Ministry of Industry and Information Technology (MIIT) released the software industry economic performance data on July 23.
I. Overall performance
Revenue
Software business revenue growth rate continues to pick up. In the first half, China’s software industry recorded business revenue of 350.09 billion yuan, an increase of 6.7%, (15.0 percent year-on-year growth in the same period last year), 12.9 percentage points higher than in the first quarter.
Profit
Profit growth rate turned from negative to positive. In the first half of the year, the industry achieved a total profit of 424.1 billion yuan, up 1.3% YOY, turning the negative growth in the first five months, but down 8.6 percentage points over the same period last year.
Export
In the first half, the software industry recorded exports of 22.3 billion U.S. dollars, down 0.4% year-on-year (2.6% growth in the same period last year), a decline of 12.8 percentage points narrower than Q1. Among them, outsourcing services exports rose 4.6% year-on-year, embedded systems software exports rose 5.4% year-on-year.
Employees and Wage
Total wage growth rate rose slightly. In the first half, the average number of employees in China’s software industry 6.73 million people, up 0.1% year-on-year, total wages of employees increased 1.4%, a growth rate of 4.1 percentage points higher than Q1.
ii. Performance by subfield
Software product revenue grew steadily. In the first half of the year, software products revenue of 961.5 billion yuan, up 3.3% YoY (fall 10.8 percentage points compared with the same period last year), compared with the first quarter, an increase of 13.5 percentage points, accounting for the proportion of industry-wide revenue of 27.0%. Among them, industrial software product revenue reached 89.3 billion yuan, up 5.2%, accounting for the proportion of software product revenue of 9.3%.
Information technology services revenue growth rate continued to rise. In the first half of the year, IT service revenue reached 215.83 billion yuan (accounting for 60.6% of the industry’s revenue), up 9.5% YoY (the highest growth rate in the four sub-sectors), but still down 7.7 percentage points compared to the same period last year. Revenue from e-commerce platform technical services was 350.7 billion yuan, up 14.6% year-on-year, but down 8.0 percentage points from the same period last year; revenue from big data services was 97.9 billion yuan, up 9.1% year-on-year; revenue from integrated circuit design was 96.4 billion yuan, up 12.8% year-on-year; and revenue from cloud services was 88.4 billion yuan, down 0.7% year-on-year.
Revenue from information security products and services narrowed the rate of decline. In the first half of the year, information security products and services recorded a total revenue of 52 billion yuan, down 2.6% year-on-year (10.8% year-on-year growth in the same period last year), a decline of 11.7 percentage points narrower than the first quarter.
Embedded system software revenue growth rate from negative to positive. In the first half of the year, embedded system software revenue of 389.2 billion yuan, up 1.5% year-on-year, down 6.3 percentage points over the same period last year, up 16.2 percentage points over the Q1.
Source: http://miit.gov.cn/n1146312/n1146904/n1648374/c8025317/content.html
