AI Data Insight
In Q1 2026, cumulative profits of China's designated large-scale industrial enterprises surged 15.5% year-on-year, further accelerating from the 15.2% recorded in the previous January-to-February period. Benefiting from AI-related manufacturing demand, strong export momentum, and recovering producer prices, the electronics and metal smelting sectors emerged as the dual engines of profit growth. However, the dual threat of rising raw material costs squeezing mid-to-downstream gross margins and sluggish domestic demand remains a potential hidden concern for the sustainability of future recovery.