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Recon Technology Revenue and Profit Growth Continue at Double Digit Rate. Q3'10 Revenue Up 111%, Net Income Up 50%

PR Newswire - May 18 at 09:00

Company Symbols: NASDAQ-SMALL:RCON

Strong Results Reflect Continued Business Expansion

BEIJING, May 18 /PRNewswire-Asia-FirstCall/ -- Recon Technology, Ltd. (Nasdaq: RCON), a leading Chinese non-state-owned oil field services provider, today reported financial results for its FY &;10 third quarter ended March 31, 2010.

     Q3 FY &;10 Highlights      -- Revenue increased 111.2% to $3.85 million from $1.82 million in Q3 FY        &;09 due to the rapid development of our core business and expansion        into a new market.     -- Gross profit increased 96.5% to $1.72 million for Q3 FY &;10 from $0.87        million in Q3 FY &;09.     -- Income from operations rose 75.6% to $1.01 million compared with $0.57        million in Q3 FY &;09 due to an increase in sales.     -- Net income available for common shareholders was $0.66 million, an        increase of 50.1% from the same period of 2009.     -- Diluted EPS was $0.17, compared to $0.20 per diluted share in Q3 FY &;09,        reflecting an increase in shares issued associated with the company&;s        2009 IPO.     -- Gross margin was 44.7%, compared to 48.0% in Q3 FY &;09     -- Weighted average number of diluted shares outstanding was 4 million,        compared to 2.25 million in Q3 FY &;09.      First Nine Months FY &;10 Highlights     -- Revenue was $14.46 million, an increase of 59.0% over $9.09 million for        the nine months ended March 31, 2009.     -- Gross profit increased 74.4% to $6.26 million vs. $3.59 million for the        same period in 2009     -- Gross margin increased to 43.3% for the nine months ended March 31,        2010 from 39.5% for the nine months ended March 31, 2009.     -- Income from operations was $3.73 million, a gain of 59.8% from $2.33        million for the same period in 2009, primarily attributable to the        increase in sales.     -- Net income available for common shareholders was $2.56 million, an        increase of 42.5% over the first nine months of FY &;09.     -- Diluted EPS was $0.68, compared to $0.80 per diluted share for the        first nine months of FY &;09, reflecting an increase in shares issued        associated with the company&;s 2009 IPO.     -- Weighted average number of diluted shares outstanding was 3.76 million,        compared to 2.25 million for the nine months ended March 31, 2009.  

Liquidity and Capital Resources

The company&;s cash balance on March 31, 2010 was approximately $3.26 million. Recon had short-term debt to its internal management team of $1.1 million and no outside or long-term debt. Working capital was $16.6 million. Controlling stockholders&; equity totaled $15.5 million. The current ratio was 3.06, up from 1.90 on June 30, 2009. Net cash provided in financing activities totaled $9.0 million for the nine months ended March 31, 2010, which included the debt from the management team to supplement working capital and from the Company&;s IPO on July 30, 2009.

Management Commentary

Shenping Yin, Recon&;s Chief Executive Officer, said, "I am very pleased to see continued growth of our business. It is a strong credential of our capability to serve the increasingly sophisticated demand of our clients and to expand to new market area."

"Rising energy demand associated with China&;s continued economic growth, government initiatives to increase safety and security in the Chinese energy industry and focus by oil and gas field operators for digital operation are all positive indicators for Chinese oil field service providers," commented Mr. Yin.

"I am also happy to see the new 36 Guidelines issued on May 13th by Chinese State Council to expand market access for private investment in the monopolized sectors including upstream oil and gas exploration (Chinese version government document available at http://www.gov.cn/zwgk/2010-05/13/content_1605218.htm ) I believe we are well-positioned to leverage our industry expertise and established business relationships to identify and capitalize on the growth opportunities," concluded Mr. Yin.

The financial statements follow.

About Recon Technology, Ltd.

Recon Technology, Ltd is a non-state-owned oil field service company in China. The company provides services designed to automate the extraction of petroleum for Chinese oil and gas fields. The company has developed software and hardware to manage the oil extraction process in real-time. More information may be found at http://www.recon.cn or e-mail: recon@hawkassociates.com.

Recon&;s online investor kit, including an investment profile, press releases, current price quotes, stock charts and more is available at http://www.hawkassociates.com/profile/rcon.cfm. To receive notification of future releases via e-mail, subscribe at http://www.hawkassociates.com/about/alert/ .

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the company with the Securities and Exchange Commission.

