Source: Ministry of Industry and Information Technology (MIIT)
In the first half of the year, China’s software and information technology services industry, the software industry, saw clear results from resuming work and production: software business revenue and profit growth kept recovering, software exports gradually revived, and e-commerce platform technology services and integrated circuit design revenue grew fast.
Overall performance
Software business revenue growth kept recovering. In the first half, the industry completed software business revenue of 3.56 trillion yuan, up 6.7 percent year on year, 8.3 percentage points slower than a year earlier but 12.9 points faster than in the first quarter.
Profit growth turned positive. The industry earned total profits of 424.1 billion yuan, up 1.3 percent year on year, reversing the previous five months’ decline, though 8.6 points slower than a year earlier.
Software exports gradually recovered. Exports reached 22.3 billion US dollars, down 0.4 percent year on year, after 2.6 percent growth a year earlier, the decline narrowing by 12.8 points from the first quarter. Outsourcing service exports grew 4.6 percent, and embedded system software exports grew 5.4 percent.
Total wages rose slightly. The industry’s average headcount was 6.73 million, up 0.1 percent, with the total wage bill up 1.4 percent, 4.1 points faster than in the first quarter.
Performance by segment
Software product revenue grew steadily at 961.5 billion yuan, up 3.3 percent, 10.8 points slower than a year earlier and 13.5 points faster than the first quarter, 27.0 percent of industry revenue. Industrial software products earned 89.3 billion yuan, up 5.2 percent, 9.3 percent of software product revenue.
IT services revenue kept accelerating at 2.16 trillion yuan, 60.6 percent of industry revenue, up 9.5 percent, the fastest of the four segments though 7.7 points slower than a year earlier. Within it, e-commerce platform technology services earned 350.7 billion yuan, up 14.6 percent though 8.0 points slower than a year earlier; big data services 97.9 billion, up 9.1 percent; integrated circuit design 96.4 billion, up 12.8 percent; cloud services 88.4 billion, down 0.7 percent.
Information security products and services: the decline narrowed. Revenue totalled 52.0 billion yuan, down 2.6 percent after 10.8 percent growth a year earlier, narrowing 11.7 points from the first quarter.
Embedded system software turned positive at 389.2 billion yuan, up 1.5 percent, 6.3 points slower than a year earlier and 16.2 points faster than the first quarter.
Performance by region
East and West kept fast growth. The East completed 2.88 trillion yuan, up 7.2 percent; the Centre 143.2 billion, down 6.7 percent; the West 433.4 billion, up 9.7 percent; the Northeast 101.5 billion, up 1.6 percent. The four regions’ shares of national revenue were 81.0, 4.0, 12.2 and 2.8 percent.
The major software provinces’ revenue growth kept recovering. Among the top five provinces by revenue, Guangdong, Beijing, Jiangsu, Zhejiang and Shandong grew 8.2, 9.8, 5.1, 11.0 and 3.2 percent respectively, together taking 66.1 percent of national revenue.
Central cities’ revenue growth rose steadily. The 15 sub-provincial central cities completed 1.96 trillion yuan, up 6.3 percent and 8.3 points slower than a year earlier, taking 55.2 percent of national revenue, down 0.4 points from a year earlier; their total profits were 264.1 billion yuan, up 0.2 percent.
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