Wingtech Technology Co Ltd

The China Securities Regulatory Commission recently released its accounting supervision report on annual financial reports of listed companies for 2025. It shows that 214 listed companies that disclosed annual reports on time received non-standard audit opinions, including 87 with qualified opinions and 18 with disclaimers of opinion. According to Wind data, as of August 19, more than 160 A-share listed companies had been placed under ST or asterisk ST risk warnings this year, with over 140 added since the second quarter. They include former semiconductor leader with a market value of 100 billion yuan, now known as ST Wingtech, and the veteran ChiNext company ST Huayi. The triggers were mainly financial underperformance or loss of financial credibility. For example, ST Zhongshe was flagged because total profit, net profit, and net profit excluding non-recurring items were all negative, while revenue excluding non-recurring items failed to reach the 300 million yuan threshold. ST Weiling simultaneously triggered negative net assets at period end and a disclaimer of opinion on internal control auditing. Dozens of companies such as ST Jiaoang, ST Rebecca, and ST Guangtang were placed under risk warnings for financial fraud or distorted financial data. Regulatory compliance risks were also prominent. ST Xilinmen was flagged because the controlling shareholder's non-operating fund occupation and outstanding irregular guarantees each exceeded 5 percent of net assets, and internal control received an adverse opinion. ST Jinhongshun received an additional risk warning due to an adverse internal control opinion and non-operating fund occupation of 107 million yuan by actual controller Liu Xu. Regulators are accelerating the establishment of a normalized delisting framework. In April 2026, the Shanghai, Shenzhen, and Beijing stock exchanges revised trading rules, adjusting the daily price limit for risk-warning stocks on the Shanghai and Shenzhen main boards from 5 percent to 10 percent, effective July 6. The four major mandatory delisting standards covering financial, trading, regulatory compliance, and major illegal conduct categories have been comprehensively upgraded.

ST Wingtech has released its 2026 interim report, with net profit attributable to the parent company swinging from profit to loss. As of June 30, 2026, the company's total operating revenue was 1.514 billion yuan, a decrease of 23.827 billion yuan from the same period last year, down 94.02% year-on-year. Net profit attributable to the parent company was negative 406 million yuan, a decrease of 880 million yuan from the same period last year, down 185.74% year-on-year. Net cash flow from operating activities was negative 154 million yuan, a decrease of 4.415 billion yuan from the same period last year, down 103.62% year-on-year. The company's latest asset-liability ratio was 39.08%, a decrease of 7.74 percentage points from the same period last year. Gross margin was 25.73%, an increase of 11.97 percentage points from the same period last year, marking two consecutive years of growth.

Dutch Trade Minister Reinette Klever met with Commerce Minister Wang Wentao in Beijing and said the two countries are cooperating in an extremely good manner on issues surrounding semiconductor maker Nexperia. This is the first visit by a Dutch trade minister to China since 2018, scheduled for three days. Nexperia is a subsidiary of China's Wingtech Technology, but since Dutch authorities intervened in late 2025 over national security concerns, a conflict over management rights and governance with the parent company has continued. Klever stressed that a sustainable solution based on agreement between the European and Chinese divisions is needed.