All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

     For more information, please contact:      Investor Contact:      In USA      Hawk Associates      Julie Marshall      Frank Hawkins      Tel:   +1-305-451-1888      Email: recon@hawkassociates.com      In China      Recon Technology Ltd      Peggy Yuan      Investor Relations      Tel:   +86-10-8494-5799      Email: yuan.peggie@gmail.com                            RECON TECHNOLOGY, LTD                CONSOLIDATED STATEMENTS OF BALANCE SHEETS                                           Chinese Yuan (Renminbi) U.S. Dollars                                           June 30,    March 31,    March 31,                                             2009        2010         2010     ASSETS                                           (Unaudited)  (Unaudited)     Current assets     Cash and cash equivalents             2,727,735   22,292,927   $3,261,059     Trade accounts receivable, net of      allowance for doubtful accounts of      RMB604,953 ($88,570) and      RMB1,993,588($291,627),      respectively                        44,103,981   87,749,487   12,836,191     Trade accounts receivable-related      parties, net of allowance for      doubtful accounts of RMB350,498      ($51,316)and RMB0($0), respectively  7,458,302           --           --     Other receivable, net of allowance      for doubtful accounts of      RMB1,291,923 ($189,149) and      RMB158,968($23,254), respectively    2,048,015    6,565,432      960,406     Other receivable-related parties,      net of allowance for doubtful      accounts of RMB169,074 ($24,754)      and RMB0($0), respectively             507,541           --           --     Purchase advances, net of allowance      for doubtful accounts of      RMB1,239,234 ($181,435) and      RMB654,740($95,777), respectively    5,637,082   38,239,189    5,593,714     Purchase advances-related parties        73,028           --           --     Prepaid expenses                        338,072    1,116,579      163,336     Inventories                          10,710,018   13,152,071    1,923,914     Deferred offering costs               1,622,048           --           --     Total current assets                 75,225,822  169,115,685   24,738,621     Property and equipment, net of      accumulated depreciation of      RMB1,006,761 ($147,398) and      RMB1,085,419($158,778),      respectively                         1,406,876    1,505,068      220,165                                          76,632,698   170,620,753 $24,958,785      LIABILITIES AND SHAREHOLDERS&; EQUITY     Current liabilities     Trade accounts payable               15,601,101   17,582,246   $2,571,970     Trade accounts payable-related      parties                                189,744           --           --     Other payables                        1,767,005    2,607,624      381,449     Other payables-related parties           73,579           --           --     Deferred income                       2,361,605    4,184,521      612,121     Advances from customers                 910,215       25,650        3,752     Accrued payroll and employees&;      welfare                                393,074      296,635       43,392     Accrued expenses                        262,083      293,760       42,972     Taxes payable                         9,182,676   18,884,422    2,762,455     Short-term notes payable              3,143,792    3,602,881      527,037     Short-term notes payable-related      parties                              3,344,377    4,147,657      606,729     Deferred tax liabilities              2,365,225    3,694,658    $540,463     Total current liabilities            39,594,476   55,320,053    8,092,341     Redeemable common stock               1,434,342           --     Equity     common stock, $0.0185 U.S. dollar      par value, 25,000,000 shares      authorized; 2,139,203 and 3,951,811      shares issued and outstanding as of      June 30, 2009 and March 31, 2010       300,534      529,637       77,476     Additional paid-in capital            8,732,266   68,734,489   10,054,635     Appropriated retained earnings        1,687,772    3,286,861      480,809     Unappropriated retained earnings     18,043,692   33,720,232    4,932,671     Accumulated other comprehensive      income                                      --     (128,902)     (18,856)     Total controlling shareholders&;      equity                              28,764,264  106,142,317   15,526,736     Non-controlling interest, net of tax  6,839,616    9,158,383    1,339,709     Total equity                         35,603,880  115,300,700   16,866,444     Liabilities and Equity               76,632,698  170,620,753  $24,958,785                                RECON TECHNOLOGY, LTD     CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME                                           Chinese Yuan (Renminbi)                                         For the Nine Months ended                                                 March 31,                                              2010        2009                                          (Unaudited) (Unaudited)     Revenues      Hardware                              90,932,348  57,656,322     Service                                7,675,214   1,495,662     Software                                 226,496     226,496     Hardware - related parties                    --   2,143,590     Software - related parties                    --     649,572     Total revenues                        98,834,057  62,171,642     Cost of revenues                      56,007,688  37,608,500     