From losing S$100m to earning S$55m profit
Two years ago, Hi-P CEO Yao Hsiao Tung had to postpone his plans to slow down. Now that business has stabilised, he's back to succession planning
Singapore
IN 2015, Yao Hsiao Tung was 75 and looking to slow down. He'd begun seeking his successor as chief executive officer of Hi-P International Ltd, a contract manufacturer for customers including Apple Inc and Amazon.com Inc. But an annual loss, and the US$126 million claim that Hi-P filed because of it, ended that plan.
The self-professed troubleshooter attributes the company's first red ink since listing on Singapore's stock exchange mostly to one big error that he oversaw. Its electronics unit took on a contract to co-design and produce a dual-screen smartphone for Yota Devices Ltd without doing enough due diligence. The Moscow-based firm didn't take delivery of the phones, according to Yao. Yota couldn't be reached for comment.
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