On the evening of April 29, Wingtech Technology issued an announcement. As Rongcheng Certified Public Accountants issued an unable to express an opinion audit report on the company’s 2025 annual financial statements, as well as a similar internal control audit report on the 2025 financial reporting internal control, the company’s stocks will be subject to delisting risk warning plus additional risk warning.The company’s stock and convertible bond "Wingtech Convertible Bond" will be suspended for one trading day on April 30, 2026. Risk warnings will take effect starting May 6, 2026, with the stock abbreviation changed to "*ST Wingtech" and a daily price fluctuation limit of 5%. If the relevant adverse conditions are not eliminated in the 2026 fiscal year, the company’s stock may face delisting termination.(Image)Source: Wingtech Technology AnnouncementReading this article, you will learn: What has happened to Wingtech since it lost control of Nexperia? How did this once 100-billion-yuan market cap enterprise end up in its current predicament, and what changes have taken place in its performance?
01 Wingtech’s Turbulent Six Months
Everything traces back to late September last year.On September 30, 2025, the Dutch Ministry of Economic Affairs and Climate Policy issued a ministerial order to Nexperia, imposing a one-year ban on any adjustments to assets, intellectual property, businesses and personnel across Nexperia’s 30 global entities.On October 7, the Dutch Enterprise Court formally ruled to suspend all positions of founder Zhang Xuezheng at Nexperia, placing 99% of Nexperia’s shares under the custody of a designated third party. The ruling remains in force until the investigation concludes with a final verdict.On the morning of October 9, Wingtech Technology released an announcement. Due to undisclosed material information, the company’s stock and convertible bonds were suspended from trading starting market open on October 9, with an expected suspension of no more than two trading days.On October 13, Wingtech resumed trading and plunged 10% at the opening bell.On October 14, Nexperia’s official website disclosed that China’s Ministry of Commerce had issued an export control notice on October 4, banning Nexperia China and its subcontractors from exporting specific finished components manufactured in China.The news triggered a chain reaction in the spot chip market. Demand for Nexperia automotive-grade part numbers surged abruptly. Purchase inquiries of tens of thousands to hundreds of thousands of units flooded chip industry groups, market quotations turned chaotic, and prices of some mainstream models soared dozens of times within days. Real transaction cases even saw prices jump 10 times.On November 1, Chinese authorities announced export exemptions for eligible Nexperia semiconductor products.On November 2, Nexperia China officially confirmed that Dutch-based Nexperia had halted wafer supply to its Dongguan packaging and testing factory starting October 26.In early November, an article claiming "China-EU reached an agreement and the Nexperia crisis is soon to be resolved" spread widely across the chip circle. Some traders offloaded inventory, driving prices down, before the news was proven false. Coupled with saturated inventory stocking by overseas clients in two previous rounds and steady progress of alternative replacement solutions, the spot market for Nexperia chips cooled overall from November onward, with the market turning to a wait-and-see stance.On November 19, the Dutch Minister of Economic Affairs announced the suspension of the ministerial order. Wingtech clarified in an announcement that same night: while the ministerial order was suspended, the judicial ruling issued by the Dutch Enterprise Court on October 7 remained fully valid, and control rights remained restricted.From November to December, there were constant exchanges of official statements between Wingtech and Nexperia Netherlands. The Dutch minister canceled a scheduled China visit in December citing scheduling conflicts. China’s Ministry of Commerce repeatedly pressured through diplomatic channels to demand the revocation of improper administrative and judicial interference, yet no substantial progress was made on core issues.On February 11, 2026, the Dutch Court of Appeal delivered its latest ruling: approving the official Dutch investigation application, upholding all interim measures imposed since October 2025, with an uncertain investigation timeline. The restricted control status was further solidified. On the same day, the credit ratings of Wingtech Technology and its related debts were downgraded.On April 29, Wingtech released its 2025 annual report and 2026 Q1 financial report simultaneously, followed by the *ST risk warning announcement.Looking back at the spot chip market over the past six months, it went through three phases:
October Incident Outbreak: Demand exploded, prices skyrocketed, market sentiment was extremely bullish.
