FIT Hon Teng seeks shareholder approval for connected transactions with Hon Hai

FIT Hon Teng Limited announced proposed renewals of its Framework Sales Agreement and Framework Purchase Agreement with Hon Hai Group for the year ending December 31, 2026. The proposed product sales annual cap is set at $636 million, reflecting an expected 16% growth compared to annualized FY2025. This growth is attributed to strategic business expansion, key acquisitions in 2023 and 2024, increased demand for audio products, and significant growth in AI rack shipments.

The proposed product purchase annual cap is set at $535 million, projected to increase by approximately 28% compared to annualized FY2025. This rise is driven by increased sales volume, manufacturing ramp-up, and the volatility of gold prices, which directly impact the cost of procuring gold salts—a major raw material. A 10% buffer has been included in both caps to account for external uncertainties.

The transactions, constituting non-exempt continuing connected transactions under listing rules, require approval from independent shareholders at an extraordinary general meeting on December 30, 2025. Hon Hai and its associates will abstain from voting on these resolutions.