Hon Hai's financial report is supplementary, Fii's Q3 profit hits a single-quarter high

Fii (Sh.601138), a subsidiary of Hon Hai (2317), benefited from the continued rise in global demand for AI computing power, which drove the simultaneous increase in cloud computing and network communications businesses. In the third quarter, its revenue and profits hit a single-quarter high. Among them, AI-ASIC server shipments increased 1.5 times year-on-year and 80% quarter-on-quarter. AI-GPU cabinet shipments also maintained double-digit growth, and new-generation AI cabinets have also begun shipments.

Fii Industrial announced its third-quarter financial report today, with single-quarter revenue of RMB 383.554 billion (approximately NT$1,875.579 billion), an annual increase of 57.73%; net profit attributable to shareholders of the parent company was RMB 16.634 billion (approximately NT$1,875.579 billion). NT$81.334 billion), an annual increase of 60.35%, exceeding RMB 10 billion (approximately NT$48.9 billion) for five consecutive quarters, with earnings per share of RMB0.84 (approximately NT$4.11), an annual increase of 61.54%.

Fii's cumulative revenue in the first three quarters was RMB 941.414 billion (approximately NT$4.603514 billion), an annual increase of 55.88%; net profit attributable to shareholders was RMB 40.375 billion (approximately NT$197.434 billion), an annual increase of 79.55%; earnings per share were RMB 2.04 (approximately NT$9.98), an annual increase of 80.53%.

Fii Industrial pointed out that benefiting from the continued explosion in demand for AI computing power, the company's market share among major customers has steadily increased, coupled with the excellent performance of its cloud service provider business, driving overall revenue growth. As the product structure continues to be optimized, net profit after deducting non-recurring gains and losses in the third quarter increased by 64.82% year-on-year, and the growth rate in the first three quarters reached 82.15%, reflecting the continued improvement in core business operating efficiency.

In terms of cloud computing business, Fii Industrial's third-quarter revenue increased by 75% year-on-year and 25% quarter-on-quarter. GPU and ASIC advanced in parallel, becoming an important engine for promoting diversified business growth. Among them, AI-ASIC server shipments increased 1.5 times year-on-year and 80% quarter-to-quarter, with particularly strong growth momentum; AI-GPU cabinet shipments increased 70% year-on-year and 15% quarter-to-quarter, showing that both major product lines maintain an expansion trend.

It is worth noting that Fii Industrial revealed that the new generation of AI cabinets has begun to be shipped, and the overall market share continues to increase compared with the previous generation of products, reflecting the company’s layout in the new generation of AI computing infrastructure market is gradually showing results. In addition, the business of Wi-Fi 7 routers and low-orbit satellite broadband equipment has also grown rapidly. Fii has further strengthened its diversified business growth momentum through cloud computing and AI server product lines.

In the Netcom business, also benefiting from the growth in demand for AI infrastructure, Fii's network equipment revenue increased 1.2 times year-on-year and 25% quarter-to-quarter in the third quarter. Shipments of 800G and above switches increased 80% year-on-year and 25% quarter-to-quarter. Its products include multi-chip platform Ethernet switches, co-packaged optics (CPO) switches, NVLink switches and SuperNIC network cards. It continues to expand the layout of high-speed interconnect products for AI data centers.