FIH Mobile seeks shareholder approval for connected transactions with Hon Hai Group

FIH Mobile Limited has announced an Extraordinary General Meeting (EGM) on December 30, 2025, to approve non-exempt continuing connected transactions with its controlling shareholder, Hon Hai Technology Group. These transactions, involving product supply, consolidated services, sub-contracting expenses, and product sales, are set to extend through December 31, 2026, with proposed annual caps. The company emphasizes these transactions are in the ordinary course of business, on normal commercial terms, and beneficial to shareholders.

The proposed annual caps for 2026 are $1,183,000 for Purchase Transactions, $97,000 for Consolidated Services and Sub-contracting Expense Transactions, and $2,162,000 for Product Sales Transactions. These caps are based on historical amounts, estimated growth rates, and a 10% buffer for unforeseen market changes. Hon Hai, holding approximately 64.44% of FIH Mobile's issued shares, and its associates will abstain from voting on these resolutions at the EGM.

Independent non-executive directors and the independent financial adviser, Halcyon Capital Limited, recommend shareholders vote in favor. They cite that the terms are fair and reasonable and in the best interests of the company and its shareholders. Internal control measures, including quarterly reviews by accounting departments and semi-annual reports to the audit committee, are in place to monitor compliance and ensure transactions adhere to pricing policies and annual caps.