mobile payment tools to pay bills when shopping at physical stores such as restaurants, supermarkets and convenience stores. The payment habit is rapidly developed among consumers living in low-tier cities, with a “no wallet” era quietly initiated. Online payment brings shopping users convenience and minimizes the inconvenience of merchants in reducing operating costs and managing cash, greatly promoting the use of offline payment Apps. According to the survey, 50.3% of netizens pay bills through mobile payment when shopping at a physical store. Offline payment Apps have strong development potential, with the utilization ratio in rural areas, fourth-tier cities and fifth-tier cities respectively registering 31.7%, 43.5% and 38.0%. V. The Development of Online Entertainment Applications 5.1 Online games Up to December 2016, China had 417 million online game players who accounted for 57.0% of all netizens and represented an increase of 25.56 million from 2015. In particular, the number of mobile online game users reached 352 million, an increase of 72.39 million from the end of 2015, accounting for 50.6% of mobile Internet users. User Scale and Utilization Ratio of Online Games/Mobile Online Games Dec. 2015 – Dec. 2016 10,000 persons 57.0% 50000 56.9% 50.6% 60% 39148 41704 50% 40000 45.1% 30000 35166 40% 27928 30% 20000 20% 10000 10% 0 0% 2015.12 2016.12 Number of users of online games Number of users of mobile online games Utilization ratio of online games (by all Internet users) Utilization ratio of mobile online games (by all mobile Internet users) Source: Statistical Survey on Internet Development in China 2016.12 Figure 61 User Scale and Utilization Ratio of Online Games/Mobile Online Games Dec. 2015 – Dec. 2016 72 In 2016, the online game industry as a whole maintained a steady growth. As a core growth The 39th Statistical Report on Internet Development in China

Statistical Report on Internet Development in China - Page 82 Statistical Report on Internet Development in China Page 81 Page 83