Operation of Internet and related service industries in the first half of 2022

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

1Overall operation status

　　Internet business revenue keeps growing. In the first half of the year, China's Internet and related service enterprises above designated size (hereinafter referred to as Internet enterprises) achieved Internet business revenue of 717 billion yuan, up 0.1% year on year.

Figure Cumulative growth of Internet business revenue (%)

The decrease in total profit has 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, with the growth rate falling 0.3 percentage points from January to May. The total profit reached 64.54 billion yuan, a year-on-year decrease of 6.2%, which narrowed by 8.6 percentage points compared to the period from January to May.

The growth rate of research and development funds is stable with some fluctuations. In the first half of the year, China's Internet enterprises above designated size invested 38.87 billion yuan in R&D, up 6.4% year on year, and the growth rate fell 2.7 percentage points from January to May.

2、 Operational status by domain

　（1） The income of enterprises in the field of information services is steadily increasing. In the first half of the year, the Internet business income of information service oriented enterprises (including news and information, search, social networking, games, music and video, etc.) grew 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 of the industry.

　　（2） The income decline of enterprises in the field of life services continues to decline. In the first half of the year, the Internet business income of platform enterprises mainly providing life services (including local life, car rental, tourism, financial services, cars, housing, etc.) decreased by 24.6% year on year, 4 percentage points more than that from January to May.

　　（3） The revenue of enterprises in the field of online sales has maintained double-digit growth. In the first half of the year, the Internet business income of enterprises mainly providing online sales services (including bulk commodities, agricultural and sideline products, integrated e-commerce, medical supplies, express delivery, etc.) grew 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 of the industry.

3、 Regional operation status

　　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 Internet business revenue of 654.4 billion yuan, up 1.7% year on year, 1.9 percentage points lower than that from January to May, 1.6 percentage points higher than the overall growth of the industry, accounting for 91.3% of the national Internet business revenue. The revenue from Internet business in the central region was 24.59 billion yuan, down 13.0% year on year. Internet business revenue in the western region reached 35.06 billion yuan, down 17.2% year on year. Internet business revenue in Northeast China reached 2.96 billion yuan, up 26.4% year on year, 26.3 percentage points higher than the overall growth of the 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%), Shanghai (up 9.8%), Guangdong (down 1.4%), Zhejiang (up 0.9%) and Tianjin (down 43.3%), the top five cities in terms of cumulative Internet business revenue, achieved a total of 616 billion yuan in business revenue, up 1.8% year on year, accounting for 85.9% of the national total. There are 16 provinces and cities where the growth rate of Internet business income has achieved positive growth, including Hubei, Xizang and Liaoning, whose growth rate has exceeded 50%.

4、 Development of Mobile Applications (APPs) in China

　　The total number of mobile applications (APPs) remains stable. As of the end of June, the number of monitored apps in the domestic market in China was 2.32 million, the same as the previous month. The number of mobile application developers reached 1.022 million, with a net increase of 5000 in June; The cumulative download volume of apps on third-party app stores reached 2204.9 billion times, with a net increase of 50.6 billion times in June.

Information source: Intelligent Manufacturing