesrevenueYoY(RHS)

120%

100%

80%

60%

40%

20%

0%

-20%

-40%

Source:MIIT

Exhibit10:Netmarginat11.4%inApr(vs.10.2%inMar),leadingto4M24NMat11.4%

SoftwarecompaniesregisteredinChina:aggregateNIYoYgrowthandnetmargin

Source:MIIT

Exhibit11:ITservicesremainthekeycontributor

SoftwarecompaniesregisteredinChina:aggregaterevenuesbysubsectorin4M24

Netmargin(RHS)

20.0%

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

ITservices,66%

ITsecurity,1%

Embedded

systemsoftware,

9%

Software

products,24%

Source:MIIT

Source:MIIT

Chinasecuritysoftware/ITservicesmarket+1%/14%YoYinApril2024

nChinasecuritysoftwaremarketrevenue+1%YoYinApril:InApril,theaggregaterevenueofsecuritysoftwarecompaniesregisteredinChinawasupby1%YoYto

Rmb11bn(US$1.3bn),and4M24revenuetoRmb52bn(US$7bn).

nChinaITservicesmarketrevenue+14%YoYinApril:InApril,theaggregate

revenueofITservicescompaniesregisteredinChinawasup14%YoYtoRmb657bn(US$124bn),and4M24revenuetoRmb2.5tn(US$342bn),perMIIT,drivenbycloudcomputingandbigdatarevenuesgrowthat14.3%YoYin4M24.

nServiceoutsourcingcontractvalue+39%YoYinApril:InApril,theaggregatecontractvalueofserviceoutsourcingwasup39%YoYtoRmb147bn,and4M24contractvaluetoRmb781bn,perMinistryofCommerce.Theaggregatevalueof

4June2024

6

GoldmanSachs

ChinaSoftware

serviceoutsourcingwasup48%YoYtoRmb96bn,and4M24contractvalueto

Rmb521bn,drivenbydemandfromsoftwareR&Dservices,andindustrialdesign

services(Link).

Exhibit12:Chinaserviceoutsourcingcontractvalue+6%YoYinNovember

ServiceoutsourcingmarketinChina:aggregaterevenuesandYoY

Exhibit13:Revenuefromnon-Chinamarkets+9%YoYinApr

SoftwarecompaniesregisteredinChina:aggregaterevenuesfromnon-Chinamarkets

(Rmbbn)

800

700

600

500

400

300

200

100

0

Serviceoutsourcingcontractvalue(Rmbbn)YoY%(RHS)

70%60%50%40%30%20%10%0%

-10%-20%-30%-40%

(Rmbbn)

800

700

600

500

400

300

200

100

0

Serviceoutsourcingcontractvalue(Rmbbn)YoY%(RHS)

70%60%50%40%30%20%10%0%

-10%-20%-30%-40%

Source:MinistryofCommerce

Source:MIIT

4June2024

7

GoldmanSachs

ChinaSoftware

DisclosureAppendix

RegAC

We,AllenChang,VerenaJeng,SimonCheung,CFA,TimothyZhao,ShuoYang,Ph.D.andTingSong,herebycertifythatalloftheviewsexpressedinthisreportaccuratelyre?ectourpersonalviewsaboutthesubjectcompanyorcompaniesanditsortheirsecurities.Wealsocertifythatnopartofourcompensationwas,isorwillbe,directlyorindirectly,relatedtothespeci?crecommendationsorviewsexpressedinthisreport.

Unlessotherwisestated,theindividualslistedonthecoverpageofthisreportareanalystsinGoldmanSachs’GlobalInvestmentResearchdivision.

GSFactorPro?le

TheGoldmanSachsFactorPro?leprovidesinvestmentcontextforastockbycomparingkeyattributestothemarket(i.e.ourcoverageuniverse)anditssectorpeers.Thefourkeyattributesdepictedare:Growth,FinancialReturns,Multiple(e.g.valuation)andIntegrated(acompositeofGrowth,FinancialReturnsandMultiple).Growth,FinancialReturnsandMultiplearecalculatedbyusingnormalizedranksforspeci?cmetricsforeachstock.The

normalizedranksforthemetricsarethenaveragedandconvertedintopercentilesfortherelevantattribute.Theprecisecalculationofeachmetricmayvarydependingonthe?scalyear,industryandregion,butthestandardapproachisasfollows:

