Recon Technology, Ltd. (NASDAQ:RCON)

BEIJING, May 5, 2020 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company") today announced it signed a $2.8 million engineering and construction service subcontract with Grand Energy Development Limited on a heavy oil transportation system project (the "Project") in Garraf oilfield in Iraq for the services that Recon has provided. Pursuant to the subcontract, Recon shall carry out all the engineering design services, provide the technical support to the procurement, construction, commissioning activities and provide the training services of the heavy oil transportation system project.

Garraf oilfield is located in the province of Thi Qar, Iraq, approximately 5km north-west of Al-Refaei city and 85km north of Nasiriya city. The oilfield is 17.5km long and 5.5km wide. It is estimated to hold 1.3 billion barrels of oil reserves. Based on the Final Development Plan approved by the Government of Iraq in 2018, the oilfield is undergoing further development in stages to achieve crude oil production of 230,000 barrels per day by the end of 2020.

As part of the Project, the heavy oil pipeline with a total intended capacity of 275,000 barrels per day will be built to support the Garraf production target. By providing the services under the Project, Recon has played an important role in building the heavy oil pipeline.

"With advanced technique and wide experiences in the automation and digitalization of oil and gas industry, Recon has a relatively competitive advantage in the engineering design and construction businesses in oilfield segment," Mr. Shenping Yin, co-founder and CEO of Recon said. "With the successful completion of the project, we expect to construct more oilfield projects and hope to help more oilfields reduce costs and maintain yields at a healthy level in the near future."

NEW YORK, March 23, 2020 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company") today announced the operation result of DT Refuel mobile application ("DT Refuel"), which is developed by the Company's subsidiary Future Gas Station (Beijing) Technology, Ltd ("FGS"). The single-day Gross Merchandise Value ("GMV") of DT Refuel has hit a new high of $2.19 million (RMB15.32 million) on March 18, 2020.

DT Refuel acts as an e-commerce platform aiming at improving the refueling experience of car owners. It allows users to buy oil products and groceries and pay the fuel through their phones. It also provides navigation and enables users to query traffic violation through the application to make their daily lives easier.

As of March 19, 2020, DT Refuel has a total of 3.76 million registered users. Among them, 3 million users have paid refueling through the application at least once, and 1.46 million users have paid refueling through the application more than once.

From January 1 to March 19, 2020, DT Refuel's total GMV was $57.18 million (RMB400.3 million), approximately equaling its total GMV of the first half in 2019. Its total GMV increased $19.68 million (RMB137.79 million) or 257.44% to $27.33 million (RMB191.31 million) year-over-year in January 2020 from January 2019. Its total GMV increased $3.58 million (RMB22.08 million) or 65.26% to $9.07 million (RMB63.5 million) year-over-year in February 2020 from February 2019. From March 1 to March 19, 2020, its total GMV was $20.78 million (RMB145.49 million), already 175% more than the total GMV in March 2019.

"Since the launch of DT Refuel in January 2018, the most active user has refueled his car over 800 times through the application so far, a great example interpreting that we have provided customers with a convenient and practical refueling platform," said Mr. Yang Song, the founder of FGS. "As the work in China begins to resume on a more normal scale, the daily GMV of DT Refuel has shown robust growth. By providing the convenient drive-through option, DT Refuel provides better protection for car owners and gas station workers during the COVID-19 outbreak. The car owners do not need to leave their cars or open the windows while refueling, therefore reduce the risk of cross-infection."

"Recon has expanded business operations into the downstream sectors of the oil and gas industry such as FGS. It has found opportunities during the recent drop in oil prices," said Mr. Shenping Yin, co-founder and CEO of Recon. "By investing in FGS, we diversify the risks of other businesses affected by the price of oil and expect to benefit from its advanced digital operations. Given the rising GMV of DT Refuel, we are confident that this project can bring more value to Recon in the future."

NEW YORK , March 18, 2020 /PRNewswire/ -- Recon Technology, Ltd. (Nasdaq: RCON) ("Recon" or the "Company"), today announced its financial results for the first six months of fiscal year 2020.

First Six Months of Fiscal 2019 Financial:

Total revenues for the six months ended December 31, 2019 decreased by 28.1% to $4.4 million ( RMB30.4 million ).
Total cost of revenues for the six months ended December 31, 2019 decreased by 31.8% to $2.6 million ( RMB18.4 million ).
Gross profit for the six months ended December 31, 2019 was $1.7 million ( RMB12.0 million ). Gross profit margin for the six months ended December 31, 2019 was 39.4%, an increase of 3.4 percentage points compared to the six months ended December 31, 2018 .
Net loss attributable to Recon for the six months ended December 31, 2019 was $1.0 million ( RMB6.7 million ), or $0.22 (RMB1.51) per basic and diluted share, compared to RMB10.1 million , or RMB2.72 per basic and diluted share, for the six months ended December 31, 2018 .

Management Commentary

Mr. Shenping Yin , co-founder and CEO of Recon stated, "Ever since the year 2019, our management has been focusing on cash management and operating risk control, expanding our business structure from traditional oilfield service to some other energy sectors with higher margin and opportunities. As a result, for the six months ended December 31, 2019 , the cash position and overall operation results were improved, and the total loss was narrowed. Besides, as our oily sludge treatment production was temporarily postponed by late acceptance inspection, the revenue from oilfield environmental protection was not recognized. We expect the production will be enabled and revenue to be earned later this year."

Mr. Yin continued, "Due to the coronavirus disease 2019 outbreak, our business has slowed down in the short term. We believe the outbreak will affect our operation result from the beginning of calendar year 2020 to date and in the whole fiscal year 2020. However, we don't expect a significant impact on the Company's operation and financial results in the long run."

NEW YORK, March 4, 2020 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company") today announces that the Company's subsidiary, Future Gas Station (Beijing) Technology, Ltd ("FGS") is cooperating with the Zhejiang subsidiary of The China National Petroleum Corporation ("CNPC Zhejiang") to provide special discounts to medical staff registered in Zhejiang Province when they refuel at CNPC Zhejiang gas stations through DT Refuel mobile application developed by FGS till the end of 2020. Zhejiang medical staff who go to Hubei province, the epicenter of the epidemic, to provide medical support during the coronavirus disease 2019 ("COVID-19") outbreak can enjoy a 20% discount of gasoline, and other Zhejiang doctors and nurses can enjoy a 5% discount. Zhejiang medical staff can also enjoy some other discounts for selected items available in CNPC Zhejiang's chain stores through DT Refuel.

According to Bureau of Statistics of Zhejiang Province, as of the end of 2018, there were 191,000 licensed physicians and 202,000 registered nurses in Zhejiang. FGS is responsible for verifying the identity and qualification documents submitted by the medical staff through DT Refuel.

"This is our way to show respect to the medical staff and to say thank you for their contributions to fight COVID-19. We help CNPC Zhejiang launch this promotion within a very short time to better serve their customers. As of today, more than 4,000 Zhejiang medical staff and their family member have registered at DT Refuel and benefited from this promotion since last week," said Mr. Yang Song, the founder of FGS. "In addition, during the COVID-19 outbreak, our solution of drive-through provides a safe choice for general public to refuel without leaving their cars to reduce the risk of getting infection. We're glad our technology and platform bring a real convenience to the society."

"We take enterprise social responsibility very seriously. This promotion is a part of our environmental, social and governance (ESG) activities," said Mr. Shenping Yin, co-founder and CEO of Recon. "We will continue to devote and invest in ESG activities."

NEW YORK, Jan. 13, 2020 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company") today announced the cooperation between its 43%-owned subsidiary, Future Gas Station (Beijing) Technology, Ltd ("FGS") and Xinglin Gas Station, a gas station in Jiangsu Province. The cooperation was established in October 2019 with the term of two years, aiming to reduce operating costs and boost the overall revenues of Xinglin Gas Station.

Pursuant to the cooperation, FGS provides Xinglin Gas Station the internet marketing service through its DT Refuel mobile application which is also a data-based intelligent marketing tool. The service includes building a complete Customer Relationship Management system that allows more efficient data management and smart data-driven decision making. FGS also provides precision marketing service based on consumer behaviors to reduce operating costs, and facilitates marketing cooperation with third parties to increase gas station revenues. FGS charges 0.5% of the transaction amount as operation and technical service fees.

For the 3 months ended December 31, 2019, Xinglin Gas Station reported that 4,387 users had traded approximately $0.45 million (RMB 3,124,023) through DT Refuel. The average daily transaction amount was approximately $5,510 (RMB 38,568) and the percentage of fuel transactions was 43%.

"FGS' intelligent platform helps us better know and serve our customers, enhance our competitiveness to catch up state-owned gas stations," said Mr. Zhirong Zhang, the owner of Xinglin Gas Station. "It allows us to make smart marketing decisions meanwhile reducing work intensity. Most importantly, it has helped us reduce operation costs and increase overall income by more than 10%."

"There are more than 110,000 gas stations in China, about half of them are state-owned," said Mr. Yang Song, the founder of FGS. "Xinglin Gas Station is one of our first attempts outside Zhejiang Province and one of the gas stations that are not state-owned. We expect to work with 3,000 gas stations in 2020, with an annual transaction amount of over $1.5 billion and a service income of over $4.5 million."

"The upstream sectors of the oil and gas industry have been our strategic focus, but we are glad to see more opportunities from downstream sectors, such as gas stations," said Mr. Shenping Yin, co-founder and CEO of Recon. "We are actively bringing more strength into these sectors which present more value to our shareholders."

NEW YORK, Jan. 2, 2020 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company") today announced its subsidiary Nanjing Recon Technology Co., Ltd. ("Nanjing Recon") won the bid to build the automation system for PetroChina Jidong Oilfield Company ("Jidong Oilfield"). The winning price is RMB 9.5 million (approximately $1.36 million) per year, for a three-year construction period from January 1st, 2020 to December 31st, 2022.

The current bidding price includes compensation for predetermined materials, services and other fees to compete each year's project. Pursuant to the bidding document, the materials bought by Nanjing Recon will be reimbursed by Jidong Oilfield with a 20% discount of the predetermined price under some temporary circumstances, so the total consideration will be reduced accordingly. The Company expects that this reduction will not be material to the winning price.

The oil & gas industry is transitioning toward automation to minimize human labor in the oil & gas process. The automated oilfield receives data from numerous instrumented sources, runs the data through algorithms and simulation models, and makes decisions with or without humans in the decision loop.

"Recon is one of the companies leading the digital transformation in the oilfields. Our automation system can help oilfields reduce more than 90% labor cost and enhance their production efficiency at the production site," Mr. Shenping Yin, co-founder and CEO of Recon said. "We expect there is a 20% growth in our automation business this year. In order to maximize productivity, reduce costs, and minimize risks, we are continuously improving machine-learning algorithms and cloud-based software suite, meanwhile increasing adoptions of Internet of Things (IoT) in the oilfields."

NEW YORK, Dec. 26, 2019 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company") announced today that the Company's Board approved on December 10, 2019 to effect a reverse stock split of the Company's ordinary shares at the ratio of one-for-five with the market effective date of December 27, 2019.

The objective of the reverse stock split is to enable the Company to regain compliance with the NASDAQ Marketplace Rule 5550(a)(2) and maintain its listing on Nasdaq.

Beginning with the opening of trading on December 27, 2019, the Company's ordinary shares will trade on the NASDAQ Capital Market on a split-adjusted basis, under the same symbol "RCON" but under a new CUSIP Number, G7415M124.

The reverse stock split will reduce the number of ordinary shares issued and outstanding from approximately 23,049,639 to approximately 4,609,928 (subject to adjustment due to the effect of rounding fractional shares into whole shares). The authorized number of ordinary shares will be reduced by the same one-for-five ratio to 20,000,000.

As a result of the reverse stock split, each five pre-split ordinary shares outstanding will automatically combine and convert to one issued and outstanding ordinary share without any action on the part of the shareholder. No fractional ordinary shares will be issued to any shareholders in connection with the reverse stock split. Each shareholder will be entitled to receive one ordinary share in lieu of the fractional share that would have resulted from the reverse stock split.

NEW YORK, Dec. 19, 2019 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company") today announced Gan Su BHD Environmental Technology Co., Ltd ("Gan Su BHD"), 51%-owned subsidiary of the Company's VIE affiliate, signed a one-year sludge treatment agreement with Sinopec Huabei Oilfield Branch Oil Extraction First Factory ("Huabei Oilfield").

According to the agreement, Huabei Oilfield engages Gan Su BHD to dispose of the oily sludge of the Pingliang Industrial Zone. Gan Su BHD shall bag, transfer, and dispose of oily sludge pursuant to national safety and environmental protection requirements. The total fee is calculated by multiplying the actual transshipment sludge treatment tonnage by the unit price per ton (RMB 2,145, or approximately $306). The Company estimates that the oily sludge amount to be disposed during one year is approximately 2,000 tons.

Oily sludge is one of the most significant solid wastes generated in the petroleum industry. It has been estimated that one ton of oily sludge waste is generated from every 500 tons of crude oil processed. Oily sludge disposal will positively reduce the volume of hazardous petroleum sludge from storage tanks, and therefore reducing environmental pollution.

"Recon's mission is not only to promote the oilfield production but also to protect public safety and the environment," Mr. Guangqiang Chen, co-founder and CTO of Recon said. "In addition to signing this agreement with Huabei Oilfield, we have also reached other deals with other oilfields, such as Yumen Oilfield. We expect that these agreements can bring our company more than $1 million in income during 2020."

NEW YORK, Nov. 22, 2019 /PRNewswire/ -- Recon Technology, Ltd. (RCON) ("Recon" or the "Company"), today announced that its 51% subsidiary, Gan Su BHD Environmental Technology Co., Ltd ("Gan Su BHD"), officially started operations this month in Yumen City, Gansu Province by providing oily sludge treatment services to an oil production plant. Focusing on oily sludge treatment and disposal projects, Gan Su BHD reported daily processing capacity of 102 tons and has processed more than 2,000 tons of sludge so far.

In November, Gan Su BHD provided transportation and treatment services to Laojunmiao Oil Production Plant of Yumen Oilfield Company of the China National Petroleum Corporation ("Yumen Oilfield Company"), including transporting 2,000 tons of oily sludge from the temporary solid waste storage site to the disposal site, and treating the oily sludge to meet the requirements of national environmental laws and regulations.

Gansu Province is a landlocked province in Northwestern China with a petroleum reserve of 700 million tons. Yumen City is a city in Western Gansu Province and is best known for its oil production. From 80 years ago when it was founded till now, Yumen Oilfield Company has explored accumulated proven oil reserves of 193 million tons. Currently it maintains an annual output of around 400,000 tons.

As previously disclosed by the Company, Gan Su BHD purchased a 50-year land use right for a 26,236square meters property to build a comprehensive disposal treatment plant (the "Plant") to serve the oilfield sludge treatment needs of Gansu Province. The Plant, which can process 60,000 tons of oily sludge per year, so far is the only such treatment facility located in Yumen City.

"Gan Su BHD is meant to pioneer the sludge treatment technology and serve the first step in the oilfield environmental protection sector. With greater environmental protection needs deriving by increased enforcement of environmental laws, we expect the Plant will generate annual revenue for more than $ 10 million," Mr. Guangqiang Chen, co-founder, and CTO of Recon said. "We believe our technology can help oilfields strengthen the workforce, reduce cost, improve environmental performance and achieve the environmental, social and governance ("ESG") objectives. These advanced technologies can also bring long-term benefits to our shareholders and strategic partners."

 

NEW YORK, Nov. 22, 2019 /PRNewswire/ -- Recon Technology, Ltd. (RCON) ("Recon" or the "Company"), today announced that its 51% subsidiary, Gan Su BHD Environmental Technology Co., Ltd ("Gan Su BHD"), officially started operations this month in Yumen City, Gansu Province by providing oily sludge treatment services to an oil production plant. Focusing on oily sludge treatment and disposal projects, Gan Su BHD reported daily processing capacity of 102 tons and has processed more than 2,000 tons of sludge so far.

In November, Gan Su BHD provided transportation and treatment services to Laojunmiao Oil Production Plant of Yumen Oilfield Company of the China National Petroleum Corporation ("Yumen Oilfield Company"), including transporting 2,000 tons of oily sludge from the temporary solid waste storage site to the disposal site, and treating the oily sludge to meet the requirements of national environmental laws and regulations.

Gansu Province is a landlocked province in Northwestern China with a petroleum reserve of 700 million tons. Yumen City is a city in Western Gansu Province and is best known for its oil production. From 80 years ago when it was founded till now, Yumen Oilfield Company has explored accumulated proven oil reserves of 193 million tons. Currently it maintains an annual output of around 400,000 tons.

As previously disclosed by the Company, Gan Su BHD purchased a 50-year land use right for a 26,236square meters property to build a comprehensive disposal treatment plant (the "Plant") to serve the oilfield sludge treatment needs of Gansu Province. The Plant, which can process 60,000 tons of oily sludge per year, so far is the only such treatment facility located in Yumen City.

"Gan Su BHD is meant to pioneer the sludge treatment technology and serve the first step in the oilfield environmental protection sector. With greater environmental protection needs deriving by increased enforcement of environmental laws, we expect the Plant will generate annual revenue for more than $ 10 million," Mr. Guangqiang Chen, co-founder, and CTO of Recon said. "We believe our technology can help oilfields strengthen the workforce, reduce cost, improve environmental performance and achieve the environmental, social and governance ("ESG") objectives. These advanced technologies can also bring long-term benefits to our shareholders and strategic partners."

NEW YORK, Nov. 15, 2019 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ:RCON) ("Recon" or the "Company"), today announced that Sinopec Huabei Oilfield Branch Oil Extraction First Factory ("Huabei Oilfield"), a client of Recon's wholly-owned subsidiary Beijing Bright Petroleum Technology Co., Ltd ("Beijing BHD"), recently received a wastewater test report, showing all the indicators of the sample wastewater at its wastewater treatment station are qualified. Beijing BHD provided sewage treatment and reinjection technology services to Huabei Oilfield, aimed to ensure that the treated wastewater is up to standard. The excellent performance of Beijing BHD's sewage treatment technology is expected to bring more contracts and produce more profit for the Company.

According to the report issued by a third-party testing company, all the indicators are qualified and comply with the relevant national environmental monitoring technical standards and the requirements of Huabei Oilfield. The necessity of treatment of oilfield wastewater represents not only serious operational issues but also a major environmental challenge to all oil producers. Increased regulatory requirements amidst the need for greater environmental protection drive oilfields to utilize professional products and services to meet the new standards. As a total solution provider to petroleum companies, Recon has developed an oilfield wastewater treatment device to improve the effectiveness of sewage treatment, reduce infrastructure investment and operating costs for oil companies.

"Our services helped Huabei Oilfield treated 35,000 cubic meters of wastewater per month and sustainably generated more than $100,000 monthly revenue for Recon. We are confident with our sewage treatment technology and our Environmental, social and governance management, which is ESG strategy," Mr. Shenping Yin, co-founder, and CEO of Recon stated. "With excellent results in sewage treatment, Huabei Oilfield plans to adopt our technology in the treatment of sewage sludge, and we expect to sign more contracts in the future to fulfill both social impact and environmental benefits. We will leverage our technical capabilities and experience in the oilfield production industry and to further enhance our leading position in China's oilfield environmental protection industry for the benefit of shareholders' interests."

NEW YORK, Nov. 8, 2019 /PRNewswire/ -- Recon Technology, Ltd. (RCON) ("Recon" or the "Company"), today announced that the Company's subsidiary, Future Gas Station (Beijing) Technology, Ltd ("FGS"), has entered into a strategic cooperation agreement (the "Agreement") with Zhejiang Branch of Ping An Property & Casualty Insurance Company of China, Ltd. ("Ping An Property Insurance"), to combine the data management capabilities of FGS and marketing capabilities of Ping An Property Insurance to facilitate digital transformation of gas stations in Zhejiang Province.

"Ping An Auto Owner" App provided by Ping An Property Insurance will cooperate with the DT Refuel App provided by FGS under the Agreement. As of September 30, 2019, the "Ping An Auto Owner" App had over 80 million registered users and had over 20 million monthly active users, topping the list of auto service Apps in China.

In this cooperation, the DT Refuel App will provide the Application Programming Interface (API) to allow the "Ping An Auto Owner" App's users using digital payments to refuel their vehicles and buy oil products without waiting in line and improve their experience. DT Refuel App will analyze users' spending habits to help "Ping An Auto Owner" App in enhancing marketing efficiency, reducing marketing costs, and to better serve various users.

"We are pleased to form the strategic partnership with FGS, a leading data operation company in the oil industry," said Mr. Dong Su, General Manager of Zhejiang Branch of Ping An Property & Casualty Insurance Company of China, Ltd., "FGS' strong capabilities in data management can help us improve customer service and make more profit. We will actively explore cooperation in other areas of business innovation."

"We are very pleased to establish our cooperation with Ping An Property Insurance, and together promote gas stations' digital transformation," said Mr. Yang Song, the founder of Future Gas Station. "The sales through the DT Refuel App reached $32 million in October and we believe the "Ping An Auto Owner" App can bring more traffic to our platform to accelerate our market expansion. As we continuously refine the data ecosystem to facilitate applications of the Internet of Things and big data technology, we expect further increases in user engagement with our system."

"We are delighted that we invested in FGS and we are excited about the cooperation between FGS and Ping An Property Insurance in Zhejiang Province," said Mr. Shenping Yin, co-founder, and CEO of Recon Technology, Ltd., "Zhejiang Province is just a beginning as we expect that FGS' operation will expand into more provinces in China in the coming months. We believe FGS will lead the digital innovation of gas stations and derive considerable income for Recon and our shareholders."

