FII(SH:601138) Hua Er Jie Jian Wen·2025-08-10 11:49Core Viewpoint - Industrial Fulian has reported strong growth in revenue and profit, driven by AI-related business, with both metrics reaching historical highs in the first half of the year. However, the net operating cash flow has significantly declined by 70.76% year-on-year [1][6]. Financial Performance - Revenue for the first half of the year reached 360.76 billion yuan, representing a year-on-year increase of 35.58% [1][5]. - Net profit attributable to shareholders was 12.11 billion yuan, up 38.61% year-on-year [1][5]. - Operating cash flow net amount was 1.41 billion yuan, a drastic drop of 70.76% compared to the previous year [1][5]. - Total assets amounted to 383.13 billion yuan, reflecting a year-on-year growth of 20.66% [1][5]. Business Growth Drivers - The company capitalized on opportunities in cloud computing, network equipment, and terminal upgrades, leading to increased order volume and value [6][7]. - The cloud computing segment showed remarkable performance, with overall server revenue growing by over 50% year-on-year, and AI server revenue increasing by over 60% [6]. - The network and terminal sectors also contributed, with revenue from 800G high-speed switches nearly tripling compared to the entire year of 2024 [7]. Asset and Equity Analysis - Total assets reached 383.13 billion yuan, a 20.66% increase from the previous year, indicating rapid business expansion [7]. - Net assets attributable to shareholders slightly decreased by 0.67% to 151.67 billion yuan, suggesting that the company may be leveraging debt to support its growth [7]. - The weighted average return on equity improved to 7.64%, up 1.62 percentage points from the previous year, indicating better asset utilization [7]. Shareholder Structure and Dividend Policy - The company has a concentrated shareholder structure, with eight of the top ten shareholders controlled by Hon Hai Precision Industry Co., Ltd. [8]. - Despite strong profit growth, the board decided not to distribute cash dividends or issue bonus shares, reflecting a cautious approach towards future capital needs [8].