Foxconn Record-High 30% Surge in Q2 2021

Estimated reading time: 1 minute

Hon Hai Technology (Foxconn) announced their 2021 Second Quarter Financial Results at its Investor Conference. The company reported revenue of TWD1.35 trillion with TWD2.15 earnings per share. It also hit a record-high net profit of TWD29.7 billion, which reflects a 30% year on year increase.

2021 Q2 revenue has increased 0.3% as compared with the last quarter and a jump of 20% year on year. The company has also recorded the following:

Amidst the global pandemic, Foxconn unlocked over 30% growth in the first half of 2021, setting a record high TWD57.9 billion net profit figure. This achievement, along with its highest Gross Profit Margin performance in the preceding four years is testament to the commitment of the group’s leadership to maximize profits.

Growth of the Electric Vehicle business

At the Investor Conference, Mr. Young Liu, Chairman and CEO of Foxconn, highlighted the success of the electric vehicle business. Leveraging the group’s unique business model and vertically integrating services, the group is well positioned to provide value to their customers and meet their emerging needs from design, component and manufacturing to regional network collaboration. The company has forecasted that the business for electric vehicle components will drive more than TWD10 billion in additional revenue this year, representing a 40% increase year on year, with a higher growth rate expected in 2022. Presently, the group has allocated a dedicated team of a few thousand employees for the automobile related business units, and the group expects to bring in additional talent from the electric vehicle, software and semiconductor industries.

Building efforts towards ESG

Foxconn is devoted to establishing a solid and stable foundation for sustainable growth through the establishment of corporate social responsibility initiatives. The initial focus for the group will be on five international initiatives and frameworks that includes the United Nations - Sustainable Development Goals (SDGs), CA100+ (Climate Action 100+), Carbon Disclosure Rating (CDP), Task Force on Climate-Related Financial Disclosures, and Science Based Targets initiative (SBTi). The company has also set up a dedicated CSR committee led by the Chairman and CEO under the advisement of a renowned international consulting company to set their short- and long-term goals and accelerate ESG efforts.