Recon Technology Ltd Stock Price, News & Analysis

Recon Technology, Ltd (Nasdaq: RCON) reported a 17.2% decline in total revenues for the first six months of Fiscal Year 2021, amounting to $3.9 million. Despite a significant increase of 10,618.7% in revenue from oily sludge and wastewater processing, revenue from automation products decreased by 44.1%. Gross profit fell 43.9% to $1.0 million, leading to a net loss of $1.4 million. The company anticipates increased orders and capital expenditures from Chinese oil companies in 2021, while focusing on digital transformation and enhancing operational efficiency.

Recon Technology, Ltd (NASDAQ: RCON) has officially relocated its corporate headquarters to better support its growth and recent acquisition of Future Gas Station Technology, Ltd. The new office in Beijing offers larger facilities for the company's staff of about 100, enhancing operational efficiency. CEO Shenping Yin expressed enthusiasm about the move, indicating it lays a foundation for future growth initiatives. The company will hold its annual meeting for shareholders on April 5, 2021, at its previous address.

Recon Technology, Ltd (NASDAQ: RCON) announced that CFO Jia Liu will present at the Inaugural Emerging Growth Virtual Conference on March 17-18, 2021. This event, hosted by M Vest LLC and Maxim Group LLC, will feature discussions with executives across various industries, including oil and gas. Recon, as China's first NASDAQ-listed non-state owned oil and gas field service company, provides advanced technologies and services to major clients like Sinopec and China National Petroleum Corporation.

On February 4, 2021, Recon Technology, Ltd. (NASDAQ: RCON) completed an acquisition of 8% equity in Future Gas Station (FGS), raising its ownership to 51%. This acquisition allows Recon to consolidate FGS's financial results from January 2021. FGS, focused on digital transformation in gas stations, reported over RMB 4.34 billion in accumulated gross merchandise volume and over 5.1 million registered users by January 31, 2021. CEO Yin Shenping emphasized the strategic value of the acquisition in enhancing operational capabilities and competitiveness.

Recon Technology, Ltd. (NASDAQ: RCON) announced the successful implementation of an AI-based intelligent control platform for Sinopec's North China Branch. This project, finalized under a technology service agreement from October 2020, aims to enhance the efficiency of electrical submersible pumps (ESPs) in gas wells. The System has proven effective in extending ESP service life and optimizing economic performance. Sinopec has paid over half of the RMB 1.8 million (approximately USD 276,000) contract value. Recon's CTO expressed pride in this technological advancement, emphasizing ongoing commitments to R&D and digital transformation in oil and gas operations.

Recon Technology, Ltd. (Nasdaq: RCON) reported its fiscal 2020 financial results, showing total revenues of approximately RMB65.8 million ($9.3 million), down 35.8% from the previous year. Despite a net loss of $2.7 million ($0.59 per share), the gross profit margin increased to 29.8%. The company’s operating expenses decreased by 26.5% due to cost-cutting measures, especially in selling and administrative expenses. Cash position improved to RMB30.3 million ($4.3 million) compared to the prior year, aided by successful securities offerings during mid-2020.

Recon Technology, Ltd. (NASDAQ: RCON) announced that its subsidiary, Gan Su BHD Environmental Technology Co., Ltd, received a 3-year hazardous waste operating permit from the Gansu Province Environmental Protection Bureau on July 27, 2020. The subsidiary has secured a new order from Sinopec to dispose of 1,680 tons of oily sludge, valued at approximately RMB3.6 million ($0.5 million). Additionally, Gan Su BHD's comprehensive disposal treatment facility, operational since January 2020, is set to significantly enhance its service capabilities in waste treatment.

Recon Technology, Ltd. (RCON) announced a securities purchase agreement on June 26, 2020, with accredited investors for a registered direct offering of $2.1 million worth of ordinary shares. The offering includes the sale of 1.68 million ordinary shares at $1.25 each and unregistered warrants for the same number of shares. The concurrent private placement allows for immediate exercise of warrants, expiring in 5.5 years. Proceeds are intended for general corporate purposes. The offering is expected to close by June 30, 2020, depending on customary conditions.

Recon Technology, Ltd. (RCON) announced a memorandum of understanding (MOU) on June 22, 2020, to explore acquiring up to 100% of Beijing Originwater Purification Engineering Technology Co. Ltd. The acquisition price will be determined by an independent evaluation, paid in cash and restricted ordinary shares. Due to potential conflicts of interest, an independent committee will review the transaction. Originwater specializes in addressing water issues in China, including pollution and shortages. Further details will be disclosed after a definitive agreement is reached.