(Yicai) Jan. 27 -- China's industrial profits recovered sharply last month, driven by policy support, and demand is expected to strengthen throughout this year.

Profits of industrial enterprises with annual revenue exceeding CNY20 million (USD2.8 million) increased by 11 percent year-over-year to CNY763.6 billion (USD105.2 billion) in December, the National Bureau of Statistics disclosed today. This marks a significant turnaround from November's 7.3 percent decline. Revenues rose by 4.2 percent to CNY14.3 trillion (USD2 trillion) last month, up from November's 0.5 percent increase.

Pan Xiangdong, chief economist at Qilai Research Institute, predicted in a recent media interview that industrial demand will strengthen this year, with the decline in industrial product prices likely to moderate. Profit growth is expected to show an upward quarterly trend as policies gradually take effect.

Despite the December improvement, full-year performance in 2024 remained mixed, with profits falling 3.3 percent to CNY7.4 trillion (USD1.02 trillion) while total revenue increased by 2.1 percent to CNY137.8 trillion.

Profits recovered steadily in the fourth quarter, as the year-over-year decline narrowed by 12.7 percentage points compared to the third quarter, following the implementation of new policy measures, said Yu Weining, a statistician at the NBS.

Industrial momentum gained strength throughout the year, according to Yu. High-tech manufacturers saw profits rise by 4.5 percent year-over-year, contributing 0.8 percentage points to overall growth. Notable increases included nearly tripled profits for unmanned aerial vehicle manufacturers, doubled profits for smart vehicle equipment makers, a 67 percent increase for optoelectronic device companies, and a 49 percent boost for lithium battery firms.

The home appliance trade-in program, launched in the first quarter of last year, has successfully stimulated consumption. During the fourth quarter, manufacturers of refrigeration equipment saw profits nearly triple, while cleaning and sanitation equipment makers recorded a 43 percent increase, and air conditioning manufacturers posted a 31 percent gain, Yu reported.

Editors: Dou Shicong, Emmi Laine