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PR Newswire

Recon Updates Progress on its Technology-Driven Solutions for Electric Submersible Progressing Cavity Pump with $5 Million Orders Secured

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BEIJING, June 11, 2021 — Recon Technology, Ltd (NASDAQ: RCON) ("Recon" or the "Company") today announced that its subsidiary, Beijing BHD Petroleum Technology Limited, signed two contracts with North China E&P Company (the "North China Branch") of China Petroleum & Chemical Corporation ("Sinopec"). Pursuant to these two contracts, the Company has provided technical service with ultra-deep electric submersible progressing cavity pump ("ESPCP") to one gas well at the Dongsheng Field of the Second Gas Production Plant (the "Plant No. 2") of the North China Branch and will provide the same service to another gas well at the Plant No. 2. Total amount of these two contracts is RMB 3,277,000 (approximately $0.51 million).

Management Statement

"We are extremely excited to make more breakthroughs in the ultra-deep submersible progressing cavity pump business," said Mr. Guangqiang Chen, founder and CTO of Recon, "Since last year when we signed a contract with the North China Branch and completed our first trial, we have now signed service contracts for RMB5.077 million (approximately $0.8 million) with the North China Branch for three gas wells. We are in the process of communicating with the North China Branch for ESPCP and related services for 15 more wells and expect to complete services by the end of calendar year 2021. Added together, we expect these services will bring us about $5 million of income."

Mr. Chen continued, "Beyond our own AI-based technology, we further integrated and upgraded downhole gas-liquid separation metering technology with equipment such as the ultra-deep screw pump from National Oilwell Varco Inc. (NYSE: NOV) and the downhole multi-parameter sensing devices from Power Max Petroleum Technologies Ltd, a Canada based company. We completed the construction for one gas well at Plant No. 2 with our comprehensive solution by April 16, 2021. According to our observation and testing for almost two months, the drainage and gas boosting effect has been stable, and the production status of the whole set of equipment has been reliable. Without this solution, submersible pumps used by oil companies generally have a working life cycle of only three months, after which time sand jams and equipment wear tend to result in interruption of gas well production. As a result, oil and gas companies incur costly inspection and repair fees. Our solution is expected to guarantee stable operation for more than one year, thus saving the high inspection and repair service costs, equipment and accessories replacement costs, electricity costs and sewage treatment costs. Taken together, our solution can help our clients increase their margin by up to 40%. We held an on-site technical exchange and promotion meeting with the North China Branch on May 20, 2021 and we were told that the North China Branch will promote our ultra-deep screw pump same well recovery and injection technology to all the new gas wells to be invested by the North China Branch. In the future, we plan to continue upgrading our technology in the same well recovery and injection business to provide more value-added services to our clients, and bring more long term returns to the Company."

About Recon Technology, Ltd

Recon Technology, Ltd (NASDAQ: Recon) is China’s first listed non-state owned oil and gas field service company on NASDAQ. Recon supplies China’s largest oil exploration companies, Sinopec (NYSE: SNP) and The China National Petroleum Corporation ("CNPC"), with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measure for increasing petroleum extraction levels, reducing impurities and lowering production costs. Through the years, Recon has taken leading positions on several segmented markets of the oil and gas filed service industry. Recon also has developed stable long-term cooperation relationship with its major clients. For additional information please visit: www.recon.cn.

Forward Looking Statements 

Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, whether we will sign any additional contracts with the North China Branch, the final revenue from providing services to the North China Branch, actual results of our solutions in the field, levels of spending in our industry as well as consumer confidence generally; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; and other risks discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

For more information, please contact:

Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5188
Email: info@recon.cn

Related Links :

http://www.recon.cn/

PR Newswire

Recon Technology, Ltd Reports Financial Results for the First Six Months of Fiscal Year 2021

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BEIJING, April 5, 2021 — Recon Technology, Ltd (Nasdaq: RCON) ("Recon" or the "Company"), today announced its financial results for the first six months of Fiscal Year 2021.

First Six Months of Fiscal 2021 Financial:

  • Total revenues for the six months ended December 31, 2020 decreased by 17.2% to $3.9 million (RMB25.2 million), while revenue from oily sludge and waste water increased by 10,618.7% or $0.4 million (RMB2.8 million).
  • Gross profit for the six months ended December 31, 2020 was $1.0 million (RMB6.7 million). Gross profit margin for the six months ended December 31, 2020 was 26.7%, representing a decrease of 12.7 percentage points compared to the six months ended December 31, 2019.
  • Net loss attributable to Recon for the six months ended December 31, 2020 was $1.4 million (RMB8.9 million), or $0.19 (RMB1.22) per basic and diluted share, compared to RMB6.7 million, or RMB1.51 per basic and diluted share, for the six months ended December 31, 2019.

Management Commentary

Mr. Shenping Yin, co-founder and CEO of Recon stated, "During the six months period ended December 31, 2020, our management focused on fund reserve and cash management to prepare for a rapid development in the coming year. We believe oil companies in China will continue to increase their capital expenditures in 2021. We expect more orders to be released in year 2021 which might be a busy year of the overall oil industry. We expect our business will benefit from this trend and our numbers will be improved from the second half year of calendar 2021."

Mr. Yin continued, "Besides, the oil industry is experiencing digital transformation. We believe oil companies will continue to increase their usages of intelligent solutions to improve the operation efficiency. We have been devoting resources and participating testing projects with our clients to develop leading solutions. We will continue to enhance our competitive strength through up-gradation with big data and intelligent analysis. We have also seen the trend of digitalization and intelligence in downstream of the oil and gas industry, especially in the management and operation of gas stations in China. We have acquired 51% of Future Gas Station (Beijing) Technology, Ltd. by January 2021 and will continue to invest more in this segment."

First Six Months Fiscal 2021 Financial Results:

Revenue

Total revenues for the six months ended December 31, 2020 decreased by RMB5.2 million ($0.8 million) or 17.2%, to RMB25.2 million ($3.9 million) compared to RMB30.4 million for the six months ended December 31, 2019 mainly due to the decreased revenue from automation products during the six months ended December 31, 2020.

Revenue from automation product and software decreased by RMB10.0 million ($1.5 million), or 44.1%, to RMB12.6 million ($1.9 million) for the six months ended December 31, 2020 from RMB22.6 million for the six months ended December 31, 2019, as the Company’s sales activities were not able to return to normal level which was affected by Covid-19. To make a breakthrough, the Company’s management has been upgrading its automation solutions and introducing big data and intelligent technology to the Company’s products and enhancing its capacity of downhole solutions to enhance its competitive strength.

Revenue from equipment and accessories increased by RMB1.9 million ($0.3 million), or 24.9%, to RMB9.8 million ($1.5 million) for the six months ended December 31, 2020 from RMB7.8 million for the six months ended December 31, 2019 as requirement from maintenance of heating furnaces continued to increase.

Revenue from oilfield environmental protection projects increased by RMB2.8 million ($0.4 million), or 10,618.7%, to RMB2.8 million ($0.4 million) for the six months ended December 31, 2020 as the Company stared to process oily sludge during the six months ended December 31, 2020 and revenue was recorded. As of December 31, 2020, the Company received 4,680 tons of oily sludge from several oil companies and processed 796 tons of them, which was reflected in its revenue for the six months ended December 31, 2020.

Cost and Margin

Total cost of revenues increased slightly from RMB18.4 million for the six months ended December 31, 2019 to RMB18.5 million ($2.8 million) for the same period in 2020. The increase was mainly caused by increased cost of revenue from equipment and accessories and oilfield environmental protection segments.

Gross profit decreased by RMB5.3 million ($0.8 million), or 43.9%, to RMB6.7 million ($1.0 million) for the six months ended December 31, 2020 from RMB12.0 million from the six months ended December 31, 2019. The gross profit as a percentage of revenue decreased to 26.7% for the six months ended December 31, 2020 from 39.4% for the same period in 2019.

Operating Expenses

Selling and distribution expenses maintained at the same level of RMB2.7 million ($0.4 million) compared to the six months ended December 31, 2019.

