The Chinese internet giants have continued to grow positively over the last five months thanks to new digital applications
In the first five months of this year, Chinese internet giants have seen a steady expansion of their market and their revenues. Furthermore, online games, streaming videos and music videos contributed to the positive sign.
For example, just take Alibaba. The Chinese e-commerce giant said its net income for the fiscal year ending March 2018 rose 47 percent year-on-year to 64 billion yuan.
Alibaba saw its net income for the fiscal year rose 47 percent year-on-year to 64 billion yuan
Furthermore, according to experts, these data should continue to be positive in the coming years. According to industry insiders, China’s internet and related sectors will witness double-digit growth in the next three to five years.
As a result, the gains of Chinese companies have also increased. According to data from the Ministry of Industry and Information Technology, Chinese firms in the internet and related sectors last year earned 332.5 billion yuan from January to May, up 23.9 percent year-on-year.
Information services were the biggest revenue contributor, earning 300.4 billion yuan during the period
Robin Li, chairman and CEO of Baidu, said: “We had a strong start in 2018, with our core business exhibiting robust growth, and continue to execute on our strategy to strengthen Baidu’s mobile foundation and lead in artificial intelligence”.
According to data provided by Baidu, its net profit grew by 277 percent from a year earlier to reach 6.7 billion yuan by the end of March.
Chinese e-commerce giant Alibaba, instead, said its net income for the fiscal year ending March 2018 rose 47 percent year-on-year to 64 billion yuan.
“The internet and related sectors will witness double-digit growth in the next three to five years,” said Lu Zhenwang, CEO of Wanqing Consultancy in Shanghai
JD.com, on the other hand, saw its net income reach 100.1 billion yuan in the first quarter of 2018, an increase of 33.1 percent year on year.
“Chinese internet companies are investing heavily in internet finance, artificial intelligence and cloud computing, and e-commerce in rural areas and cross-border e-commerce will be new growth points in the future” said Wu Hequan, an academician with the Chinese Academy of Engineering.
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