Gross margin                          42,826,369  24,563,142     Selling and distribution expenses      7,557,188   4,760,272     General and administrative expenses    9,803,491   3,867,763     Operating expenses                    17,360,679   8,628,035     Income (loss) from operations         25,465,690  15,935,107     Subsidy income                         1,178,034   2,038,015     Interest income                            5,693      12,608     Interest expense                        (110,075)   (152,405)     Other income (expenses)                  471,914          --     Income before income taxes and non-      controlling interest                 27,011,256  17,833,325     Provision for income taxes            (7,189,566) (3,481,115)     Income from continuing operations     19,821,690  14,352,210     Income from operations of      discontinued subsidiaries, net of      income taxes                                 --    (442,547)     Net income                            19,821,690  13,909,663     Non-controlling interest, net of tax  (2,318,767) (1,574,687)     Accrued dividend for redeemable      common stock                                 --     (51,331)     Net income available for common      shareholders                         17,502,923  12,283,645     Basic earnings per share:     Income from continuing operations        RMB5.28     RMB6.71     Income from discontinued operations        RMB--    RMB(0.21)     Net income                               RMB5.28     RMB6.50     Net income available for common      shareholders                            RMB4.66     RMB5.74     Basic weighted average common stock     outstanding                            3,753,350   2,139,203     Diluted earnings per share:     Income from continuing operations        RMB5.27     RMB6.37     Income (loss) from discontinued      operations                                RMB--    RMB(0.20)     Net income                               RMB5.27     RMB6.18     Net income available for common      shareholders                            RMB4.65     RMB5.46     Diluted weighted average common stock      outstanding                           3,763,408   2,251,811     Comprehensive income(loss)      Net income                           19,821,690  13,858,332      Foreign currency translation       adjustment                             119,992          --     Comprehensive income (loss)           19,941,682  13,858,332      Comprehensive income (loss)      attributable to non-controlling      interest                              2,330,766   1,574,687     Comprehensive income (loss)      attributable to common shareholders  17,610,916  12,283,645                                            Chinese Yuan (Renminbi)  U.S. Dollars                                            For the Three Months  For the Nine                                                   ended          Months ended                                                 March 31,          March 31,                                              2010        2009        2010                                          (Unaudited) (Unaudited)  (Unaudited)     Revenues     Hardware                              24,578,963  12,124,602  $13,301,787     Service                                1,709,402      95,662    1,122,747     Software                                      --     226,495       33,132     Hardware - related parties                    --          --           --     Software - related parties                    --          --           --     Total revenues                        26,288,365  12,446,759   14,457,667     Cost of revenues                      14,538,530   6,467,134    8,192,930     Gross margin                          11,749,835   5,979,625    6,264,737     Selling and distribution expenses      1,534,090   1,422,598    1,105,482     General and administrative expenses    3,337,591     640,148    1,434,077     Operating expenses                     4,871,681   2,062,746    2,539,559     Income (loss) from operations          6,878,153   3,916,878    3,725,178     Subsidy income                            20,000     373,400      172,325     Interest income                              (79)        683          833     Interest expense                         (32,762)    (92,376)     (16,102)     Other income (expenses)                  389,668     (38,167)      69,033     Income before income taxes and non-      controlling interest                  7,254,979   4,160,419    3,951,267     Provision for income taxes            (2,082,801)   (230,006)  (1,051,706)     Income from continuing operations      5,172,178   3,930,413    2,899,561     Income from operations of      discontinued subsidiaries, net of      income taxes                                 --    (442,547)           -     Net income                             5,172,178   3,487,866    2,899,561     Non-controlling interest, net of tax    (647,827)   (456,265)    (339,194)     Accrued dividend for redeemable      common stock                                 --     (17,044)          --     Net income available for common      shareholders                          4,524,351   3,014,557   $2,560,367     Basic earnings per share:     Income from continuing operations        RMB1.31     RMB1.84        $0.77     Income from discontinued operations        RMB--   RMB(0.21)          $--     Net income                               RMB1.31     RMB1.63        $0.77     Net income available for common      shareholders                            RMB1.14     RMB1.41        $0.68     Basic weighted average common