Terry Gou: To Fight With Wang Chuanfu Buffett In His Lifetime.

Tall

Probably due to poor performance last year, coupled with the recent explosion tragedy in the polishing workshop of Chengdu factory, Terry Gou, chairman of Hon Hai group, was beautified in the company's annual shareholders meeting yesterday morning (June 8th).

"In the lifetime, the lawsuit with BYD must be fought to the end."

Terry Gou said that the lawsuit between the company and BYD has been fought for 5 years, and then the strategy will be changed and pferred to the Hongkong Special Administrative Region.

In his eyes, the enemy's friends are also enemies.

He laughed at Buffett, who invested in BYD. He said he was not a stock god at all, but he was a little smart.

And stressed that the next lawsuit, "even Buffett to fight together".

BYD's two official refused to comment on Terry Gou's remarks in the first financial daily.

Referring to potential lawsuits, one of them said that BYD had been harassed for 5 years and was not afraid of being harassed.

Even with Buffett.

The dispute between Hon Hai and BYD has lasted for 5 years and has not yet been concluded.

It started in 2006. In 2006, Foxconn filed a complaint in Shenzhen, saying that the two mobile phone design employees of Shenzhen Fu Tai Hong and Hong Kong company were hopping BYD.

Shenzhen litigation "Derby war", Foxconn at that time small win.

However, a notice issued by BYD yesterday showed that in October 5, 2007, Shenzhen Fu Tai Hong precision Honghong precision Hongkong Fujin precision court in the Hongkong Special Administrative Region high court once again sued BYD and some of its subsidiaries, ordered to prohibit the continued use and development of confidential information of the plaintiff, required to hand over the possession, management and use of plaintiff documents, and handed over the proceeds obtained through confidential information, compensation 6 million 507 thousand yuan.

BYD official said that Foxconn changed the lawsuit to the Hongkong high court for the two time in October 2008 and September 2009, and added Beijing Foxconn precision component company as the plaintiff.

BYD filed a counterclaim in October 2009.

Previously, this newspaper has reported that the core dispute between the two sides lies in the technical identification of commercial materials.

In the meantime, Zhao Jun, executive deputy director of the intellectual property appraisal center of Kyushu Island, Beijing, was responsible for the destruction, forgery of evidence and bribery. In addition, a former BYD employee suspected of accepting bribes from Foxconn, illegally stealing ciphertext, and the two sides were in dispute again.

BYD's return letter to the A shares issued on the day before yesterday showed that the lawsuit with Foxconn was still under trial on the date of signing the letter of intent, and admitted that the matter could have a significant adverse impact on the performance of the company.

Terry Gou said that the lawsuit lasted for 5 years without result, but it will fight to the end.

He thought Buffett's investment in BYD was a bit off the mark, but it would cause difficulties in the lawsuit and would even fight with him.

He also raised questions about Buffett's past.

This newspaper reported the matter the year before last.

For example, Terry Gou wrote to Buffett and asked him three questions: first, why do you always vote for a company with integrity and long-term management? Why did you invest in BYD, which has stolen Foxconn commercial secrets? Secondly, TOYOTA and Honda have invested in the field of hybrid electric vehicles for a long time. What kind of expertise do you use to judge the potential of BYD? Third, do you dare to drive the electric dual-mode car that you admire all day long?

Buffett did not respond to him.

Terry Gou was full of hatred in his language yesterday. The combination of BYD and Buffett was "a boast plus a stock market".

In his view, Buffett is not a stock god at all. He just relies on smart speculation. When investing in a certain scale, everyone is following it. This is the so-called Buffett's business strategy.

And he insisted on seeing whether "long-term investors or stock specs will become stock gods".

Market pressure behind light and fire

Behind Terry Gou's anger is the pressure of Hon Hai Group's market competition.

Two months ago, Taiwan's Hon Hai Group's Foxconn's 2010 earnings report showed that the company turned from a 2009 profit to a 2010 loss, a net loss of $218 million, a net loss of 3.06 cents per share.

The main reason for Foxconn's loss is that its main mobile customers NOKIA, Sony Ericsson, Motorola and so on. Last year, Apple's iPhone phone and iPad were obviously hit by growth.

To this end, in June 7th, Foxconn was also listed as a constituent stock of Hongkong's Hang Seng Index.

Hon Hai holds about 72% of Foxconn's equity, which is equivalent to the 157 million dollar loss figure that it needs to claim, much larger than market expectations.

However, as Hon Hai system also OEM Apple products, as a whole, it still makes a lot of oil and water.

According to the financial report, in 2010, its total revenue was nearly NT $3 trillion, an increase of 52.9% over the previous year, and net profit of NT $77 billion 154 million per year, with a surplus of NT $8.01 per share after tax.

But Hon Hai looks very stingy.

Not long ago, the resolution of the board meeting showed that it only distributed 0.5 yuan in New Taiwan stock dividends and 1 yuan in New Taiwan dollar cash dividends, triggering shareholder disputes yesterday.

Terry Gou finally decided to make a decision to increase the stock dividend by 0.5 yuan.

Terry Gou admitted that the overall performance of the company in 2010 was not good enough to score only 60 points. The reason for the decline in gross profit was that many of the world's production base moved to the central and western parts of the country last year. During the relocation process, the production line must maintain normal operation. More equipment must be purchased, and the wage level of the mainland increased, resulting in increased cost and Maori profit.

He said that the process of group pportation would take one to one and a half years.

He also mentioned the tragedy of the Shenzhen base last year, which emphasized that it took months to minimize the damage, and revealed that he thought he would be able to meet his shareholders and work for more than 12 hours a day.

The huge Hon Hai gross profit is continuing to decline, but its revenue is also growing rapidly thanks to the crazy apple.

Terry Gou said that after 2010 adjustment, Hon Hai will have a bumper harvest year in 2011.

With the new capital investment and the layout of the mainland channel, there will be a new wave of growth.

To this end, he complained for Hon Hai's share price, saying that NT $100 per share is actually cheap.

He even hopes to drop to NT $80 or NT $50, so that employees can buy more.

But if Terry Gou falls again, it will be difficult for him to retire.

In 2008, he said that the stock price would not return to NT $200, and it would not be easy to retire.

Terry Gou's announcement also means that the list of richest people in Taiwan in 2012 is likely to change again.

2007, he was the richest man for many years.

But after that, it was surpassed by Lin family of Cai family and real estate family in Taiwan area. After returning to the first place in 2009, he was once again surpassed by Wang Yongqing's daughter Wang Xuehong in 2010.