Fii reported a strong financial performance in the first half of 2025, driven largely by the rapid expansion of its AI business segment. According to CFO Peter Shen, the company achieved revenue of USD 50.5 billion during this period, marking a 35.6% increase compared to the same period last year. Net profit also reached a record high of USD 1.70 billion, up 38.6% year-on-year, reflecting the success of the company’s ongoing AI-led transformation and strategic investments in cloud computing and data center infrastructure.
The second quarter alone demonstrated exceptional growth, with revenue hitting USD 28.0 billion, a 35.8% increase year-on-year, and net profit reaching USD 0.96 billion, representing a remarkable 51.2% rise from the previous year. Shen highlighted that over the period from full-year 2023 to the first half of 2025, Fii’s revenue grew at a compound annual growth rate (CAGR) of 32%, while net profit grew at a CAGR of 31%. These figures underscore the effectiveness of the company’s strategic focus on AI technologies, as well as its broader investments in cloud infrastructure that have strengthened both revenue generation and profitability.
Rotating CEO Zongchang Liu elaborated on Fii’s operational progress, noting that AI has been a critical driver behind simultaneous growth across the company’s three core business areas: devices, networks, and cloud services. In the cloud computing segment, as cloud service providers continue to expand AI infrastructure, Fii saw total server revenue grow by more than 50% in the second quarter. Revenue from cloud service providers surged by over 150% year-on-year, while AI server revenue experienced a growth of more than 60%, highlighting the company’s rising prominence in AI-enabled server solutions.
In the communications and mobile network equipment sector, high-speed switches emerged as a significant growth engine, while AI-powered smartphones stimulated a premium upgrade cycle among consumers. Shipments of precision components also increased by 17% year-on-year, further consolidating Fii’s leadership in advanced technological solutions and precision manufacturing.
Beyond financial and operational performance, Liu emphasized Fii’s progress in ESG (Environmental, Social, and Governance) initiatives, reiterating the company’s commitment to its “EPS + ESG” sustainability model. He underscored that Fii aims to leverage its innovative capabilities and robust supply chain to seize AI-driven opportunities, deepen market penetration in mainland China, and sustain global competitiveness, all while adhering to sustainable growth principles.
During the post-results Q&A session, Chairman Brand Cheng addressed investor inquiries regarding product performance and market positioning. He confirmed that the efficiency and yield of GB200 servers had improved considerably since the first quarter, with shipments accelerating and expected to maintain strong momentum throughout the third quarter. Cheng further highlighted that GB300 servers have already secured firm orders from major cloud customers and are scheduled to begin shipments in the second half of the year. Importantly, he noted that the transition to GB300 servers would not impact GB200 orders, while emphasizing the higher profit potential of GB300, which is poised to become a key earnings driver for Fii’s AI server business in the coming year.
On the networking front, Cheng pointed out that 800G high-speed switches are expected to sustain strong growth. He also mentioned that co-developed CPO (Co-Packaged Optics) ASICs and 1.6T switches are progressing toward commercialization, signaling continued innovation and market expansion. In the precision components segment, Cheng expressed confidence in further growth, citing increasing product complexity and accelerated customer upgrade cycles as major drivers of enhanced profitability.
Regarding Fii’s robotics ambitions, Cheng noted that the company is steadily building its technical capabilities and has entered an initial stage of delivery. Leveraging strengths in precision manufacturing, automation, and AI, along with extensive internal smart manufacturing applications, Fii plans to advance AI-integrated robotics, including humanoid robots. Cheng expects AI-enabled robotics to be increasingly integrated into production lines by the end of this year, marking a strategic step toward combining AI and robotics to boost efficiency and innovation.
Finally, on capital management and shareholder returns, Cheng highlighted that since its IPO in 2018, Fii has distributed seven rounds of cash dividends totaling approximately USD 7.92 billion (RMB 56.54 billion). Looking forward, the company intends to maintain a balanced approach, reinvesting strategically while providing stable shareholder distributions. By carefully considering profitability, cash flow, and development plans, Fii aims to implement sustainable dividend policies that allow shareholders to participate in the company’s growth while supporting continued expansion and operational excellence.