stock     outstanding                            3,951,811   2,139,203    3,753,350     Diluted earnings per share:     Income from continuing operations        RMB1.29     RMB1.75        $0.77     Income (loss) from discontinued      operations                                RMB--   RMB(0.20)          $--     Net income                               RMB1.29     RMB1.55        $0.77     Net income available for common      shareholders                            RMB1.13     RMB1.34        $0.68     Diluted weighted average common stock      outstanding                           4,002,298   2,251,811    3,763,408     Comprehensive income(loss)      Net income                            5,172,178   3,470,822    2,899,561      Foreign currency translation       adjustment                             119,992          --       17,553     Comprehensive income (loss)            5,292,170   3,470,822   $2,917,114     Comprehensive income (loss)      attributable to non-controlling      interest                                659,826     456,265      340,950     Comprehensive income (loss)      attributable to common shareholders   4,632,344   3,014,557   $2,576,164                         RECON TECHNOLOGY, LTD.              CONSOLIDATED STATEMENTS OF CASH FLOWS                                         For the Nine       For the Nine                                        Months ended       Months ended                                          March 31,          March 31,                                            2009                2010                                       Chinese Yuan  Chinese Yuan  U.S. Dollars                                         (Renminbi)   (Renminbi)      Cash flows from operating      activities:                        (Unaudited)  (Unaudited)  (Unaudited)     Net income (loss) available for      common shareholders                 19,821,690   14,352,210  $2,899,561     Adjustments to reconcile net income      to net cash provided by operating      activities:     Depreciation                            263,036      248,401       38,477     Share-based compensation expenses     1,178,701           --      172,423     Accrued dividend for redeemable      common stock                                --       51,331           --     Movement of deferred taxation         1,329,433           --      194,472     Changes in operating assets and      liabilities:                                --     Trade accounts receivable, net      (43,645,506) (20,455,176)  (6,384,562)     Trade accounts receivable-related      parties, net                         7,458,302   (1,630,676)   1,091,017     Other receivable, net                (4,517,417)    (501,661)    (660,818)     Other receivable related parties,      net                                    507,541      117,794       74,244     Purchase advance, net               (33,963,030)    (134,115)  (4,968,188)     Prepaid expense                        (778,507)    (354,169)    (113,882)     Inventories                          (2,442,053)   1,441,121     (357,229)     Trade accounts payable                1,981,145    3,528,582      289,806     Trade accounts payable-related      parties                               (189,744)    (965,826)     (27,756)     Other payables                          840,619   (1,767,525)     122,968     Other payables-related parties           73,579   (1,337,918)      10,763     Deferred income                       1,822,916   (1,508,896)     266,660     Advances from customers                (884,565)     107,345     (129,396)     Accrued payroll                         (96,439)          --      (14,107)     Accrued employees&; welfare                   --      (81,921)          --     Accrued expense                          31,677      (18,333)       4,634     Taxes payable                         9,701,746    6,044,796    1,419,193     Net cash (used in) provided by      operating activities               (41,506,877)  (2,864,636) $(6,071,719)      Cash flows from investing      activities:     Purchases of property and equipment    (371,162)    (781,397)     (54,294)     Proceeds from sale of property and      equipment                                  320           --           47     Cash paid from short-term notes      receivable                                  --   (1,356,496)          --     Net cash used in investing      activities                            (370,842)  (2,137,893)    $(54,248)      Cash flows from financing      activities:     Proceeds from stock issuance         60,209,057           --    8,807,516     Proceeds from short-term notes      payable                                459,089    1,831,655       67,157     Proceeds from short-term notes      payable-related party                  803,280      184,377      117,506     Net cash (used in) provided by      financing activities                61,471,426    2,016,032  $8,992,178      Effect of exchange rate fluctuation      on cash and cash equivalent            (28,514)          --       (4,171)     Net change in cash                   19,565,192   (3,037,828)  $2,862,040     Cash and cash equivalents at      beginning of period                  2,727,735    7,637,421      399,019     Cash and cash equivalents at end of      period                              22,292,927    4,599,593   $3,261,059       Supplemental cash flow information     Cash paid during the period for      interest                                    --           --           --     Cash paid during the period for      taxes                                   98,834      323,340       14,458  

