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 on June 1, 2022, that it received a notification from Nasdaq about non-compliance with the minimum bid price requirement due to its shares trading below $1.00 for 30 consecutive days. Recon has 180 days until November 28, 2022, to regain compliance. Should the bid price rise above $1.00 for 10 consecutive days, Nasdaq will confirm compliance. A potential 180-day extension is available if compliance is not met by the deadline, allowing RCON to address this issue.
Recon Technology, Ltd (NASDAQ: RCON) has signed a 3-year service agreement with a domestic oilfield client in mainland China for oily wastewater treatment, valued at approximately RMB3.5 million annually. The agreement outlines the provision of treatment facilities and chemicals to ensure compliance with environmental standards. The company reports a significant growth trajectory in its oilfield environmental business, boasting a 544% year-over-year increase in revenue for the six months ending December 31, 2021. This development highlights Recon's commitment to expanding its environmental solutions in the oilfield sector.
Recon Technology, Ltd (NASDAQ: RCON) announced a strategic cooperation agreement with the Kunming Branch of China Minsheng Bank Corp. to enhance fuel purchasing via the bank's Cloud Wallet platform. This collaboration aims to direct customers to gas stations and provide preferential options for consumers through the DT Refuel application. The CEO highlighted successful past collaborations, noting over RMB 1.26 billion in transactions through Minsheng's services since 2019. This agreement is expected to attract more users and increase transaction volumes for DT Refuel.
Recon Technology, Ltd (RCON) reported a 116.2% increase in total revenues to $8.6 million for the first six months of Fiscal Year 2022, driven by a 605.9% surge in oily sludge and wastewater segments. The company achieved a net income of $17.5 million, a significant turnaround from a net loss of $10 million in the previous year. Gross profit remained stable at 26.7% of revenue. Despite increased operating expenses, including a 263.7% rise in general and administrative costs, management is optimistic about future growth opportunities as oil prices rise.
Recon Technology, Ltd (NASDAQ: RCON) announced multiple recent contracts and business advancements for early 2022. The automation segment secured RMB3.26 million in contracts from Shenhua Group, while the equipment segment gained RMB2.39 million. Additionally, online transactions via FGS' digitization services doubled year-over-year. CEO Shenping Yin noted improved performance from China's oil companies benefiting Recon, with gross revenues recovering to pre-2020 levels. The company aims to enhance investor communication and transparency moving forward.
Recon Technology Ltd (NASDAQ: RCON) has secured a RMB6.87 million contract with Dalian West Pacific Petrochemical Company Limited to provide operation and maintenance services for metering instruments over a three-year period. This contract highlights Recon's strong positioning in the energy sector, being the first NASDAQ-listed non-state oil and gas service company in China. The project aims to enhance the operation of alarms and flow meters essential for refinery production. The collaboration underscores Recon's commitment to leveraging intelligent IoT technology for improved service delivery.
On January 24, 2022, Recon Technology Limited announced that its subsidiary, Future Gas Station Technology Ltd., has launched the Carbon Neutral Box (CNB), enabling vehicle owners to achieve carbon neutrality based on refueling activities. Launched on January 18, 2022, 289 users have utilized the service, offsetting 23.57 tons of CO2. With 110,000 gas stations in China generating significant carbon emissions, this initiative represents a pivotal low-carbon consumption effort. The program aims to promote low-carbon product consumption and empower gas stations with innovative operational tools.
Recon Technology Limited (NASDAQ: RCON) has announced a 10% investment in Shandong Zhong You Yun Xin Information Technology Company, a PetroChina affiliate. This collaboration aims to accelerate the transition to clean energy with the launch of a pilot project in Shandong Province. Recon's updated energy solution involves an integrated microgrid for solar energy storage and charging, leveraging existing gas station infrastructure. CEO Shenping Yin highlighted the strategic partnership's potential to transform gas stations into integrated energy supply stations, enhancing operational efficiency while complying with national carbon-neutral goals.
Recon Technology, Ltd. (RCON) reported a challenging fiscal year 2021, with revenues declining by 27.1% to $7.4 million. The gross profit fell 63.2% to $1.1 million, and the gross profit margin slid to 15.1%, down 14.7 percentage points year-on-year. A net loss of $3.5 million was recorded, worse than the previous year. Despite these setbacks, management sees potential in new energy markets and has launched a solar-powered solution aimed at reducing CO2 emissions by 78%. Cash reserves rose significantly to $53.3 million, reflecting financing activity.
Recon Technology Limited (NASDAQ: RCON) announced a RMB9 million (approx. USD1.4 million) service contract with Yumen Oilfield Engineering Construction Co. for hazardous waste disposal at various oil production plants in Yumen Oilfield. The contract spans one year and involves the disposal of 6,000 tons of oily sludge. Gansu BHD, a subsidiary of Recon, holds a vital environmental permit and has invested RMB40 million in treatment capacity. Company leaders believe this contract reinforces their position in the oilfield environmental protection sector, which they see as a key growth area.
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