HONG KONG (Reuters) - Foxconn International Holdings Ltd (FIH), the world’s biggest contract maker of cellphones, has replaced its chairman just months after appointing a new CEO at the loss-making company.
FIH has seen its shares and financial results languish over the past few years as key clients such as Nokia Oyj suffered from weak orders.
Unlike its parent, Foxconn Technology Group’s flagship unit Hon Hai Precision Industry, FIH does not assemble Apple’s iPhones, iPads and iPods.
Samuel Chin, chairman of FIH, which makes handsets for companies such as Nokia, Huawei Technologies and Motorola Mobility, will retire on January 1 to spend more time with his family.
Chin will be replaced by Tong Wen-hsin, an executive director with the company, FIH said in a filing to the Hong Kong stock exchange on Thursday.
“Mr. Chin has confirmed that he has no disagreement with the board and there is no other matter relating to his retirement that needs to be brought to the attention of the shareholders of the company,” FIH said in a the filing.
In July, FIH, which is rumored over the past month to have received orders to make iPhones aimed at turning the company around, appointed Chih Yu Yang as its new chief executive officer, replacing Cheng Tien Chong who was stepping down.
FIH reported its worst-ever first-half net loss in August and is in need of a major order boost to turn around, analysts said.
FIH’s shares have lost a quarter of their value since the beginning of this year as its financial results suffered due to dismal orders from its troubled clients such as Nokia. The shares closed down 1.8 percent on Thursday.
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Reporting by Lee Chyen Yee; Editing by Anne Marie Roantree and Hans-Juergen Peters
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