Industrial Fulian's net profit last year increased by over 50%: cloud service provider AI server revenue grew more than 3 times, plans to distribute 12.9 billion yuan in dividends

Benefiting from the rapid surge in global AI computing demand, Foxconn Industrial Internet has achieved new highs in several core operational indicators since its listing.

On the evening of March 10, Foxconn Industrial Internet (601138.SH) officially released its 2025 annual performance report. The annual report shows that the company’s revenue in 2025 exceeded 900 billion yuan, reaching 902.887 billion yuan, a year-on-year increase of 48.22%; net profit attributable to shareholders was 35.286 billion yuan, up 51.99%, with profit growth outpacing revenue growth. During the reporting period, basic earnings per share (EPS) were 1.78 yuan, up 52.14% year-on-year; return on equity (ROE) was 21.65%, an increase of 5.8 percentage points compared to the previous year. Both of these key profitability metrics set new records since the company’s listing.

In Q4 2025, revenue was 29.896 billion yuan, a 73% increase year-on-year; net profit attributable to shareholders was 12.799 billion yuan, up 58.5%. Foxconn Industrial Internet’s profitability growth accelerated significantly, with net profit attributable to shareholders reaching 10.373 billion yuan in Q3 and further rising to 12.799 billion yuan in Q4, achieving two consecutive quarters with net profits exceeding 10 billion yuan.

AI Business Becomes Core Engine: Cloud Computing and High-Speed Network Revenue Soars

In its letter to shareholders, Foxconn Industrial Internet pointed out that artificial intelligence is reshaping the global tech industry at an unprecedented pace. The widespread application of generative AI has rapidly shifted computing demand from “general-purpose computing” to “high-performance computing.” AI infrastructure has become a core foundation driving digital economy development, leading the global tech industry into a new growth cycle. In 2025, the company’s overall operational efficiency and profitability significantly improved, mainly driven by the increasing proportion of AI-related business within its cloud computing segment.

Specifically, Foxconn Industrial Internet stated that the main reason for performance growth was the continuous expansion of the AI server market, steady increase in market share among key clients, and excellent performance of cloud service provider businesses, all contributing to overall revenue growth.

At the business level, **cloud computing revenue reached 602.679 billion yuan, an 88.70% increase year-on-year, becoming a major growth engine for the company. The proportion of AI-related business increased significantly, becoming a key driver of this segment’s growth. Notably, revenue from AI servers for cloud service providers grew over threefold year-on-year, with GPU and ASIC-related products also experiencing rapid growth, further consolidating the company’s leading position in the global AI server market. Foxconn Industrial Internet stated that it is actively collaborating with clients on next-generation products, with delivery capacity and supply chain integration remaining among the top in the industry.

The communication and mobile network equipment segment generated revenue of 297.851 billion yuan, up 3.46% year-on-year, though its gross margin decreased by 0.28 percentage points. The company noted that as data center networks transition to 400G/800G and even 1.6T, demand for 800G and above high-speed switches has exploded. Based on the high base of growth in 2024, revenue in this segment is expected to surge 13 times in 2025, becoming a new growth engine. The product portfolio now covers Ethernet, Infiniband, and NVLink Switch technologies, meeting the interconnection needs of large-scale data center clusters. Foxconn Industrial Internet indicated that with the mass production of 1.6T switches and the implementation of CPO technology, this business is expected to continue driving rapid revenue growth.

The terminal precision component business benefited from structural opportunities brought by AI smartphones, achieving double-digit year-on-year shipment growth.

The industrial internet segment reported revenue of 694 million yuan, a decrease of 26.15% year-on-year. The company stated that during the reporting period, it added four lighthouse factories externally, covering industries such as home appliances, auto parts, pharmaceuticals, and new energy. To date, it has completed the internal construction of nine lighthouse factories and empowered 13 externally. Going forward, the company will deepen the integration of AI and smart manufacturing, exporting its digital and intelligent manufacturing capabilities.

Plan to Distribute 12.9 Billion Yuan in Dividends

In terms of cash flow, Foxconn Industrial Internet said that after a temporary pressure in Q3, operating cash flow significantly recovered, improving from -5.548 billion yuan in Q3 to +9.378 billion yuan in Q4, leading to positive full-year operating cash flow of 5.238 billion yuan. Regarding scale expansion, as of the end of the reporting period, total assets reached 456.224 billion yuan, up 43.68%; cash and cash equivalents stood at 110.025 billion yuan, an increase of 51.90%, with ample cash reserves. Net cash flow from financing activities turned from outflow to inflow of 47.397 billion yuan, continuously strengthening financing capacity.

On external equity investments, Foxconn Industrial Internet disclosed that during the global AI boom, the company has shifted from a steady growth “leader in AI infrastructure” to an “AI ecosystem builder,” expanding its presence along the AI industry chain. In 2025, it focused on industrial AI: first, as the largest shareholder of Dingjie Digital Intelligence Co., Ltd. (300378), it supported issuing 828 million yuan of convertible bonds to fund the “Digital Intelligence Ecosystem Empowerment Platform” project, enhancing the effectiveness and relevance of AI applications in industrial vertical models and deepening AI collaboration in core industrial software.

Second, it participated in the pre-IPO and MiniMax Group Inc. (0100.HK) IPO of Beijing Zhipu Huazhang Technology Co., Ltd. (2513.HK), a leading domestic multimodal large model company, marking its continued extension from “hardware computing power” to “AI application ecosystem.”

Third, Foxconn Industrial Internet invested in Lingyun Optical Technology Co., Ltd. (688400.SH), which is actively developing AI + machine vision intelligent inspection systems and high-speed optical communication modules, with increased R&D investment and rapid business growth, forming effective synergy in AI vision and computing infrastructure fields.

Additionally, the financial report disclosed that Foxconn Industrial Internet plans to distribute a cash dividend of 6.5 yuan per 10 shares (tax included), totaling 12.9 billion yuan. The total cash dividends for the year (including interim dividends) will reach 19.451 billion yuan, with a cash dividend payout ratio of 55.12%, both hitting new highs since listing.

Since its IPO in 2018, Foxconn Industrial Internet has maintained a high dividend payout strategy, consecutively announcing billion-yuan dividend plans for four years, with total dividends paid out reaching 63.1 billion yuan.

As of the close on March 10, Foxconn Industrial Internet’s stock price rose 2.97%, closing at 54.36 yuan per share.

(Source: The Paper)