SOURCE Recon Technology, Ltd.


 

RECON TECHNOLOGY, LTD

CONSOLIDATED STATEMENTS OF BALANCE SHEETS

 

                       
     Chinese Yuan (Renminbi)     U.S. Dollars  
     June 30,
2009
   December 31,
2009
    December 31,
2009
 
          (Unaudited)     (Unaudited)  
ASSETS                        
Current assets                        

Cash and cash equivalents

   ¥ 2,727,735    ¥ 44,987,580      $ 6,590,718   

Notes receivable

     —        500,000        73,250   

Trade accounts receivable, net of allowance for doubtful accounts of ¥604,953 ($88,570) and ¥995,488 ($145,840), respectively

     44,103,981      73,698,215        10,796,850   

Trade accounts receivable-related parties, net of allowance for doubtful accounts of ¥350,498 ($51,316) and ¥ 0($ 0), respectively

     7,458,302      19,048,800        2,790,665   

Other receivables, net of allowance for doubtful accounts of ¥1,291,923 ($189,149) and ¥677,664($99,278), respectively

     2,048,015      4,706,571        689,517   

Other receivables-related parties, net of allowance for doubtful accounts of ¥169,074 ($24,754) and ¥0($0), respectively

     507,541      116,615        17,084   

Purchase advances, net of allowance for doubtful accounts of ¥1,239,234 ($181,435) and ¥1,303,901($191,023), respectively

     5,637,082      12,870,544        1,885,545   

Purchase advances-related parties

     73,028      —          —     

Prepaid expenses

     338,072      737,502        108,045   

Inventories

     10,710,018      12,951,275        1,897,372   

Deferred offering costs

     1,622,048      —          —     
                         

Total current assets

     75,225,822      169,617,102        24,849,046   

Property and equipment, net of accumulated depreciation of ¥1,006,761 ($147,398) and ¥993,029($145,479), respectively

     1,406,876      1,369,566        200,643   
                         
     ¥ 76,632,698    ¥ 170,986,668      $ 25,049,688   
                         
LIABILITIES AND SHAREHOLDERS’ EQUITY                        
Current liabilities                        

Trade accounts payable

   ¥ 15,601,101    ¥ 27,720,220      $ 4,061,035   

Trade accounts payable-related parties

     189,744      85,876        12,581   

Other payables

     1,767,005      2,019,718        295,890   

Other payables-related parties

     73,579      375,300        54,982   

Deferred income

     2,361,605      5,040,141        738,385   

Advances from customers

     910,215      25,650        3,758   

Accrued payroll and employees’ welfare

     393,074      391,794        57,398   

Accrued expenses

     262,083      433,490        63,507   

Taxes payable

     9,182,676      12,978,260        1,901,326   

Short-term notes payable

     3,143,792      3,936,799        576,744   

Short-term notes payable-related parties

     3,344,377      1,724,075        252,578   

Deferred tax liabilities

   ¥ 2,365,225    ¥ 6,288,758      $ 921,308   
                         
Total current liabilities      39,594,476      61,020,080        8,939,492   
                         
Redeemable ordinary shares      1,434,342      —          —     
Shareholders’ equity                        

Ordinary shares, $0.0185 U.S. dollar par value, 25,000,000 shares authorized; 2,139,203 and 3,951,811 shares issued and outstanding as of June 30, 2009 and December 31, 2009 respectively

     300,534      529,637        77,592   

Additional paid-in capital

     8,732,266      68,292,476        10,004,904   

Appropriated retained earnings

     1,687,772      2,926,830        428,783   

Unappropriated retained earnings

     18,043,692      29,762,625        4,360,249   
Other comprehensive loss      —        (55,536     (8,136
                         
Total controlling shareholders’ equity      28,764,264      101,456,031        14,863,393   
Non-controlling interest, net of tax      6,839,616      8,510,556        1,246,804   
                         
Total shareholders’ equity      35,603,880      109,966,588        16,110,196   
                         
     ¥ 76,632,698    ¥ 170,986,668      $ 25,049,688   
                         

See notes to the consolidated financial statements.

F-2

 


Table of Contents

RECON TECHNOLOGY, LTD

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

 

                                         
     Chinese Yuan (Renminbi)     Chinese Yuan (Renminbi)     U.S. Dollars  
     For the Six Months ended
December 31,
    For the Three Months ended
December 31,
    For the Six Months ended
December 31,

2009
 
     2009     2008     2009     2008    
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
Revenues                                         

Hardware

   ¥ 66,353,385      ¥ 47,675,310      ¥ 47,081,742      ¥ 37,502,067      $ 9,720,826   

Service

     5,965,812        1,400,000        2,992,353        1,306,667        873,996   

Software

     226,496        649,573        —          649,573        33,182   
                                          
Total revenues      72,545,692        49,724,883        50,074,094        39,458,307        10,628,004   
Cost of revenues      41,469,158        31,141,366        25,396,611        22,338,687        6,075,266   
                                          
Gross margin      31,076,535        18,583,517        24,677,484        17,119,620        4,552,738   
                                          
