Letschatstars.

Letschatstars.

Foxconn Partners with Zhendin-KY to Invest in China's Green Energy Private Fund

Foxconn Partners with Zhendin-KY to Invest in China's Green Energy Private Fund

Foxconn is actively expanding its green finance initiatives, recently entering into a joint investment of China Renewable Power Infrastructure LPF private fund worth $50 million (approximately NT$1.475 billion) through its subsidiaries CyberNet Venture Capital and Zhendin-KY (4958) subsidiary Pengding International. This investment highlights Foxconn's commitment to enhancing its asset allocation in the fields of renewable energy and infrastructure, demonstrating its strategic focus on low-carbon supply chains and new energy transformation.

According to reports, CyberNet will invest $20 million (approximately NT$590 million) to acquire 3.08% of the fund, while Zhendin plans to invest no more than $30 million (approximately NT$885 million) to hold a maximum of 4.62% equity. Both investment initiatives have been approved by the respective boards and will be designated for long-term investment purposes.

Both parties emphasized that the fund's delivery is still subject to regulatory approval, and funding has yet to be finalized. The fund is focused on investments in renewable energy and related infrastructure in China, encompassing green energy assets such as wind power, solar energy sites, energy storage systems, and grid construction. In light of recent developments, this investment is regarded as an extension of Foxconn's outreach towards external green assets.

From a financial perspective, the impact of this private fund investment on both companies' assets is minor, accounting for only 0.35% of Foxconn's total assets and 0.34% of Zhendin's, thus not constituting a significant operational change. Additionally, neither initiative involves related party transactions, and no funds are restricted; the future benefits will depend on the fund's actual operational performance.