(Yicai Global) Aug. 12 -- China's Foxconn Industrial Internet saw its share price rise 6.92 percent today despite a reported 8 percent drop in first half profits as the developer of communication network equipment’s latest financial report showed it was making great strides towards a full recovery from the Covid-19 fallout.

The unit of the world’s largest contract electronics maker Hon Hai Precision Industry, better known as Foxconn, [SHA:601138] ended the day at CNY15.14 (USD2.18).

Foxconn Industrial suffered losses of CNY960 million (USD138 million) due to the impact of the pandemic and the delay to the resumption of work, the Shenzhen-based firm said yesterday. This reduced its net profit from January to June to CNY5 billion (USD725.5 million).

But there was a marked rebound in business in the second quarter as the novel coronavirus outbreak also spurred demand for its telecommuting, online conferencing and the remote education services. The firm posted a 21.9 percent rise in net profit from April to June over the same period last year to CNY3.2 billion and a 6.9 percent jump in revenue to CNY96.6 billion, it said.

As the Covid-19 pandemic comes under control in China, Foxconn Industrial will hopefully be able to continue to promote its industrial internet business in the second half, said investment bank China International Capital Corporation.

Revenue in the first half was up 3.6 percent to CNY176.7 billion (USD25.4 billion), despite a 23 percent drop in revenue from its technology-related services to CNY253 million. Its telecommunications and mobile network device business brought in CNY96.3 billion, up 3 percent, while its cloud computing services raked in CNY79.5 billion, a gain of 4.2 percent.

Foxconn Industrial has achieved product positioning across the full matrix of the fifth-generation mobile network sector, the firm said. This includes hardware devices and software products related to cloud computing, 5G wireless networks and terminals, including small base stations, switches and servers of core 5G networks, it added.

Founded in March 2015, Foxconn Industrial is a specialized designer and manufacturer of equipment for telecommunication network construction, high-precision structural parts, cloud-computing devices, high-precision tools and industrial robotics. Its clients include Chinese e-commerce giant Alibaba Group Holding, Internet titan Tencent Holdings, US e-commerce behemoth Amazon, US tech titan Microsoft and computer technology firm Oracle Corporation.

Editor: Kim Taylor