Shenzhen Wongtee International Enterprise Co Ltd

ST Wongtee announced that the Shenzhen Intermediate People's Court will publicly auction 175 million A-shares held by its shareholder Wongtee Industrial Control from October 29 to 30, accounting for 14.78% of the company's total share capital. If the auction is completed, the shareholding of Wongtee Industrial Control and its concert parties will drop from 26.08% to 11.30%, potentially affecting control of the company. Previously, the Shenzhen Wongtee Plaza, an asset under the company's wholly-owned subsidiary Rongfa Investment, was judicially ruled to be used to offset debts at 3.053 billion yuan. That asset contributed revenue of 369 million yuan in 2024, accounting for 56.03% of the company's operating revenue. The company has been subject to a delisting risk warning because its net assets were negative in 2025 and its financial report was issued with a disclaimer of opinion. From 2020 to 2025, the company accumulated losses exceeding 7 billion yuan, and in the first half of 2026, revenue fell 40.47% year on year, with a net loss attributable to the parent company of 272 million yuan.

Shenzhen Wongtee International Enterprise disclosed its earnings forecast, expecting a net loss attributable to shareholders of 250 million to 300 million yuan in the first half of 2026, compared with a loss of 185 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 280 million to 330 million yuan, compared with a loss of 194 million yuan a year earlier. The company stated that the core reasons for the increased loss include a reduction in net profit of approximately 142 million yuan from related businesses after the Shenzhen Wongtee Plaza was used to settle debts through judicial means, an increase in land appreciation tax of 180 million yuan, and a decrease in interest expenses of 133 million yuan, which together reduced net profit for the period by 189 million yuan compared with the same period last year. At the same time, the subsidiary Ruize Leasing recovered part of its finance lease receivables and recognized revenue of 71 million yuan, increasing net profit by 71 million yuan.