NEW YORK, Nov. 4, 2019 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield services and environmental protection, electric power and coal chemical industries, today announced that it engaged Dragon Gate Investment Partners ("DGIP") to lead an investor relations program including but not limited to distributing press releases and attending roadshows.

"In our fiscal year 2019, we reported strong growth and historically high revenue since our IPO," said Mr. Shenping Yin, co-founder and CEO of Recon, "Our board and management team believe it is an appropriate time to embark upon a more proactive strategic investor relations program to enhance our U.S. visibility and develop local partners in the U.S. We believe DGIP's expertise can help us build a transparent and trusted communication channel with our investors."

"Recon Technology Inc. has been a NASDAQ listed company since 2009. As a China-based independent solution integrator in the oilfield service, the company can uniquely bridge the U.S. and Chinese oil and gas industries," said Ms. Lijie Zhu, Managing Director of DGIP, "We are glad to assist Recon to better serve the interests of its shareholders by enhancing its transparency."

BEIJING, July 8, 2019 /PRNewswire/ -- Recon Technology, Ltd. (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 the Company's 43%-owned subsidiary, Future Gas Station (Beijing) Technology, Ltd. ("FGS"), has entered into a deep cooperation agreement for smart gas stations (the "Agreement") with Zhejiang sales branch of PetroChina Co. Ltd. ("Zhejiang CNPC") and Alipay (Hangzhou) Information Technology Co., Ltd ("Alipay") to cooperate on a smart gas station project (the "Project"). The Agreement was signed on June 6, 2019 and is effective for one year.

Pursuant to the Agreement, all the parties plan to cooperate on the Project by basing on the gas stations of CNPC in Zhejiang, combining the gas station resources of Zhejiang CNPC, the software, the hardware and the e-voucher capabilities of FGS and the digital technology and marketing capabilities of Ant Financial Services Group (operator of Alipay) to use on the gas stations. The purpose is to improve the refueling rates of the gas stations during peak hours, boost marketing efficiency, reduce marketing costs, and promote the Project to other provinces and gasoline companies across China. If necessary, the subsidiaries of the parties will sign another specific cooperation agreement.

Management Commentary

Mr. Shenping Yin, co-founder and CEO of Recon stated, "We are pleased to announce this cooperation agreement with Alipay and Zhejiang CNPC as we closely align our objectives with the national internet plus strategy for building smart cities. We hope that these efforts can help highlight FGS' cutting age operational and technological capabilities as we work hard to promote the viability of smart gas stations."

Mr. Yang Song, founder of FGS stated, "We have been serving Zhejiang CNPC and cooperating with Alipay for a year. We are so inspired by the Agreement as it is the best return for our persistence and hard work exploring effective smart gas station solutions. So far, our DT Refuel application has more than 2 million users in Zhejiang Province, our daily Gross Merchandise Volume ("GMV") in Zhejiang Province has been above RMB 5 million from June 2019 and our accumulated GMV in Zhejiang Province since our operation has been above RMB 1 billion. We have also earned a net profit. Our prepaid refueling functionality under which a customer can enter a monetary amount that he/she would like to refuel in our DT Refuel application or authorized platform, has been fully acknowledged by CNPC and it staff for its role reducing labor intensity and improving work efficiency and the customer experience. We will actively promote our service and application in other provinces in China and gas stations beyond CNPC through cooperation with Alipay to set up the digital basis for gas stations in China. We will also explore a possible way to establish a '5 km consumption circle centered around gas stations' to better serve the consumers and to improve our business model."

BEIJING, June 25, 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 the Company has entered into an exclusive 24-month sales representation agreement (the "Agreement") with Valvitalia S.p.A. ("Valvitalia"), a leading Italian producer of equipment for measuring, filtering, and regulating fluids, and gases serving customers in oil and natural gas, water, petrochemical, utilities markets worldwide, to promote Valvitalia products to China Petroleum Engineering & Construction Corporation ("CPECC").

Pursuant to the terms of the Agreement, Valvitalia has granted Recon the exclusive right to sell Valvitalia products to CPECC, a Chinese subsidiary of China National Petroleum Corporation ("CNPC") and specialized in oil engineering, manufacturing, construction and lump-sum contracting.

Management Commentary

Mr. Shenping Yin, co-founder and CEO of Recon, stated, "We are proud to collaborate with the industry-leading Valvitalia. We plan to promote Valvitalia valves and other products to CPECC' oilfield projects around the world as we endeavor to provide the highest possible level of service to our oil field clients. Valvitalia currently has its products installed in 109 countries, commiserate with its long history of success serving industrial markets across the world, and we hope CPECC and its end clients will benefit the innovation and high quality that are emblematic of the Valvitalia way of doing business." 

BEIJING, April 25, 2019 /PRNewswire/ -- Recon Technology, Ltd. (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 the Company is now managing the operations of its variable interest entities ("VIEs") solely through its Beijing subsidiary, Recon Hengda Technology (Beijing) Co., Ltd. ("Recon BJ").

In order to streamline its operations, the Company signed new VIE agreements that are similar to the old VIE agreements with its VIEs, Nanjing Recon Technology Co., Ltd. and Beijing BHD Petroleum Technology Co., Ltd. The Company took this action because it has been solely operating through its Beijing office in recent years. Upon the effectiveness of the new VIE agreements, the old VIE agreements signed with Recon Hengda Technology (Beijing) Co., Ltd. ("Recon BJ") were terminated. Then Recon JN was dissolved. The Board of Directors approved the VIE transfer and the dissolution as disclosed on February 21, 2019. Before and after the VIE transfer and the dissolution, the Company effectively controls its VIEs. Recon BJ is a wholly owned subsidiary of the Company located in Beijing, China and prior to dissolution Recon JN was a wholly owned subsidiary of the Company located in Shandong, China.

Management Commentary

Mr. Shenping Yin, co-founder and CEO of Recon stated, "We are very pleased to have concluded this reorganization to manage our operation more efficiently. In late 2016 we set up our wholly owned subsidiary, Recon BJ, in Beijing to accommodate our management team, which was entirely located in Beijing. As a result, maintaining the office for our wholly owned subsidiary, Recon JN, in Jining, Shandong, was suboptimal and our Board of Directors agreed to dissolve Recon JN in February 2019. We completed the transfer of contractual relations from Recon JN to Recon BJ on April 1, 2019 and the dissolution of Recon JN on April 10, 2019. The transfer was done smoothly and the continuance of our operation was not interrupted. We will keep conducting our business as always and expect no negative impact of the transfer on our operation."

BEIJING, Feb. 27, 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 its financial results for the first six months of fiscal year 2019.

Management Commentary

Mr. Shenping Yin, co-founder and CEO of Recon stated, "During the first six months of our 2019 fiscal year, our total revenues decreased from RMB53.2 million to RMB42.3 million as compared to the same period last year, largely because of the discontinuation of our temporary business in low-margin equipment and accessories offerings which we conducted in the same period last year. We did not conduct this business this year as our new factories are in stable operation and we are allocating our resources to more effective business. However, our gross profit and gross margin increased from the same period last year, primarily because of our automation product and software and oilfield environmental protection segments. Our operational results were improved as we continue to focus on higher margin business."

Mr. Yin continued, "As our operations improved and loss narrowed during this period compared to the same period in 2018, we continue to maintain our prior expectation for fiscal year 2019 to achieve up to RMB 101 million in revenue because of the rapid development of our China Energy Investment Corporation ("China Energy") projects and our launch of several new factories and business lines. As of today, we have received orders of RMB 33.38 million from China Energy and the total value of the contracts with China Energy which we will perform or are performing exceeds RMB 19 million."

BEIJING, Feb. 14, 2019 /PRNewswire/ -- Recon Technology, Ltd. (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's 75% subsidiary Qing Hai BHD New Energy Technology Co., Ltd. ("Qinghai BHD") has achieved a long-term vote of confidence in its energy management contract ("EMC") services through its 10-year contract with Qinghai Jiajie Property Management Co., Ltd. ("Jiajie"), a local property management company in Qinghaiprovince. The new services are helping Jiajie save about RMB 13,000 (approximately USD1,925) in monthly gas fees.

Qinghai BHD signed a contract (the "Contract") with Jiajie on August 15, 2018. Pursuant to the Contract, Qinghai BHD agreed to provide Jiajie with energy-saving services including energy-saving furnace equipment implementation planning, energy-saving equipment production, installation and commissioning, and energy-saving equipment maintenance during the project operation. The heating period is from October 15 to April 15 of each year during the term of the contract. Under the Contract, Qinghai BHD is entitled to receive 80% of the saved gas fees for 10 years.

Mr. Guangqiang Chen, CTO of Recon, stated, "This contract marks our entry into EMC services, and we are pleased with our strong start. Our extensive industry experience has enabled us to provide cost-effective technology as we optimize the usage of energy solutions. Our most recent updates indicate that the cost saving to Jiajie has been about RMB 13,000 per month since we began running the project in November 2018, while Qinghai BHD benefits from 80% of the total saving, or RMB 10,400 per month. Total investment for this contract was about RMB200 thousand, and our benefit from the overall contract period is expected to be about RMB 600,000, which is three times our investment. With this sample project, we expect it will be more convincing and convenient for us to get new customers. We're confident to achieve about 50 more contracts for year 2019."

BEIJING, Feb. 4, 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 won an additional 2 bids totaling approximately RMB 2.3 million (approximately USD 0.35 million) to procure and import customized instruments for the coal chemical business of China Energy Investment Corporation ("China Energy") through Shenhua Logistics Group Corporation Limited ("Shenhua Logistics").

Previously Shenhua Logistics was a subsidiary of Shenhua Group Corporation Limited ("Shenhua Group"), which was merged into China Energy with another group company in 2017. As of today, the Company has won bids totaling RMB 33.38 million (approximately USD 4.96 million) from China Energy (including the bids from Shenhua Group). The Company expects the total bids for 2019 from the coal and electronic power segment of China Energy to reach RMB 36 million (approximately USD 5.35 million) and up to RMB 50 million (approximately USD 8.91 million).

Mr. Shenping Yin, co-founder and CEO of Recon stated, "We are pleased to continue to win bids in the competitive Chinese energy market. Our work with China Energy highlights our expansion in a new service as we leveraged our technological knowhow and comprehensive services to provide exceptional value for our client. Our successful provision of automation solutions to the coal chemical industry demonstrates our improved vendor system and our robust service capabilities. We hope that we can build on these successes, in addition to the RMB 2.3 million we were recently awarded. We estimate that we will be rewarded with RMB 36 million for the total bids from China Energy in 2019, as we continue to innovate and demonstrate the effectiveness of our solutions in the energy sector."

BEIJING, Jan. 29, 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's 43%-owned subsidiary, Future Gas Station (Beijing) Technology, Ltd ("FGS"), has entered into a strategic cooperation agreement (the "Agreement") with Censtar Science & Technology Corp., Ltd. ("Censtar"), to add prepaid refueling functionality to FGS' improved DT Refuel application. This new refueling functionality offers convenience to customers and payment security to gas stations. Censtar is the leading enterprise providing complete equipment solutions and management systems to gas stations in China, with approximately 40% market share in the Chinese market. The Agreement is scheduled to run through January 9, 2021, and covers implementation of the protocols and software associated with the prepayment functionality and upgrading and retrofitting fuel pumps for compatibility.

FGS has updated the DT Refuel app to introduce the fuel prepayment option into China. Although fuel prepayment is common in the United States, it is a relatively uncommon phenomenon in China. The prepayment protocol allows customers to set a monetary amount to refuel in the DT Refuel app, which then generates a unique order number and authorizes and secures payment using the customer's chosen credit card or third-party mobile and online payment platform, such as Alipay. When the customer enters the order number at the fuel pump keyboard, he/she can begin refueling. Once the customer's monetary limit is reached, refueling stops and the authorized amount is automatically paid to the gas station. Because the majority of customers in China need to pay for the fuel inside the gas station, the DT Refuel app offers consumers the convenience of avoiding payment lines, and can reduce labor expenses for gas stations. Moreover, by securing payment prior to authorization of the pump, the DT Refuel app will help gas stations reduce incidents of non-payment by customers.

In addition to the updates to the DT Refuel app, existing fuel dispensers will be upgraded to be compatible with the fuel prepayment protocol. In some cases, the upgrade will be accomplished with a software update; other pumps may require physical upgrades. These upgrades will be at the gas stations' expense, and such fees will be largely payable to Censtar. Pursuant to the Agreement, FGS and Censtar agree to develop, optimize and promote the prepayment functionality based on FGS' DT Refuel app and gas dispensers produced by Censtar. FGS agrees to use its internet technology and market resources to provide Censtar with technology development support and marketing support. Censtar will provide FGS with the fuel dispenser upgrades while FGS will assist Censtar with receiving the upgrade fees from gas stations. Censtar agrees to promote the application of the fuel prepayment function in gas stations using its fuel dispensers.

Mr. Shenping Yin, CEO of Recon, stated, "We are pleased that FGS has entered this agreement with Censtar, China's leading provider of fuel dispensers. We believe this collaboration between Censtar and FGS has tremendous potential to promote technological innovation and introduce a more efficient and convenient payment protocol in the evolving gas station industry."

Mr. Yang Song, the founder of FGS, said, "In Zhejiang Province, the gross value of payments made through our initial version of the DT Refuel app was already over RMB 609 million for 2018. We are pleased with how our the DT Refuel app has been welcomed by car owners and gas stations in China. We're excited to introduce fuel prepayment in our DT Refuel app, which will greatly improve the efficiency and operation of gas stations and offer new convenience to consumers. We have started the trial operation of this prepayment functionality with Censtar at a few pilot stations in Zhejiang Province. Through this agreement with Censtar, we are aiming to expand the fuel prepayment option into more provinces throughout China. We are eager to share this technology with Censtar's client base as we bring this solution to more gas stations and clean energy industry refueling stations and to explore future markets for this technology."

BEIJING, Jan. 21, 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 it has received a letter from the Listings Qualifications Department of The Nasdaq Capital Market ("Nasdaq") notifying the Company that the minimum bid price per share for its ordinary shares was below $1.00 for a period of 30 consecutive business days and that the Company did not meet the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2). This press release is filed pursuant to Nasdaq Listing Rule 5810(b). The Nasdaq notification letter does not result in the immediate delisting of the Company's ordinary shares, and the shares will continue to trade uninterrupted under the symbol "RCON."

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has a compliance period of 180 calendar days, or until July 15, 2019 (the "Compliance Period"), to regain compliance with Nasdaq's minimum bid price requirement. If at any time during the Compliance Period, the closing bid price per share of the Company's ordinary shares is at least $1.00 for a minimum of 10 consecutive business days, Nasdaq will provide the Company a written confirmation of compliance and the matter will be closed.

In the event the Company does not regain compliance by July 15, 2019, the Company may be eligible for an additional 180 calendar day grace period. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for Nasdaq, with the exception of the bid price requirement, and will need to provide written notice of its intention to cure the deficiency during the second compliance period, including by effecting a reverse stock split, if necessary. If the Company chooses to implement a reverse stock split, it must complete the split no later than ten business days prior to the expiration of the second compliance period.

BEIJING, Oct. 15, 2018 /PRNewswire/ -- Recon Technology, Ltd. (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's joint venture Future Gas Station (Beijing) Technology, Ltd. ("FGS") successfully ran a Cooperative Promotion Program (the "Program") that FGS launched with PetroChina Co., Ltd. ("PetroChina") in Zhejiang Provence and Alipay, a third-party mobile and online payment platform established by Alibaba Group.

The three parties launched the Program from the period of September 1, 2018 to September 28, 2018 (the "Period"). During the Period, when Alipay users clicked any coupon or special offer posted on the Alipay mobile application for refueling at PetroChina gas stations in Zhejiang Province, they were directed to FGS' DT Refuel mobile application to complete the purchase and payment activities. In that way, they were provided with the opportunity to use DT Refuel to refuel at PetroChina gas stations. During the Period and through the Program, DT Refuel gained about 550,000 new registered users, among whom 420,000 new DT Refuel users refueled between once and four times. The average Gross Merchandise Volume of DT Refuel increased from RMB 0.5 million to RMB 5 million from August 2018 to September 2018, and the total sales of DT Refuel reached RMB 165 million (approximately $31 million) during the Period. Compared to the same period of last year, during the Period, the PetroChina's gas stations in Zhejiang Province increased the total sales by 2.5%, decreased the users' latency and payment time by approximately 60%, and improved the efficiency of gas station service overall. Furthermore, through the Program, FGS helped Alipay attract more customers to use its mobile payment platform and increase its mobile payment ratio in the gasoline consumption industry in Zhejiang Province.

Management Commentary

Mr. Shenping Yin, CEO of Recon, stated, "The growth of FGS has exceeded our expectations as the promotion program that it conducted with PetroChina and Alipay attracted a significant number of new users of its DT Refuel mobile application. The 420,000 new users that refueled at least once during the Period show the demand for a way of more economic refuel payment and we hope to share similar success stories regarding FGS in the future."

Mr. Yang Song, the founder of FGS, stated, "We are glad to achieve our multi-win goal by promoting the gas sales of PetroChina, attracting more users of our DT Refuel mobile application, and enabling Alipay to provide the online payment channel to PetroChina. Moreover, this Program helps us get more data about the consumer activities in the gas stations, with which we expect to serve the consumers better. The success we achieved through the Program showed the needs of better experience provided by the gas stations, and the approval of our services by consumers. We plan to continue some promotion activities with better technological resolutions, stream guidance of Alipay and ground marketing in the coming months. We view FGS as a platform to serve the needs of a changing market in China as the retail gas stations evolve through the innovations in retail business models and technological changes in the energy sector."

BEIJING, Sept. 28, 2018 /PRNewswire/ -- Recon Technology, Ltd. (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 its financial results for the fiscal year ended June 30, 2018.

Management Commentary

Mr. Shenping Yin, founder and CEO of Recon stated, "We are pleased to announce our financial results for fiscal year 2018. Our revenues increased to RMB 84.7 million from RMB 60.1 million over the same period last year. This was an improvement of 41.1% year over year, exceeding our expectations of a 30% increase as previously disclosed in our annual letter to shareholders. In addition to this top line growth, over the past fiscal year our management invested in manufacturing equipment, constructing wastewater and oil sludge treatment plants and Future Gas Station (Beijing) Technology, Ltd ("FGS"), as oil prices and the oil industry improved. FGS is a service company focusing on providing new technical application and data operation to gas stations of oil companies such as PetroChina Co., Ltd. So far, we have secured a 43% interest in FGS and FGS' performance is exceeding our expectations. We expect to improve our margins as these investments bear fruition and we continue to see strong demand for energy services as the oil market strengthens."

Mr. Yin continued, "China's energy market is more and more diversified in terms of the structure and the market participants. As a non-state-owned company, Recon is getting more opportunities. In addition, we have expanded our automation business from the oil industry to the coal chemical and new energy industries by leveraging our knowledge and experience in automation, and our relationships with large energy companies. As of today, we have signed contracts amounted up to RMB22.48 million with Shenhua Group Corporation Limited ("Shenhua Group") and RMB14.20 million with Xinjiang East Hope New Energy Co., Ltd. ("East Hope"). We have also integrated the new energy technology into our traditional furnaces and will vigorously explore the civilian market of furnaces. We believe all these efforts will bring Recon and our shareholders more value in the future."

Total revenues for fiscal year 2018 increased by 41.1% to RMB84.7 million ($12.8 million).
The revenue of equipment and accessories business was a record RMB64.0 million ($9.7 million) for fiscal year 2018 increasing 139.9% compared to RMB26.7 million during fiscal year 2017.
Gross profit for fiscal year 2018 was RMB4.2 million ($0.6 million). Gross profit margin for fiscal year 2018 was 4.9%, which decreased by 21.7 percentage points compared to fiscal year 2017.
Net loss attributable to Recon for fiscal year 2018 was RMB44.1 million ($6.7 million), or RMB3.84 ($0.58) per basic and diluted share, compared to RMB31.5 million, or RMB4.90 per basic and diluted share, for fiscal year 2017.
Fiscal Year 2018 Financial Results

Revenue

Total revenues for the fiscal year ended June 30, 2018 increased by RMB24.7 million, or 41.1%, to RMB84.7 million ($12.8 million) compared to RMB60.1 million for the fiscal year ended June 30, 2017. The increase in revenues was accomplished through the addition of new clients and development of new business.

Revenue from automation product and software decreased by RMB3.4 million, or 15.2%, to RMB19.0 million ($2.9 million) for the fiscal year ended June 30, 2018 from RMB22.4 million for the fiscal year ended June 30, 2017, mainly affected by less expenditure on surface projects and postponed production activities by clients.

Revenue from equipment and accessories increased by RMB37.3 million, or 139.9%, to RMB64.0 million ($9.7 million) for the fiscal year ended June 30, 2018 from RMB26.7 million for the fiscal year ended June 30, 2017, the significant increase was primarily due to increased equipment sales, including furnaces and related accessories in normal chemical and civil furnace markets.

Revenue from oilfield environmental protection decreased by RMB9.2 million, or 84.0%, to RMB1.8 million ($0.3 million) for the fiscal year ended June 30, 2018 from RMB11.0 million for the fiscal year ended June 30, 2017. The Company devoted resources on construction of oily sludge treatment processing projects this year and less waste-water projects were done during this period. The Company expects the oily sludge treatment processing projects to be operational by the end of the calendar year 2018 and to generate annual revenue of more than RMB50 million, assuming full capacity.

Cost and Margin

Total cost of revenues increased by RMB36.5 million, or 82.7%, to RMB80.6 million ($12.2 million) for the fiscal year ended June 30, 2018 from RMB44.1 million for the fiscal year ended June 30, 2017. The increase was mainly caused by significant growth in revenue generated from equipment and accessories.

