Prior to the May Day holiday, Wingtech Technology Co.,Ltd. (600745.SH) released its 2025 annual report, revealing a massive loss exceeding 8 billion yuan. On the same day, the company also announced it would be placed under special treatment (ST) due to its audit and internal control reports receiving disclaimers of opinion.
This outcome, while not entirely unexpected, is still disheartening. What was once considered a benchmark case of Sino-foreign technological cooperation has unfortunately become a negative example. The specific circumstances and the lessons to be learned from them are complex and perhaps best left uncommented on in detail. One can, however, feel a sense of frustration for Wingtech Technology, a commercial company caught in the crosscurrents of major power dynamics, with very limited control over its own fate. Instead, the focus here is on secondary market reactions and the "minor details" of brokerage research reports.
On October 13, 2025, after a week-long trading halt, Wingtech Technology publicly announced the loss of control over a subsidiary. Its stock price experienced extreme volatility, initially hitting two consecutive跌停s (down limits), followed by a rapid rebound that nearly recovered all losses. However, on November 12, 2025, it was disclosed that Gree Electric Appliances (000651.SZ), a shareholder with over 5% stake, had reduced its holdings following the crisis. From that point onward, Wingtech's stock price entered a persistent decline, dropping to around 28.12 yuan just before the May Day holiday, nearing its lowest point since the crisis began.
Typically, when a company faces a major internal control crisis, investment institutions, adhering to risk management standards, tend to adopt a cautious approach. Even if not immediately selling off all positions, a wait-and-see stance is common; speculative hot money, known for its volatility, is an exception. Similarly, shouldn't credit rating agencies also exercise caution? Shouldn't they also wait and observe, rather than hastily issuing buy recommendations?
In the case of Wingtech Technology, some brokerages indeed proceeded against the tide. A notable example is analysts Shu Di, Wang Meiyi, and Li Xuan from Guotai Haitong Securities Co., Ltd. (601211.SH), who issued a report in late October 2025. They emphasized that "Nexperia solidly maintains its leading position in the global power semiconductor market, with leading market share in key areas," and maintained an "Add" rating while raising the target price to 66.8 yuan.
The subsequent results are now clear. Nexperia, which Guotai Haitong Securities enthusiastically promoted as having a "leading market share in key areas," might still be a strong company, but its relationship with Wingtech Technology has become adversarial. Furthermore, the over 8 billion yuan loss in 2025 stands in stark contrast to the 1.873 billion yuan net profit attributable to shareholders projected in Guotai Haitong's report.
This raises questions for investors holding Wingtech Technology stock, particularly those who might have purchased shares around November 2025 based on Guotai Haitong Securities' report. Facing the reality of Wingtech's impending ST designation, will they blame Guotai Haitong Securities? And if confronted by these investors, some of whom may have suffered losses of around 40%, what should Guotai Haitong Securities reflect upon?
Comments