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RECON TECHNOLOGY LTD-   NASDAQ:RCON

ABOUT RECON:

Recon Technology, Ltd. (Nasdaq: RCON) is a leading developer and marketer of automated oilfield services and products that enhance the extraction of petroleum in China. RCON markets these services and products to leading Chinese oil and gas companies, helping them increase efficiency and profitability in exploring, extracting, producing, processing, refining and transporting petroleum products from the nation's largest producing oil fields.

* Recon's automated systems monitor and collect oil production data remotely and in real-time, a recent industry advance that helps maximize extraction levels, minimize impurities in extracted petroleum, and significantly lowers production costs.

* Recon is an emerging leader in developing and applying the fracturing technology necessary to extract the abundant shale gas reserves in China. Shale, a clean-burning fuel, provides China with a vital and long-sought alternative to the massive toxic pollutants resulting from burning coal for energy production. Working closely with Baker Hughes and other companies, Recon is making rapid progress in liberating these shale gas reserves and facilitating their transport to China's major population centers.

* Recon's primary customers are CNPC (SEHK: 0135) and Sinopec (NYSE: SNP), two of China's three leading state-owned oil and gas companies. Recon has conducted automation projects for 80 percent of these companies' oil and gas fields.

* Recon maintains its leading-technology status via long-established relationships with many of China's foremost R&D institutions, research academies and petroleum industry labs, allowing the company to rapidly develop advanced products and technologies for oil and gas exploration sectors.

* Recon's proprietary technology is based on eight software copyrights, twenty-two product patents and four pending patents, giving the company a powerful intellectual property position. RCON is the first Chinese non-state owned oil and gas service company to be listed on Nasdaq.


INDUSTRY:

China is the world's largest consumer of petroleum products, largest importer of petroleum and fourth-largest producer of petroleum. In the last 20 years, China's demand for oil has more than tripled, while domestic production levels have increased only modestly. China has been a net importer of petroleum since 1983, creating a strong national goal of meeting as much of the country's domestic oil demand as possible.

Most oil fields in China, however, have now entered into the tertiary stage of oil recovery, at which oil extraction becomes increasingly difficult and inefficient. Thus, the demands for new technologies to improve oil extraction efficiency and reduce its cost are at an all-time high. Among these technologies is a new generation of real-time automated systems that dramatically increase the efficiency of extracting and refining petroleum products.

China also continues to face a massive and worsening air pollution issue due to a heavy reliance on coal for energy production. One solution could be the development of domestic Chinese natural gas supplies – which are clean-burning -- with shale gas being the most plentiful. The U.S. Energy Information Administration (EIA) recently determined that China has the world’s largest reserves of recoverable shale gas – approximately 1,115 trillion cubic feet. Unfortunately, extracting this gas and transporting it to needed locales has been an exceedingly slow and technologically daunting process. This problem is borne out by 2012 government data, showing 67 percent of China’s power generation emanating from burning coal and only 3 percent from natural gas.

Chinese government authorities, however, are increasing support and funding for technologies designed to facilitate the extraction of shale gas, with the objective of bringing it up to account for at least 8 percent of the nation’s power generation by 2030.

 
 

Recon Technology Reports Fiscal 2018 Third Quarter and First Nine Months Financial Results

 

BEIJING, May 15, 2018 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ:RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service and environmental protection, electric power and coal chemical industries, today announced its financial results for the third quarter and first nine months of fiscal year 2018, ended March 31, 2018.

