Chinese industry embraces the Internet

Price lead

On June 21, the Ministry of Industry and Information Technology issued the “Industrial Internet Special Working Group 2023 Work Plan”, proposing the development and implementation of the “5G+ Industrial Internet” 512 upgraded version of the work plan. As soon as the news came out, the industrial Internet concept enterprises quickly came a wave of rise.

Data Treasure statistics show that in the A-share market, there are 28 concept stocks with 5G+ industrial Internet, which have generally risen since June, with an average increase of 10.36%. Inspur Information, Industrial Fulian, Baoxin Software, ZTE increased by more than 20%.

In addition to stock price agitation, the industrial Internet has also brought real income to listed companies.

From the perspective of infrastructure suppliers, as one of the three major operators, China Unicom service revenue reached 319.3 billion yuan, an increase of 7.8%. Among them, the industrial Internet segment, which focuses on data center, cloud, Internet of things, big data and other business content, achieved revenue of 70.5 billion yuan, up 28.6% from the same period last year, becoming the “first engine” of performance development, and the proportion of industrial Internet in service revenue exceeded 20% for the first time.

In 2022, ZTE’s integrated application achievements in intelligent manufacturing, smart medical care, smart education, digital government and other fields continue to emerge, and the number of “5G+ industrial Internet” projects has been invested in the construction of more than 4,000 nationwide, and a number of 5G fully connected factories have been created. This increased government and enterprise business revenue from 9.8 billion yuan in 2017 to 14.6 billion yuan, and the proportion of business in revenue increased from 9.03 percent to 11.9 percent.

As an industrial Internet platform provider, Baoxin Software has been improving its performance since 2017.

Of course, this is not the full potential of China’s industrial Internet.

In 2022, the “Industrial Internet Platform Application Data Map (2021)” developed by the National Industrial Information Security Development Research Center pointed out that the application penetration rate of China’s industrial Internet platform increased from 14.67% in 2020 to 17.5% in 2021.

On November 30, 2021, the Ministry of Industry and Information Technology successively issued three heavy “14th Five-Year Plan” : “14th Five-Year Plan” informatization and industrialization Deep Integration Development Plan “, “14th Five-Year Plan” software and information technology service Industry Development Plan “and” 14th Five-Year Plan “Big Data Industry Development Plan. It is clear that by 2025, the application penetration rate of industrial Internet platform will reach 45%.

On the whole, China’s industrial Internet is already on the way. Short-term spikes in share prices may be distorting, but they also pose a risk to latecomers. But it reflects a long-term optimism about the field as a whole.