Hon Hai Precision Industry Co (鴻海精密) yesterday posted annual revenue growth of 12.21 percent for last month, indicating that the iPhone assembler’s production was not significantly affected by electricity restrictions in China’s Sichuan Province.
Revenue expanded to NT$448.91 billion (US$14.62 billion) last month, compared with NT$400.05 billion in August last year, to record its best August for revenue.
However, compared with July’s NT$475.1 billion, revenue contracted 5.51 percent.
Photo: Lam Yik Fei, Bloomberg
During the first eight months of the year, Hon Hai aggregated NT$3.84 trillion in revenue, rising 9.21 percent year-on-year from NT$3.51 trillion.
“Despite power rationing in Sichuan Province and Chongqing last month, the effects on the group’s operations were well managed with operational flexibility and supply chain advantages,” Hon Hai said in the statement.
Hon Hai said it is “cautiously positive about the outlook for the third quarter, but we still need to closely monitor the inflation, the COVID-19 pandemic and the supply chain.”
The company reiterated that it aims to increase annual revenue for this quarter based on current order visibility.
The company also maintained its full-year revenue outlook and expects annual growth after revising its forecast upward last month.
Hon Hai last month told investors that it expected inflation to have a limited impact on its smartphone business as it focused on mid-to-high-end models, which were less volatile than low-end smartphones.
Last month’s revenue growth bode well for it to reach its full-year goal.
The company attributed the growth to a double-digit percentage expansion annually from the company’s three segments — cloud and networking products, computing products and components, and other products, it said.
Its smart consumer electronics business also showed significant growth from a year earlier, it added.
On a monthly basis, components and other products showed a significant month-on-month growth on higher shipments, while revenue from smart consumer electronics was mostly flat, as robust demand from other consumer electronics helped offset weakness in its major products due to annual model transition, it said.
Revenue from computing products declined slightly because of power restrictions in Sichuan Province and Chongqing, it said, adding that revenue from cloud and networking products also dropped sequentially mostly as strong pull-in in July created a high basis of comparison.
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