Third Quarter Fiscal Year 2018 Financial Highlights (all comparable to the prior year period):

Total revenues for the third quarter of FY2018 increased by 181.2% to ¥16.6 million ($2.6 million).
Gross profit for the third quarter of FY2018 was ¥1.7 million ($0.3 million) compared to ¥1.08 million in FY2017.
Gross profit margin for the third quarter of FY2018 was 10.3%, which decreased by 8.0 percentage points compared to the third quarter of FY2017, largely due to a higher proportion of equipment sold at a lower price during the test-run period.
Net loss attributable to Recon for the third quarter of FY2018 was ¥10.1 million ($1.6 million), or ¥0.70 ($0.11) per basic and diluted share, compared to net loss attributable to Recon of ¥7.2 million, or ¥0.81 per basic and diluted share, for the same period of fiscal 2017.
Non-GAAP net loss attributable to common shareholders excluding certain non-cash expenses was ¥5.1 million ($0.8 million), or ¥0.35 ($0.06) per basic and diluted share, for the third quarter of FY2018, compared to non-GAAP net income attributable to common shareholders of ¥2.3 million, ¥0.26 per basic and diluted share, for the same period of last fiscal year.

First Nine Months of Fiscal Year 2018 Financial Highlights (all comparable to the prior year period):

Total revenues for the first nine months of FY2018 increased by 58.7% to ¥69.8 million ($11.1 million).
Gross profit for the first nine months of FY2018 was ¥7.8 million ($1.2 million). Gross profit margin for the first nine months of FY2018 was 11.1%, which decreased by 20.0 percentage points compared to the first nine months of FY2017.
Net loss attributable to Recon for the first nine months of FY2018 was ¥27.1 million ($4.3 million), or ¥2.73 ($0.43) per basic and diluted share, compared to ¥17.0 million, or ¥2.43 per basic and diluted share, for the same period of last fiscal year.
Non-GAAP net loss attributable to common shareholders excluding certain non-cash expenses was ¥10.5 million ($1.7 million), or ¥1.06 ($0.17) per basic and diluted share, for the first nine months of FY2018, compared to non-GAAP net loss attributable to common shareholders of ¥3.2 million, or ¥0.46 per basic and diluted share, for the same period of last fiscal year.

Management Commentary

Mr. Shenping Yin, founder and CEO of Recon stated, "Our market expansion efforts proceeded quite well for the past quarter as we continued to extend our furnaces markets to the chemical industry and industrial automation products requirements to coal chemical industry, bringing us increased revenue. We expect this trend to remain stable and we remain confident of a 30% increase in revenue for the whole fiscal year 2018 as mentioned in our annual letter to shareholders. Furthermore, our construction of waste-water and waste oil sludge treatment facilities has also advanced as scheduled. We believe this will help improve our operations and profit in the coming year."

Recent Developments

On April 09, 2018, the Company announced procurement bidding results from Shenhua Group Corporation Limited ("Shenhua Group") through Shenhua Logistics Group Corporation Limited ("Shenhua Logistics"), during the first 3 months of FY2018, to provide specified equipment and maintenance services for contracts with amount above ¥6.8 million, or approximately $1.1 million. The Company expects bids of ¥20 million to be achieved for the whole year 2018. As of the date of this press release, ¥9.93 million ($1.58 million) has been secured. Shenhua Group is a state-owed enterprise, founded in October 1995 with the approval of the State Council, pursuant to PRC Corporate Laws. Shenhua Group is a diversified energy enterprise concentrating on coal production, sales, electricity and thermal generation, coal liquefaction, coal chemicals, and railway and port transportation.

On January 22, 2018, the Company and certain institutional investors entered into a securities purchase agreement in connection with an offering, pursuant to which the Company agreed to sell an aggregate of 3,592,500 ordinary shares. The purchase price was $1.66 per ordinary share. The aggregate proceeds, after deducting fees to the Placement Agent and other offering expenses of about $0.5 million, were approximately $5.5 million.  

On December 15, 2017, the Company signed a subscription agreement with Future Gas Station (Beijing) Technology, Ltd ("FGS"). Pursuant to this agreement, Recon holds 8% equity interest of FGS. As of the date of this press release, Recon has invested ¥4.0 million in FGS.

On November 20, 2017, the Company entered into a securities purchase agreement with Yongquan Bi ("Mr. Bi"), pursuant to which Mr. Bi agreed to purchase an aggregate of 3 million unregistered restricted shares for $4.8 million, a per-share purchase price of $1.60. On January 19, 2018, the Company issued 3 million shares to Xinhaixin International Holdings Limited, Mr. Bi's wholly owned company.