General and administrative expenses decreased by RMB0.4 million ($0.1 million), or 2.7%, to RMB13.0 million ($2.0 million) for the six months ended December 31, 2020 from RMB13.4 million for the six months ended December 31, 2019. The decrease in general and administrative expenses was mainly due to the decrease in stock-based compensation expense as well as social security expenses during the six months ended December 31, 2020.

Provision for doubtful accounts was RMB25,537 ($3,665) for the six months ended December 31, 2019, compared to reversal of provision for doubtful accounts of RMB3.7 million for the six months ended December 31, 2020, mainly due to the collection of long outstanding receivables during the six months ended December 31, 2020.

Research and development expenses increased from approximately RMB2.9 million for the six months ended December 31, 2019 to RMB3.8 million ($0.6 million) for the same period of 2020. This increase was primarily due to more research and development expense spent on design of new automation platform systems and treatment of wastewater.

Net Loss

Loss from operations was RMB9.1 million ($1.4 million) for the six months ended December 31, 2020, compared to a loss of RMB7.0 million for the six months ended December 31, 2019. This RMB2.1 million ($0.3 million) increase in loss from operations was primary due to decreased revenue and increase in R&D expenses.

Net loss was RMB10.0 million ($1.5 million) for the six months ended December 31, 2020, an increase of RMB3.3 million ($0.5 million) from net loss of RMB7.0 million for the six months ended December 31, 2019. Net loss attributable to the Company for the six months ended December 31, 2019 was RMB6.7 million, or RMB1.51 per basic and diluted share, compared to RMB8.9 million ($1.4 million), or RMB1.22 ($0.19) per basic and diluted share for the six months ended December 31, 2020.

As of December 31, 2020, the Company had cash of RMB70.8 million ($10.8 million), compared to RMB30.3 million as of June 30, 2020. As of December 31, 2020, the Company had working capital of RMB67.0 million ($10.3 million) while as of June 30, 2020, the Company had working capital of RMB64.1 million.

Net cash used in operating activities was RMB16.7 million ($2.6 million) for the six months ended December 31, 2020, compared to net cash provided by operating activities of approximately RMB0.3 million for the six months ended December 31, 2019. Net cash provided by investing activities was RMB1.9 million ($0.3 million) for the six months ended December 31, 2020, compared to net cash provided by investing activities RMB3.7 million for the six months ended December 31, 2019. Net cash provided by financing activities was RMB56.2 million ($8.6 million) for the six months ended December 31, 2020, compared to net cash provided by financing activities of RMB1.9 million for the six months ended December 31, 2019.

Exchange Rate

The translation of RMB amounts into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB6.5326 to $1.00, the approximate exchange rate prevailing on December 31, 2020.

About Recon Technology, Ltd

Recon Technology, Ltd (NASDAQ: RCON) is China’s first NASDAQ-listed non-state owned oil and gas field service company. Recon supplies China’s largest oil exploration companies, Sinopec (NYSE: SNP) and The China National Petroleum Corporation ("CNPC"), with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measure for increasing petroleum extraction levels, reducing impurities and lowering production costs. Through the years, RCON has taken leading positions on several segmented markets of the oil and gas filed service industry. RCON also has developed stable long-term cooperation relationship with its major clients, and its products and service are also well accepted by clients. For additional information please visit: www.recon.cn.

Safe Harbor Statement

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, the effect of novel coronavirus and other health matters on target markets, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information, please contact:

Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5188
Email: info@recon.cn

 

RECON TECHNOLOGY, LTD

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS

(UNAUDITED)

As of June 30

As of
December 31

As of
December 31

2020

2020

2020

RMB

RMB

U.S. Dollars

ASSETS

Current assets

Cash

¥

30,336,504

¥

70,807,497

$

10,839,024

Notes receivable

4,180,885

7,789,997

1,192,472

Trade accounts receivable, net

48,244,015

35,471,068

5,429,817

Trade accounts receivable- related party, net

3,068,920

–

–

Inventories, net

1,985,723

2,117,754

324,180

Other receivables, net

6,350,802

11,004,821

1,684,589

Loans to third parties

3,200,377

950,000

145,423

Purchase advances, net

178,767

82,437

12,619

Contract assets, net

31,537,586

45,621,966

6,983,690

Prepaid expenses

198,294

–

–

Total current assets

129,281,873

173,845,540

26,611,814

Property and equipment, net

29,756,879

29,078,178

4,451,210

Land use right, net

1,280,648

1,267,028

193,953

Investment in unconsolidated entity

31,541,850

31,290,554

4,789,875

Long-term other receivables, net

3,640

–

–

Operating lease right-of-use assets (including ¥803,503 and ¥508,888 ($88,921) from a related party as of June 30, 2020 and December 31, 2020, respectively)

2,549,914

2,070,548

316,954

Total Assets

¥

194,414,804

¥

237,551,848

$

36,363,806

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Short-term bank loans

¥

9,520,000

¥

12,020,000

$

1,839,990

Convertible notes payable

–

42,448,810

6,497,951

Trade accounts payable

23,034,347

19,273,046

2,950,267

Other payables

2,609,486

1,563,002

239,260

Other payable- related parties

4,498,318

1,655,668

253,445

Contract liabilities

3,486,033

6,686,592

1,023,566

Accrued payroll and employees’ welfare

1,917,635

954,304

146,081

Investment payable

6,400,000

6,400,000

979,695

Taxes payable

1,108,288

1,381,912

211,539

Short-term borrowings

200,000

215,699

33,019

Short-term borrowings – related parties

10,230,746

12,009,174

1,838,333

Long-term borrowings – related party – current portion

847,346

882,900

135,152

Operating lease liabilities – current (including ¥450,728 and ¥461,859 ($70,700) from a related party as of June 30, 2020 and December 31, 2020, respectively)

1,328,976

1,333,113

204,069

Total Current Liabilities

65,181,175

106,824,220

16,352,367

Operating lease liabilities – non-current (including ¥352,775 and ¥119,029 ($18,221) from a related party as of June 30, 2020 and December 31, 2020, respectively)

1,210,088

729,909

111,733

Long-term borrowings – related party

7,379,253

6,942,795

1,062,785

Total Liabilities

73,770,516

114,496,924

17,526,885

Commitments and Contingencies

Equity

Common stock, ($ 0.0925 U.S. dollar par value, 20,000,000 shares authorized; 7,202,832 shares and 8,416,721 shares issued and outstanding as of June 30, 2020 and December 31, 2020, respectively)*

4,577,233

5,312,021

813,150

Additional paid-in capital

282,505,455

295,104,195

45,173,769

Statutory reserve

4,148,929

4,148,929

635,107

Accumulated deficit

(184,027,586)

(192,963,238)

(29,538,302)

Accumulated other comprehensive gain

2,825,731

1,894,365

289,984

Total stockholders’ equity

110,029,762

113,496,272

17,373,708

Non-controlling interests

10,614,526

9,558,652

1,463,213

Total equity

120,644,288

123,054,924

18,836,921

Total Liabilities and Equity

¥

194,414,804

¥

237,551,848

$

36,363,806

* Retrospectively restated for effect of stock split on December 27, 2019.

