BEIJING, July 8, 2019 /PRNewswire/ -- 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 the Company's 43%-owned subsidiary, Future Gas Station (Beijing) Technology, Ltd. ("FGS"), has entered into a deep cooperation agreement for smart gas stations (the "Agreement") with Zhejiang sales branch of PetroChina Co. Ltd. ("Zhejiang CNPC") and Alipay (Hangzhou) Information Technology Co., Ltd ("Alipay") to cooperate on a smart gas station project (the "Project"). The Agreement was signed on June 6, 2019 and is effective for one year.
Pursuant to the Agreement, all the parties plan to cooperate on the Project by basing on the gas stations of CNPC in Zhejiang, combining the gas station resources of Zhejiang CNPC, the software, the hardware and the e-voucher capabilities of FGS and the digital technology and marketing capabilities of Ant Financial Services Group (operator of Alipay) to use on the gas stations. The purpose is to improve the refueling rates of the gas stations during peak hours, boost marketing efficiency, reduce marketing costs, and promote the Project to other provinces and gasoline companies across China. If necessary, the subsidiaries of the parties will sign another specific cooperation agreement.
Management Commentary
Mr. Shenping Yin, co-founder and CEO of Recon stated, "We are pleased to announce this cooperation agreement with Alipay and Zhejiang CNPC as we closely align our objectives with the national internet plus strategy for building smart cities. We hope that these efforts can help highlight FGS' cutting age operational and technological capabilities as we work hard to promote the viability of smart gas stations."
Mr. Yang Song, founder of FGS stated, "We have been serving Zhejiang CNPC and cooperating with Alipay for a year. We are so inspired by the Agreement as it is the best return for our persistence and hard work exploring effective smart gas station solutions. So far, our DT Refuel application has more than 2 million users in Zhejiang Province, our daily Gross Merchandise Volume ("GMV") in Zhejiang Province has been above RMB 5 million from June 2019 and our accumulated GMV in Zhejiang Province since our operation has been above RMB 1 billion. We have also earned a net profit. Our prepaid refueling functionality under which a customer can enter a monetary amount that he/she would like to refuel in our DT Refuel application or authorized platform, has been fully acknowledged by CNPC and it staff for its role reducing labor intensity and improving work efficiency and the customer experience. We will actively promote our service and application in other provinces in China and gas stations beyond CNPC through cooperation with Alipay to set up the digital basis for gas stations in China. We will also explore a possible way to establish a '5 km consumption circle centered around gas stations' to better serve the consumers and to improve our business model."
About Future Gas Station (Beijing) Technology, Ltd.
Established in January 2016, FGS is a service company focusing on providing new technical applications and data operations to gas stations of oil companies such as PetroChina Co., Ltd. With its DT Refuel mobile application, FGS provides solutions to gas stations to improve their operations and their customers' experience. FGS aims to increase the overall income of gas stations through integration of internet technique and new retail E-Commerce platform, and to help transform gas stations into comprehensive service providers.
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, Sinopec (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:
In China:
Ms. Jia Liu
Chief Financial Officer
Recon Technology, Ltd.
Phone: +86 (10) 8494-5799
Email: info@recon.cn
In the United States:
Ms. Tina Xiao
President
Ascent Investor Relations LLC
Phone: +1-917-609-0333
Email: tina.xiao@ascent-ir.com
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