Affected by the control restrictions of Anshi Semiconductor, Wingtech Technology is expected to incur a loss of 9 billion to 13.5 billion in 2025 | Financial Report Insights

Wingtech Technology expects to record a maximum loss of RMB 13.5 billion in 2025, primarily due to significant asset impairment impacts caused by restrictions on the control of its core European subsidiary, Nexperia. According to the performance forecast disclosed by the company on January 31, the net profit attributable to the parent company is expected to be between -9 billion and -13.5 billion yuan in 2025. This forecasted loss amount is an increase compared to the loss of 2.833 billion yuan in the same period of 2024. Excluding non-recurring gains and losses, the company expects a net profit loss of 200 million to 300 million yuan, indicating that the anticipated loss mainly stems from one-time accounting adjustments rather than from the operational level of its main business. The core reason for the expanded loss is the regulatory changes occurring in the fourth quarter of 2025. According to Global Network reported last November, Dutch officials stated that interventions on Nexperia have been suspended. On November 13, a spokesperson for China's Ministry of Commerce stated that since the issues with Nexperia arose, China has maintained a responsible attitude towards the stability and security of the global semiconductor supply chain and has engaged in multiple rounds of consultations with the Dutch side, agreeing to the request for Dutch Ministry of Economic Affairs representatives to come to China for discussions. We hope the Dutch side will demonstrate a sincere willingness to cooperate with China, propose substantive and constructive solutions to the problems as soon as possible, and take practical actions to quickly and effectively restore the safety and stability of the global semiconductor supply chain from the source. Wingtech Technology stated in the report that as of the end of the reporting period, although the ministerial order from the Dutch Ministry of Economic Affairs and Climate Policy has been suspended, the ruling of the Amsterdam Court of Appeal's corporate court remains in effect. The impact of the restrictions on control of Nexperia on the financial statements carries significant uncertainty, and the results of communications with relevant parties in the Netherlands remain unclear. Based on the principle of prudence, the company has decided to recognize significant amounts of investment losses and asset impairment losses. The company stated that due to the significant uncertainty of the series of impacts caused by the restrictions on control of Nexperia, although the company has made reasonable estimates of the impact of this factor on the financial statements as much as possible, there may still be situations where the performance forecast is not accurate enough or exceeds expectations. Currently, the company is maintaining communication with relevant parties in the Netherlands, but the progress and final results of the communication remain uncertain. Investors need to closely monitor the subsequent formal disclosure of the 2025 annual report