TAIWAN - Hon Hai (TW:2317) Precision Industry Co., Ltd., also known as Foxconn (SS:601138), has announced the disposal of financial products held by its subsidiary, HONGFUJIN PRECISION ELECTRONICS(ZHENGZHOU) CO.,LTD. The transaction, which took place today, involved the sale of the GUANGDONG FINANCE TRUST．PENGYUN TIAN HUA COLLECTION FUND TRUST for a total amount of RMB 632,869,462.80.
The trading counterparty for the deal was identified as GUANGDONG FINANCE TRUST CO.,LTD, with no reported relationship to Hon Hai. The company stated that the transaction was carried out in accordance with its procurement authorization guidelines and that payment was made in a lump sum.
According to the details disclosed, the disposal resulted in a profit of RMB 132,869,462.80 for HONGFUJIN PRECISION ELECTRONICS(ZHENGZHOU) CO.,LTD. The transaction has altered the subsidiary's financial landscape, with the ratio of securities investment to total assets now at 0.8914% and to owners' equity at 1.9132%. The operating capital was reported as NTD-241,579,390,000.
The announcement clarified that there were no dissenting opinions from directors regarding the transaction, and it was not a related-party transaction. There was also no involvement of a broker or broker's fee.
Hon Hai highlighted that the purpose of the disposal was for investment and to generate non-guaranteed floating income. Furthermore, the company confirmed that the transaction did not involve a change in business model and that there were no other matters needing specification.
This move comes as part of the company's broader financial strategy, but the press release did not disclose further details regarding the future use of the funds from the sale.
The information provided is based on a press release statement and is intended to give shareholders and the market an understanding of the company's financial maneuvers.
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