Foxconn’s FIH Mobile losses wides as Chinese demand slows

Foxconn’s FIH Mobile losses wides as Chinese demand slows

Foxconn International’s wholly-owned subsidiary, FIH Mobile said its losses rose further as demands in China fell.

FIH Mobile said its net loss for the first half of the year rose to $348 million compared to $199 million reported in the year before.

Despite the losses, FIH reported major investments during the period.

As at 30 June 2018, the Group had its US$20.8 million equity investment in Meitu Inc., a mobile internet platform company specialising in photo and video applications, as well as selling self-branded smartphones for optimised selfie experience.

Meitu is not only a photo-enhancement application but also turning itself into a photo-socialplatform, with plans to expand into games, online literature, even claw crane machines. The Group’s total investment in Meitu represented about 1.27% (calculated on as-converted and fully-diluted basis) of the total issued shares of Meitu as at 30 June 2018. After IFRS 9became effective in 2018, the investment in Meitu is accounted for as fair value through profit or loss, there was US$28 million fair value loss recognised in profit or loss during the current period. As at 30 June 2018, its fair value amounted to US$48 millionand represented 0.57% of the Group’s total assets.

The Group invested in Mango International Group Limited (“Mango”), a company which provides smartphones to help hotels better monetise and understand their guests through a customised system. Since the Group’s investment in 2015, Mango’s business expanded into certain major tourist destinations in the world and collaborated with various leading hotel groups and luxury hotel icons.

Mango continued to increase the scale of participating hotels and successfully completed the series D fundraising in the first half of 2018, which timely solved the tight cash flow. The Group will closely monitor its operating performance,monetization and cash flow.

The Group’s total investment in Mango represented about18.23% (calculated on as-converted and fully-diluted basis) of the total issued shares of