Cost of revenue from automation product and software increased by RMB4.6 million ($0.7 million), or 37.2%, to RMB17.0 million ($2.6 million) for the fiscal year ended June 30, 2018 from RMB12.3 million for the fiscal year ended June 30, 2017. The increase in cost of revenue from automation product and software was primarily attributable to 1) a mass of business of Shenhua Group contracts with lower margin; and 2) some pre-contract costs devoted to Changqing Oilfield projects.

Cost of revenue from equipment and accessories increased by RMB40.1 million ($6.1 million), or 183.3%, to RMB62.0 million ($9.4 million) for the fiscal year ended June 30, 2018 from RMB21.9 million for the fiscal year ended June 30, 2017. The increase in cost of revenue from equipment and accessories was primarily attributable to quickly increased sales of furnaces to general industry clients.

Cost of revenue from oilfield environmental protection decreased by RMB8.1 million ($1.2 million), or 85.9%, to RMB1.3 million ($0.2 million) for the fiscal year ended June 30, 2018 from RMB9.4 million for the fiscal year ended June 30, 2017. The variance in cost of revenue was mainly due to less business of waste water treatment. The Company expects this part will increase in the coming year as our new subsidiary Gan Su BHD runs.

Gross profit decreased by RMB11.8 million, or 74.0%, to RMB4.2 million ($0.6 million) for the fiscal year ended June 30, 2018 from RMB16.0 million from the fiscal year ended June 30, 2017. The decrease in gross profit was primarily due to the increase in revenue, offset by the increase in cost of revenue. Gross margin decreased by 21.7 percentage points to 4.9% for the fiscal year ended June 30, 2018 from 26.6% from the fiscal year ended June 30, 2017.

Operating Expenses

Selling and distribution expenses increased by RMB3.6 million, or 79.7%, to RMB8.0 million ($1.2 million) for the fiscal year ended June 30, 2018 from RMB4.5 million for the fiscal year ended June 30, 2017. This increase was primarily due to an increase in traveling expense and service and testing fees as the Company expanded its market to new basements of Changqing Oilfield and new industries.

General and administrative expenses increased by RMB1.9 million, or 5.9%, to RMB34.7 million ($5.2 million) for the fiscal year ended June 30, 2018 from RMB32.8 million for the fiscal year ended June 30, 2017. The increase in general and administrative expenses was mainly due to an increase in salaries and rent expenses, the increase was partially offset by the decrease in consulting fees.

Provision for doubtful accounts was RMB0.8 million ($0.1 million) for the fiscal year ended June 30, 2018, compared to reversal of provision for doubtful accounts of RMB1.8 million for the fiscal year ended June 30, 2017. Management plans to continue to monitor accounts receivable to maintain the provision at a lower level.

Research and development expenses decreased by RMB4.4 million, or 57.7%, to RMB3.2 million ($0.5 million) for the fiscal year ended June 30, 2018 from RMB7.6 million for the fiscal year ended June 30, 2017. This decrease was primarily due to less research and development expense spent on design of chemical products used for waste water treatment and digital oilfield models and platform. The Company was focusing on the transformation of advanced R&D results into projects, which were undertaken by Gan Su BHD and Qing Hai BHD.

Net Loss

Loss from operations was RMB40.9 million ($6.2 million) for the fiscal year ended June 30, 2018, compared to a loss of RMB30.6 million for the fiscal year ended June 30, 2017. This RMB10.3 million ($1.6 million) increase in loss from operations was primary due to a decrease in gross profit, as well as an increase in selling and distribution expenses and general and administrative expenses and partly offset by a decrease in research and development expenses.

Other expense, net was RMB4.4 million ($0.7 million) for the fiscal year ended June 30, 2018, compared to other expense, net of RMB0.3 million for the fiscal year ended June 30, 2017. The RMB4.1 million ($0.6 million) increase in other expense, net was primarily due to the increased loss from investment in unconsolidated entity of RMB4.0 million ($0.6 million).

Provision for income tax was RMB16,230 (approximately $2,500) for the fiscal year ended June 30, 2018, compared to RMB0.3 million for the fiscal year ended June 30, 2017. The decrease in the Company's provision for income taxes was primarily due to the decreased taxable income of Nanjing Recon for the fiscal year ended June 30, 2018.

Net loss was RMB45.4 million ($6.9 million) for the fiscal year ended June 30, 2018, compared to RMB31.2 million for the fiscal year ended June 30, 2017. Net loss attributable to Recon for the fiscal year ended June 30, 2018 was RMB44.1 million ($6.7 million), or RMB3.84 ($0.58) per basic and diluted share, compared to RMB31.4 million, or RMB4.90 per basic and diluted share for the fiscal year ended June 30, 2017.

Financial Condition

As of June 30, 2018, the Company had cash of RMB45.3 million ($6.8 million), compare to RMB3.8 million as of June 30, 2017. As of June 30, 2018, the Company had working capital of RMB74.8 million ($11.3 million), compare to RMB38.9 million as of June 30, 2017.

Net cash used in operating activities was RMB21.1 million ($3.2 million) for the fiscal year ended June 30, 2018, compared to net cash provided by operating activities of RMB5.7 million for the fiscal year ended June 30, 2017. Net cash used in investing activities was RMB16.0 million ($2.4 million) for the fiscal year ended June 30, 2018, compare to RMB0.6 million for the fiscal year ended June 30, 2017. Net cash provided by financing activities was RMB76.9 million ($11.6 million) for the fiscal year ended June 30, 2018, compared to net cash used in financing activities of RMB3.1 million for the fiscal year ended June 30, 2017.

BEIJING, Sept. 19, 2018 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ :RCON ) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that the Company, through its affiliate Nanjing Recon Technology Co., Ltd., has signed a RMB 14.2 million (approximately USD $2.1 million) contract with Xinjiang East Hope New Energy Co., Ltd. ("East Hope"), a polysilicon producer in China. East Hope is a wholly-owned subsidiary of East Hope Group, one of the top 500 Chinese Enterprises.

Pursuant to the contract signed on August 27, 2018, Recon has agreed to sell to East Hope a distributed control system known as "DCS" for data collection and equipment control and a safety instrumented system known as "SIS" for safety protection control. Recon is obligated to deliver the equipment before December 15, 2018 and install the equipment before December 31, 2018. As consideration, East Hope is obligated to pay Recon RMB 14.2 million (approximately USD $2.1 million).

Management Commentary

Mr. Shenping Yin, CEO of Recon, stated, "We are pleased to work with East Hope for this new project. We are proud that our solutions meet the stringent benchmarks on reliability, performance, and support required by East Hope. We look forward to expanding our relationship with East Hope and contributing to their growth strategy as we continue to grow our track record in the industry."

BEIJING, Aug. 28, 2018 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ : RCON ) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced more details of the supplemental agreement to the definite investment agreement with Future Gas Station (Beijing) Technology, Ltd ("FGS").

As previously disclosed in a press release on August 22, 2018, the Company, through its affiliates Beijing BHD Petroleum Technology Co., Ltd. and Nanjing Recon Technology Co., Ltd., entered into a definitive investment agreement and a supplemental agreement (collectively, the "Agreement") with FGS and the other shareholders of FGS on August 21, 2018. FGS is a service company that provides new technical applications and data operations to gas stations of oil companies in China. Following full performance under the Agreement, Recon will own 43% of FGS.

As consideration for increasing its affiliates' interest in FGS from 8% to 43%, Recon will (1) pay a total of RMB 10 million in cash to FGS in five installments and (2) issue 2,435,284 restricted ordinary shares of Recon (the "Restricted Shares") to the other shareholders of FGS within 30 days after FGS finalizes recording Recon's corresponding interest at the local governmental agency. The parties have agreed that the 2,435,284 Restricted Shares are worth RMB 33.3 million based on USD 2.00 per share.

If FGS does not reach any of the following performance goals within one year from the date of signing the Agreement, Recon has the right to cancel without further payment part or all of the Restricted Shares: (1) the number of gas station stations that use FGS' platform must reach 670, an increase of 200 stations from the 470 stations as of the date the Agreement; (2) the number of users who purchase products through the FGS' mobile application, DT Refuel, must reach 1.1 million, an increase of 800,000 from the 300,000 current users; (3) FGS' daily average gross merchandise values must reach RMB 3.3 million, an increase of RMB 2.7 million over the current RMB 600,000. The Restricted Shares are also subject to lock-up period requirements that vary for each FGS shareholder, from one year to three years following issuance of the Restricted Shares.

Management Commentary

Mr. Shenping Yin, CEO of Recon, stated, "We are pleased to disclose more details of the supplemental agreement to our definitive agreement with FGS. We believe these performance benchmarks and investment details allow our shareholders to gain a better understanding of the value added by this agreement, future strategy, and the operational goals of FGS. FGS has great capability to help the gas stations of the China National Petroleum Corporation ("CNPC") increase operation efficiency and profitability. And in the long run, we expect that the convenience stores will become the primary profit source for gas stations. FGS can help convenience stores improve their operation and bring more resources to them. We are very optimistic with FGS in the long run."

Mr. Song Yang, founder of FGS, said, "The market structure of retail sales of finished oil products industry in China is undergoing tremendous changes. FGS, together with Recon, hope to face the challenges and opportunities associated with these changes by providing technical and operational support to CNPC. There are currently more than 20,000 CNPC gas stations. We have launched our business in Zhejiang province and are ready to expand to other areas such as Shanghai city and Nanjing city."

BEIJING, Aug. 22, 2018 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ : RCON ) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that the Company, through its affiliates Beijing BHD Petroleum Technology Co., Ltd. and Nanjing Recon Technology Co., Ltd., has entered into a definitive investment agreement and a supplemental agreement (collectively, the "Agreement") with Future Gas Station (Beijing) Technology, Ltd ("FGS") and the other shareholders of FGS on August 21, 2018. FGS is a service company that provides new technical applications and data operations to gas stations of oil companies in China. Following full performance under the Agreement, Recon will own 43% of FGS.

As previously disclosed in a press release on December 18, 2017, the Company invested RMB 4.35 million (approximately USD 0.7 million) in FGS in return for 8% of FGS. As consideration for increasing its affiliates' interest in FGS from 8% to 43%, Recon will (1) pay a total of RMB 10 million in cash to FGS in five installments and (2) issue 2,435,284 restricted ordinary shares of Recon (the "Restricted Shares") to the other shareholders of FGS within 30 days after FGS finalizes recording Recon's corresponding interest at the local governmental agency. If FGS does not reach certain performance goals, Recon has the right to cancel without further payment part or all of the Restricted Shares. The Restricted Shares are also subject to lock-up period requirements that vary for each FGS shareholder, from one year to three years following issuance of the Restricted Shares.

The Restricted Shares issued by Recon have not been registered under the Securities Act of 1933, as amended (the "Act") and are "restricted securities" as that term is defined in Rule 144 under the Act. The Restricted Shares may not be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the act, or pursuant to an exemption from registration under the act, the availability of which is to be established to the satisfaction of the Company. The Restricted Shares are further subject to certain restrictions described in the Agreement granting such Restricted Shares. The Restricted Shares may not be offered, sold, pledged or otherwise transferred except in accordance such restrictions.

BEIJING, Aug. 6, 2018 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that the Company, through its affiliates Beijing BHD Petroleum Technology Co., Ltd. and Nanjing Recon Technology Co., Ltd., has entered into a nonbinding framework agreement (the "Framework Agreement") on August 3, 2018 with Future Gas Station (Beijing) Technology, Ltd ("FGS"), a leading service company focusing on providing new technical applications and data operations to gas stations of oil companies. After entry into binding purchase agreement, Recon will pay cash and issue restricted shares to FGS and its shareholders in return for the issuance of new shares from FGS and the transfer of shares from existing FGS shareholders.

As previously disclosed in a press release on December 18, 2017, the Company invested RMB 4.35 million (approximately $0.7 million) in FGS to own 8% of FGS through its affiliates Beijing BHD Petroleum Technology Co., Ltd. and Nanjing Recon Technology Co., Ltd.

Pursuant to the Framework Agreement, Recon intends to increase its affiliates' interest from 8% to 43% of FGS' equity. Upon entry into a definitive purchase agreement, Recon expects to pay an aggregate of RMB 10 million and RMB 33.3 million worth of Recon's restricted shares to FGS and its shareholders. This transaction and determination of share price are subject to entry into a definitive purchase agreement, board approval of such agreement and satisfaction of customary closing conditions.   

BEIJING, July 30, 2018 /PRNewswire/ -- Recon Technology, Ltd. (RCON), ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that Future Gas Station (Beijing) Technology, Ltd ("FGS"), of which Recon indirectly owns 8%, has officially launched smart vending machines to further expand its retail business.

BEIJING, July 19, 2018 /PRNewswire/ -- Recon Technology, Ltd. (RCON), ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced the completion of the first stage of its construction of a comprehensive disposal treatment project (the "Project") in Yumen city, Gansu province through its 51% subsidiary, Gansu BHD Environmental Technology Co., Ltd ("Gansu BHD"), which focuses on oilfield sewage treatment and oily sludge disposal projects. As previously disclosed by the Company, Gansu BHD purchased a 50 year land use right for a 26,235 square meter property to build the Project 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 Project, which will have an annual processing capacity of 60,000 tons of oily waste, is the only such treatment facility located in Yumen city. As regulations prohibit the removal of such oily sludge from Gansu province, Gansu BHD is optimistic about the business opportunities for the Project, although it lacks a long-term agreement with Yumen Oilfield.

At this first stage of the Project, the construction of the bases and the major body of plants have been completed. The next stage will involve equipment installation and testing. In addition, because of the Company's implementation of improved project design, it estimates the total investment in the Project to decrease from RMB 100 million to RMB 40 million. The Company expects the Project to be operational by the end of the calendar year 2018 and to generate annual revenues for Gansu BHD of more than RMB 50 million, assuming full capacity.

Management Commentary

Mr. Guangqiang Chen, director and CTO of Recon Technology, commented, "We are pleased with our progress on our comprehensive disposal treatment project. Our search for new efficiencies has contributed to a 60% decrease in the expected investment in the project, from RMB 100 million to RMB 40 million. We have completed the construction of the bases and the major body of the plants as we prepare to install our equipment and begin testing. We expect the disposal treatment facilities to be operational by the end of this calendar year."

Mr. Chen continued, "Given the launch of China's new environmental law and increased enforcement of this and other environmental laws, we believe Recon is well positioned to innovate in a changing industry landscape that has given rise to demand for new and more efficient treatment methodologies. The oily waste produced from drilling, transportation and refining in the Yumen oilfield system remains a persistent issue and our project through Gansu BHD is a cutting-edge attempt to resolve this issue."

BEIJING, April 9, 2018 /PRNewswire/ -- Recon Technology, Ltd. (RCON), ("Recon" or the "Company"), an independent solutions integrator in China's oilfield service, energy and environment protection industries, today announced it won additional bids totaling approximately RMB 4.3 million, or approximately USD 0.7 million, to procure and import customized instruments and to provide related installation and maintenance services for the coal chemical business of Shenhua Group Corporation Limited ("Shenhua Group") through Shenhua Logistics Group Corporation Limited ("Shenhua Logistics") for the first three months of year 2018. As of today, the Company has won bids totaling RMB 6.8 million, or approximately USD 1.1 million from Shenhua Group. The Company expects to win additional bids in the near future and the annual bids from the coal and electronic power segment of Shenhua Group, a recently expanded business line, may exceed RMB 20 million, or approximately USD 3.2 million.

Management Commentary

Mr. Shenping Yin, co-founder and CEO of Recon stated, "We're pleased to update all investors with our recent progress from the coal chemical industry for the first quarter in 2018. As the bids finished, our financial statements will reflect these numbers in the coming months. Our continued wins demonstrate our management's insights into China's energy market. We believe our strategic decision to expand our focus beyond oilfield service will bring long-term benefits to the Company and our shareholders. We'll keep bringing new sources of growth into our business scope by leveraging our abundant knowledge and understanding of China and the industry."

Second Quarter 2018 Financial Results

• Total revenues for the second quarter of FY2018 increased by 35.5% to RMB41.1 million ($6.3 million)
• Non-GAAP net loss attributable to common shareholders excluding certain non-cash expenses was RMB3.1 million ($481,456), or RMB0.37 ($0.06) per basic and diluted share, for the second quarter of FY2018, compared to non-GAAP net income attributable to common shareholders of RMB3.3 million, RMB0.53 per basic share, or RMB0.48 per diluted share, for the same period of last fiscal year.

Management Commentary

Mr. Shenping Yin, Founder and CEO of Recon stated, "We're pleased to see continued growth of our business and revenue generated accordingly in this quarter. As oil prices rebounded and the oil industry recovered from setbacks, our management made prudent decision to invest in manufacturing equipment and constructing wastewater, and oil sludge treatment plants. Our gross margin decreased significantly primarily due to increased sales of equipment with lower margin during the construction and test-run stage of our new plants. After this stage terminates in approximately 6 months to one year, we expect that our gross margin will increase when we plan to produce and sell our equipment with higher margin. Therefore, we believe our operation and profitability will be gradually improved in the coming months. We're excited that many potential clients have shown strong interest in the furnaces we produce, and Qing Hai oilfield and Gan Su oilfield also express their urgent requirement of our wastewater and oily sewage capability. We also maintain constant fast expansion of business scope. Beyond the oilfield service industry, we expand our business to other domains, such as coal chemical and petroleum chemistry. We also invested in Future Gas Station (Beijing) Technology, Ltd. ("FGS"), a service company focusing on providing new technical application and data operation to gas stations of oil companies. With its DT Refuel mobile application, FGS provides solutions to gas stations to improve their operations and their customers' experience. Recon and FGS plan to jointly develop an integrated block chain-based mobile shopping system for use in gas stations. We believe all activities made during our second quarter of 2018 will bring long-term return benefit for Recon and all of its shareholders."

Mr. Yin continued, "Looking to the coming year and beyond, management will focus on the following aspects: 1) for market and business, we will continue improving operation quality and disperse risks by pursuing high-quality business and sophisticated products; 2) for technology and products, we will also enhance cooperation with regional leading manufacturing companies, positively introduces advanced overseas technique and continuously integrate and upgrade current industrial equipment and solutions to establish leading position in various fields, and to maximize the added value of products and service; and 3) for internal control: we will always seek to improve our cash flow management to meet development requirements and minimize company risks."

BEIJING, Jan. 31, 2018 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), an independent solutions integrator in China's oilfield service, energy and environment protection industries, today announced it has won several bids totaling approximately RMB 2.5 million, or approximately USD 0.4 million, to procure and import customized instruments and to provide related installation and maintenance services for the coal chemical business of Shenhua Group Corporation Limited ("Shenhua Group") through Shenhua Logistics Group Corporation Limited ("Shenhua Logistics"). Shenhua Group is the largest coal enterprise in China and the largest coal supplier in the world. Shenhua Logistics is its wholly-owned subsidiary and handles procurement for Shenhua Group. The Company expects its revenue from Shenhua Logistics will continue to grow in the coming year by further expanding business to coal and electronic power segment of Shenhua Group. This new bid will help expand the Company's business scope to coal chemical projects and related outsourcing services.

BEIJING, Jan. 22, 2018 /PRNewswire/ -- Recon Technology, Ltd. (RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, announced today it has entered into a securities purchase agreement with certain accredited investors to purchase $5,963,550 of its ordinary shares in a registered direct offering.

Under the terms of the purchase agreement, Recon has agreed to sell 3,592,500 ordinary shares at a price of $1.66 per share. The gross proceeds to Recon are estimated to be $5,963,550 before deducting the placement agent fees and other estimated offering expenses. The registered direct offering is expected to close on or about January 24, 2018, subject to the satisfaction of customary closing conditions.

BEIJING, Jan. 16, 2018 /PRNewswire/ -- Recon Technology, Ltd. (RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that it signed a two-year joint development term sheet with Future Gas Station (Beijing) Technology, Ltd. ("FGS"), a leading data operation company on January 15, 2017. As previously announced, Recon owns 8% of FGS. Recon and FGS plan to jointly develop an integrated blockchain-based mobile shopping system for use in gas stations. FGS will be in charge of developing this system while Recon will mainly provide resources including funds, supporting personnel and risk and compliance management advice.

BEIJING, Dec. 18, 2017 /PRNewswire/ -- Recon Technology, Ltd. (RCON), ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that, on December 15, 2017, it agreed to invest RMB 4.35 million (approximately $0.7 million) in Future Gas Station (Beijing) Technology, Ltd ("Future Gas Station" ). Upon payment in full of the investment, Recon will own 8% of Future Gas Station through Recon's affiliates Beijing BHD Petroleum Technology Co., Ltd. and Nanjing Recon Technology Co., Ltd. With this investment, Recon plans to participate in the Chinese market of smart gas stations.

Established in January 2016, Future Gas Station focuses on providing new technical application and data operation to gas stations owned by oil companies such as PetroChina Co., Ltd. ("PetroChina"). With its DT Refuel mobile application, Future Gas Station provides solutions to gas stations to improve their operations and their customers' experience. Future Gas Station aims to increase the overall income of gas stations through integration of internet technique and new retail E-Commerce platform, and to help transform gas stations into comprehensive service providers.

Management Commentary

"We're delighted to announce this new strategic investment in Future Gas Station. Internet Plus is an initiative promoted by the Chinese government to connect internet and traditional industries. The Internet Plus initiative boosts Internet innovation and benefits traditional industries, including the oil industry. Both PetroChina and Sinopec have followed the Internet Plus trend to build a marketing network based on its gas stations across China, to increase the commercial value of their gas stations and to enhance the attractiveness of the shops around the gas stations," stated Mr. Shenping Yin, CEO of Recon, "Therefore, we see great potential for companies with new technology such as Future Gas Station during the process of assisting oil companies to build smart gas stations and new retail models. We believe in Future Gas Station and their team, and are confident that Future Gas Station will develop into a leader of this industry with their strong technical reserves and resource integration capability. This investment gives us an opportunity to diversify our business, and extend our industry chain from upstream oil exploitation to downstream gasoline and oil distribution."

