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LAKE FOREST, Calif. - Liquidmetal Technologies, Inc. (OTCQB:LQMT), a $134 million market cap company that has seen its stock surge over 170% in the past year according to InvestingPro data, announced Thursday that its wholly owned Hong Kong subsidiary, Liquidmetal Asia Holdings Limited, has entered into an agreement to form a joint venture company in China.
The new entity, named Hangzhou Feifeng Liquidmetal Co. Ltd., will develop a manufacturing facility in Hangzhou for producing amorphous alloy products. The joint venture will be 70% owned by Liquidmetal Asia and 30% by an individual investor, with an initial capital investment of $6 million. The company maintains a strong financial position with a healthy current ratio of 10.27 and more cash than debt on its balance sheet, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.
The planned 71,000-square-foot facility will have capacity for up to 40 die-cast machines and is expected to become operational by mid-2026. The company’s Chairman, Professor Lugee Li, will lead the new plant.
"Our new plant in Hangzhou will be state of the art utilizing the latest manufacturing technology," said Tony Chung, CEO of Liquidmetal Technologies, according to the press release.
Hangzhou, located in China’s advanced manufacturing corridor, is home to global companies like Foxconn and Alibaba, offering access to suppliers, subcontractors, and research institutions.
Liquidmetal Technologies specializes in developing parts made with bulk amorphous alloys, also known as bulk metallic glasses. These materials feature non-crystalline atomic structures that allow for injection-molding with micron-level precision and provide properties including high strength, hardness, corrosion resistance, and elasticity. Despite reporting 48% revenue growth in the last twelve months, the company remains unprofitable with negative EBITDA of $3.16 million. For deeper insights into LQMT’s financial health and growth prospects, including 12 additional ProTips, check out the comprehensive research report available on InvestingPro.
The announcement was detailed in a Current Report on Form 8-K filed with the Securities and Exchange Commission on Thursday.
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