Halo Micro announced that its controlled subsidiary Zinitix Co., Ltd. will be designated as an administrative issue stock by the Korea Exchange starting September 3, 2026, because its total common stock market capitalization has been below 20 billion Korean won for 30 consecutive trading days. If it fails to meet the market capitalization requirement for 45 consecutive trading days within 90 trading days, it will face delisting. Zinitix was listed on South Korea's KOSDAQ in 2019 and mainly produces touch controllers and other products. In 2025 and the first half of 2026, its revenue accounted for 19.36 percent and 15.66 percent of Halo Micro's total revenue respectively. Halo Micro's acquisition of Zinitix created goodwill of 64.2175 million yuan, and if Zinitix is delisted, it may trigger goodwill impairment risk. In July 2024, Halo Micro acquired a 30.91 percent stake in Zinitix for 109 million yuan, and later increased its shareholding to 47.62 percent through a private placement. However, in 2025 it had disclosed a risk of losing control, which was later resolved. Zinitix has continued to incur losses, with net profit of negative 46.277 million yuan in 2025 and negative 11.1388 million yuan in the first half of 2026. Halo Micro's cumulative losses from 2022 to 2025 exceeded 470 million yuan.
Zinitix Co.LtdKorea Exchange will designate Zinitix as an administrative issue stock for failing the market-cap requirement, putting it at risk of delisting.
Halo Microelectronics Co. Ltd. ASubsidiary Zinitix faces KOSDAQ delisting risk, which could trigger goodwill impairment on Halo Micro's balance sheet.
