FIH turned a loss into a profit in nine months, earning 42.09 million USD

FIH (02038.HK) announced its performance for the first nine months ending September this year, with a revenue of USD 5.229 billion, an increase of 25.9% year-on-year. It turned a loss into a profit of USD 42.087 million, compared to a loss of USD 26.211 million in the same period last year.

The group stated that it currently expects to achieve revenue growth of approximately 15% in the fiscal year 2025 and significant improvement in financial performance, mainly due to increased sales in the automotive electronics business; increased sales in production line equipment and robotics; improved gross margin, rising from 2.12% in the first nine months of last year to 3.06% during this period, mainly due to the proactive termination of unprofitable or low-margin businesses and changes in customer and product mix; operating expenses during this period decreased to USD 99.7 million from USD 113.3 million in the same period last year; interest expenses decreased, mainly due to loan repayments and the Federal Reserve's interest rate cuts.

Negative factors include the continued adverse financial impact from the group's underutilized and idle assets, which may require the company to recognize asset impairments or write-off losses; foreign exchange gains decreased, with earnings of USD 3.8 million recorded during this period compared to USD 6 million in the same period last year, mainly due to the depreciation of the US dollar against almost all currencies; government subsidies during this period decreased by approximately USD 4.3 million, mainly due to a reduction in subsidy income from mainland China