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So Eon gets $3.25M US ($23M Yuan) in license fees. I don't think that would be enough to move the needle for them in Q1 2020. Since they made the statement that licensing fees income effected Q1 2020 profit, and we know their operating revenue was down due to the virus, the license revenue must have been much more than $3.25M. So this may tell us that this JV (Ningde Sanxiang)is not producing for Huawei and there is another larger producer making parts for them.
"Yi'an Technology released the first quarter performance forecast, with an estimated profit of 23.3449 million yuan-25.2903 million yuan, an increase of 260% -290% over the same period of the previous year. From January to March, the company was affected by the epidemic and its operating income declined slightly. At the same time, the company's technology licensing fee income affects the company's net profit."
“but is there any justification for an NDA prohibiting the company from just telling their stockholders...”
NDA prohibits any public disclosure.
Perhaps this Q&A will specifically address your claims:
Q: Does the company supply spare parts for Tesla ventilator?
Plain-headed people123 · 2020-04-07 · from Website
A: Yian Technology [300328]
Hello! Thank you for your interest in the company. The company did not provide Tesla with spare parts for the ventilator. Thank you!
Stock code: 300328 Stock abbreviation: Yi'an Technology Announcement No .: 2020-021
Dongguan Yian Technology Co., Ltd.
Announcement on signing equipment sales contract and related party transaction
All members of the company and the board of directors guarantee that the content of information disclosure is true, accurate and complete, and there are no false records, misleading statements or major omissions.
1. Overview of the transaction
(1) Basic situation
On April 8, 2020, Dongguan Yi'an Technology Co., Ltd. (hereinafter referred to as "Company" or "Yi'an Technology" or "Party B") and Ningde Sanxiang Liquid Metal Technology Co., Ltd. (hereinafter referred to as "Ningde Sanxiang" or "Ningde Sanxiang" or "Party B") "Party A") jointly signed the "Equipment Sale Contract" (hereinafter referred to as "this connected transaction"), Ningde Sanxiang agreed to purchase 10 units of liquid metal machinery and equipment of two types and specifications from Yi'an Technology, with a total amount of RMB 30.8 million yuan.
(2) Description of association relationship
The shareholders of Ningde Sanxiang are Yi'an Technology and Ningde Sanxiang Zirconium Magnesium Industry Equity Investment Partnership (Limited Partnership) (hereinafter referred to as "Sanxiang Zirconium Magnesium"). Yi'an Technology's contribution to Ningde Sanxiang is 40 million yuan, and the shareholding ratio is 40%. Sanxiang Zirconium and Magnesium's contribution to Ningde Sanxiang is 60 million yuan, and the shareholding ratio is 60%. Ningde Sanxiang is suitable According to the "Shenzhen Stock Exchange GEM Stock Listing Rules" and other provisions of the company's shareholding company, Ningde Sanxiang is a connected legal person of the company, so the company and the related legal person Ningde Sanxiang jointly signed the equipment sales contract to constitute a connected transaction.
(3) Examination and approval
On April 8, 2020, the third meeting of the fourth board of directors of the company reviewed and approved the
"Proposal on Preparation of Sale and Purchase Contracts and Related Party Transactions", agreeing to sign the equipment sales contract and related party transactions this time. In this related party transaction, no related directors need to avoid voting, and independent directors have given their prior approval opinions and independent opinions on this related party transaction. This connected transaction does not need to be submitted to the shareholders' meeting for consideration, and does not constitute a major asset reorganization as stipulated in the “Management Measures for Major Asset Restructuring of Listed Companies”.
2. Basic information of related parties
(1) Name: Ningde Sanxiang Liquid Metal Technology Co., Ltd.
(2) Registered capital: 100 million Yuan (3) Residence: Sanxiang Science and Technology Park, Nanyang Town, Shouning County, Ningde City, Fujian Province (4) Legal representative: Xiao Chuanzhou (5) Business scope: Development of amorphous alloy (liquid metal) , Rolling processing of rare earth metals,
Production and sales; liquid metal technology consulting and promotion services. (Projects that must be approved in accordance with the law can only be operated after approval by the relevant departments)
(6) Name of shareholder, capital contribution and shareholding ratio:
Name of shareholder
Sanxiang Zirconium Magnesium
Yian Technology
3. Main content of equipment sales contract
Investment amount (ten thousand yuan)
6,000 60% 4,000 40%
Shareholding ratio (%)
(1) Subject of the contract
Party A: Ningde Sanxiang Liquid Metal Technology Co., Ltd.
Party B: Dongguan Yian Technology Co., Ltd.
