Welcome to our dedicated page for Recon Technology, Ltd. news (Ticker: RCON), a resource for investors and traders seeking the latest updates and insights on Recon Technology, Ltd. stock.
Recon Technology, Ltd. (NASDAQ: RCON) is a prominent oilfield service company based in China, providing advanced hardware, software, and on-site services for the petroleum mining and extraction industry. As the first non-state owned Chinese company listed on NASDAQ, Recon supplies leading oil exploration companies like Sinopec and The China National Petroleum Corporation (CNPC) with cutting-edge automated technologies, efficient gathering and transportation equipment, and reservoir stimulation measures. These services aim to enhance petroleum extraction levels, reduce impurities, and lower production costs.
Recon operates in four primary segments: Automation Product and Software, Equipment and Accessories, Platform Outsourcing Services, and Oilfield Environmental Protection. The Automation Product and Software segment remains the largest contributor to the company’s revenue.
The company’s product offerings include equipment for oil and gas production and transportation, such as heating furnaces, burners, and a variety of packers for fracturing and sand prevention. Their automation systems, like the pumping unit controller and remote terminal units (RTUs), monitor natural gas wells and collect vital data, ensuring efficient operations and resource management.
Recon is also committed to sustainability and innovation. Recently, Recon signed a strategic partnership with Changxia Digital Energy Technology to develop intelligent energy solutions, including distributed photovoltaics, solar storage systems, and PV-to-electric vehicle charging stations. This collaboration aims to promote sustainable development within the petroleum and petrochemical sectors.
Financially, Recon faced challenges during fiscal year 2023, experiencing a decline in revenue due to industry changes and external impacts. However, the company remains optimistic about future growth, particularly within the oilfield services segment and broader energy sectors, including carbon-zero opportunities and alternative materials for petroleum products.
Recon’s commitment to innovation is further exemplified by their participation in the 2024 Plastics Recycling Conference in Grapevine, Texas. Here, they will present their solutions for low-value plastic chemical recycling, showcasing their dedication to providing green and low-carbon solutions for the energy industry.
In terms of recent developments, Recon received a letter from NASDAQ confirming their compliance with minimum bid price requirements, ensuring the continuity of their listing and trading on the NASDAQ Capital Market. Recon's ongoing efforts to maintain compliance and strategic partnerships highlight their resilience and forward-looking approach in a dynamic industry landscape.
Recon Technology, Ltd. (NASDAQ: RCON) reported a 16.3% decline in total revenue to RMB45.6 million ($6.6 million) for the first six months of fiscal 2023, compared to RMB54.4 million in 2021. Net losses increased to RMB29.9 million ($4.3 million), down from net income of RMB111.4 million ($17.5 million) in the prior year. Despite a decrease in gross profit by 9.5% to RMB13.1 million ($1.9 million), the gross margin improved from 26.7% to 28.8%. The company aims to tap into new markets and technologies, particularly in the plastics recycling sector, leveraging recent funding of approximately $8 million for expansion and R&D efforts.
Recon Technology, Ltd. (NASDAQ: RCON) has successfully closed a registered direct offering, raising approximately
On March 15, 2023, Recon Technology, Ltd. (NASDAQ: RCON) announced a securities purchase agreement with accredited investors to raise approximately $8 million through a registered direct offering. The agreement includes the sale of 10,002,500 Class A ordinary shares and warrants to purchase an equal number of shares. The pre-funded warrants will have an exercise price of $0.01 and the ordinary share warrants will be priced at $0.80, both exercisable immediately. The offering is set to close on or around March 17, 2023.
Recon Technology, Ltd (NASDAQ: RCON) announced plans to expand into the plastics chemical recycling industry, following its attendance at the 27th China Plastics Recycling Conference on February 28. This initiative aims to support a circular economy, addressing climate change and plastic pollution. The market potential for chemical recycling is vast, potentially worth hundreds of billions, making it a promising growth area. CEO Shenping Yin highlighted the increasing demand for recycled polymers and the necessity for sustainable practices. Recon's entry aligns with rising petroleum prices and aims to leverage its technical expertise for environmental benefit.
Recon Technology, Ltd (NASDAQ: RCON) has announced significant progress in developing a new energy-efficient electric pump through its subsidiary, Nanjing Recon Technology. This R&D project initiated in September 2021 aims to improve energy efficiency in oilfield operations. Preliminary lab data indicates a potential electricity saving of over 12%, outperforming traditional practices. The company expects to launch these pumps in the second half of 2023, with a projected price of approximately US$58,000 per unit. The technology could save clients around RMB100,000 (US$14,000) annually for each pump, appealing to oilfields looking to enhance efficiency.
Recon Technology, Ltd (NASDAQ: RCON) announced a RMB1.31 million contract to provide gas flares for oil and gas fields in Northwestern Qinghai, China, awarded to its subsidiary Beijing BHD Petroleum Technology Co., Ltd. This contract aims to manage volatile organic compounds (VOCs) released during oil processing, which harm human health and the environment. Since July 2022, Beijing BHD has secured RMB8.50 million in total revenue from various contracts, signaling progress in its operations within China's oilfield services sector.
Recon Technology, Ltd (NASDAQ: RCON) announced a significant contract valued at RMB3.97 million ($0.57 million) from a leading oil and gas company in China. This contract will see its subsidiary, Huang Hua BHD Petroleum Equipment Manufacturing Co. Ltd., provide high-efficiency heating furnaces and related maintenance services. Over recent quarters, HH BHD has generated RMB6.68 million ($0.96 million) in revenue from various contracts. The company emphasizes its commitment to delivering top-tier solutions across multiple industries, anticipating positive impacts on business performance.
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