Hon Hai Announces Second Quarter 2022 Financial Results
August 12, 2022 | Hon Hai Technology GroupEstimated reading time: 3 minutes
Hon Hai Technology Group (“Foxconn”) recently announced its second quarter and first half 2022 financial results.
In the April-June quarter, revenue reached NT$1.51 trillion, a record high for any second quarter, and up 12% year-on-year. Gross profit margin was 6.40%, an increase of 0.37% compared to the same period a year ago. Net profit attributable to the parent company was NT$33.29 billion, also a record high for any second quarter. Operating profit margin and net profit margin attributable to the parent company were 2.94% and 2.21%, respectively, significantly higher when compared with a respective 2.40% and 2.20% last year.
In the first six months of 2022, revenue reached NT$2.9 trillion, a record high, and up 8% year-on-year. Gross profit margin was 6.22%, an increase compared to the 5.92% of the same period a year ago. Net profit attributable to the parent company came in at a record high of NT$62.74 billion. For the January-June period, operating profit margin at 2.78% and net profit margin attributable to the parent company at 2.15% were both improved when compared with a respective 2.23% and 2.147% in the previous year.
Hon Hai revised up its full-year outlook for performance to “growing” from “roughly flat”.
“Against a backdrop of slowing demand and supply chain disruptions, the strong operating performance demonstrates the high degree of the Group’s resilience,” said Hon Hai Chairman Young Liu. “It reflects a better product portfolio and customer structure.”
Looking ahead, Liu said geopolitics, inflationary pressure and the Covid pandemic will keep the outlook cautious, but the Group’s performance is expected to grow for the third quarter compared to a year ago. On a quarter-on-quarter basis, performance is likely to be steady because of a higher base, he said.
In addition to expanding new businesses, improving profitability is also the long-term goal of the Group. In the first half of this year, Hon Hai’s gross profit margin and operating profit margin increased by 0.30% and 0.55%, respectively, from a year ago, reflecting the optimization of core operations.
However, due to poor capital markets in the first half of the year, investment income and non-core income decreased significantly. Based on current capital market conditions, Hon Hai maintains a conservative outlook for non-core income in the second half.
Of Hon Hai’s four major product groups, Liu said the cloud service provider group for the third quarter should record double-digit quarterly gains and result in year-on-year rise, the best performing of the groups due to customer growth. Consumer electronics products, however, due to a high base of comparison against the second quarter is likely to decline quarter-on-quarter in the July-September period. But replacement demand will mean it is expected to be steady from the year ago period.
For PCs, despite the recent noise surrounding demand in this sector, Hon Hai's customers and product mix are pacing ahead of the industry. The Group's robust supply chain management gives customers stability in their component needs, an advantage that underpins Hon Hai’s third quarter outlook. Moreover, despite the pandemic lockdown in China, Hon Hai was able to optimize components and other products for use internally among its operations, allowing this segment to be fully used toward smart consumer products, and recognizing revenue. As the lockdown eases, revenue prospects will be unlocked leading to growth in the second half of the year and for the full year.
The Group’s “3+3” strategy is progressing highlighted by Hon Hai’s Ohio EV manufacturing facilities serving more customers, Liu said. Nearly 400 local employees have joined and small-scale production began in July of EV pickups. Manufacturing for Monarch Tractor is expected to begin there in January 2023, a key development for Hon Hai to extend EV technologies into other application fields, said Liu.
As part of building its ecosystem, Hon Hai will set up a passenger car R&D center in Detroit, Michigan, in which a number of experienced R&D personnel have already joined, Liu said. With the MIH alliance as solid foundation, the center will nimbly work to develop passenger vehicles and expand B2B opportunities.
In the field of automotive batteries, Hon Hai's self-developed LFP cells for electric buses are nearing the completion stage; sample deliveries should begin in the third quarter with mass production scheduled in 2024. For automotive semiconductors, Hon Hai teamed up with global leader NXP to cooperate and jointly develop next-generation automotive subsystems and solutions. In addition, Hon Hai’s participation in the private placement of TAISEC Material Corp strengthens the SiC upstream supply chain and Hon Hai's long-term competitive advantage in automotive semiconductors.
Suggested Items
Schweizer Electronic AG: Business Development in Q1 of 2025
05/07/2025 | Schweizer Electronic AGThe Schweizer Group continued its growth trajectory in the first quarter of 2025. Revenue reached EUR 39.4 million in the first quarter of 2025, up 14.9% on the previous quarter (Q4 2024: EUR 34.4 million) and slightly above the level of the same quarter of the previous year (Q1 2024: EUR 39.2 million).
Global Semiconductor Sales Increase 18.8% in Q1 2025 Compared to Q1 2024; March 2025 Sales up 1.8% MoM
05/06/2025 | SIAThe Semiconductor Industry Association (SIA) announced global semiconductor sales were $167.7 billion for the first quarter of 2025, an increase of 18.8% compared to the first quarter of 2024 but 2.8% less than the fourth quarter of 2024.
KLA Reports Fiscal 2025 Q3 Results
05/02/2025 | PRNewswireKLA Corporation announced financial and operating results for its third quarter of fiscal year 2025, which ended on March 31, 2025, and reported GAAP net income of $1.09 billion and GAAP net income per diluted share of $8.16 on revenues of $3.06 billion.
OSI Systems Reports Fiscal 2025 Q3 Financial Results
05/02/2025 | BUSINESS WIREOSI Systems, Inc. announced its financial results for the three and nine months ended March 31, 2025.
Nano Dimension Announces 2024 Financial Results
05/02/2025 | Nano DimensionNano Dimension Ltd., a leader in Digital Manufacturing solutions, announced its 2024 financial results and shared its 2025 strategic outlook.