Hon Hai forecasts 2025 sales to top NT$7 trillion

Taipei, May 29 (CNA) Taiwan's Hon Hai Precision Industry Co., known globally as Foxconn, said Thursday it expects 2025 sales to top NT$7 trillion (US$234.5 billion), up from NT$6.8 trillion last year.

Speaking at the company's annual shareholders meeting, Hon Hai Chairman Young Liu (劉揚偉) said the group still expects solid growth this year despite ongoing uncertainties, including U.S. tariffs, currency fluctuations and a shifting global political and economic landscape.

He said he is confident annual revenue will surpass NT$7 trillion, with a strong chance of hitting a new record.

Liu also said the next board of directors will separate the roles of chairman and CEO. Over the next three years, the company plans to move from a rotating CEO system to appointing a permanent chief executive.

Looking ahead, Liu said information and communications technology (ICT), artificial intelligence (AI) and electric vehicles (EVs) will be the company's three main growth drivers this year.

In the electric vehicle (EV) sector, Liu said Hon Hai has developed nine prototypes and is expanding global partnerships through its contract design and manufacturing service (CDMS) model.

Hon Hai recently announced a collaboration with Japan's Mitsubishi Motors to jointly develop EVs, allowing traditional automakers to reference its prototype designs. The group aims to become one of the world's top three CDMS providers, he added.

Liu also announced that Hon Hai has launched a comprehensive robotics manufacturing platform and aims to become a major player in the emerging space industry.

Liu said that Hon Hai is actively developing ground receiving equipment, key components for low Earth orbit (LEO) satellites and communication payload systems.

Looking ahead, Hon Hai plans to support low Earth orbit (LEO) satellite companies with production and manufacturing services, aiming to become a leading player in the emerging industry, he said.

Meanwhile, at the meeting, Hon Hai shareholders approved the board's recommendation to pay a cash dividend of NT$5.80 per share, the highest since the company's 1991 initial public offering. This marks the sixth consecutive year the payout ratio has exceeded 50 percent.

In mid-March, Hon Hai's board approved a cash dividend of NT$5.80 per share for 2024, up from NT$5.40 per share the previous year.

Hon Hai also completed a full board re-election Thursday at the shareholders meeting. Among the newly elected members are Liu and Chang Ching-ray (張慶瑞), a consultant at Hon Hai Research Institute and honorary professor at National Taiwan University.

Chiang Shang-yi (蔣尚義), Hon Hai's chief strategy officer and chairman of ShunSin Technology Holdings, a Hon Hai affiliate, was elected to the board for the first time.

In addition, current board member Christina Liu (劉憶如), managing director of Hong Kong-based Bellwether International Group, was re-elected.

According to the company, five of the nine board seats are held by independent directors.