Profit growth of major Chinese industrial companies slowed during January-April this year, weighed down by the resurgence of domestic COVID-19 cases, according to official statistics, which showed firms with annual main business revenue of at least 20 million yuan ($2.97 million) saw profits grow by 3.5 per cent year on year during the period.

Profit growth, however, was 8.5 per cent in the first three months, said the National Bureau of Statistics (NBS).

The combined profits of those firms hit nearly 2.66 trillion yuan in the first four months, official data showed.

“However, their performance will recover gradually as the Omicron outbreak stabilizes, factories and companies are resuming production in an orderly manner, and measures to relieve enterprises’ burdens are showing effect,” Zhu added.