BEIJING, Sept. 28, 2016 /PRNewswire/ -- Recon Technology,
Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading
independent oilfield services provider operating primarily in
China, today announced its
financial results for fiscal year ended June
30, 2016.
Fiscal Year 2016 Highlights:
- Revenues were approximately RMB42.7
million ($6.4 million) for the
year ended June 30, 2016, a decrease
of 17.1% from RMB51.5 million from
the previous fiscal year.
- During fiscal year 2016, the Company expanded the new market of
oilfield waste water treatment, with revenue of RMB2.3 million.
- Gross profit was approximately RMB7.2
million ($1.1 million) for the
year ended June 30, 2016, compared to
approximately RMB10.1 million for the
same period in 2015.
- Operating loss was RMB39.9
million ($6.0 million) for
FY2016, compared to operating loss of RMB35.5 million for FY2015.
- Net loss attributable to Recon for FY2016 was RMB40.9 million ($6.2
million), or RMB7.23
($1.09) per diluted share, compared
to net loss attributable to Recon of RMB31.5
million, or RMB6.45 per
diluted share, for FY2015.
Although total revenue for the year ended June 30, 2016 decreased RMB8.8 million or 17.1% from the previous fiscal
year, our service business increased 1,040% to RMB1.2 million from fiscal year of 2015 and we
expanded the new market of oilfield waste water treatment in fiscal
year 2016.
Mr. Shenping Yin, Chairman and
CEO of Recon stated, "We are facing a tough economic environment,
however we expect to expand to new markets and develop more
opportunities in the following year to better prepare for the
eventual recovery of the oil and gas industry."
FY2016 Financial Results
Revenues
|
|
2015
|
|
2016
|
|
|
%
|
|
(thousands)
|
|
RMB
|
|
RMB
|
|
|
Change
|
|
Revenues
|
|
|
51,513
|
|
|
42,728
|
|
|
-17.1%
|
Hardware and
software
|
|
|
48,981
|
|
|
41,544
|
|
|
-15.2%
|
Service
|
|
|
104
|
|
|
1,183
|
|
|
1040.3%
|
Hardware and software
- related parties
|
|
|
2,428
|
|
|
-
|
|
|
-100%
|
Gross
margin
|
|
|
19.6%
|
|
|
17.0%
|
|
|
-2.6%
|
Operating (loss)
margin
|
|
|
-68.9%
|
|
|
-93.4%
|
|
|
24.5%
|
Net income (loss)
attributable to RCON
|
|
|
-31,456
|
|
|
-40,883
|
|
|
29.97%
|
Diluted earnings
(loss) per share
|
|
|
-6.45
|
|
|
-7.23
|
|
|
12.09%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues for the year ended June
30, 2016 were approximately RMB42.7
million ($6.4 million), a
decrease of approximately RMB8.8
million or 17.1% from RMB51.5
million for the year ended June 30,
2015. Revenues from non-related party hardware and software
sales decreased 15.2% to RMB41.5
million mainly caused by weak equipment requirements for
furnaces for the first half of fiscal year 2016. There was no
revenue or cost of hardware and software from related parties since
the company developed business directly with oilfield during 2016.
Revenues from service increased by RMB1.1
million, or 1040.3%, to RMB1.18
million for the twelve months ended June 30, 2016, compared to RMB0.1 million for the same period of last fiscal
year.
Gross profit and gross margin
Gross profit decreased to approximately RMB7.2 million ($1.1
million) for the year ended June 30,
2016 from approximately RMB10.1
million for the same period in 2015. Gross margin was 17.0%
for the year ended June 30, 2016,
compared to 19.6% for last fiscal year.
Operating income (loss) and operating (loss) margin
Selling and distribution expenses decreased approximately
RMB5.7 million to RMB5.6 million for
the year ended June 30, 2016 compared
to the same period in 2015. General and administrative expenses
decreased by 24.9% or RMB6.7 million
($1.0 million), from approximately
RMB26.9 million in the year ended
June 30, 2015 to approximately
RMB20.2 million ($3.0 million) in the same period of 2016.
