(Yicai) Feb. 3 -- Shares of Wingtech Technology plummeted after the Chinese chipmaker said it expects a net loss of up to CNY13.5 billion (USD1.9 billion) for last year, mainly because of the dispute over the control of its Dutch subsidiary Nexperia.

Wingtech [SHA: 600745] was trading down 4 percent at CNY34.03 (USD34.03) as of lunch break in Shanghai today, after earlier dropping as much as 9 percent. Yesterday, the stock plunged by the 10 percent exchange-imposed daily trading limit.

Wingtech’s net loss likely widened 221 percent to 382 percent to between CNY9 billion and CNY13.5 billion (USD1.3 billion to USD1.9 billion) in 2025 from the previous year, the Jiaxing-based company announced late on Jan. 31.

Control over Nexperia remains restricted, which has resulted in substantial investment losses and impairment asset losses, exerting a major negative impact on the firm’s financial performance, Wingtech noted.

On Sept. 30, the Dutch government issued a ministerial order on national security grounds curbing Wingtech’s governance rights, requiring Nexperia and its 30 global entities not to make any changes to their assets, intellectual property, business, or personnel for a year.

Before that, Wingtech had been profitable throughout the first three quarters of 2025. It reported a net profit of CNY1 billion (USD145.6 million) in the third quarter, with a cumulative net profit of CNY1.5 billion for the first three quarters.

Based on Wingtech’s annual earnings forecast, Yicai calculated that the company’s net loss in the fourth quarter alone was between CNY10.5 billion and CNY15 billion.

It is worth noting that Wingtech also cautioned that consequences arising from the restricted control over Nexperia are subject to material changes, so even though the company has made reasonable estimates of the impact of this dispute on its annual financial statement based on the principle of prudence, the earnings forecast may still be inaccurate, or other unexpected situations may arise.

Nexperia is a key semiconductor asset that Wingtech acquired for more than CNY30 billion (USD4.2 billion). Wingtech temporarily lost control over Nexperia, following a ministerial order issued on national security grounds by the Netherlands’ Ministry of Economic Affairs and Climate Policy on Sept. 30 and subsequent emergency measures imposed by the Dutch Enterprise Chamber on Oct. 7.

Although the Dutch government announced the suspension of the ministerial order in November, the ruling of the Enterprise Chamber remains in effect.

During Wingtech’s fifth extraordinary general meeting on Dec. 26, a source at the company told Yicai that if the shareholder control issue over Nexperia is not resolved in six months, the firm may seek international arbitration and claim damages of as much as USD8 billion.

Editors: Tang Shihua, Futura Costaglione