 

RECON TECHNOLOGY, LTD

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(UNAUDITED)

For the six months ended

December 31,

2019

2020

2020

RMB

RMB

USD

Revenues

Revenues – third party

¥

30,405,153

¥

25,083,622

$

3,839,734

Revenues – related party

–

85,657

13,112

Revenues

30,405,153

25,169,279

3,852,847

Cost of revenues

Cost of revenues – third party

18,437,241

18,452,239

2,824,620

Cost of revenues

18,437,241

18,452,239

2,824,620

Gross profit

11,967,912

6,717,040

1,028,227

Selling and distribution expenses

2,660,873

2,750,389

421,022

General and administrative expenses

13,366,413

13,009,013

1,991,385

Provision for (net recovery of) doubtful accounts

25,537

(3,697,024)

(565,931)

Research and development expenses

2,895,286

3,756,839

575,087

Operating expenses

18,948,109

15,819,217

2,421,563

Loss from operations

(6,980,197)

(9,102,177)

(1,393,336)

Other income (expenses)

Subsidy income

854,389

222,038

33,989

Interest income

85,745

20,168

3,087

Interest expense

(761,322)

(1,000,182)

(153,105)

Income (loss) from investment in unconsolidated entity

141,288

(251,296)

(38,468)

Foreign exchange transaction gain (loss)

209

(78,784)

(12,060)

Other income (loss)

(60,760)

50,369

7,711

Other income (expense), net

259,549

(1,037,687)

(158,846)

Loss before income tax

(6,720,648)

(10,139,864)

(1,552,182)

Income tax expenses (benefit)

316,799

(98,338)

(15,053)

Net loss

(7,037,447)

(10,041,526)

(1,537,129)

Less: Net loss attributable to non-controlling interests

(336,250)

(1,105,874)

(169,284)

Net loss attributable to Recon Technology, Ltd

¥

(6,701,197)

¥

(8,935,652)

$

(1,367,845)

Comprehensive loss

Net loss

(7,037,447)

(10,041,526)

(1,537,129)

Foreign currency translation adjustment

9,610

(931,366)

(142,571)

Comprehensive loss

(7,027,837)

(10,972,892)

(1,679,700)

Less: Comprehensive loss attributable to non-controlling interests

(336,250)

(1,105,874)

(169,284)

Comprehensive loss attributable to Recon Technology, Ltd

¥

(6,691,587)

¥

(9,867,018)

$

(1,510,416)

Loss per common share – basic and diluted

¥

(1.51)

¥

(1.22)

$

(0.19)

Weighted – average shares -basic and diluted*

4,449,980

7,330,866

7,330,866

* Retrospectively restated for effect of stock split on December 27, 2019.

 

RECON TECHNOLOGY, LTD

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(UNAUDITED)

For the six months ended December 31,

2019

2020

2020

RMB

RMB

U.S. Dollars

Cash flows from operating activities:

Net loss

¥

(7,037,447)

¥

(10,041,526)

$

(1,537,129)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

411,592

1,369,590

209,653

Loss from disposal of equipment

3,189

1,095

168

Provision for (net recovery of) doubtful accounts

25,537

(3,697,024)

(565,931)

Provision for slow moving inventories

25,312

423,714

64,861

Amortization of right of use assets

718,000

542,896

83,105

Restricted shares issued for management and employees

4,057,093

3,403,513

521,001

Loss (income) from investment in unconsolidated entity

(141,288)

251,296

38,468

Interest expenses related to convertible notes

–

84,607

12,951

Restricted shares issued for services

33,927

–

–

Changes in operating assets and liabilities:

Notes receivable

(986,826)

(3,609,112)

(552,473)

Trade accounts receivable

5,412,201

15,866,295

2,428,770

Trade accounts receivable-related party

–

3,409,912

521,980

Inventories

(551,200)

(765,595)

(117,195)

Other receivable

1,364,500

(4,262,681)

(652,520)

Other receivables-related parties

–

(23,800)

(3,643)

Purchase advance

1,108,902

96,330

14,746

Contract assets

(9,951,981)

(14,262,839)

(2,183,318)

Prepaid expense

116,917

(19,306)

(2,955)

Prepaid expense – related parties

217,600

217,600

33,310

Operating lease liabilities

(610,000)

(539,572)

(82,596)

Trade accounts payable

362,758

(3,761,301)

(575,770)

Other payables

(160,316)

(850,478)

(130,189)

Other payables-related parties

1,790,155

(2,842,651)

(435,145)

Advance from customers

1,904,753

3,200,559

489,933

Accrued payroll and employees’ welfare

1,501,406

(963,905)

(147,552)

Accrued expenses

–

(198,483)

(30,383)

Taxes payable

650,855

273,624

41,886

Net cash provided by (used in) operating activities

265,639

(16,697,242)

(2,555,967)

Cash flows from investing activities:

Purchases of property and equipment

(12,967)

(375,569)

(57,491)

Proceeds from disposal of equipment

900

–

–

Repayments from loans to third parties

4,960,000

3,200,377

489,905

Payments made for loans to third parties

–

(950,000)

(145,423)

Payments and prepayments for construction in progress

(1,297,663)

–

–

Net cash provided by investing activities

3,650,270

1,874,808

286,991

Cash flows from financing activities:

Proceeds from short-term bank loans

–

3,520,000

538,832

Repayments of short-term bank loans

–

(1,020,000)

(156,139)

Proceeds from short-term borrowings

–

2,460,000

376,570

Repayments of short-term borrowings

(1,081,096)

(2,460,000)

(376,570)

Proceeds from short-term borrowings-related parties

13,115,000

10,100,000

1,546,081

Repayments of short-term borrowings-related parties

(10,195,000)

(8,320,000)

(1,273,604)

Repayments of long-term borrowings-related party

(365,530)

(399,422)

(61,142)

Proceeds from sale of common stock, net of issuance costs

–

9,930,015

1,520,060

Proceeds from issuance of convertible notes

–

42,364,203

6,485,000

Capital contribution by non-controlling shareholders

405,000

50,000

7,654

Net cash provided by financing activities

1,878,374

56,224,796

8,606,742

Effect of exchange rate fluctuation on cash

9,611

(931,369)

(142,574)

Net increase in cash

5,803,894

40,470,993

6,195,192

Cash at beginning of period

4,521,325

30,336,504

4,643,832

Cash at end of period

¥

10,325,219

¥

70,807,497

$

10,839,024

Supplemental cash flow information

Cash paid during the period for interest

¥

718,201

¥

849,409

$

130,025

Cash received during the period for taxes

¥

(2,002)

¥

(98,338)

$

(15,053)

Non-cash investing and financing activities

Right-of-use assets obtained in exchange for operating lease obligations

¥

1,228,963

¥

63,530

$

9,725

Inventories used as fixed assets

¥

–

¥

302,795

$

46,351

Payable for construction in progress

¥

236,302

¥

–

$

–

Receivable for disposal of property and equipment

¥

5,000

¥

–

$

–

 

Related Links :

http://www.recon.cn/

PR Newswire

Recon Technology, Ltd Reports Financial Results for Fiscal Year 2020

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BEIJING, Oct. 10, 2020 — Recon Technology, Ltd. (Nasdaq: 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 fiscal year 2020.

Fiscal 2020 Financial Highlights:

  • Total cost of revenues for fiscal year 2020 decreased by 36.4% to $6.5 million (RMB46.2 million).
  • Gross profit for fiscal year 2020 was $2.8 million (RMB19.6 million). Gross profit margin for fiscal year 2020 was 29.8%, an increase of 0.6 percentage points compared to fiscal year 2019.
  • Net loss attributable to Recon for fiscal year 2020 was $2.7 million (RMB19.2 million), or $0. 59 (RMB4.16) per basic and diluted share, compared to $3.5 million (RMB24.0 million), or $0.92 (RMB6.49) per basic and diluted share for the fiscal year 2019.

Management Commentary

Mr. Shenping Yin, co-founder and CEO of Recon, stated, "The COVID-19 pandemic had a significant impact on our operation of the second-half of fiscal 2020, resulted in a delay in project performance timeline and thus delayed recognition of revenue. Nevertheless, we are pleased with our ability to handle such challenge and we believe our delayed projects will be completed methodically as social and overall conditions in China resume. We’re also very proud that our clients remained stable and we believe our strategy to establish long term cooperation with clients valuing our essential automation solution and value-added services will help us reposition our business by bringing more resources through companies that want to adopt effective online and industrial automotive solutions and Internet-of-Things in China."

"We believe Recon has been prepared for larger projects in automation and environmental protection segments. We never stop improving our business structure and focusing on opportunities that can leverage our knowledge and experience in energy industry. We believe all our current efforts will drive our long-term net profit growth targets," concluded Mr. Yin.

Fiscal 2020 Financial Results:

Revenue

Total revenues were approximately RMB65.8 million ($9.3 million), representing a decrease of 35.8% compared to fiscal year 2019.

Automation products and software. Revenues from automation products and software decreased to approximately RMB51.4 million ($7.3 million), representing a decrease of 19.1% from fiscal year 2019. The decrease was primarily due to the postponed acceptance of several projects and less expenditures budgeted by Shenhua Group and decreased orders from Xinjiang East Hope New Energy Co., Ltd.