Mr. Yang Song, the founder of Future Gas Station, said, "We are glad to have this opportunity to unite with Recon. Future Gas Station's vision is to be the most professional and reliable data service provider in gas station field. Gas stations installing our DT Refuel application have greatly improved operating efficiency, marketing efficiency, client retention rates, repurchase rates and employee satisfaction. We have signed contracts with PetroChina covering more than 1,000 gas stations and convenience stores. We aim to provide data services to more than 20,000 gas stations covering 3,000,000 car owners by the end of 2020."

BEIJING, Dec. 18, 2017 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that, on December 15, 2017, it agreed to invest RMB 4.35 million (approximately $0.7 million) in Future Gas Station (Beijing) Technology, Ltd ("Future Gas Station" ). Upon payment in full of the investment, Recon will own 8% of Future Gas Station through Recon's affiliates Beijing BHD Petroleum Technology Co., Ltd. and Nanjing Recon Technology Co., Ltd. With this investment, Recon plans to participate in the Chinese market of smart gas stations.

Established in January 2016, Future Gas Station focuses on providing new technical application and data operation to gas stations owned by oil companies such as PetroChina Co., Ltd. ("PetroChina"). With its DT Refuel mobile application, Future Gas Station provides solutions to gas stations to improve their operations and their customers' experience. Future Gas Station aims to increase the overall income of gas stations through integration of internet technique and new retail E-Commerce platform, and to help transform gas stations into comprehensive service providers.

Management Commentary

"We're delighted to announce this new strategic investment in Future Gas Station. Internet Plus is an initiative promoted by the Chinese government to connect internet and traditional industries. The Internet Plus initiative boosts Internet innovation and benefits traditional industries, including the oil industry. Both PetroChina and Sinopec have followed the Internet Plus trend to build a marketing network based on its gas stations across China, to increase the commercial value of their gas stations and to enhance the attractiveness of the shops around the gas stations," stated Mr. Shenping Yin, CEO of Recon, "Therefore, we see great potential for companies with new technology such as Future Gas Station during the process of assisting oil companies to build smart gas stations and new retail models. We believe in Future Gas Station and their team, and are confident that Future Gas Station will develop into a leader of this industry with their strong technical reserves and resource integration capability. This investment gives us an opportunity to diversify our business, and extend our industry chain from upstream oil exploitation to downstream gasoline and oil distribution."

Mr. Yang Song, the founder of Future Gas Station, said, "We are glad to have this opportunity to unite with Recon. Future Gas Station's vision is to be the most professional and reliable data service provider in gas station field. Gas stations installing our DT Refuel application have greatly improved operating efficiency, marketing efficiency, client retention rates, repurchase rates and employee satisfaction. We have signed contracts with PetroChina covering more than 1,000 gas stations and convenience stores. We aim to provide data services to more than 20,000 gas stations covering 3,000,000 car owners by the end of 2020."

First Quarter 2018 Financial Results

• Total revenues for the first quarter of FY2018 increased by 56% to RMB 12.2 million ($1.8 million).
• Non-GAAP net loss attributable to common shareholders excluding certain non-cash expenses was RMB 2.3 million ($341,093), or RMB 0.33 ($0.05) per basic and diluted share, for the first quarter of FY2018, compared to non-GAAP net loss attributable to common shareholders of RMB 3.2 million, or RMB 0.54 per basic and diluted share, for the same period last fiscal year.

Mr. Shenping Yin, Chairman and CEO of Recon stated, "Revenue of this quarter is mainly driven by equipment and integration of automation business, the basic two legs of Recon, as we stated in our open letter to shareholders (Refer to the following link for more details: http://recon.mediaroom.com/2017-06-12-Recon-Outlines-2017-Strategy-and-China-Oil-and-Gas-Market-Outlook-in-Open-Letter-to-Shareholders?pagetemplate=widgetpopup). As most of our projects of waste water treatments are currently in progress, we expect revenue of this business line will contribute significantly to the overall revenues in the coming quarters. The rally in crude prices helped generate positive sentiment and we did see more investments in oil extraction by our clients and thus more opportunities for Recon. Based on our current estimation, we remain confident in our ability to achieve our goal of a minimum 30% increase in revenues for this fiscal year. This estimation was also mentioned by the open letter to shareholders as above."

Mr. Yin continued, "Our Gansu subsidiary construction projects, focusing on oilfield sewage treatment and oily sludge disposal treatment project with an annual processing capacity of 60,000 tons of oily waste ("Project"), is also proceeding well (Refer to the following link for more details: http://recon.mediaroom.com/2017-11-07-Recon-Announces-Investment-to-Expand-Services-for-Oily-Sludge-Market-in-Yumen-Oilfield?pagetemplate=widgetpopup). Total investment of this project is expected to about RMB100 million. Approximately RMB5.4 million, which mainly consisted of the purchase of land use right and prepayment for equipments and construction supplies, has been devoted into the first stage of construction. We expect this project to be operational by June 2018 and annual revenue to be generated by the Project is estimated to be over RMB 50 million."

BEIJING, Oct. 24, 2017 /PRNewswire/ -- Recon Technology, Ltd. (RCON), ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that it will provide its proprietary chemical compound agents and microbiological treatment agents (the "Products") and relevant services for oily sewage treatments to Qinghai Oilfield Company ("Qinghai Oilfield"), a PetroChina Co., Ltd. ("PetroChina") subsidiary (the "Project"). Recon's revenue of the Project is expected to be RMB 13.11 million (approximately USD $2 million) over the course of one year, subject to the quantity of the Products actually used by Qinghai Oilfield. Recon expects to begin recording revenue under the Project in the current quarter. The Project represents a significant increase in size and scope over the Company's previous wastewater treatment agreements.

All goods to be delivered in the Project will be developed and rendered by Recon. Recon is applying patents for its own bio-stimulants, a kind of microbiological treatment agents needed in the Project and has been granted several patents for invention of oily wastewater treatment devices (please refer to the following link for more details: Recon Technology Receives Patent for Oilfield Wastewater Treatment Device).

Management Commentary: Continued Acceleration in Signing of Wastewater Agreements

"This is a major progression in our partnership with Qinghai Oilfield, and an indication of the upside potential of Recon in the oilfield environmental protection market," stated Mr. Yin Shenping, CEO of Recon,  "Our oilfield waste water treatment business has continued to expand rapidly, as agreements have continued to grow in terms of size and number.  In fiscal 2017, we grew our revenue in this business by over 371%."

Mr. Yin continued, "The market potential in wastewater represents a significant opportunity for Recon in the coming quarters, as many of the investments made by our Company during the downturn in oil prices have begun to materialize into increasing orders in the past six months. The principal driver of growth in this market is increased regulatory requirements amidst the need for greater environmental protection, which is creating a need for our large-oilfield clients to utilize our products and services to improve their waste services.  We have leveraged experience, data analysis, and research to develop solutions for these large-scale oilfield companies in China, many of which we have had relationships with for over a decade. The increasing amounts of agreements represents more than simply what the amounts themselves represent, as the overall perception of Recon is changing from merely an oilfield service company to a hi-tech company in our marketplace ."

BEIJING, Oct. 16, 2017 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that it has signed a three-year strategic cooperation agreement ("Agreement") with Beijing OriginWater Purification Engineering Technology Co., Ltd ("BOW Engineering"), a subsidiary of Beijing OriginWater Technology Co. Ltd. (Shenzhen Stock Exchange: 300070) ("BOW"). Pursuant to the Agreement, Recon Technology and BOW Engineering will cooperate to promote advanced sewage treatment technology in Chinese oilfield markets and to provide integrative solutions and services of superior quality and effectiveness to tackle industrial water pollution.

BEIJING, June 12, 2017 /PRNewswire/ -- Recon Technology, Ltd. (RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced that the Company's two co-founders, Messers' Shenping Yin (Chairman and Chief Executive Officer) and Guangqiang Chen (Chief Technology Officer and Director) released a Letter to Shareholders updating current activities and outlining the remainder of 2017 in conjunction with the holding of its 2016 Annual Meeting of Stockholders on June 9, 2017 in Beijing, China. The letter is included in its entirety below and on the Company's website at http://www.recon.cn/en/.

To Our Shareholders:

As Co-Founders of the Company, we felt that it was an appropriate time to explain our current business model, accomplishments to date, and specific trends and topics that are important for investors to properly value Recon. Most importantly, we want to outline our vision for Recon's future as a fully integrated provider of energy solutions throughout China.

Next month will mark the 8th anniversary of Recon's IPO and listing on Nasdaq. At the time of our listing, we had a singular vision: to marry distinct but related segments within the oil and gas extraction process to fully integrate our market. We started from providing specialty niche products, such as automation systems, energy efficient furnaces, heat exchange equipment, and extractors. From there we leveraged our strong relationships with China's leading oil producers, CNPC and Sinopec.

We were focused on the execution of a strategy where Recon could out-perform smaller automation mining companies and out-maneuver larger multi-nationals.

Simultaneously, we felt that a company such as Recon could be nimble and take advantage of the digitization of the oil and gas industry to help improve efficiency and safety.

Both of us came from different backgrounds, with Mr. Yin having an IT, automation, and software engineering experience set, and Mr. Chen having a deep-rooted expertise in the petroleum extraction sector. We had worked together in the past and shared a similar vision of the future of the oil and gas industry in China.

In short, we believe there is a disconnect investors understanding of our business model and the achievements we have made to date and attractive opportunity ahead of Recon.

This letter should serve as a starting point for our Company to outline what Recon's current business is, how you as investors should evaluate our accomplishments, and what our goals are for the remainder of 2017 and beyond.

The Evolution of Recon's Current Business Model / The Oil and Gas Extraction Market in China

To understand Recon, it is important to understand the overall oil and gas market in China. China is the world's largest importer of petroleum, second-largest consumer of petroleum products, and fourth-largest producer of petroleum. The oil industry in China is dominated by three state-owned holding companies: China National Petroleum Corporation (CNPC), China Petroleum and Chemical Corporation (Sinopec) and China National Offshore Oil Corporation (CNOOC).  A majority of on-shore oilfield companies are subsidiaries or affiliations of CNPC and Sinopec, and operate independently.

In previous decades, China's petroleum companies mined for petroleum by leveraging the country's abundance of inexpensive labor, rather than focusing on developing new technologies. One of Recon's founding principles was that this process needed to become more efficient and more automated. We began to grow an entity where our automation products and services allow these companies to reduce their labor requirements and improve the productivity of oilfields.

We would work with our largest customers to improve control over the extraction process, increase oil yield efficiency, and improve the transportation of crude oil.

Now, Recon's revenues are derived from the sales and provision of (1) oilfield automation products, (2) equipment for oil and gas production and transportation, (3) waste water treatment products, and (4) engineering services. Our products and services involve most of the key procedures of the extraction and production of oil and gas, and include automation systems, equipment, tools and on-site technical services.

Recon sold products and services to lower the overall cost of oil and gas extraction for our customers as they work to meet China's continuous growing demand for power. Our premise was that the need for traditional product sales throughout all facets of the upstream process would be a solid base from which to build.

Our sales are largely dependent on the oilfield drilling scale, size of the well, the production, and the need for either one or several iterations of our products, and automation would serve to enhance the process as well.

As an example, in May 2017, Recon delivered a 600KW furnace to Changqing Oilfield for an oilfield metering station overseeing several wells with production of about 20 barrels of oil equivalent (BOE) per well per day. While it is difficult to ascertain the median well size in China, it was a sizable well for Recon. As part of this solution, the Company also provided furnaces and automation system installed in each well. And throughout the process we supplied automation processes and expertise to help the site run smoothly. This one project is an excellent case study of how Recon can implement a total solution for its customer, while securing a longer-term service business. The initial sale would integrate all that we do and position us to provide ongoing service for the life of that location.

Equipment and Integration of Automation

The sale of equipment and then integrating automation and ongoing service were to serve as the two legs of Recon. Over the long-term, this creates a stable revenue base that is less affected by the ebb and flow of commodity pricing at the upstream portion of the extraction process. Our resolutions make oil & gas production safer, more efficient, and more compliant with changing industry regulations.

During the recent downturn in oil and gas prices in China over the past few years, many oilfield customers of Recon's were repairing traditional hardware products instead of new installation and deferring many of these expenditures until it would be profitable.

We continued to invest in R&D, currently owning or having applied for over 50 patents registered with the State Intellectual Property Office. These patents cover Recon's automated products and heating related equipment for the petroleum industry, and provided the capitalization to improve at a time when many of our competitors were struggling.

In addition, while our product sales were hurt, Recon's automation processes and services continued to perform. We felt this was a validation of our longer-term plans, and understood that during downturns in the cycle we would not be as impacted as our other competitors in China that were heavily weighted toward traditional product sales.

As an investor, it is important to understand that when Recon announces the sale of a products in a project the actual sale and delivery of this hardware is only one component of the long-term and continuing growth strategy.

What we expect:

Since market pricing has started to turn, China is beginning to explore new opportunities, such as the Changqing Oilfield, a major subsidiary of PetroChina and the largest producing oilfield of China. Recon has announced several sales as part of this project and has begun to see its revenue improve. We recently announced our nine-month financial results, during which sales improved nearly 20%. This trend is continuing.

In addition, we are seeing a more fruitful market for continuing automation services and sales, and expect to see a consistent growth rate of at least 10% regardless of commodity pricing, based on projects we have either signed contracts or anticipate bidding on successfully. We have seen this remain true since inception and show no signs of resistance in the current market.

Lastly, our series of automation systems and services are not limited to sales within the oil and gas sector unilaterally, as there are other markets throughout the energy industry that Recon continues to monitor and bid on actively throughout China. This includes coal and traditional power plants. We are seeking entry into these markets, as Recon's products are naturally adaptable to the most pressing need to improve efficiency.

Expansion of Wastewater Market

There is an old Chinese proverb "In every crisis, there is opportunity."  In the United States, many have a misconception that in Mandarin crisis and opportunity have the same meaning. While that is inaccurate, the concept still applies to the situation affecting Recon during the downturn in oil and gas prices.

It was during this time that both of us (Mr. Yin and Mr. Chen) fully recognized the need to diversify our revenues and simultaneously began identifying a growing problem in the field of wastewater.

The amount of wastewater, or polluted domestic use and industrial water, produced in China is greater than that of the entire flow of the Yellow River per annum. The treatment of this wastewater is particularly important considering the growing population and environmental concerns throughout China, and was an integral component of the 2012 5-year plan.

In the drilling and exporting of oil and gas products, the treatment of wastewater was something that Recon experienced often and felt that our Company was in a prime position to help. Oily wastewater treatment is far more difficult than general industrial wastewater and domestic sewage treatment. We began investing in this business during the downturn, and began developing new products for oilfield wastewater treatment. In addition, our clients are usually located in remote areas and face the grim challenge of ecological conservation, and thus adopt higher emissions standards and strict requirements of their suppliers. We have identified the market niche, know the customers, and believe we can provide these services more efficiently than our competitors.

Over the next few months, our goal is to continue to work with well-recognized wastewater treatment companies to apply these treatments to long standing customers in refineries and oil fields throughout China, as well as to international projects of our customers. We were very pleased to partner with Beijing OriginWater Purification Engineering Technology Co., Ltd ("BOW Engineering"), China's leading waste water treatment company, to provide customized wastewater treatment solution to Golmud Petroleum Refinery for their treatment upgrade program.

This agreement was expected to generate $0.9 million in revenues, which Recon will share. This is a sizable agreement for our company in a growing market that is relatively uncorrelated to our oil and gas product and service business. Recon reported approximately $6.4 million in revenues in all fiscal 2016.

What we expect:

Wastewater segment is a major growth driver for our Company, carries a higher margin and has tremendous growth value in the coming quarters. We are hopeful to sign several new projects either independently or by utilizing partnerships as we expand our customer base. Depending on the growth trajectory, we anticipate revenues from wastewater treatment to begin to take a larger percentage of Recon's overall business.

In addition to reviewing ancillary sources of income such as wastewater, our company continues to gather data and work with SOEs to identify areas throughout the entire upstream, midstream, and downstream cycle where there are inefficiencies in China.

Improving Our Shareholder Relations Globally

When we became public, the one area where we had very little knowledge was that of the global, and specifically U.S. Capital markets.  We were one of many China-based companies that became public during this time and we quickly learned through this process that the primary sentiment from investors was that all China-based companies were "all the same."

We believe in many ways we took our investor base for granted, with the belief that if we continued to build a good operating business, then investors would recognize our efforts. This was not the case and instead, we now understand we must prove our business model again, by rebuilding trust with investors as we show that not all U.S. listed Chinese companies are the same. We believe that we have operated our business in a transparent and forthright manner, but fully recognize that Recon needs to be better at explaining its future plans and communicating with its U.S. investor base.

We still believe that the market is the right one for our Company, because Recon is so unique. There are very few places for the U.S. investor to participate directly in the growth of the oil and gas sector in China, which shows no signs of demand depreciation because of continued industrialization and population growth.

But there is a lot of work to do. We hope this letter will serve as an example of our intension to provide better communication and transparency to our shareholders with regards to Recon's business plan in coming months. We hope to publish another such letter at the end of the year citing what goals were achieved, and plans for the months ahead.

Second, we need to completely overhaul our Company's accessibility to investors through our website. We understand that our website did not provide sufficient information about our company to retail or institutional investors interested in our Company. We have admittedly neglected this over time and will relaunch a more robust site in the next 1-2 months.

Finally, we are very open to meetings and discussions with investors. Our management team will make a commitment to host more roadshows and investors meetings in both US and China over the next few months.

Financial Improvements

Both of us would like to personally thank our financial team, led by our Chief Financial officer, Ms. Jia Liu, for their efforts in producing our financials in a timely and transparent manner. We believe that properly communicating financial trends is essential to reporting how signed contracts and agreements affect our business.

Our revenues for the nine months of fiscal 2017 have improved by 20% to $6.4 million, which does not include any revenue from our recently signed wastewater agreement. We anticipate revenues growing by 30% for the current fiscal year.

Our gross margin improved by 21.3 percentage points to 35.2%, largely due to continued revenues from automation projects and investments in our wastewater business. In addition, we are growing our service business by over 155%, which carries a much higher margin.

We are still not operating at a profitable rate, but our net loss continued to narrow considerably in the nine-month period and we are now in a position where our revenue increase and margin increase are far outpacing our operating spending. We believe the lingering effects of the downturn are behind Recon.

From a balance sheet perspective, we have navigated the downturn without any long-term effects to our capital structure. We continue to improve our collections, and hold no long-term debt of any kind.

Conclusion

It has been a very interesting eight years. Our investor relations counsel recently asked whether the two of us would do it again. The short answer is yes, although we believe we have learned a great deal since our initial decision eight years ago. We had extremely high expectations of both what our Company could do and how Recon would be recognized throughout the global investment community.

We felt that our vision of becoming a fully integrated energy service provider in one of the world's largest oil and gas markets would be recognized by all investors as an exciting story. We still feel this way and just must be better at explaining our vision to a market that likely has painted us with a broad brush. Operating as a U.S. listed public company certainly has not been the path of least resistance for Recon, but ultimately, we believe that our best days remain ahead.

On behalf of our employees in China, and our loyal shareholders, we thank you for your time.

Shenping Yin, Chairman and Chief Executive Officer

Guangqiang Chen, Chief Technology Officer and Director

BEIJING, May 30, 2017 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced the Company's affiliate, Beijing BHD Petroleum Technology Co., Ltd. ("BHD") has signed and completed an Agreement ("Agreement") with Beijing OriginWater Purification Engineering Technology Co., Ltd ("BOW Engineering"), a subsidiary of Beijing OriginWater Technology Co. Ltd. (300070.SZ) ("BOW") to cooperate with BOW Engineering to install and provide maintenance and chemical testing services for an all-in-one wastewater treatment equipment package to Golmud Petroleum Refinery, an affiliate of Qinghai Oilfield, a PetroChina Co., Ltd. (NYSE: PTR) ("PetroChina") subsidiary.

Pursuant to the Agreement, Recon will partner with BOW Engineering to provide a complete set of wastewater treatment equipment and service to an upgrade renovation project for Golmud Petroleum Refinery, which is expected to be completed by the end of May 2017 and the Agreement valued at RMB 6.37 million (approximately USD $0.94 million).

China's new Environment Protection Law and the Emission Standard of Pollutants for the Petroleum Refining Industry ("Emission Standard") enacted by the Ministry of Environmental Protection of PRC ("MOEP") require all petroleum industry companies in China to meet higher standards for industry wastewater by July 1, 2017. As China has increasingly enforced compliance with these requirements, oil and chemical companies have been upgrading their old equipment and treatment technology with renovations like those being undertaken at the Golmud Petroleum Refinery.

Management Commentary

Mr. Guangqiang Chen, co-founder and CTO of Recon stated, "We are very pleased to partner with BOW to provide a customized wastewater treatment solution to Golmud Petroleum Refinery for their treatment upgrade program. Oily wastewater treatment is far more difficult than general industrial wastewater and domestic sewage treatment. In addition, our clients are usually located in remote areas and face the grim challenge of ecological conservation, and thus adopt the higher emissions standards and strict requirements of their suppliers. We overcame these serious challenges in Golmud by cooperating with BOW, a leading wastewater treatment expert in China, to customize a solution based on the Golmud project's unique chemical components and environmental variables. These efforts have been confirmed in the field as well, as we have successfully treated oilfield wastewater and the testing results from the technical bidding period show the treated water quality has greatly exceeded China's one-class A permitted criteria. We expect to assist Golmud Petroleum Refinery to successfully complete its wastewater treatment upgrade project, and look forward to further advancing our brand awareness within the industry. Our research into oilfield oil sludge has positioned us to enter the larger market of oilfield environmental protection."

