Amid a geopolitical storm over its Dutch chip unit Nexperia, Wingtech Technology delivered stellar third-quarter earnings while warning of potential future disruptions.
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The impact of the power struggle at Nexperia, the biggest revenue earner for Wingtech, was “difficult to quantify precisely”, the Chinese company said in its filing to the Shanghai Stock Exchange outside trading hours on Friday evening.
“Should control over Nexperia fail to be restored by the end of 2025, the company may face the risk of a temporary reduction in revenue, profits and cash flow,” it warned.
The remarks came as the company, which has divested most of its other businesses to focus on semiconductors, posted a 280 per cent surge in net profit in the third quarter to 1 billion yuan (US$149 million), although revenue declined 77 per cent to 4.4 billion yuan.
It attributed the decrease in revenue to the drop in “product integration” – its other revenue pillar – after Wingtech was added to the US export control list in December. The company said another reason for the revenue decline was that it divested four subsidiaries in that business, “resulting in a further year-on-year decrease in revenue”.
Wingtech’s semiconductor operations posted revenue of 4.3 billion yuan in the quarter that ended September, accounting for 97 per cent of the total. Last month, the company’s management had assured shareholders of its commitment to the chip sector.
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