Equipment and accessories. Revenue from equipment and accessories decreased to approximately RMB14.2 million ($2.0 million), representing a decrease of 40.6% from fiscal year 2019, mainly due to less demand of the Company’s products by oilfield companies as a result of low oil price.

Oilfield environmental protection. Revenue from oilfield environmental protection decreased by 99.2% to almost nil for this period, mainly affected by late acceptance inspection of the Company’s Gansu production project, thus orders were not fulfilled and revenue was not recognized during the fiscal year 2020.

Cost and Margin

Total cost of revenues decreased by 36.4% to approximately RMB46.2 million ($6.5 million), mainly due to the decreased cost in line with revenue.

Gross profit decreased to approximately RMB19.6 million ($2.8 million), representing a decrease of 34.4% from fiscal year 2019. Gross margin was maintained at a same level of 29.8%, compared to a 29.2% of last year. Specifically, gross margin for automation and equipment segments were all improved during fiscal year 2020. The Company expects that the gross margin for oilfield environmental protection segment will be back to a 40% level when the treatment process is completed and revenue is recognized.

Operating Expenses

Total operating expenses decreased to approximately RMB39.8 million ($5.6 million), representing a decrease of 26.5%.

Selling and distribution expenses. Selling and distribution expenses were approximately RMB4.4 million ($0.6 million), representing a 51.3% decrease from fiscal year 2019. This decrease was mainly caused by less traveling expenses and entertainment expenses as the Company tried to control its operating expenditure, as well as the restriction on travelling and outdoor activities imposed by PRC government due to the COVID-19 during the fiscal year 2020.

General and Administrative Expenses. General and administrative expenses was approximately RMB26.1 million ($3.7 million), representing a 36.7% decrease from fiscal year 2019. The decrease was mainly due to the decrease in stock-based compensation expense.

Research and development expenses. Research and development expenses were approximately RMB7.0 million ($1.0 million), representing an increase of 7.6% from fiscal year 2019. This increase was primarily due to more expenses spent on design of new automation platform systems.

Net Loss

Loss from operations was RMB20.2 million ($2.9 million), representing a decrease of 22.0% from fiscal year 2019, which was a loss of RMB25.8 million.

Basic and diluted EPS. Basic and diluted net loss per share were RMB4.16 ($0.59), compared to RMB6.49 ($0.92) in fiscal year 2019.

Financial Condition

As of June 30,2020, the Company had cash of RMB30.3 million ($4.3 million), compared to RMB4.5 million as of June 30, 2019. As of June 30, 2020, the Company had working capital of RMB64.1 million ($9.1 million), while as of June 30, 2019, the Company had working capital of RMB55.7 million. The increase was mainly contributed to securities offerings during May and June of 2020.

Net cash used in operating activities was RMB5.2 million ($0.7 million) for fiscal year 2020, compared to net cash used in operating activities of approximately RMB32.2 million for fiscal year 2019. Net cash used in investing activities was RMB2.1 million ($0.3 million) for fiscal year 2020, compared to RMB13.5 million for fiscal year 2019. Net cash provided by financing activities was RMB33.2 million ($4.7 million) for fiscal year 2020, compared to net cash provided by financing activities of RMB3.5 million for fiscal year 2019.

Exchange Rate

The translation of RMB amounts into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB7.06973 to $1.00, the approximate exchange rate prevailing on December 31, 2019.

About Recon Technology, Ltd.

Recon Technology, Ltd. (RCON) is China’s first non-state-owned oil and gas field service company listed on NASDAQ. Recon supplies China’s largest oil exploration companies with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measures for increasing petroleum extraction levels, reducing impurities and lowering production costs. Since 2017, the Company has expanded its business operations into other segments of the broader energy industry including electric power, coal chemicals, renewable energy and environmental protection in the energy and chemical industries. Through the years, Recon has taken leading positions on several market segments of the oil and gas field service industry. Recon also has developed stable long-term cooperation relationships with its major clients, and its products and service are well accepted by clients. For additional information please visit: www.recon.cn.

Safe Harbor Statement

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, the effect of novel coronavirus and other health matters on target markets, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

IR contact:

In China:

Ms. Liu Jia
Recon Technology, Ltd.
Phone: +86 (10) 8494-5799
Email: info@recon.cn

 

 

 

 

RECON TECHNOLOGY, LTD

CONSOLIDATED BALANCE SHEETS

As of June 30

As of June 30

As of June 30

2019

2020

2020

ASSETS

RMB

RMB

U.S. Dollars

Current assets

Cash

¥

4,521,325

¥

30,336,504

$

4,291,042

Notes receivable

3,073,680

4,180,885

591,378

Trade accounts receivable, net

68,535,282

48,244,015

6,824,026

Trade accounts receivable- related party, net

3,409,912

3,068,920

434,093

Inventories, net

1,270,523

1,985,723

280,877

Other receivables, net

5,665,593

6,350,802

898,309

Loans to third parties

4,960,000

3,200,377

452,687

Purchase advances, net

1,343,576

178,767

25,286

Contract assets, net

4,633,940

31,537,586

4,460,933

Prepaid expenses

192,837

198,294

28,048

Prepaid expenses – related parties

217,600

–

–

Total current assets

97,824,268

129,281,873

18,286,679

Property and equipment, net

3,661,321

29,756,879

4,209,055

Construction in progress

21,524,994

–

–

Land use right, net

1,307,887

1,280,648

181,145

Investment in unconsolidated entity

31,078,971

31,541,850

4,461,536

Long-term other receivables, net

440,015

3,640

515

Prepayments for construction in progress

1,144,098

–

–

Operating lease right-of-use assets (including ¥Nil and ¥803,503
($113,654) from a related party as of June 30, 2019 and 2020, respectively)

–

2,549,914

360,681

Total Assets

¥

156,981,554

¥

194,414,804

$

27,499,611

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Short-term bank loans

¥

2,500,000

¥

9,520,000

$

1,346,586

Trade accounts payable

14,089,293

23,034,347

3,258,163

Other payables

2,246,410

2,609,486

369,107

Other payable- related parties

2,290,873

4,498,318

636,279

Contract Liabilities

120,000

3,486,033

493,093

Accrued payroll and employees’ welfare

1,384,529

1,917,635

271,246

Investment payable

6,400,000

6,400,000

905,268

Taxes payable

2,180,847

1,108,288

156,765

Short-term borrowings

1,081,096

200,000

28,290

Short-term borrowings – related parties

9,010,525

10,230,746

1,447,120

Long-term borrowings – related party – current portion

780,797

847,346

119,856

Operating lease liabilities – current (including ¥Nil and ¥450,728
($63,755) from a related party as of June 30, 2019 and 2020, respectively)

–

1,328,976

187,981

Total Current Liabilities

42,084,370

65,181,175

9,219,754

Operating lease liabilities – non-current (including ¥Nil and ¥352,775
($49,899) from a related party as of June 30, 2019 and 2020, respectively)

–

1,210,088

171,165

Long-term borrowings – related party

8,196,204

7,379,253

1,043,782

Total Liabilities

50,280,574

73,770,516

10,434,701

Commitments and Contingencies

Equity

Common stock, ($ 0.0925 U.S. dollar par value, 20,000,000 shares
authorized; 4,361,634 shares and 7,202,832 shares issued and outstanding
as of June 30, 2019 and June 30, 2020, respectively) *

2,712,773

4,577,233

647,441

Additional paid-in capital

250,624,798

282,505,455

39,959,870

Statutory reserve

4,148,929

4,148,929

586,858

Accumulated deficit

(164,780,885)

(184,027,586)

(26,030,358)

Accumulated other comprehensive gain

2,909,936

2,825,731

399,694

Total stockholders’ equity

95,615,551

110,029,762

15,563,505

Non-controlling interests

11,085,429

10,614,526

1,501,405

Total equity

106,700,980

120,644,288

17,064,910

Total Liabilities and Equity

¥

156,981,554

¥

194,414,804

$

27,499,611

 

 

 

