Hallsai (002963) announced the termination of its previously agreed equity transfer deal involving Yidao New Energy Technology Co., Ltd. The company had initially signed a share repurchase agreement in September 2024 for Mr. Liu Yong to repurchase 0.71% of Yidao’s equity and transfer it to another acquirer. However, as the conditions for the agreement’s execution were not met, all parties mutually decided to terminate the arrangement effective June 9, 2025.
The termination agreement specifies that neither party will bear liability for breach of contract, with only confidentiality clauses remaining in effect. Hallsai retains ownership of the target equity and maintains its repurchase rights. The company emphasized that this development will not significantly affect its production, operations, or financial condition, suggesting the deal was not material to its core business strategy.
While the failed transaction represents a minor setback in Hallsai’s sector ambitions, the preserved ownership of Yidao shares leaves future options open. Investors will watch for whether the company pursues alternative arrangements for this stake or integrates it into longer-term energy transition plans. The clean termination without penalties demonstrates prudent contract structuring by management.
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