Recon Technology Ltd Stock Price, News & Analysis

Recon Technology Limited (NASDAQ: RCON) has announced a 10% investment in Shandong Zhong You Yun Xin Information Technology Company, a PetroChina affiliate. This collaboration aims to accelerate the transition to clean energy with the launch of a pilot project in Shandong Province. Recon's updated energy solution involves an integrated microgrid for solar energy storage and charging, leveraging existing gas station infrastructure. CEO Shenping Yin highlighted the strategic partnership's potential to transform gas stations into integrated energy supply stations, enhancing operational efficiency while complying with national carbon-neutral goals.

Recon Technology, Ltd. (RCON) reported a challenging fiscal year 2021, with revenues declining by 27.1% to $7.4 million. The gross profit fell 63.2% to $1.1 million, and the gross profit margin slid to 15.1%, down 14.7 percentage points year-on-year. A net loss of $3.5 million was recorded, worse than the previous year. Despite these setbacks, management sees potential in new energy markets and has launched a solar-powered solution aimed at reducing CO2 emissions by 78%. Cash reserves rose significantly to $53.3 million, reflecting financing activity.

Recon Technology Limited (NASDAQ: RCON) announced a RMB9 million (approx. USD1.4 million) service contract with Yumen Oilfield Engineering Construction Co. for hazardous waste disposal at various oil production plants in Yumen Oilfield. The contract spans one year and involves the disposal of 6,000 tons of oily sludge. Gansu BHD, a subsidiary of Recon, holds a vital environmental permit and has invested RMB40 million in treatment capacity. Company leaders believe this contract reinforces their position in the oilfield environmental protection sector, which they see as a key growth area.

Recon Technology Limited (NASDAQ: RCON) announced a RMB 4.08 million maintenance contract with CNPC Yunnan Petrochemical for a combustible toxic gas alarm system. The contract, valued at approximately US$ 637,500, spans four years and involves inspection, maintenance, and troubleshooting of over 3,000 instruments to ensure safe and stable operations. This recognition reflects Recon's expertise in automation instrumentation for the petroleum sector. The CEO expressed commitment to leveraging their experience for wider safety assurance in the oil and refining industry.

Recon Technology, Ltd (NASDAQ: RCON) announced a three-year partnership between its subsidiary Future Gas Station (FGS) and Hui Tong Tian Xia Petrochemical Co. Ltd. This agreement aims to develop an electronic fuel consumption management platform for logistics companies, primarily focused on enhancing refueling efficiency and data management. Initial operations will commence in eight provinces, with an expected monthly fuel flow of RMB 66 million. FGS will earn service fees based on the volume of fuel managed through the platform, marking a strategic shift into the logistics sector.

Recon Technology, Ltd (NASDAQ: RCON) announced a strategic cooperation agreement between its subsidiary Future Gas Station (FGS) and An Hui Gao Deng Wei Xing Technology Ltd. This partnership focuses on enhancing refueling services, electronic fuel coupon sales, and developing electronic fuel cards, utilizing FGS's online refueling channel for improving customer experience at CNPC gas stations. Gao Deng's ETC Assistant App, which supports millions of users, will be a key element in this initiative. The collaboration aims to optimize operational efficiency and enhance the smart travel business in China.

Recon Technology, Ltd. (NASDAQ: RCON) has announced a securities purchase agreement on June 14, 2021, to raise $55 million through a registered direct offering of 8,814,102 Class A ordinary shares and corresponding warrants. The offering price is set at $6.24 per share. These pre-funded warrants will allow certain investors to maintain ownership below 9.99%. The transaction, expected to close on June 16, 2021, is managed by Maxim Group LLC. This initiative aims to bolster Recon's financial position and further its operational capabilities.

Recon Technology, Ltd (NASDAQ: RCON) announced two contracts worth RMB 3,277,000 (approximately $0.51 million) with Sinopec's North China Branch. These contracts involve technical services for ultra-deep electric submersible progressing cavity pumps at gas wells in the Dongsheng Field. CEO Guangqiang Chen reported total contracts with the North China Branch have reached RMB 5.077 million (about $0.8 million) for three wells, with expectations of generating $5 million in total income from services for 15 additional wells.

Recon Technology, Ltd. (NASDAQ: RCON) announced a share exchange agreement with Starry Blockchain Energy Pte. Ltd. on June 3, 2021. This agreement will allow Recon to acquire 30% of Starry in exchange for unregistered Class A shares. By leveraging blockchain technology, Recon aims to enhance sustainable energy solutions in China. CEO Shenping Yin emphasized that this investment will enable the company to modernize traditional gas stations and oil fields through improved energy management. Starry focuses on building a blockchain platform for distributed energy trading, aligning with global carbon neutrality efforts.