Sharp's huge losses dragged down Hon Hai's performance, and Liu Yangwei, chairman of Foxconn, went to Japan to communicate with employees.

CTOnews.com, July 6 (Xinhua)-- Foxconn Chairman Liu Yangwei traveled to Japan this week for talks with Sharp's middle-level employees to discuss topics including the relationship between the two companies, according to people familiar with the matter.

▲ source: sharp Sharp reported in May that it expected a full-year loss of $1.9 billion after writing down the value of its display panel business and a number of other assets (CTOnews.com Note: currently about 13.775 billion yuan). Affected by the news, Foxconn (Hon Hai Precision) recently released an earnings report showing a 56 per cent drop in first-quarter net profit due to a T $17.3 billion (currently about 4.014 billion yuan) writedown on its Sharp stake.

Foxconn currently owns 34% of Sharp and is Sharp's largest shareholder.

At a meeting attended by more than 100 employees, Liu Yangwei discussed the relationship between the two companies, Sharp's global positioning and the future of the Japanese company, according to two sources. Earlier this year, Liu Yangwei said he would work harder on Sharp's management, but did not give details.

Both Sharp and Foxconn did not respond to requests for comment.