Business Strategy: Non-financial public companies start a new round of capacity expansion cycle.

The commercial strategy research report entitled "From Financial Reports to Industry Cycle Phases and Changes in Supply and Demand Structure - A Deep Analysis of the A-share 2025 Annual Report and the 2026 First Quarter Report Part Two" has been released. The report states that non-financial listed companies have started a new round of capacity expansion cycle. In the first quarter of 2026, the year-on-year growth rate of in-progress projects of non-financial listed companies on the A-share market hit bottom and rebounded, and the growth rate of capital expenditure has been narrowing quarter by quarter since 2025, with a year-on-year positive growth of 3.2% in the first quarter of 2026. The growth rate of capital expenditure leads in-progress projects by about a year, and currently both have entered an upward trend at turning points, indicating the start of a new round of capacity expansion cycle. At the industry level, most industries have gone through a capacity elimination phase in the past three years, and currently the growth rate of capital expenditure is generally turning positive or narrowing, with only the capital expenditure growth rate of public utilities continuing to expand. Information technology, midstream manufacturing, and resources are the main drivers of capacity expansion.