On March 27th, Hon Hai’s Hong Kong-listed subsidiary, Hong Teng Investment Co., Ltd. (FITHonTeng Limited, stock code 6088.HK, hereinafter referred to as “Hong Teng Precision Technology”) issued an announcement stating that it is with Belkin International (hereinafter referred to as : Belkin) signed a merger agreement, Hong Teng Precision Technology spent US$ 866 million to acquire Belkin in a merger.
China National Grid learned that after the completion of this acquisition, Hongteng Precision Technology plans to integrate Belkin’s existing branded services of Linksys and Wemo, Belkin and its own smart home related assets to establish a new smart home business unit to further synergies. .
Belkin Yes Who?
Compared with the famous names of 'Hon Hai' and 'Foxconn', people seem to know little about Hongteng Precision Technology and Belkin.
China National Grid understands that Hongteng Six Eighty Eight Precision Technology Co., Ltd. is registered in the Cayman Islands, and its ultimate holding company is Hon Hai Precision Industry Co., Ltd. (Hon Hai). The direct holding company is a wholly-owned subsidiary of Hon Hai. Foxconn (Far East) Limited (Foxcon Hong Kong).
Hong Teng Precision Technology was listed in Hong Kong in July 2017. It is the fourth-generation Hong Kong-listed Hong Kong-based mobile phone foundry Fu Zhikang. Subsidiaries. It is reported that Hong Teng Precision Technology, formerly known as NWInG, is a subsidiary of Hon Hai's Network Connectivity Products Group (NWInG). It was independently established in Hon Hai in July 2013. It is registered as Hong Teng Precision Technology and its main business is applied to information technology. And automation equipment, precision molds, connectors for the automotive and consumer electronics industries, chassis, thermal modules, wired and wireless communications products, optical products, power supply modules and accessories manufacturing, sales and service.
Hong Teng Precision Technology achieved revenue of 3.399 billion U.S. dollars in fiscal year 2017, an increase of 18.0% year-on-year, and achieved a profit of 180 million U.S. dollars, an increase of 6.5% year-on-year. Among them, mobile and wireless equipment business revenue increased by 28.4% year-on-year to approximately 1.590 billion U.S. dollars. Accounted for 46.8% of total revenue; communications infrastructure business revenue increased by 18.8% year-on-year, approximately US$844 million, accounting for 24.8% of total revenue; computer and consumer electronics revenue increased by 1.4% year-on-year, approximately US$819 million , accounting for 24.1% of total revenue; automotive, industrial and medical business revenue increased by 45.2% year-on-year, approximately US$64 million, accounting for 1.9% of total revenue.
Belkin was founded in Hawthorne, California in 1983. The main products and services include WIFI routers and field distributors, home automation solutions, mobile device charging, chassis, coverage and docking solutions, tablet keyboards, power supplies. With data cables and KVM switches. Belkin has more than 700 patents and 22 subsidiaries in 14 countries with operations in the United States, Canada, South America, Asia Pacific and Europe.
China National Grid learned that Belkin achieved sales of US$789 million and US$754 million in the two fiscal years ending September 30, 2017 and October 1, 2016, respectively. Among them, according to U.S. accepted accounting standards, On September 30, 2017, Belkin’s audited net asset value was approximately US$57 million.
China National Grid learned from Hong Teng Precision Technology that, after the completion of the merger, Belkin and its brands Belkin®, Linksys®, Wemo®, and Phyn® will continue under the leadership of CEO and founder Chet Pipkin and the team. , continue to operate as a subsidiary of Hongteng Precision Technology. ChetPipkin is expected to join the operation team of Hongteng Precision Technology.
Intended for smart home
Hongteng Precision Technology stated that M&A Belkin is mainly due to three factors: strong sales channels and globally recognized brands; growth potential of the business; synergy effects of mergers; and the value of restrictive contracts with ChetPipkin.
Among them, in the expected synergy effect, the integration and layout of smart home is the most important thing.
