The company has established stable and long-term business relationships with major customers, and the company's brand is trustworthy; (2) the company produces quality products with industry insights and provides thoughtful and reliable customer service; and (3) there are quality control procedures in place to ensure that the company's products can meet customer requirements. As of the last feasible date, the company has a quantity control program composed of 52 employees, which implements more than 200 internal quality control procedures covering a number of business areas, such as manufacturing, production, and product testing. (4) Southern Communications, one of the company's main subsidiary companies, has been recognized as a high-tech enterprise in China's Jiang Province since 2010.

The market environment of the general optical industry is affected by a number of factors, including the macro economic environment, growing interconnection and mobile phone penetration, e-mail investment, government, new technologies and legal and regulatory issues. It is estimated that China's GDP will grow at an annual rate of 5.9 percent from 2015 to 2020, creating a favorable environment for continued investment in mutual aid and mobile communication infrastructure construction. It is expected that the annual growth of mutual and mobile phone usage will be beneficial to the market. The number of Internet users is estimated to grow at a complex annual growth rate of 3.4% from 2015 to 2020. The penetration rate of mobile phones is estimated to increase from 96.1% in 2016 to 99.3% in 2020. Investment in the banking sector is expected to grow by 7% year-on-year from 2015 to 2020, further supporting the demand for light. Various laws and regulations have promoted the implementation plan of the Republic of China and other government measures. These measures include the strategic implementation plan of China, the 12th five-year plan of the communications industry, and the guidelines on accelerating the construction of high-speed Internet networks and promoting the acceleration and reduction of high-speed Internet networks, which are aimed at increasing the popularity of the Internet and increasing the speed of data transmission to close to the level reached and ╱ or expected in the previous market.

In terms of demand, China's demand for telecommunications and optical equipment accounted for 57% of the global demand in 2015, while by demand, its proportion in the global demand continued to increase to 67% in 2020. From 2015 to 2020, the demand of China's telecommunications and optical market is expected to grow at a complex annual growth rate of 7.7%, which is due to the upgrading measures adopted by the government. In particular, 5G network investment will help achieve sustainable growth by 2020.

From 2011 to 2015, the communication optical output of domestic suppliers increased significantly, with a compound annual growth rate of 22.2%, mainly due to the strong demand for optical consumption in the period. Driven by government measures, X-ray demand grew at a compound annual rate of 23.2% from 2011 to 2015. From 2015 to 2020, the communication optical output of domestic suppliers is expected to increase at a complex annual growth rate of 7.8%. The increase will continue to benefit from China's ever-growing demand for light. From 2015 to 2020, the compound annual growth rate of China's optical demand is expected to reach 7.7%. On the other hand, from 2011 to 2015, due to the continued decline in the quality of various raw materials used in domestic production, the light supply capacity of domestic suppliers has declined. From 2015 to 2018, due to the strong growth in demand and revenue from light and light production, China's light industry is expected to rise slightly, while from 2018 to 2020, due to the increase in demand and the decline in the price of raw materials, China's light industry is expected to fall again. From 2016 to 2020, strong demand is expected to continue to boost China's optical production at a complex annual growth rate of about 5.0%. Freedonia estimates that the utilization rate of China's optical production will increase from 76 per cent in 2015 to 88 per cent in 2020.

Calculated on the basis of past records over the past three years, the income of the collection company has increased from 2.652 million in 2013 to 6.126 million in 2015, with a combined annual growth rate of 52.0%. The annual growth rate of profits has increased from 146 million in 2013 to 722 million in 2015, with a compound annual growth rate of 122.4%. The increase in sales is mainly due to the following factors: (I) continued increase in demand in China's optical market; and (ii) an increase in sales orders granted to companies by major e-mail network licensors in China. For the three years ended December 31, 2015 and the five months ended May 31, 2016, China's major e-mail network operators (including their respective provincial or local affiliated companies or branches) jointly accounted for 92.6%, 93.2%, 95.4% and 99.7% of the total sales of the company, respectively. In the same period, the company's largest customers (one of China's major e-mail network competitors) accounted for about 57.0%, 56.9%, 65.6% and 50.7% of total sales respectively.

HK $1.01 per share of the collection proceeds of 2.456 million yuan) will be used for the following purposes: about 48.9% for the second phase of the construction project; about 28.5% for the development or collection of optical production value; about 10.1% for research and establishment of laboratory; about 6.1% for self-financing; and about 6.5% for general investment funds.

The valuation has accelerated the implementation of the strategy of "China" and "light to market", but the overall production capacity of the optical industry is still ☆-saving.Even though Southern Telecom is the tenth largest optical supplier, its market share accounts for only about 3%, reflecting that the industry is relatively fierce. 6869.HK is one of the best companies in the industry, with a price-to-earnings ratio of 14.5 times and a price-to-earnings ratio of 2.5 times, while Southern Telecom is based on a price-to-earnings ratio of 12.7 times to 15.2 times, compared with the latter, the latter's valuation is not outstanding, so we recommend speculative stocks.

Negative factors: (1) in the customer cluster of the cluster, while the loss of major customers may affect the company's business, business conditions and business performance; (2) the company may face face-to-face and trade receipts due to the concentration of customers and the increase in the number of tickets due to the increase in the number of days of average transaction receipts and the level of assets related to the level of income (3) the trading policies of China's major e-mail networks may affect the obligations and operations of the company that result in the removal of restrictions; (4) any activities related to government investment and other policies related to China's credit industry may prevent the company from maintaining the current rate of growth and lead to unsustainable profit growth, and the company's future planning may be significantly adversely affected. (5) for the five months ended May 31, 2016, the company recorded financial outflows from financial activities. If the company fails to meet its payment obligations, obligations, operating conditions and operating expenses may be seriously affected.