Recon Awarded RMB6.7 Million Contract to Provide Automation Control and Instrumentation Maintenance Services for China Gas Generation Plant

Rhea-AI Summary

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.

Positive

• Secured a contract worth RMB6.73 million (approx. USD 0.94 million) from a major oil and gas company.
• Strengthened reputation by following up with a previous contract of RMB3.2 million (approx. USD 0.45 million).
• The contract supports production goals, ensuring stable operations at the gas generation plant.

Negative

• None.

BEIJING, Nov. 30, 2022 /PRNewswire/ -- Recon Technology, Ltd (NASDAQ: RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service and environmental protection, electric power and coal chemical industries, today announced that Nanjing Recon Technology Co. ("Nanjing Recon") has been awarded a RMB6.73 million (approximately USD 0.94 million) two-year contract to provide automation control and instrumentation maintenance services for a gas generation plant operated by a top mainland China's oil and gas company.

Pursuant to the contract, Nanjing Recon, a variable interest entity of with contractual ties to a subsidiary of Recon Hengda Technology (Beijing) Co., Ltd., which is one of the Company's subsidiaries based in mainland China, will be responsible for the safety and orderly maintenance and oversight of the on-site machineries to ensure the timely completion of the China oil and gas company's production goals. The scope of Recon's tasks includes monitoring all instruments and meters, control valves, broadcasting, network communication, fiber optic communication and other daily maintenance of machineries and network systems at the production site located in China's Sichuan province. The contract involves both fixed maintenance fees and variable expenses on component replacement fees

Recon will also be in charge of repair works and provide emergency troubleshooting across platforms and channels to ensure smooth data transfer, power supply and stable remote connection on the production site.

Management Statement

Mr. Shenping Yin, Founder and CEO of Recon commented: "Following previous RMB3.2 million (approximately USD0.45 million) contract obtained in October, we are delighted to announce another milestone achieved by our dedicated team to secure the recognition and service contract from one of China's leading oil and gas companies. With our ability to effectively meet the bulk orders, we have been able to cater to the precise needs of our valuable customers. Being a quality conscious company, we customize the plants according to the specifications provided by our customers to achieve high performance, low maintenance costs with a longer functional life.

About Recon Technology, Ltd ("RCON")

Recon Technology, Ltd (NASDAQ: RCON) is the People's Republic of 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 within several segmented markets of the oil and gas filed service industry. RCON also has developed stable long-term cooperation relationship with its major 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 press 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-F and any subsequent half-year financial filings on Form 6-K filed 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:

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

Investor Relations
Janice Wang
Wealth Financial Services LLC
Phone: +86 13811768559
             +1 628 283 9214
Email: services@wealthfsllc.com 

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SOURCE Recon Technology, Ltd

FAQ

What is the value of the contract awarded to Recon Technology?

The contract awarded to Recon Technology is worth RMB6.73 million (approximately USD 0.94 million).

When was the contract awarded to Nanjing Recon?

The contract was announced on November 30, 2022.

Who is the contract for?

The contract is for a gas generation plant operated by a leading oil and gas company in China.

What services will Recon provide under the new contract?

Recon will provide automation control and instrumentation maintenance services at the gas generation plant.

What was Recon's previous contract before the recent award?

Recon's previous contract was valued at RMB3.2 million (approximately USD 0.45 million), awarded in October.