RECON TECHNOLOGY, LTD

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

For the years ended June 30,

2018

2019

2020

2020

RMB

RMB

RMB

USD

Revenues

Revenues – third party

¥

84,135,037

¥

98,657,433

¥

65,760,651

$

9,301,722

Revenues – related party

577,009

3,726,894

–

–

Revenues

84,712,046

102,384,327

65,760,651

9,301,722

Cost of revenues

Cost of revenues – third party

80,097,834

70,316,198

46,154,255

6,528,433

Cost of revenues – related party

464,027

2,202,765

–

–

Cost of revenues

80,561,861

72,518,963

46,154,255

6,528,433

Gross profit

4,150,185

29,865,364

19,606,396

2,773,289

Selling and distribution expenses

8,013,353

9,076,266

4,417,413

624,835

General and administrative expenses

34,687,317

41,288,351

26,120,099

3,694,644

Provision for (net recovery of) doubtful accounts

(841,242)

610,776

2,203,531

311,685

Research and development expenses

3,215,653

3,133,545

7,042,385

996,132

Operating expenses

45,075,081

54,108,938

39,783,428

5,627,296

Loss from operations

(40,924,896)

(24,243,574)

(20,177,032)

(2,854,007)

Other income (expenses)

Subsidy income

371,650

1,149,016

1,210,318

171,197

Interest income

68,028

40,391

54,746

7,744

Interest expense

(897,521)

(1,589,045)

(1,451,890)

(205,367)

Income (loss) from investment in unconsolidated entity

–

(959,905)

462,879

65,473

Impairment loss of investment in unconsolidated entity

(4,037,736)

–

–

–

Foreign exchange transaction gain (loss)

(4,068)

56,603

(17,720)

(2,506)

Other income

65,539

162,585

78,417

11,092

Other income (expense), net

(4,434,108)

(1,140,355)

336,750

47,633

Loss before income tax

(45,359,004)

(25,383,929)

(19,840,282)

(2,806,374)

Income tax expenses

16,230

398,477

282,322

39,934

Net loss

(45,375,234)

(25,782,406)

(20,122,604)

(2,846,308)

Less: Net loss attributable to non-controlling interests

(1,302,913)

(426,501)

(875,903)

(123,895)

Net loss attributable to Recon Technology, Ltd

¥

(44,072,321)

¥

(25,355,905)

¥

(19,246,701)

$

(2,722,413)

Comprehensive loss

Net loss

(45,375,234)

(25,782,406)

(20,122,604)

(2,846,308)

Foreign currency translation adjustment

1,765,249

1,393,843

(84,205)

(11,911)

Comprehensive loss

(43,609,985)

(24,388,563)

(20,206,809)

(2,858,219)

Less: Comprehensive loss attributable to non-controlling
interests

(1,302,913)

(426,501)

(875,903)

(123,895)

Comprehensive loss attributable to Recon Technology,
Ltd

¥

(42,307,072)

¥

(23,962,062)

¥

(19,330,906)

$

(2,734,324)

Loss per common share – basic and diluted

¥

(19.19)

¥

(6.49)

¥

(4.16)

$

(0.59)

Weighted – average shares -basic and diluted

2,296,693

3,908,833

4,624,615

4,624,615

 

 

 

RECON TECHNOLOGY, LTD

CONSOLIDATED STATEMENTS OF CASH FLOWS    

For the years ended

2018

2019

2020

2020

RMB

RMB

RMB

U.S. Dollars

Cash flows from operating activities:

Net loss

¥

(45,375,234)

¥

(25,782,406)

¥

(20,122,604)

$

(2,846,308)

Adjustments to reconcile net loss to net cash used in
operating activities:

Depreciation and amortization

1,119,049

1,124,011

1,609,700

227,689

Gain from disposal of equipment

(78,285)

–

(89,156)

(12,611)

Provision for (net recovery of) doubtful accounts

(841,242)

610,776

2,203,531

311,685

Provision for slow moving inventories

65,245

65,380

56,817

8,037

Amortization of right of use assets

–

–

1,408,551

199,237

Reversal of interests expense

–

–

(81,096)

(11,471)

Restricted shares issued for management and employees

15,462,124

21,288,204

7,944,835

1,123,782

Loss (income) from investment in unconsolidated entity

–

959,905

(462,879)

(65,473)

Impairment loss of investment in unconsolidated entity

4,037,736

–

–

–

Restricted shares issued for services

3,050,896

845,781

33,927

4,799

Changes in operating assets and liabilities:

Notes receivable

2,116,998

922,282

(1,107,205)

(156,612)

Trade accounts receivable

11,972,175

(40,461,376)

18,428,088

2,606,619

Trade accounts receivable-related party

–

(3,409,912)

–

–

Inventories

(5,012,984)

(1,197,529)

(1,124,935)

(159,120)

Other receivable

(1,717,096)

(928,882)

(206,146)

(29,159)

Purchase advance

(296,903)

5,784,669

1,210,309

171,196

Contract assets

(127,325)

7,554,745

(26,938,013)

(3,810,332)

Prepaid expense

318,759

316,845

(5,457)

(772)

Prepaid expense – related parties

–

(217,600)

217,600

30,779

Operating lease liabilities

–

–

(1,419,402)

(200,772)

Trade accounts payable

(2,706,304)

(400,034)

8,205,660

1,160,675

Other payables

(179,507)

(861,620)

(23,600)

(3,338)

Other payables-related parties

(102,563)

(920,584)

2,207,445

312,239

Deferred revenue

(1,174,585)

–

–

–

Advance from customers

27,756

(37,856)

3,366,033

476,119

Accrued payroll and employees’ welfare

140,828

784,095

533,109

75,407

Accrued expenses

–

–

9,425

1,333

Taxes payable

(269,358)

1,748,934

(1,085,213)

(153,501)

Net cash used in operating activities

(19,569,820)

(32,212,172)

(5,230,676)

(739,873)

Cash flows from investing activities:

Investment in unconsolidated entity

(4,037,736)

(4,205,080)

–

–

Purchases of property and equipment

(1,503,410)

(1,735,956)

(85,974)

(12,161)

Proceeds from disposal of equipment

32,000

–

900

127

Payments for land use right

(1,361,969)

–

–

–

Repayments from loans to third parties

435,250

1,000,000

11,239,623

1,589,824

Payments made for loans to third parties

(1,960,000)

(4,000,000)

(9,480,000)

(1,340,928)

Payments and prepayments for construction in progress

(9,157,103)

(4,606,823)

(3,782,912)

(535,086)

Net cash used in investing activities

(17,552,968)

(13,547,859)

(2,108,363)

(298,224)

Cash flows from financing activities:

Proceeds from short-term bank loans

45,000

2,500,000

9,520,000

1,346,586

Repayments of short-term bank loans

(45,000)

–

(2,500,000)

(353,620)

Proceeds from short-term borrowings

4,600,000

1,081,096

200,000

28,290

Repayments of short-term borrowings

(4,900,000)

–

(1,000,000)

(141,448)

Proceeds from short-term borrowings-related parties

20,188,318

5,000,000

17,415,000

2,463,319

Repayments of short-term borrowings-related parties

(21,332,036)

(5,000,000)

(16,195,000)

(2,290,753)

Proceeds from long-term borrowings-related party

10,000,000

–

–

–

Repayments of long-term borrowings-related party

(371,975)

(684,191)

(747,630)

(105,751)

Proceeds from sale of common stock, net of issuance costs

65,004,531

–

26,141,051

3,697,603

Refund of capital contribution by a non-controlling
shareholder

–

(200,000)

–

–

Capital contribution by non-controlling shareholders

3,700,000

850,000

405,000

57,286

Net cash provided by financing activities

76,888,838

3,546,905

33,238,421

4,701,512

Effect of exchange rate fluctuation on cash

1,765,249

1,393,873

(84,203)

(11,906)

Net (decrease) increase in cash

41,531,299

(40,819,253)

25,815,179

3,651,509

Cash at beginning of year

3,809,279

45,340,578

4,521,325

639,533

Cash at end of year

¥

45,340,578

¥

4,521,325

¥

30,336,504

$

4,291,042

Supplemental cash flow information

Cash paid during the year for interest

¥

868,042

¥

1,542,381

¥

1,400,462

$

198,093

Cash paid (received) during the year for taxes

¥

(22,671)

¥

2,002

¥

282,322

$

39,934

Non-cash investing and financing activities

Shares issued to settle salary payable

¥

1,554,908

¥

–

¥

–

$

–

Issuance of common stock in exchange of shares of FGS,
net of issuance costs

¥

¥

21,433,796

¥

–

$

–

Investment payable in exchange of interest of FGS

¥

–

¥

6,400,000

¥

–

$

–

Right-of-use assets obtained in exchange for operating
lease obligations

¥

–

¥

–

¥

1,228,963

$

173,834

Inventories used for fixed assets

¥

–

¥

–

¥

409,735

$

57,956

Payable for construction in progress

¥

3,096,781

¥

5,694,980

¥

732,513

$

103,613

Receivable for disposal of property and equipment

¥

81,900

¥

–

¥

110,000

$

15,559

Payable for issuance cost of common stock

¥

–

¥

–

¥

374,696

$

53,000

The accompanying notes are an integral part of these consolidated financial statements.

