Foxconn Shenzhen land cash 800 million yuan: hoarding assets doubled in five years

"And the" king of the work of the company foxconn seems to be completely from shenzhen move away from headquarters. Since last year, after the factory migration are now the original as a staff dormitory land sold.

July 10,, announced, subsidiary foxconn's rich macro precision with its parent company foxconn is intended to sell 879 million yuan rich Thai property. Macro

Double assets

Announcement said, foxconn and hon hai's rich respectively hold about 70.12% and 29.88% macro real estate equity. According to the proportions, foxconn has shares from the disposals obtain 616 million yuan of money.

According to information, rich Thai property the major assets for macro bank deposits and a is located in shenzhen baoan district plot, this land area of 67100 square meters, the land to be developed and hon hai become foxconn employee dormitory, but have not yet development.

Data shows, this land is foxconn on 16 September 2006 race, race have to price for 430 million yuan, the price was higher than the nearly 240 million yuan, amount to a floor price for 3219 yuan/square metre.

Because of this plot, chief, Taiwan's richest man foxconn traveling to "do not involve in property market" precedent from now on was a breakthrough.

According to the plan, foxconn earlier this plot plan construction area of 134000 square meters, according to GuYu assistant general manager at foxconn group, said this plot is used to provide matching to senior management personnel, but because this is the housing commodity house, after the completion of the project, does not rule out there will be part of the house to enter the market sales.

The reason for this plot, foxconn, the company is said north China business, so no longer integration plan will the land for development, staff dormitory and that selling the property meets rich Thai macro best interests.

Foxconn says, so far this year the end of December, the company will sell items from the total net capital gains recorded 150 million yuan, proceeds will be used in general operating funds.

In addition to foxconn, except for a strategic shift factors of this plot, the assistant general manager of the mansion property LinXiaoHua thinks, at present the foxconn factory in shenzhen will not appear on expansion, hire is also reduced, so, it doesn't need to keep so much land.

"In addition, the land transfer to the foxconn parent company foxconn group, foxconn may put the land into land for commercial use by dormitory land, such word, won the capital gains, foxconn foxconn also earn the shenzhen rare land resources, parent company and subsidiary of it is kill two birds with one stone." LinXiaoHua says.

To change the food

However, there are analysts believe that the cause of the land, foxconn is for performance of company development into money.

This personage says, because last year the performance of foxconn is very serious, share prices also fell in the fall, the management profit of the company by great influence, so, the part of the land assets by foxconn, to get cash flow support, keep its main OEM business can steady development. Therefore, to sell their land could bring to the company's performance in good, still can stable company shares of the expected.

Indeed, according to a 2010 report foxconn last year, according to the company revenue of $6.626 billion, up 8.2%, and reduce net loss of $218 million m, 659% year-on-year drop in June 7, the company would still be kicked out of the Hong Kong join the row of the component, this is in foxconn h-share listings for the first time since the loss.

About this year's development, chairman and chief executive of the foxconn ChenWeiLiang think, confident let this year's performance is significantly increased last year, this year, the company will speed up its factories and operation, integration and will add new customers.

ChenWeiLiang explanation says, the company will put is located in shenzhen and taiyuan city of factories, sold to the parent company foxconn. The future will be considered and integrated to terminate business losses of Beijing, tianjin and langfang factory.

In fact, the sale's property, on the rich macro is its factory operations and integration of foxconn's part.

At the same time, July 8, foxconn, said the company has been issued in today to a director and staff grant a 267 million shares share option, the exercise price to hk $3.62 per share.

Announcement, said the share option of valid until December 31, 2014, from January 1, 2012 in three shipments, grant a, of which the company directors LiZheSheng a total of 1.7 million shares share option.

"Whether t-mac to parent company, or from directors and employees share option, driving it all is through various methods in foxconn strategy, I wish that could improve the company's business performance". The above analysts said.
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