Software News

Profile of China's software industry in Jan.-April 2009
28/05/2009

BEIJING, May 27, 2009 (Xinhua via COMTEX) -- China's software industry reports a decline in revenue growth in January-April, affected by the deepened international financial crisis and industrial structural adjustment.

-- Revenue growth down Business revenues of China's software industry in the first four months of this year went up 23.5 percent to hit 255.22 billion yuan on year, with the increase speed down 7.7 percentage points from a year earlier and 5.9 percentage points from the end of 2008.

Chart 1 shows the revenue growth of China's software industry in the first four months of 2009.

The revenues of software business in April rose 22.4 percent to 64.63 billion yuan on year, with the increase speed down 8.2 percentage points from the previous month and 12.8 percentage points from the same period of 2008.

The following table shows the growth comparison of software industry's business revenues in January-April of 2008 and 2009.

Jan.-Feb.

Jan.-March Jan.-April 2008 28.7% 32.1% 35.2% 2009 20.8% 30.6% 22.4% -- Revenue proportion of software technology service up, growth of embedded software down China accomplished software product revenues of 92.61 billion yuan in the first four months, up 24.7 percent on year, accounting for 36.3 percent of the gross industrial revenues. But the revenue growth was 5.9 percentage points lower than the same last year period.

The four-month revenues from software technology services hit 47.05 billion yuan, up 27.6 percent on year, with the growth rate 20.6 percentage points lower than the same period last year, but it accounted for 18.4 percent of the total revenue, up from 17.9 percent in 2008. Included were 4.44 billion yuan from software outsourcing services, up 29.7 percent.

The downturn on the PC market induced sluggish growth of embedded software revenues in the four months, which grew by 18.6 percent on year to 47.19 billion yuan, with growth 0.9 percentage point lower than the same period last year.

Revenues from system integration came to 61.07 billion yuan, up 22.7 percent on year, with the growth down 10.4 percentage points.

IC design yielded revenues of 7.3 billion yuan in January-April, up 22.9 percent on year, with growth 8.8 percentage points higher than that of 2008, but two percentage points lower than in January-March.

Chart 2 shows revenue the proportion of different sectors of the software industry in January-April.

-- Revenue growth diving in East China East China reported software business revenues of 219.82 billion yuan in January-April, accounting for 86.1 percent of the total in the nation, up 22.9 percent on year, with the growth rate down 9.2 percentage points from a year earlier.

Revenues accomplished in West China grew by 32.3 percent to hit 23.18 billion yuan, with the growth rate 0.3 percentage point higher.

Central China recorded software business revenues of 12.22 billion yuan, up 19.1 percent, with the growth rate 3.2 percentage points lower than the same last year period.

Chart 3 shows revenue the growth of different regions of China in January-April.

-- Export growth stable, outsourcing services down China's software export reached 4.93 billion US dollars in the first four months, up 48.2 percent on year, similar to the growth in January-March, but 6.7 percentage points lower than the same period of last year.

The export value of software outsourcing services increased by 25.8 percent to hit 380 million US dollars over the four months, but was down 4.4 percentage points in comparison with the figure in the first three months.

Chart 4 shows the export growth of the software industry during the first four months of 2008 and 2009.

Source: Ministry of Industry and Information Technology

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