Wearing a star and a hat with four consecutive limit-downs: 8.7 billion yuan huge loss *ST Wentai faces delisting cliff

How does AI · International sanctions trigger Wentei’s chain crisis?

*ST Wentei’s stock has hit the daily limit down for four consecutive trading days after being labeled with a warning.

On May 9, *ST Wentei reported a price of 24.10 yuan per share, with a total market value of 30B yuan, shrinking over 130 billion yuan since the end of 2021. The announcement shows that *ST Wentei’s stock price on May 6, May 7, and May 8 deviated from the previous close by more than 12% cumulatively over three consecutive trading days.

Because Container Cheng Certified Public Accountants issued an unqualified opinion on the company’s 2025 financial accounting report and internal control audit report, on May 6, Wentei Technology was subject to delisting risk warning combined with other risk warnings.

From 2018 to 2020, Wentei Technology spent over 30 billion yuan to acquire 100% equity of Anshi Semiconductor. After completing the acquisition in 2020, the company’s market value once exceeded 210 billion yuan. Due to US sanctions and Dutch intervention, by October 2025, Wentei Technology fell into a “loss of control” crisis involving Anshi’s offshore related entities.

This “loss of control” crisis also plunged the company’s financial situation into a quagmire. Financial reports show that *ST Wentei’s net loss in 2025 was 8.75B yuan. In the first quarter of this year, the net profit attributable to the parent turned from profit to loss, decreasing by over 172% to -189M yuan.

What will happen to *ST Wentei on the brink of delisting?

*ST Wentei’s stock hit the daily limit down for four consecutive trading days on May 6, 7, 8, and 9, 2026.

Aiming to “remove the warning” this year? Continued losses in the first quarter

“Currently, the company’s overall operations have stabilized. The management team will make every effort to promote relevant rectification work, eliminate audit restrictions as soon as possible, strive to obtain a standard unqualified financial and internal control report in the 2026 audit, and achieve the removal of delisting risk warnings and other risk warnings, effectively safeguarding the interests of all shareholders.”

On May 6, *ST Wentei disclosed in an investor relations activity record that the new information system has started operation, internal control is gradually restoring, and the company will no longer consolidate Anshi’s offshore financial data in 2026. All necessary historical data for Anshi’s domestic operations have been fully imported into the new system.

In fact, due to restrictions on offshore control of Anshi, from October 2025, it was no longer included in the consolidated scope of *ST Wentei. According to disclosures, in 2025, *ST Wentei achieved revenue of 31.25B yuan, down 57.54% year-on-year, with a net loss of 8.75B yuan, and a non-recurring net profit of -316 million yuan.

The company has successively divested its product integration business in 2025, with related revenue dropping from 58.43B yuan in 2024 to 17.57B yuan in 2025, a significant scale reduction. The proportion of total operating income decreased from 79.39% in 2024 to 56.23% in 2025.

Financial reports show that *ST Wentei’s product integration business revenue in 2025 was 17.52B yuan, down nearly 70% year-on-year, while semiconductor business revenue was 13.62B yuan, down 7.47%. However, in terms of gross profit margin, the gross margin of the product integration business was only 2.92%, while the higher-margin semiconductor business saw smaller fluctuations.

Restrictions on offshore control of Anshi Semiconductor persisted into the first quarter of 2026. In Q1 2026, *ST Wentei’s semiconductor capacity utilization rate declined, and production and sales scales decreased compared to the same period last year. During the reporting period, the company’s semiconductor revenue was 800.8 million yuan, with a gross profit margin of 27.42%, and a net profit of 13 million yuan.

The temporary decline in gross margin was mainly due to incomplete recovery of production and sales, low capacity utilization, combined with increased fixed costs such as depreciation of fixed assets, salaries of core personnel, etc., representing normal fluctuations in operating scale.

During this period, domestic main business operating cash flow was 396 million yuan, with stable cash flow and manageable overall financial risk.

