FII Announces Strong Earnings Growth, Q2 and H1 Profits Set to Double Year-on-Year

Foxconn (2317-TW) subsidiary FII (601138-CN) announced today (9th) its preliminary earnings for the first half of 2024. The company expects net profit attributable to owners of the parent to reach RMB 12.8 billion to RMB 13.8 billion in Q2, representing a year-on-year increase of 86% to 101%. For the first half of the year, net profit is projected to be between RMB 23.4 billion and RMB 24.4 billion, up 93% to 101% compared to the same period last year.

For Q2, FII expects net profit attributable to owners of the parent, excluding non-recurring gains and losses, to be between RMB 12.4 billion and RMB 13.4 billion, up 84% to 99% year-on-year. For the first half, this figure is expected to range from RMB 22.7 billion to RMB 23.7 billion, up 94% to 103% year-on-year.

FII stated that the projected earnings growth is primarily due to the continuous optimization of its product mix in cloud computing, which has significantly improved operational efficiency compared to the same period last year. In the first half of 2024, revenue from AI servers supplied to cloud service providers (CSPs) increased by over 230% year-on-year.

FII emphasized that AI-related products have become a core growth engine for its main business. The company's market share among key customers continues to grow steadily. Joint R&D and design efforts with major clients for next-generation products are progressing smoothly, with mass production expected to begin gradually in the second half of the year.

Regarding communications and mobile network equipment, FII noted that high-speed interconnects in data centers have become a critical infrastructure for efficiently unleashing computing power. As a result, shipments of data center switches above 800G have increased 1.4 times year-on-year. The overall business segment remains stable, with continued customer demand release and healthy product shipment momentum.