Core Viewpoint - Industrial Fulian expects a significant increase in net profit for 2025, projecting a rise of 51% to 54% year-on-year, driven by strong demand in the AI server and switch markets [1][2] Group 1: Financial Performance - The company anticipates a net profit of 35.1 billion to 35.7 billion yuan for the full year of 2025, an increase of 11.9 billion to 12.5 billion yuan compared to the previous year [1] - For Q4 2025, the expected net profit is between 12.6 billion to 13.2 billion yuan, reflecting a year-on-year increase of 56% to 63% [1] - The average daily profit for 2025 is projected to be nearly 100 million yuan [1] Group 2: Business Growth Drivers - The growth in net profit is primarily attributed to increased shipments of servers and switches, particularly for cloud service providers [1] - Revenue from cloud service provider servers is expected to grow over 180% year-on-year in 2025, with Q4 revenue showing a month-on-month increase of over 30% and a year-on-year increase of over 250% [1] - AI server revenue is projected to grow over 50% quarter-on-quarter and over 550% year-on-year [1] Group 3: Market Position and Future Outlook - Industrial Fulian holds a 73.8% market share in the 800G high-speed switch segment, with revenue from this segment expected to increase by 1300% year-on-year in 2025 [1] - The company is positioned to benefit from the ongoing demand for AI, with expectations of steady growth in AI server and 800G switch shipments [2] - Industrial Fulian is a key foundry for Nvidia, which is expected to enhance profit margins with the introduction of the next-generation Rubin cabinet [2] Group 4: Dividend Policy - The strong financial performance supports substantial dividend payouts, with a cash dividend of 3.3 yuan per 10 shares, totaling 6.55 billion yuan, which is 54.07% of the net profit for the first half of 2025 [2] - Over the past three years, the company has distributed and repurchased over 36.6 billion yuan [2]