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[XGNews]: In the first half of 2022, China’s Internet business revenue was 717billion yuan, an increase of 0.1% year-on-year

The following is the [XGNews]: In the first half of 2022, China’s Internet business revenue was 717billion yuan, an increase of 0.1% year-on-year recommended by xgapn.com.

In the first half of the year, the Internet business revenue maintained a positive growth, the decline in total profits was further narrowed, and the growth rate of R & D expenses was stable.

1、 Overall operation

Internet business revenue maintained positive growth. In the first half of the year, China’s Internet and related service enterprises above Designated Size (hereinafter referred to as Internet enterprises) achieved an Internet business revenue of 717billion yuan, an increase of 0.1% year-on-year.

Figure cumulative growth of Internet business revenue (%)

The decline in total profits further narrowed. In the first half of the year, the operating costs of China’s Internet enterprises above designated size increased by 5.4% year-on-year, 0.3 percentage points lower than that from January to May. The total profit was 64.54 billion yuan, a year-on-year decrease of 6.2%, 8.6 percentage points narrower than that from January to May.

The growth rate of R & D funds is stable and declining. In the first half of the year, China’s Internet enterprises above Designated Size invested 38.87 billion yuan in R & D, an increase of 6.4% year-on-year, and the growth rate was 2.7 percentage points lower than that from January to May.

2、 Operation in different fields

(1) The income of enterprises in the field of information services increased steadily. In the first half of the year, the Internet business revenue of enterprises mainly engaged in information services (including news and information, search, social networking, games, music and video, etc.) increased by 8.5% year-on-year, 0.6 percentage points lower than that from January to may, 8.4 percentage points higher than the overall growth rate of the whole industry.

(2) The income of enterprises in the field of living services continued to decline. In the first half of the year, the Internet business income of platform enterprises (including local living, car rental, travel, financial services, cars, houses and residences, etc.) that mainly provide life services fell by 24.6% year-on-year, an increase of 4 percentage points from January to May.

(3) The income of enterprises in the field of online sales maintained double-digit growth. In the first half of the year, the Internet business revenue of enterprises mainly providing online sales services (including bulk commodities, agricultural and sideline products, integrated e-commerce, medical supplies, express delivery, etc.) increased by 17.8% year-on-year, 4.8 percentage points lower than that from January to may, 17.7 percentage points higher than the overall growth rate of the whole industry.

3、 Regional operation

The growth of Internet business income in the eastern region slowed down, and the rise in the northeast region was obvious. In the first half of the year, the eastern region achieved an Internet business income of 654.4 billion yuan, with a year-on-year increase of 1.7%. The growth rate was 1.9 percentage points lower than that from January to may, 1.6 percentage points higher than the overall growth rate of the whole industry, accounting for 91.3% of the National Internet business income. The central region achieved an Internet business revenue of 24.59 billion yuan, a year-on-year decrease of 13.0%. The Internet business revenue in the western region reached 35.06 billion yuan, a year-on-year decrease of 17.2%. The Internet business revenue in Northeast China was 2.96 billion yuan, with a year-on-year increase of 26.4%, 26.3 percentage points higher than the overall growth rate of the whole industry.

There are significant differences in the development of Internet and related service industries in major provinces. In the first half of the year, Beijing (up 7.8 percent), Shanghai (up 9.8 percent), Guangdong (down 1.4 percent), Zhejiang (up 0.9 percent) and Tianjin (down 43.3 percent), which ranked among the top five in cumulative Internet business revenue, achieved a total business revenue of 616billion yuan, up 1.8 percent year-on-year, accounting for 85.9 percent of the country. There are 16 provinces and cities that have achieved positive growth in the growth rate of Internet business revenue, including Hubei, Tibet and Liaoning, with a growth rate of more than 50%.

4、 Development of mobile applications (APPs) in China

The total number of mobile applications (APPs) remained stable. By the end of June, the number of apps monitored in China’s domestic market was 2.32 million, the same as that of the previous month. The number of mobile application developers reached 1022000, with a net increase of 5000 in June; The cumulative number of downloads of on shelf applications in the third-party app store reached 2204.9 billion, with a net increase of 50.6 billion in June.

note appended:

1. The caliber of Internet and related service enterprises above designated size is adjusted from the Internet and related service income of more than 5million yuan in the previous year to 20million yuan and above. All year-on-year growth rates in the text are calculated according to comparable caliber.

2. This year, cross regional enterprises will be divided into regions according to their registration places.

3. The total number of mobile apps refers to the total number of smartphone third-party apps on shelves in China’s market (which can be found in the third-party mobile app store after approval) during the reporting period. The calculation method is based on the total de duplication of mobile apps on shelves in more than 20 mainstream markets in China (including apple and Android stores).

4. The number of mobile application developers includes the number of enterprise mobile application developers and the number of group (individual) mobile application developers. Among them, the number of enterprise mobile application developers refers to the total number of all enterprise developers of on shelf mobile applications in China’s market during the reporting period. Here, enterprise developers refer to developers who have completed industrial and commercial registration and obtained business licenses. The number of group (individual) mobile application developers refers to the total number of team or individual developers of mobile applications on shelves in China’s market during the reporting period. Here, team or individual developers refer to teams and individual developers that have not been registered with the industry and commerce.

5. In order to more accurately reflect the market dynamics of mobile applications, the monitoring data is changed from “cumulative method (i.e. statistical data adopts cumulative calculation method)” to “on shelf method (i.e. statistical data is only calculated for on shelf applications, excluding off shelf applications)”.

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