BEIJING, June 30, 2021 /PRNewswire/ -- Recon Technology, Ltd (NASDAQ: RCON) ("Recon" or the "Company") today announced that its subsidiary Future Gas Station (Beijing) Technology Company Limited ("FGS") and An Hui Gao Deng Wei Xing Technology Ltd ("Gao Deng"), signed a strategic cooperation agreement ("Agreement"). According to the Agreement, the parties establish strategic cooperation on refueling services, electronic fuel coupon sales, and development and issuance of electronic fuel cards. The cooperation will be based on the online refueling channel FGS developed for the China National Petroleum Corporation ("CNPC") and Gao Geng's client base and the electronic toll collection ("ETC") payment scenario, with the purpose to provide a more convenient refueling experience for vehicle owners and maintain more long-term loyal users of CNPC gas stations.
Gao Deng is a fully owned subsidiary of Shen Zhen Gao Deng Computer Technology Co., Ltd ("Gao Deng Technology"), and the largest shareholder of the latter is Shenzhen Tencent computer system Co., Ltd ("Tencent"). The major product of Gao Deng is a software known as "ETC Assistant App", which is the first product in China to realize the closed loop of online application for ETC for buses. It binds WeChat payment with a complete set of solutions for password-free payment after passing tolls, issuance of trip tickets and electronic invoices based on the open capacity of Tencent's technologies, combining WeChat payment, WeChat applet, Tencent cloud, Tencent YouTu and Tencent billing, etc. According to Gao Deng, its ETC Assistant App has an average daily visit of millions of users, with the highest daily application volume exceeding 100,000. It is an important channel for online issuance of ETC cards in China. By the end of 2019, ETC Assistant has a coverage of 35 million ETC vehicle owners, accounting for about 20% of the total number of ETC vehicle owners in China.
Management Comments
Mr. Song Yang, a founder and the CEO of FGS, said, "We are very pleased to work with Gao Deng to provide more convenient service experiences for vehicle owners based on the ETC refueling scenario, and help Gao Deng improve its ETC service ecology and its smart travel business. Through our solution, Gao Deng can further optimize its operation process of ETC refueling payment process, and reduce the preliminary cost investment of ETC marketing. With the significant increase of ETC penetration rate in China, the usage of ETC card has started to gradually extend from a tolling scenario to car consumption scenarios such as parking, refueling, car washing and insurance. We choose to cooperate with Gao Deng mainly because it carries the strategic role in Gao Deng Technology and Tencent Group's business development plan of smart travel and auto service market. We hope to establish effective cooperation with Gao Deng based on refueling with ETC payment as the core service. At the same time, we are also pleased to prompt CNPC gas stations and their service resources to third parties through the means of technical links to improve their resource utilization and operational efficiency."
Mr. Song Yang added, "We have been improving our business model to increase our competitive advantage in the refueling and energy services industry, and we are now able to link gas stations with all end users of gasoline and diesel in an efficient and senseless way. We have developed a comprehensive solution to quickly and effectively prompt CNPC's services and resources to logistics companies, fleets, and platform companies that want to provide their customers with convenient and affordable refueling options. In the future, we will continue to build on our innovative solutions to deliver better refueling experiences and management tools to more companies and customers in more industries."
About Future Gas Station (Beijing) Technology, Ltd. ("FGS")
Established in January 2016, FGS is a subsidiary of Recon and a service company focusing on providing new technical applications and data operations to gas stations of oil companies such as CNPC. With its DT Refuel mobile application and related mini programs embedded into WeChat and Alipay, two mobile applications widely used in China, FGS provides solutions to gas stations to improve their operations and their customers' experience. FGS aims to facilitate the digital transformation of gas stations through integration of internet technique and algorithms, and to help transform gas stations into comprehensive service providers.
About Recon Technology, Ltd ("RCON")
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: http://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 establish successfully cooperation with Gao Geng; 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.
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