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Monopolies are becoming more concentrated! The 10 chart shows what has changed in the 2 companies that controlled the Chinese Internet

via:博客园     time:2017/8/18 14:00:42     readed:852


Monopolies are becoming more concentrated

Tencent and Alibaba released the latest quarterly earnings report this week, and the third Internet Co, worth more than $400 billion, have gone by far.

Alibaba's electricity supplier business grew by 58% compared to the same period last year, Alibaba's revenue reached 50 billion 184 million yuan, net profit reached 14 billion 31 million yuan.

In the same three months, Tencent received 56 billion 606 million yuan of revenue, an increase of 59% over the same period in 2016. Mobile game revenue for the first time more than computer games, Tencent has become the most profitable business.

Over the past six months, Ali's share price grew by more than 80%, becoming Asia's first market capitalization of over $400 billion of the company, followed by, Tencent's market value has also exceeded this figure.

At the same time, Jingdong and NetEase, originally challenged by electricity providers and games, are now far from being thrown away.

Shares of Alibaba and Tencent were up 2.77% and 1.92% a day yesterday amid a plunge in share prices around the world. At the same time, Jingdong and NetEase respectively fell by 6.53% and 1.78%.

Last quarter,The shares of Jingdong and Baidu were once very closeJingdong's market value was just behind Baidu at less than $700 million. Liu Qiangdong's company again rose 1% or Robin Li company fell 1%, Chinese third Internet Co to the owners.

But no matter whether Baidu can hold third place, Alibaba and Tencent have been far away from Baidu. We'll tell you ten pictures of the most valuable Chinese Internet company. How are you doing now?.

The growth of Tencent and Alibaba has come from traditional core business

Alibaba, the big online economy, depends mainly on consumer purchases.

This year's 3-6 months, 466 million people in the Alibaba electricity supplier shopping, which is almost 1/3 of the total population of China, and the per capita contribution income from 202 yuan to 273 yuan. Revenue from electricity suppliers accounted for 86% of Alibaba's total revenue, at the same time last year, this figure is 73%.

The Chinese are increasingly getting used to buying supplies on Taobao and Tmall, and Tmall's platform, the number of paid merchants and average spending are at record levels.

Alibaba chief financial officer Wu Wei attributed the growth of this part


The Internet Co, the highest paid Tencent, is essentially a gaming company.

WeChat's active users grew to 960 million in the past three months, it has covered all the Chinese Internet users, the three consecutive quarter of Tencent's advertising revenue rose to 12 billion 943 million yuan, in the first quarter, accounting for 22.8% of the total revenue.

However, the biggest part of Tencent's revenue comes from the game, the month of King glory month of active users rose for a year, so that Tencent mobile game revenue growth to 14 billion 800 million, for the first time exceeded the income of computer games.


With the decline of the heat of yin and Yang, the game income gap between NetEase and Tencent becomes more obvious. In the game market, Tencent has thrown away the pursuers.


New growth is a core business, and neither of these firms is too strong a chaser for these companies. Making more money on the user through the core business is the most important thing at the moment.

Profits surge, there are other reasons, Tencent rely on investment, Ali by saving money

Tencent and Ali invested a large number of Companies in China and overseas, with financial investment and strategic investment.

This quarter, Tencent's profit growth of 70%, in addition to the game, advertising and other core business continued rapid growth, successful investment also helped it gain more profits.

2016, Tencent through an investment fund holding Korea's largest hand travel company Netmarble 22% stake, is the third largest shareholder of the company. Netmarble received about $8 billion 700 million in revenue in 2016.

In April this year, Netmarble listed in South Korea, the market value of about 9 billion 900 million U.S. dollars (about 66 billion 700 million yuan) or so, Tencent shares in the hands of about 14 billion 600 million yuan, the sell-off can be profitable.


The investment is more like a financial investment. Netmarble's most popular "Paradise 2", Tencent did not introduce it to the mainland, Hongkong and Taiwan region also operated directly by Netmarble.


Ali's new business investment is still at a loss, but it is good control of the core business and operating expenses.

It's on the front with Jingdong at 6

The Alibaba figure, however, dropped from 73.6% a year ago to 65.2%. Moreover, the proportion of R & D, marketing and management expenses to income is reduced to some extent. Including equity incentive costs, the total cost of expenditure in the proportion of revenue decreased by 8%.

In addition, thanks to good operating results, Alibaba received 25 billion 300 million yuan operating cash flow this quarter, and the investment in cash flow control at 13 billion 900 million yuan, both inside and outside the throttle.


Alibaba and Tencent, each quarter from a user on a net profit of 30 yuan

It's all over China today751 million Internet usersAlmost everyone uses WeChat, and half spend more than 90 minutes a day on it. Every month, 529 million people brush Taobao on their phones.

Worked out, each user to Tencent and Alibaba each quarter contributed nearly 30 yuan of net profit respectively.


In 2016, he replaced Robin Li as the company's chief executive, and 6 months later, he announced a new plan for Baidu's transformation and found a new source of revenue

The Jingdong's business income is about two times of the Alibaba, but not with profit ARIBI

The advertising business of several big companies is in the headlines

Baidu's net profit was 2/3 less in 2016, the first annual decline in profits since Baidu was founded. But in the quarter, Baidu finally regained its growth.