Operating expenses                                         

Selling and distribution expenses

     6,023,098        3,337,674        3,863,886        2,606,958        882,389   

General and administrative expenses

     6,465,900        3,227,615        3,520,245        1,643,679        947,260   
                                          
       12,488,998        6,565,289        7,384,131        4,250,637        1,829,649   
                                          
Income from operations      18,587,537        12,018,229        17,293,353        12,868,984        2,723,089   
Subsidy income      1,158,034        1,664,615        1,131,709        1,134,700        169,653   
Interest income      5,772        11,925        4,096        8,465        846   
Interest expense      (77,313     (60,029     (36,069     (60,029     (11,326
Other income      82,246        38,167        8,774        38,167        12,049   
                                          

Income before income taxes and non-controlling interest

     19,756,277        13,672,906        18,401,864        13,990,286        2,894,311   

Provision for income taxes

     (5,106,765     (3,251,109     (4,414,087     (3,231,050     (748,145
                                          
Income from continuing operations      14,649,512        10,421,797        13,987,777        10,759,236        2,146,166   

Loss from operations of discontinued subsidiaries, net of income taxes

     —          (442,547     —          —          —     
                                          
Net income      14,649,512        9,979,250        13,987,777        10,759,236        2,146,166   
Non-controlling interest, net of tax      (1,670,940     (1,118,422     (1,433,624     (1,167,959     (244,794

Accrued dividend for redeemable ordinary shares

     —          (34,287     —          (51,521     —     
                                          

Net income available for common shareholders

   ¥ 12,978,572      ¥ 8,826,541      ¥ 12,554,153      ¥ 9,574,224      $ 1,901,371   
                                          
Basic earnings (loss) per share:                                         

Income from continuing operations

   ¥ 4.01      ¥ 4.87      ¥ 3.54      ¥ 5.03      $ 0.59   
                                          

Loss from discontinued operations

   ¥ —        ¥ (0.21   ¥ —        ¥ —        $ —     
                                          

Net income

   ¥ 4.01      ¥ 4.66      ¥ 3.54      ¥ 5.03      $ 0.59   
                                          

Net income available for common shareholders

   ¥ 3.55      ¥ 4.13      ¥ 3.18      ¥ 4.48      $ 0.52   
                                          

Basic weighted average ordinary shares outstanding

     3,656,277        2,139,203        3,951,811        2,139,203        3,656,277   
                                          
Diluted earnings (loss) per share:                                         

Income from continuing operations

   ¥ 3.96      ¥ 4.63      ¥ 3.46      ¥ 4.78      $ 0.58   
                                          

Loss from discontinued operations

   ¥ —        ¥ (0.20   ¥ —        ¥ —        $ —     
                                          

Net income

   ¥ 3.96      ¥ 4.43      ¥ 3.46      ¥ 4.78      $ 0.58   
                                          

Net income available for common shareholders

   ¥ 3.51      ¥ 3.92      ¥ 3.10      ¥ 4.25      $ 0.51   
                                          

Diluted weighted average ordinary shares outstanding

     3,698,981        2,251,811        4,046,573        2,251,811        3,698,981   
                                          
Comprehensive income (loss)                                         

Net income

     14,649,512        9,944,963        13,987,777        10,742,183        2,146,166   

Foreign currency translation adjustment

     (55,536     —          (3,763     —          (8,136
                                          

Comprehensive income (loss)

   ¥ 14,593,976      ¥ 9,944,963      ¥ 13,984,014      ¥ 10,742,183      $ 2,138,030   
           

Comprehensive income (loss) attributable to non- controlling interest

     1,670,940        1,118,422        1,433,624        1,167,959        244,794   

Comprehensive income (loss) attributable to common shareholders

   ¥ 12,923,036      ¥ 8,826,541      ¥ 12,550,390      ¥ 9,574,224      $ 1,893,236   
                                          

See notes to the consolidated financial statements.

