Recon Technology Announces FGS' Cooperation Agreement with Henan CNPC and Alipay

Rhea-AI Summary

Recon Technology announced a cooperation agreement involving its subsidiary, Future Gas Station (FGS), with Henan CNPC and Alipay to develop a mini-program titled 'Hao Ke Le Jia' on the Alipay platform. This program aims to create a joint membership initiative allowing car owners in Henan province to access discounts on fuel and other benefits. Notably, Henan CNPC operates over 800 gas stations in the region, serving more than 20 million registered drivers. FGS has a proven track record, having served over 5.35 million car owners in Zhejiang since late 2017.

Positive

• FGS has entered a partnership with major entities, enhancing its market presence.
• The mini-program aims to attract car owners, potentially boosting transaction frequency.
• FGS's previous cooperation with Alipay in Zhejiang yielded positive operational results.

Negative

• None.

BEIJING, April 8, 2021 /PRNewswire/ -- Recon Technology, Ltd (NASDAQ: RCON), ("Recon" or the "Company"), today announced the Company's 51%-owned subsidiary, Future Gas Station (Beijing) Technology, Ltd. ("FGS"), has entered into a cooperation agreement (the "Agreement") with Henan sales branch of PetroChina Co. Ltd. ("Henan CNPC") and Alipay (Hangzhou) Information Technology Co., Ltd ("Alipay") to develop a mini program named "Hao Ke Le Jia" on Alipay's mobile application and to provide operation and maintenance services for the related joint membership program. This is the second time that FGS and Alipay cooperate since they began to provide similar service to Zhejiang sales branch of PetroChina Co. Ltd. ("Zhejiang CNPC") in October 2020.

According to the Agreement, Henan CNPC and Alipay will use their own resources and brands to jointly create a car owner membership program in Henan province which will be promoted through "Hao Ke Le Jia" mini program. FGS is obligated to provide related services including developing, operating and maintaining the mini program. The car owners who purchase or receive the membership through the mini grogram will be able to enjoy monthly refuel discounts, coupons for non-oil products sold at gas stations, and various membership benefits provided by Alipay, as well as convenient fueling service provided by Henan CNPC.

As of December 31, 2019, the number of gas stations owned by Henan CNPC has exceeded 800, the number of motor vehicles registered in Henan province has exceeded 23 million and the number of drivers registered in Henan province has exceeded 20 million.

Management Commentary

Mr. Yang Song, founder and CEO of FGS, said, "We are pleased to continue to work together with Alipay by providing membership operation services to Henan CNPC. We have already started similar cooperation with Alipay and Zhejiang CNPC and achieved positive operational results."

"The joint membership program provided by Alipay and PetroChina will enable car owners to enjoy continuous and stable discounted refuel service and comprehensive benefits package. In return, we expect this program will help CNPC maintain customers and increase the customers' transaction frequency."

Mr. Song continued, "FGS has been committed to providing digital operation solutions to China's gas station operators, improve the throughput rate during peak periods, enhance marketing efficiency and reduce marketing costs. Its solutions also provide an affordable and convenient refueling experience for vehicle owners. We are glad to extend our services to Henan province in partnership with Alipay. We plan to promote this model in other provinces in China."

Mr. Shenping Yin, founder and CEO of Recon, said, "We have witnessed many milestones achieved by FGS and the effective solutions provided by FGS' team. Since December 2017 when we started to invest in FGS, it has served more than 5.35 million car owners, with a cumulative refueling value of more than RMB4.63 billion in Zhejiang province. With the market expansion, we believe FGS will bring to the Company more benefits and potentials."

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, and its products and service are also well accepted by 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 recent agreement involving Recon Technology (RCON)?

Recon Technology's subsidiary FGS has partnered with Henan CNPC and Alipay to develop a mini-program for car owner membership in Henan province.

How many gas stations does Henan CNPC operate?

Henan CNPC operates over 800 gas stations in the Henan province.

What benefits will the mini-program offer car owners in Henan?

The mini-program will provide discounts on fuel, coupons for non-oil products, and other membership benefits.

What has been the impact of FGS's previous collaborations?

FGS's past cooperation with Alipay in Zhejiang served over 5.35 million car owners, resulting in a cumulative refueling value of more than RMB4.63 billion.