Recon Announces some recent contracts and business progress

Rhea-AI Summary

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.

Positive

• Contracts worth RMB3.26 million secured for automation segment.
• Contracts totaling RMB2.39 million obtained for equipment and accessories.
• 100% increase in online transactions through FGS' digitization services YoY.
• Gross revenues have recovered to pre-2020 levels.

Negative

• None.

BEIJING, March 1, 2022 /PRNewswire/ -- Recon Technology, Ltd (NASDAQ: RCON) ("Recon" or the "Company") today announced several contracts signed recently by its domestic VIE companies and reported the progress on its business segments so far for the year 2022:

• For its automation business segment, the Company was awarded RMB3.26 million in contracts by the Shenhua Group in January and February.
• For its equipment and accessories business segments, the Company won RMB2.39 million in contracts in January and February, which include contracts for furnaces accessories and electric submersible progressing cavity pump; and
• Online transactions through FGS' digitization services for gas stations of for year 2022 have also been 100% increased year-to-year ("YoY").

Management Statement

Mr. Shenping Yin, Founder and CEO of Recon said, "Since the rise in oil and gas prices from the year 2021, our major clients, China's oil companies' performances have been improving, Recon's business is also benefiting from this trend. In terms of the overall orders and business volumes, the Company's gross revenues from its various operations have recovered to pre-2020 levels. Generally, while the first quarter is an off-season for Recon, we see many new opportunities and the orders secured for January and February have been doubled YoY. This is partly due to increased market demand, but also contributed to products and services constantly being improved and enhanced."

"In recent times, our management have received numerous inquiries from shareholders about the Company's market performance and business development. We greatly appreciate the concerns from shareholders and will always strive to maximize the company and the shareholders' long term value as our ultimate missions. From year 2022, we will increase our communication with investors and make regular disclosure about business progress and contracts information to help investors know in time what is happening for the Company. We also welcome the investors' timely inquiries and will always be glad to respond in a proper way."

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

Recon includes "forward-looking statements" within the meaning of the federal securities laws throughout this release. A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as "scheduled," "may," "will," "could," "should," "would," "expect," "believe," "anticipate," "project," "plan," "estimate," "forecast," "goal," "objective," "committed," "intend," "continue," or "will likely result," and similar expressions that concern Recon's strategy, plans, intentions or beliefs about future occurrences or results.

Forward-looking statements are subject to risks, uncertainties and other factors that may change at any time and may cause actual results to differ materially from those that Recon expected. Many of these statements are derived from Recon's operating budgets and forecasts, which are based on many detailed assumptions that Recon believes are reasonable, or are based on various assumptions about certain plans, activities or events which we expect will or may occur in the future. However, it is very difficult to predict the effect of known factors, and Recon cannot anticipate all factors that could affect actual results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors, including those factors disclosed under "Risk Factors" in Recon's most recent Annual Report on Form 20-K and any subsequent filings with the Securities and Exchange Commission.

All forward-looking statements are qualified in their entirety by the cautionary statements that Recon makes from time to time in its SEC filings and public communications. Recon cannot assure the reader that it will realize the results or developments Recon anticipates, or, even if substantially realized, that they will result in the consequences or affect Recon or its operations in the way Recon expects. Forward-looking statements speak only as of the date made. Recon undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances arising after the date on which they were made, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, Recon.

For more information, please contact:

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

View original content:https://www.prnewswire.com/news-releases/recon-announces-some-recent-contracts-and-business-progress-301492500.html

SOURCE Recon Technology, Ltd.

FAQ

What recent contracts has Recon Technology (RCON) signed?

Recon Technology signed contracts amounting to RMB3.26 million in its automation segment and RMB2.39 million in its equipment segment.

How has Recon Technology's revenue changed in 2022?

The company reported that its gross revenues have recovered to pre-2020 levels, benefiting from increased demand in the oil sector.

What improvements were noted in online transactions for Recon Technology?

Online transactions through FGS' digitization services have increased by 100% year-over-year.

Who is the CEO of Recon Technology (RCON)?

The CEO of Recon Technology is Shenping Yin.

When was the press release issued by Recon Technology?

The press release was issued on March 1, 2022.