Recon Technology Ltd Stock Price, News & Analysis

Recon Technology, Ltd (NASDAQ: RCON) has entered a 2-year service agreement with a domestic customer worth approximately RMB3.2 million for maintenance and overhaul services. This contract will run from October 1, 2022 to September 30, 2024, covering over 3200 safety instrumentations. CEO Shenping Yin stated that the company anticipates future revenue from this segment to exceed RMB20 million annually in fiscal year 2023. This agreement marks a significant step in Recon's focus on maintenance and safety services in China.

Recon Technology, Ltd (NASDAQ: RCON) announced the expansion of its cooperation with Hui Tong Tian Xia Petrochemical to launch new industry logistics solutions aimed at enhancing fuel management efficiency and promoting carbon neutrality. The agreement follows a previous partnership established in July 2021 and emphasizes addressing substantial fuel costs in China's logistics sector, projected at RMB280 billion in Q1 2022. The venture aims to develop a comprehensive online fuel management platform, leveraging G7's technologies to improve operational efficiency and sustainability in the logistics industry.

Recon Technology, Ltd (NASDAQ: RCON) provided an investor update on July 20, 2022, discussing business impacts from the pandemic and oil industry cycles. The company anticipates continued growth due to rising oil prices, with an expected average annual growth rate of 30% over the next three fiscal years. However, challenges persist, including slow customer budgeting cycles and the impact of the pandemic on new energy ventures. Despite share prices falling below $1, management aims to enhance profitability and shareholder returns without pursuing share consolidations or buybacks.

Recon Technology, Ltd (NASDAQ: RCON) announced on June 1, 2022, that it received a notification from Nasdaq about non-compliance with the minimum bid price requirement due to its shares trading below $1.00 for 30 consecutive days. Recon has 180 days until November 28, 2022, to regain compliance. Should the bid price rise above $1.00 for 10 consecutive days, Nasdaq will confirm compliance. A potential 180-day extension is available if compliance is not met by the deadline, allowing RCON to address this issue.

Recon Technology, Ltd (NASDAQ: RCON) has signed a 3-year service agreement with a domestic oilfield client in mainland China for oily wastewater treatment, valued at approximately RMB3.5 million annually. The agreement outlines the provision of treatment facilities and chemicals to ensure compliance with environmental standards. The company reports a significant growth trajectory in its oilfield environmental business, boasting a 544% year-over-year increase in revenue for the six months ending December 31, 2021. This development highlights Recon's commitment to expanding its environmental solutions in the oilfield sector.

Recon Technology, Ltd (NASDAQ: RCON) announced a strategic cooperation agreement with the Kunming Branch of China Minsheng Bank Corp. to enhance fuel purchasing via the bank's Cloud Wallet platform. This collaboration aims to direct customers to gas stations and provide preferential options for consumers through the DT Refuel application. The CEO highlighted successful past collaborations, noting over RMB 1.26 billion in transactions through Minsheng's services since 2019. This agreement is expected to attract more users and increase transaction volumes for DT Refuel.

Recon Technology, Ltd (RCON) reported a 116.2% increase in total revenues to $8.6 million for the first six months of Fiscal Year 2022, driven by a 605.9% surge in oily sludge and wastewater segments. The company achieved a net income of $17.5 million, a significant turnaround from a net loss of $10 million in the previous year. Gross profit remained stable at 26.7% of revenue. Despite increased operating expenses, including a 263.7% rise in general and administrative costs, management is optimistic about future growth opportunities as oil prices rise.

Recon Technology, Ltd (NASDAQ: RCON) announced multiple recent contracts and business advancements for early 2022. The automation segment secured RMB3.26 million in contracts from Shenhua Group, while the equipment segment gained RMB2.39 million. Additionally, online transactions via FGS' digitization services doubled year-over-year. CEO Shenping Yin noted improved performance from China's oil companies benefiting Recon, with gross revenues recovering to pre-2020 levels. The company aims to enhance investor communication and transparency moving forward.

Recon Technology Ltd (NASDAQ: RCON) has secured a RMB6.87 million contract with Dalian West Pacific Petrochemical Company Limited to provide operation and maintenance services for metering instruments over a three-year period. This contract highlights Recon's strong positioning in the energy sector, being the first NASDAQ-listed non-state oil and gas service company in China. The project aims to enhance the operation of alarms and flow meters essential for refinery production. The collaboration underscores Recon's commitment to leveraging intelligent IoT technology for improved service delivery.