Sat, Oct 05, 2019 - Page 12 News List

Hon Hai subsidiary eyeing electric vehicle market

Staff writer, with CNA

FIT Hon Teng Ltd (鴻騰精密), a subsidiary of Hon Hai Precision Industry Co (鴻海精密) that produces electronic components, said that it has set its sights on the electric vehicle market, taking advantage of its production lines in Vietnam to cut operating costs.

On the back of its efforts to develop components for electric vehicles, the automotive electronics business is expected to serve as the main driver of the company’s sales growth in the second half of this year, Hong Kong-listed FIT Hon Teng said.

The company produces optoelectronic connectors, antennas, acoustic components, cables and modules for applications in computer, communication equipment, consumer electronics and automobile sectors.

The company also expects mobile communication devices, industrial electronics and medical care equipment to serve as additional drivers to its sales growth.

FIT Hon Teng’s major production sites include Taiwan, China, Mexico and Vietnam, with sales and marketing offices in Taiwan, Singapore, Australia, China, the US and Europe.

The company had a workforce of about 40,500 employees worldwide last year.

FIT Hon Teng in the first half of the year posted net profit of US$101 million, down 5.6 percent year-on-year, while its sales grew 11.6 percent to US$1.92 billion.

Gross margin increased to 19.6 percent from 17.1 percent.

Mobile communication devices accounted for 35 percent of sales in the first half of the year, communications infrastructure equipment made up 23 percent, and computers and consumer electronics contributed another 18.7 percent.

Hon Hai indirectly owns a 76.81 percent stake in FIT Hon Teng.

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