Foxconn wants to transform the industrial Internet to apply for A share listing.

Source：Updated：2018-01-29 09:44:33

Foxconn's parent company is trying to wean itself off its contract model by making the transition to industrial Internet via A shares.

According to Taiwan media reports, Taiwan's hon hai precision industry co., LTD. (hon hai) has issued the first time this year shareholders' temporary meeting notice, will meet on the 31st of this month, discuss the subsidiary foxconn industrial co., LTD. (foxconn) Internet application listed on the Shanghai stock exchange.

That means foxconn is A step closer to landing A shares. Last month, hon hai issued a notice on the Taiwan stock exchange, saying that the board had made its initial public offering of common shares in the Chinese currency and applied for a listing on the Shanghai stock exchange.

For the purpose of foxconn in a-share listed, Taiwan media said, citing hon hai notice due to mainland China network communications and cloud computing market fast growth, so the Internet communications and cloud computing and other related manufacturing company and business integration to foxconn, and intends to apply for the a-share listed.

Hon hai announced plans last month for the first time when landing a-share also said that in the global big step towards industrial 4.0, + Internet, 8 k + 5 g era, the mainland industry booming, the Internet has A broad market prospect.

In fact, the landing of A shares is the idea that hon hai's chief executive, terry gou, put forward A few years ago. At the June 2015 shareholders' meeting, he said he was looking to split China's mainland operations over the next three to five years with A view to listing on the a-share market.

Last month, the international financial newspaper reported that foxconn's application for A share listing was A sign that hon hai was stepping up its implementation of the strategy. Moreover, the company's net profit fell 39% to about $696 million in the third quarter from a year earlier, the biggest drop in nine years, according to a report released last November.

In addition to the company's own big acquisitions, the new 3-d sensor technology used by the iPhone X has also affected hon hai's performance, the company said, citing analysts. From this perspective, the business situation will also make hon hai more eager to seek transformation.