Six months after Anshi went out of control, Wingtech became a *ST stock.

01 Wingtech: These Six Months

It all started at the end of September last year.

On September 30, 2025, the Dutch Ministry of Economic Affairs and Climate Policy issued a ministerial decree to Nexperia, requiring that no adjustments be made to the assets, intellectual property, business operations, or personnel of Nexperia's 30 entities worldwide for a period of one year.

On October 7, the Dutch Enterprise Court formally ruled to suspend all functions of founder Zhang Xuezheng at Nexperia, and place 99% of Nexperia's shares under the custody of a designated third party, with the ruling to remain in effect until the completion of the investigation and a final judgment.

On October 9, Wingtech Technology issued a morning announcement stating that due to the existence of material undisclosed information, the company's shares and convertible bonds would be suspended from trading from the opening of trading on October 9, with the suspension expected to last no more than two trading days.

On October 13, Wingtech Technology resumed trading and fell 10% at the opening.

On October 14, the Nexperia website disclosed that China's Ministry of Commerce had issued an export control notice on October 4, prohibiting Nexperia China and its subcontractors from exporting specific finished components produced in China.

This news quickly triggered a chain reaction in the chip spot market. Demand for Nexperia's automotive-grade part numbers suddenly surged. In various chip trading chat groups, requests for purchases in tens of thousands or hundreds of thousands of units flooded in. Market quotations became chaotic, with prices of some popular models multiplying dozens of times within a few days. In actual transactions, cases with a tenfold price increase were also seen.

On November 1, China announced an exemption for eligible Nexperia semiconductor exports.

On November 2, Nexperia China officially confirmed that Nexperia Netherlands had stopped supplying wafers to its Dongguan assembly and testing factory as of October 26.

In early November, an article claiming that "China and the EU have reached an agreement and the Nexperia issue will soon be resolved" spread widely in chip industry circles. Some traders subsequently dumped their inventory, causing prices to retreat. The news was later confirmed to be false. Coupled with the fact that overseas customers' two rounds of earlier stockpiling had become saturated and the continued advancement of alternative substitution plans, the spot market for Nexperia chips began to cool overall from November onward, with market participants turning to a wait-and-see stance.

On November 19, the Dutch Minister of Economic Affairs announced the "suspension of the ministerial decree." That evening, Wingtech made an announcement clarifying that although the ministerial decree had been suspended, the judicial ruling issued by the Enterprise Court on October 7 remained fully in effect, and the control rights were still restricted.

From November to December, a series of statements were exchanged between Wingtech and Nexperia Netherlands. The Dutch Minister canceled a planned December visit to China, citing scheduling conflicts. China's Ministry of Commerce repeatedly applied diplomatic pressure through official channels, demanding the withdrawal of improper administrative and judicial interventions, but no substantial progress was made on the core issues.

On February 11, 2026, the Dutch Court of Appeal issued its latest ruling: approving the Dutch authorities' formal investigation application, maintaining all interim measures that had been in place since October 2025, with the duration of the investigation remaining uncertain. The state of restricted control rights became further entrenched. On the same day, the credit rating of Wingtech Technology's main entity and related bonds was downgraded.

On April 29, Wingtech Technology simultaneously released its 2025 annual report and its first-quarter 2026 report, followed by the *ST announcement.

Looking back at the chip spot market over these six months, it can be roughly divided into three stages: In October, during the event-driven period, demand surged, prices skyrocketed, and the market was extremely active. Starting in November, as false news spread, stockpiling demand became saturated, and alternative solutions advanced, market sentiment began to cool, with participants turning to a wait-and-see approach. After the Netherlands suspended the ministerial decree in late November, sentiment improved slightly, but transaction outcomes became polarized: those with advantageous supply continued to sell, while pure middlemen with no inventory basically had no business. Since then, the spotlight on Nexperia has gradually faded, and currently, market discussions about Nexperia are far less prominent than before.