Third Quarter 2017 Financial Results

• Total revenues for the third quarter of FY2017 increased by 30% to RMB5.9 million ($0.9 million).
• Non-GAAP net loss attributable to common shareholders excluding certain non-cash expenses was RMB2.1 million ($306,137), or RMB0.24 ($0.03) per basic and diluted share, for the third quarter of FY2017, compared to non-GAAP net loss attributable to common shareholders of RMB6.8 million, or RMB1.16 per basic and diluted share, for the same period last fiscal year.

Mr. Shenping Yin, Chairman and CEO of Recon stated, "The third quarter ended March 31, 2017 brought a number of operational achievements, such as our successful expansion into a new market in Changqing for our automation products and our development of wastewater treatment technology. We saw many encouraging signs of the industry beginning to turnaround, which allowed us to further improve our operations. Based on our current contractual agreements and partnerships, as well some positive bidding results, we remain confident in our ability to achieve our goal of a 30% increase in revenues for the fiscal year."

BEIJING, April 28, 2017 /PRNewswire/ -- Recon Technology, Ltd. (RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced the Company's wholly-owned subsidiary, Nanjing Recon Technology Co. Ltd. ("Nanjing Recon") has received a renewed National High-Tech Enterprise status and certification by the Science and Technology Department of Jiangsu Province.

The National High-Tech Enterprise status allows Nanjing Recon to benefit from a reduced corporate income tax rate of 15%, compared to 25% for companies without the national high-tech status. Nanjing Recon first received this status in 2009, and has since been renewed on three occasions. This renewed National High-Tech Enterprise status allows the Company to continue to receive the preferential income tax rate treatment until 2019.

Management Commentary

Mr. Shenping Yin, Chairman and CEO of Recon stated, "We are pleased to receive the renewed National High-Tech Enterprise status and to continue benefitting from the reduced corporate income tax rate. The other subsidiary of the Company, Beijing BHD Petroleum Technology, Ltd, has also qualified as a National High-Tech enterprise since 2009. We believe it reflects Recon's commitment to technological advancement, and we continue to invest in enhancing our automation services and solutions.  Research and development remains an integral part of our long-term development strategy, as we feel that it separates Recon from our lesser capitalized competitors and improves our value proposition to our customer base throughout China." 

Second Quarter 2017 Financial Results

• Total revenues for the second quarter of FY2017 increased 5.1% to RMB 30.3 million (USD 4.36 million).
• Non-GAAP net income attributable to ordinary shareholders excluding certain non-cash expenses was RMB3.3 million ($469,391), RMB0.53($0.08) per basic share, or RMB 0.48 ($0.07) per diluted share, for the second quarter of FY2017, compared to non-GAAP net loss attributable to common shareholders of RMB708,267, or RMB0.13 per basic and diluted share, for the same period last fiscal year

Mr. Shenping Yin, Chairman and CEO of Recon stated, "We reported an excellent operating quarter that reflected strong operations in the oil and gas sector and continued development towards becoming a true global energy service provider. The second quarter was highlighted by the delivery of our furnace equipment to Changqing oilfield, and we are seeing a trend of more capital spending by larger oil and gas producers in China. Our strong financial condition has benefitted the Company through this prolonged period of lower oil and gas pricing, as Recon continued to upgrade its service offering to a greater degree than that of its lesser capitalized peers. We were pleased to generate cash from operations during the period while still steadily increasing our R&D expenditures to broaden our reach to other potential markets, and reported improved profitability excluding certain non-cash items. We recently announced the approval by ABB as a vendor, which allows Recon to bid as a service provider for larger automation projects and is a reflection of our commitment to the exploration and development of new business opportunities outside our traditional oilfield sector."

BEIJING, Feb. 6, 2017 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced it has received an Authorization Letter ("Letter") from ABB,  a global leader in power and automation technology, that provides Recon with the ability to participate in bidding for various projects in the future, including automation system products projects.

The Company anticipates cooperating with ABB in the future to provide integrated automation solutions, products and product quality assurance services for various projects beyond oil industry. For any successful project bids, Recon expects it would provide on-site project commissioning and maintenance services.

Management Commentary

Mr. Shenping Yin, Chairman and CEO of Recon stated, "We are pleased to receive authorization from ABB, giving Recon recognition from the global pioneer of automation technology. Over the years, we have been committed to the exploration and development of new business opportunities outside our traditional oilfield sector. We are confident that our experience within the energy industry, as well as the team's efforts and constant communication with ABB will be an advantage to us in the bidding process in coming periods. We believe being approved as a qualified provider of services in this field is an important step towards participating in projects going forward. We remain committed to continuously improving our breadth of automation technology solutions and capabilities in order to broaden our customer base."

BEIJING, Jan. 23, 2017 /PRNewswire/ -- Recon Technology, Ltd. (RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced the recent delivery of furnace equipment to PetroChina Changqing Oilfield Company ("PCOC"), China's largest oilfield company and a subsidiary of PetroChina ("CNPC", NYSE:PTR).

In December 2015, Recon qualified as Class A furnace supplier for PetroChina. The Company has provided its solutions for use in PCOC's various projects. This recent delivery is based on sales contract the Company entered in December 2016 with a total value of RMB2.7 million.

Recon has completed furnace sales contracts in total of RMB20.33 million since the Company commenced providing its products and services in the Changqing oilfield in March 2016.

Management Commentary

Mr. Shenping Yin, Chairman and CEO of Recon stated, "We are pleased to complete another delivery of our furnace equipment to Changqing oilfield, and are seeing a trend of more capital spending by larger oil and gas producers in China.  We feel the additional procurement from PCOC is a strong verification that Recon's continued investment in R&D in recent years has positioned the Company to take advantage of this trend.  We offer a total solution that lowers the ultimate cost and increases efficiency for our customers, which demonstrates real progress in applying our technologies to new industries and applications.  We were pleased to see CNOOC Limited's (CEO) recent announcement that it plans to increase its capital expenditures for the first time in three years, which reflects many of the trends we are seeing among China's upstream producers.  We have worked to diversify our product offering to serve all facets of the oil production and development cycle and feel that we are poised to benefit in 2017 from this increased spending."   

BEIJING, Dec. 14, 2016 /PRNewswire/ -- Recon Technology, Ltd. (RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced the recent completion of contracts entered into in November 2016 with PetroChina Changqing Oilfield Company ("PCOC"), China's largest oil producer and subsidiary of PetroChina ("CNPC"), (NYSE: PTR). The total value of these completed contracts was more than RMB 5 million and will be recorded as revenue in fiscal 2017. Recon was chosen in a highly competitive bidding process based on a combination of its expertise, price, and past successes. This is also a significant headway since the Company was qualified as Class A furnace supplier for PetroChina in December 2015 (for further information, please refer to December 14, 2015, "Recon Technology, Ltd. Subsidiary Qualifies as Class A Furnace Supplier for PetroChina and Inks RMB 3.22 Million (US$0.5 million) Contract").

The Company began working in the Changqing oilfield in March 2016, and to date the Company has completed furnace sale contracts totaling RMB15.88 million.

BEIJING, Dec. 6, 2016 /PRNewswire/ -- Recon Technology, Ltd. (RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced it has been awarded a patent for its proprietary Oilfield Wastewater Treatment Device by China's State Intellectual Property Office.

Oily wastewater, as the outcome of the oilfield exploitation process, contains water, various oils, chemical polymers, heavy metals, microorganisms, and suspended and dissolved solids. The treatment of oilfield wastewater represents not only serious operational issues, but also a major environmental challenge to all oil producers. As a total solution provider to Chinese stated owned petroleum companies, Recon has developed the Oilfield Wastewater Treatment Device to improve the effectiveness of water treatment, reduce infrastructure investment and operating costs for oil companies. The patented device can separate the sewage sludge and oil pollution from crude oil within one integrative equipment and at the same time, produce water that is qualified for direct discharge, reinjection or other oil-company projects, thus significantly increasing the processing effectiveness and cost-savings of wastewater treatment. In addition to this patent, the company is currently applying for several other patents designed to facilitate removal of toxic substances and metallic elements from wastewater.

Mr. Shenping Yin, Chairman and CEO of Recon stated, "We started developing new products for oilfield wastewater treatment last fiscal year and have achieved preliminary business results. Two major advantages of our device and resolution are to dramatically save space and reduce costs for our clients, which are particularly attractive, given current low oil prices. We are confident that, with this new patent and our other innovative technology and business solutions in wastewater treatment, we will further enhance our strength in this high growth business segment."   

First Quarter 2017 Financial Results

• Total revenues for Q1 FY2017 were RMB7.8 million ($1.2 million),* an increase of RMB4.2 million or 117.1% from RMB3.6 million for the same period last fiscal year.
• Net loss and net loss attributable to ordinary shareholders for Q1 FY2017 was RMB5.5 million ($0.8 million), or RMB0.92 ($0.14) per diluted share, compared to RMB8.8 million, or RMB1.63 ($0.26) per diluted share, for the same period last fiscal year.

Mr. Shenping Yin, Chairman and CEO of Recon stated, "We continued to develop and expand our new oilfield waste management business this quarter. We are pleased with these results so far in fiscal 2017. And we look forward to expanding more business sectors and potential markets in the following quarters."

BEIJING, Sept. 28, 2016 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced its financial results for fiscal year ended June 30, 2016.

Fiscal Year 2016 Highlights:

• Revenues were approximately RMB42.7 million ($6.4 million) for the year ended June 30, 2016, a decrease of 17.1% from RMB51.5 million from the previous fiscal year.
• During fiscal year 2016, the Company expanded the new market of oilfield waste water treatment, with revenue of RMB2.3 million.
• Gross profit was approximately RMB7.2 million ($1.1 million) for the year ended June 30, 2016, compared to approximately RMB10.1 million for the same period in 2015.
• Operating loss was RMB39.9 million ($6.0 million) for FY2016, compared to operating loss of RMB35.5 million for FY2015.
• Net loss attributable to Recon for FY2016 was RMB40.9 million ($6.2 million), or RMB7.23 ($1.09) per diluted share, compared to net loss attributable to Recon of RMB31.5 million, or RMB6.45 per diluted share, for FY2015.
• Although total revenue for the year ended June 30, 2016 decreased RMB8.8 million or 17.1% from the previous fiscal year, our service business increased 1,040% to RMB1.2 million from fiscal year of 2015 and we expanded the new market of oilfield waste water treatment in fiscal year 2016.

Mr. Shenping Yin, Chairman and CEO of Recon stated, "We are facing a tough economic environment, however we expect to expand to new markets and develop more opportunities in the following year to better prepare for the eventual recovery of the oil and gas industry."

Third Quarter 2016 Financial Results

• Total revenues for the third quarter of FY2016 were RMB 4.5 million ($0.7 million), a decrease of 77.3% from the same period of last fiscal year.
• Adjusted net loss attributable to Recon was RMB 6.7 million ($1.0 million), or RMB 1.16 ($0.18) per diluted share, for the third quarter of FY2016, compared to adjusted net loss attributable to Recon of RMB 0.6 million, or RMB 0.12 per diluted share, for the same period last fiscal year.

Mr. Shenping Yin, Chairman and CEO of Recon stated, "Affected by unfavorable oil prices and tough market competition, our business has remained sluggish. We cannot determine when this market situation will recover, but our management team is working to expand into new markets based on our long-term business relationships and good reputation in the industry. "

Second Quarter 2016 Financial Results

• Total revenues for the second quarter of FY2016 were RMB 28.84 million ($4.44 million), an increase of 35.2% from the same period of last fiscal year.
  
• Adjusted net loss attributable to Recon was RMB 0.71 million ($0.11 million), or RMB 0.13 ($0.02) per diluted shares, for the second quarter of FY2016, compared to adjusted net income attributable to Recon of RMB 2.04 million, or RMB 0.42 per diluted share, for the same period of last fiscal year.

Mr. Shenping Yin, Chairman and CEO of Recon stated, "Despite continuing macro headwinds and sluggish oil prices, we ended the year of 2015 on a high note with revenues growing 35.2% to the highest level in two years, thanks to strong sales in hardware and service. Entering 2016, our furnace business is on the path to recovery following major bidding contract win and Class A Furnace Supplier qualification with PetroChina in December while our newly acquired QHHY subsidiary starts to make meaningful contribution to both our top line and bottom line. We look forward to a stronger year in 2016."

BEIJING, Feb. 2, 2016 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, announced today that Beijing BHD Petroleum Technology Co., Ltd. ("BHD"), a wholly-owned subsidiary of the Company, received two orders for a total  of RMB 2.1 million (~US$0.3 million) from PetroChina's oilfield companies. The first order, dated January 12, 2016, is to supply two heat exchanger units, a major component of furnaces, to PetroChina's Jilin Oilfield for RMB 650 thousand (~US$0.1 million), with a scheduled delivery date of no later than March 15, 2016. The second order, dated January 21, 2016, is to supply two furnaces to PetroChina's Huabei Oilfield for RMB 1.47 million (~US$0.2 million), with a scheduled delivery date of February 29, 2016.

Both orders are part of PetroChina's furnace procurement program (the "Procurement Program") that BHD bided on and for which BHD has received a Class A Furnace Supplier qualification, as was previously announced by the Company on December 14, 2015. These two orders, combined with the RMB 3.22 million (~US$0.5 million) order received from PetroChina's Huabei Oilfield in December 2015, brings the aggregate order value to more than RMB 5.3 million (~US$0.8 million) to date for the Company under the Procurement Program.

Mr. Shenping Yin, Chairman and CEO of Recon, stated, "The Procurement Program, which covers a two year period from October 2015 to September 2017 with expected bids totaling more than RMB 2.9 billion (~US$457 million), provides Recon with an opportunity to boost our furnace business and expand our presence at PetroChina's oilfield companies. We expect to receive more follow-on orders as part of the Procurement Program in coming quarters."

BEIJING, Jan. 20, 2016 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, announced today that Nanjing Recon Technology Co., Ltd. ("Nanjing Recon"), a subsidiary of the Company, has obtained qualifications to provide services for some state-owned electric companies and, as a result, has participated in bidding projects, including projects for China Huadian Corp.

"We are thrilled to have the opportunity to participate in the bidding process on projects as a qualified contractor/subcontractor for some of the largest state-owned electric power companies," said Mr. Shenping Yin, Chairman and CEO of Recon. "This marks our first attempt at marketing our products and services outside of the oil and gas industry and potentially opens the door for us to sell our proprietary DCS, SCADA, automatic instruments and meters, and related project services. We are optimistic that our Nanjing Recon team will win some of the biddings in coming quarters."

BEIJING, January 12, 2016 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, announced today that Beijing BHD Petroleum Technology Co., Ltd. ("BHD"), a subsidiary of the Company, has executed an agreement (the "Agreement") with Qinghai Oilfield, a PetroChina Co., Ltd. ("PetroChina") subsidiary, to sell chemical agents (the "Chemicals") to Qinghai Oilfield. The Chemicals, including Ion Modifiers and Water Quality Stabilizers, are designed and tested by BHD and are to be used for wastewater treatment at the Qinghai Oilfield. This Agreement, which is valued at RMB 3.98 million (~$0.6 million), is expected to be completed by the end of FY2016.

This Agreement follows BHD's recent win of a major bidding contract with PetroChina that qualified BHD as a Class A Furnace Supplier to all of PetroChina's oilfield companies and a RMB 3.2 million (~$0.5 million) contract to supply five furnaces to PetroChina's Huabei Oilfield.

"We continue to grow our presence at PetroChina's oilfield companies," said Mr. Shenping Yin, Chairman and Chief Executive Officer. "Today's announcement follows months of efforts by our BHD team and marks another breakthrough for us with PetroChina as we seek opportunities to expand our product and service offerings. The oilfield waste water treatment segment is a brand new market for Recon. Aside from the chemicals, we expect to provide more professional waste water treatment equipment to our oilfield client in the coming year, which we are in the process of developing now. We are optimistic that this consignment sale of third party chemicals has the potential to evolve into a new line of business on a recurring basis for Recon."

BEIJING, December 14, 2015 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, announced today that Beijing BHD Petroleum Technology Co., Ltd. ("BHD"), a wholly-owned subsidiary of the Company, won a major bidding contract with PetroChina Co., Ltd. ("PetroChina") and has been deemed a Class A Furnace Supplier to all PetroChina's oilfield companies. With this bidding and qualification, BHD will participate in PetroChina's furnace procurement program, which was worth over RMB 2.9 billion (approximately $457 million) during the period Oct. 2015 to Sep. 2017.

The Company also announced today that BHD has secured a RMB 3.22 million (~$0.5 million) contract to supply five furnaces to PetroChina's Huabei Oilfield under this Bidding process.

The Centralized Procurement program is a major part of PetroChina's procurement strategy, led by the Group Company of PetroChina. Under this program, PetroChina collects material requirements from its subsidiary companies and conducts a strategic bidding process to secure a limited number of designated suppliers. All purchases of related products are then procured from the designated Class A suppliers who were selected through the bidding process. This process helps PetroChina and its suppliers establish long-term relationships and realize mutual benefits and development. The bidding process for furnaces began in October 2014, with around 130 suppliers competing in two rounds of bidding based on technical and commercial performance standards. Only 27 companies were selected in this process, of which 16 companies are PetroChina affiliates or subsidiaries, eight are private companies qualified as Class A suppliers and the remaining three qualified as Class B suppliers.

Mr. Shenping Yin, Chairman and CEO of Recon, stated, "This qualification and contract win is a testament to our technical strength and service quality as one of the leading independent oilfield product and service providers to PetroChina. With this qualification, Recon now can participate in all of PetroChina's furnace markets. Beyond our current client base, such as Huabei Oilfield, Qinghai Oilfield and Jilin Oilfield, we expect meaningful furnace orders from PetroChina's affiliated oilfields, such as Daqing Oilfield, Jidong Oilfield, Tuha Oilfield and Changqing Oilfield, to drive a healthy recovery of our furnace business in the next few years. As there are only a limited number of PetroChina approved suppliers, the competition is significantly reduced. This will allow us to increase our client base, while reducing resources devoted to building our client base, and allow us to devote more of our efforts to product improvement to better serve our clients.

BEIJING, Dec. 7, 2015 /PRNewswire/ -- Recon Technology, Ltd. (RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced that the Company will acquire a 100% equity interest in Qinghai Hua You Downhole Technology Co., Ltd. ("QHHY"), a PRC corporation and oilfield service provider in Qinghai province, pending shareholder approval of the proposed transaction.

Pursuant to a share purchase agreement executed as of December 1, 2015 (the "Effective Date"), the Company has agreed to acquire a 100% equity interest in QHHY for $6.0 million, including $3.6 million worth of Recon ordinary shares and $2.4 million in cash, with QHHY achieving net profit growth of 15% for fiscal 2016 and fiscal 2017. The Company's shares will be issued at 120% of the weighted average closing price of Recon's ordinary shares for the past 20 trading days prior to the Effective Date and will be issued only after Recon obtains shareholder approval for the transaction, which it expects to obtain sometime around February 2016. The shares will be issued to the QHHY stockholders, who together collectively own 100% of the equity interest in QHHY. All ordinary shares issued pursuant to this agreement will be subject to a 12-month lock up period. All cash consideration will be payable based on QHHY achieving certain annual net profit targets for fiscal 2016 and fiscal 2017, which will be determined based on Recon's review of QHHY's audited financial statements in September 2016 and September 2017 (For specific payment method, please refer to Exhibit 1).

Exhibit 1: (US$ million) Earn-out Payment Scenario.

The transaction is subject to Recon shareholder approval and certain other customary closing conditions.

Mr. Shenping Yin, Chairman and CEO of Recon, stated, "The acquisition marks an important milestone for Recon as this will be our first major acquisition since our IPO in July 2009. We are thrilled to acquire QHHY, a niche, profitable oilfield service company with a strong relationship with PetroChina. According to the domestic energy strategic requirements of 'adjust and stabilize the oil production in the east while explore the potential in the west' put forward by PetroChina, west China has been playing a key role for China's energy industry. Qinghai province is one of the most important areas with remarkable reserve of oil and natural gas. We view QHHY as a good fit to our long term vision and goals and expect it to augment our capacity to grow in adjacent businesses."

Item 1.01 Entry into a Material Definitive Agreement.

 

On December 1, 2015, Recon Technology Ltd. (the “Company”) entered into a share purchase agreement (the “SPA”) by and among Qinghai Hua You Downhole Technology Co., Ltd., a P.R. China limited liability company (“QHHY”), the shareholders of QHHY, and Recon Hengda Technology (Beijing) Co., Ltd., our wholly owned P.R. China subsidiary (“Recon BJ”), pursuant to which Recon BJ agreed to acquire QHHY in exchange for $3.60 million worth of the Company’s ordinary shares (the “Shares”) and up to $4.8 million in cash. Pursuant to the SPA, the Shares will be issued at 120% of the weighted average closing price of the Company’s ordinary shares and will be subject to a 12-month lock-up period. The Company’s payment of the cash consideration in the transaction is subject to QHHY achieving certain net revenue targets for fiscal year 2016 and 2017, as described in more detail in the SPA. QHHY was partially owned by one of the Company’s directors, Chen Guangqiang. Mr. Chen sold his ownership interest in QHHY on January 17, 2015 but remains a management level employee of QHHY. The current shareholders of QHHY are not affiliated with the Company.

 

QHHY has agreed, among other covenants, to cause its business to operate in its ordinary course, consistent with past practice, during the period between execution of the SPA and the closing of the transaction and to not engage in specified types of actions during this period. The Company may terminate the SPA if, among other things, the Company’s due diligence of QHHY has not been completed to its satisfaction and if shareholder approval of the transaction is not obtained. The Company expects to hold a shareholders’ meeting sometime in February 2016 following the Company’s receipt of QHHY’s audited financial statements.

