Following turbulence in its core semiconductor business, Wingtech Technology Co., Ltd. (600745) has encountered another setback in a major asset sale.
Recently, both Wingtech Technology and Luxshare Precision Industry Co., Ltd. (002475) issued announcements confirming that they have formally entered arbitration proceedings due to a dispute over the transfer of Wingtech's Indian business asset package.
The former transaction partners are now facing off in a legal dispute.
On the evening of January 13, Luxshare Precision announced that due to restrictions such as seizures and freezes on the assets related to Wingtech India, which prevented the completion of ownership transfer procedures, the transaction had not finalized the asset ownership handover. As these obstacles were caused by the counterparty, the contractual purpose of the Indian Asset Transfer Agreement could no longer be fulfilled.
The announcement disclosed that Luxshare Precision's wholly-owned subsidiary, Luxshare Lanto India Private Limited, has filed an arbitration application with the Singapore International Arbitration Centre. It requests a ruling to terminate the Indian Asset Transfer Agreement and demands that Wingtech India refund the paid consideration and related expenses totaling 1.977 billion Indian Rupees (approximately 153 million RMB), plus corresponding interest.
However, in an announcement released on the evening of January 12, Wingtech Technology presented a completely different account. The company stated that, except for the Indian land which still required cooperation to complete formalities, the relevant business asset package had already been transferred. Wingtech Technology stated it had repeatedly urged Luxshare Lanto to pay the remaining transaction consideration of approximately 160 million RMB, but the payment was overdue, and on December 16, 2025, the counterparty unilaterally sent a letter claiming termination of the agreement. Wingtech Technology clearly stated it would file a counterclaim, demanding the other party continue performance and compensate for losses.
It is noteworthy that Wingtech Technology had previously disclosed in relevant announcements that the transaction counterparty had not yet paid the final installment for the Indian asset transaction.
In two major asset sale progress announcements released in November and December 2025, the company indicated that the counterparty had not paid this 160 million RMB amount and stated it would continue active communication.
However, prior to this arbitration announcement, neither Luxshare Precision nor Wingtech Technology had indicated any risk of termination regarding the transfer of Wingtech's Indian assets.
Luxshare Precision's last progress announcement on this transaction was in October 2025, stating that procedures for transferring partial ownership of Wingtech India's business asset package were still being processed, while the substantial equity transfer for Wingtech Hong Kong and Wingtech Indonesia was completed on September 16, 2025, and had been included in the company's consolidated financial statements.
In its December 2025 progress announcement, Wingtech Technology also stated that the business asset package related to Wingtech India had been transferred, with only the Indian land requiring the counterparty's cooperation to complete the ownership change, and all other target assets had completed ownership registration.
The root of this dispute can be traced back to March 2025.
At that time, as part of a strategic adjustment after being added to the U.S. Department of Commerce's "Entity List," Wingtech Technology initiated a large-scale asset divestiture plan, intending to sell equity in multiple subsidiaries in Kunming, Huangshi, Shenzhen, and elsewhere, as well as the business asset packages of Wingtech Wuxi and Wingtech India, to Luxshare Precision and its subsidiaries.
According to Wingtech Technology's major asset sale plan, the company intended to transfer the entire equity of five subsidiaries and the business asset packages of Wingtech Wuxi, Wuxi Wenxun, and Wingtech India to Luxshare Precision and its subsidiary Luxshare Communications via a cash transaction.
According to announcements from both parties, aside from the Indian assets, all other target assets have completed ownership change registration procedures.
Financial report data shows this divestiture has significantly impacted Wingtech Technology's revenue structure. In 2023 and 2024, revenue from its product integration business accounted for 72.39% and 79.39% of total revenue, respectively. However, by the third quarter of 2025, revenue from this business plummeted to 110 million RMB, accounting for only 2.50% of total revenue.
Concurrently, Wingtech Technology is fully committing to its semiconductor business. In the third quarter of 2025, its semiconductor business revenue reached 4.3 billion RMB, a year-on-year increase of 12.20%, and its share of total revenue surged to 97.13%.
Notably, just as Wingtech Technology attempts to raise funds through asset sales to focus on semiconductors, its core semiconductor subsidiary, Nexperia, faced dual control measures from Dutch official bodies and courts in October 2025, temporarily suspending Wingtech's control over it. Wingtech Technology admitted in its third-quarter report that if control over Nexperia cannot be restored before the end of 2025, the company may face risks of phased declines in revenue, profit, and cash flow.
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