Foxconn subsidiary reallocates funds for new R&D center

Published 29/04/2025, 13:58
Foxconn subsidiary reallocates funds for new R&D center

TAIPEI - Foxconn (SS:601138) Industrial Internet Co., Ltd., a subsidiary of Hon Hai (TW:2317) Precision Industry Co., Ltd., has announced a strategic reallocation of its raised funds to enhance its research and development capabilities. The decision, made by the board of directors today, involves terminating the High-performance Computing Data Center Construction Project and redirecting the remaining funds to establish a Research and Development Center for Precision Structural Components of New Generation Smartphones.

The company initially raised a net amount of RMB 26.716 billion through its Initial Public Offering (IPO), aimed at investments in smart manufacturing and the industrial internet. The latest adjustment will see an investment of RMB 725.65 million into the new R&D center, which is expected to be completed by December 31, 2026.

This move is anticipated to bolster the company’s innovation in precision structural components, lightweight and environmentally friendly designs, and intelligent detection processes. The project is projected to attract top technical talents and reinforce the company’s leadership in the industry.

In addition to the fund reallocation, the board has proposed a cash dividend distribution of RMB 6.4 per 10 shares, reflecting the company’s profit distribution plans.

The changes in investment projects are in response to the evolving external business environment and strategic development needs. The original lead underwriter, China International Capital Corp, has expressed support for these adjustments, stating that they are in the best interest of the company and its shareholders. These changes are pending approval at the company’s 2024 annual shareholders’ meeting, with the date of the meeting to be announced later.

Foxconn Industrial Internet Co., Ltd.’s strategic shift in investment underscores its commitment to adapt to market demands and enhance shareholder value. This information is based on a press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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