Page 35 - Market Analysis Report of Optical Communications Field in China & Global market 2018

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Ⅳ Analysis of Strength and Weakness of the Top 10 Competitiveness Enterprises in Competitiveness Index

Table 9-2 The analysis of the strength and weakness index among the enterprises in the optical components and auxiliary equipment & raw material field of China
Sales revenues The ratio of The average growth rate The average growth rate
Sales
Return on
Return on
Company Ranking revenues Net assets Net profit total assets net assets contribution per to total sales revenues of sales revenues for the of net profit for the
international revenue
employee
last three years
last three years
Accelink 1 ĭ į į į į į į į į
Zhongji Innolight 2 ĭ į į į į į į ĭ į
O-net 3 ĭ į į į į į į į į
HGTECH 4 ĭ į į į į į į į į
JONHON 5 ĭ į į į į į į į į
HONGHUI 6 ĭ į į į į į į į į
Eoptolink 7 ĭ į į į į ĭ į į į
TIANYI 8 ĭ į ĭ ĭ ĭ ĭ į ĭ į
T&S Communications 9 ĭ į į ĭ į į ĭ į į
TFC 10 ĭ į ĭ ĭ į į ĭ į į
Note7: The financial data of competitiveness is formed by 9 indicators of certain weight, and the strength and weakness indicators are different in each
company. We classify the 9 indicators into 2 sorts: one is higher than the competitiveness score of the company, that is, these indicators improve the
company's competitiveness, we call it the strength indicator; otherwise, it is weakness indicators. What the readers should be reminded is that we classify
the sorts by the standard value of fundamental data in companies' competitiveness but not the average score of the whole industry. For example, Prysmian's
standard value of the net assets is 0.6904, above the average value, and above the standard value of the company's competitiveness, thus we put it into
strength indicator. In the tables, the strength indicator is labeled by "↑", and weakness indicator by "↓". With the indicators divided into 2 sorts, the
enterprises can pay more attention to their weakness ones, which oriented their effort to improve the competitiveness. As for the order of the indicators to
draw attention, you can refer to the indicators of the corporators’ specific data to determine.
【For more details of status analysis of the related enterprises, please refer to " The competitiveness report on 'The top 10 competitiveness enterprises
in the optical communications industry of China in 2018' (Integrated Edition)" 】

continuing from page 41
As of August 20, 2018, the three major telecom operators in China all an 8.3% year-on-year growth, atop of its industry peers. EBITDA amounted
unveiled their Interim Report 2018, according to which, three major to RMB45.8 billion, up by 4.8% year-on-year. The profit before income tax
operators in the first half of 2018 totally earned about 81.7 billion yuan, reached RMB7.8 billion and the profit attributable to equity shareholders
about 454 million yuan a day. China Mobile’s net profit of 65.6 billion yuan of the Company increased by 145% year-on-year to RMB5.9 billion. China
of was far ahead, earning about 364 million yuan a day. Unicom upheld its precise investment strategy and strived to enhance
investment returns by taking extensive effort to exploit the potential value of
1.China Mobile various resources and drive sharing through cooperation. Capital expenditure
Figure 27 China Mobile-Stable Market Role and Profit Growth for the first half of the year amounted to RMB11.6 billion. Thanks to the
effective management of capital expenditure and notable improvements in
profitability, the company’s free cash flow amounted to RMB39.3 billion,
reaching another record high level. Its liabilities-to-assets ratio went further
down to 43.5%, reflecting an increasingly healthy financial position.
3.China Telecom
Figure 29 China Telecom-Reliable Major Business Revenue Growth

China Mobile’s financial performance in the first half of 2018 remained
healthy. The company recorded operating revenue of RMB391.8 billion, up
by 2.9% compared to the same period last year. Telecommunications services
revenue was RMB356.1 billion, up by 5.5% compared to the same period
last year, maintaining solid market position. It’s total number of connections
has increased to 1.425 billion, comprising 906 million mobile connections,
135 million wireline broadband connections and 384 million IoT (Internet of
Things) smart connections. It is particularly encouraging that in some areas, In the first half of the year, China Telecom’s operating revenues amounted
machine-to-machine connections have already outnumbered human-to- to RMB193.0 billion. Of which, service revenues amounted to RMB177.6
human connections billion, representing an increase of 7.0% over the same period last year
(if excluding the impact of the application of International Financial
2.China Unicom Reporting Standard 15 on the current period, it represented an increase of
Figure 28 China Unicom-Net Profit Soaring to 145% 8.5% over the same period last year) with revenue growth surpassing the
industry average for consecutive years. Revenues from emerging businesses
accounted for 51.2% of service revenues, representing an increase of 6.1
percentage points over the same period last year with continual optimisation
in revenue structure. EBITDA amounted to RMB55.9 billion and EBITDA
margin3 was 31.5%, which remained primarily stable compared with the
same period last year. Net profit amounted to RMB13.6 billion, representing
an increase of 8.1% over the same period last year while basic earnings
per share were RMB0.168, achieving persistent favourable growth. Capital
expenditure was RMB32.9 billion, representing a decrease of 19.9% with
China Unicom reported remarkable growth in its operating results for the first persistent and appropriate control. Free cash flow reached RMB18.4 billion
half of 2018. Service revenue amounted to RMB134.4 billion, representing which has increased remarkably over the same period last year.

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