Foxconn Shareholders Approve Record Cash Dividend for 2023

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Hon Hai Technology Group, at its annual shareholders’ meeting, approved its distributable earnings plan totaling NT$74.86 billion in cash. The cash dividend of NT$5.40 per share for 2023 sets a new high since Foxconn listed in 1991, with the cash dividend payout ratio exceeding 50% for the fifth consecutive year.

In addition to voting for the 2023 annual business report and financial statements, shareholders also approved the 2023 employees’ remuneration distribution plan or an issuance of NT$8.26 billion in cash remuneration to employees.

This year marks the 50th anniversary of Foxconn’s founding. When the company went public in 1991, its revenue was less than NT$10 billion. It has since grown to more than NT$6 trillion and is now the 27th largest company in the world in terms of revenue. Presiding over the annual shareholders’ meeting, Foxconn Chairman Young Liu began by especially thanking the shareholders in attendance online and onsite at the company’s headquarters in New Taipei City. He took shareholders through the company's operating results over the past year and shared Foxconn’s future development plans, covering 10 major themes in detail.

Chairman Liu said high inflation and high interest rates in the post-pandemic era have dampened end-market demand and investment willingness of enterprises. For Foxconn, it is both a challenge and an opportunity. Supported by the collective efforts of the Group’s employees, Foxconn was able to tap into its long-established advantages and achieve a revenue of NT$6.16 trillion, the second-highest recorded annually. At the same time, EPS reached NT$10.25, a 16-year high. All three profit metrics gained on a gross, operating and net basis. The results show that while the company is pursuing EPS maximization, it also continues to optimize its product mix and continuously improve gross profit margins.

Looking forward to the future, Foxconn will transform from a manufacturing services provider into a platform solutions provider, focusing on the development of three major platforms: Smart Manufacturing, Smart EV, and Smart City. Utilizing the experience and technical capabilities of components, modules, system assembly, IC and software accumulated by Foxconn over decades, and with the help of the generative AI factory, the Group will develop various solutions required for the three platforms. Foxconn will also work with NVIDIA to develop the next generation of AI and robotic production systems.

Chairman Liu said the AI industry is still in the initial stage of rapid growth. Some research institutions predict that the AI industry will exceed US$1 trillion within the next seven to eight years, with hardware accounting for more than half of that scale. This area will also be one of the main driving forces for Foxconn's future growth. The company's AI server revenue will grow by more than 40% this year, and its share of overall server revenue will also reach more than 40%. As demand for AI grows, AI servers will soon become Foxconn’s next trillion-dollar revenue product.

In terms of EV development, from 2022 the production of electric buses and electric traction motors started, and this year the MODEL C passenger EV entered mass production in Taiwan. Shipments in the first four months have surpassed 2,000 units and are expected to exceed 10,000 units for the year with a revenue target of more than NT$10 billion. In the fourth quarter of this year, preparations will be complete for mass production of another passenger EV, the sporty crossover MODEL B; pre-orders will begin in 2025.

In EV software, Foxconn has obtained ISO 26262, the international standard for functional safety of automotive electrical and/or electronic systems, affirming the quality and safety of the software. Under BOL, Foxconn’s innovative business model to build, operate and localize with local partners, customers are offered EV software service, and the goal of software-defined vehicles is achieved. Foxconn’s Kaohsiung Software R&D Center was opened last year. Going forward, it will accelerate the development of Taiwan’s software industry based on the three major smart platforms.

The 5th annual Hon Hai Tech Day (HHTD24) was also officially announced at the shareholders' meeting. In addition to expanding the event into two days, exhibitions of the three smart platforms and AI, along with electric vehicle models and other key products will be showcased and refreshed for the senses. HHTD24, set for October 8-9 this year, will open to the general public for the first time on day two, so that friends who are interested can experience it in person and learn about the Group’s latest technological developments.

As one of the series of events marking Foxconn’s half centennial, this year's shareholders' meeting held a special exhibition on the first floor of the company’s global headquarters, displaying five electric vehicles including MODEL C, MODEL B, MODEL E, MODEL V and MODEL N. The MODEL T electric buses, designed and manufactured by the Group, provided transportation for shareholders, while a "50-year Time Corridor" from the entryway allowed shareholders to see and understand the company’s growth history.

Foxconn displayed the latest generation of AI servers and liquid-cooling racks jointly developed with customers to help accelerate generative AI computing during NVIDIA's annual GTC show in March. The much sought-after AI servers, on display at that time, were specially reconstructed again with detailed audio and video animation to give shareholders a closer look.

Also set up in the special exhibition for shareholders, Factory GPT was displayed for the first time, giving shareholders a look at various applications of generative AI in the factory environment. In the Smart Tourism exhibition area, shareholders could try out City Glass AR glasses to experience futuristic travel. A range of digital health devices were also on display, demonstrating the Group's efforts to develop a new ecosystem for telemedicine. Foxconn displayed the original 1:1 scale model of the low-Earth-orbit satellite, which was launched last November. This gave shareholders a close-up, life-size view of the “PEARL” that is orbiting space.

A new wave of shopping promotions and discounts for Foxconn shareholders officially launched at the annual general meeting. Enthusiastically welcomed every year, this year six of the Group’s affiliates, ShunSin Technology Holdings Ltd, Healthconn Corp, Ennoconn Corp, ESON Precision Engineering Co Ltd, Foxsemicon Integrated Technology Inc and General Interface Solutions Holding Ltd (GIS) were invited to take participate, expanding the beneficiaries. In total, participating vendors include 37 shops, more than 1,200 physical stores, covering all aspects from cuisine, apparel, accommodation and transportation to education and entertainment. Through these different ways, the Group shows its appreciation and serves shareholders who have long supported Foxconn.