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Hon Hai announced on the Taiwan Stock Exchange that the stake in Guangzhou Orange Bank Zhi Zhi Automotive Technology Co., Ltd. was sold to an investment company in Tianjin, with a total transaction value of about 300 million yuan.

Coincidentally, recently, foreign media have also revealed that Foxconn has shrunk its mobile business and entered into automobile projects. Fuzhikang is shifting engineers and other resources from its Android smartphone business, which accounts for 90 per cent of its revenue, to a new automotive electronics project, people familiar with the matter told the Nikkei Asia Review (NikkeiAsianReview). Reported that one of the Foxconn engineering and technical team has been 50% of the engineers have been reassigned to the car project.

In January last year, the Taiwan Stock Exchange announced that Hon Hai Precision, owned by Foxconn, acquired a 2.94% stake in Guangzhou Orange Bank Zhi Zhi Automotive Technology Co., Ltd., through a 300 million yuan stake in its subsidiary. Xiaopeng is the Internet electric vehicle brand of Orange Bank Intelligence Motor Co., Ltd.

After three rounds of A0, A1 and A2 round A+ financing and round B and round B + round financing, Xiaopeng Motor has a cumulative financing amount of more than 10 billion yuan, and its current valuation is about 25 billion yuan. In March, he Xiaopeng, CEO of Xiaopeng Automobile, also revealed that the company is seeking financing of at least 500 million US dollars. Xiaopeng Automobile announced earlier that the company plans to achieve a cumulative financing of about 30 billion yuan by the end of 2019.

Foxconn first demonstrated its interest in electric cars at a news conference in early 2014. A spokesman for Hon Hai said at the time that in the field of new energy vehicles, Foxconn's R & D business group had the world's leading "research and development of core and key components, test verification, system integration and comprehensive solutions". Then, at the end of December 2014, Foxconn bought a stake of HK $600 million in Harmony Automobile, and it was mentioned in the subscription agreement that the two sides would start a new energy vehicle business, but then Foxconn withdrew from Harmony Futeng a year and a half later. Then invested in Xiaopeng in January 2018.

After the withdrawal of the "Harmony and Fortune" project, Terry Gou once expressed the view that any industry plus the Internet of things has become the Internet, but in turn, it is not easy for the Internet industry to make. Take cars as an example. The success rate of companies in the Internet industry to build cars is very small, because cars involve human lives, and there are a large number of hardware problems to be solved. But soon Gou turned to invest in Xiaopeng, and now there is news that Hon Hai is going to sell shares in Xiaopeng's parent company, combined with the news that foreign media Foxconn focuses on "taking care" of the automotive electronics project. Does it mean that Gou lost his way again?

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