19.5 Billion Transaction Faces Hurdle as Wenet Technology Faces Obstacle in India Business Arbitration

On March 10, 2026, Wingtech Technology Co., Ltd. (stock code: 600745) issued an announcement regarding the progress of a significant asset sale, disclosing the latest developments in the company's transfer of the target assets to entities related to Luxshare Precision. According to the announcement, the RMB 19.5 billion asset transfer transaction, after nearly a year of advancement, has been substantially completed. Except for the asset package related to Wingtech India, which remains pending due to arbitration, all other target assets have completed ownership transfer registrations and are free from any arbitration or litigation disputes.

I. Transaction Nears Completion: Most Assets Successfully Transferred, Except for the India Business Segment

Tracing back to the full picture of the transaction, this asset transfer case, which has attracted significant market attention, began in 2025, with Wingtech Technology transferring part of its ODM-related assets to Luxshare Precision (002475.SZ) and its subsidiaries. According to the announcement and the transaction details disclosed by Wingtech Technology in May 2025, the transfer targets are divided into two major categories: the first is 100% equity of five subsidiaries, including Kunming Wenxun Industry, Huangshi Zhitong Electronics, Kunming Zhitong Electronics, Wingtech Technology (Shenzhen), and Wingtech Group (Hong Kong) Limited (including PT Wingtech Indonesia); the second is the business asset package of three subsidiaries, covering the related business assets of Wingtech Technology (Wuxi), Wuxi Wenxun Electronics, and Wingtech India. The transaction method is cash, and the final transaction price is determined to be 19.5 billion yuan. This proposal has been comprehensively reviewed and approved by the board of directors, the supervisory board, and the shareholders' meeting of Wingtech Technology, demonstrating its full compliance.

From the perspective of current delivery progress, the overall transaction is proceeding as expected, with the India business asset package being the only lagging component. Specifically, among the equity-based assets, the equity transfer of all four companies has been completed, except for Shenzhen Wenyao Electronics Technology Co., Ltd., whose equity is subject to a pledge and is currently undergoing pledge release procedures, with the industrial and commercial registration change not yet finalized. Regarding the business asset packages, the assets of Wuxi Wenxun and Wuxi Wentai have been successfully delivered, whereas the India Wentai business asset package remains mired in an arbitration deadlock.
It is understood that in order to promote the transaction of India's business asset package, India Wintek, a subsidiary of WinTeck Technology, has signed an "Asset Transfer Agreement" with Lianxun Liantao, a subsidiary of Luxshare Precision. However, during the performance of the agreement, a dispute arose between the two parties, and Lianxun Liantao has submitted the dispute to the Singapore International Arbitration Centre (SIAC) to initiate an arbitration process. As of the date of the announcement, this arbitration has not yet started a hearing and is still in the phase of forming the arbitral tribunal. WinTeck Technology has initiated a legal response procedure and is actively preparing relevant documents to safeguard its rights and interests.

It is worth noting that the complexity of this arbitration far exceeds that of ordinary commercial disputes, with its core difficulties lying in the application of cross-border laws and the intersecting influences of administrative procedures across multiple jurisdictions. Wintech stated in its announcement that due to the complex background of the dispute, which involves cross-border legal issues, the final arbitration result and liability determination remain uncertain, and it is currently impossible to accurately estimate the specific financial impact on the company. Combined with the information disclosed in the market in January 2026, an informed source revealed that the relevant assets of Wintech in India have been seized and frozen, which may be one of the core reasons for the dispute between the parties, further increasing the uncertainty of the arbitration decision and the difficulty of settlement. For investors, this uncertainty represents potential risks, and Wintech has repeatedly warned in its announcements that, given the complex cross-border legal issues involved in the arbitration case, both the trial period and the final result are uncertain, and investors are advised to make cautious decisions.

II. Giants Calculating Their Own Accounts: WingtechPassing the buckFocus on semiconductors, LuxshareAddress WeaknessesExpand territory

This asset transaction and subsequent arbitration reflect the diametrically different strategies of WenTai Technology and Luxshare Precision, two leading A-share electronics companies, essentially a mutual journey of "cutting off and letting go" versus "strengthening and supplementing the supply chain."

For Wingtech Technology, the divestiture of its ODM assets represents a critical step in its strategic focus on semiconductors and an inevitable move to address structural business imbalances and transition toward higher-value-added segments. Reviewing the company's 2025 financial results, its business performance showed clear divergence throughout the year: in the first three quarters of 2025, the company reported total assets of RMB 54.382 billion, net profit attributable to shareholders of RMB 1.513 billion, basic earnings per share of RMB 1.22, and net cash flow from operating activities of RMB 5.422 billion, reflecting a significant improvement in overall profitability compared to 2024—driven notably by its semiconductor business.

Since acquiring NEXperia and entering the power semiconductor sector, the semiconductor business has become the core source of Wingtech Technology's profits. Especially in March 2026, NEXperia China announced that it had achieved small-scale production of bipolar discrete devices based on its self-developed 12-inch platform, successfully breaking through the wafer supply restrictions imposed by its Dutch headquarters, further consolidating Wingtech Technology's competitiveness in the semiconductor field. After being cut off from supply, NEXperia China quickly established deep cooperation with domestic wafer foundries such as Dingtai Artisan and Shanghai Jitasa Semiconductor. Since resuming shipments in October 2025, it has delivered over 11 billion chips to more than 800 customers, demonstrating strong resilience.