Growthisbasedonastock’sforward-lookingsalesgrowth,EBITDAgrowthandEPSgrowth(for?nancialstocks,onlyEPSandsalesgrowth),withahigherpercentileindicatingahighergrowthcompany.FinancialReturnsisbasedonastock’sforward-lookingROE,ROCEandCROCI(for?nancial

stocks,onlyROE),withahigherpercentileindicatingacompanywithhigher?nancialreturns.Multipleisbasedonastock’sforward-lookingP/E,P/B,price/dividend(P/D),EV/EBITDA,EV/FCFandEV/DebtAdjustedCashFlow(DACF)(for?nancialstocks,onlyP/E,P/BandP/D),withahigherpercentileindicatingastocktradingatahighermultiple.TheIntegratedpercentileiscalculatedastheaverageoftheGrowthpercentile,FinancialReturns

percentileand(100%-Multiplepercentile).

FinancialReturnsandMultipleusetheGoldmanSachsanalystforecastsatthe?scalyear-endatleastthreequartersinthefuture.Growthusesinputsforthe?scalyearatleastsevenquartersinthefuturecomparedwiththeyearatleastthreequartersinthefuture(onaper-sharebasisforallmetrics).

ForamoredetaileddescriptionofhowwecalculatetheGSFactorPro?le,pleasecontactyourGSrepresentative.

M&ARank

Acrossourglobalcoverage,weexaminestocksusinganM&Aframework,consideringbothqualitativefactorsandquantitativefactors(whichmayvaryacrosssectorsandregions)toincorporatethepotentialthatcertaincompaniescouldbeacquired.WethenassignaM&Arankasameansofscoring

companiesunderourratedcoveragefrom1to3,with1representinghigh(30%-50%)probabilityofthecompanybecominganacquisitiontarget,2representingmedium(15%-30%)probabilityand3representinglow(0%-15%)probability.Forcompaniesranked1or2,inlinewithourstandard

departmentalguidelinesweincorporateanM&Acomponentintoourtargetprice.M&Arankof3isconsideredimmaterialandthereforedoesnotfactorintoourpricetarget,andmayormaynotbediscussedinresearch.

Quantum

QuantumisGoldmanSachs’proprietarydatabaseprovidingaccesstodetailed?nancialstatementhistories,forecastsandratios.Itcanbeusedforin-depthanalysisofasinglecompany,ortomakecomparisonsbetweencompaniesindifferentsectorsandmarkets.

Disclosures

Pricinginformation

Arcsoft(Buy,Rmb30.54),DesaySV(Buy,Rmb102.39),Hundsun(Buy,Rmb19.65),Kingdee(Buy,HK$7.84),KingsoftOf?ce(Buy,Rmb263.75),Tuya(Buy,$1.93),Venustech(Buy,Rmb18.08),Weimob(Buy,HK$1.49)andYonyou(Buy,Rmb10.93).

Logosdisclosure

Pleasenote:Thirdpartybrandsusedinthisreportarethepropertyoftheirrespectiveowners,andareusedhereforinformationalpurposesonly.Theuseofsuchbrandsshouldnotbeviewedasanendorsement,af?liationorsponsorshipbyorforGoldmanSachsoranyofitsproducts/services.

Distributionofratings/investmentbankingrelationships

GoldmanSachsInvestmentResearchglobalEquitycoverageuniverse

RatingDistributionInvestmentBankingRelationships

BuyHoldSellBuyHoldSell

Global48%36%16%64%56%41%

AsofApril1,2024,GoldmanSachsGlobalInvestmentResearchhadinvestmentratingson2,885equitysecurities.GoldmanSachsassignsstocksasBuysandSellsonvariousregionalInvestmentLists;stocksnotsoassignedaredeemedNeutral.SuchassignmentsequatetoBuy,HoldandSellfor

thepurposesoftheabovedisclosurerequiredbytheFINRARules.See‘Ratings,Coverageuniverseandrelatedde?nitions’below.TheInvestmentBankingRelationshipschartre?ectsthepercentageofsubjectcompanieswithineachratingcategoryforwhomGoldmanSachshasprovided

investmentbankingserviceswithintheprevioustwelvemonths.