(2) Main content
1. Party A purchases 10 liquid metal machinery and equipment of two types and specifications from Party B, the total amount is RMB
RMB 30.8 million.
2. Party A will pay Party B 30 million yuan in three installments.
4. The pricing policy and basis of the transaction
The price of the related party transaction was finally determined after friendly negotiation between the two parties, in compliance with relevant laws and regulations, and there was no situation that harmed the interests of the company and all shareholders.
Fifth, the impact of equipment sales contracts on the company
The signing of the equipment sales contract on the one hand increased the liquid metal equipment production capacity of the joint-stock company Ningde Sanxiang, gradually introduced liquid metal technology and mass-produced liquid metal products, and on the other hand met the growing scale of the liquid metal industry. The expanded demand extends the company's liquid metal industry chain, promotes the development of the liquid metal industry, and enhances the company's overall competitiveness in line with the company's development strategy. This equipment sales contract
The company's financial situation and operating results will have a positive impact.
6. The total amount of various related party transactions that have occurred with the related party from the beginning of this year to the date of disclosure
Except for this related party transaction, from the beginning of this year to the date of disclosure, the total amount of various related party transactions that have occurred with this related party is 40 million yuan.
7. Independent directors' prior approval and independent opinions
(1) Prior approval of independent directors
1. The related party transaction was conducted on the basis of fairness and reasonableness, and the two parties negotiated and agreed, without damaging the interests of the company and other shareholders, especially small and medium shareholders, and will not affect the company's independence, nor will it affect the company's ability to continue operations. influences.
2. We have no objection to this connected transaction and agreed to submit this matter to the third meeting of the fourth board of directors of the company for consideration.
(2) Independent opinions of independent directors
1. This related party transaction has been approved by us before being submitted to the board meeting for deliberation. 2. On the one hand, this related party transaction increased the liquid metal equipment production capacity of the joint-stock company Ningde Sanxiang,
To gradually introduce liquid metal technology and mass-produce liquid metal products as a pavement, on the other hand, it meets the growing demand of the liquid metal industry, extends the company's liquid metal industry chain, promotes the development of the liquid metal industry, and enhances the company's comprehensive competitiveness. In line with the company's development strategy. The related party transaction was conducted on the basis of fairness and reasonable agreement between the two parties, and did not harm the interests of the company and other shareholders, especially small and medium shareholders.
3. This connected transaction has been reviewed and approved at the third meeting of the fourth board of directors of the company. The convening, convening, and voting procedures of the board meeting complied with the relevant laws and regulations and the Articles of Association.
In summary, we unanimously agree to this connected transaction.
8. Sponsor's verification opinion
After verification, the sponsor believes that:
(1) The related party transaction was conducted on the basis of fairness, reasonableness, and consensus between the two parties, without harming the interests of the company and other shareholders, especially small and medium shareholders.
(2) This connected transaction is conducive to further expanding the company's liquid metal product market and is in line with the company's development strategy and the interests of all shareholders.
(3) The related party transaction has been reviewed and approved by the company's board of directors and board of supervisors. The independent directors have previously approved and issued a consensus opinion, performed the necessary approval procedures, and their decision-making procedures are in compliance with the "Guidelines for the Standard Operation of Listed Companies on the Shenzhen Stock Exchange GEM , "Shenzhen Stock Exchange GEM Stock Listing Rules", "Articles of Association" and other relevant regulations, there is no situation that harms the interests of the company and shareholders.
In summary, the sponsor institution has no objection to the company's related party transactions.
9. Documents for reference
(1) "Resolution of the third meeting of the fourth board of directors of Dongguan Yian Technology Co., Ltd." (2) "Resolution of the third meeting of the fourth board of supervisors of Dongguan Yian Technology Co., Ltd." (3) "Dongguan Yian Technology The independent director of a company limited by shares
Pre-approval opinions on matters related to the meeting "(4)" Independent Director of Dongguan Yi'an Technology Co., Ltd. About the Third Session of the Fourth Board of Directors of the Company
Independent Opinions on Relevant Matters of the Meeting (5) "CITIC Construction Investment Securities Co., Ltd. Signs Equipment Sales Contract and Affiliation with Yi'an Technology"
"Verification Opinions on Transactions" (6) "Equipment Sale Contract" is hereby announced.
Board of Directors of Dongguan Yian Technology Co., Ltd.
April 8, 2020
CITIC Construction Investment Co., Ltd. on Dongguan Yi'an Technology Co., Ltd.
