Page 19 - 2020年光通信竞争力报告(摘要版)

8 The competitiveness report on "the Top 10 competitiveness enterprises in the optical communications industry of Global & China market in 2020” (Abstract Edition)

The global optical device market size in 2019 is about 9.8 billion US dollars, declined by 4.85% year-on-year,
comparing to 10.3 billion US dollars in 2018. Meanwhile, the size of China's optical device market reached about $3.6
billion in 2019, down 2.7% year-on-year, accounting for 37.5% of the global optical device market share.

The concentration of global optical module manufacturers continues to increase. In 2019, Broadcom, Lumemtum,
II-VI, Optical Technology and Sumitomo Electric ranked top five in terms of market share. The light module
market has undergone great changes and the integration of the industry leaders has entered the peak in that year, for
instance, II-VI merged Finisar, Lumentum merged Oclaro, Cambridge merged Oclaro's Japanese module business,
etc.

As the global optical communication industry mergers and acquisitions, the ranking list of the world top ten biggest
optical device manufacturers changed in 2019, in which Chinese light device manufacturers occupy four positions
on the list (Accelink, Zhongji Innolight, Hisense Broadband and O-net), meanwhile, three are from the United
States, three are from Japan, the remaining four are from China. This illustrates that Chinese enterprises have made
great progress in the field of optical devices and narrowed the gap between the United States and Japan. Accelink
was still ranked fourth this year, the same as last year, while Zhongji Innolight, Hisense Broadband and O-net were
ranked sixth, eighth and tenth respectively. Broadcom, Lumentum and II-VI ranked top three with comprehensive
competitiveness scores of 1000 points, 979 points and 968 points respectively, with a small gap in competitiveness.
In terms of market share, the top-ranked Broadcom occupied 11.24% market share, while Lumentum and II-VI, the
second and third ranked companies, accounted for 13.7% and 6.13% respectively. Accelink ranked fourth with a
market share of 7.65%, while the other three Chinese enterprises Zhongji Innolight, Hisense Broadband and O-net
ranked sixth, eighth and tenth with market shares of 6.64%, 5.84% and 2.81% respectively. Sumitomo, Fujikura and
Furukawa Electric had market shares of 6.43%, 5.43% and 3.31% respectively.

Figure 3 Global Optical Device Enterprises Market Share

Since 2019, the downside risks of the world economy have been exacerbating, with the treacherous international and
domestic situation, the significant increase of the uncertain factors, and the global epidemic spreading, consequently,
in the second quarter of 2020, the optical fiber cable industry development in China had begun a slow decline,
the listed cable enterprise revenue growth is also at a slowing pace, in addition to the volatility of the total market
capitalization, the continuous declination of the investment and the differentiation of the industry pattern, leading to
the fact that optical fiber cable industry in China has come into a stage of mature and stable adjustment.

(I)Prosperity Index fell
Both the consensus index and the leading index fell. Due to the impact of COVID-19, the overall growth of China's
optical fiber and cable industry slowed down in the third quarter of 2020. The consistent index was 100.21, down 0.07
points from the previous year (Q2 2015 =100, the same below), reflecting the development of the industry in the
current period. The leading index, reflecting the future trend, was 100.12, down 0.06 points year on year. It indicates