Finance Association, November 12 (Editor Zhang Liang, Intern Editor Sun Pengpeng) In the context of mergers, acquisitions and restructuring, the overall profit situation of Wingtech Technology (600745.SH) and shareholders' holdings reduction actions have attracted attention. Since this year, Wingtech's revenue has shown a quarterly upward trend. Q3's revenue in a single quarter was close to 20 billion, a record high for the same period in history. Its convertible bonds rose well. By the close of trading on November 11, “Wingtai Convertible Bonds” had a cumulative increase of 54% over the year's low of 78.875 yuan set in the intraday market on August 26.

However, the shareholder reduction plan faced by the company caused stock price fluctuations, and its subsequent profitability was also a source of concern for the market.

According to public information, Wingtech is a semiconductor and product integration enterprise integrating R&D, design, and manufacturing. It mainly provides global customers with R&D and design, wafer manufacturing and packaging testing of semiconductor power devices and analog chips; R&D and manufacturing services for mobile phones, tablets, laptops, AIoT, automotive electronics, etc.

According to the financial report, the company's semiconductor business achieved net profit of 0.56 billion yuan in the second quarter, and net profit rose to 0.666 billion yuan in the third quarter. However, the net loss of the product integration business in the second quarter was 0.5 billion yuan, and the net loss in the third quarter narrowed to 0.357 billion yuan. Overall, net profit attributable to shareholders of listed companies in the third quarter was 0.274 billion yuan, a significant improvement compared with the shift from loss to profit in the second quarter.

Profit improvements in the third quarter led to a rise in the company's bond conversion price. By the close of November 11, “Wingtai Convertible Bonds” had a cumulative increase of 54% over the year's low of 78.875 yuan set in the intraday market on August 26.

In terms of assets and liabilities, as of the end of the third quarter of 2024, Wingtech's total assets were 7.8136 million yuan, total liabilities were 4.0092 million yuan, and the balance ratio was 51.31%. Of this, current liabilities were $2.7277 million, mainly notes payable and accounts payable of $1.578 million. The company's cash ratio is 0.32 times.

China Chengxin International believes in a related research report that the semiconductor industry showed signs of recovery in the third quarter of 2023, but there is still some uncertainty about the extent to which demand for terminals has picked up. Thanks to the rapid development of automotive electronics, the global power discrete device industry's market performance is steady, and we still need to pay attention to the impact of the recovery in demand in the industrial and consumer electronics sectors on the industry. Currently, there is still a gap in the technical level between domestic manufacturers and advanced global manufacturers, but the broad domestic market space and policy environment bring opportunities for enterprise development.

However, compared to the first three quarters of last year, Wingtech's profit declined significantly. The quarterly report shows that in the first three quarters of this year, Wingtech's revenue increased 19.7% year on year to reach 53.161 billion yuan, but net profit to mother fell 80.26% year on year to 0.415 billion yuan.

Shareholders' holdings reduced

Since this year, two shareholders of Wingtech Technology have disclosed shareholding reduction announcements. According to the announcement, on September 30, the company's shareholder Zhuhai Ronglin Equity Investment Partnership (“Zhuhai Ronglin” for short) plans to reduce its holdings by no more than 12.4281 million shares, accounting for about 1% of the company's total share capital. On October 8, the company announced the addition of the shareholding reduction implementer Zhuhai Gree Electric Co., Ltd. (“Gree Electric”). Gree Electric is the controlling shareholder of Zhuhai Ronglin.

According to information, Gree Electric's investment in Wingtech began in 2018. Through participation in the acquisition of Anshi Semiconductor, Zhuhai Ronglin and Gree Electric formed a concerted actor and became the third largest shareholder of Wingtech Technology. With Gree's help, Wingtech successfully acquired Anshi Semiconductor that year.

It is worth noting that in March of this year, Wingtai Technology announced that the second-largest shareholder, the Wuxi Guolian Integrated Circuit Investment Center (“Wuxi Guolian”), decided to reduce the company's holdings by 12.42 million shares by July 9, but until the end of the holdings reduction period, the Wuxi League of Nations did not implement a holdings reduction operation.

In terms of stock bonds, the Financial Services Association inquired that Wingtech currently has 1 stock bond. The bond name is “Wingtai Convertible”. The current bond balance is 8.6 billion yuan, and the bond conversion will expire within three years.

In June of this year, China Chengxin International downgraded the credit rating of “Wingtech Bonds Transfer” from AA+ to AA. The reasons for the downgrade include factors such as the company's optical business stagnating, product diversification and industrial chain extension being blocked, leading to asset impairment and disposal losses; the risk of failed convertible debt-for-equity swaps due to the continued slump in stock prices, and the risk of shareholders' equity pledges.