Auditors can't verify 57% of Wingtech's assets because they lack access to Nexperia's financial records.
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The auditor, RSM, issued a disclaimer of opinion on the annual accounts because Nexperia represents roughly 57% of Wingtech's total assets, and RSM has been unable to access its financial data. Wingtech’s loss tripled from 2.8 billion yuan in 2024, with nearly all of the damage coming from Wingtech writing Nexperia's value down to 24.38 billion yuan ($3.43 billion) after reclassifying the subsidiary as no longer under its control.
According to a filing to the Shanghai bourse on Wednesday, Wingtech's stock will carry a delisting risk warning starting May 6th. Trading will halt if the share price fluctuates more than 5%, and the company could be forced off the exchange entirely if the audit issues are not resolved by the end of 2026, the Post reported.
You may like Nexperia China claims to be making chips using 12-inch wafers China warns of fresh chip shortage as Nexperia dispute escalates again – Dutch headquarters allegedly locked Chinese staff out of IT systems US blocks China's largest LED chipmaker's $239 million bid to acquire Dutch lighting firm Lumileds Nexperia also told Reuters on Thursday that it had provided support to Wingtech's auditors over recent months. "It is not our intention to harm the interests of Wingtech's shareholders," the company said in a statement. Nexperia also said Wingtech has not agreed to talks on a resolution.
The audit failure is the latest in a series of fractures between the two companies. The Dutch government first intervened in September under the Goods Availability Act , citing national security concerns over potential technology transfers to China. A Dutch court then suspended Wingtech founder Zhang Xuezheng as Nexperia's CEO in October and placed Wingtech's voting rights under an independent administrator. Nexperia has operated independently of its Chinese parent since. Zhang stepped down as Wingtech's chairman in January 2025, before the dispute began, but it has been reported that he continues to control the company.
In March, Nexperia's Dutch headquarters disabled IT accounts for all employees at its Chinese operations, cutting off access to internal systems, including Office 365 and SAP, thereby severing the data pipeline needed for Wingtech's annual audit. Wingtech told the Shanghai exchange that it’s still working to restore its internal management system and regain access to Nexperia China's data.
All this has erased what had been a strong year for Wingtech before the dispute began. Through the first three quarters of 2025, Wingtech posted a cumulative net profit of 1.5 billion yuan, and the company said in the filing that it’s pursuing legal remedies and accelerating development of a domestic supply chain to maintain deliveries to customers.
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Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/wingtech-posts-1-3-billion-loss-and-faces-shanghai-delisting-as-nexperia-audit-collapses#main
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