Big Internet Companies in China See 14.9% YoY Earnings Growth in 2020

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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.

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