 

F-3

 


Table of Contents

RECON TECHNOLOGY, LTD

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

                         
     Chinese Yuan (Renminbi)     U.S.Dollars  
     For the Six Months ended
December 31,
    For the Six Months ended
December 31,

2009
 
     2009     2008    
     (Unaudited)     (Unaudited)     (Unaudited)  

Cash flows from operating activities:

                        

Net income (loss) available for common shareholders

   ¥ 12,978,572      ¥ 8,826,541      $ 1,901,371   

Adjustments to reconcile net income to net cash provided by operating activities:

                        

Depreciation

     170,864        238,995        25,032   

Stock based payment

     736,688        —          107,925   

Minority interest

     1,670,940        1,118,422        244,794   

Accrued dividend for redeemable common stock

     —          34,287        —     

Allowance for short-term notes receivables

     —          2,704,594        —     

Unrealized gain or loss on marketable securities

     —          55,516        —     

Gain on currency remeasurement

     —          (7,492     —     

Movement of deferred taxation

     3,923,533        —          574,801   

Changes in operating assets and liabilities:

                        

Trade accounts receivable, net

     (29,594,234     (10,627,525     (4,335,580

Trade accounts receivable-related parties, net

     (11,590,498     (2,519,601     (1,698,018

Other receivable, net

     (1,484,297     (3,338,538     (217,451

Other receivable related parties, net

     (500,000     99,550        (73,250

Purchase advance, net

     (783,333     (1,285,685     (114,759

Prepaid expense

     (7,160,434     (588,270     (1,049,009

Inventories

     (399,430     521,981        (58,517

Trade accounts payable

     (2,241,257     (2,298,793     (328,346

Trade accounts payable-related parties

     12,119,119        5,215,817        1,775,461   

Other payables

     (103,868     (2,693,832     (15,217

Other payables-related parties

     (326,557     (91,143     (47,841

Deferred income

     —          (1,631,382     —     

Advances from customers

     2,678,536        (476,326     392,408   

Accrued payroll

     (884,565     (38,346     (129,590

Accrued employees’ welfare

     (1,281     (292,467     (188

Accrued expense

     —          299,734        —     

Taxes payable

     171,407        6,004,062        25,111   

Interest payable

     3,707,849        113,400        543,203   
                          

Net cash (used in) provided by operating activities

   ¥ (16,912,247   ¥ (656,501   $ (2,477,658
                          
       

Cash flows from investing activities:

                        

Purchases of property and equipment

     (133,554     (683,097     (19,566

Proceeds from sale of property and equipment

             (113,400     —     

Decrease in cash resulting from de-consolidation of variable interest entities

             (2,763,095     —     

Proceeds from short-term notes receivable

             170,000        —     
                          

Net cash used in investing activities

   ¥ (133,554   ¥ (3,389,592   $ (19,566
                          
       

Cash flows from financing activities:

                        

Proceeds from stock issuance

     60,209,057        —          8,820,677   

Proceeds from short-term notes payable

     1,806,464        758,991        264,648   

Repayment of short-term notes payable

             (478,576     —     

Repayment of long-term notes payable

             (357,737     —     

Proceeds from short-term notes payable-related party

     (2,633,759     (376,000     (385,848
                          

Net cash (used in) provided by financing activities

   ¥ 59,381,762      ¥ (453,322   $ 8,699,477   
                          
       

Effect of exchange rate fluctuation on cash and cash equivalent

     (76,116     —          (11,151
                          
       

Net change in cash

   ¥ 42,259,845      ¥ (4,499,415   $ 6,191,102   

Cash and cash equivalents at beginning of period

     2,727,735        9,034,560        399,598   
                          

Cash and cash equivalents at end of period

   ¥ 44,987,580      ¥ 4,535,145      $ 6,590,428   
                          
       

Supplemental cash flow information

                        

