Select Language:
Shares of Wingtech Technology hit their daily trading limit after the Chinese company filed a lawsuit in China against its Dutch chipmaking subsidiary, Nexperia, and five related entities. The lawsuit seeks damages of approximately 8 billion yuan (roughly $1.2 billion) and aims to regain control over the unit.
On the day of the announcement, Wingtech closed up by 5% at 17.01 yuan ($2.52) per share, while the overall Shanghai stock market gained 1%. Due to restrictions imposed by the Dutch government on Wingtech’s control over Nexperia, an audit couldn’t verify the company’s overseas assets or the scope of its consolidated financial statements. As a result, a trading suspension known as Special Treatment was applied to its stock starting May 6, highlighting risks of delisting and limiting the stock’s daily fluctuation to 5%.
The company filed a lawsuit at the Dongguan Intermediate People’s Court in Guangdong Province over a dispute related to infringement liability against Nexperia, its Chief Legal Officer Ruben Lichtenberg, Chief Operating Officer Achim Kempe, Chief Financial Officer Stefan Tilger, and two affiliate firms. The court has accepted the case.
Wingtech asserts that the defendants’ discriminatory actions have caused significant and irreparable losses. The company is asking the court to order compensation in accordance with China’s Anti-Foreign Sanctions Law and other relevant regulations.
Since early October, following Dutch government intervention in Nexperia’s operations, Wingtech’s stock has plummeted approximately 63%, shrinking its market value by about 36.7 billion yuan (roughly $5.4 billion).
The company also requests that the court order the defendants to immediately stop executing or assisting with discriminatory restrictive measures. This includes withdrawing any local judicial litigation in the Netherlands and canceling a ministerial order issued by the Dutch Ministry of Economic Affairs and Climate last September under the Goods Availability Act.
If the defendants refuse to comply, Wingtech has asked the court to transfer ownership of Nexperia and its subsidiaries back to it unconditionally.
Wingtech is committed to using all legal avenues to restore full control over Nexperia and safeguard the interests of its investors.
The company acquired Nexperia in 2018 for over 30 billion yuan ($4.4 billion) to strengthen its semiconductor portfolio. However, in late September, Dutch authorities issued a ministerial order, and the Dutch Enterprise Court implemented emergency measures restricting Wingtech’s control. Although the Dutch government later suspended the order, the court’s ruling remains in effect.
Wingtech has criticized the Dutch government for what it calls an “excessive intervention” driven by geopolitical bias, accusing it of imposing a global operational freeze on Nexperia under the pretext of national security.
Last year, Wingtech reported a net loss exceeding 8.7 billion yuan ($1.3 billion), primarily due to restricted control over Nexperia, which resulted in substantial investment and asset impairment losses, according to its financial statement released at the end of the previous month.
ChatGPT
Perplexity
Gemini AI
Grok AI
