(Yicai) Aug. 5 -- Shares of Foxconn Industrial Internet fell despite net profit at the subsidiary of Hon Hai Precision Industry, better known as Foxconn, widened 22 percent in the first half of the year.

Foxconn Industrial [SHA: 601138] was trading down 5.3 percent at CNY21.15 (USD2.96) as of 10.30 a.m. in Shanghai today.

Net profit totaled CNY8.7 billion (USD1.2 billion) in the six months ended June 30, compared with CNY7.2 billion a year earlier, according to the Shenzhen-based company’s unaudited earnings report released today. Revenue rose 29 percent to CNY266.1 billion (USD37.2 billion) thanks to surging demand for artificial intelligence servers.

Revenue from the AI server product business increased exponentially, indicating an accelerating growth trend, Foxconn Industrial noted, adding that the cloud computing business also achieved revenue growth thanks to the company’s ability to vertically integrate the entire AI supply chain.

In the future, Foxconn Industrial will continue to enhance the development and expand applications of its AI ecosystem, improve its global production capacity layout, and increase its research and development investment, the firm said.

Foxconn Industrial will also keep focusing on businesses in the upstream segment of the AI industry, such as graphic processing units’ modules and substrates, rear-end AI servers, and system integration, to take full advantage of its intelligent manufacturing and R&D capabilities to provide customers with all-around solutions.

Editor: Futura Costaglione