Despite China's economic slowdown, German companies operating in the nation expect increased profits and sales this year, according to a survey released on Monday.

Finding qualified employees remained the biggest challenge, in addition to concerns in the protection of intellectual property, the survey by a German business organization found.

"The interviewed German companies generally held that the economic environment this year will significantly improve from last year," Joerg Mull, chairman of the German Chamber of Commerce in China and executive vice-president of the finance department of Volkswagen (China) Investment Co Ltd, told a news conference on Monday.