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The 10th Ranking Event of Top 10 competitiveness enterprises in the optical communications field of China & Global Market (2016)                                                                                                                                                                                   14 The competitiveness report on "the Top 10 competitiveness enterprises in the optical communications industry of China & Global market in 2016” (Abstract Edition)

         3. Ranking of the Top 10 competitiveness enterprises in the optical transmission and network access equipment field of China during 2015-2016

Ranking of "the Top 10 competitiveness enterprises in the optical transmission and network access equipment field of China during 2015-2016"

                                                 Standard value weighted of the financial data(70% weight)                                            Standard value weighted of the survey data(30% weight)

Company                   Sales Net       Net    Return    Return    Sales The ratio of      The average    The average       Total       Technology  Customer        Brand    Management   Corporation  Total standard  Comprehensive                   Source of financial data
                Ranking revenues assets  profit  on total  on net   revenues international  growth rate of  growth rate     standard      innovation  satisfaction  awareness    level of     culture    value weighted     index of Comprehensive
                                                 assets    assets  contribution revenue     sales revenues  of net profit                                                       enterprise               of the survey
                         weight weight   weight                                                             for the last      value                     weight                                                           competitiveness score of
                          18% 13%        13%     weight               per to total sales      for the last  three years    weighted of                   18%                                                                            competitiveness
                                                   8%              employee revenues          three years                  the financial                                                                      data $
%


                                                           weight weight weight             weight          weight         data weight                              weight weight weight                      %

                                                           8% 5%   6%                       14%             15% $ 34%                                             12% 11%                 25%

Huawei          1 1.7708 0.6076 0.6065 0.0051 0.0890 0.2014 0.0516                          0.0042          0.0032         3.3394 0.8409 0.6604 0.3842 0.3865 0.5836                                          2.8556     3.1943   1000                   Annual report of company
                                                                                                                                                                                                                                                                for public

ZTE             2 1.0902 0.2039 0.0704 -0.0258 0.0060 0.0533 0.0410 -0.0064                                 0.0579 1.4905 0.7551 0.4774 0.3066 0.2645 0.5867                                                  2.3903     1.7605   920 Annual report of listed company

  FiberHome     3  1.0204 0.0295 0.0041 -0.0240 -0.0074 0.0632     0.0152                   0.0016          -0.0199 1.0827 0.7852 0.3380 0.1510 0.1689                                      0.3814            1.8245     1.3053   901 Annual report of listed company
Communications                                                                              -0.0051         -0.0289 -0.0369 0.1770 0.1973 0.1676 0.1482                                     0.2502            0.9403     0.2562
                                                                                                                                                                                                                         0.0693
Raisecom 4 -0.0117 -0.0148 -0.0089 0.0018 0.0187 0.0079 0.0041                                                                                                                                                           0.0319   712                    IPO annual report of
                                                                                                                                                                                                                                                           listed company

GW Delight 5 -0.1783 -0.0210 -0.0115 0.0069 0.0578 0.0111 -0.0045 -0.0077                                   0.0060 -0.1413 0.1221 0.0984 0.1023 0.1032 0.1347                                                 0.5607                          Taxationǃresearch ˂ survey
                                                                                                                                                                                                                                  693 information˗self-reported figures

                                                                                                                                                                                                                                              and operators' tender results

Nanjing Postel 6 0.0679 -0.0195 -0.0130 -0.0381 -0.0431 0.0466 -0.0059 -0.0187                              -0.1500 -0.1736 0.1757 0.0892 0.0687 0.0630 0.1148                                                0.5114              689 Annual report of listed company

SDGI            7 -0.1845 -0.0111 -0.0106 -0.0274 -0.0192 -0.0104 0.0001                    -0.0001         -0.0012 -0.2645 0.1117 0.0889 0.0982 0.0917 0.1231                                                0.5136     -0.0311  683 Annual report of listed company

Wuhan NEC 8 -0.2333 -0.0134 -0.0128 -0.0250 -0.0344 0.0458 -0.0060 -0.0236                                  -0.0152 -0.3180 0.1348 0.0879 0.1019 0.1029 0.2068                                                0.6343     -0.0323                  Annual report of listed
                                                                                                                                                                                                                         -0.0328  682 parent company
Symfun Telecom 9 -0.2083 -0.0211 -0.0124 -0.0112 -0.0116 0.0319 -0.0037 -0.0097                             -0.0270 -0.2730 0.1142 0.0950 0.0976 0.0908 0.1300                                                0.5276     -0.1684
                                                                                                                                                                                                                                              Taxationǃresearch ˂ survey
Chuling Xinxi 10 -0.2279 -0.0167 -0.0123 -0.0092 -0.0160 -0.1864 -0.0056 0.0057                             0.0161 -0.4523 0.1177 0.0906 0.0951 0.0961 0.0945                                                 0.4940              681 information˗self-reported figures

                                                                                                                                                                                                                                              and operators' tender results

                                                                                                                                                                                                                                  670 Annual report of listed company

Note 1: Enterprises qualified for the competitiveness selection in the optical communications field of China shall have 2 or more items of relevant products as core businesses. FiberHome Technologies is the only company with 3 types of products that participates in the selection.
Note 2: What makes the list of comprehensive competitiveness enterprises in the optical communications field different from the other lists of 3 sub-sectors is the data resource of the sales revenues indicator. The data of the former list comes from the total revenues in the optical communications
business, while the data of the other 3 lists is the sales revenues of the related products in the sub-sectors of the optical communications industry.
Note 3: “Return on net assets” can be defined in different formula. To avoid the incomparable problem of net profit caused by the different corporate income tax rate in listed companies and unlisted companies, we define the molecular in the formula as net profit before tax instead of net profits.
The formula of calculating “return on net assets” is: Return on net assets=net profit before tax/ net assets.
Note 4: From the monitoring data, it is found that if the enterprise competitiveness comes mainly from the increase indicators (that is, the average growth rate of revenues for the last three years & the average growth rate of net profit for the last three years), the monitoring data of the enterprise
competitiveness is usually unstable. The main reason for the enterprise competitiveness instability is that the original sales revenues base in these enterprises was small and the increasing sales revenues of recent 2 years make the average growth rate of the past 3 years far higher than the
industry average level. The extremely high standard value of a certain indicator in the company may cause the standard value of financial data competitiveness index over high on the whole. But in the second or third years, when the growth rate of sales revenues drops to the normal average
level and instead there is no higher growth in the other indicators, the monitoring index of the enterprise competitiveness will decline significantly. To avoid the impact of abnormal change in financial indicators on the objectivity of the enterprise competitiveness evaluation, we find a practical way
to improve it. That is, we set the upper and low limit of standard value in the increase indicators (the average growth rate of revenues for the last three years & the average growth rate of net profit for the last three years) within [-1,1]. With the co nsistency of statistical test, the overdone impact
on overall standard value of financial data by the abnormal data of growth index can be eliminated.
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