'The combination of Hong Teng Precision Technology and Belkin will accelerate the realization of our vision of making people's lives better, more convenient, and more fulfilled through technology. 'ChetPipkin, CEO and founder of Belkin, said that Belkin and Hong Teng Precision Technology With excellent cooperation advantages, the world-class production strength of Hongteng Precision Technology can strengthen Belkin's operational efficiency and competitiveness. With this integration, it can provide more resources to support employees, and actively develop and expand the market and business opportunities. .
'Combining with Belkin's brand in the high-end consumer market is an exciting event for us. ' Lu Teng Precision Technology Chairman and CEO Lu Songqing said that by combining Belkin's market-leading customer solutions, it is expected to strengthen both High-end technology product portfolio, while accelerating the layout of the emerging smart home market.
The intention of Hongteng Precision Technology is very clear. With the help of Belkin’s R&D strength and sales channels for consumer electronics products, we further develop the peripheral merchandise of high-end consumer electronics products and the smart home market. While achieving a great leap forward in R&D and manufacturing, we are expanding in the United States. And the layout of the global market.
Build Foxconn 'big family'
In fact, the acquisition of Belkin is by no means an isolated incident. This is closely related to Foxconn's strategy of opening up the power to create a 'backbone economy'.
In mid-2017, in a 226-page report, Zhang Bokai, head of the research team of Macquarie Securities Greater China's technology industry, predicted that Hon Hai/Foxconn will become the Integrator of the Future World (Integrator for tomorrow's world).
On March 7, 2018, the day before the opening of AWE2018, Sharp released a 'strategic strategy matrix' that revolved around clean air, clean water, and clean food. These three basic needs, as well as the beautiful face, smart brain, etc. Hierarchy of needs, the integration of fragmented home appliances and home products into a co-operative ecosystem to create a smart home Internet ecosystem.
However, according to Chen Zhenguo, vice president of Foxconn Technology Group, there is still a long way to go before reaching the goal of an ideal smart home. This requires more products, scenarios, technologies, and companies to work together to create a smart home ecosystem. .
Chairman of Foxconn Technology Group, Mr. Gou Ting-ming, has repeatedly mentioned the strategic thinking of the 'backbone economy' and hopes that 'more people will get richer' to jointly create an open big scene. Foxconn's patent platform, product design platform, product development platform , Rapid prototyping and experimental platforms, test platforms, supply chain platforms, smart manufacturing platforms, sales platforms, service platforms, and funding platforms, can provide a full range of empowerment.
“Sharp has joined the Foxconn family. The Sharp Pavilion during AWE today also highlighted Foxconn. 'Chen Zhenguo told China National Grid that Foxconn will surely not only have a Sharp brand in the future, but may build more brands in the future.'
In the interview with Chen Zhenguo, he repeatedly mentioned the term “transboundary integration.” In addition to multi-brand operations, the core technology is applied to different products, different industries, and different scenarios are also part of cross-border integration.
According to Chen Zhenuo, the new project located in the Foxconn (Shenzhen Longhua) Science and Technology Park, in addition to the ever-sharpened Sharp design R&D center, the rectification of a plant factory in the park is also a microcosm of the industrial layout of the agricultural Internet.
On January 29 this year, the Internet electric vehicle brand Xiaopeng Automobile announced the launch of a total of 2.2 billion yuan in Series B financing. Foxconn and Alibaba Group, IDG Capital are among the leaders of the joint venture. On that day, Hong Teng Precision Technology Chairman Lu Songqing Also attended the financing conference.
Less than a month after taking the lead in the Xiaopeng car, Gou focused on Xiaopeng’s R&D headquarters in the Little Red Riding Hood. Gou visited the plant and took a test of the Xiaopeng G3 model, and spoke with Xiao Peng’s senior management team. hour.
In this regard, Chen Zhenguo said that Foxconn is upholding an open attitude and very much welcomes the application and participation of other companies' products. Through Foxconn's large platform, the big chain forms a big scene.