Yuanlin Co. Halts Trading to Plan Acquisition of Chipmaker Sage Microelectronics

Yuanlin Co., Ltd. (605303.SH) has suspended trading of its shares on the Shanghai Stock Exchange as it plans to acquire a controlling stake in chipmaker Hangzhou Hualan Microelectronics Co., Ltd., also known as Sage Microelectronics. The company stated the proposed transaction is expected to constitute a major asset restructuring.

The Proposed Transaction

In a formal announcement, Yuanlin Co. disclosed it is planning to purchase the controlling interest in Sage Microelectronics through a combination of issuing new shares and a cash payment. The transaction is currently in the preliminary planning stages.

While the deal qualifies as a major restructuring, the company clarified that it is not expected to result in a change to its current controlling shareholder or actual controller. The financial terms and specific stake size were not disclosed.

Trading Suspension Details

Ad

To facilitate the planning of this significant corporate action, trading in Yuanlin Co. shares will be halted. The suspension is intended to prevent unusual stock price volatility while the terms of the deal are being finalized.

• Start Date: Monday, September 14, 2026
• Expected Duration: Not to exceed 10 trading days

Context and Implications

This potential acquisition signals a significant strategic pivot for Yuanlin Co., whose primary business is in landscaping and ecological engineering. An acquisition of Sage Microelectronics, a data storage and security controller chip specialist, would mark a substantial diversification into the high-tech semiconductor industry. Investors will be awaiting further details on the strategic rationale and financial impact of the deal once the planning phase is complete.