In stark contrast, the ODM business has shown weak growth due to factors such as industry cyclicality and low gross margins, creating a clear divergence from the high-growth semiconductor segment. According to 2025 industry data, although the global smartphone ODM sector continues to grow—accounting for 43% of total global shipments—it remains highly competitive, dominated by a "three-way rivalry" among Huaqin Technology, Longcheer Technology, and Wingtech Technology. Intense homogenized competition has continually pressured ODM companies’ gross margins. Against this backdrop, Wingtech Technology’s divestiture of its ODM assets not only generates substantial cash inflows and reduces management complexity but also enables the company to concentrate resources on R&D and expansion in the semiconductor segment, accelerating its strategic shift toward the high-value-added IDM (Integrated Device Manufacturer) model, aligning with its long-term development strategy.

For Luxshare Precision, taking over the ODM assets of WenTai Technology is a continuation of its "horizontal integration and vertical expansion" strategy, and an important step in perfecting its "components-module-assembly" integrated layout. As a core company in Apple's supply chain, Luxshare Precision has continuously expanded its business footprint through acquisitions in recent years. According to the 2025 annual report, the company achieved a revenue of 124.503 billion yuan in the first half of the year, an increase of 20.18% year-on-year, and a net profit attributable to shareholders of 6.644 billion yuan, up 23.13% year-on-year. The performance remains stable. Among them, the automotive business has become a growth highlight, with products such as high-voltage wiring harnesses and automotive connectors continuously performing well, while the vertical integration in the consumer electronics field is also continuously deepening.

The acquisition of Wingtech’s ODM assets represents significant value for Luxshare Precision: First, it enables Luxshare to rapidly acquire Wingtech’s mature production capacity in Kunming, Huangshi, and other locations, as well as core customer resources—including Samsung, OPPO, and Xiaomi—greatly shortening its time-to-market for establishing a presence in the Android ODM sector. Second, it allows Luxshare to absorb Wingtech’s ODM R&D team, addressing its own shortcomings in Android terminal design and manufacturing and enhancing its competitiveness in the ODM market. As of October 2025, following the acquisition, Luxshare Precision has incorporated Hong Kong Wingtech and Indonesia Wingtech into its consolidated financial statements. However, due to ongoing integration efforts, Luxshare ranked fourth in the ODM industry during the first half of 2025, trailing behind leading players Huaqin Technology, Longcheer Technology, and Tianlong Mobile. Upon completion of the acquisition, Luxshare Precision is expected to leverage its robust financial strength and extensive management experience from the Apple supply chain to challenge existing ODM leaders and further elevate industry concentration.

III. Major Players Calculate Their Own Accounts: WingtechShedding burdensFocus on semiconductors, LuxshareAddress weaknessesExpand territory

From an industry perspective, this 19.5 billion yuan asset transaction, as well as the subsequent arbitration events, will have a profound impact on the electronics industry landscape. In the ODM sector, Wingtech Technology's strategic exit and Luxshare Precision's strong entry will disrupt the existing "triple dominance" landscape, propelling the industry into a new round of consolidation.

As Luxshare Precision continues to invest and integrate, the scale effect of the ODM industry will become more prominent, and the survival space for small and medium-sized manufacturers will be further squeezed, with the industry concentration expected to continue to rise. At the same time, as the cost pressures on smartphone manufacturers increase, the outsourcing ratio of ODM will continue to grow. According to GuanYan Tianxia data, it is predicted that the global ODM/IDH model shipment for smartphones will reach around 650 million units in 2025, with a penetration rate of 42%, still leaving significant room for growth. This also provides a broad market for the development of Luxshare Precision's ODM business.

In the semiconductor field, Wingtech Technology will be provided with sufficient financial support for the expansion of its semiconductor business through the cash injection from the sale of ODM assets. Currently, the trends of electrification and intelligence in the automotive industry are accelerating, and the demand for automotive-grade semiconductors is robust. Nexperia's automotive-grade products have already passed AEC-Q101 certification, giving them strong market competitiveness. Wingtech Technology is well-positioned to take advantage of this momentum to achieve a leap in its semiconductor business. Meanwhile, the breakthrough in 12-inch wafer technology by Nexperia China will further enhance its voice in the global discrete semiconductor market, aiding Wingtech Technology in its transformation from a "consumer electronics giant" to a "semiconductor leader."

Returning to the arbitration case itself, the final award will serve as a key variable affecting the short-term development of both companies. If the arbitration ruling favors Wingtech Technology, the smooth completion of the handover of the India business asset package will mark the successful conclusion of this major asset sale, enabling Wingtech Technology to fully divest its ODM business and concentrate entirely on the semiconductor sector. Conversely, an unfavorable ruling could result in the failure to complete the handover of the India business asset package, not only undermining the company’s cash recovery plan but also potentially triggering subsequent legal disputes and financial repercussions. Moreover, cross-border arbitration proceedings typically entail lengthy timelines, expected to last several months or even longer; during this period, the stock prices and market expectations of both companies may also be affected.

Editor: Lily

Sources: GuanYan Tianxia, Moqie Zhijia, Wind, etc.