(Yicai) May 25 -- Wingtech Technology’s shares rose by their daily trading limit after the Chinese technology company filed a lawsuit against its Dutch chipmaking subsidiary Nexperia and five other entities, seeking damages of CNY8 billion (USD1.2 billion) and requesting the court in China to restore its control over the unit.

Wingtech [SHA: 600745] climbed 5 percent to close at CNY17.01 (USD2.52) a share today, while the broader Shanghai stock market rose 1 percent.

Because authorities in the Netherlands have restricted Wingtech’s control over Nexperia, auditors were unable to verify its overseas assets or the scope of the consolidated financial statements. As a result, the Shanghai bourse placed Wingtech’s shares under special treatment on May 6, warning of delisting risk and limiting the stock’s daily price range to 5 percent.

Wingtech filed the lawsuit with the Dongguan Intermediate People’s Court in Guangdong province in relation to a dispute with the defendants: Nexperia, its Chief Legal Officer Ruben Lichtenberg, Chief Operating Officer Achim Kempe, Chief Financial Officer Stefan Tilger, and two affiliated companies, the Jiaxing-based firm announced late on May 22. The court has accepted the case.

Their discriminatory actions have caused Wingtech irreparable and substantial losses, the company said, adding that it is asking the court to order them to compensate those losses in accordance with China’s Anti-Foreign Sanctions Law and other relevant laws and regulations.

Wingtech's net loss topped CNY8.7 billion last year, mainly because restricted control over Nexperia led to deep investment and asset impairment losses, its annual financial report showed last month.

Since the Dutch government intervened in Nexperia’s operations in early October, Wingtech’s stock price has declined by about 63 percent, wiping out roughly CNY36.7 billion (USD5.4 billion) in market capitalization.

Wingtech is also asking the court to order the defendants to immediately stop carrying out or assisting in discriminatory restrictive measures, including withdrawing related legal proceedings in the Netherlands and revoking the ministerial order issued by the Dutch Ministry of Economic Affairs and Climate Policy last September under the Goods Availability Act.

If the defendants fail to comply, Wingtech is asking the court to order the unconditional transfer of Nexperia and its affiliated subsidiaries’ shares to the company.

Wingtech said it will “exhaust all legal means to restore full control over Nexperia and protect investors’ interests.”

Wingtech bought Nijmegen-based Nexperia for over CNY30 billion (USD4.4 billion) in 2028, making it the company’s main semiconductor asset. But at the end of last September, the Dutch economy ministry issued a ministerial order, and the Dutch Enterprise Court then announced emergency measures that restricted Wingtech’s control.

Although the Dutch government later said it had suspended the ministerial order, the Enterprise Court’s ruling remains in force.

Wingtech has condemned the Dutch government’s global freeze on Nexperia’s operations, saying the measure was imposed under the baseless pretext of “national security” and reflected excessive intervention driven by geopolitical bias.

Editor: Martin Kadiev