(Yicai) April 27 -- China’s industrial profit growth accelerated in the first quarter, while the profit margin on operating revenue was the highest in three years, amid the implementation and effectiveness of more proactive economic policies.

Profit at industrial firms with at least CNY20 million (USD2.9 million) in annual revenue jumped 15.5 percent in the three months ended March 31 from a year earlier, boosted by a 15.8 percent increase in March, according to data released by the National Bureau of Statistics today. In the first two months of the year, the growth rate was 15.2 percent.

Their profit margin on operating revenue stood at 5.1 percent in the period, compared with a 4.7 percent gain a year earlier.

The figures show a positive cycle in the industrial economy, characterized by rising volumes, stable prices, and improving quality, Pang Ming, senior researcher at the National Institute for Finance and Development, told Yicai. The supportive policy environment, including tax and fee cuts, improved financing conditions, and measures to expand domestic demand, have all worked together to widen profit margins as well, he added.

This strong start to the year reflects the current economic stage in which external demand is relatively supportive, domestic demand is recovering moderately, and prices are gradually rebounding, according to a research report by China Galaxy Securities. But the sustainability of profit improvement still depends on dynamic changes in internal and external conditions, it noted.

Still, external uncertainties remain numerous, and the contradiction between strong supply and weak demand at home still needs to be resolved, according to Yu Weining, chief statistician in the NBS' industrial department.

Further efforts will be made to maintain stability while seeking progress, enhance quality and efficiency, and promote a meaningful improvement in the quality of the industrial economy, thereby consolidating the foundation for the positive performance of industrial enterprises, Yu added.

Profit at high-tech manufacturers above the designated size surged more than 47 percent in the quarter, contributing 7.9 percentage points to the overall industrial profit growth, NBS data also showed.

Rapid growth in the artificial intelligence and semiconductor industries drove up profits at fiber optic, optoelectronic, and display makers by 337 percent, 43 percent, and 36 percent, respectively.

Solid profit growth at high-tech manufacturers, especially those in electronics and communication equipment, shows that industrial upgrading and new quality productive forces are being released faster than before, Pang said. In his view, technology premiums are replacing the old growth model that depended on heavy resource input.

Editor: Futura Costaglione