Research and development expenses increased from approximately
RMB4.2 million for the year ended
June 30, 2015 to approximately
RMB6.9 million ($1.0 million) for the same period of 2016. Total
operating expenses increased by RMB1.5
million, or 3.4%, to RMB47.2
million for the year ended June 30,
2016 from RMB45.6 million
for last fiscal year.
Operating loss was approximately RMB39.9
million ($6.0 million) for the
year ended June 30, 2016, compared to
a loss of RMB35.5 million for the
same period of 2015. Operating loss margin was 93.4% for the year
ended June 30, 2016, compared to
operating margin of 68.9% for last fiscal year.
Net income (loss)
Net loss was approximately RMB40.9
million ($6.2 million) for the
year ended June 30, 2016, an increase
of approximately RMB9.4 million
($1.4 million) from net loss of
RMB31.5 million for last fiscal
year.
Financial Position
As of June 30, 2016, we had cash
in the amount of approximately RMB1.8
million ($0.3 million),
compared to approximately RMB12.3
million at June 20, 2015.
Working capital as of June 30, 2016
was RMB44.5 million ($6.7 million) as compared to RMB72.4 million at June
30, 2015. Net cash used in operating activities was
RMB0.3 million ($0.04 million) for the year ended June 30, 2016, compared to RMB15.1 million for the last fiscal year. Net
cash used in investing activities was approximately RMB0.1 million ($18.2
thousand) for the year ended June 30,
2016, a decrease of approximately RMB1.6 million compared to last fiscal year. Net
cash used in financing activities amounted to RMB10.2 million ($1.5
million) for the year ended June 30,
2016, as compared to net cash provided by financing
activities of $11.1 million for the
same period ended June 30, 2015.
During the year ended June 30, 2016,
we repaid RMB16.8 million
($2.5 million) short-term borrowings
to two related parties and repaid RMB7.5
million ($1.1 million)
short-term bank loans, and we received RMB12.9 million ($1.9
million) from two related parties, received RMB0.5 million ($0.1
million) in short-term bank loans and received RMB0.5 million ($0.1
million) in short-term borrowings from one third-party.
Recent Development
On July 23, 2016, our board of
directors resolved not to proceed with the Company's plan to
acquire Qinghai Huayou Downhole Technology Co., Ltd., a PR
China limited liability company
("QHHY"), and, as a result, terminated the share purchase agreement
and related control agreements (together, the "Agreements") between
the Company, its wholly owned subsidiary Recon Hengda Technology
(Beijing) Co., Ltd., QHHY and
QHHY's shareholders.
As previously reported on our Form 8-K filed with the Securities
and Exchange Commission on December 7,
2015, pursuant to the Agreements, Recon BJ was to acquire
QHHY, a China-based oil field
service provider, in exchange for $3.60
million worth of the Company's ordinary shares and up to
$4.8 million in cash, subject to QHHY
achieving certain operating goals. The Board of Directors
determined that it would terminate the Agreements following the
completion of an audit of QHHY for the 2014 and 2015 fiscal years
and a review of the first two quarters of the 2016 fiscal year,
after which time the Company determined that QHHY had not met its
financial projections for fiscal 2015 and was not expected to
achieve its projections for fiscal 2016. The parties attempted to
renegotiate the terms of the acquisition, but were unable to reach
an agreement based on the decreased valuation of QHHY. The Company
faces no early termination penalties as a result of terminating the
Agreements.
About Recon
Recon Technology, Ltd. is China's first listed non-state owned oil and
gas field service company on Nasdaq (RCON). Recon supplies
China's largest oil exploration
companies, Sinopec 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 us at
www.recon.cn.
Company Contact
Jia Liu
Recon Technology, Ltd.
+86 (10) 84945799
info@recon.cn
RECON TECHNOLOGY,
LTD CONSOLIDATED BALANCE SHEETS
|
|
|
|
As of June
30,
|
|
|
As of June
30,
|
|
|
As of June
30,
|
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
ASSETS
|
|
RMB
|
|
|
RMB
|
|
|
U.S.
