Fu Zhikang expects 2014 consolidated net profit to increase 80% to 100% from last year

Absrtact: At the end of November, Hon Hai's Hong Kong-listed subsidiary, Chi Kang Group, released positive earnings forecasts, and the net profit for 2014 is expected to rise 80% to 100% from last year, which means Hon Hai has risen from its slump of 2012, with more than two years of clients

At the end of November, Hon Hai's Hong Kong-listed subsidiary, Chi Kang Group, posted positive earnings forecasts that the 2014 consolidated net profit would rise 80% to 100% per cent from last year, meaning Hon Hai has risen from its slump in 2012 and the group's two-year customer diversification strategy has begun to bear fruit.

Mobile phone business on the right track, the full blood of the resurrection of the Hon Hai can finally teng to expand new business opportunities, it is the first to aim at the electric business sector. Hon Hai has already made an expensive tuition fee in the field because of its deep-rooted business-to-business thinking that it is hard to do so, and this time, it has learned to be a good boy and no longer behind closed doors.

From Business-to-business to Business-to-consumer

From a strategic perspective, Hon Hai is to refocus the scope of the electrical business to its own good at 3C products, the establishment of a new brand of electricity, and widely satisfied with the internet talent. For example, the former Flying Tiger Tesco platform for cutting, set up a focus on 3C product sales of the rich networking platform. On the other hand through the acquisition of a mature business model of the 3C product marketing platform. On September 5 This year, for example, Fu Zhikang acquired a 30% per cent stake in a U.S. website cexchange.com the electronic consumer business through an overseas, wholly-owned subsidiary, Spinternational. The announcement indicated that the company was established in 2006 and engaged in the operation of electronic products such as trade-in, repurchase (including procurement and resale), renovation management, unsalable and returned goods management, and procurement and sales agents.

In addition, has many years of experience in hardware generation of Hon Hai also has a killer: the absolute professional leading equipment testing technology and supporting laboratories. The economic observer told the people familiar with the matter that Hon Hai is planning to use these resources to set up a consumer evaluation center independent of the electricity business. In the domestic 3C electric business structure has been set, blue ocean into the Red Sea today, Hon Hai Hope side attack to provide consumers with a new experience.

The back of the electric business is not only the new profit growth point, but also the transformation of Hon Hai, the opportunity to completely transform the plant gene. In the 2014-year report, released at the end of August, Fu Zhikang has said it wants to build a closed-loop mobile phone ecosystem, from production to logistics marketing to after-sale maintenance, and even to the mobile Internet ecosystem, such as social networks and mobile, to connect to end customers.

Then the Hon Hai and then the electric business can be a snow before the shame?

Electric business platform re-cutting

During the national day, Foxconn's new business platform of the company's rich network quietly online, the main 3C category of sales, Gou's electric business strategy finally returned to beginner.

The network is not the first product of a Foxconn electric shock. As early as 2010, Foxconn has launched a high-profile launch of the Flying Tiger Tesco platform, and from the same business model of the new egg China dug to Du Jiane as chairman. At that time, the new eggs in China's electric business development is booming, has data show that its 2010 accounted for the market share of 5.4%, after Jingdong, when and Amazon China. Foxconn's ambitions in the electric business sector are evident.

Unfortunately Du Jiane's idea soon clashed with the boss, from the new egg out of his want to take the Flying Tiger Tesco also dozen created a similar comprehensive electric business platform, and Gou's idea is only sell 3 C. After all, Foxconn does is the 3C product generation, the layout of the electrical business naturally preferred their familiar areas.

Flying Tiger Tesco publicly online a year ago in the group when the company also had a revenue of more than 60 million yuan and profit, but the beginning of 2010 but successive years of losses.