The latest official data points to a sizeable increase in the revenues of China’s large-scale Internet concerns in 2020 despite the economic impacts of the COVID-19 pandemic.
Data from the Ministry of Industry and Information Technology (MIIT) indicates that operating revenues of Internet and related services enterprises of designated size and above (规模以上互联网和相关服务企业) for the period from January to July were 691.6 billion yuan, for a YoY rise of 14.9%, and an acceleration of 0.8 percentage points compared to the first half.
“Enterprises above designated size” (规模以上企业) is a statistical term used in the People’s Republic of China to refer to industrial enterprises with annual main business revenue of 20 million yuan or more.
Internet and related services enterprises of designed size and above also saw operating profits of 65.66 billion yuan for the January to July period, for a YoY increase of 5.9%, and an acceleration of 3.1 percentage points compared to the first half.
The sector as a whole saw R&D costs of 36.93 billion yuan for the period, for a YoY rise of 9.9%.
Shanghai, Beijing and Zhejiang province all saw growth of over 20% in their Internet operations revenues for the first seven months of 2020.
During the period from January to July the “information service revenues” of Chinese Internet companies – encompassing online music and videos, online gaming and news, was 414.6 billion yuan, for YoY growth of 15.1%.
Analysts said a stable economic and social recovery in China following the COVID-19 pandemic was the chief factor behind the steady rise in the revenue and profits growth of the country’s large-scale Internet concerns.