(Yicai Global) Feb. 10 -- Chinese industrial companies reported a quickening pace of profit growth in the fourth quarter of last year, according to the central bank's survey findings.

Between October and December, firms' two-year average profit growth was 18.7 percent, rising from the third quarter's 14.2 percent hike, due to their improved operations, according to survey results that the People's Bank of China published on its WeChat account yesterday. More than 5,600 firms, most of which were big or mid-sized, participated in the poll.

The numbers covered a two-year period, comparing to the pre-pandemic era, as industrial firms' operating conditions have changed vastly during the epidemic. The central bank hasn't revealed specific data about the sums.

Average core business income increases over the past two years climbed 6.2 percent in the fourth quarter, up from the 5.6 percent boost reported a quarter earlier.

Annual core business revenues during the preceding two years rose by 6 percent on average, up by 2.9 percentage points from 2019. Meanwhile, two-year profit growth jumped to 16.7 percent, up by 24 percentage points from 2019.

The data show that the industrial business environment is improving, with increased business transactions and quicker turnovers, Zhou Maohua, an analyst at China Everbright Bank, said to Yicai Global. Firms were also optimizing their asset and liability structures, he added.

The effect of adverse short-term factors such as flooding, new Covid-19 outbreaks, and regional power supply shortages, which were affecting industrial companies in the third quarter, was waning in the following quarter, said Zhou. Moreover, stabilizing policies began taking effect.

However, companies have weaker expectations for future prospects as the Covid-19 pandemic has limited income growth, demand, and consumption, Zhou added.

Firms' notes and accounts receivable edged up by 5.4 percent as of Dec. 31, 2021, from a year earlier, according to the survey findings. The growth was 3.6 percentage points higher than that logged on Sept. 30, 2021, and 1.8 percentage points higher than it had been a year ago.

Enterprises' retention ratios were high, which can help in future investments, according to the PBOC. As of Dec. 31, 2021, the value of retained profits climbed 14.2 percent from a year ago, rising from the increase of 9.1 percent logged a year earlier. Meanwhile, the percentage of retained net income to all profits was 40.1 percent, up by 8.8 percentage points from a year ago.

Editors: Xu Wei, Emmi Laine, Xiao Yi