Recon Announces RMB4.08 Million Toxic Gas Alarm System Maintenance Contract with CNPC Yunnan Petrochemical

Rhea-AI Summary

Recon Technology Limited (NASDAQ: RCON) announced a RMB 4.08 million maintenance contract with CNPC Yunnan Petrochemical for a combustible toxic gas alarm system. The contract, valued at approximately US$ 637,500, spans four years and involves inspection, maintenance, and troubleshooting of over 3,000 instruments to ensure safe and stable operations. This recognition reflects Recon's expertise in automation instrumentation for the petroleum sector. The CEO expressed commitment to leveraging their experience for wider safety assurance in the oil and refining industry.

Positive

• Secured a long-term maintenance contract worth RMB 4.08 million (approximately US$ 637,500) with CNPC Yunnan Petrochemical.
• Contract involves maintenance of over 3,000 gas alarm instruments, enhancing operational safety.
• Reinforces Recon's reputation and expertise in the petroleum automation sector.

Negative

• None.

BEIJING, Aug. 23, 2021 /PRNewswire/ -- Recon Technology Limited (NASDAQ: RCON) ("Recon" or the "Company") today announced that through its subsidiary Nanjing Recon Technology Co., Ltd., the Company has won a maintenance contract for a combustible toxic gas alarm system (the "Contract") from China National Petroleum Corporation  Yunnan Petrochemical Company Limited ("CNPC Yunnan Petrochemical") . The total contract amount is RMB 4.08 million (approximately US$ 637,500) and the term is four years.

According to the Contract, Recon will be responsible for the inspection, maintenance and troubleshooting of more than 3,000 instruments and meters of the flammable and toxic gas alarm system of the whole plant of CNPC Yunnan Petrochemical to ensure that the production units of the whole plant are in good condition and the production work is safe, environmentally friendly and stable in continuous operation.

CNPC Yunnan Petrochemical is the first mega refining enterprise in southwest China, jointly invested by China National Petroleum Corporation ("CNPC"), YunTianHua Group and Saudi Aramco.

Management Statement

"We are delighted that our industry experience and high standard of service has been recognized by CNPC Yunnan Petrochemical," said Mr. Shenping Yin, a founder and CEO of Recon. "Winning this long-term maintenance contract with CNPC Yunnan Petrochemical is based on our in-depth knowledge of automation instrumentation dedicated to the petroleum industry and refining companies. Our staff assigned to the Yunnan Petrochemical project have at least 5 years of experience in maintaining flammable and toxic gas alarm systems. We have also passed a highly valuable capability assessment of inspection and maintenance by China Special Equipment Testing and Research Institute. Under the current environment, safety management has become an important component of risk control and corporate social responsibility for major oil and refining companies. We hope that we can fully utilize our experience and expertise to provide safety assurance to more enterprises in the oil and refining industry."

About Recon Technology, Ltd ("RCON")

Recon Technology, Ltd (NASDAQ: RCON) is China's first NASDAQ-listed non-state owned oil and gas field service company. Recon supplies China's largest oil exploration companies, Sinopec (NYSE: SNP) and The China National Petroleum Corporation ("CNPC"), with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measure for increasing petroleum extraction levels, reducing impurities and lowering production costs. Through the years, RCON has taken leading positions on several segmented markets of the oil and gas filed service industry. RCON also has developed stable long-term cooperation relationship with its major clients, and its products and service are also well accepted by clients. For additional information please visit: http://www.recon.cn/.

Forward-Looking Statements

Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, whether we will establish successfully cooperation with Huitong Dalian; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission ("SEC"), including our Annual Report on Form 20-F, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

For more information, please contact:

Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5799
Email: info@recon.cn 

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SOURCE Recon Technology, Ltd.

FAQ

What is the value of the contract announced by Recon Technology with CNPC Yunnan Petrochemical?

The contract is worth RMB 4.08 million, approximately US$ 637,500.

What services will Recon Technology provide under the new contract?

Recon Technology will inspect, maintain, and troubleshoot over 3,000 instruments for the gas alarm system.

How long is the maintenance contract with CNPC Yunnan Petrochemical?

The contract is for a term of four years.

What is the significance of this contract for Recon Technology?

This contract enhances Recon's reputation and showcases its expertise in the petroleum industry.

Which subsidiary of Recon Technology won the contract with CNPC Yunnan Petrochemical?

The contract was won through Recon's subsidiary, Nanjing Recon Technology Co., Ltd.