Dollars
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
|
12,344,929
|
|
|
|
1,817,620
|
|
|
$
|
273,560
|
|
Notes
receivable
|
|
|
4,205,530
|
|
|
|
4,660,177
|
|
|
|
701,377
|
|
Trade accounts
receivable, net
|
|
|
52,186,397
|
|
|
|
38,097,626
|
|
|
|
5,733,855
|
|
Trade accounts
receivable- related parties, net
|
|
|
4,769,800
|
|
|
|
-
|
|
|
|
-
|
|
Inventories,
net
|
|
|
10,845,007
|
|
|
|
6,313,070
|
|
|
|
950,144
|
|
Other receivables,
net
|
|
|
18,064,568
|
|
|
|
22,000,112
|
|
|
|
3,311,111
|
|
Other receivables-
related parties
|
|
|
91,021
|
|
|
|
-
|
|
|
|
-
|
|
Purchase advances,
net
|
|
|
18,622,538
|
|
|
|
1,323,305
|
|
|
|
199,163
|
|
Purchase advances-
related parties
|
|
|
394,034
|
|
|
|
-
|
|
|
|
-
|
|
Prepaid
expenses
|
|
|
826,314
|
|
|
|
110,310
|
|
|
|
16,602
|
|
Prepaid expenses -
related parties
|
|
|
420,000
|
|
|
|
-
|
|
|
|
-
|
|
Deferred tax
assets
|
|
|
1,742,098
|
|
|
|
-
|
|
|
|
-
|
|
Total current
assets
|
|
|
124,512,236
|
|
|
|
74,322,220
|
|
|
|
11,185,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
2,666,953
|
|
|
|
2,907,762
|
|
|
|
437,631
|
|
Long-term trade
accounts receivable, net
|
|
|
4,440,665
|
|
|
|
2,220,332
|
|
|
|
334,169
|
|
Long-term other
receivable
|
|
|
2,729,033
|
|
|
|
-
|
|
|
|
-
|
|
Total
Assets
|
|
|
134,348,887
|
|
|
|
79,450,314
|
|
|
$
|
11,957,612
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
|
7,000,000
|
|
|
|
-
|
|
|
$
|
-
|
|
Trade accounts
payable
|
|
|
13,627,088
|
|
|
|
7,540,430
|
|
|
|
1,134,867
|
|
Trade accounts
payable- related parties
|
|
|
3,528,705
|
|
|
|
-
|
|
|
|
-
|
|
Other
payables
|
|
|
2,103,057
|
|
|
|
2,972,192
|
|
|
|
447,328
|
|
Other payable-
related parties
|
|
|
4,309,702
|
|
|
|
3,680,244
|
|
|
|
553,892
|
|
Deferred
revenue
|
|
|
2,285,529
|
|
|
|
406,681
|
|
|
|
61,207
|
|
Advances from
customers
|
|
|
529,700
|
|
|
|
200,600
|
|
|
|
30,191
|
|
Accrued payroll and
employees' welfare
|
|
|
246,789
|
|
|
|
381,109
|
|
|
|
57,359
|
|
Accrued
expenses
|
|
|
199,166
|
|
|
|
261,348
|
|
|
|
39,334
|
|
Taxes
payable
|
|
|
1,153,216
|
|
|
|
755,880
|
|
|
|
113,763
|
|
Short-term
borrowings
|
|
|
-
|
|
|
|
530,000
|
|
|
|
79,767
|
|
Short-term borrowings
- related parties
|
|
|
16,916,905
|
|
|
|
12,941,848
|
|
|
|
1,947,803
|
|
Deferred tax
liability
|
|
|
180,186
|
|
|
|
180,186
|
|
|
|
27,119
|
|
Total current
liabilities
|
|
|
52,080,043
|
|
|
|
29,850,518
|
|
|
|
4,492,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, ($
0.0185 U.S. dollar par value, 100,000,000 shares authorized;
5,427,946 and 5,804,005 shares issued and outstanding as of June
30, 2015 and 2016, respectively)
|
|
|
697,217
|
|
|
|
741,467
|
|
|
|
111,594
|
|
Additional paid-in
capital
|
|
|
92,541,687
|
|
|
|
100,612,455
|
|
|
|
15,142,604
|
|
Statutory
reserve
|
|
|
4,148,929
|
|
|
|
4,148,929
|
|
|
|
624,432
|
|
Accumulated
deficits
|
|
|
(23,024,935)
|
|
|
|
(63,907,512)
|
|
|
|
(9,618,353)
|
|
Accumulated other
comprehensive loss
|
|
|
(317,551)
|
|
|
|
(219,040)
|
|
|
|
(32,966)
|
|
Total
shareholders' equity
|
|
|
74,045,347
|
|
|
|
41,376,299
|
|
|
|
6,227,311
|
|
Non-controlling
interest
|
|
|
8,223,497
|
|
|
|
8,223,497
|
|
|
|
1,237,671
|
|
Total
equity
|
|
|
82,268,844
|
|
|
|
49,599,796
|
|
|
|
7,464,982
|
|
Total Liabilities
and Equity
|
|
|
134,348,887
|
|
|
|
79,450,314
|
|
|
$
|
11,957,612
|
|
|
|
The accompanying
notes are an integral part of these consolidated financial
statements.
