Hon Hai Precision Industry Co (鴻海精密) yesterday said that its shareholders had approved a proposal to distribute a cash dividend of NT$4 per common share, the highest in 20 years.
The iPhone maker also said it was upbeat about its prospects for the second half of the year.
“The global parts supply shortage is of limited impact for us now,” Hon Hai chairman Young Liu (劉揚偉) said at the company’s annual general meeting in New Taipei City’s Tucheng District (土城). “I am optimistic about the rest of the year.”
Photo: screen grab from the Internet
The company expects minimal impact from the floods in China’s Zhengzhou City, where it has key production facilities, Liu added.
The Zhengzhou facilities in Henan Province supply the bulk of the company’s iPhone manufacturing capacity, but they have been spared from the floods, Hon Hai said.
“All our iPhone facilities remain fully functional,” although due to the severity of the floods, it has affected staff getting to and from work, the company said.
“Reports of a flooded Hon Hai facility is a small desktop component [operation] outside the main industrial park,” he added.
Liu also issued a statement touting Hon Hai’s efforts to grow its electric vehicle (EV) business, emphasizing the importance of forming a complete and collaborative supply chain with other companies through the MIH — Mobility in Harmony — alliance.
The alliance, which became an independent non-profit entity this month, now boasts 1,800 supply chain members and hopes to become “the Android of EVs” — an open standard to facilitate cooperation between suppliers.
Liu said that regional production is a “growing trend” and that it is inevitable that Hon Hai would create self-sufficient supply chains globally.
“We will take our experience of integrating vertically in China and working with various suppliers and replicate it all over the world,” Liu said.
Although Hon Hai is best known as the world’s largest contract electronics maker and a leading assembler of Apple products, Liu said he is looking forward to the EV business making a contribution.
“We will first see some results from key EV component sales, with whole vehicle sales starting from the fourth quarter of 2023,” Liu said.
“By 2025, we hope that 10 percent of EVs will contain some Hon Hai components,” he said.
Hon Hai’s EV line will start with electric buses, sedans and scooters, and the company will “continue to seek opportunities for collaboration around the world,” he said.
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