Wingtech faces delisting risk after audit failure in wake of Nexperia saga

Wingtech Technology, the Chinese owner of chipmaker Nexperia, is facing the risk of delisting from the Shanghai Stock Exchange due to an audit failure, as the company remains embroiled in a power struggle for control of its Dutch subsidiary. The risk was triggered after Wingtech’s auditor issued a “disclaimer of opinion”, citing restrictions in verifying the financial records of Nexperia’s overseas operations, according to a company filing to the Shanghai bourse on Wednesday. The audit failure comes after disruptions in Wingtech’s operations in March when Nexperia’s China unit accused the Dutch headquarters of “mass disabling” the office accounts of all employees in China. In the Wednesday filing, Wingtech said it was working to restore its internal management system and gain full access to Nexperia China’s data to solve the audit issues. Wingtech’s stock will be subject to a delisting risk warning starting May 6, after which trading will halt if the price fluctuates more than 5 per cent, according to the latest filing. The company could be forced to delist from the exchange if the issues are not resolved by the end of 2026. The company’s stock and convertible bonds were also suspended from trading for one day on Thursday. Shenzhen-based Wingtech is embroiled in a dispute for the control of Nexperia, which the Dutch government took over in September 2025. Nexperia’s offshore entities were no longer operating under the directives of Wingtech, and had halted shipments of wafers to the Chinese unit, which impacted the continuity of production, Wingtech said in a separate filing on Wednesday. Wingtech’s control over Nexperia’s overseas entities remained “restricted”, the company said. “The company is actively pursuing legal remedies to protect its rights while simultaneously accelerating the development of its domestic supply chain,” Wingtech said in the filing. As part of its efforts to build a domestic supply chain, the company said it was upgrading its semiconductor production to 12-inch (300mm) wafers, with production capacity expected to be available in the second half of the year. The ongoing power struggle has impacted Wingtech’s financial performance. The firm reported a 94 per cent plunge in first-quarter revenue to 816 million yuan (US$119.3 million), after the offshore business was no longer consolidated in the financial results. It reported a net loss of 189 million yuan in the first quarter, swinging from a net profit of 261 million yuan in the same period a year ago. That followed an 8.7 billion yuan net loss for the full year of 2025, while annual revenues fell 58 per cent to 31 billion yuan.