What is the relationship between Hon Hai Precision Group and Foxconn Technology Group?

Foxconn Group is a company invested by Hon Hai Precision Group in mainland China. It is only a part of the Hon Hai Group, also known as a subsidiary.

Hon Hai Precision Group is the world's largest, fastest-growing and highest-rated international group in the field of 3C foundry, and its predecessor is Taiwan's Hon Hai Plastic Enterprise, which was established in 1974.

The relationship between Hon Hai Group, Foxconn Group, and Hongfujin Precision Industry is as follows: Foxconn Group is a company under Hon Hai Group, Hongfu Jin Company is a company under Foxconn Group, and Hongfu Jin Company is a grandson company of Hon Hai Group.

The structure of Foxconn's controlling shareholder, Hon Hai Precision, is a listed company in Taiwan Province. Among its assets, four Hong Kong-listed companies and Foxconn, which will be listed on an A-share IPO, are independently listed. There is currently no theoretical actual controller for the dispersion of Hongpei Haohai Precision's shares, but its chairman Guo Taiming is usually regarded as its "head".

The general structure of Hon Hai is as follows (the following companies are controlled by Hon Hai Precision, and there are multiple layers of penetration involved in the middle, which are only briefly described here.)

In fact, the so-called "foundry" in everyone's cognition refers to the mobile phone foundry set up by Foxconn in Zhengzhou and Shenzhen in the past, mainly providing low value-added assembly and foundry business for Apple, and is known as "sweatshop" silver distribution because of its low gross profit margin. In order to successfully list Foxconn, Hon Hai Precision removed the above-mentioned assets with peer competition from Foxconn's system, and the "foundry" has nothing to do with Foxconn.

According to the relevant regulations, in order for Foxconn to be listed, it must promise that there is no competition with its controlling shareholder, Hon Hai Precision, and other companies controlled by it. Because Fu Zhikang (Huawei, Xiaomi, etc.), who mainly provides low-end assembly foundries for domestic Peibo lead mobile phones. ), has been listed in Hong Kong, Foxconn listed must remove the assets related to the assembly foundry.

In the past, the so-called "foundry" has now become a shareholder of Foxconn in terms of equity structure, which are Hongfujin Precision Industry (Zhengzhou) ****, Futaihua Industry (Shenzhen) **** and Hongfujin Precision Industry (Shenzhen) **** marked in red in the figure. According to Zhengzhou**, Hongfujin Zhengzhou alone produced 100 million smartphones in 2016, accounting for about 10% of global smartphone production.

Hon Hai Precision Group and Foxconn Technology Group are one company.

Foxconn Group is known as Hon Hai Technology Group in Taiwan, and Hon Hai Technology Group is called Foxconn Technology Group in Chinese mainland.

Foxconn Technology Group is a high-tech enterprise invested by Taiwan Hon Hai Precision Industry Co., Ltd. in mainland China, specializing in the development and production of precision electrical connectors, precision cables and assembly, computer chassis and barebones, computer system assembly, wireless communication key components and assembly, optical communication components, consumer electronics, liquid crystal display equipment, semiconductor equipment, alloy materials and other products.

So, Hon Hai Precision Group and Foxconn Technology Group are one company.

Hon Hai is the name of Taiwan, and after coming to the mainland to develop, the Foxconn Group was established, so it is called Foxconn in the mainland (basically it can be understood as the same thing as Hon Hai).

Foxconn Technology Group is a high-tech enterprise of Hon Hai Precision Group in Taiwan, China, founded in 1974 in Taipei, Taiwan Province, China, with President Terry Gou. Now it has more than 1.2 million employees and the world's top customer base.

Foxconn is the world's largest and fastest-growing international technology group in the field of 3C foundry, the main listed members have been listed on the Asian and European stock exchanges, Hong Kong ** Stock Exchange and London ** Stock Exchange, the group's global total market capitalization of more than 70 billion US dollars, the layout across Europe, the United States and Asia, the total number of employees more than 1.2 million, and the global total of more than 15,300 patents.

On May 23, 2015, Hon Hai (2317) increased its market value by 50.2 billion yuan this week.

Hon Hai Group, also known as Hon Hai Precision Group, is the world's largest 3C (computer, communications, consumer electronics) foundry field, the fastest growing, the highest evaluation of the international group, its predecessor was established in 1974 Taiwan Hon Hai plastic enterprises, has become a professional R & D and production of precision electrical connectors, precision cables and assembly, computer chassis and barebones, computer system assembly, wireless communication key components and assembly, optical communication components, consumer electronics, liquid crystal display equipment, semiconductor equipment, High-tech enterprises with alloy materials and other products. Hon Hai has been selected as one of the top 15 most prestigious electronics companies in the world by Fortune magazine, and has become the only company in the world to be ranked in the top 10 of Business Week's Technology 100 (IT100) for six consecutive years.

Hon Hai is listed in Taiwan, headquartered in Tucheng, Taipei, and Foxconn in mainland China is listed in Hong Kong only FIH, that is, Foxconn International Holdings, and its market value is unclear.

Among the world's five largest EMS companies, Hon Hai Precision Group has the most outstanding development. The settlement cycle of Hon Hai Precision, Asus Computer and Quanta Computer is from January to December of each year, from October of the previous year to September of the following year for Sanmina-SCI of the United States, and from April to March of the previous year for the rest. The data is calculated based on the average monthly sales for the current year, and then converted into yen.

The exterior walls are whitewashed in a new factory building, and the dormitory buildings and commercial facilities are ...... for employeesThere are more than 70 buildings in total. On the one-way, three-lane road that crosses it, trucks loaded with goods come and go. It is said that more than 100,000 people work here.

Because the area is so big, some people ride their electric scooters through the buildings as if they were on a golf course.

Since its business form is OEM, the company's name is generally not exposed, so Hon Hai Precision is not very famous. However, the rapid growth momentum of its performance can only be described as explosive. Since the publication of the joint settlement report in FY1999, the company's sales have been growing at a rate of more than 40% per year.

In FY2005, sales increased by 68% year-on-year to one trillion yen. It is 1 trillion yen more than Singapore's Flextronics and much higher than large Japanese manufacturers of civilian products such as Sharp and Sanyo Electric.

In various industries, from materials and components to products (finished products), services and contents, the "smile curve" that indicates the level of added value is located at the bottom of Hon Hai Precision's product manufacturing, which is the largest revenue of Hon Hai Precision. In other words, it is not easy to achieve a high yield. However, Hon Hai Precision's operating profit margin in 2005 has surpassed that of the vast majority of large electronics manufacturers on the "upper edge" of the smile curve.

Flextronics, which has the only operating profit margin, and Sanmina-Sci, which has an operating loss of 50.5 billion yen, are even more difficult to match.