Halo Microelectronics (688173.SH): The controlling subsidiary Zinitix has been designated as a management stock by the Korea Exchange.

Halo Microelectronics (688173.SH) released a risk warning announcement regarding its controlling subsidiary Zinitix Co., Ltd. (referred to as "Zinitix"). It stated that the total market capitalization of Zinitix's common stock has been below 20 billion Korean won for 30 consecutive trading days. Zinitix will be designated as a managed stock by the Korea Exchange starting from September 3, 2026. If Zinitix fails to maintain a total market capitalization of over 20 billion Korean won for 45 consecutive trading days within the following 90 trading days after being designated, it will face delisting. If Zinitix triggers delisting and loses its listing status, it could negatively impact Zinitix's operations, leading to the present value of related asset groups' future cash flows being lower than their book value, which poses a risk of goodwill impairment. Any impairment losses will directly reduce the net profit for the current period, thereby adversely affecting the net profit attributable to shareholders of the listed company. Additionally, its stock liquidity will decline, which may impact its financing capabilities, corporate governance, and business partnerships. Reportedly, Zinitix is an integrated circuit design company that has developed a diverse range of product categories and application fields. Its main products include touch controllers, touchpad modules and systems, haptic feedback drivers, and magnetic security transmission chips, which are used in mobile devices such as smartphones, smartwatches, tablets, and laptops, as well as in smart home applications. In the fiscal years 2025 and the first half of 2026, Zinitixs operating revenue was 182 million yuan and 82.8094 million yuan, accounting for 19.36% and 15.66% of the companys total operating revenue, respectively.