Recon Technology Announces FGS' 3-year Cooperation Agreement with Alibaba-backed Connected Car Company Banma

Rhea-AI Summary

Recon Technology, Ltd (NASDAQ: RCON) announced a three-year renewal of its cooperation agreement with Banma Network Technology Co., Ltd., effective May 1, 2021. The partnership focuses on integrating FGS's DT Refuel function with Banma's Smart Refuel application, allowing users to refuel at Petro China's gas stations through their vehicle's dashboard. This extension aims to enhance the refueling experience and is expected to facilitate FGS's service adoption across 800 new gas stations and reach 1.6 million new vehicle owners within two years.

Positive

• Renewed cooperation agreement with Banma for three years enhances strategic partnerships.
• Integration of DT Refuel with Smart Refuel improves customer experience at gas stations.
• Estimation of reaching 800 new gas stations and 1.6 million vehicle owners within two years.

Negative

• None.

BEIJING, May 5, 2021 /PRNewswire/ -- Recon Technology, Ltd (NASDAQ: RCON), ("Recon" or the "Company"), today announced the Company's subsidiary, Future Gas Station (Beijing) Technology, Ltd. ("FGS"), renewed its cooperation agreement dated March 18, 2018 (the "Agreement") with Banma Network Technology Co., Ltd. (the "Banma"), an Alibaba-backed connected car company focusing on autonomous intelligent car operating system development, for three years starting from May 1, 2021.

Pursuant to the Agreement, FGS integrates its self-developed DT Refuel function with Banma's Smart Refuel application, which is embedded into Banma's vehicle system, so Banma's care users could refuel at the gas stations of Petro China Co., Ltd. ("Petro China") through Banma's Smart Refuel. FGS and Banma aim to provide value-added services and better refueling experience to the vehicle owners through this long-term cooperation.

Co-founded by Alibaba Group Holding Ltd. (NYSE: BABA) and SAIC Motor Corp, Banma is an internet-connected vehicle solution provider in China. Banma's Smart Refuel application is based on AliOS, an Alibaba-developed operating system. The system enables the car control panel to serve as a gas station cashier. When a vehicle with Smart Refuel enters a Petro China's gas station, the car panel will automatically show the gas billing page. Because of the underlying DT Refuel function, the driver will be able to complete the payment on the screen without leaving the car.

Management Commentary

Mr. Yang Song, founder and CEO of FGS, said, "We focus on providing new technical application and data operation to gas stations, including thousands of gas stations of Petro China Co., Ltd. According to Banma's brand brochure, Banma's AliOS system has been installed by more than a million vehicles. The extension of cooperation between us and Banma will continue to upgrade our services associated with the concept of 'Smart Gas Station.' This extension of cooperation will also provide support to the Company's overall strategy and business planning. Through the cooperation with Banma, we estimate that within two years, FGS' solution will be utilized by 800 new gas stations and will cover 1.6 million new vehicle owners associated with these new gas stations."

About Future Gas Station (Beijing) Technology, Ltd. ("FGS")

Established in January 2016, FGS is a service company focusing on providing new technical applications and data operations to gas stations of oil companies such as PetroChina Co., Ltd. With its DT Refuel mobile application and related mini programs embedded into WeChat and Alipay, two mobile applications widely used in China, FGS provides solutions to gas stations to improve their operations and their customers' experience. FGS aims to facilitate the digital transformation of gas stations through integration of internet technique and algorithms, and to help transform gas stations into comprehensive service providers.

About Recon Technology, Ltd

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. For additional information please visit: http://www.recon.cn/.

Safe Harbor Statement

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, the effect of novel coronavirus and other health matters on target markets, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information, please contact:

Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5188
Email: info@recon.cn 

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SOURCE Recon Technology, Ltd.

FAQ

What is the significance of Recon Technology's agreement with Banma?

The agreement enhances the refueling experience for users by integrating advanced technology into gas station operations.

How long is the renewed cooperation agreement between RCON and Banma?

The renewed cooperation agreement is for three years, starting from May 1, 2021.

What technology will RCON provide through the Banma partnership?

RCON will provide its DT Refuel function integrated with Banma's Smart Refuel application.

How many new gas stations does Recon Technology aim to reach through its partnership with Banma?

Recon Technology aims to reach 800 new gas stations within two years.

What is the expected market impact of RCON's cooperation with Banma?

The cooperation is expected to enhance service offerings and customer experiences, potentially increasing market penetration.