Explanation of trade dispute between US and China

Subject:Business'explanation of the trade dispute between US and China.

Date of events:2019/05/26

Contents:

1.Date of occurrence of the event:2019/05/26

2.Company name:Hon Hai Precision Ind. Co. Ltd.

3.Relationship to the Company (please enter "head office" or "subsidiaries"):

head office

4.Countermeasures:

4.1.Hon Hai Precision has built a global manufacturing network and will continue to diversify the portfolios of clients and production locations to meet the customers' needs and maximum the corporate's benefit.

4.2Recently there maybe some changes of customers' orders based on the market development. However, there should be limited impact after combining all ups and downs of order flow.

4.3.Hon Hai Precision has built up solid and stable long-term relationships with all major customers. No matter what kind of conditions happen to clients, the firm will fully support customers' business development.

4.4. The firm has set up a dedicated executive team to closely monitor the latest development of the trade dispute between US and China.

4.5. The corporate will leverage its capability of industry of internet to (1) enhance the quality of product and service and overall efficiency; (2) lower the cost and inventory; (3) explore the global markets and diversify the locations of supply chain; (4) lower the business risk and the impact of the volatility of customer' order flow. The management team will make the best efforts to create shareholders' value.