Xin Lang Cai Jing·2026-01-14 13:05Core Viewpoint - The arbitration process has officially begun between Wentech Technology and Luxshare Precision due to disputes over the asset transfer of Wentech's Indian business, following complications in their major asset sale [1][15]. Group 1: Asset Transfer Dispute - Luxshare Precision announced that the asset transfer related to Wentech's Indian business is hindered by asset seizures and freezes, preventing the completion of ownership transfer procedures [2][16]. - Luxshare's subsidiary has filed for arbitration in Singapore, seeking to terminate the asset transfer agreement and recover approximately 1.53 million RMB (19.77 billion Indian Rupees) already paid, along with interest [2][17]. - Wentech claims that all assets have been transferred except for the Indian land, which requires cooperation from Luxshare for ownership transfer [3][19]. Group 2: Financial Implications - Wentech has repeatedly urged Luxshare to pay the remaining transaction amount of approximately 160 million RMB, which has not been paid, leading to Luxshare's unilateral termination notice [4][22]. - The asset sale is part of Wentech's strategy to divest from non-core businesses, with significant impacts on its revenue structure, as its product integration business revenue dropped from 72.39% in 2023 to just 2.50% by Q3 2025 [14][29]. Group 3: Legal and Operational Response - Wentech has initiated legal procedures to respond to the arbitration, preparing necessary legal documents and assessing feasible legal avenues [8][23]. - The arbitration involves complex cross-border legal issues, and the company is unable to predict the financial impact of the dispute at this time [8][23]. Group 4: Status of Other Assets - Other than the disputed Indian assets, all other assets involved in the transaction have completed ownership transfer procedures and are not subject to litigation [9][24].