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Shares of the Chinese semiconductor manufacturer tumbled after it announced an expected net loss of up to 13.5 billion Chinese yuan (approximately $1.9 billion) for the past year, mainly due to ongoing disputes over control of its Dutch subsidiary.
The company’s stock traded down 4 percent to CNY34.03 (roughly $34.03) during midday trading in Shanghai today, after falling as much as 9 percent earlier. Yesterday, the stock hit the maximum daily decline limit of 10 percent.
The company projected a net loss that could range from CNY9 billion to CNY13.5 billion (around $1.3 billion to $1.9 billion), reflecting a staggering increase of 221 to 382 percent compared to the previous year, according to a statement released late on January 31.
Restricted control over Nexperia has led to significant investment losses and asset impairments, heavily impacting the company’s financial results. In late September, the Dutch government issued a national security order that limited the company’s governance rights over Nexperia, forbidding the Dutch subsidiary and its 30 international affiliates from making any changes to assets, intellectual property, operations, or staffing for a year.
Prior to these restrictions, the company reported solid profits, earning CNY1 billion ($145.6 million) in the third quarter and totaling CNY1.5 billion ($219 million) for the first three quarters of 2025. Based on the annual projections, the company estimates its fourth-quarter losses could reach between CNY10.5 billion and CNY15 billion.
The company also issued a warning that the impact of the control restrictions over Nexperia could change substantially, acknowledging that though they have made conservative estimates based on prudent principles, the actual financial results might differ, or unforeseen issues could arise.
Nexperia remains a crucial asset that the firm acquired for over CNY30 billion (around $4.2 billion). The company temporarily lost control following the Dutch government’s order on national security grounds issued at the end of September, with further emergency measures implemented by the Dutch Enterprise Chamber in early October.
Although the Dutch authorities announced the suspension of the initial order in November, the legal restrictions ordered by the Chamber remain in effect.
At a shareholders’ meeting held on December 26, a company representative revealed that if the dispute over Nexperia’s control isn’t resolved within six months, the company might pursue international arbitration and seek damages potentially reaching $8 billion.
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