Logos of Nexperia and its parent company Wingtech Technology File photo: VCG

A Chinese court has ordered the preservation of 2.14-billion-yuan worth of assets held by Nexperia B.V. and ITEC B.V. and frozen their stakes in several China-based companies, marking a substantive new step in Wingtech Technology's legal efforts to safeguard its interests and regain full control of Nexperia, Wingtech said in a filing to the Shanghai Stock Exchange on Tuesday.

The case has yet to go to trial, but the latest measures move the dispute beyond the filing of claims to court-ordered preservation of assets and equity interests. Wingtech said it would "exhaust all legal means" to restore full control of Nexperia and protect investors' interests, according to the filing.

In the filing, Wingtech said the Dongguan Intermediate People's Court in South China's Guangdong Province had issued an asset-preservation ruling in a tort liability dispute involving the company and its subsidiary Yuching Holding Limited as plaintiffs, and Nexperia Holding B.V., Nexperia B.V., ITEC B.V. and three individuals as defendants.

Acting on an asset-preservation application filed by Wingtech and Yuching Holding, the court ordered the seizure, impoundment or freezing of about 2.139-billion-yuan worth of assets held by Nexperia B.V. and ITEC B.V., with the ruling taking effect immediately.

Wingtech also said it received a court notice on Friday confirming that stakes held by Nexperia B.V. in four China-based subsidiaries had been frozen, including its 100-percent holdings in Nexperia Semiconductor (China), Nexperia Semiconductor (Wuxi) and Nexperia Semiconductor (Shanghai), and its 99-percent stake in Nexperia Semiconductor Technology (Shanghai). ITEC B.V.'s wholly owned stake in ITEC Technology (Wuxi) was also frozen.

The measures are the latest development in a lawsuit Wingtech brought in May after its control over Nexperia's overseas operations was restricted following intervention by Dutch authorities.

Wingtech said on May 22 that the Dongguan court had accepted its lawsuit against six defendants. According to a company filing, Wingtech alleged that the defendants had unlawfully implemented or assisted in implementing discriminatory restrictive measures imposed by the Dutch side, causing massive and irreparable economic losses. The company also sought joint compensation provisionally estimated at 8 billion yuan, along with measures to end the infringement and restore its control over Nexperia. 

The case has not yet gone to trial and its outcome remains uncertain. Wingtech said the impact on its financial position and current and future earnings therefore could not yet be determined, according to Tuesday’s filing.

"The company will continue to exhaust all legal means to restore its full control over Nexperia and safeguard investors' interests," Wingtech said.

In a separate filing released on Monday, Wingtech said that Nexperia's China operations had rebuilt key information systems after employee accounts were blocked in March.

The company said a new SAP system was now fully operational, with all system data held by Nexperia's China operations, which have full access and management rights. It has also completed electronic data interchange, or EDI, links with major customers. Wingtech said the new information systems were operating smoothly as of the filing date.

Global Times