Recon Technology, Ltd. (NASDAQ:RCON)

BEIJING, Jan. 23, 2019 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, environmental protection, electric power and coal chemical industries, today announced that the Company, through its 51% owned subsidiary Gansu BHD Environmental Technology Co., Ltd ("Gansu BHD"), has obtained a hazardous waste operating permit (the "Permit") issued by the Jiuquan Environmental Protection Bureau in Gansu province.

As previously disclosed by the Company, Gansu BHD purchased a 50 year land use right for a 26,235 square meter property to serve the oilfield sewage treatment needs of Yumen Oilfield Company, China's first petroleum production base and a PetroChina Co., Ltd. ("PetroChina") subsidiary. The comprehensive disposal treatment project, completed on December 14, 2018, has an annual processing capacity of 60,000 tons of oily waste, and is currently the only such treatment facility located in Yumen city.

The Permit issued on January 18, 2019 is on a temporary basis and will expire on April 17, 2019. Before the Permit expires, the Company will receive a formal permit if it demonstrates that its equipment and production lines can operate normally, as required by government regulations.

Mr. Guangqiang Chen CTO of Recon, stated, "We are excited that we have obtained a temporary hazardous waste operating permit from the local government and we are confident that we can exchange this for a formal permit by the end of March 2019. In addition, we are currently preparing to begin the operations of Gansu BHD and have purchased oily sludge from the field for further processing. We expect to generate RMB 60 million in revenue from this project in 2019 with a 50% gross margin."