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) announced it secured a RMB6.73 million (approx. USD 0.94 million) contract to provide automation control and maintenance services for a gas generation plant in Sichuan, China. The contract, awarded to Nanjing Recon, includes daily maintenance of machinery and network systems to support production goals for a leading oil and gas company. This follows a previous contract worth RMB3.2 million (approx. USD 0.45 million) announced in October. The PR highlights Recon's ability to meet customer needs through tailored solutions.
Recon Technology, Ltd (NASDAQ: RCON) has announced the renewal of 'High-Tech Enterprise' status for its subsidiary, Nanjing Recon Technology Co., by the Jiangsu provincial government. This three-year designation offers various governmental incentives, including a reduced income tax rate of 15%. Nanjing Recon has invested over RMB12 million in R&D, representing over 10% of its annual sales, and achieved significant sales of high-tech products, totaling RMB18 million in 2021. The recognition underscores Recon's commitment to innovation and its capacity to transform R&D into commercial success.
Recon Technology, Ltd (NASDAQ: RCON) held a virtual investor call on November 10, 2022, to address shareholder questions regarding its business state and future plans. CEO Shenpin Yin highlighted that approximately 80% of future revenue would stem from oilfield-related services, with a stable RMB20 million ($2.9 million) from environmental services. The company anticipates a 20-30% growth in revenue, down from an initial 30% target, influenced by economic factors. The firm also regained compliance with Nasdaq requirements and currently holds $47 million in cash for potential mergers and acquisitions.
On November 8, 2022, Recon Technology, Ltd (NASDAQ: RCON) received confirmation from NASDAQ that it has cured its bid price deficiency and complies with all listing standards. This means that RCON's stock will continue to be listed and traded on NASDAQ. The company is recognized as China's first NASDAQ-listed non-state owned oil and gas field service firm, providing services to major clients like Sinopec and CNPC.
Recon Technology, Ltd (NASDAQ: RCON) announced an eight-year cooperation with Tianjin Anjie IoT Technology for electrical grid peak load leveling services. The partnership aims to leverage shared resources in China's northwest region to develop energy-saving projects and enhance technical consulting. Qinghai BHD, Recon's subsidiary, will manage customer development and promote Tianjin Anjie's services, while Tianjin Anjie provides marketing support and training. This collaboration addresses significant energy consumption needs in industries like aluminum and steel, potentially enabling substantial cost savings for clients.
Recon Technology, Ltd (NASDAQ: RCON) announced a virtual investor meeting scheduled for November 10, 2022, from 9:00 AM to 9:30 AM Eastern Time. Senior management will discuss the company's business strategies and outlook, with a Q&A session included. Investors can submit questions via email prior to the meeting or during the session. Recon is China's first NASDAQ-listed non-state owned oil and gas service company, providing advanced technologies to major clients like Sinopec and CNPC. A Form 6-K will disclose management's discussions post-meeting.
Recon Technology, Ltd (NASDAQ: RCON) reported strong financial results for the fiscal year ending June 30, 2022. Revenue surged by 74.8% to RMB 83.8 million ($12.5 million), driven by increased oil prices and demand for automation and environmental services. Gross profit rose by 169.4% to RMB 19.4 million ($2.9 million) with gross margins improving to 23.2%. Notably, net income shifted from a net loss of RMB 25.9 million to a profit of RMB 94.3 million ($14.1 million). The company anticipates continued growth in response to rising oil demand.
Recon Technology, Ltd (NASDAQ: RCON) has entered a 2-year service agreement with a domestic customer worth approximately RMB3.2 million for maintenance and overhaul services. This contract will run from October 1, 2022 to September 30, 2024, covering over 3200 safety instrumentations. CEO Shenping Yin stated that the company anticipates future revenue from this segment to exceed RMB20 million annually in fiscal year 2023. This agreement marks a significant step in Recon's focus on maintenance and safety services in China.
Recon Technology, Ltd (NASDAQ: RCON) announced the expansion of its cooperation with Hui Tong Tian Xia Petrochemical to launch new industry logistics solutions aimed at enhancing fuel management efficiency and promoting carbon neutrality. The agreement follows a previous partnership established in July 2021 and emphasizes addressing substantial fuel costs in China's logistics sector, projected at RMB280 billion in Q1 2022. The venture aims to develop a comprehensive online fuel management platform, leveraging G7's technologies to improve operational efficiency and sustainability in the logistics industry.
Recon Technology, Ltd (NASDAQ: RCON) provided an investor update on July 20, 2022, discussing business impacts from the pandemic and oil industry cycles. The company anticipates continued growth due to rising oil prices, with an expected average annual growth rate of 30% over the next three fiscal years. However, challenges persist, including slow customer budgeting cycles and the impact of the pandemic on new energy ventures. Despite share prices falling below $1, management aims to enhance profitability and shareholder returns without pursuing share consolidations or buybacks.
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