Chinese Internet Companies Collected Income of $222.57 Billion Jan-Nov 2021, a YoY Increase 22.3%
According to a report released by China’s Ministry of Industry and Information Technology (MIIT) on Friday, from January to November in 2021, the country’s internet and related service enterprises with annual sales revenue above 5 million yuan together completed business income of 1,415.5 billion yuan ($222.57 billion), an increase of 22.3% year-on-year, and the growth rate dropped by 1.1% from that of January to October. The average growth rate is 17.5% over the past two years.
Operational profits and costs have increased while the growth rate declined a bit.
From January to November of this year, Chinese internet companies achieved operating profit of 128 billion yuan, up 14.8% year-on-year, and the growth rate dropped by 6.5% from that of January to October. Operating costs increased by 17.3% year-on-year, and the growth rate dropped by 3.6% from that of January to October.
The R&D expenses of these companies have increased steadily. From January to November, internet companies invested 67.01 billion yuan in R&D, up 5.6% year-on-year, and the growth rate was 3% higher than that from that of January to October.
Income from information services continues to grow, amid outstanding growth of audio and video services.
From January to November, internet companies completed a total of 761.8 billion yuan in information service revenue, a year-on-year increase of 17.6%. The corresponding growth rate increased by 0.1% compared with that of January to October. This accounted for 53.8% of internet business revenue.
Among them, audio and video service enterprises maintained rapid growth. Other areas that witnessed substantial growth were online gaming enterprises, as well as news and content service enterprises. Compared with the growth rate of January to October, the growth rate of business income of enterprises mainly providing search services declined.
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Internet platforms’ revenue grew rapidly, while growth rates declined.
From January to November, internet companies achieved platform service revenue of 519.1 billion yuan, a year-on-year increase of 34.8%, and the growth rate dropped by 3.2% from that of January to October. This accounted for 36.7% of internet business revenue, up 3.1% year-on-year.
Among them, the growth rate of business income of lifestyle services platform enterprises rebounded from January to October. The revenue from online shopping platforms and the provision of manufacturing service platforms grew at a low speed, while internet data services continued to develop rapidly.
From January to November, internet companies completed online service access revenue of 40.3 billion yuan, a year-on-year increase of 3.9%. The growth rate increased by 0.5% compared with that of January to October. The revenue from internet data services (including cloud services and big data services) reached 24.15 billion yuan, up 28% year-on-year.
