Rumors are running rampant surrounding Taiwan tech giant Hon Hai, as it faces a tax audit and land use investigation in China. According to one rumor, Hon Hai is now strictly adhering to Chinese labor laws and has eliminated overtime and night shifts. Another rumor alleges that Hon Hai implemented an early holiday at one of its China factories. A financial analyst believes the rumors are unlikely to be true, due to strong iPhone 15 sales and rising demand. Amid the speculation, Hon Hai is urging the public not to believe the rumors, stressing that operations remain normal.
Recent online rumors claim that since late October, Hon Hai’s China factories have been strictly adhering to Chinese labor laws, implementing a two-day weekend and eight-hour workday, with no overtime or night shifts. This has reportedly dealt a blow to workers who rely on overtime pay. Another rumors indicates that Hon Hai’s Foshan plant has taken its Lunar New Year vacation early. But a financial expert says that, with iPhone 15 sales going well and peak shopping season just around the corner, it’s unlikely that the plant went on holiday four months in advance.
The first possibility could be that Apple sales actually aren’t going well. But from the data, we can see that’s not the case. Since Hon Hai is being audited, it has decided to abide by the rules, so you can only work eight hours a day.
With rumors circulating concerning China’s tax inspections into Hon Hai, the company set the record straight at its investor conference.
Voice of David Huang
Hon Hai CFO
Our company always complies with laws and regulations in its operations all around the world. Currently, production and operations are normal as a whole. We will proactively cooperate with the relevant government agencies in any procedures necessary. We hope to get the relevant matters done with as soon as possible, to quell everyone’s worries about uncertainties. Once there are any clear results, we will make an announcement to let everyone know.
Sources say it’s untrue that Hon Hai adjusted its work hours and holidays. At press events and earnings calls, the company has stressed that operations remain normal and urged the public not to believe baseless rumors.
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