Results of Operations

The following unaudited condensed consolidated results of operations which include the Company's wholly owned subsidiaries, their variable interest entities ("VIEs") and VIEs' subsidiaries. The VIEs are Nanjing Recon Technology Co. Ltd ("Nanjing Recon") and Beijing BHD Petroleum Technology Co, Ltd ("BHD"). BHD owns 100% of the equity interest of Huang Hua BHD Petroleum Equipment Manufacturing Co. LTD ("HH BHD"), 51% of the equity interest of Gansu BHD Environmental Technology Ltd ("Gansu BHD") and 55% of the equity interest of Qing Hai BHD New Energy Technology Co., Ltd. ("Qinghai BHD"). 

By this current report on Form 6-K, Recon has provided selected results for the third quarter and first nine months of fiscal year 2018, with details on its first nine months financial results in this report. 


Recon Announces Completion of First Stage of Oily Sludge Project in Yumen Oilfield, With Improvements in Project Design and Remarkable Budget Reduction
 

BEIJING, July 19, 2018 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ:RCON), ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced the completion of the first stage of its construction of a comprehensive disposal treatment project (the "Project") in Yumen city, Gansu province through its 51% subsidiary, Gansu BHD Environmental Technology Co., Ltd ("Gansu BHD"), which focuses on oilfield sewage treatment and oily sludge disposal projects. As previously disclosed by the Company, Gansu BHD purchased a 50 year land use right for a 26,235 square meter property to build the Project to serve the oilfield sewage treatment needs of Yumen Oilfield Company, China's first petroleum production base and a PetroChina Co., Ltd. ("PetroChina") subsidiary. The Project, which will have an annual processing capacity of 60,000 tons of oily waste, is the only such treatment facility located in Yumen city. As regulations prohibit the removal of such oily sludge from Gansu province, Gansu BHD is optimistic about the business opportunities for the Project, although it lacks a long-term agreement with Yumen Oilfield.

At this first stage of the Project, the construction of the bases and the major body of plants have been completed. The next stage will involve equipment installation and testing. In addition, because of the Company's implementation of improved project design, it estimates the total investment in the Project to decrease from RMB 100 million to RMB 40 million. The Company expects the Project to be operational by the end of the calendar year 2018 and to generate annual revenues for Gansu BHD of more than RMB 50 million, assuming full capacity.

Management Commentary

Mr. Guangqiang Chen, director and CTO of Recon Technology, commented, "We are pleased with our progress on our comprehensive disposal treatment project. Our search for new efficiencies has contributed to a 60% decrease in the expected investment in the project, from RMB 100 million to RMB 40 million. We have completed the construction of the bases and the major body of the plants as we prepare to install our equipment and begin testing. We expect the disposal treatment facilities to be operational by the end of this calendar year."

Mr. Chen continued, "Given the launch of China's new environmental law and increased enforcement of this and other environmental laws, we believe Recon is well positioned to innovate in a changing industry landscape that has given rise to demand for new and more efficient treatment methodologies. The oily waste produced from drilling, transportation and refining in the Yumen oilfield system remains a persistent issue and our project through Gansu BHD is a cutting-edge attempt to resolve this issue."

 

Recon Announces Update on Future Gas Station's New-Retail Business

BEIJING, July 30, 2018 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ:RCON), ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that Future Gas Station (Beijing) Technology, Ltd ("FGS"), of which Recon indirectly owns 8%, has officially launched smart vending machines to further expand its retail business.

Management Commentary

Mr. Yin Shenping, CEO of Recon Technology, Ltd commented, "We are very pleased that FGS has launched its smart vending machines as planned to continue expanding its new retail business. With the further liberalization of China's domestic gas market, major oil sales companies are transforming, developing and innovating the country's gas stations. As part of this evolution, the development of the non-oil segment of gas stations has become a strategic issue for major oil companies. We believe that FGS' smart vending machine model can help China National Petroleum Corporation ("CNPC") quickly improve its non-oil-product segment business development and facilitate the integration of new innovations for gas stations."