Post-November Cooling: Amid viral fake news, saturated stocking demand and advancing alternative solutions, market sentiment cooled and turned wait-and-see.
Late November Onward: Market sentiment recovered slightly after the Netherlands suspended the ministerial order, yet transaction performance diverged. Sellers with premium stable supplies continued trading, while pure speculative middlemen saw nearly no business. Since then, market attention on Nexperia has gradually faded.
02 What Lies Hidden in the Financial Reports
All the above events are ultimately reflected in Wingtech’s financial statements. The release of Wingtech’s 2025 annual report and 2026 Q1 report laid bare the company’s real predicament amid its current loss of control.For the full year 2025, Wingtech Technology recorded operating revenue of 31.253 billion yuan, a year-on-year drop of 57.54%.
Revenue from Product Integration (ODM) business fell from 58.431 billion yuan to 17.574 billion yuan, a result of active divestment and successive asset sales to Luxshare Precision.
Semiconductor business revenue reached 13.616 billion yuan, down 7.47% year-on-year.
The full-year figure appeared relatively stable, but quarterly breakdown tells a different story:The semiconductor business posted revenue of 3.711 billion yuan, 4.114 billion yuan and 4.3 billion yuan in Q1–Q3 respectively, climbing quarter by quarter and hitting an all-time single-quarter high in Q3. However, revenue plummeted to 1.491 billion yuan in Q4, less than one-third of Q3’s performance.The impact of the Nexperia turmoil became even more pronounced in Q1 2026, with Wingtech’s semiconductor business revenue slumping to only 808 million yuan for the quarter. The company’s overall Q1 operating revenue stood at 816 million yuan, down 93.77% year-on-year; net profit attributable to parent company recorded a loss of 189 million yuan, reversing from a profit of 261 million yuan in the same period last year.(Image)Source: China Securities JournalIn the Q1 financial report, Wingtech stated that overseas direct wafer supply for its transistor product line (including ESD/TVS protection devices) remains disrupted, with deliveries mainly relying on inventory digestion. This product line accounts for about 53.7% of semiconductor business revenue.MOSFET shipments maintained steady growth thanks to capacity ramp-up at Nexperia’s Dongguan packaging and testing factory, taking up around 39.6% of revenue. Analog and logic ICs account for the remaining 6.7%.On profitability: Wingtech’s 2025 net profit attributable to parent company was a loss of 8.748 billion yuan, with losses widening year-on-year. The main cause was a massive loss of 8.948 billion yuan from fair value remeasurement when overseas Nexperia equity was reclassified as other equity instrument investments.Nevertheless, non-recurring loss-adjusted net profit stood at -316 million yuan, a sharp improvement from the -3.242 billion yuan loss in 2024, indicating eased operational pressure on the company’s core businesses.In short, operationally speaking, Wingtech’s core business pressure actually eased in 2025: the long-dragging ODM business was gradually divested off-balance sheet, while the semiconductor business maintained growth in the first three quarters.The financial report pointed out two core causes of the huge annual loss:
Large-scale business contraction from successive divestment of Product Integration business affected by the Entity List.
Restricted control over overseas Nexperia entities starting October 2025, which were no longer consolidated into financial statements. Fair value remeasurement of relevant equity triggered an investment loss of 8.948 billion yuan, becoming the major profit drag. Meanwhile, asset impairment provisions on three real estate properties due to low utilization further expanded losses.
03 Conclusion
As of April 29 (the release date of the Q1 report), Wingtech has achieved a closed-loop domestic supply chain in China for MOSFETs, logic ICs and other products. It is also comprehensively upgrading transistor products (including ESD/TVS protection devices) to 12-inch process platforms, with capacity supply set to gradually release in the second half of 2026.For the ODM business, all divested assets have completed delivery and transfer except for the Indian business package (disputes over which have been submitted to arbitration at the Singapore International Arbitration Centre by Luxshare).However, the core issue remains unresolved: there is still no clear timeline for the lifting of interim measures by the Dutch Enterprise Court and the restoration of Wingtech’s control over overseas Nexperia operations. The industry is still waiting for the final outcome of the Nexperia crisis.
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