* Retrospectively restated for effect of stock split on December 27, 2019.

 

 

Related Links :

http://www.recon.cn/

PR Newswire

Creaform Announces New and Complete R-Series(TM) suite of Automated Dimensional Quality Control Solutions

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The new MetraSCAN-R BLACK robot mounted scanner, additional models of the CUBE-R 3D scanning CMM and the new digital twin environment software will resolve many manufacturers’ CMM productivity issues

LEVIS, Quebec, Sept. 25, 2020 — Creaform, a worldwide leader in 3D measurement solutions, today announced the latest release in its R-Series™ lineup, including the new MetraSCAN-R BLACK|Elite™ as well as the addition of four different models in the CUBE-R 3D scanning measuring machine. Creaform also launched the brand-new VXscan-R™ digital twin environment software module, which completes the company’s turnkey automated quality control solution suite.

Discover the fastest and most versatile automated quality control solution in the market

  • Blazing-fast cycle times: Featuring 45 blue laser lines for a high-density scanning area that takes up to 1,800,000 measurements per second and generates live meshes
  • More accurate and repeatable results: High accuracy of 0.025 mm (0.001 in.) in shop floor conditions, regardless of instabilities, vibrations and thermal variations
  • High resolution: A measurement resolution of 0.025 mm (0.0009 in) that generates highly detailed scans regardless of the surface, trim, geometric feature or type of sheet metal
  • New digital twin environment software: VXscan-R enables users of all levels to easily and quickly program robot paths and optimize the line of sight of the robotic system
  • Maximum versatility: Captures highly reliable 3D measurement data on shiny surfaces, objects with variations in reflectivity, different part sizes, and a wide variety of surface geometries
  • Configurable and customizable portfolio: The CUBE-R, which is offered in 16 configurations, and the MetraSCAN-R BLACK|Elite can be integrated into a custom measuring cell built according to client’s specific needs. Options include different types of safety enclosures, payloads and asset protection configurations.
  • Operational simplicity: Creaform’s automated quality control solutions can be used by professionals who have little metrology knowledge. The MetraSCAN-R BLACK|Elite is compatible with major metrology software, enabling seamless integration within any type of production workflow.

"Manufacturers need to achieve fast, accurate and repeatable output – now more than ever before. With Creaform’s automated quality control solutions, manufacturers can increase their productivity," explains Jerome-Alexandre Lavoie, Product Manager at Creaform. "By detecting and addressing quality issues faster based on statistical analyses, corrective measures can be more proactively implemented to mitigate total quality costs (TQC) and unprofitable recalls."

Webcasts of the products launch will take place on September 25, 2020, at several times. Visit the webcasts section to get all the details.

About Creaform

Creaform develops, manufactures, and sells 3D portable and automated measurement technologies and specializes in engineering services. The company offers innovative solutions for applications such as 3D scanning, reverse engineering, quality control, non-destructive testing, product development, and numerical simulation (FEA/CFD). Its products and services cater to a variety of industries, including automotive, aerospace, consumer products, heavy industries, healthcare, manufacturing, oil and gas, power generation, research and education.

With headquarters and manufacturing operations in Levis, Quebec, Creaform operates innovation centers in Levis as well as Grenoble, France, with direct sales operations in Canada, USA, Mexico, Brazil, France, Germany, Italy, Spain, China, Japan, Korea, Thailand and Singapore. Creaform is part of AMETEK Ultra Precision Technologies, a division of AMETEK Inc., which a leading global manufacturer of electronic instruments and electromechanical devices, with annual sales of approximately $5 billion.

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PR Newswire

Picosun’s ALD technology boosts UVC LED performance

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ESPOO, Finland, Sept. 24, 2020 — Picosun Group, the leading supplier of AGILE ALD® (Atomic Layer Deposition) thin film coating technology, reports excellent results in UVC (ultraviolet-C) LED performance, achieved with the company’s ALD solutions.

Excellent reliability and lifetime improvements of UVC LEDs have been obtained at Picosun’s customer and collaboration partner site, National Chiao Tung University (NCTU), Taiwan, using passivation and barrier films deposited with PICOSUN® ALD equipment(*). ALD passivation layer could potentially replace the expensive hermetic seal package of the LEDs and thus lower the costs of the final device.

"We have used Picosun’s ALD technology already for years with great success. Our PICOSUN® ALD equipment yields superior quality films which has helped us to achieve several breakthroughs in our LED research. Picosun has local presence in Taiwan and we appreciate the prompt response of their customer support if we ever have any issues. At the phase when R&D results are to be ramped up to industrial-level production, the scalability of Picosun’s ALD technology is a huge benefit," comments Professor Hao-Chung Kuo from NCTU.

In order to reach maximum light output and long operating lifetime, LED chips require surface passivation to eliminate parasitic currents caused by traps and defects. Also barrier coating is typically needed as LED materials are sensitive to moisture. ALD is an ideal technique to manufacture both the passivation and barrier films – and when the LED size diminishes to micrometer dimensions, the only coating method capable of producing high enough quality films on the required minuscule scale. Ultra-thin, pinhole-free ALD films do not suppress the LED light intensity and they provide reliable protection against ambient conditions, whereas their superior conformality ensures no thickness variations between the facets of the LED chip. Thickness variations, typical side effect of other coating methods, can potentially lead to uneven distribution of film stress or thermal expansion behavior and risk physical damage of the chip.

Short-wavelength UVC radiation destroys bacteria and viruses so UVC LED technology is particularly topical now during the still ongoing COVID-19 pandemic. Small, lightweight LEDs enable versatile design of portable, compact disinfecting equipment, they consume less power than other UVC sources, they are durable, and they pose no risk of hazardous material leaks such as e.g. mercury lamps.

"We are happy of the achievements of Professor Kuo’s group at NCTU, and how Picosun’s ALD technology has helped them to achieve their goals in UVC LED development. Our long-term collaboration and networking with both the academia and prominent industries in this field gives us the perfect synergy advantage to facilitate implementation of these solutions in industrial manufacturing," says Mr. Edwin Wu, CEO of Picosun Asia Pte. Ltd.

(*) UVC LED with 50 nm ALD Al2O3 passivation and normal LED packaging (no hermetic seal) maintained 80% of its original efficiency even after 500 hours environmental test at 85% humidity and 85 oC temperature.

Picosun provides the most advanced AGILE ALD® (Atomic Layer Deposition) thin film coating solutions for global industries. Picosun’s ALD solutions enable technological leap into the future, with turn-key production processes and unmatched, pioneering expertise in the field – dating back to the invention of the technology itself. Today, PICOSUN® ALD equipment are in daily manufacturing use in numerous leading industries around the world. Picosun is based in Finland, with subsidiaries in Germany, USA, Singapore, Taiwan, China, Korea and Japan, offices in India and France, and a world-wide sales and support network. Visit www.picosun.com.