Mr. Yang Song, the founder of FGS, said, "Smart vending machines are a key component of our development and advancement. Our algorithms and DT fueling app allow users to directly select the products in the cabinet that they choose to purchase. After closing the door, the mobile application automatically completes the sale, either by debiting the user's account or by deducting accumulated rewards points. Currently, there are 4 sets of smart vending machines that can be used normally in the CNPC's location, with users opening the vending machine doors 2,500 times and placing more than 1,500 orders since the roll-out started approximately two weeks ago. In view of this early success, FGS plans to launch smart vending machines at more gas stations and office areas."

Mr. Yang Song continued, "In comparison to other existing unmanned shelf models, our smart vending machine sales can be automatically settled without the customer scanning the product barcode, which greatly enhances the customer's experience, saves the customer time and improves sales efficiency. This model on the requirements of the gas station business model, which prioritizes increasing the revenue of gas station products and shortening the customer's stay time. In order to encourage users to consume, we have also introduced a settlement system for rewards points redemption and cross-product category coupons. CNPC in Zhejiang has a total of 450 gas stations, including city stations, high-speed stations, and village stations. In our early rollout, we expect to cover all the city stations, some rural high-speed stations, a coverage rate reaching 50%, or approximately, 225 gas stations, with roll-out order based on station popularity. In the future, we will further cooperate with third-party companies to improve the efficiency of our reward points system and user activity, and strive to optimize retail consumption for gas station customers."

About Future Gas Station (Beijing) Technology, Ltd

Established in January 2016, FGS is a leading service company focusing on providing new technical application and data operation to gas stations of oil companies such as PetroChina Co., Ltd. With its DT Refuel mobile application, FGS provides solutions to gas stations to improve their operations and their customers' experience. FGS aims to increase the overall income of gas stations through integration of internet technique and new retail E-Commerce platform, and to help transform gas stations into comprehensive service providers.

 

For more information, please contact:

In China:

Ms. Liu Jia

Chief Financial Officer

Recon Technology, Ltd.

Phone: +86 (10) 8494-5799 

Email: info@recon.cn

In the United States:

