Page 20 - 2015年光通信竞争力报告(摘要版)

6 The competitiveness report on "the Top 10 competitiveness enterprises in the optical communications industry of China & Global market in 2015” (Abstract Edition)

Preface • Work summary

Though recovering of the world economy is still going on more slowly than expected in the past year, the global optical communication market is gradually
becoming better in the whole year of 2014. With booming of business application in the field of internet and mobile internet, optical communication industry in
our country is also developing fast and domestic demand for optical fiber and cable is maintaining a growing trend.

With the strategy of “Broadband China” deeply promoted and “Internet Plus” promoted to be both a national strategy and top design idea from a hot word
in the industry, the concept of “big data” has obviously transferred into business value, initiating a new circle of innovation in the ICT market. In the “new
normal” phase, optical communication enterprises in our country is embracing a new round of development opportunities. Chinese market has become a major
force to facilitate development of the global optical communication industry. From exporting of simple products in the past to building factories overseas and
construction of local service team nowadays, internationalization of optical communication enterprises is now stepping from internationalization of market and
resource in the past to a new stage of complete state of combining the internationalization of brand, producing and service.

According to Competitiveness Report for Optical Communication Enterprises 2015, by following and supervising the financial data and indicators in the annual
report of optical communication enterprises in the 2014-2015 year, it has been found out that growth in the optical transmission, optical components and optical
communication fields have achieved comparatively big growth and optical fiber and cable only marks a small drop when viewing from the weighted average
value of the directly calculated hard indicators and basic data of the top 10 competitiveness enterprises( by comprehensively weighting the sales revenues,
net assets, net profits, return on total assets, net return on net assets, sales revenues contribution per employee, the ratio of export revenues to total revenues,
average growth rate of sales for the last 3 years and average growth rate of net profitsfor the last 3 years).This fully shows that even our national economy has
stepped into a “new normal” phase in this year, the optical communication enterprises remain a sound development status, which is benefitted from mastering
the development trend of a series of national strategies by those enterprises.

It has been 9 years since Network Telecom Information Institute concentrated on competitiveness analysis on Chinese optical communication enterprises. By
integrating analysis in the past 9 years and exemplified by the top 10 competitiveness enterprises in the optical communication industry and its branches in China,
as shown by table 1 and figure 1, we find that the competitiveness in the field of optical transmission, optical components, optical communication and optical fiber
and cable generally appears a fluctuate upgrading trend and develop comparatively fast in recent two years, which is a quite promising achievement.

Table 1 The standard value weighted of directly calculated basic Figure 1 The standard value weighted of directly calculated
hard index of top 10 competitiveness enterprises in the field of optical basic hard index of top 10 competitiveness enterprises in

communication and its branches in China the field of optical communication and its branches in China

2007 2008 2009 2010 2011 2012 2013 2014 2015

optical 0.19088 0.37092 0.32356 0.49090 0.65790 0.51460 0.61810 0.37700 0.68960
transmission

optical components 0.50118 0.63440 0.49824 0.45730 0.59640 0.65990 0.53530 0.57780 0.85100

optical 0.55895 0.50939 0.79995 0.70526 0.91444 0.84685 0.62521 0.84689 0.98000
communication

optical fiber and 0.55690 0.50375 0.82646 0.60030 0.88160 0.87690 0.77350 1.03700 1.03250
cable

Source: Network Telecom Information Institute. Source: Network Telecom Information Institute.

Specifically, by comparing the range, we find that the dispersion degree in the field of optical transmission and optical fiber and cable is comparatively huge and
the figure shows big distance in competitiveness in the two; while dispersion degree in the optical components field is relatively small, which evidences that
this field generally appears a tight and harmonious development trend.

Table 2 range of the top 10 competitiveness enterprises in the optical Figure 2 range of the top 10 competitiveness enterprises in
communication industry and its branches in China the optical communication industry and its branches in China

2007 2008 2009 2010 2011 2012 2013 2014 2015

optical 2.4404 2.313 2.5898 2.8541 2.9811 3.0716 3.0536 3.269 3.2886
transmission

optical components 2.4106 2.6912 2.2297 1.1953 1.4248 1.7528 3.101 3.0555 2.6466

optical 2.7785 1.7599 2.702 2.9281 2.6401 2.9781 3.1357 2.9686 2.8256
communication

optical fiber and 1.5135 1.8357 1.7634 1.9667 1.4588 1.8553 1.5353 1.9325 2.2100
cable

Source: Network Telecom Information Institute. Source: Network Telecom Information Institute.

To step more deeply into each company of the top 10, which are the leaders in the optical communication industry and its branches, we find that optical
transmission and optical fiber and cable field are relatively stable, especially in the latter while the former is relatively more changeable in recent 9 years. The
big change and fierce competition can be evidenced by 21 enterprises listed in the ranking in the past 9 years. Generally, change range in the top 5 enterprises is
not so obvious while indecisiveness in the industry is comparatively high. However, the field of optical components is particular to a certain degree except the
case when Accelink Technologies ranks at the top all through the year while competition in other several top enterprises is fierce, the change range will be huge.

Looking back development status of the optical communication industry and its branches in recent 9 years, generally, we can see an upgrading trend and that
this industry is pursuing prosperity and going the outside world step by step. Certainly, some problems concerning development also exist. In October 2013,
May 2014 and August 2015, Network Telecom Information Institute has made questionnaire investigation for optical communications in China, aiming to
know about how enterprises in this field judge the economic state currently and in the medium and long term. Through investigating of the survival state and
environment of the optical communication three times in recent 3 years, we come to conclusions as below:

(1) Pressure of rise in price of the raw material is still heavy; according to investigation data on judgment of price change of the raw material in the future of the optical fiber
communication enterprises, most optical communication enterprises is not optimistic about the variation trend of the price of raw material in the future. More than half,
69.3% of the optical communication enterprises believe that the price of raw material in the future will maintain rise and 23.3% of the enterprises insist that the price in the
future will remain the current price level while only a few enterprises considers that the price will keep falling down, occupying only 2.4% of all the enterprises.

(2) The problem of difficulty in applying for loan has been alleviated; the support capital gained by optical communication enterprises via applying for loans
in 2014 is not optimistic but the problem of difficulty in applying for loan has been alleviated: obtaining loans as a common difficulty is a common for most
enterprises, occupying 39.68%; obtaining loans as the hardest and relatively difficulty for enterprises respectively takes up 13.28% and 26.55% while those find
it easy or not a problem to obtain loan accounts for 13.56% and 6.93% respectively.

(3) Optical communication enterprises varies great in judgment on export; generally speaking, there is great difference in judgment on export of the next year
for those enterprises. 39.47% of them are optimistic while 38.24% of them are pessimistic, almost accounting for the same ratio. Therefore, there is great
uncertainty in export trend of optical communication products in the future and judgment on export is obviously different for different enterprises.

(4) That the cost of production factor increases too fast has become the main factor affecting business of optical communication enterprises and currently it
has become the dominant fact affecting business of enterprises in this field. In the process of investigation, in terms of selecting the current comparatively big