BEIJING, Feb. 14, 2019- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, environmental protection, electric power and coal chemical industries, today announced that the Company's 75% subsidiary Qing Hai BHD New Energy Technology Co., Ltd. ("Qinghai BHD") has achieved a long-term vote of confidence in its energy management contract ("EMC") services through its 10-year contract with Qinghai Jiajie Property Management Co., Ltd. ("Jiajie"), a local property management company in Qinghai province. The new services are helping Jiajie save about RMB 13,000 (approximately USD1,925) in monthly gas fees.
Qinghai BHD signed a contract (the "Contract") with Jiajie on August 15, 2018. Pursuant to the Contract, Qinghai BHD agreed to provide Jiajie with energy-saving services including energy-saving furnace equipment implementation planning, energy-saving equipment production, installation and commissioning, and energy-saving equipment maintenance during the project operation. The heating period is from October 15 to April 15 of each year during the term of the contract. Under the Contract, Qinghai BHD is entitled to receive 80% of the saved gas fees for 10 years.
Mr. Guangqiang Chen, CTO of Recon, stated, "This contract marks our entry into EMC services, and we are pleased with our strong start. Our extensive industry experience has enabled us to provide cost-effective technology as we optimize the usage of energy solutions. Our most recent updates indicate that the cost saving to Jiajie has been about RMB 13,000 per month since we began running the project in November 2018, while Qinghai BHD benefits from 80% of the total saving, or RMB 10,400 per month. Total investment for this contract was about RMB200 thousand, and our benefit from the overall contract period is expected to be about RMB 600,000, which is three times our investment. With this sample project, we expect it will be more convincing and convenient for us to get new customers. We're confident to achieve about 50 more contracts for year 2019."
About Recon Technology, Ltd.
Recon Technology, Ltd. (NASDAQ: RCON) 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 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.
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, 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; the results of cooperation between parties to cooperation agreements; 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. Jia Liu
Chief Financial Officer
Recon Technology, Ltd.
Phone: +86 (10) 8494-5799
In the United States:
Ms. Tina Xiao
Ascent Investor Relations LLC