Regulatorydisclosures

DisclosuresrequiredbyUnitedStateslawsandregulations

Seecompany-speci?cregulatorydisclosuresaboveforanyofthefollowingdisclosuresrequiredastocompaniesreferredtointhisreport:managerorco-managerinapendingtransaction;1%orotherownership;compensationforcertainservices;typesofclientrelationships;managed/co-managedpublicofferingsinpriorperiods;directorships;forequitysecurities,marketmakingand/orspecialistrole.GoldmanSachstradesormaytradeasa

principalindebtsecurities(orinrelatedderivatives)ofissuersdiscussedinthisreport.

Thefollowingareadditionalrequireddisclosures:Ownershipandmaterialcon?ictsofinterest:GoldmanSachspolicyprohibitsitsanalysts,professionalsreportingtoanalystsandmembersoftheirhouseholdsfromowningsecuritiesofanycompanyintheanalyst’sareaofcoverage.

Analystcompensation:Analystsarepaidinpartbasedonthepro?tabilityofGoldmanSachs,whichincludesinvestmentbankingrevenues.Analystasof?cerordirector:GoldmanSachspolicygenerallyprohibitsitsanalysts,personsreportingtoanalystsormembersoftheirhouseholdsfrom

4June2024

8

GoldmanSachs

ChinaSoftware

servingasanof?cer,directororadvisorofanycompanyintheanalyst’sareaofcoverage.Non-U.S.Analysts:Non-U.S.analystsmaynotbeassociatedpersonsofGoldmanSachs&Co.LLCandthereforemaynotbesubjecttoFINRARule2241orFINRARule2242restrictionson

communicationswithsubjectcompany,publicappearancesandtradingsecuritiesheldbytheanalysts.

Distributionofratings:Seethedistributionofratingsdisclosureabove.Pricechart:Seethepricechart,withchangesofratingsandpricetargetsinpriorperiods,above,or,ifelectronicformatorifwithrespecttomultiplecompanieswhicharethesubjectofthisreport,ontheGoldmanSachs

websiteat

/research/hedge.html

.

AdditionaldisclosuresrequiredunderthelawsandregulationsofjurisdictionsotherthantheUnitedStates

Thefollowingdisclosuresarethoserequiredbythejurisdictionindicated,excepttotheextentalreadymadeabovepursuanttoUnitedStateslawsandregulations.Australia:GoldmanSachsAustraliaPtyLtdanditsaf?liatesarenotauthoriseddeposit-takinginstitutions(asthattermisde?nedinthe

BankingAct1959(Cth))inAustraliaanddonotprovidebankingservices,norcarryonabankingbusiness,inAustralia.Thisresearch,andanyaccesstoit,isintendedonlyfor“wholesaleclients”withinthemeaningoftheAustralianCorporationsAct,unlessotherwiseagreedbyGoldmanSachs.In

producingresearchreports,membersofGlobalInvestmentResearchofGoldmanSachsAustraliamayattendsitevisitsandothermeetingshostedbythecompaniesandotherentitieswhicharethesubjectofitsresearchreports.InsomeinstancesthecostsofsuchsitevisitsormeetingsmaybemetinpartorinwholebytheissuersconcernedifGoldmanSachsAustraliaconsidersitisappropriateandreasonableinthespeci?ccircumstancesrelatingtothesitevisitormeeting.Totheextentthatthecontentsofthisdocumentcontainsany?nancialproductadvice,itisgeneraladviceonlyandhas

beenpreparedbyGoldmanSachswithouttakingintoaccountaclient’sobjectives,?nancialsituationorneeds.Aclientshould,beforeactingonany

suchadvice,considertheappropriatenessoftheadvicehavingregardtotheclient’sownobjectives,?nancialsituationandneeds.Acopyofcertain

GoldmanSachsAustraliaandNewZealanddisclosureofinterestsandacopyofGoldmanSachs’AustralianSell-SideResearchIndependencePolicy

Statementareavailableat:

/disclosures/australia-new-zealand/index.html.Brazil:Disclosureinformationinrelationto

CVMResolutionn.20isavailableat

/worldwide/brazil/area/gir/index.html.Whereapplicable

,theBrazil-registeredanalystprimarilyresponsibleforthecontentofthisresearchreport,asde?nedinArticle20ofCVMResolutionn.20,isthe?rstauthornamedatthebeginningofthisreport,unlessindicatedotherwiseattheendofthetext.Canada:Thisinformationisbeingprovidedtoyouforinformationpurposesonlyandisnot,andundernocircumstancesshouldbeconstruedas,anadvertisement,offeringorsolicitationbyGoldmanSachs&Co.LLCforpurchasersof

securiti