Hon Hai revises subsidiary guarantee disclosures

Published 07/03/2025, 11:58
Hon Hai revises subsidiary guarantee disclosures

TAIPEI - Hon Hai (TW:2317) Precision Industry Co., Ltd., widely known as Foxconn (SS:601138), has issued a correction regarding the guarantees provided to its subsidiary, Foxconn Singapore Pte Ltd (FOXSIN), for the period from May to December 2024. The revision includes updates to the highest facility limits and actual outstanding loan amounts for the specified months, as well as consolidated financial statement endorsements and guarantees for Q2 and Q3 2024.

The correction revealed that the highest facility limit for FOXSIN was consistently set at NTD39,408,000,000 from July to December 2024, with varying ending balances of facility limits and no actual outstanding loan amounts during this period. Previously, no guarantees were disclosed for May to October 2024, but the revised statement shows a highest facility limit starting at NTD38,880,000,000 in May and increasing slightly each month until reaching the consistent limit in July.

For Q2 2024, the maximum endorsement and guarantee balance was NTD38,940,000,000, representing 2.55% of the net value in the most recent financial statement, with a maximum limit of endorsement and guarantee set at NTD1,526,416,829,000. In Q3 2024, the maximum endorsement and guarantee balance was slightly higher at NTD39,408,000,000, with an end-of-period amount of NTD37,980,000,000. This accounted for 2.38% of the net value in the most recent financial statement, with the maximum limit of endorsement and guarantee reaching NTD1,596,329,625,000.

The company has confirmed that FOXSIN, along with eCMMS Precision Singapore Pte. Ltd. and Falcon Precision Trading Pte. Ltd., have jointly applied for a unified credit limit, sharing the Foxconn guaranteed amount of USD1.2 billion. FOXSIN is currently disclosed as the guaranteed party, and any actual bank debts incurred by the companies will be disclosed accordingly.

To rectify the inaccuracies, Hon Hai has pledged to upload the revised information, consolidated financial reports, and iXBRL to the Market Observation Post System (MOPS) following the material information announcement. This action is in line with the company’s commitment to transparency and accurate reporting.

The disclosed corrections are based on a press release statement provided by Hon Hai Precision Industry Co., Ltd.

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