The company signed the equipment sales contract and the verification opinion of the related party transaction
CITIC Construction Investment Securities Co., Ltd. (hereinafter referred to as "CITIC Construction Investment", "sponsoring institution" or "sponsor") as a sponsor of Dongguan Yi'an Technology Co., Ltd.'s non-public offering of shares and listing on the GEM, according to the "Securities" Regulations on the issuance of listing sponsorship business, the "Shenzhen Stock Exchange GEM Stock Listing Rules", and the "Shenzhen Stock Exchange GEM Listed Company Standardization Operation Guidelines" and other relevant regulations, including the signing of equipment sales contracts and related party transactions by Yian Technology After verification, the verification situation and verification opinions are as follows:
1. Overview of the transaction
(1) Basic situation
On April 8, 2020, Dongguan Yi'an Technology Co., Ltd. (hereinafter referred to as "Company" or "Yi'an Technology" or "Party B") and Ningde Sanxiang Liquid Metal Technology Co., Ltd. (hereinafter referred to as "Ningde Sanxiang" or "Ningde Sanxiang" or "Party B") "Party A") jointly signed the "Equipment Sale Contract" (hereinafter referred to as "this connected transaction"), Ningde Sanxiang agreed to purchase liquid metal machinery and equipment from Yi'an Technology, with a total amount of RMB 30.8 million.
(2) Description of association relationship
The shareholders of Ningde Sanxiang are Yi'an Technology and Ningde Sanxiang Zirconium Magnesium Industry Equity Investment Partnership (Limited Partnership) (hereinafter referred to as "Sanxiang Zirconium Magnesium"). Yi'an Technology's contribution to Ningde Sanxiang is 40 million yuan, and the shareholding ratio is 40%. Sanxiang Zirconium and Magnesium's contribution to Ningde Sanxiang is 60 million yuan, and the shareholding ratio is 60%. Ningde Sanxiang is suitable According to the "Shenzhen Stock Exchange GEM Stock Listing Rules" and other provisions of the company's shareholding company, Ningde Sanxiang is a connected legal person of the company, so the company and the related legal person Ningde Sanxiang jointly signed the equipment sales contract to constitute a connected transaction.
(3) Examination and approval
On April 8, 2020, the third meeting of the fourth board of directors of the company reviewed and approved the
"Proposal on Preparation of Sale and Purchase Contracts and Related Party Transactions", agreeing to sign the equipment sales contract and related party transactions this time. In this related party transaction, no related directors need to avoid voting, and independent directors have given their prior approval opinions and independent opinions on this related party transaction. This connected transaction does not need to be submitted to the shareholders' meeting for consideration, and does not constitute a major asset reorganization as stipulated in the “Management Measures for Major Asset Restructuring of Listed Companies”.
2. Basic information of related parties
(1) Name: Ningde Sanxiang Liquid Metal Technology Co., Ltd.
(2) Registered capital: 100 million Yuan (3) Domicile: Sanxiang Science and Technology Park, Nanyang Town, Shouning County, Ningde City, Fujian Province (4) Legal representative: Xiao Chuanzhou (5) Business scope: Development of amorphous alloy (liquid metal) , Rolling processing of rare earth metals,
Production and sales; liquid metal technology consulting and promotion services. (Projects that must be approved in accordance with the law can only be operated after approval by the relevant departments)
(6) Name of shareholder, capital contribution and shareholding ratio:
Name of shareholder
Sanxiang Zirconium Magnesium
Yian Technology
Investment amount (ten thousand yuan)
Shareholding ratio (%)
6,000 60% 4,000 40%
3. Main content of equipment sales contract
(1) Subject of the contract
Party A: Ningde Sanxiang Liquid Metal Technology Co., Ltd. Party B: Dongguan Yi'an Technology Co., Ltd.
(2) Main contents 1. Party A purchases liquid metal machinery and equipment from Party B for a total amount of RMB 30.8 million. 2. Party A will pay Party B 30 million yuan in three installments.
4. The pricing policy and basis of the transaction
The price of the related party transaction was finally determined after friendly negotiation between the two parties, in compliance with relevant laws, regulations and other regulations
Certainly, there is no situation that harms the interests of the company and all shareholders.
V. The impact of this transaction on the company
The signing of the equipment sales contract on the one hand increased the liquid metal equipment production capacity of the joint-stock company Ningde Sanxiang, paved the way for the gradual introduction of liquid metal technology and mass production of market-competitive liquid metal products, and on the other hand satisfied the liquid The increasing demand for the development scale of the liquid metal industry extends the company's liquid metal industry chain, promotes the development of the liquid metal industry, and enhances the company's overall competitiveness, in line with the company's development strategy. This equipment sales contract will have a positive impact on the company's financial situation and operating results.