 

In conjunction with the SPA, Recon BJ entered into a series of control agreements (the “Control Agreements”) with QHHY and its shareholders related to the transfer of ownership in QHHY to Recon BJ. The Control Agreements consist of an exclusive equity interest purchase agreement (the “Equity Interest Purchase Agreement”), the equity interest pledge agreement (the “Equity Pledge Agreement”), powers of attorney for each of the three shareholders of QHHY (the “Powers of Attorney”) granting Recon BJ exclusive authority to perform the duties and obtain the rights of the shareholders of QHHY, and an exclusive technical consulting and service agreement (“Exclusive Technical Consulting and Service Agreement”) granting Recon BJ the right to provide exclusive technical consulting services to QHHY in exchange for 100% of QHHY’s quarterly profit, among other things. The Control Agreements will not become effective until after the Company obtains shareholder approval of the transaction.

Item 3.02 Unregistered Sales of Equity Securities.

On November 19, 2015, Recon Technology, Ltd. (the “Company”) entered into a mold and software development services agreement with Bei Jing Tian Hong Tong Xin Technology Co. Ltd. (“BJTH”), a P.R. China limited liability company, pursuant to which BJTH will receive 260,185 restricted ordinary shares of the Company’s stock as payment for its services. The shares were issued pursuant to an exemption from registration under Regulation S of the Securities Act of 1933, as amended (the “Act”).

On November 19, 2015, the Company agreed to issue a total of 100,000 restricted ordinary shares of the Company’s stock to two investor relations firms in exchange for services. The shares were issued pursuant to an exemption from registration under Regulation D of the Act.

First Quarter 2016 Financial Results  

Total revenues for the first quarter of FY2016 were RMB3.59 million ($0.57 million), a decrease of 16.5% as compared to the same period last fiscal year.

• Gross profit for the first quarter of FY2016 was RMB0.40 million ($0.06 million), a decrease of 34.7% as compared to the same period last fiscal year. Gross margin was 11.2% for the first quarter of FY2016, as compared to 14.3% for the same period last fiscal year.
• Adjusted net loss attributable to Recon was RMB7.52 million ($1.18 million), or RMB1.38 ($0.22) per diluted shares, for the first quarter of FY2016, compared to RMB2.66 million, or RMB0.56 per diluted share, for the same period last fiscal year.

Mr. Shenping Yin, Chairman and CEO of Recon stated, "During the three-month period ended September 30, 2015, we saw a continued downturn in oil and gas prices. Our customers still have not increased their investment in the upstream business. However, we are actively seeking new breakthrough business opportunities and we are confident for our future growth."

BEIJING, September 25, 2015 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today reported its financial results for the fiscal year 2015, which ended June 30, 2015.

FY2015 Financial Highlights:

• Total revenues for FY2015 were RMB51.5 million ($8.5 million), a decrease of 44.9% from FY2014.
• Gross profit for FY2015 was RMB10.1million ($1.7 million), a decrease of 68.8% from FY2014. Gross margin was 19.6% for FY2015 compared to 34.7% for FY2014.
• Operating loss was RMB35.5 million ($5.8 million) for FY2015, compared to operating income of RMB2.8 million for FY2014.
• Net loss attributable to Recon for FY2015 was RMB31.5 million ($5.2 million), or RMB6.45 ($1.06) per diluted share, compared to net income attributable to Recon of RMB0.8 million, or RMB0.18 per diluted share, for FY2014.
• Adjusted EBITDA (non-GAAP) was negative RMB10.8 million ($1.8 million) for FY2015, compared to positive RMB8.8 million for FY2014.
• Adjusted net loss attributable to Recon was RMB9.9 million ($1.6 million), or RMB2.03 ($0.33) per diluted shares, for FY2015, compared to adjusted net income attributable to Recon of RMB5.1 million, or RMB1.17 per diluted share, for FY2014.

Mr. Shenping Yin, Chairman and CEO of Recon stated, "The past twelve months have been difficult for us as our major customers cut their capital budgets, canceled or delayed new projects in light of slowing domestic production for oil and gas and plunges in oil and gas prices. As a result, we faced continued challenges throughout the fiscal year of 2015 and saw declines in overall revenues for the first time in the Company history. While the oil and gas industry is likely to continue to face multifaceted challenges in the near term, we firmly believe that we are well prepared to withstand the storm and to capitalize on an eventual recovery of the oil and gas industry."

BEIJING, August 6, 2015 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced that it will set up a graduate student workstation (the "Workstation") in collaboration with the College of Information Science & Technology of Nanjing Agricultural University ("CIST-NAU").

Pursuant to a cooperation agreement entered into on August 5, 2015, by and between CIST-NAU and Nanjing Recon Technology Co., Ltd. ("Nanjing Recon"), the Company's wholly-owned subsidiary which specializes in providing automation services to oilfields in China, the two parties have agreed to set up a scientific research and training base for master's and doctoral students of CIST-NAU.

"Our faculty and graduate students are excited about the prospect of the Workstation and look forward to fruitful cooperation and collaboration with Recon," commented Dr. Shuiqing Huang, Dean of CIST-NAU.

"With current enrollment of over 26,400 full-time students, including over 9,400 full-time master's and doctoral students, NAU is a premier university under the administration of Ministry of Education. Often ranked among the nation's top 100 universities, NAU is a national key university with both Project 211 and Project 985 designations," said Mr. Shenping Yin, Chairman and Chief Executive Officer of Recon. "We have high hopes for the Workstation and expect a potential boost in our R&D capabilities through this mutually-beneficial arrangement."

BEIJING, July 29, 2015 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced that it, along with its wholly-owned PRC subsidiary, Recon Hengda Technology (Beijing) Co., Ltd., has entered into a memorandum of understanding (the "MOU") with Qinghai Huayou Downhole Technologies Co., Ltd. ( "QHHY"), a PRC corporation and oilfield service provider in Qinghai province.

Pursuant to the MOU entered into by and between the Company and QHHY on July 29, 2015, the Company has agreed to acquire a 100% stake in QHHY with a combination of cash and the Company stock (the "Transaction"). The terms and conditions of a definitive agreement are currently being negotiated between the two parties. Further details will be disclosed upon completion of the definitive agreement.

Mr. Shenping Yin, Chairman and Chief Executive Officer of Recon, commented, "We are excited about the unique opportunity that QHHY represents. QHHY's expertise in downhole technology will further strengthen and complement our existing product and service offerings. In addition, QHHY has demonstrated strong growth and profitability since its inception. We anticipate that QHHY's long-term contract oriented business model will provide stable cash flow which will smooth out the seasonality inherent in our existing business. We view QHHY as a good fit to our long term vision as we actively seek accretive M&A opportunities to accelerate our growth and earning power."

BEIJING, June 10, 2015 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced that the Company has received Contractor (Subcontractor) Qualification (the "Qualification") from Jianghan Oilfield Construction Engineering Company ("JOCEC"), a subsidiary of China Petroleum & Chemical Corporation (NYSE: SNP) ("Sinopec"). The Qualification, which is valid for one year from June 4, 2015 and extendable on a yearly basis thereafter, qualifies Recon as a general contractor (subcontractor) to participate in certain construction and engineering projects at JOCEC ranging from the expansion and renovation of existing facilities to the construction of new facilities. In connection with the Qualification, the Company also announced today that it has secured a contract with JOCEC worth approximately RMB 550,000.

Mr. Shenping Yin, Chairman and Chief Executive Officer of Recon, commented, "The Qualification, combined with the entry permit awarded by JOCEC earlier this year, clears the path for our increasing presence at JOCEC and sets the stage for a broader and deeper relationship with Sinopec's subsidiaries, that collectively have contributed 19.6% of our total revenues in fiscal year 2014.

Third Quarter 2015 Financial Results

• Total revenues for the third quarter of FY2015 were RMB20.0 million ($3.3 million), an increase of 9.8% from the same period of FY2014.
• Adjusted EBITDA (non-GAAP) was RMB1.7 million ($0.3 million) for the third quarter of FY2015, compared to RMB0.5 million for the same period of FY2014.

Mr. Shenping Yin, Chairman and CEO of Recon stated, "It has been a challenging quarter for the oil and gas industry with the plunge in oil and gas prices continuing to put severe pressure on China's already-weak growth momentum, forcing many of our major customers to cut their CAPEX budget and to cancel or delay projects and thus hampering our efforts to carry out business plan. Despite these challenges, revenues increased by 9.8% from the same quarter last year while both gross and operating margins also improved from a year ago, thanks to solid contribution from our automation business as a result of our heightened sales and marketing effort."

Mr. Yin continued, "While we continue to face significant headwinds in the near term, we believe challenges can turn into potential opportunities for us as our competitors also struggle to stay afloat. With relatively light in assets, strong R&D capability, and deep industry connections forged by years of providing a wide range of hardware, software and service solutions to leading SOEs such as Sinopec and Petro China, in our view Recon is well prepared to withstand the challenges ahead."

Item 1.01 Entry into a Material Definitive Agreement.

On May 13, 2015, Recon Technology, Ltd. (the “Company”) entered into an Equity Distribution Agreement (the “Agreement”) with Maxim Group LLC (the “Maxim”) to create an at-the-market equity program under which the Company from time to time may offer and sell its ordinary shares, per value $0.0185 per share, having an aggregate offering price of up to $10,000,000 (the “Shares”) through Maxim, as agent. Subject to the terms and conditions of the Agreement, Maxim will use its commercially reasonable efforts to sell the Shares from time to time, based upon the Company's instructions. The Company has provided Maxim with customary indemnification rights, and Maxim will be entitled to a commission at a fixed commission rate of 3.5% of the gross sales price of Shares sold under the Agreement.

Sales of the Shares, if any, under the Agreement may be made in transactions that are deemed to be “at-the-market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made by means of ordinary brokers’ transactions, including on the NASDAQ Capital Market, at market prices or as otherwise agreed with Maxim. The Company has no obligation to sell any of the Shares, and may at any time suspend offers under the Agreement or terminate the Agreement.

The Shares will be issued pursuant to the Company’s previously filed and effective Registration Statement on Form S-3 (File No. 333-190387). On August 6, 2013, the Company filed a base Prospectus and on May 13, 2015, filed a Prospectus Supplement relating to the at-the-market offering with the Securities and Exchange Commission. This Report shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Shares in any state in which such offer, solicitation or sale would be unlawful prior to registration of qualification under the securities laws of any such state.

Recon Technology

Up to $10,000,000

Ordinary Shares

 
This amendment No. 1 to prospectus supplement (the “Amendment No.1”) is being filed solely to correct a typographical error which appear in the prospectus supplement dated May 13, 2015 (“Prospectus Supplement”) and to consistently present the increase in net tangible book value per share to investors participating in this offering in the dilution table and the paragraph immediately above it. This Amendment No. 1 should be read in conjunction with the Prospectus Supplement and the prospectus dated August 6, 2013 the (“Prospectus”), each of which are to be delivered with this Amendment No. 1. This Amendment No. 1 amends only those sections of the Prospectus Supplement set forth in this amendment; all other sections of the Prospectus Supplement remain unchanged.

DILUTION

If you invest in our ordinary shares, your interest will be diluted immediately to the extent of the difference between the public offering price per share and the adjusted net tangible book value per share of our ordinary shares after this offering.

Our net tangible book value on December 31, 2014 was approximately $16 million, or $3.39 per share. “Net tangible book value” is total assets minus the sum of liabilities and intangible assets. “Net tangible book value per share” is net tangible book value divided by the total number of shares outstanding.

After giving effect to the sale of our ordinary shares in the aggregate amount of $2,203,306 in this offering at an assumed offering price of $1.88 per share, which was the last reported sale price of our ordinary shares on the NASDAQ Capital Market on May 11, 2015, and after deducting estimated offering commissions and expenses payable by us, our net tangible book value as of December 31, 2014 would have been approximately $18.0 million, or $3.05 per ordinary shares. This represents an immediate decrease in net tangible book value of $0.34 per share to our existing stockholders and an immediate increase in net tangible book value of $1.17 per share to investors participating in this offering. The following table illustrates this dilution per share to investors participating in this offering:

Assumed offering price per share		$	1.88
Net tangible book value per share as of December 31, 2014		$	3.39
Dilution per share attributable to new investors		$	0.34
Net tangible book value per share after giving effect to this offering		$	3.05
Increase per share to new investors		$	1.17

BEIJING, March 3, 2015 /PRNewswire/ -- Recon Technology, Ltd. (Nasdaq: RCON) ("Recon" or the "Company"), a leading independent Chinese oilfield services provider to oil and gas companies and their affiliates, today announced release of a 3D demonstration video explaining its major business, which includes digital oilfield products series, furnace series and down hole services.

This video explains the oilfield production process which is the focus of Recon's business and how Recon's products help CNPC (China National Petroleum Corporation) and Sinopec (Sinopec Group) to improve the efficiency and productivity in the oil production process.

Mr. Sheping Yin, Chairman and CEO of Recon stated, "Oilfield production is not common knowledge for most people. The biggest obstacle during our communication with investors is that it's very hard for them to understand where Recon's products are used and why they are important to oil companies. We briefly explained the technical issues in this video which should help our investors have a general understanding of our industry and our business."

"As promised, we are putting our best efforts forward to build a more comprehensive communication platform with investors. We believe this video will provide a more vivid explanation of Recon's business to the investors and the public."

BEIJING, February 18, 2015 /PRNewswire/ -- Recon Technology, Ltd. (Nasdaq: RCON) ("Recon" or the "Company"), a leading independent Chinese oilfield services provider to oil and gas companies and their affiliates, today announced that it had entered into a 5-year renewable cooperation agreement with Aktobe Petroleum Machinery Co. Ltd. ("Aktobe Petroleum Machinery"), a joint venture between China Petroleum Technology & Development Corporation (CPTDC) and China National Petroleum Corporation (CNPC), with respect to the construction of technical service center for pressure containers such as heating furnaces and separators. Pursuant to this agreement, Recon and Aktobe Petroleum Machinery will work together to develop the marketing, sales, maintenance and related services for pressure containers in Kazakhstan.

Mr. Gunagqiang Chen, CTO of Recon, who has over 30 years of experience in oil and gas industry, stated, "Heating furnaces and separators have been one of Recon's leading hardware products for years. We've sold approximately 600 units of different kinds of heating furnaces since our inception. High combustion efficiency is one of our heating furnaces' major advantages. As our products are well accepted by customers, we are very proud to follow our clients to further expand our international market, which is one of our major growth strategies.

"This is another important development in our overseas operations after we won the contract to provide automation systems hardware and various maintenance services in Turkmenistan." Mr. Chen continued: "We discussed further developing our international market with the investors in 2014. This agreement demonstrates that Recon is able to steadily implement its growth strategy."

Mr. Chen also said, "According to this agreement, Recon will be in charge of marketing, sales, maintenance, quality control and after-sale services of heating furnaces and separators in Kazakhstan. For many years, we have focused on research and development and the improvement of our products' functionality, and as such, our products have been well accepted by our customers. Pursuant to this agreement, this technical center will provide all heating furnace and some other related parts of pressure container sales and services in middle Asia. As such, we anticipate our heating furnaces business will increase significantly in 2015."

Second Quarter 2015 Financial Results

• Revenues declined 53.9% to $3.5 million from $7.5 million^* in the second fiscal quarter last year due to projects delay or cancellation. Nevertheless, management believe customer interest in Recon products and technology remain strong.
• Diluted EPS (U.S. GAAP) was $0.18 per share in the second quarter of FY 2015, compared with $0.22 per share in the second quarter of FY2014.

Mr. Sheping Yin, Chairman and CEO of Recon stated, "Affected by the lower oil and gas price worldwide and decreased CAPEX expense of our clients, some of our projects are postponed or cancelled, and our financial performance for the first half year of fiscal 2015 may not be satisfactory. Overall, based on our reported revenue in this second quarter, our performance this quarter improved significantly compared to last quarter. The dollar amount of our current contracts on hand and actual onsite workload also increased significantly during this quarter. As such, our management continue to be optimistic for the coming year. We believe that the continued decline of oil and gas prices stimulated oil companies' demand for technology and better production management for producing wells, which is exactly the focus of our business. We believe this is a great opportunity for us and our years of investment in R&D are paying off. We remain optimistic aboutour future growth."

Outlook

Mr. Yin commented further, "Most of our peer companies need to undertake heavy burden of depreciation and amortization due to their excessive investment in the past few years and are suffering from heavy losses now. Compared to them, as a light asset service company, we believe our burden is smaller and have more flexibility to adjust and satisfy our clients' requirements. As our clients, CNPC and Sinopec, launched their reform of intelligent oilfield construction, we see continuing opportunity to expand our share of our customers' budgets with products and services that improve their productivity, safety and reduce their producing costs. The trend is that more and more oil and gas companies prefer to use highly automated and cost efficient equipment, including our customers. It not only saves costs, but also improves safety. We think we can help our customers' needs with our products and will continue to seek additional opportunities to expand our role on their behalf. We believe that our efforts will be reflected in our financial performance in the coming years."

BEIJING, December 1, 2014 /PRNewswire/ -- Recon Technology, Ltd. (Nasdaq: RCON), a leading independent oilfield services provider operating primarily in China, reported today it has developed and expects to shortly commercialize in China its own fracking system. It is an improved utility for oil and gas fracking activities which stimulates oil and gas production from underground rock formations.

Recon believes its new Frac BHD system is a potential substitute for the expensive foreign systems widely used in China at present. It is comprised of a sleeve, float shoes, setting balls, hanger, hydraulic anchor, tie-back seal assembly and an integrated open hole packer which is used to isolate sections of horizontal wells when collecting oil and gas. This new system provides a solution for multi-stage stimulation in the open-hole horizontal well fracturing process which maximizes reservoir productivity and saves well completion time.

"Our new fracking system," stated Mr. Yin Shenping, CEO of Recon, "reflects our years of onsite experience, and incorporates innovations such as check valves to facilitate tool string installation and avoid midway setting accidents. We believe it will match the performance and reliability of the imported systems currently in use and can be competitively priced."

Scheduled for market entrance in March, 2015, Mr. Yin said he believed the product would generate $1.5 to $2 million of revenue in calendar 2015.

"Fracking in China has been held back largely due to its extremely high cost," Mr. Yin added, "and our new open hole packer is another step toward addressing this problem."

He continued, "It is also another example of how Recon is enhancing production and reducing exploration costs across a wide spectrum of oil and gas production activities. With our proven technical and engineering skills we believe Recon will maintain leadership in the industry, as well as participate in the growth we see ahead in fracking."

BEIJING, November 20, 2014 /PRNewswire/ -- Recon Technology, Ltd. (Nasdaq: RCON), a leading independent oilfield services provider operating primarily in China, today said it is providing services on oilfield service contracts valued at RMB6.4 million, or over $1 million, to provide automation solutions for Chinese oil companies' domestic and overseas projects.

The first contract, signed with Tangshan Jidong Petroleum Mechanic Co. Ltd. in September 2014, calls for Recon to examine and repair Tangshan Jidong's oilfield automation systems located at a wellsite in Caofeidian, Tangshan City, Hebei province of China. This will include replacing defective hardware, performing software data backup and program optimization, and ensuring that the internal alarm system operates efficiently. Recon will receive a total of approximately RMB1.3 million for these services.

The second contract with Tangshan Jidong entered in March and August of 2014 involves Recon providing various oil and gas surface gathering and transportation systems at CNPC's Jidong Oilfield at the same wellsite in Tangshan City. This contract is worth approximately RMB3.6 million to Recon.

Recon also is serving a series of contracts with China National Petroleum Corporation's Sichuan Petroleum Administration Bureau, which were entered into earlier this year. These agreements, worth nearly RMB1 million, call for Recon to provide Sichuan Petroleum with automation systems hardware and various maintenance services for that company's pipeline systems at its South Yolotan Gas Field Project in Turkmenistan.

Recon also had ancillary contracts valued at RMB 0.6 million with Sinopec Southwest Company to continue maintain service for prior projects located in Sichuan Province.

Management believes a substantial portion of the revenue from the above contracts will be recognized in the quarter ended December 31, 2014.

Recon chairman and CEO Mr. Shenping Yin said the these contracts represented evidence that our company's business for the quarter ending December 31, 2014 will be better than the quarter ending September 30, 2014.

"These agreements, with some of the largest oil and gas entities in China, once again demonstrate that Recon is regarded as possessing highly advanced technological expertise in improving the efficiency, safety and profitability of oilfield production.

Recon's automation systems, said the CEO, provide oil and gas production companies with many key benefits, including reducing the number of workers on-site, increasing workplace safety, generating production reports automatically and reducing or eliminating human error in the preparation of these reports.

These benefits, he said, can increase an oilfield producer's productivity and can even save up to 50% of their onsite labor costs.

"We are one of the few China oilfield services companies which can consistently provide our customers with such a significant reduction on their production costs," added Mr. Yin. "This ability, we believe, will help ensure that Recon will continue to grow its top and bottom lines going forward."

First Quarter 2015 Financial Results

• Revenues declined 62.6% to $699,450 from $1,870,951* in the first fiscal quarter last year for the reasons noted above. Nevertheless, we believe customer interest in Recon products and technology remained strong.
• Diluted EPS (U.S. GAAP) was a loss of $(0.14) per share in the first quarter of FY 2015, compared with a net profit of $0.002 per share in the first quarter of FY2014.

Mr. Sheping Yin, Chairman and CEO of Recon stated, "We fully expect that projects originally scheduled to be completed in the quarter will be completed in subsequent periods during the fiscal year. Coupled with the continuing high degree of interest we are seeing in our products and technology we are anticipating a significant recovery and increase in revenues as projects are expected to be completed during this fiscal year that we believe will keep us on track with our growth plans."