|
|
RECON TECHNOLOGY,
LTD
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
|
|
|
For the years
ended
|
|
|
|
June
30,
|
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware and
software
|
|
|
48,980,953
|
|
|
|
41,544,925
|
|
|
$
|
6,252,688
|
|
Service
|
|
|
103,774
|
|
|
|
1,183,352
|
|
|
|
178,100
|
|
Hardware and software
- related parties
|
|
|
2,428,173
|
|
|
|
-
|
|
|
|
-
|
|
Total
revenues
|
|
|
51,512,900
|
|
|
|
42,728,277
|
|
|
|
6,430,788
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware and
software
|
|
|
41,373,566
|
|
|
|
34,732,965
|
|
|
$
|
5,227,459
|
|
Service
|
|
|
-
|
|
|
|
748,429
|
|
|
|
112,642
|
|
Hardware and software
- related parties
|
|
|
27,161
|
|
|
|
-
|
|
|
|
-
|
|
Total cost of
revenues
|
|
|
41,400,727
|
|
|
|
35,481,394
|
|
|
|
5,340,101
|
|
Gross
profit
|
|
|
10,112,173
|
|
|
|
7,246,883
|
|
|
|
1,090,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
|
11,312,452
|
|
|
|
5,630,715
|
|
|
|
847,447
|
|
General and
administrative expenses
|
|
|
26,894,273
|
|
|
|
20,195,701
|
|
|
|
3,039,539
|
|
Provision for
doubtful accounts
|
|
|
3,252,868
|
|
|
|
14,475,074
|
|
|
|
2,178,560
|
|
Research and
development expenses
|
|
|
4,168,813
|
|
|
|
6,856,522
|
|
|
|
1,031,936
|
|
Operating
expenses
|
|
|
45,628,406
|
|
|
|
47,158,012
|
|
|
|
7,097,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(35,516,233)
|
|
|
|
(39,911,129)
|
|
|
|
(6,006,795)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
|
781,457
|
|
|
|
289,087
|
|
|
|
43,509
|
|
Interest
income
|
|
|
293,499
|
|
|
|
183,553
|
|
|
|
27,626
|
|
Interest
expense
|
|
|
(1,110,451)
|
|
|
|
(903,368)
|
|
|
|
(135,961)
|
|
Change in fair value
of warrants liability
|
|
|
4,034,272
|
|
|
|
-
|
|
|
|
-
|
|
Income (loss) from
foreign currency exchange
|
|
|
(19,190)
|
|
|
|
7,570
|
|
|
|
1,139
|
|
Loss from warrants
redemption
|
|
|
(2,496,375)
|
|
|
|
-
|
|
|
|
-
|
|
Other income
(expense)
|
|
|
24,558
|
|
|
|
(2,445)
|
|
|
|
(368)
|
|
Other income
(expense)
|
|
|
1,507,770
|
|
|
|
(425,603)
|
|
|
|
(64,055)
|
|
Loss before income
tax
|
|
|
(34,008,463)
|
|
|
|
(40,336,732)
|
|
|
|
(6,070,850)
|
|
Provision (benefit)
for income tax
|
|
|
(2,552,075)
|
|
|
|
545,845
|
|
|
|
82,152
|
|
Net
loss
|
|
|
(31,456,388)
|
|
|
|
(40,882,577)
|
|
|
|
(6,153,002)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(31,456,388)
|
|
|
|
(40,882,577)
|
|
|
|
(6,153,002)
|
|
Foreign currency
translation adjustment
|
|
|
(38,276)
|
|
|
|
98,511
|
|
|
|
14,826
|
|
Comprehensive
loss
|
|
|
(31,494,664)
|
|
|
|
(40,784,066)
|
|
|
|
(6,138,176)
|
|
Less: Comprehensive
loss attributable to non-controlling interest
|
|
|
(1,982)
|
|
|
|
-
|
|
|
|
-
|
|
Comprehensive loss
attributable to Recon Technology, Ltd
|
|
|