More information:

Mr. Edwin Wu
CEO, Picosun Asia Pte. Ltd.
Tel: +358 40 480 3449
Email: info@picosun.com
Web: www.picosun.com 

CONTACT:

Minna Toivola
D.Sc., Marketing Manager, Picosun Oy
Email: minna.toivola@picosun.com
Tel: +358 40 758 8748

 

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/picosun-oy/r/picosun-s-ald-technology-boosts-uvc-led-performance,c3201590

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https://mb.cision.com/Main/16058/3201590/1309927.pdf

Picosun’s ALD technology boosts UVC LED performance
PR Newswire

HARTING Technology Group has been shaping the future for 75 years

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Innovative products and solutions for Industry 4.0

ESPELKAMP, Germany, Aug. 28, 2020 — For 75 years now, the HARTING Technology Group has been driving technological change. The vision formulated in 1996 by the owner family "We want to shape the future with technologies for people" remains the guiding star of our entrepreneurial activities. September 1 marks the 75th anniversary of the founding day of the family company.

The manufacturer of everyday products such as waffle irons and irons has evolved into a worldwide leading supplier of industrial connection technology for the three lifelines of data, signal and power, a global player fielding innovative products and solutions focusing on Industry 4.0 and digitization.    

– Cross reference: Picture is available at AP Images (http://www.apimages.com) –

Wilhelm and Marie Harting opened the "Wilhelm Harting Mechanical Workshops" on September 1, 1945, in a repair workshop covering a good 100 square meters in Minden. From 1950 onwards, the company gradually moved to the neighbouring town Espelkamp. This was the period in which the success story of the Han® connector commenced. The Han® (HARTING standard), patented in 1956 and a registered trademark since 1957, became the standard, the epitome of the industrial connector. Thanks to the Han-Modular® series, customers are able to achieve optimal design solutions for the supply of machines, systems and plants.   

In October 2015, Dietmar Harting, son of Marie and Wilhelm Harting, handed over the reins as Chairman of the Board to his son Philip. Today, Philip Harting and his sister Maresa Harting-Hertz work closely with their parents Margrit and Dietmar Harting on the Board. The body includes three managers from outside the family.

Contact:

HARTING Stiftung & Co. KG
Detlef Sieverdingbeck
General Manager
Corporate Communications & Branding (CCB) 
Marienwerderstr. 3
32339 Espelkamp

Tel.: 05772 47-244
Fax:  05772 47-400
Detlef.Sieverdingbeck@HARTING.com
More information at www.HARTING.com

 

 

Related Links :

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PR Newswire

Recon Technology, Ltd. Announced Receipt of Official Hazardous Waste Operating Permit and New Order on Oily Sludge Treatment

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BEIJING, July 30, 2020 — Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company"), today announced that its 51% subsidiary, Gan Su BHD Environmental Technology Co., Ltd ("Gan Su BHD"), received the official 3-year hazardous waste operating permit on July 27, 2020 issued by the Environmental Protection Bureau of Gansu Province.

In addition, Gansu BHD has received a new order from the North China Branch of China Petroleum & Chemical Corporation ("Sinopec") to dispose 1,680 tons of oily sludge in Gansu Pingliang work zone. The value for this order is about RMB3.6 million ($0.5 million).

As previously disclosed by the Company, Gansu BHD purchased 50 year land use rights of a piece of 26,235 square meter land to construct a comprehensive disposal treatment facility to mainly serve the oilfield sewage treatment needs of Yumen Oilfield Company, China’s first petroleum production base and a PetroChina Co., Ltd. ("PetroChina") subsidiary. The construction completed in January 2020. The comprehensive disposal treatment project has an annual processing capacity of 60,000 tons of oily waste, and is one of the most advanced and the only such automated treatment facility located in Gansu Province so far. As of today, Gansu BHD also provides services and treatment solution to Sinopec’s Gansu branch.

Mr. Guangqiang Chen, co-founder and CTO of Recon, stated, "With the official permit, Gansu BHD can eventually provide large scale treatment service to clients. Affected by Covid-19, Gansu BHD’s operation was postponed temporally. By far, we have resumed its operation. We have transported about 5,000 tons of oily sludge to our factory disposal site and are ready to process it so it can meet the requirements of national environmental laws and regulations. We have also received the major part of the services fees for this project from the client, demonstrating the trust and the confidence from our clients on Gansu BHD’s treatment advantage and capacity. We believe Gansu BHD’s performance will be reflected in our financial results gradually from mid-2020 and we expect more development on this disposal business."

About Recon Technology, Ltd.                                       

Recon Technology, Ltd. (RCON) is China’s first non-state-owned oil and gas field service company listed on NASDAQ. Recon supplies China’s largest oil exploration companies with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measures for increasing petroleum extraction levels, reducing impurities and lowering production costs. Since 2017, the Company has expanded its business operations into other segments of the broader energy industry including electric power, coal chemicals, renewable energy and environmental protection in the energy and chemical industries. Through the years, Recon has taken leading positions on several market segments of the oil and gas field service industry. Recon also has developed stable long-term cooperation relationships with its major clients, and its products and service are well accepted by clients. For additional information please visit: www.recon.cn.

IR Contact:

Liu Jia, Chief Financial Officer
Recon Technology, Ltd.
Tel: +86-10-8494-5799
Email: info@recon.cn

Related Links :

http://www.recon.cn/

PR Newswire

Frost & Sullivan: Intelligent Pumps with Analytics Capabilities are Expected to be the New Norm

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A large portion of pump OEMs’ growth will be driven by services in the next 5 years

SANTA CLARA, California, July 3, 2020 — Frost & Sullivan’s recent analysis, 2025 Vision: Future of Pumps in a Connected World, finds that an average of 50% to 60% of pump original equipment manufacturers’ (OEMs’) revenue is expected to be generated from services-related activities, such as real-time monitoring and reliability services. This will result in the pump industry transitioning from a product-based to a service-based model in the wake of Industrial Internet of Things (IIoT) in this digitalization era. Global pump revenue is estimated to reach $46.92 billion by 2025 from approximately $38.34 billion in 2019.

Future of Pumps
Future of Pumps

For further information on this analysis, please visit: http://frost.ly/47z

“In the next five years, a large portion of pump OEMs’ growth will be driven by services that leverage analytics to provide insights on improving pump reliability and lifetime,” said Kiravani Emani, Industrial Automation & Process Control Research Analyst at Frost & Sullivan. “Additionally, service-based business models are expected to become more predominant; as a result, pump OEMs are expected to diversify their revenues and deliver standalone services to unlock new revenue streams.”

Emani added: “Intelligent pumps with analytics capabilities are expected to be the new norm as customers require meaningful data insights on pump performance as opposed to a device that will merely display data. Further, the water and wastewater, chemicals, refining, and oil and gas production industries are expected to embrace IoT-based pump solutions as these industries are actively working towards digitalization.”

The advent of IIoT has unlocked innovative and profitable business models for pump vendors. The need to shift from a traditional business model (hardware) to services is presenting tremendous growth prospects for pump OEMs, including:

  • Expanding service capabilities with a focus on building innovative business models to unlock revenue opportunities.
  • Offering high-quality, reliable and precise services for customers by investing in IIoT-based technologies such as cloud computing and edge analytics.
  • Adopting an integrated approach by leveraging the strength of channel partners to enhance the customer experience.
  • Reducing energy consumption and controlling operational costs to boost the demand for energy-efficient pumps.

2025 Vision: Future of Pumps in a Connected World is the latest addition to Frost & Sullivan’s Industrial Automation & Process Control research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

2025 Vision: Future of Pumps in a Connected World

K47A

Contact:
Jaylon Brinkley
E: jaylon.brinkley@frost.com
T: 210.247.2481

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PR Newswire

Recon Technology Announces Pricing of $2.1 million Registered Direct Offering

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BEIJING, June 26, 2020 — Recon Technology, Ltd. (NASDAQ: RCON) (“Recon” or the “Company”) announced today it has entered into a securities purchase agreement with certain accredited investors on June 26, 2020 to purchase $2.1 million worth of its ordinary shares in a registered direct offering and warrants to purchase ordinary shares in a concurrent private placement.

