Buy gold, crypto and China, tread carefully on rich U.S. tech: BofA’s Hartnett
TAIPEI - Hon Hai (TW:2317) Precision Industry Co., Ltd., also known as Foxconn (SS:601138), announced today that its subsidiary, Execustar International Limited, has sold its 62.15% equity interest in FIH Precision Electronics (LangFang) Co., Ltd. for RMB 2.19 billion. This move is part of a strategic adjustment of the company’s equity structure.
The transaction took place on Friday, involving the disposal of the subsidiary that specializes in manufacturing mobile phones, tablets, and other electronic products. FIH Precision Electronics (LangFang) reported a loss of RMB 342.34 million in its latest financial statements, with a total equity of RMB 3.18 billion.
The buyer, Shenzhen Futaihong Precision Industry Co., Ltd., is an affiliated company, marking the transaction as a related party deal. The decision for this disposal was made by the board of directors based on market conditions and aims to streamline the equity structure of the company.
The sale resulted in a profit of USD 9.68 million for Execustar International Limited. The transfer of equity was executed in accordance with the equity transfer agreement, with no dissenting opinions from the directors of Hon Hai Precision Industry Co., Ltd.
The transaction was part of Hon Hai’s broader investment strategy in mainland China, where the company has invested a total of USD 11.8 billion to date. This represents a significant portion of the company’s paid-in capital and total assets, according to the latest financial statements.
The information provided is based on a press release statement, and it reflects a significant reorganization within one of the world’s largest electronics manufacturers and assemblers.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.