Outlook

Mr. Yin commented further, "Despite reduced drilling and lower oil prices -- as well as the continuing reforms taking place in China's oil industry -- we see continuing opportunity to expand our share of our customers' budgets with products and services that improve their productivity, safety and reduce their costs. Currently they are looking to us primarily for hardware -- in particular our oilfield furnaces -- as well as our automation products and services. We believe that with current conditions in the industry, the budgets of our customers will be shifting from exploration to increased production and development expenditures. We think we can meet their needs with our products and will continue to seek additional opportunities to expand our role on their behalf."

BEIJING, September 29, 2014 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today reported that in its fiscal year ended June 30, 2014, the Company was able to record the following results:

• Revenues grew 22% to $15,181,815 from $12,442,444* in FY 2013 as sales of oilfield hardware products to non-related parties more than doubled
• Diluted EPS (U.S. GAAP) rose 1,400% to $0.03 from EPS of $0.002 in FY 2013

Continuing Strong Outlook

Commenting on results, Mr. Shenping Yin, Chairman and CEO of Recon stated, "FY 2014 delivered a number of favorable highlights on both the top and bottom line despite reduced drilling activity and fallout from burgeoning reforms of China's oil industry. Our strong hardware sales, reflecting growing acceptance by customers of our deep understanding of their needs and the excellent technology and know-how we can provide to improve their production efficiency, safety and profits, was certainly a key highlight as was the swing into the black of results from operations. While we didn't generate significant revenues from our fracturing services this past year, we are optimistic we will see these grow in the future based on our ongoing fracturing projects, which are located at not only Zhongyuan Oilfield, but also Northeast Oilfield and Sichuan Province."

Promising Year Again For Furnaces and Burners

"As new wells are developed," Mr. Yin continued, "we believe we will see continued strong growth this year in sales of our burners and furnaces. Another promising growth area is in down-hole tools, and we now have good experience with this technology and have seen strong opportunities. We also see a continuing focus on developing new sources of energy in China. Natural gas obtained through fracturing will certainly be part of this trend and as I've noted, we anticipate a pick up in our activity in the fracturing business in FY 2014."

"Not least of all," Mr. Yin added, "we are cognizant of the need to further improve our profits and believe that further integration into our offerings of our higher margin services will be one key to accomplishing this, as well as growing our business to include some down-hole services to add to the up-ground business we have concentrated on to date."

Double Our Revenues Over Next 2 to 3 Years

"Looking ahead," Mr. Yin said, "we believe that an achievable goal for Recon is annual average revenue growth of a minimum of 20%. We further believe that if we couple this with appropriate acquisitions, we can aim to double our revenues over the next two to three fiscal years."

Mr. Yin concluded, "While pursuing these goals, we will keep in mind the best interests of our shareholders, who we know would also like to see a growing bottom line as we grow our revenues, and also don't want us to stray from our areas of expertise. We think we have a very exciting future ahead and look forward to continuing to inform shareholders of our progress."

BEIJING, September 11, 2014 /PRNewswire/ -- Recon Technology (NASDAQ: RCON), a leading independent oilfield services provider operating primarily in China, announced today it anticipates reporting full year revenue for its fiscal year ended June 30, 2014 will be approximately RMB 93 million ($15 million), up more than 20% compared with revenue in fiscal 2013, as sales of hardware products to its oilfield company customers increased more than 100% year-over-year.

"As our company pursues becoming a more fully integrated customized supplier to its oil and gas customers -- with the aim of reducing their costs and improving their production -- sales of furnace and automation products were particularly strong," stated Mr. Shenping Yin, Chairman and CEO of the Company, "and helped offset the full year reduction in revenues from fracturing services."

Bottom Line Gains

Mr. Yin added, "Coupled with the strong sales gain, we expect to report a net operating profit compared with the loss from operations we incurred in fiscal 2013, as well as healthy percentage increases in net income and adjusted net income attributable to Recon Technologies Ltd. that were higher than the percentage gain in sales."

The Company expects to file its annual report for fiscal year 2014 on or around September 29, 2014.

The current forecast has been prepared based on information available at the time of the issuance of this release. Actual results may differ from this forecast due to a variety of factors. See "Cautionary Statement" below for further details.

Third Quarter 2014 Financial Results:

• Total revenue for the three months ended March 31, 2014 increased 143% to RMB 18.23 million ($2.96 million).
• The non-GAAP EPS for the three months ended March 31, 2014 was a loss of RMB 0.03 per share, as compared to non-GAAP EPS for the same period of FY 2013 of a loss of RMB 0.2 per share.

"Year to date in FY2014, we are very pleased to see our operating efficiency has continued to improve, which is reflected in our overall nine month financial data." said Mr. Yin Shenping, CEO of Recon. "The third quarter is the off-season of our company, and we also bore more noncash expenses. Thus, while our third quarter financial results are lower than our second quarter, they are improved from third quarter 2013, with our increasing on-site maintenance skills, we believe that our footprint will continue to grow in the heating furnace and the automation business, and our business will continue to increase."

Mr. Yin continued: "Since our IPO in 2009, we have successfully expanded our market penetration, such as in Jilin oilfield. In April 2014, Recon Technology attended Sinopec seminars on an upcoming shale gas project. This shale gas project will mark the first large-scale commercial shale gas development in China. This conference, which featured a number of likely bidders in the South Fuling shale gas project, mainly focused on heating separators, horizontal fracturing technology and its technical application issues. Recon's Chief Technology Officer, Mr. Guangqiang Chen, introduced Recon's heating furnaces, separators and horizontal fracturing technology at the conference. As we continue to capitalize on our position in China's fragmented oil services industry and broaden our integrated products and service offerings through R&D and collaboration with Chinese and international companies involved in the oilfield services industry, we believe Recon is well-positioned to continue to grow."

BEIJING, April 30, 2014 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), a leading oilfield services provider that operates primarily in the People's Republic of China, today announced that its BHD Petroleum Technology Ltd. division attended a technical exchange conference hosted by Sinopec Jianghan Oilfield in anticipation of an upcoming shale gas project. The project is located near Chongqing, in the South Fuling area of Sichuan Province, and the conference featured seven providers of high tech solutions for China's oil and gas industries. The first part of the shale gas project conference was held on April 2^nd and was focused on heating furnaces. Recon was one of a very limited number of companies Sinopec invited to attend. The second part of the conference was held on April 20^th and concerned horizontal fracturing technology.

Sinopec discovered and has begun to commercialize the first self-contained shale gas field in in Jiao Shi County of the South Fuling area. This area marks the first large-scale commercial shale gas development in China. Sinopec aims for a capacity of 5 billion cubic meters of shale gas field in 2015 and plans to reach a capacity of 10 billion cubic meters of shale gas field in 2017 in the Fuling project. This level of shale gas capacity equates to 10 million tons of oilfield capacity, the equivalent of a large oil field. The 10 billion cubic meters of shale gas field would satisfy the yearly gas needs of approximately 40 million people. During the first stage of construction, the project is expected to require 61 wellhead heating furnaces (400KW), 30 DN800 metering separators and 19 DN1200 production separators.

This conference, which featured a number of likely bidders in the South Fuling project, mainly focused on heating separators, horizontal fracturing technology and its application technical issues. Recon's Chief Technology Officer, Mr. Guangqiang Chen, introduced Recon's heating furnaces, separators and horizontal fracturing technology at the conference.

"We have developed our own series of heating furnace and separator products," said Mr. Chen, the Chief Technology Officer and director of Recon Technology Ltd. "In addition, through years of cooperation with Baker Hughes, a top-tier oilfield service company, we have accumulated rich field work experience about utilization of fracturing in China. The combination of technology and the geological characteristics is the core factor of shale gas exploration in China. We are looking forward to undertake more projects in the future and we are confident in our mature, advanced technologies and products."

BEIJING, April 7, 2014 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), a leading oilfield services provider that operates primarily in the People's Republic of China, today said it has updated its company website to include new corporate and industry information. Recon's main site, http://www.recon.cn/en, which also includes a new investor relations section, features expanded information and news on the company, its technologies, and the oil and gas industry in China.

"We are very proud to introduce our new website," said chief executive officer, Mr. Shenping Yin. "Recon is making substantial progress marketing some of our industry's most innovative technologies and we are excited to optimize our communication of this progress, particularly to new investors in the U.S., Canada, and Australia as well as other regions of the world where there is keen interest in oil and gas industry equities."

BEIJING, CHINA--(Marketwired - Mar 11, 2014) - Recon Technology, Ltd. (NASDAQ: RCON), a leading oilfield services provider that operates primarily in the People's Republic of China, today announced that its BHD Petroleum Technology Ltd. division has received a new oil field access Certificate from China's state-owned oil and gas exploration company, Sinopec, authorizing BHD to provide horizontal fracturing equipment and services at Sinopec's Northeast oilfield branch in China's Jilin Province.

BHD has thus far provided fracturing equipment utilized at one of Sinopec Northeast oilfield's wells. That well produced revenue of approximately RMB 1.2 million ($196,721) for BHD. According to Sinopec's production plan, an additional 21 wells will require fracturing services in 2014, with a budget of approximately RMB 2 million ($326, 880) per well.

In its work for Sinopec, BHD will continue to utilize the fracturing tools of its long-term technology partner, Baker Hughes. The detailed operating plan and onsite service for Sinopec will be designed and implemented by BHD's professional service team.

"We are very pleased to receive this Certificate from Sinopec," said Mr. Chen Guangqiang, CTO of Recon Technology. "Not only does this provide us with a key source of incremental revenue, it also corroborates, at the highest industry level, the quality of our oilfield fracturing technology and those fracturing technologies we have developed with Baker Hughes. We will continue to work with Baker Hughes to help expand the use of their products in China's oilfield services market.

"We look forward to continuing our important work at Sinopec's oilfields this year, and hopefully, to announcing additional technology contracts in the near future."

BEIJING, March 3, 2014 /PRNewswire --Recon Technology, Ltd. (RCON), a leading oilfield services provider that operates primarily in the People's Republic of China, today announced that its Nanjing Recon Technology division, which develops automation software products for oilfield exploitation and production, has received a three-year renewal on its government certification as a High-Tech Enterprise. As a result, this division has been awarded a reduction in income tax from 25% to a preferential EIT (Enterprise Income Tax) rate of 15% for the coming three years, commencing in 2014.

With this award, Nanjing Recon Technology joins Recon's other division, BHD Petroleum Ltd., which also enjoys the preferential EIT rate of 15%, and has two years remaining on its current three-year preferential EIT certificate.

Recon also announced that Nanjing Recon Technology has received two new software copyrights, covering the division's Recon Process Auto software Version 1.0 and Recon RCNAMT software Version 1.0. Recon expects that revenue contributed by these two software products could be 5 million RMB (USD 820,000) within the first year of commercialization.

Nanjing Recon now owns eight patents, fourteen software copyrights, six registered-for-sale software products and three trademarks. Recon Technology's other division, BHD, owns twenty-four patents, four software copyrights and two trademarks.

As a government-authorized software developer, Nanjing Recon is eligible to receive a 14% VAT tax-refund of each sale of software products.

"We are very pleased to receive these new software copyrights and this preferential tax rate for Nanjing Recon Technology," said Mr. Yin Shenping, CEO of Recon Technology. "We expect that these developments will both strengthen our intellectual property position in the automated oilfield systems sector, and also have a significant effect on our bottom line for 2014 and beyond."

Second Quarter 2014 Financial Results

• Total revenues for the second quarter of FY2014 were approximately RMB46.3 million ($7.6 million), an increase of 0.6% from the same period of FY2013.
• Non GAAP dilluted EPS is $0.36 for the second quarter of FY2014, compared to Non GAAP dilluted EPS of $0.28 in the same period last year.

"We're very pleased to continue improving our net profit in the quarter, as it was up almost 100% for the first half of fiscal year 2014," said Mr. Yin, CEO of Recon Technology. "We have been expanding our client base actively since last year, and our newly developed clients, such as Jilin Petroleum Group, North China Bureau of CNPC and Southwest Oil and Gas Branch of Sinopec, contributed more than half to our furnaces and automation business increase. As we strengthen our design capacity and service offerings, we believe our leading position in the furnace and oilfield automation segment will be consolidated.

"Our onsite service business, mainly focused on the fracturing segment, is well underway. We have achieved new contracts. Also, our cooperation with Baker Hughes has expanded to additional down well services, such as milling. Through these collaborative experimental projects with well-known international companies, our working performance and solutions can continue to improve, which will position us for new business opportunities from our oilfield clients.

"As to the coming year, we are still positive and confident," Mr. Yin continued. "According to the 2014 Energy Task Guidance of China's National Energy Bureau, the government's goals include increasing oil and gas production, improving proven ratios and extraction rates, encouraging the development of unconventional oil and gas resources and accelerating construction of oil and gas infrastructures. These points are quite favorable for our industry and our business. Our business operates mainly in China's northeast, northwest and Bohai Bay districts, where China's major producing oil and gas fields are located. Recon's product lines mainly focus on helping our clients improve extraction rates and reduce production costs. Over the years, our products and services have been well-received by our clients, and we will continue to devote our efforts as professional technology and service integrators."

BEIJING, Nov. 25, 2013 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), an oilfield service company provider (the "Company") operating primarily in the People's Republic of China, announced today that it entered into a securities purchase agreement (the "Securities Purchase Agreement") with certain institutional investors for the sale of 546,500 ordinary shares in a registered direct offering at the price of $4.81 per ordinary share. In addition, warrants to purchase 163,950 ordinary shares in the aggregate will be issued to the investors.

The warrants will be exercisable immediately as of the date of issuance at an exercise price of $6.01 per ordinary shares and expire three years from the date of issuance. The exercise price of the warrants is subject to customary adjustment in the case of future issuances or deemed issuances of ordinary shares, stock splits, stock dividends, combinations of shares and similar recapitalization transactions.

Gross proceeds of the offering, before deducting placement agent fees and other estimated offering expenses payable by the Company, are expected to be approximately $2.6 million. These securities are being offered through a prospectus supplement pursuant to the Company's effective shelf registration statement and base prospectus

The net proceeds from this offering will be used for working capital and other general corporate purposes, including working capital and other general corporate purposes, including acquisition of complementary assets or businesses. In the Securities Purchase Agreement we have entered into with the purchasers in this offering, we have agreed not to use the proceeds of this offering to satisfy any existing debt (other than ordinary course trade payables), to redeem any of our outstanding securities (other than the warrants issued pursuant to the securities purchase agreement), or to settle any outstanding litigation.

The completion of the offering will occur on or before November 29, 2013. FT Global Capital, Inc. served as the placement agent for the offering.

A shelf registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission. A prospectus supplement related to the offering will be filed with the Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of an offer to buy, and these securities cannot be sold in any state in which this offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement

First Quarter 2014 Financial Results

• Total revenues increased by 27.2%, or approximately RMB2.4 million ($0.4 million), from RMB9.1 million for the three months ended September 30, 2012 to RMB11.5 million ($1.9 million) for the same period of 2013.
• Diluted earnings per share attributable to Recon for Q1FY 2014 was RMB 0.01 ($0.002), compared to diluted losses per share attributable to Recon of RMB 0.59 in Q1FY 2013.

Mr. Yin Shenping, CEO of Recon, noted, "As most of our major projects are still underway, our first quarter is usually a slower season. By contrast, this year business continued to flourish in the first quarter, especially our automation business and furnace business. Our focus on researching and developing our own products and growing our brand name have paid off. We expect this focus on self developed systems and other specialized oilfield products will continue to benefit our company in the future".

Mr. Yin continued, "As our traditional business improved, our new business, fracturing and shale gas automation systems sales also expanded. As our product lines continue to improve and become more integrated, our ability to provide a robust package of solutions to our customers will strengthen. We believe this focus on providing integrated services will provide us a competitive advantage and maximize our profit capability".

BEIJING, Nov. 20, 2013 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), an oilfield service company provider ("Recon" or the "Company") operating primarily in the People's Republic of China, announced today it recently won several new automation system contracts with CNPC Jidong Oilfield and Sinopec Southwest Branch Company. The total value of these new contracts will be approximately RMB7.3 million or USD1.2 million.

"The 'digital oilfield' has been one of the most important development of China's oilfield industry. Our leading-edge automation and control technologies help our clients operate more efficiently and effectively, and we are pleased to win these bids and opportunities to help our long-term clients, CNPC and Sinopec," said Mr. Yin Shenping, CEO of Recon Technology. "Utilization of automation technology system in China's Petroleum industry is currently in its early stage. As Chinese oil companies invest more in efficiency. We believe our rich experience, outstanding technology, professional project management staff and construction personnel will help us to stay ahead in the Chinese oilfield automation and service industry."

First Quarter 2014 Financial Results

• Total revenues increased by RMB 2.4 million or 27.2% in Q1FY2014 to RMB 11.51 million ($1.9 million)
• Diluted earnings per share attributable to Recon for Q1FY 2014 was RMB 0.01 ($0.002), compared todiluted losses per share attributable to Recon of RMB 0.59 in Q1FY 2013.

Mr. Yin Shenping, CEO of Recon, noted, "As most of our major projects are still underway, our first quarter is usually a slower season. By contrast, this year business continued to flourish in the first quarter, especially our automation business and furnace business. Our focus on researching and developing our own products and growing our brand name have paid off. We expect this focus on self developed systems and other specialized oilfield products will continue to benefit our company in the future".

Mr. Yin continued, "As our traditional business improved, our new business, fracturing and shale gas automation systems sales also expanded. As our product lines continue to improve and become more integrated, our ability to provide a robust package of solutions to our customers will strengthen. We believe this focus on providing integrated services will provide us a competitive advantage and maximize our profit capability".

BEIJING, Nov. 5, 2013 /PRNewswire-FirstCall/ -- Recon Technology, Ltd. (NASDAQ: RCON), an oilfield service company provider ("Recon" or the "Company") operating primarily in the People's Republic of China, announced today it recently received several sales orders for specialized oilfield furnaces from China National Petroleum Company's ("CNPC") Jiling Oilfield Company and Huabei Oilfield Company. The total value of these contracts will be approximately RMB11 million or USD1.9 million.

According to sales contracts, the Company will provide 9 vacuum heating furnaces to its newly developed customer, CNPC's Jiling Oilfield Company, and 6 phase-change heating furnaces to its long-term customer, CNPC's Huabei Oilfield Company. The Company will be in charge of the project, from design through manufacture of the furnaces, and expects to complete the orders before the end of calendar 2013.  

Furnaces are mainly used to facilitate petroleum transportation by raising oil temperature to decrease viscosity or flow resistance and maintain liquidity before the oil is transported from the oilfield. As China's oilfields have entered the water-flooding stage of development, crude oil temperatures drop, making furnaces even more important to efficient transportation. Key technologies and development of oilfield furnaces are of great significance to oilfield production safety, energy saving as well as production efficiency.

"Recon has sold more than 400 furnaces of various types since year 2009. We have made many technology breakthroughs, obtained 11 oilfield furnace-related patents and been a leader of this segmented industry," said Mr. Chen Guangqiang, CTO of the Company. "We are very excited about establishing this new business relationship with Jiling Oilfield. We will continue to focus on expanding our list of oilfield company clients in China and maintaining our leadership position. As more oil wells are developed, we believe our furnace business will continue to grow."

Fiscal Year 2013 Highlights

• Total revenues increased by RMB 1.04 million or 1.4% in FY2013 to RMB 76.59 million ($12.38 million), due to continued development of our horizontal fracturing business.
• Diluted Earning per Share attributable to Recon for FY 2013 was RMB 0.01 ($0.002), compared to diluted losses per share of RMB 0.97 in FY 2012.

Mr. Yin Shenping, CEO of Recon, noted, "Our goal this year has been to grow into an integrator of oil field and oil well services. We have built on our particular strength in fracturing services in 2013 and plan to leverage our relationships with customers who use our fractured products to build into a full-service provider for our industry. Moving forward, we plan to develop our service offerings in the different stages of the process, from exploration to production of wells."

Mr. Yin continued, "We will also expand our business into the shale gas and mine gas industries based on our final strategy, which is to be leading integrator of oilfield service and products with advanced technology. We recognize the potential market share available inChina's domestic gas industry. We believe that our products are applicable not just to this industry, but also to complementary industries in China and abroad. We expect that our investment of time and effort in research and development of automation products will benefit us not only in our current industry but also in these complementary industries moving forward."

"In addition, we recently acquired a 32.33% interest of a US based oil and gas company in June 2013. We believe this investment will serve as a solid basis from which we will continue to strengthen a general mutual trust and understanding of these various global markets which will result in providing our company with an opportunity to explore exporting our services and products to the US and other markets."

8/6/2013 Form S-3

We may offer and sell, from time to time in one or more offerings, any combination of debt securities, ordinary shares, warrants, rights, share purchase contracts, share purchase units or units having an aggregate initial offering price not exceeding $35,000,000 (or its equivalent in foreign or composite currencies) on terms to be determined at the time of offering.

We will provide the specific terms of these securities in supplements to this prospectus. The prospectus supplement may also add, update or change information in this prospectus. Before you invest, we urge you to read carefully this prospectus and any prospectus supplement, as well as the documents incorporated by reference or deemed to be incorporated by reference into this prospectus.

We may sell these securities directly, through agents, dealers or underwriters as designated from time to time, or through a combination of these methods. See “Plan of Distribution” in this prospectus. We reserve the sole right to accept, and together with our agents, dealers and underwriters reserve the right to reject, in whole or in part any proposed purchase of securities to be made directly or through agents, underwriters or dealers. If our agents or any dealers or underwriters are involved in the sale of the securities, the applicable prospectus supplement will set forth the names and the nature of our arrangements with them, including any applicable commissions or discounts.