Under the terms of the securities purchase agreement, the Company has agreed to sell 1.68 million ordinary shares. In a concurrent private placement, the Company has agreed to issue unregistered warrants to purchase up to 1.68 million ordinary shares. The warrants will be exercisable immediately upon the date of issuance and have an exercise price of $1.25. The warrants will expire 5.5 years from the date of issuance. The purchase price for one ordinary share and a corresponding warrant will be $1.25. In addition, the initial exercise price for previously issued unregistered warrants to purchase 911,112 ordinary shares has decreased from $2.25 per share to $1.25 per share. The gross proceeds to the Company from this registered direct offering and concurrent private placement are estimated to be $2.1 million before deducting the placement agent’s fees and other estimated offering expenses, assuming there is no exercise of any of the warrants. The registered direct offering and concurrent private placement are expected to close on or about June 30, 2020, subject to the satisfaction of customary closing conditions.

Maxim Group LLC (“Maxim”) is acting as sole placement agent in connection with this offering.

The Company intends to use the net proceeds from this offering for general corporate purposes.

The securities described above are being offered by the Company pursuant to a shelf registration statement on Form F-3 filed with the Securities and Exchange Commission (SEC) dated November 13, 2019, and declared effective on November 26, 2019. A prospectus supplement related to the offering will be, filed with the SEC and available on the SEC’s website at http://www.sec.gov . Copies of the prospectus supplements relating to the offering may be obtained, when available, by contacting: Maxim Group LLC, 405 Lexington Avenue, 2nd Floor, New York, NY 10174, by telephone: at (212) 895-3500.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.

About Recon Technology, Ltd.

Recon Technology, Ltd. (RCON) is China’s first non-state-owned oil and gas field service company listed on NASDAQ. Recon supplies China’s largest oil exploration companies with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measures for increasing petroleum extraction levels, reducing impurities and lowering production costs. Since 2017, the Company has expanded its business operations into other segments of the broader energy industry including electric power, coal chemicals, renewable energy and environmental protection in the energy and chemical industries. Through the years, Recon has taken leading positions on several market segments of the oil and gas field service industry. Recon also has developed stable long-term cooperation relationships with its major clients, and its products and service are well accepted by clients. For additional information please visit: www.recon.cn .

Forward-Looking Statements

Certain statements made herein are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include timing of the proposed transaction; the business plans, objectives, expectations and intentions of the parties once the transaction is complete, and RCON’s estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, our actual results may differ materially from our expectations or projections. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: there is uncertainty about the spread of the COVID-19 virus and the impact it will have on RCON’s operations, the demand for the RCON’s products and services, global supply chains and economic activity in general. These and other risks and uncertainties are detailed in the other public filings with the Securities and Exchange Commission (the “SEC”) by RCON. 

Additional information concerning these and other factors that may impact our expectations and projections will be found in our periodic filings with the SEC, including our Annual Report on Form 20-F for the fiscal year ended June 30, 2019. RCON’s SEC filings are available publicly on the SEC’s website at  www.sec.gov . RCON disclaims any obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.

IR contact:
Liu Jia
Recon Technology, Ltd.
+86 (10) 84945799
info@recon.cn

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PR Newswire

Hublot Launches the BIG BANG e

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NYON, Switzerland, June 5, 2020 /PRNewswire/ — Hublot first released the Big Bang in 2005. Since then, this model has come to embody Swiss watchmaking in the third millennium.

In 2018, the first connected version of the Big Bang made its debut. And now, Hublot unveils the BIG BANG e.

The new incarnation of the brand’s Art of Fusion ethos: a fusion between tradition and innovation, cutting edge materials and the latest digital technology.

To mark the 2018 FIFA Football World Cup™ in Russia, Hublot presented their first connected watch model, the Big Bang Referee 2018 FIFA World Cup Russia™. Equipped with the latest technological developments then available for wearable technology, this formidable tool was used both by referees on the pitch and by football fans, as a virtual stadium so they could join in with the competition. Two years later, Hublot returns with a new model: the BIG BANG e, a connected watch equipped with the latest technology that adopts all the iconic Big Bang codes.

To stay up-to-date, follow: @Hublot #Hublot #BigBangE #HublotLovesArt

“Electronic watches were created in Switzerland using quartz in the 1970s. Fifty years later, we are continuing in the same innovative vein by producing a second smart watch which boasts an extremely high level of technological sophistication, whilst embodying all the aesthetic values, technical features and excellence that have ensured the reputation of our Big Bang collection. Ever more faithful to our “Art of Fusion” motto, we wanted the BIG BANG e to unite Hublot’s highly advanced technical materials with the very latest innovations from today’s digital world.” – Ricardo Guadalupe, CEO of HUBLOT

Full of sophistication and advanced technology, this piece fits in perfectly with Hublot’s watchmaking tradition. All the codes that have helped build the brand’s reputation thus far can be recognised instantly, by enthusiasts and the public alike.  A good pedigree always shines through! Its case is cut from materials such as black ceramic or titanium in a “sandwich” construction, an innovative style invented by Hublot in 2005. Extremely complex, it comprises 42 components, 27 of which are for the K Module alone, the “cage” which houses the digital heart of the watch. The design of the screws and pushers, the scratchproof sapphire crystal, and its rubber strap – with deployant buckle invented by Hublot in 1980 for the Classic model and the patented One Click system for easy interchangeability –  leave no-one in doubt: element by element, it is clear that this is a true Big Bang! 

The BIG BANG e is available in a 42 mm case, made from a choice of titanium or ceramic. The hour numerals are metallised underneath the scratchproof sapphire crystal, which is covered with an AMOLED high definition touchscreen. Just like a mechanical version of the Big Bang, its rotary crown with integrated pusher is used to activate the controls for its electronic module. Developed in partnership with other brands within the LVMH Group, the watch is adapted and perfected to meet Hublot’s requirements.

Transferring their traditional expertise into this new digital environment, the designers in Nyon have developed new watch functionalities. Apart from the “Time Only” analogue function, the BIG BANG e features exclusive interpretations of traditional watch complications, such as a Perpetual Calendar with an immaculately precise moon phase or a second GMT time zone, which presents the earth in a very realistic way. These functionalities have been revisited and enhanced to take advantage of the possibilities offered by the digital world. Despite this built-in technology, Hublot guarantees the watch is water-resistant to a depth of 30 meters.

Powered with Wear OS by Google™, the BIG BANG e enables customization to the smartwatch experience. The wearer can access apps on Google Play, get answers on the go with Google Assistant and make fast simple payments with Google Pay. For a more personal experience, easily swipe to helpful information and stay up to date with notifications and messages. In addition, dials specifically created by the talented Hublot ambassadors and Friends of the Brand will be gradually unveiled.

Available as soon as the BIG BANG e is released, the first edition is part of the #HublotLovesArt movement: a series of eight dials stemming from the imagination of storytelling artist Marc Ferrero. Every three hours, the dial changes colour, meaning eight creations are displayed in sequence over a 24-hour period. Each of these is based on a specific colour: Happy Yellow, Magic Blue, Orange Dynamite, All White, Lucky Green, Magic Red, Rainbow Spirit and Black Magic. And that is not all. Every full hour is marked with the appearance of an animation that lasts five seconds. A very #HublotLovesArt way of adding a touch of colour and rhythm to different moments throughout the day!

The BIG BANG e will be produced in two different editions: one in titanium and one in black ceramic. For the first time in Hublot’s history, this watch will be sold online on the brand’s website as well as on the Wechat network in China. It will then be available to purchase in boutiques and the traditional network.

Google, Google Play, Wear OS by Google, Google Pay and other marks are trademarks of Google LLC. 

BIG BANG e titanium
BIG BANG e titanium
BIG BANG e ceramic
BIG BANG e ceramic

 

Video: https://www.youtube.com/watch?v=V6Y1fMHJrI8  
Photo: https://techent.tv/wp-content/uploads/2020/06/hublot-launches-the-big-bang-e-1.jpg  
Photo: https://techent.tv/wp-content/uploads/2020/06/hublot-launches-the-big-bang-e-2.jpg  
Logo: https://techent.tv/wp-content/uploads/2020/06/hublot-launches-the-big-bang-e.jpg