Subsidiary Futaihua Industry (Shenzhen) Acquires Right-of-Use Assets for Factory Premises
Original: 代子公司富泰華工業(深圳)有限公司公告取得廠房之使用權資產
Summary
Hon Hai is filing on behalf of its subsidiary Futaihua Industry (Shenzhen) Co., Ltd. to disclose the acquisition of right-of-use (ROU) assets related to factory facilities, consistent with IFRS 16 lease-recognition requirements. This reflects the subsidiary entering into or renewing a factory lease in Shenzhen, China, which must be capitalised on-balance-sheet as an ROU asset. Full body available on MOPS.
Full Translation
Subject-line translation: 'Announcing, on behalf of subsidiary Futaihua Industry (Shenzhen) Co., Ltd., the acquisition of right-of-use assets for factory premises.' Interpretive context: Under IFRS 16 (adopted on TWSE-listed companies' consolidated statements), any lease with a term exceeding 12 months or above a materiality threshold triggers recognition of a right-of-use asset and a corresponding lease liability. This filing indicates that Futaihua Industry (Shenzhen) — a PRC-incorporated manufacturing subsidiary of Hon Hai — has entered into, renewed, or modified a lease agreement for factory/plant space, thereby creating a reportable ROU asset that meets Hon Hai's disclosure threshold as a material information event. The Shenzhen facility is part of Hon Hai's core mainland China manufacturing base. [Body not available — subject line only. See MOPS for full announcement.]