Cash paid during the period for interest

     —          —          —     

Cash paid during the period for taxes

     248,176        811,267        36,356   
  • 1D
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RCON
Current Price
Volume:
Bid Ask Day's Range
SureTrader
RCON News: Recon Technology Receives Patent for Oilfield Wastewater Treatment Device 12/06/2016 08:30:00 AM
RCON News: Current Report Filing (8-k) 11/25/2016 11:10:39 AM
RCON News: Quarterly Report (10-q) 11/14/2016 05:05:32 PM
RCON News: Recon Technology, Ltd. Reports First Quarter Fiscal Year 2017 Financial Results 11/14/2016 08:30:00 AM
RCON News: Notice of Effectiveness (effect) 10/11/2016 06:03:08 AM
PostSubject
#284   What a strange trading day. KOmani 12/08/16 07:16:05 PM
#283   RCON bullish 1.60 stocktrademan 12/08/16 09:24:34 AM
#282   If news with contracts come, $3 should be KOmani 12/01/16 01:29:21 PM
#281   The day to day manipulation is brutal but wickerman 12/01/16 01:25:57 PM
#280   After hours spread has tightened. KOmani 12/01/16 08:13:52 AM
#279   KABOOOOOOOOOOOOOOM $2 coming wickerman 11/30/16 11:51:36 AM
#278   RCON oh my +41% on heavy volume $$$ wickerman 11/30/16 11:50:42 AM
#277   Last year they had 4 pr's in Dec-Jan wickerman 11/30/16 08:41:50 AM
#276   The spread after hours is ridiculous and demonstrates KOmani 11/27/16 04:37:18 PM
#275   If you take a look at the chart, KOmani 11/27/16 04:26:12 PM
#274   With Thanksgiving over, let's see if the company KOmani 11/27/16 01:46:15 PM
#273   It really seems like someone stopped the run KOmani 11/22/16 11:32:41 AM
#272   News yes although I've already found a bunch wickerman 11/22/16 10:28:38 AM
#271   Seems like someone is buying up shares hoping KOmani 11/21/16 05:44:19 PM
#270   RCON is headed over $3 the best gainers wickerman 11/21/16 12:06:43 PM
#269   Shorts reeling in agony as they couldn't get KOmani 11/21/16 10:31:50 AM
#268   Good Monday Morning RCON board. KOmani 11/21/16 08:17:12 AM
#267   Decent 70k+ volume day here. KOmani 11/18/16 05:28:41 PM
#266   Pre-market kissed for 200 shares just like yesterday's KOmani 11/18/16 07:33:23 AM
#265   RCON will rise over $3 after that blowout wickerman 11/18/16 01:38:48 AM
#264   So, did this get squashed because of low KOmani 11/17/16 05:18:20 PM
#263   Interesting action today. KOmani 11/17/16 01:26:07 PM
#262   Last few minutes here, the price went ballistic. KOmani 11/16/16 05:46:17 PM
#261   $RCON every day grab a couple k shares beach_trades 04/04/16 09:14:26 PM
#260   Volume and green! Lone Wolf 01/27/16 03:54:27 PM
#259   Wow! Lone Wolf 01/12/16 10:50:56 AM
#258   $RCON recent news/filings stocktrademan 12/16/15 08:32:29 AM
#257   Caught this ol badger. Ha i love it. 85sticks 12/10/15 02:37:19 PM
#256   Breakout in process? I think and hope. 85sticks 11/24/15 01:19:05 AM
#255   Recon Technology (NASDAQ:RCON): FY15 EPS of -$0.33 Revenue of Timothy Smith 09/28/15 10:19:44 PM
#254   Low .70s where's that dumbfuck supertrades when you protagonist12 09/23/15 02:21:10 PM
#253   $1.38 MONEYMADE 08/31/15 03:15:15 PM
#252   Recon Technology (NASDAQ:RCON): FQ3 EPS of -$0.05 Revenue Timothy Smith 05/18/15 11:37:40 AM
#251   $RCON recent news/filings stocktrademan 04/10/15 10:15:32 AM
#250   $RCON DD Notes ~ http://www.ddnotesmaker.com/RCON stocktrademan 10/02/14 11:06:22 AM
#249   Double Top breakout. Price objective 6.31 Shaka_Zulu 09/30/14 06:02:50 AM
#248   ouch jaytea 08/05/14 03:38:46 PM
#247   Moving up nicely pennysmaster 07/28/14 01:17:49 PM
#246   Classic. AwolfmanH 06/16/14 12:31:47 PM
#245   Recon Technology, Ltd. [$RCON] due diligence stocktrademan 06/13/14 01:46:21 PM
#244   Looking for $6 soon... AwolfmanH 06/13/14 10:01:21 AM
#243   Can't wait for next week, shorty gonna be goosedrop 04/20/14 12:06:41 PM
#242   You still broke or nah? StockDuJout 02/27/14 07:15:51 PM
#241   Why Recon Technology (RCON) Hit a One-Year High Today AventadorJ 02/18/14 09:42:25 PM
#240   Uh oh, looky like da squeeze is on StockDuJout 01/31/14 10:23:48 AM
#239   RCON SELL SELL SELL SHORT THIS CIHINA TRASH!!!! Stockexpertpro 01/29/14 03:41:54 PM
#238   ,,,,,,,You called.....how we looking in AH MONEYMADE 01/28/14 10:10:46 PM
#237   Try n flip it, money to be made PennyBears 01/28/14 05:44:40 PM
#236   RCON got new contracts worth $1.2M and also AventadorJ 11/20/13 09:04:42 AM
#235   RCON regains the climbing momentum!!!!After making losses for AventadorJ 11/14/13 09:01:30 AM
PostSubject