Last checked at 23 Nov 2018 07:00
Subject: Explain media reporting
Contents:
1.Date of occurrence of the event: 2018/11/23
2.Company name: Hon Hai Precision Ind. Co. Ltd
3.Name of the reporting media: CNA NEWS
4.Content of the report:
According to the Foxconn Technology Group internal memorandum obtained by Bloomberg, as the coming year is expecting to be difficult and competitive, Foxconn plans to cut the cost down by 20 billion(USD 2.9 billion RMB) in 2019.
5.Countermeasures:
Statement of the Foxconn Technology Group
Foxconn is in the midst of a steady and successful transformation into an Industrial Internet Platform and the budget and resource allocation exercises we carry out each and every year at this time are designed to support that process.
The guidelines provided to our managers each year are based on aggregated targets for the hundreds of companies and subsidiaries in the Foxconn Technology Group and, as such, the impact of any reductions on any one group company is measured.
These annual budget exercises are focused solely on restructuring underperforming business units and invested companies, ensuring optimum allocation of general and administrative expenses. The budget exercises will have no impact on our group's resource allocation for research and development, new product development, and investment into new ventures.
Related to this, all reviews of senior executive compensation are designed to ensure we remain a performance-based organization that is able to continue to attract and retain new talent into our group businesses.
We remain optimistic regarding the outlook for the global economy and we are confident that the US-China trade conflicts will come to an amicable resolution. Given the returns we are seeing from our investments into areas such as big data analytics, artificial intelligence and automation, and many others, we are very confident we will meet our revenue generation and resource allocation targets while continuing to ensure long-term growth for the Foxconn Group of companies.