Liquidmetal Technologies Inc (LQMT)

[joshuaeyu]

Letter of Attention to Eontec

http://pdf.dfcfw.com/pdf/H2_AN202002251375483381_1.pdf


GEM Concern Letter [2020] No. 132

Board of Directors of Eontec,


Our department is concerned that since February 2020, your company's investor relations interactive platform in our firm (Hereinafter referred to as "Easy Interactive") when responding to investors many times involved in issues of high market concern such as Tesla, new energy vehicles, and folding mobile phone hinges.

On February 8th, your company indicated that the company is a Tis1 supplier;

On February 13, your company stated that it has a direct cooperative relationship with Tesla. After Tesla's localization, it will be beneficial to the company's new energy vehicle business expansion and is an opportunity for the company's development;

On February 21, your company stated that Tesla is one of the important customers of the company's new energy automotive products and that the company's liquid metal is used in the hinges of folding mobile phones;

On February 24, your company stated that Ningde Times is a customer of the company. The company supplies battery pack-related components to the company, and the company has the production capacity for mass production of liquid metal hinges available in bulk. Could your company provide additional explanation on the following matters:

1. The basis for your company's identification of Tesla as a Tier 1 supplier, detailing the specific conditions of the products provided to Tesla, including the details of the products provided, the products provided, the sales volume and amount of the next two years, and the credit policy , Account receivables and receivables, etc., combined with orders in hand and contract signing, explain the impact of Tesla's business cooperation on your company's financial status and operating results, and prompt related risks.

2. The specific situation of your company's new energy vehicle products, including product details, major customers of new energy vehicles, sales volume and amount of sales in the past two years, etc., combined with the above description, your company is interactive and easy to reply Tesla is the company's new judgment basis for one of the important customers of energy automotive products.

3. The specific details of the products provided by the company to the Ningde Times, including the details of the products provided, the objects of the products provided, the sales volume and amount of the next two years, credit policies, accounts receivable and receivables, etc., combined with the orders in hand, The signing of the contract explains the impact of business cooperation with Ningde Times on your company's financial status and operating results, and prompts related risks.

4. Your company stated that it has the basis for the production capacity of liquid metal hinges and the basis for bulk supply for customers. It also discloses the basic development of liquid metal hinges, including the company's main application areas of liquid metal hinges, the main customers, and another issue in the past two years Sales and amount, credit policy, accounts receivable and receivables, orders in hand and their impact on the company's financial position and operating results.

5. Please combine the responses to the above questions, and explain one by one whether your company's relevant responses in the interactive website are objective, truthful, accurate, complete, and fair to introduce and reflect the actual situation of the company, and whether there are misleading statements. Please self-examine and explain whether your company has replaced the temporary announcement with interactive easy responses, whether undisclosed information should be disclosed, and whether the aforementioned interactive easy responses actively cater to market hotspots and hype the company's stock price.

6. Please explain how your company's directors, supervisors, senior management personnel, controlling shareholders, and shareholders holding more than 5% of the shares have bought or sold your company's stocks in the past month, and whether there is any insider trading or market manipulation. Supplementary disclosure for the next 6 months If the above personnel have a reduction plan, verify whether your company has used the interactive easy response to cooperate with the reduction of the above personnel. Your company is requested to make a written explanation on the above matters, and submit relevant explanatory materials to our Ministry and disclose to the public before February 27, 2020, and at the same time copy to the Supervision Division of Listed Companies of Guangdong Securities Regulatory Bureau.

At the same time, our company reminds you that listed companies must fulfill their information disclosure obligations in a serious and timely manner in accordance with national laws and regulations and the provisions of the Shenzhen Stock Exchange GEM Stock Listing Rules. All members of the board of directors of a listed company must ensure that the information disclosed is true, accurate, and complete, without false records, misleading statements, or major omissions, and assume individual and joint responsibility for its guarantee.
 
Notice is hereby given.

 gem Company management
 February 25, 2020