Halo Microelectronics announced on the evening of October 9 that the company and its wholly owned subsidiary Halo Microelectronics International Corporation recently received arbitration application materials served by JAMS. The claimant, Darson Zhang, has filed a claim for $3.5 million, approximately RMB 23.456 million. The case has been accepted but has not yet gone to hearing. Darson Zhang previously worked at HMI and was granted stock options. He alleges that after his departure the company failed to cooperate in repatriating stock proceeds and exercising his remaining stock options, amounting to breach of contract, misappropriation of property, and wrongful termination. The claim involves approximately $1.75 million in withheld stock value and approximately $1.75 million in unexercised option value. He also requests that this case be consolidated with the arbitration Halo Microelectronics filed in November 2025 against Nam David Ingyun and others. Less than a month earlier, Halo Microelectronics disclosed a lawsuit brought by Nam David Ingyun, former CEO of a controlled subsidiary, on labor dispute grounds. He sought to exercise approximately 3.2576 million stock options, or otherwise claim RMB 48.4406 million in damages. The two lawsuits and arbitrations together involve claims totaling approximately RMB 71.8966 million. Halo Microelectronics said that in the first half of 2025 it discovered that the individuals involved were suspected of stealing trade secrets, breaching fiduciary duties, and engaging in unfair competition. It therefore suspended their vested but unexercised options and temporarily withheld cooperation on capital outflows. The company described this arbitration as a counterclaim and said it will actively defend itself. In addition, the South Korean controlled subsidiary Zinitix was designated as an administrative issue stock starting September 3 because its market capitalization fell below 20 billion Korean won for 30 consecutive trading days, putting it at risk of delisting. Its revenue in the first half of 2026 was RMB 82.8094 million, accounting for 15.66% of Halo Microelectronics' revenue in the same period, with related goodwill of RMB 64.2175 million. Halo Microelectronics' revenue in the first half of 2026 was RMB 529 million, up 13.35% year on year. Net profit attributable to the parent narrowed its loss by 32.02% year on year, but the company still posted a loss of RMB 30.3779 million.
Zinitix Co.LtdHalo Microelectronics Co. Ltd. AFaces a $3.5M arbitration claim from a former employee over withheld stock proceeds and options, adding to a second dispute totaling ~RMB 71.9M.