(31,492,682)
|
|
|
|
(40,784,066)
|
|
|
$
|
(6,138,176)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share - basic
|
|
|
(6.45)
|
|
|
|
(7.23)
|
|
|
$
|
(1.09)
|
|
Loss per common
share - diluted
|
|
|
(6.45)
|
|
|
|
(7.23)
|
|
|
$
|
(1.09)
|
|
Weighted - average
shares -basic
|
|
|
4,876,504
|
|
|
|
5,653,149
|
|
|
|
5,653,149
|
|
Weighted - average
shares -diluted
|
|
|
4,876,504
|
|
|
|
5,653,149
|
|
|
|
5,653,149
|
|
|
|
The accompanying
notes are an integral part of these consolidated financial
statements.
|
|
RECON TECHNOLOGY,
LTD
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
For the years
ended June 30,
|
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
|
|
RMB
|
|
|
RMB
|
|
|
U.S.
Dollars
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
(31,456,388)
|
|
|
|
(40,882,577)
|
|
|
$
|
(6,153,002)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
526,046
|
|
|
|
955,083
|
|
|
|
143,744
|
|
Gain from disposal
of equipment
|
|
|
(193,657)
|
|
|
|
(40,688)
|
|
|
|
(6,124)
|
|
Provision for
doubtful accounts
|
|
|
3,252,868
|
|
|
|
14,475,074
|
|
|
|
2,178,560
|
|
Provision for slow
moving inventories
|
|
|
7,700,836
|
|
|
|
2,428,288
|
|
|
|
365,468
|
|
Share based
compensation
|
|
|
3,123,417
|
|
|
|
5,691,308
|
|
|
|
856,566
|
|
Deferred tax
(benefit) provision
|
|
|
(532,136)
|
|
|
|
1,742,098
|
|
|
|
262,193
|
|
Change in fair value
of warrants liability
|
|
|
(4,034,272)
|
|
|
|
-
|
|
|
|
-
|
|
Restricted shares
issued for services
|
|
|
1,585,462
|
|
|
|
2,287,415
|
|
|
|
344,266
|
|
Loss from warrants
redemption
|
|
|
2,496,375
|
|
|
|
-
|
|
|
|
-
|
|
Income tax
benefit
|
|
|
(2,111,281)
|
|
|
|
(1,196,253)
|
|
|
|
(180,041)
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
|
(4,205,530)
|
|
|
|
(454,647)
|
|
|
|
(68,426)
|
|
Trade accounts
receivable
|
|
|
(3,245,218)
|
|
|
|
14,658,360
|
|
|
|
2,206,146
|
|
Trade accounts
receivable-related parties
|
|
|
4,315,755
|
|
|
|
1,090,453
|
|
|
|
164,118
|
|
Inventories
|
|
|
(4,209,241)
|
|
|
|
1,191,811
|
|
|
|
179,373
|
|
Other receivable,
net
|
|
|
2,481,328
|
|
|
|
(1,775,659)
|
|
|
|
(267,244)
|
|
Other
receivables-related parties, net
|
|
|
1,323,412
|
|
|
|
91,021
|
|
|
|
13,699
|
|
Purchase advance,
net
|
|
|
3,271,935
|
|
|
|
4,930,479
|
|
|
|
742,058
|
|
Purchase
advance-related parties, net
|
|
|
-
|
|
|
|
1,374,034
|
|
|
|
206,798
|
|
Prepaid
expense
|
|
|
1,808,350
|
|
|
|
716,004
|
|
|
|
107,762
|
|
Prepaid expense -
related parties, net
|
|
|
(190,000)
|
|
|
|
420,000
|
|
|
|
63,212
|
|
Trade accounts
payable
|
|
|
2,213,583
|
|
|
|
(9,615,363)
|
|
|
|
(1,447,153)
|
|
Trade accounts
payable-related parties
|
|
|
3,528,705
|
|
|
|
-
|
|
|
|
-
|
|
Other
payables
|
|
|
337,978
|
|
|
|
869,135
|
|
|
|
130,809
|
|
