(Yicai Global) April 1 -- Foxconn Industrial Internet reported CNY415.4 billion (USD62 billion) in operating revenue last year, up 17.2 percent from the year before, and CNY17 billion in net profit, up 6.5 percent.

The Shenzhen-headquartered firm announced this in the first annual financial report it has issued since its June listing on the Shanghai Stock Exchange.

Terry Gou, its founder and that of its Taipei-based parent Hon Hai Precision Industry -- trading as Foxconn Technology Group -- became the richest person in Taiwan thanks to the rise in its operating revenues and profit driven by the growth of its communication network and cloud service equipment.

Of this revenue, CNY259.2 billion came from sales of communications network equipment, up 21 percent, and its proportion of the revenue from the firm's primary business rose to 63 percent from 61 percent in 2017, while CNY153 billion derived from selling cloud service equipment, up 27.3 percent, with its ratio in the revenue from the firm's primary business rising to 37 percent from 34 percent in 2017.

Foxconn Industrial Internet mainly concentrates on a few customers and suppliers. Its sales volume to its top five customers was CNY310 billion last year, 75 percent of its yearly total. Its procurements from its top five suppliers were CNY122 billion, or 47.5 percent of the annual amount. This customer concentration is one risk it confronts.

The firm invested CNY9 billion in research and development last year, up 13.5 percent and much higher than the, e.g. CNY5.8 billion that Chinese smartphone maker Xiaomi spent. Known as the world's largest foundry, or company that only produces microprocessors under contract, the firm is a pillar of the Industrial Internet, which is the integration of Big Data, analytics tools and wireless networks with industrial equipment. It is investing in R&D to rid itself of this original equipment manufacturer image.

The company has made many breakthroughs in fifth-generation mobile network and smart technologies which are key to driving Industrial Internet, including 5G communication gateways, edge computing servers, high-performance computing and intelligent data centers, sensors and smart controllers, the firm said.

Foxconn Industrial Internet went public on the SSE on June 8 and raised CNY26.7 billion, which it used for Foxconn Technology's internet-based transition. Group Board Director Gou expressed optimism toward the Industrial Internet before the listing, saying "I have donated 90 percent of my personal assets, so I am not working for money, but still put in 16 hours a day."

Gou's wealth shrank due to the dramatic drop in Foxconn Technology's stock price but rebounded when Foxconn Industrial Internet listed on China's A-share market of domestic stocks.

The World's Billionaires list compiled by US business periodical Forbes Magazine restored Gou to the throne as Taiwan's richest person at USD7.3 billion last year.

Editor: Ben Armour