From the perspective of products and capacity, although affected by restrictions on offshore control of Anshi, the transistor product line (including protection devices like ESD/TVS) still experienced interruption in offshore wafer direct supply in the first quarter. The company mainly relies on digesting previous inventory to ensure delivery, with such products accounting for about 53.7% of semiconductor business revenue.

However, MOSFET products, relying on capacity ramp-up at Anshi’s Dongguan packaging and testing plant, have achieved steady shipment growth, accounting for about 39.6% of semiconductor business revenue.

How to “self-rescue” amid the crisis? Capacity shift to domestic release in the second half of the year

Founded in 2006 by Zhang Xuezheng, Wentei Technology. In 2008, Wentei Technology ranked first in China’s mobile IDH rankings (iSuppli), becoming China’s first mobile ODM company. In 2017, the company went public via a backdoor listing of Zhongyin Shares, renamed Wentei Technology, with Zhang Xuezheng as the actual controller.

In 2018, Wentei Technology launched a “snake swallowing an elephant” acquisition of European chip giant Anshi Semiconductor, becoming the largest semiconductor acquisition in A-shares. After completing the acquisition in 2020, the company’s market value once exceeded 210 billion yuan.

According to the 2025 annual report, Zhang Xuezheng previously served as chairman and CEO but has since stepped down. He remains the company’s actual controller, earning 5.7071 million yuan in 2025. As of the end of 2025, Zhang Xuezheng and Wentian Technology Group Co., Ltd. (hereinafter “Wentian”) held a combined 15.34% stake.

On April 30, *ST Wentei announced that Wentian and its concerted action persons Zhang Xuezheng, Zhang Qiuhong, and Zhang Danlin held a total of 191 million shares, accounting for 15.38% of the total share capital; among them, 191 million freely tradable shares without restrictions, also accounting for 15.38%.

After some shares were unpledged, Wentian and Zhang Xuezheng, Zhang Qiuhong, and Zhang Danlin pledged a total of 32.6 million shares, representing 17.03% of their total holdings and 2.62% of the company’s total share capital.

Disclosed that *ST Wentei stated in investor relations activities that in 2025, the profit from semiconductor business was 2.26 billion yuan, with a net loss of 316 million yuan after non-recurring items. The difference mainly stems from ODM business losses, operational losses, convertible bond interest expenses, Indian asset package losses, litigation intermediary fees, etc.

Additionally, in the first quarter of 2026, the semiconductor business recorded a profit of 13M yuan, while the listed company’s loss was 189M yuan. The main reasons for the difference include expenses related to convertible bonds, depreciation of real estate and land at the listed company level, personnel costs, litigation intermediary fees, exchange gains and losses, and other operating expenses.

Regarding capacity, *ST Wentei states that capacity has gradually been restored, with MOSFET and logic ICs now completing domestic production loops. R&D and pilot production of diodes, transistors, protection devices, and others are accelerating, expected to be released gradually in the second half of the year. Based on current operations, the company is confident that from the second quarter, business conditions will continue to improve.

To address the upcoming maturity of the company’s convertible bonds next year, *ST Wentei mentioned that within regulatory rules, the company will actively adopt measures conducive to promoting conversion, making every effort to facilitate more bond conversions and reduce concentrated repayment pressure.

As of the end of Q1 2026, *ST Wentei’s cash and cash equivalents plus trading financial assets totaled 4.6 billion yuan. *ST Wentei stated that as the offshore control of Anshi gradually resolves and domestic and foreign operations normalize, the company’s overall operations will continue to recover, with steady improvement in operating cash flow. The company will coordinate cash flow management, operational receivables, asset revitalization, and diversified funding arrangements to ensure smooth repayment of Wentei’s convertible bonds upon maturity, effectively safeguarding the legal rights of all investors.

Beijing News Shell Finance Reporter: Xu Yuting | Editor: Chen Li | Proofreader: Fu Chunyi