Fii Reports 24% Sequential Net Profit Growth in Q2, H1 Net Profit Soars to RMB 23.74 Billion, Up 96% Year-on-Year

Fii (Industrial Fortune United) (601138-CN), a subsidiary of Foxconn (2317-TW), released its half-year report today (11th), revealing a net profit of RMB 13.15 billion in the second quarter—marking the fourth consecutive quarter exceeding RMB 10 billion—up 24% quarter-on-quarter and 91% year-on-year. The company's net profit for the first half of the year reached RMB 23.74 billion, a 96% year-on-year increase.

Fii's Q2 revenue reached RMB 306.78 billion, surpassing the RMB 300 billion threshold for the first time in a single quarter, up 22% sequentially and 53% year-on-year. H1 revenue totaled RMB 557.86 billion, up 54.6% year-on-year. Both quarterly and H1 revenue and profits hit record highs, primarily driven by explosive AI computing demand, steady market share gains among key customers, and strong performance in cloud service provider (CSP) business, all contributing to overall revenue growth.

In terms of business performance, Fii stated that its cloud computing segment saw a 75.7% year-on-year revenue increase in H1. GPU and ASIC businesses scaled up simultaneously, with CSP AI server revenue growing 2.3 times year-on-year. GPU AI rack shipments surged 3.2 times year-on-year, while ASIC AI rack shipments rose 3 times, and ASIC CPU server shipments increased 2.5 times. This further solidifies Fii's position as the global leader in the AI server market. The company is actively investing in next-generation AI platform development and accelerating the deployment of new ASIC projects, with a more diversified customer base.

Regarding communications and mobile network equipment, Fii reported that H1 high-speed data center networking revenue doubled year-on-year. Shipments of data center switches above 800G increased 1.4 times year-on-year, as did SuperNIC network card shipments. Fii noted that new product development and customer onboarding are progressing steadily. The company's product portfolio now fully covers multiple technology pathways, including Ethernet, InfiniBand, and NVLink Switch. The CPO (Co-Packaged Optics) all-optical switch has achieved prototype delivery, and Fii maintains a leading market share in the high-speed switch market.

Additionally, benefiting from stable shipments of high-end smartphones from major customers and structural upgrade opportunities in consumer electronics driven by AI smartphones, the precision mechanical components business for end devices demonstrated stable operational performance, with continued resilience.

Fii reported that its weighted average return on equity (ROE) for H1 was 13.36%, up 5.72 percentage points year-on-year. In terms of cash flow, net cash generated from operating activities reached RMB 7.391 billion, a 425% year-on-year increase. With continuous improvements in revenue, profitability, and operating cash flow, Fii has established a high-quality growth model where revenue growth, profit growth, and cash flow growth mutually reinforce each other.