02 What Is Hidden in the Financial Report?

All of the above eventually landed on Wingtech's financial statements. Recently, Wingtech Technology simultaneously released its 2025 annual report and its first-quarter 2026 report. Behind the numbers lies the true situation of the company under the current "out-of-control" circumstances.

For the full year of 2025, Wingtech Technology achieved revenue of RMB 31.253 billion, a year-on-year decrease of 57.54%. Within this, revenue from the product integration business (i.e., the ODM business) fell from RMB 58.431 billion to RMB 17.574 billion, as a result of active divestiture through successive sales to Luxshare Precision. The semiconductor business generated RMB 13.616 billion for the full year, a year-on-year decrease of 7.47%.

This figure appears relatively stable on its own, but a quarterly breakdown reveals a different picture: from Q1 to Q3, semiconductor revenue was RMB 3.711 billion, RMB 4.114 billion, and RMB 4.3 billion respectively, rising quarter by quarter, with Q3 reaching a record high for a single quarter. Then in Q4, it plummeted to RMB 1.491 billion, less than one-third of Q3's figure.

By the first quarter of 2026, Nexperia's impact became even more pronounced, with Wingtech's semiconductor business generating only RMB 808 million in quarterly revenue. The company's total revenue for the first quarter was RMB 816 million, a year-on-year decrease of 93.77%; the net profit attributable to parent company shareholders was negative RMB 189 million, compared to a profit of RMB 261 million in the same period of the previous year, marking a turnaround from profit to loss year-on-year.

                                                                                 Source: China Securities Journal

In the first-quarter financial report, Wingtech stated that wafer supply from overseas for its transistor product line (including ESD/TVS protection devices) remains interrupted, with deliveries relying mainly on depleting previously built-up inventory. This product line accounts for approximately 53.7% of semiconductor business revenue. For MOSFET products, leveraging the capacity ramp-up of Nexperia's Dongguan assembly and testing factory, shipment volumes have steadily increased, accounting for about 39.6% of revenue. Analog and logic IC products account for approximately 6.7% of revenue.

Turning to profits: The net profit attributable to parent company shareholders for 2025 was -RMB 8.748 billion, with losses further widening year-on-year. The main reason was a large loss of RMB 8.948 billion arising from the re-measurement at fair value when the overseas related equity interests in Nexperia were reclassified to other equity instrument investments.

However, the net profit after deducting non-recurring gains and losses was -RMB 316 million, a significant narrowing of the loss compared to -RMB 3.242 billion in 2024, reflecting a relief in the loss pressure at the operational level of the company's core business.

In other words, from an operational perspective, the pressure on Wingtech's core business actually eased in 2025. The ODM business, which had been a drag for years, was gradually deconsolidated, while the semiconductor business maintained growth for the first three quarters.

The financial report points out that the core reasons for the huge loss are twofold. First, during the year, the company successively divested its product integration business that had been affected by the entity list, resulting in a significant contraction in business scale. Second, since October 2025, control rights over Nexperia's overseas related entities have been restricted, and these entities are no longer included in the consolidation scope. The equity interests were remeasured at fair value, generating an investment loss of RMB 8.948 billion, which became the main black hole swallowing profits. Additionally, the company recognized impairment provisions on three of its real estate properties due to insufficient utilization, further deepening the loss.

03 Conclusion

As of April 29, when the first-quarter report was disclosed, Wingtech had already achieved a closed-loop supply chain within China for products such as MOSFETs and logic ICs, and was comprehensively advancing the upgrade of its transistor products (including protection devices like ESD/TVS) to 12-inch process platforms. Production capacity supply is expected to be gradually released in the second half of 2026.

Regarding the ODM business, except for the Indian operations asset package, which is in dispute and has been submitted by Luxshare LianTao to the Singapore International Arbitration Centre for arbitration, the remaining assets have been delivered.

However, for the most core issue—when the interim measures imposed by the Dutch Enterprise Court will be lifted and when control over Nexperia's overseas operations will be restored—there is still no clear timeline. The industry continues to wait for the direction Nexperia will take.