The mailing address of our principal executive offices is Room 1902, Building C, King Long International Mansion, No. 9 Fulin Road, Beijing, 100107, People’s Republic of China, and our telephone number is +86 (10) 8494-5799. Our ordinary shares are quoted on the Nasdaq Capital Market under the symbol “RCON.” On August 1, 2013, the closing price per share of our ordinary shares was $1.84. Each prospectus supplement will indicate if the securities offered thereby will be listed on the Nasdaq Capital Market or any other securities exchange. Other than our ordinary shares, there is no market for the securities that we may offer. The aggregate market value of our outstanding ordinary shares held by non-affiliates is $3,456,638.72, based on 3,951,811 shares of outstanding ordinary shares, of which 1,878,608 shares are held by non-affiliates, and a per share price of $1.84 based on the closing sale price of our ordinary shares as reported by the Nasdaq Capital Market on August 1, 2013. We have not offered any securities pursuant to General Instruction I.B.6 of Form S-3 during the prior 12 calendar month period that ends on and includes the date of this prospectus. No offer is being made or will be made to the public in the Cayman Islands to subscribe for any securities to be issued hereunder.

MINNEAPOLIS, July 9, 2013 (GLOBE NEWSWIRE) -- Avalon Oil and Gas, Inc. (Avalon) (OTCBB:AOGN) today announced that Recon Technology, Ltd, (Nasdaq:RCON) ("Recon") a leading Chinese non-state-owned oilfield services provider, has purchased 2,800,000 shares of Avalon's common stock. After this investment, Recon will own 32.22% of Avalon's outstanding shares.

Recon Technology has provided oilfield services and products to automate and enhance the extraction of petroleum in China, including well service, production and field service for the past ten (10) years. Recon has developed specialized proprietary software and hardware to manage the oil extraction process in real-time, which significantly reduces extraction costs. Their technology increases the efficiency and profitability of oil and gas companies by enabling them to monitor, manage and control petroleum extraction, increases the amount of petroleum extracted and reduces impurities in extracted petroleum. China's oil and gas industry is dominated by three state-owned holding companies.  CNPC and Sinopec are two (2) of Recon's primary customers. Recon has provided services to Sinopec since 1998 and CNPC since 2000, and have conducted automation projects for approximately 80% of both CNPC and Sinopec's oil and gas fields, covering three of China's four highest producing oil fields in Daqing, Shengli and Xinjiang. Recon was the first Chinese non-state owned oil and gas service company to be listed on NASDAQ.

"We are very excited to have Recon as a major shareholder and strategic investor," said Kent Rodriguez, Avalon's CEO. He added, "The funds from their investment will be used to complete the workover of 7 wells on the Moody and West Lease, Duval County, Texas and to acquire additional oil and gas producing properties."

Mr. Yin Shenping, CEO of Recon, said. "We are pleased to invest in Avalon as we agree with the company's development strategies and operations and see the opportunity for significant growth." He added, "We have great confidence in Avalon's ability to expand their existing portfolio of oil and gas producing properties, and we like their business model of investing in underdeveloped properties with stable cash flows and significant upside potential." Mr. Yin continued, "Recon is eager to work with US oil and oilfield service companies to develop markets beyond China. This is our first investment in a US company, and it's a significant milestone in our international development."

BEIJING, July 2, 2013 /PRNewswire-FirstCall/ -- Recon Technology, Ltd. (Nasdaq: RCON) ("Recon" or the "Company"), a leading Chinese non-state-owned oilfield services provider, today announced the purchase of 2,800,000 shares of Avalon Oil and Gas, Inc. ("Avalon") (OTCBB: AOGN). After this investment, Recon owns 32.22% of Avalon's outstanding shares.

Avalon is an independent US domestic oil and natural gas producer listed on the OTCBB under the ticker symbol AOGN. Avalon is building a portfolio of oil and gas producing properties to generate asset growth. The Company uses efficient reservoir maintenance and innovative technology to generate stable cash flows by reworking previously producing wells. Its acquisition strategy is to seek low risk, proven oil and gas reserves with short payback periods and the potential for expanded production.   

"The funds from this investment will be used to complete the workover of wells on the Moody and West Lease, Duval County, Texas and to acquire additional oil and gas producing properties," said Mr. Yin Shenping, CEO of Recon. "We are pleased to invest in Avalon as we agree with the company's development strategies and operations and see the opportunity for significant growth. We have great confidence in Avalon's ability to expand their portfolio of oil and gas producing properties."

"Recon is eager to work with US oil and oilfield service companies to develop markets beyond China," Mr. Yin continued, "This is our first investment in a US company, and it's a significant milestone in our international development."

BEIJING, July 2, 2013 /PRNewswire-FirstCall/ -- Recon Technology, Ltd. (Nasdaq: RCON) ("Recon" or the "Company"), a leading Chinese non-state-owned oilfield services provider, today announced the purchase of 2,800,000 shares of Avalon Oil and Gas, Inc. ("Avalon") (OTCBB: AOGN). After this investment, Recon owns 32.22% of Avalon's outstanding shares.

Avalon is an independent US domestic oil and natural gas producer listed on the OTCBB under the ticker symbol AOGN. Avalon is building a portfolio of oil and gas producing properties to generate asset growth. The Company uses efficient reservoir maintenance and innovative technology to generate stable cash flows by reworking previously producing wells. Its acquisition strategy is to seek low risk, proven oil and gas reserves with short payback periods and the potential for expanded production.

"The funds from this investment will be used to complete the workover of wells on the Moody and West Lease, Duval County, Texas and to acquire additional oil and gas producing properties," said Mr. Yin Shenping, CEO of Recon. "We are pleased to invest in Avalon as we agree with the company's development strategies and operations and see the opportunity for significant growth. We have great confidence in Avalon's ability to expand their portfolio of oil and gas producing properties."

"Recon is eager to work with US oil and oilfield service companies to develop markets beyond China," Mr. Yin continued, "This is our first investment in a US company, and it's a significant milestone in our international development."

Third Quarter 2013 Financial Results;

• Total revenue for the third quarter of FY2013 was RMB7.5 million ($1.2 million), a decrease of 42.4% from the same period of FY2012.
• Gross margin increased to 55.4% for the third quarter of FY2013 from 47.9% for the same period of FY2012.
• Net loss attributable to ordinary shareholders for the third quarter of FY2013 was RMB1.2 million ($0.2 million), or RMB0.32($0.05) per diluted share. Net income attributable to ordinary shareholders for the same period of FY2012 was RMB0.1 million orRMB0.03 per diluted share.

"Year to date in FY2013, our operating efficiency has continued to improve, which is reflected in our overall financial performance," said Mr. Yin Shenping, CEO of Recon. "The temporary revenue decline in the third quarter was mainly due to timing issues related to current project completion status, rather than any changes in business fundamentals. As we complete outstanding projects, and assuming we obtain new contracts for our fracturing services and furnace business, we anticipate the coming quarters will reflect what we believe are positive results for our company."

Mr. Yin continued, "Since our IPO in 2009, we have successfully expanded our market penetration, including in the Sichuan Oilfield, Zhongyuan Oilfield and Jilin Oilfield. Our fracturing services were recently qualified at Sinopec, which gives us the opportunity to continue to expand this new service line beyond Sinopec's affiliate, Zhongyuan Oilfield. As we continue to capitalize on our position inChina's fragmented oil services industry and broaden our integrated products and service offerings through R&D and collaboration with Chinese and international companies involved in the oilfield services industry, we believe Recon is well-positioned to continue to grow."

Fiscal 2012 Results

• Total revenues for the year ended June 30, 2012 were RMB75.54 million ($11.95 million), an increase of RMB11.85 million or 18.61%.
• Loss from operations was RMB3.54 million ($560 thousand) for FY2012, an improvement of RMB16.03 million, or 81.93%, from a loss of RM19.57 million for 2011.
• Loss per share of $0.15 vs loss of $1.13 in prior year.

"I'm pleased that we closed the year with improved operating results," said Mr. Yin Shenping, CEO of Recon, "The high-end segment of China's oilfield service industry has opened more to private companies, and we believe there are opportunities for Chinese oilfield services companies, especially experienced companies that can provide all-in-one solutions for customers. As a small company, Recon now is more focused on oilfield automation and production stimulation-related services. But we also seek to extend our business on the industrial chain by providing more integrated services and incremental measures and growing our business from a predominantly up-ground business to include some down-hole services as well. We believe our experience and reputation will help us remain competitive in this arena."

BEIJING, May 23, 2012 /PRNewswire-Asia-FirstCall/ -- Recon Technology, Ltd (Nasdaq: RCON), a Chinese non-state-owned oil and gas automation services provider (the "Company"), announced today that one of its variable interest entities, Nanjing Recon Technology Co., Ltd. ("Nanjing Recon"), signed a major contract with the China National Petroleum Corporation's ("CNPC") Sichuan Petroleum Administration Bureau to provide the latter with the Emerson PCS & SIS Systems in its South Yolotan Gas Field Project (the "Project") located in Turkmenistan. The total contract value exceeds RMB19 million (USD3.02 million), which was by far the biggest contract for the Project's PCS & SIS Systems.

Under the contract, Nanjing Recon will not only provide all hardware and software related to the PCS & SIS Systems, but is also responsible for the procurement, production and installation of the systems and the after-sale services. The Project is significant in scale, advanced in technology and sophisticated in the overall design. As the systems involve all steps of the natural gas extraction process, they require intricate engineering techniques. Nanjing Recon is closely involved in the overall design of the automation control and undertakes the most critical step in designing the Emerson PCS & SIS Systems. The systems are expected to be delivered before May 30, 2012 and the entire project is expected to be completed by the end of year 2012.

"Located in Turkmenistan, the South Yolotan Gas Field is the largest natural gas field in the world with proved reserves of 7 trillion cubic meters," Mr. Yin Shenping, Recon's CEO, said. "CNPC signed the joint development agreement with the gas field in 2011 and is at the stage of researching and developing key techniques. We are very fortunate to have this opportunity to work with CNPC outside China at this critical stage. Our cooperation marks the first time Recon undertakes a foreign project and is an excellent first step for Recon to grow into an international company. This is also the first time Recon introduces the Emerson systems to the Central Asian market. We believe this project will lay a solid foundation for our automation business and will become a launch pad for additional large-scale overseas projects. As part of our overseas expansion strategy, we will take this opportunity to gain experience and win additional projects."

"The Emerson PCS & SIS Systems we supply focus mainly on automation solutions for the gathering and transmission of natural gas," Mr. Yin continued. "We won this contract thanks to our continued efforts in this area. First of all, Recon has cooperated with CNPC for more than 10 years. We have accumulated enough experience in initial designing and on-site implementation. We believe this project attests to our capabilities and experience in project management. Secondly, we have established a long-term strategic relationship with Emerson, which assures best products to our clients. Moreover, Recon has been consistently investing in the training of its service staff. Through its experienced team, Recon is able to provide the most cost-effective solutions and timely services of the highest quality. We believe we are capable of successfully implementing large-scale projects and further burnishing our reputation among our clients. We look forward to servicing our clients with a broader offering of state-of-the-art products and services."

Third Quarter 2012 Results

• Total revenues in the three months ended March 31, 2012 increased significantly to RMB13.02 million ($2.06 million) from RMB8.76 million in the three months ended March 31, 2011. New clients contributed to most of the increase. Total revenues in the nine months ended March 31, 2012 decreased to RMB48.81 million ($7.72 million) from RMB62.74 million in the nine months ended March 31, 2011, mainly due to the deconsolidation of one variable interest entity ("VIE") in 2010.
• Gross profit for the three months ended March 31, 2012 increased 332.69% to RMB6.23 million ($0.99 million) from RMB1.44 million in the same period of 2011. This increase was mainly due to higher margin of our new products based on horizontal well fracturing technology.
• Net income attributable to ordinary shareholders for the third quarter of fiscal year 2012 was RMB119,000 ($19,000), compared to a net loss attributable to ordinary shareholders of RMB2.01 million in the same quarter last year. Net loss attributable to ordinary shareholders improved from RMB21.85 million for the nine months ended March 31, 2011 to RMB1.89 million ($0.3 million) for the nine months ended March 31, 2012.
• Adjusted EBITDA was RMB989,000 ($156,000) for the three months ended March 31, 2012, up 142.78% compared to a loss of RMB2.31 million in the same quarter in 2011. Adjusted EBITDA was RMB320,000 ($51,000) for the nine months ended March 31, 2012, an increase of 103.32% compared to a loss of RMB9.65 million in the same period last year.
• Diluted net income per share was RMB0.03 ($0.00) for the three months ended March 31, 2012 and diluted net loss per share was RMB0.48 ($0.08) for the nine months ended March 31, 2012, compared to diluted net loss per share of RMB0.51 and RMB5.53 for the three- and nine-month periods ended March 31, 2011.

"We believe that Recon should act as a professional integrator of products and services, rather than simply acting as an equipment supplier," said Mr. Yin Shenping, CEO of Recon, "To achieve this goal, we have dedicated time and resources to optimize our operations and to improve our business model. Recently, we have mainly focused on introducing the most suitable products and technologies from the U.S. and Canada to domestic oilfield companies. We have made tremendous progress in this aspect by cooperating with international industry leaders such as Emerson and Baker Hughes. There are also many smaller foreign companies that possess expertise in one product in certain segmented areas of the oilfield service industry. We are actively seeking opportunities to cooperate with these companies as well."

Mr. Yin continued, "We have also devoted substantial resources to R&D as part of our long term strategy. Through such investment, we have combined our years of experience with advanced technologies to provide the best solutions to our clients. These efforts promote our competitiveness and encourage long-term profitability. We believe our business will remain strong in the coming years."

Second Quarter 2012 Highlights

• Total revenues in the three months ended December 31, 2011 decreased slightly to RMB30.84 million ($4.85 million) from RMB32.18 million in the three months ended December 31, 2010. New business, much of it from existing clients, factored heavily in reducing declines in revenues. Total revenues in the six months ended December 31, 2011 decreased more significantly to RMB35.79 million ($5.62 million) from RMB53.98 million in the six months ended December 31, 2010, due largely to the deconsolidation of one variable interest entity ("VIE") in 2010.
• Net income attributable to ordinary shareholders for the second quarter of fiscal year 2012 was RMB1.40 million ($219 thousand), compared to a net loss attributable to ordinary shareholders of RMB20.68 million in the same quarter last year. Net loss attributable to ordinary shareholders improved from RMB19.83 million for the six month period ended December 31, 2010 to RMB2.01 million ($316 thousand) for the six month period ended December 31, 2011.
• Adjusted EBITDA was RMB2.16 million ($339 thousand) for the three months ended December 31, 2011, up 121.41% compared to RMB(10.08 million) in the same quarter last year. Adjusted EBITDA was RMB(643 thousand) ($(101 thousand)) for the six months ended December 31, 2011, an improvement of 91.35% compared to RMB(7.44 million) in the same period last year.
• Diluted net income (loss) per share was RMB0.35($0.06) and RMB(0.51) ($(0.08)), respectively, for the three and six months ended December 31, 2011, compared to diluted net loss per share of RMB5.23 and RMB5.02 for respective periods ended December 31, 2010.

"Recon has met a number of challenges over the last twelve months," said Mr. Yin Shenping, CEO of Recon, "Jining ENI Energy Technology Co., Ltd. ('ENI') was previously one of our contractually controlled affiliates until December 16, 2010, when it was deconsolidated from our company. As a trading business, ENI acted as an agency to obtain purchase orders and earned through the sale price differentials. Since 2010, some of our large clients handled through ENI, especially SINOPEC, adjusted their procurement policies to increase direct purchases from strategic manufacturers rather than purchase from agencies like ENI. Business for ENI therefore decreased sharply. In addition, several of ENI's key employees resigned. Our management believes that even though ENI's deconsolidation from our company resulted in short-term losses, our company has already begun to recover, as demonstrated by improvements in net income and EBITDA this quarter. As a result, we do not believe the deconsolidation will have a significant impact on our long-term business development."

Mr. Yin continued, "Looking to our future, we continue to believe that our company should keep developing our proprietary products and services. We aim to serve as a professional integrator of products and services, rather than simply acting as equipment suppliers. To achieve this, we also devoted additional resources to our R&D activities, primarily for testing our furnaces and horizontal well fracturing technologies. This year, we will seek to expand our sales of existing core products and promote our recently developed proprietary oil/water separator and horizontal well fracturing technology."

"In light of the challenges we have faced over the last year, we have learned how important improving internal management is, particularly to small companies like ours. To assist us in improving our internal management, we have retained consultants to help us enhance our financial management and we have also strengthened our internal control system for the benefit of all of our shareholders. We will also strengthen our information disclosure and improve the frequency and content of our communications with investors."

On October 17, 2011, Recon Technology, Ltd (the “Company”) received from The Nasdaq OMX Group (“Nasdaq”) a letter (the “Nasdaq Letter”) indicating that, as a result of the Company’s failure to file its annual report on Form 10-K for the year ended June 30, 2011, the Company violated Nasdaq Listing Rule 5250(c)(1) (the “Rule”). The letter further states that the Company has 60 calendar days to submit a plan to regain compliance with the Rule. The plan is due no later than December 16, 2011. If Nasdaq accepts the Company’s plan of compliance, then Nasdaq can grant up to 180 calendar days (March 28, 2012) to the Company to regain compliance. Any subsequent periodic filings that are due prior to March 28, 2012 would need to be filed no later than March 28, 2012.

Risk factors omitted from 2010 10K.

The decrease in our revenues for the three months ended March 31, 2011 compared to the three months ended March 31, 2010 was due to the following operating challenges: 

(1) as described above, some of our large clients, especially Sinopec, adjusted their procurement policies, to increase direct purchases from strategic manufacturers rather than purchase from agency companies. Additionally, our former Chief Marketing Officer, Mr. Li Hongqi, resigned effective January 31, 2011. When Mr. Li resigned, we lost our established relationship with Sinopec and other companies. Without such relationships, it was very difficult for us to compete with the large strategic suppliers adopted by the large oil companies under their new procurement policies, thus decreasing our revenues as an agent for hardware sales; and;

(2) our equipment and service terminals can only be assembled and operated after completion of field infrastructure. Currently, our major on-going projects are all located in Ji dong oilfield and Weston Sichuan gas field, which are both newly developed oil and gas fields, with relatively long construction periods. Since some of our clients have not finished their oilfield construction, which in turn caused delays in our projects, we could not provide equipment to our clients and recognize the corresponding revenue as scheduled, this is also the reason for our increase of inventories for this period.

The changes to our clients’ procurement policies may have long-term adverse effects on our operation and our management believes we need to adjust our business structure to place a greater emphasis on our high efficiency equipment and service business.

Third Quarter Fiscal 2011 Financial Highlights (press release from May 16, 2011)

• Revenues for the third quarter of fiscal year 2011 decreased by 57.74% year-over-year to $1.7 million, down from $4.0 million in the third quarter of fiscal 2010
• Gross margin for the third quarter was 17.9% based on gross profit of $302 thousand, compared with a 44.7% margin based on gross profit of $1.8 million in the same period last year
• Operating expenses for the third quarter were $1.5 million, up 97.7% year-over-year from $741 thousand in the same period last year
• Operating loss for the third quarter was $1.2 million, down 211.18% compared to operating income of $1.0 million in the third quarter of fiscal 2010
• Net loss attributable to Recon for the third quarter decreased 263.21% year-over-year to $1.1 million compared with net income of $689 thousand for the third quarter of fiscal 2010
• Loss per diluted share was $0.28 for the quarter, down 263.21% from diluted EPS of $0.17 achieved in the same period a year ago

Business Outlook:The oilfield engineering and technical service industry is generally divided into five sections: (1) exploration, (2) drilling and completion, (3) testing and logging, (4) production, and (5) oilfield construction. Thus far our businesses have only been involved in production. Our management believes it’s time to expand our core business, move into new markets, and develop new businesses. There are great opportunities both in new markets and our existing markets. We believe that many existing wells and oilfields need to improve or renew their equipment and service to maintain production and our techniques and services will be needed as new oil and gas fields are developed

Fiscal Year 2010 Highlights

• Total revenues increased 54.67% year over year to $17.18 million. Exceeding RCON's guidance between $12.7 million and $13.3million
  
• Non-GAAP EBITDA increased 54.9% year over year to $4.8 million
  
• Net income attributable to common shareholders was $2.9 million, exceeding RCON's guidance between $2.5 million and $2.7 million, or $0.77 diluted net income per share attributable to common shareholders, exceeding RCON's guidance between $0.65 and $0.68 per share.

 "Although environment of global macro social 2010 was not good, our business performed very well, driven mostly by our automation business," said Mr. Yin Shenping, CEO of Recon. "We expect our business to continue to develop rapidly and benefit from our strong R&D capabilities and rich industry experience."

Business Outlook

The oilfield engineering and technical service industry is generally divided into five sections: (1) exploration, (2) drilling and completion, (3) testing and logging, (4) production, and (5) oilfield construction. Thus far RCON's businesses have only been involved in production. Management of Recon believes it's time to expand core business, move into new markets, and develop new businesses. They also believe that many existing wells and oilfields need to improve or renew their equipment and service to maintain production and our techniques and services will be needed as new oil and gas fields are developed. Furthermore, the Several Opinions of the State Council on Encouraging and Guiding the Healthy Development of Private Investment (the "New 36 Guidelines on Non-State-owned Economy") promulgated in 2010 by the State encourages private investors to take part in oil and natural gas construction, and supports private enterprise investors entering into exploration and development of oilfield area. As exploration of oil and gas fields involves a wide range of professional technologies, it is expected that in the future the private investors investing in oil and gas field exploration will seek out general contracting and integrated services. This will bring RCON new opportunities to the integrated service projects.