Recon Technology Ltd Stock Price, News & Analysis

On May 18, 2021, Recon Technology, Ltd (NASDAQ: RCON) announced its strategic shift into the renewable energy sector. The company's board plans to explore technologies such as energy storage, micro-grid, and blockchain-based energy trading to meet global climate goals. Anticipating a multi-trillion dollar investment in emission reductions, RCON aims to acquire relevant technology firms and enhance its existing FGS platform. This move is part of RCON's strategy to expand its services and become an integrated energy supplier, responding to anticipated demand in the renewable energy market.

Recon Technology, Ltd (NASDAQ: RCON) announced a three-year renewal of its cooperation agreement with Banma Network Technology Co., Ltd., effective May 1, 2021. The partnership focuses on integrating FGS's DT Refuel function with Banma's Smart Refuel application, allowing users to refuel at Petro China's gas stations through their vehicle's dashboard. This extension aims to enhance the refueling experience and is expected to facilitate FGS's service adoption across 800 new gas stations and reach 1.6 million new vehicle owners within two years.

Recon Technology announced a cooperation agreement involving its subsidiary, Future Gas Station (FGS), with Henan CNPC and Alipay to develop a mini-program titled 'Hao Ke Le Jia' on the Alipay platform. This program aims to create a joint membership initiative allowing car owners in Henan province to access discounts on fuel and other benefits. Notably, Henan CNPC operates over 800 gas stations in the region, serving more than 20 million registered drivers. FGS has a proven track record, having served over 5.35 million car owners in Zhejiang since late 2017.

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.