TAIPEI - Hon Hai (TW:2317) Precision Industry Co., Ltd., also known as Foxconn (SS:601138), announced on Thursday that its subsidiary, FUTAIHUA INDUSTRIAL (SHENZHEN) CO., LTD., has acquired the right-of-use assets for a section of factory buildings in its Foxconn Hongguan Science and Technology Park, located in Shenzhen, China.
The transaction, which took place on Thursday, involves a factory building with a total area of 7,698.01 square meters. The unit price for the lease was set at RMB 19.62 per square meter, amounting to a total contract rent of RMB 3,020,699.20. The transaction for the right-of-use assets was valued at RMB 2,659,373.
The counterparty in the transaction is Foxconn Technology Group Co., Ltd., an affiliate of Hon Hai. The negotiation for the lease was conducted directly with the affiliate based on market prices and was approved by the company's board of directors on the same day.
According to the press release, the acquisition is intended to meet operational needs. The lease period is set to begin on February 1, 2025, and will extend until September 30, 2026. There were no dissenting opinions from directors regarding the transaction, and it was ratified by supervisors or approved by the audit committee on the date of the resolution.
No professional appraisal firm was involved in the transaction, as the price was determined through negotiations based on market rates. Furthermore, no broker fees were incurred during the process.
The acquisition of these right-of-use assets from a related party is part of Hon Hai's strategy for resource integration within the group. The company has not disclosed any further plans or projections regarding the impact of this transaction on its financial performance.
This move by FUTAIHUA INDUSTRIAL (SHENZHEN) CO., LTD. reflects the ongoing adjustments and expansions within Hon Hai's operational infrastructure. The information is based on a press release statement and is provided by RNS, the news service of the London Stock Exchange (LON:LSEG).
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