6. The total amount of various types of related transactions that have occurred with the related party from the beginning of this year to the date of disclosure
Except for this related party transaction, from the beginning of this year to the date of disclosure, the total amount of various related party transactions that have occurred with this related party is 40 million yuan.
7. Procedures for performance
This matter has been reviewed and approved at the third meeting of the fourth board of directors and the third meeting of the fourth board of supervisors of the company, and independent directors have issued clear consent.
8. Sponsor's verification opinion
After verification, the sponsor believes that:
(1) The related party transaction was conducted on the basis of fairness, reasonableness, and consensus between the two parties, without harming the interests of the company and other shareholders, especially small and medium shareholders.
(2) This connected transaction is conducive to further expanding the company's liquid metal product market and is in line with the company's development strategy and the interests of all shareholders.
(3) The related party transaction has been reviewed and approved by the company's board of directors and board of supervisors. The independent directors have previously approved and issued a consensus opinion, and have performed the necessary review and approval procedures. Their decision-making procedures are in compliance with the "Guidelines for the Standard Operation of Shenzhen Stock Exchange GEM Listed Companies" , "Shenzhen Stock Exchange GEM Stock Listing Rules", "Articles of Association" and other relevant provisions, there is no damage to the interests of the company and shareholders. In summary, the sponsor institution has no objection to the company's related party transactions.
(There is no text on this page, it is the signing page of "Verification Opinions of CITIC Construction Investment Co., Ltd. on Dongguan Yi'an Technology Co., Ltd. Signing Equipment Sale Contract and Related Party Transactions")
Sponsor's signature:
He Xinmiao Zhang Yu
CITIC Construction Investment Co., Ltd.
ndependent Director of Dongguan Yian Technology Co., Ltd.
Independent Opinions on Matters Related to the Third Meeting of the Fourth Board of Directors of the Company
According to the "Guiding Opinions on Establishing an Independent Director System in Listed Companies", "Shenzhen Stock Exchange GEM Stock Listing Rules", "Shenzhen Stock Exchange GEM Listed Companies Standard Operation Guidelines" and "Dongguan Yi'an Technology Co., Ltd. ( (Hereinafter referred to as "Company" or "Yi'an Technology") independent director system "and other relevant provisions. As independent directors of the company, we have carefully considered the relevant matters of the third meeting of the fourth board of directors of the company, based on independent judgment and issued The following independent opinions:
1. Independent Opinion on Signing Equipment Sale Contract and Related Party Transactions
(1) This related party transaction has been approved by us before being submitted to the board meeting for deliberation.
(2) On the one hand, this related party transaction increased the liquid metal equipment production capacity of the joint-stock company Ningde Sanxiang Liquid Metal Technology Co., Ltd., and gradually introduced liquid metal technology and mass-produced liquid metal products. The increasing demand for the development scale of the metal industry extends the company's liquid metal industry chain, promotes the development of the liquid metal industry, and enhances the company's overall competitiveness, in line with the company's development strategy. The related party transaction was conducted on the basis of fairness, reasonableness, and consensus between the two parties, without harming the interests of the company and other shareholders, especially small and medium shareholders.
(3) This connected transaction has been reviewed and approved at the third meeting of the fourth board of directors of the company. The convening, convening, and voting procedures of the board meeting complied with the relevant laws and regulations and the Articles of Association.
In summary, we unanimously agree to this connected transaction.
"Independent Opinions of Independent Directors of Dongguan Yi'an Technology Co., Ltd. on Relevant Matters Related to the Third Session of the Fourth Board of Directors of the Company")
Independent director:
April 8, 2020
Licensing fees are generally not significant, so if it was that significant to be noted and the revenue increased that much, it was a large amount of machines.
We know that Huawei is using 106C, so it could be them.
But they have been using the material for a year now in their foldable models. Or it could be Foxconn, which would be my guess. Which would mean likely use by Apple later this year.
Not sure, if the net profit increased and licensing revenue “affected” it, that would imply a increase in licensing fee revenue. Particularly since we have to assume production was down this quarter due to the virus.
Thanks, but this is not BMG.
https://www.asus.com/us/2-in-1-PCs/ASUS-Chromebook-Flip-C436FA/Features/
Asus is at it again with a Chromebook Flip C436 that has a magnesium alloy body and special 360* hinges and a Harmon Kardon speaker.
They still have the Zenphone 6 on their US website with the liquid meter flip camera. So apparently Apple was okay with this.
