Terry Gou to earn NT$5.6 billion in cash dividends from Hon Hai

Taipei,  Terry Gou (郭台銘), founder of Taiwan-based tech giant Hon Hai Precision Industry Co., is expected to pocket about NT$5.6 billion (US$187 million) after the world’s largest contract electronics maker proposed a large cash dividend per share for its 2019 earnings.

In a statement released Tuesday, Hon Hai said the company has proposed issuing a NT$4.2 cash dividend per share after posting NT$8.32 in earnings per share in 2019.

Data compiled by the Taiwan Stock Exchange shows Gou, one of the richest men in Taiwan, owns about 1.34 billion Hon Hai shares or a 9.67 percent stake in the company.

Based on his shareholdings, Gou is expected to receive a NT$5.635 billion cash payout from Hon Hai if shareholders approve the proposal at an annual general meeting scheduled for June 23.

Gou stepped down as chairman of Hon Hai, also known as Foxconn on the global market, in June 2019 to enter politics, but remains one of the company’s largest shareholders.

Liu Young-way (劉揚偉), the former head of Hon Hai’s semiconductor division, succeeded Gou as head of the company.

Hon Hai is expected to pay a total of NT$58.22 billion in cash dividends to its shareholders.

In addition to a vote on the cash dividend proposal, Hon Hai is expected to report to its shareholders about its investment in China, where production was interrupted by the COVID-19 outbreak before gradually returning to normal.

Hon Hai currently runs a sprawling production base in China, with a workforce of more than 1 million.

In 2019, Hon Hai posted NT$115.31 billion in net profit, down 10.66 percent from a year earlier but its EPS was NT$8.32, which is the highest in three years since the company cut its paid-in capital by 20 percent to NT$138.63 billion in 2018 in a bid to maintain an EPS of around NT$8.

Based on the 2019 EPS, the dividend payout ratio topped 50 percent.

In April, Hon Hai’s consolidated sales hit a high of NT$380.93 billion for this year, up 9.57 percent from a month earlier, as the company received deferred orders from the first quarter, when production was interrupted by the spread of COVID-19.

The effects of deferred orders are expected to continue into the second quarter, the company said.

Hon Hai has scheduled an investor conference for Friday to detail its results for the first quarter and give guidance for the second quarter.

 

Source: Focus Taiwan News Channel

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