Foxconn Industrial Internet (601138) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached RMB 360.76 billion, up 35.58% year-over-year, with net profit attributable to shareholders at RMB 12.11 billion, up 38.61% year-over-year.

• AI server demand and cloud infrastructure drove strong growth, with AI server revenue up over 60% and cloud server revenue up over 150% year-over-year in Q2.

• The company maintained industry leadership in AI servers, high-speed switches, and precision components, expanding global capacity and deepening customer relationships.

• No interim dividend, bonus shares, or capital reserve transfer planned for the period.

Financial highlights

• Operating income: RMB 360.76 billion, up 35.58% year-over-year.

• Net profit attributable to shareholders: RMB 12.11 billion, up 38.61% year-over-year.

• Operating cash flow: RMB 1.41 billion, down 70.76% year-over-year due to increased inventory for server orders.

• Basic and diluted EPS: RMB 0.61, up 38.64% year-over-year.

• Gross margin and net margin improved, with weighted average ROE at 7.64%, up 1.62 percentage points year-over-year.

Outlook and guidance

• AI infrastructure and server demand expected to remain strong, with continued focus on AI, cloud, and high-end mobile devices.

• Company will accelerate digital transformation, expand global capacity, and deepen AI and industrial internet integration.

• Ongoing investment in R&D and global supply chain to support long-term growth.