Again, I am going to ask Josh to chime in but I recall him stating that the Eon machines can take both alloys and Engel only the one. Wouldn't make sense to switch to Eon machines if not. Hate to say it, but I trust Josh's opinion over Steipp.
I could be mistaken, but I thought the 1,000g machines were for aluminum/magnesium alloys. Maybe Josh can chime in.
Just to clarify, Engel machines can not use 106C. Their machines can use the more pure and expensive 105. But are limited to 80g shots. Li’s machines can use either and can do shots up to 300g. So it is clearly a better machine. This is why Foxconn has a contract with Eon and not Engel.
Where did I state anything about Royalties?
I did not. I said product sales revenue was over a half million ($645K to be exact) in Q4 2019. This is NOT royalties or license revenue. There clearly is product revenue coming in beyond the two publicly stated contracts. We have no idea the source. Might be medical sales, maybe CE sales in EU....we don't know. Point is, there is more going on than what is stated in the public documents. And if you are limiting yourself to that, then you are not seeing the big picture.
I don't mean to sound negative towards you, but if you don't create of use financial statements in your job as I or even have a basic understanding, please leave my question be.
The Statement of Operations shows revenue from product sales (and only product sales). The year end total 2019 was $1.373M. Through the end of Q3 it was $0.728M. This means revenue from product sales in Q4 was $645K. This can NOT be from bridge pins or dental units. We clearly are receiving other product revenue elsewhere.
Investment revenue is shown elsewhere in the financials.
Investments are not part of operating revenue on the Income Statement.
I didn't attack you as you did me. You have your opinion and that's fine. But don't force it on everyone else. Apple will use the material, and revenues are irrelevant because once the general public knows of the material use by Apple, share price will rocket.
Let me explain this to you, speculation drives share price. Revenue create the base price.
Your version of reality is not everyone else's. Apple's use of this material is far more realistic than emergency ventilators being made with LQMT.
Then how do you explain the half million in revenue in Q4 2019? Especially when we were told by the company revenue would be down. It certainly wasn't bridge pins or dental units. It seems quite obvious we are receiving revenue from sources outside the two known contracts. No one seems to be able to address this question.
I didn't put it up there. I put up the other post. And who made you arbitrator of those posts?
Wow, you seem pretty sure of yourself.
So where do you think the half million in revenue from Q4 2019 came from? Guitar bridge pins?
I had noted some recent documents stating the materials use in airplanes and it puzzled me as I couldn't see it. Now seeing these rivet patents, it makes sense. Unfortunately airplane production is likely at a near halt due to COVID-19.
ZTE is banned from the US. So no revenue from their products unless sold in EU.
US is irrelevant because Apple produces nothing in the US.
Apple is completely tied to China. They made this strategic decision years ago to put all their eggs in that basket. China OWNS them. Let me give you an example, last year China demanded that Apple keep their servers used for China in China so the Chicomm government can monitor it. Apple complied immediately (and quietly so the media didn't pick it up). Make no mistake, Apple needs China more than China needs Apple. NO question about this.
How do you know we are not getting paid? Will this phone be sold in NA or EU? Do some work to find out and then you might have an answer.
Wrong again, Apple does not manufacture. They have suppliers.
There main supplier and fabricator is Foxconn. So when you read an article that says "Apple is making there own antenna" or something like this - it means Foxconn is making it. If Apple uses BMG, it will be through Foxconn. And by the way, Eontec has had a contract with Foxconn for over three years now. To provide BMG support and expertise. Why do you think Foxconn hascontracted with Eon? Just for the hell of it?
Obviously they haven't as they have not used the material yet....
The big bargaining chip Li has is his machines. Remember his machines can take multiple formulations (including cheaper lower purity formulations), where as Engel can only use the high purity formulations.
And Li's machines can make bigger parts and has better molds, than anyone else. So he does have some leverage.
I don't see why we couldn't receive some level of royalty payment if they use a formula (106C) out of the period. But I would caution that knowing how Apple negotiates, it would probably be a small amount, like less than 6% which we get now. The good news is that even if it is, it will still be enough $ to make the company profitable.
Can you please share this announcement?
Yeah, the auto manufacturers aren't capable of making ventilators but LQMT is. LOL!
Apple will receive an exemption (if necessary) for all CE products they make. All of their suppliers are from China.
Apple cares about the best material for the best price. Period. If LQMT meets this, then their material will be used. Pretty simple.
They have never been transparent. You should have known this when you bought...
Auto makers are already doing this...at no charge...
That's because ISO 10993 approval is for biocompatibilty. This is a medical approval.