Liquidmetal Technologies Inc (LQMT)

[joshuaeyu]

Eontec JV in auto industry

http://www.cninfo.com.cn/finalpage/2018-08-13/1205282152.PDF

Here's the JV company
http://www.chinacapac.com/en/index.aspx

Here's the JV company parent company
http://www.sinomach.com.cn/en/



Stock code: 300328
Securities abbreviation: Eontec
Announcement No.: 2018-058

Dongguan Eontec, Ltd.

Announcement on Signing the Strategic Cooperation Framework Agreement

The company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the information disclosure, and there are no false records, misleading statements or major omissions.

Special Note:

1. This agreement is only a strategic framework agreement. It belongs to the framework and intentional agreement of the parties' willingness to cooperate and the basic principles. The specific implementation content of the follow-up business cooperation will be subject to a separate formal cooperation agreement. There are still uncertainties in the implementation of this agreement, and investors are advised to pay attention to investment risks.
2. This agreement is a strategic framework agreement. The impact on the company's 2018 annual operating results is subject to the signing and implementation of specific cooperation agreements.
3. This Agreement does not constitute a connected transaction, nor does it constitute a major asset restructuring as stipulated in the Measures for the Administration of Major Asset Restructuring of Listed Companies.
4. The progress of the framework agreement signed by the company in the last three years

    1 "Eontec and Shenzhen SEG Strategic Cooperation Framework Agreement"
  May 28, 2015
 The conditions for cooperation between the two sides are still not available, and the relevant specific cooperation has not been further promoted.
     
2 "Eontec and Zhongyue Amorphous Strategic Cooperation Framework Agreement"
      February 8, 2018
      Advancing

  I. Basic information of this agreement

(1) Signing of this agreement, in view of Dongguan Eontec, Ltd. (hereinafter referred to as “Eontec” or “Company”) and China Auto Parts Industry Co., Ltd. (hereinafter referred to as “China Automotive Industry”) The field has advantages. In order to further promote the development of Eontec new energy automobile industry and expand the market share of new energy automobile products, on August 13, 2018, Eontec and China's automobile industry signed the "Strategic Cooperation Framework Agreement" (hereinafter referred to as " This discussion"). This agreement is only a framework agreement, and it is not required to be submitted to the company's board of directors or shareholders meeting for consideration in accordance with the relevant provisions of the Articles of Association. After the specific cooperation matters are clear, the company will implement the corresponding decision-making and disclosure procedures in accordance with the requirements of the Shenzhen Stock Exchange GEM Stock Listing Rules and the Articles of Association and other laws and regulations and regulatory documents.

(2) Basic information of the other party to this agreement

1. Name: China Auto Parts Industry Co., Ltd.
2. Unified social credit code: 91110000100003620K
3. Legal representative: Zhang Hongwei
4. Registered capital: RMB 56 million
5. Address: No. 3, Danling Street, Haidian District, Beijing
6. Business scope: automotive, electronic products, ferrous materials, chemical products (except hazardous chemical products), Sales of machinery and equipment, rubber and plastic products; sales and after-sales services of automobile and motorcycle parts; technical services, technical consultation and information services related to automobile and motorcycle parts industry; exhibition, display; import and export business; Testing; designing, producing, acting, advertising
(Enterprises shall independently select operating projects and carry out business activities according to law; projects that are subject to approval according to law shall be subject to the approval of the relevant departments to carry out business activities; the business activities of the city's industrial policies shall not be prohibited or restricted)
7. Date of establishment: June 25, 1985

II, the main content of this agreement

  (1) Cooperative entities

Party A: China Auto Parts Industry Co., Ltd.
Party B: Dongguan Eontec, Ltd.

(II) Contents of Cooperation Party A and Party B shall conduct comprehensive strategic cooperation on the following three aspects:

1) Taking the automobile steering system, the central control system, and the pure electric vehicle core three-electric system as the main products to jointly develop the market;
2) Find partners on some automotive structural parts for breakthrough research and development, and cultivate new profit growth points;
3) Cooperation and application of new materials and liquid metal developed by Party B on new technologies.

(3) This Agreement shall be established after the signature and seal of both parties, and shall become effective after the implementation of the internal approval procedures by both parties.
 
III, Purpose of this strategic cooperation, the impact on the company and the risks

(1) The purpose of this strategic cooperation and its impact on the company

Eontec is a national high-tech enterprise specializing in R&D, design, production and sales of new materials. Its main products include liquid metal, new energy auto parts and other products, and it is a national industrial policy encouraged product. Eontec has long been committed to research and development of lightweight new materials for new energy vehicles. It has outstanding capabilities in technology, production capacity and on-site management of new energy-saving materials for new energy vehicles. It has leading in the fields of mold R&D design, new material technology and surface treatment. R&D strength, with strong lean production capacity and a complete industrial chain advantage.

China's automobile industry is a well-known auto parts integration service provider in China. It has abundant resources and enterprise resources in the automotive and parts industry. It has mastered the latest developments and information on the development of the domestic and international automotive and parts industries, and has helped to develop the market and guide the strategic development of the company. Provide value-added services and other capabilities. This cooperation will help to fully leverage the respective advantages of both parties, further expand the sales channels of Eontec new energy auto parts products, meet the growing demand for the development of new energy auto industry, expand the market share of new energy auto products, and further enhance Eontec. The competitiveness of science and technology new energy automobile industry.

(2) Risks existing

1. The signing of this agreement is only a framework agreement reached between the two parties through friendly negotiation. The specific cooperation matters involved in this agreement need to be signed separately. In accordance with the relevant progress of the matters involved in this agreement, the company will strictly implement the relevant examination and approval decision-making procedures and information disclosure obligations in strict accordance with the “Shenzhen Stock Exchange GEM Listing Rules” and the “Articles of Association”, etc. investment risk.

2. Up to now, the company's controlling shareholder Eon Industrial Co., Ltd. holds all the shares of the company as unrestricted tradable shares, and the company's second largest shareholder Zhuzhou City State-owned Assets Investment Holding Group Co., Ltd. holds all the shares of the company as restricted shares. The time limit for sale is March 16, 2019. As of the date of this announcement, the company has not received a notice from the controlling shareholder and shareholders holding more than 5% of the shares to reduce the company's shares in the next three months.

IV, Documents for reference

(1) The Strategic Cooperation Framework Agreement is hereby announced.

Dongguan Eontec, Ltd. Board of Directors
August 13, 2018