Page 19 - 2019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 2019” (Abstract Edition)
Among the top 10 optical components manufacturers in the world, three are from the United States, three are from Japan,
and the remaining four are from China. This proves that Chinese companies have made great progress in the field of optical
components and are narrowing the gap with United States and Japan. Accelink is still in the fourth place this year, the same
ranking as last year, while Zhongji Innolight, Hisense Broadband Multimedia, and O-NET ranks 6th, 7th, and 10th, respectively.
II-VI, Broadcom and Lumentum ranked in the top three with comprehensive competitiveness scores of 1000, 993 and 976
points respectively, and there was no significant difference in competitiveness. In terms of market share, II-VI, the first-ranked
company, occupies 10% of the market share, while Broadcom and Lumentum, the second-ranked and third-ranked companies,
occupy 8% and 8% respectively. Accelink, the fourth company, occupies 5% of the market share, while Zhongji Innolight,
Hisense Broadband Multimedia and O-NET, the other three Chinese companies, rank 6th, 7th and 10th with 6%, 4% and 2%
of the market share respectively. Sumitomo Electric, Fujikura and Furukawa Electronic have market share of 5%, 4% and 3%
respectively.

Figure 3 Global Optical Components Figure 4 Global Optical Components
Market 2018-2022 Enterprise Market Share

In 2019, the prosperity index of China's optical fiber and cable market has declined for the first time. The revenue growth
of listed optical fiber and cable enterprises has slowed down, and the total market value fluctuated significantly. At the
same time, the investment and financing activity has been less active, the supply side of the entity economy has structurally
reformed together with the trade war. Thus the industry has entered a new era of transformation adjustment. Network Telecom
Information Research Institute has issued the prosperity index of China's optical fiber and cable market for five consecutive
years since 2015, hoping to provide valuable decision-making reference for industry colleagues to deeply understand the latest
situation and development trend of the optical fiber and cable industry.

(I) The industry is still at the low peak of the prosperity range, and prosperity index has dropped significantly
The coincident index and the leading index both decrease. In the second quarter of 2019, the coincident composite index
of China's optical fiber and cable market is 100.82 (Q2 = 100 in 2017, similarly hereinafter), decreasing by 0.04 points
than the previous quarter; the leading composite index is 100.68, decreasing by 0.14 points than the previous quarter; the
lagging composite index is 100.57, rising by 0.66 points than the previous quarter. The three indexes are all greater than 100,
and the development of China's optical fiber and cable market is still at the low peak of the prosperity zone. However, the
coincident index, the leading index and the lagging index are all declining, indicating that the industry will enter a new stage of
transformation and adjustment.

Figure 5 Leading & Coincident & Lagging Index of China’s Figure 6 Revenue Growth of Listed Optical Fiber and
Optical Fiber & Cable Cable Enterprises

(II) The growth rate slows down at high level, and the decline is significantly increased
The revenue growth falls to 10.7%. In 2018, the revenue of listed optical fiber and cable enterprises has reached 50.551 billion,