Other
payables-related parties
|
|
|
1,003,678
|
|
|
|
1,869,889
|
|
|
|
281,426
|
|
Deferred
revenue
|
|
|
(2,134,295)
|
|
|
|
(1,878,848)
|
|
|
|
(282,775)
|
|
Advances from
customers
|
|
|
(271,685)
|
|
|
|
(329,100)
|
|
|
|
(49,531)
|
|
Accrued payroll and
employees' welfare
|
|
|
(170,835)
|
|
|
|
134,320
|
|
|
|
20,216
|
|
Accrued
expenses
|
|
|
5,291
|
|
|
|
172,490
|
|
|
|
25,960
|
|
Taxes
payable
|
|
|
(1,322,818)
|
|
|
|
790,199
|
|
|
|
118,928
|
|
Net cash used in
operating activities
|
|
|
(15,102,337)
|
|
|
|
(285,674)
|
|
|
|
(42,994)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
|
(2,078,204)
|
|
|
|
(181,075)
|
|
|
|
(27,253)
|
|
Proceeds from
disposal of equipment
|
|
|
400,400
|
|
|
|
60,000
|
|
|
|
9,030
|
|
Net cash used in
investing activities
|
|
|
(1,677,804)
|
|
|
|
(121,075)
|
|
|
|
(18,223)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
short-term bank loans
|
|
|
7,000,000
|
|
|
|
500,000
|
|
|
|
75,252
|
|
Repayments of
short-term bank loans
|
|
|
(10,000,000)
|
|
|
|
(7,500,000)
|
|
|
|
(1,128,782)
|
|
Proceeds from
short-term borrowings
|
|
|
-
|
|
|
|
530,000
|
|
|
|
79,767
|
|
Proceeds from
short-term borrowings-related parties
|
|
|
18,250,000
|
|
|
|
12,895,400
|
|
|
|
1,940,813
|
|
Repayment of
short-term borrowings-related parties
|
|
|
(6,550,000)
|
|
|
|
(16,780,765)
|
|
|
|
(2,525,577)
|
|
Proceeds from sale of
common stock, net of issuance costs
|
|
|
2,392,027
|
|
|
|
171,919
|
|
|
|
25,874
|
|
Net cash provided
by (used in) financing activities
|
|
|
11,092,027
|
|
|
|
(10,183,446)
|
|
|
|
(1,532,653)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash and cash equivalents
|
|
|
(61,543)
|
|
|
|
62,886
|
|
|
|
9,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in
cash
|
|
|
(5,749,657)
|
|
|
|
(10,527,309)
|
|
|
|
(1,584,404)
|
|
Cash at beginning
of the year
|
|
|
18,094,586
|
|
|
|
12,344,929
|
|
|
|
1,857,964
|
|
Cash at end of the
year
|
|
|
12,344,929
|
|
|
|
1,817,620
|
|
|
$
|
273,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during
the period for interest
|
|
|
1,060,529
|
|
|
|
903,368
|
|
|
$
|
135,961
|
|
Cash paid during
the period for taxes
|
|
|
881,794
|
|
|
|
142,477
|
|
|
$
|
21,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common
stock to redeem warrants
|
|
|
3,462,438
|
|
|
|
-
|
|
|
|
-
|
|
AR and short-term
borrowings-related parties offset
|
|
|
-
|
|
|
|
200,000
|
|
|
|
30,101
|
|
Inventories used for
fixed assets
|
|
|
-
|
|
|
|
1,025,410
|
|
|
|
154,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these consolidated financial
statements.
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/recon-technology-reports-its-operation-results-for-fiscal-year-2016-300335464.html
SOURCE Recon Technology, Ltd.