Page 36 - Market Analysis Report of Optical Communications Field in China & Global market 2019

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

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 2019' (Integrated Edition)" 】

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Figure 9: Global optical components market in 2018-2022 Figure 10: Market share of global optical component
enterprises in 2019

and it has begun to transform from the stage of complete
competition to the stage of concentration. In the next few
years, the market competitive structure will continue to
evolve, while effective integration is conducive to the
development of industrial norms.
Electric are 5%, 4% and 3% respectively.
It is expected that the large-scale deployment cycle of 5G
network will be ushered in 2020-2022, which will promote 2. Chinese Optical Components Market
the periodic upgrading of access network, metropolitan In 2018, the market scale of China’s optical component
area network and transmission network. Figure 9 shows the was about US $4.1 billion, down 2.38% year on year. And
global market scale of optical components in 2018-2022. in 2017, it was US $4.2 billion. In addition, the Chinese
optical component market is still dominated by the telecom
Among the top 10 optical component manufacturers in the market.
world, three are from the United States, another three are
from Japan, and the remaining four are from China. This The industrial chain of optical component can be
proves that Chinese enterprises have made great progress specified as “optical chip, optical assembly, optical
in the field of optical component, and have gradually component, and optical module”, in which the chip
narrowed the gap between China and the United States and occupies the commanding elevation of technology and
Japan. Accelink still ranks 4th this year, the same as last value, and is still weak in China. In the field of optical
year. In addition, Zhongji Innolight, Hisense Broadband communication component, China has a certain market
and O-net rank 6th, 7th and 10th, respectively. II-VI, in the field of passive components and low-end optical
Broadcom and Lumentum ranked in the top three with modules. Domestic optical component manufacturers
very close comprehensive competitiveness scores of 1000 have been devoted to middle and low-end products, with
points, 993 points and 976 points respectively. In terms serious homogenic competition. As technology improves,
of market share, II-VI, the 1st-ranking company, occupies domestic high-speed optical module manufacturers,
10% of the market share, while Broadcom and Lumentum, such as Accelink, TIANYI, HGTECH, etc., continue to
the 2nd and 3rd, occupy 8% and 8% respectively; China emphasize on technical innovation and promote industrial
Telecom, the 4th, occupies 5% of the market share, while upgrading, therefore their competitiveness has been
Zhongji Innolight, Hisense Broadband and O-net rank 6th, enhanced. Accelink technology is one of the few scarce
7th and 10th with 6%, 4% and 2% of the market share companies in China that has the ability to design and
respectively; Sumitomo Electric, Fujikura and Furukawa massively produce low-end optical chips.
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