The reason is that Baidu has found a new source of income

The advertising revenue as the core business of Baidu, in 2016 after the medical advertising issues focus on the outbreak, the personnel turmoil, finally after a year to regain the advertising revenue growth this quarter, Baidu's network marketing is advertising revenue increased 5.6%, reaching 17 billion 883 million yuan, the total revenue of nearly 9 into the main business after 4 consecutive quarters of decline in.

Inside letterSay.

QuestMobiles data show that mobile phones in the second quarter of, the number of active users over 100 million.


Mobile phone Baidu before revision (left), after revision (right)

This kind of personalized recommendation similar to today's headlines, so that Baidu information stream advertising revenue has been from the end of the first quarter of 10 million yuan per day, increased to 30 million yuan per day now.

Prior to Baidu, after getting the information will not continue to browse in a Baidu search, which makes Baidu can't increase advertising frequency, and search the combo box plus the flow of information, allowing users to stay longer,

As a result, Baidu's information traffic revenue has risen by 200% compared to the first quarter.

Tencent's original advertising growth is almost entirely supported by WeChat and QQ space. In 2016, Tencent brand display advertising revenue growth of only 11%, mainly from the Tencent news.

This quarter, Tencent media advertising growth rebounded to 48%, relying on Tencent began in the media field continues headlines today, more dependent on the penguin number from the media content.

Affected by this, Tencent advertising revenue for the first time in the second quarter exceeded 10 billion, an increase of 55%.

They provide similar interfaces, similar ambiguities, similar shocks, and similar advertisements.


Baidu uses search to attract users, adding content to the user's stay. Tencent has increased the number of content from a large number of media accounts, reducing the cost of production.

Ali acquired UC browser from last year into a content platform, whether it is the interface or content are more like today's headlines,


UC browser before revision (left), after revision (right)

But their new businesses are still burning money, in addition to Ali cloud

Tencent's second quarter earnings show, QQ's monthly active users fell 5.4% again.

That figure has been dropping since a year ago. Tencent explained that the decline was due to the impact of non core users, emphasizing the rise of core user participation. While WeChat's sync is increasing, it means getting more money from existing users is what companies need to get ready before the arrival of the ceiling.

For Alibaba and Baidu, it's the same.


Outside the core business, how to make more money with new business has become the most important thing, but this has not been done well.

In the past year, Ali, Tencent and Baidu are still relying on traditional business to make money, and by 2017, this thing has not changed, and even more profitable core business.

Tencent's online advertising business grew by 76% in the second quarter of 2017 to $6 billion 307 million, and most of the cost was spent on new content, Tencent video content, investment and marketing.

The Tencent's executive director Liu Chiping admitted in a conference call, although the number of video advertising and subscription users have increased significantly, but the content costs rise faster, so far, a net loss of the online video business is expanding.

Baidu's problems are even more serious. Baidu, in addition to its search business, received a 7 billion 800 million subsidy for Iqiyi last year. This figure is still increasing this year, Baidu's second quarter cost of content rose to 3 billion 112 million yuan.

Although in revenue, Iqiyi's revenue in the second quarter of more than 1 billion yuan. But operating margins, Iqiyi made Baidu's second quarter operating profit margin in 2017 (not in accordance with GAAP) reduced by 11.5%.

The new video business has turned into more cost to compete for share, and advertising and paid revenues from subscriptions have slowed down the burn rate, and new businesses are likely to take a long time from a large percentage of revenues.

Ali's new business, whether it's cloud computing or digital entertainment, has shown relatively good results in the quarter. Cloud computing subscribers for the first time more than 1 million, becoming the first Asian to reach millions of users scale cloud computing company, from earnings perspective, Ali cloud revenues for the quarter reached 2 billion 431 million yuan, the loss is reduced to 4%. Its long term investments began to pay off, and the break even was already a matter of time.

But Ali's other businesses are still losing money. Digital entertainment section is the second largest source of revenue Alibaba, revenue for the quarter was 4 billion 81 million yuan, an increase of 30%. Although a lot of revenue, but this plate is mainly composed of UC, Youku, potatoes, Ali sports, Ali music, Ali game, barley composition. There will be more investment in the cost of content. This quarter, the loss of Alibaba entertainment section reached 3 billion 388 million yuan.

Other Chinese technology companies are getting farther and farther away from Ali and Tencent

Although it is difficult to find new businesses, Ali and Tencent are increasingly far ahead of other Chinese technology companies because of the growth of their main business.

By the end of 2016, NetEase's game revenue grew by 78%, to 10 billion 700 million. The debate between the "Yin Yang division" and its "King glory", who is the first in the mobile game market, has never ceased.

But six months later, Tencent's game business accelerated growth, while NetEase has slowed down. The same thing happened to the Jingdong. Spending a lot of money still does not allow users to develop the habit of buying, after a quarter of earnings, Ali behind the pursuer had to slow down, and return to the rhythm of loss.

While Alibaba achieved more revenue growth in the same quarter, profits almost doubled.


Today, Alibaba and Tencent, the largest 8 overseas listed Chinese technology companies, and the market capitalization of only $240 billion, only about 6 of a Tencent company.

Third Baidu is only 1/5 of Ali or Tencent.

As for the companies that have not yet been listed, the basic investment is also large.

It may be that it has become more concentrated to say what has happened to the market's long standing monopoly.

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