FIH Mobile turns profitable, over 70 million USD last year

Hon Hai subsidiary FIH Mobile Limited turned from loss to profit last year, earning 77.71 million USD, with earnings per share of 1.04 US cents, compared with a loss of 316 million USD the year before.

Hon Hai subsidiary FIH Mobile released last year's financial report, with revenue of about 4.997 billion USD last year, down 4.6% from about 5.24 billion USD the year before. Last year, profit for the year attributable to owners of the company was 77.71 million USD, compared with a loss of 316 million USD the year before, a sharp turnaround from loss to profit. Last year, earnings per share were 1.04 US cents, compared with a loss per share of 4.33 US cents the year before.

On dividends, FIH Mobile said that during 2013 no dividend was paid, declared or proposed, and no dividend had been proposed for payment since the end of the reporting period.

In terms of gross profit margin, FIH Mobile said that driven by increased capacity utilization and a more favorable revenue mix, the gross loss margin of 0.01% in 2012 rose to a gross profit margin of 4.48% in 2013.

FIH Mobile said it will continue to introduce production automation facilities to further enhance the efficiency of its existing flexible production lines and industrial engineering methods.

Looking back at last year, FIH Mobile said that 2013 was a challenging year. The macro environment became more stable, while some customers still saw demand decline due to intense competition in the mobile phone industry; some entered a period of continuous transition due to leadership changes or mergers with other entities, facing policy uncertainty.

FIH Mobile pointed out that last year some mainland China brands gained market share by launching low- and mid-range smartphones better suited to end-user needs. In terms of regional performance, emerging markets such as mainland China and Southeast Asia became the main sources of growth for the global mobile phone industry.

Looking ahead to this year, FIH Mobile said operational improvements show the business has returned to the right track, and it will maintain its strategy of developing new customers and new markets, improving efficiency and strengthening ODM partnerships. It expects promising steady growth in 2014 and is confident of transforming this year.

▲Hon Hai subsidiary FIH Mobile Limited turned from loss to profit last year, earning 77.71 million USD, with earnings per share of 1.04 US cents, compared with a loss of 316 million USD the year before. (CNA file photo)