Ms. Tina Xiao

Ascent Investor Relations LLC 

Phone: +1-917-609-0333 

Email: tina.xiao@ascent-ir.com

COMPANY WEBSITE: http://www.recon.cn/


 
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RCON News: Annual and Transition Report (foreign Private Issuer) (20-f) 09/28/2018 04:07:16 PM
RCON News: Recon Technology Reports Fiscal Year 2018 Financial Results 09/28/2018 08:00:00 AM
RCON News: Recon Signs USD $2.1 Million Contract with Xinjiang East Hope New Energy Co., Ltd. 09/19/2018 08:30:00 AM
RCON News: Amended Report of Foreign Issuer (6-k/a) 08/28/2018 04:03:06 PM
RCON News: Recon Announces Supplemental Details to Agreement to Increase Ownership of Future Gas Station to 43% 08/28/2018 08:00:00 AM
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#403   $RCON News Out Recon Announces Nonbinding Agreement to LivinLarge8 08/06/18 09:34:37 AM
#402   Thx for that!!! Really looking ready europtiger 07/31/18 06:54:33 PM
#401   50 day moving average crossing up through the LivinLarge8 07/31/18 06:51:00 PM
#400   round 2 coming here last time we hit $5.36 LivinLarge8 07/31/18 06:49:16 PM
#399   Recon Announces Update on Future Gas Station's New-Retail LivinLarge8 07/30/18 12:40:35 PM
#398   1.64 up moving now LivinLarge8 07/26/18 10:39:59 AM
#397   Adding here! :) AddiUpTrend 06/11/18 01:43:15 PM
#396   Lets go #RCON zendeli1 06/11/18 12:07:34 PM
#395   When /if they announce gas stations in China RandolRocketman 03/06/18 11:40:37 PM
#394   Seems like the chart was right. Good run RandolRocketman 03/06/18 11:37:36 PM
#393   Look at the chart, I think so kraken17 02/23/18 06:32:53 AM
#392   RECON TECHNOLOGY LTD RandolRocketman 02/14/18 11:23:34 AM
#391   $RCON Recon Technology Ltd (NASDAQ:RCON): Time For A $Pistol Pete$ 02/12/18 08:40:58 PM
#390   Bids super stacked under $1.25 weeeeee first goal make it happen 02/12/18 11:29:29 AM
#389   This is huge great earnings! Down from over make it happen 02/12/18 09:32:19 AM
#388   Wow - if this gets to $1 is marylandstockguy 02/01/18 02:34:16 PM
#387   PanickeeeeShort Coverring!Caaaaching!!! ~MulaGreen~ 01/18/18 09:45:56 AM
#386   Nope, might touch $2.35 though, then go over Full Contact Yoga 01/17/18 01:12:45 AM
#385   50% drop 2morrow yaboy520 01/16/18 10:27:36 PM
#384   May the year ahead be better than the Lone Wolf 01/16/18 05:01:17 PM
#383   Back in at $3.18 Penny Planet 01/16/18 03:55:00 PM
#382   RCON out second time at $3.54. cjstocksup 01/16/18 03:31:33 PM
#381   $10+ WE NEED MORE EYES !!! knrorrel 01/16/18 11:01:17 AM
#380   Thx lw!! Happy New year to you too All europtiger 01/16/18 10:56:31 AM
#379   Damn!!! RCON is flying now!! Happy New Year Lone Wolf 01/16/18 10:52:53 AM
#378   BOOMMM Tdash 01/16/18 10:47:38 AM
#377   Mega squeeeze on europtiger 01/16/18 10:12:59 AM
#376   Big players here? surfer44 01/16/18 10:12:27 AM
#375   looks like this will get to upper 5's Tdash 01/16/18 10:11:55 AM
#374   All out 4,20 That was quick Money lol europtiger 01/16/18 10:11:32 AM
#373   Beast europtiger 01/16/18 10:11:03 AM
#372   Sold more 3,94 Holding 20% of my Stack europtiger 01/16/18 10:10:11 AM
#371   Beautiful day, out for now, looking for reentry... Full Contact Yoga 01/16/18 10:08:14 AM
#370   I just Sold 40^ my stock 1,70 europtiger 01/16/18 10:07:08 AM
#369   out RCON at $3.10 on the second move cjstocksup 01/16/18 09:59:15 AM
#368   Leg up to hod coming europtiger 01/16/18 09:57:10 AM
#367   And some more 2,50's Lets see Stop in 2,18 europtiger 01/16/18 09:43:46 AM
#366   $RECON News is out: Recon Announces Cooperation with StockHighAlert- 01/16/18 09:41:48 AM
#365   Got me 2,70's as a starter europtiger 01/16/18 09:40:46 AM
#364   Nice AH Full Contact Yoga 01/04/18 05:10:14 PM
#363   That's pump noise...they're a Chinese gas company, nothing Full Contact Yoga 12/19/17 11:43:48 AM
#362   $RCON These guys are an actual technology company freeworld43ver 12/19/17 11:35:33 AM
#361   IBGR was a scam news pump, maybe not Full Contact Yoga 12/19/17 11:30:56 AM
#360   Look at what happened with Nexus Oil & freeworld43ver 12/18/17 03:52:02 PM
#359   Typical Chinese scam turd... Full Contact Yoga 12/07/17 11:49:49 AM
#358   OIL top priority for trump on visit and SCHNARZY 11/01/17 05:17:10 PM
#357   Here's a PR from one of my other surfer44 11/01/17 10:26:24 AM
#356   Junk bonoinvest 11/01/17 09:56:19 AM
#355   ?$RCON News Out Recon Holds Seminar to Promote LivinLarge8 10/31/17 09:15:39 AM
#354   RCON-type businesses should have strong government support. surfer44 10/24/17 11:59:51 PM
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