NEW YORK, March 18, 2020 /PRNewswire/ -- Recon Technology,
Ltd. (Nasdaq: RCON) ("Recon" or the "Company"), today announced its
financial results for the first six months of fiscal year 2020.
First Six Months of Fiscal 2019 Financial:
- Total revenues for the six months ended December 31, 2019 decreased by 28.1% to
$4.4 million (RMB30.4 million).
- Total cost of revenues for the six months ended December 31, 2019 decreased by 31.8% to
$2.6 million (RMB18.4 million).
- Gross profit for the six months ended December 31, 2019 was $1.7
million (RMB12.0 million).
Gross profit margin for the six months ended December 31, 2019 was 39.4%, an increase of 3.4
percentage points compared to the six months ended December 31, 2018.
- Net loss attributable to Recon for the six months ended
December 31, 2019 was $1.0 million (RMB6.7
million), or $0.22
(RMB1.51) per basic and diluted
share, compared to RMB10.1 million,
or RMB2.72 per basic and diluted
share, for the six months ended December 31,
2018.
Management Commentary
Mr. Shenping Yin, co-founder and
CEO of Recon stated, "Ever since the year 2019, our management has
been focusing on cash management and operating risk control,
expanding our business structure from traditional oilfield service
to some other energy sectors with higher margin and opportunities.
As a result, for the six months ended December 31, 2019, the cash position and overall
operation results were improved, and the total loss was narrowed.
Besides, as our oily sludge treatment production was temporarily
postponed by late acceptance inspection, the revenue from oilfield
environmental protection was not recognized. We expect the
production will be enabled and revenue to be earned later this
year."
Mr. Yin continued, "Due to the coronavirus disease 2019
outbreak, our business has slowed down in the short term. We
believe the outbreak will affect our operation result from the
beginning of calendar year 2020 to date and in the whole fiscal
year 2020. However, we don't expect a significant impact on the
Company's operation and financial results in the long run."
First Six Months Fiscal 2020 Financial Results:
Revenue
Total revenues for the six months ended December 31, 2019 decreased by RMB11.9 million ($1.7
million) or 28.1%, to RMB30.4
million ($4.4 million)
compared to RMB42.3 million for the
six months ended December 31, 2018
mainly due to the decreased revenue from all three segments during
the six months ended December 31,
2019.
Revenue from automation product and software decreased by
RMB6.4 million ($0.9 million), or 22.0%, to RMB22.6 million ($3.2
million) for the six months ended December 31, 2019 from RMB29.0 million for the six months ended
December 31, 2018, as the Company
selected to take those orders with higher margin to optimize the
use of cash rather than accepting all orders.
Revenue from equipment and accessories decreased by RMB2.5 million ($0.4
million), or 24.3%, to RMB7.8
million ($1.1 million) for the
six months ended December 31, 2019
from RMB10.3 million for the six
months ended December 31, 2018 as a
result of less furnaces sold to commercial and general industry
markets.
Revenue from oilfield environmental protection projects
decreased by RMB3.0 million
($0.4 million), or 99.1%, to
RMB26,085 ($3,744) for the six months ended December 31, 2019 from RMB3.0 million for the six months ended
December 31, 2018. As of December 31, 2019, the Company won contracts of
over 1,708 tons of oily sludge treatment and collected the basic
materials. As of December 31, 2019,
the Company billed the customers RMB2.6
million ($0.4 million) in
total and RMB0.7 million
($0.1 million) was received and
recorded as advance from customer. The Company received
RMB1.9 million ($0.3 million) in January
2020. Affected by late acceptance inspection of Gansu production project, the Company is still
in the process of treating oil sludge collected, hence, revenue was
not recognized during the six months ended December 31, 2019. The Company expects this
revenue could be recognized and reflected in the financial data by
end of fiscal year 2020.
Cost and Margin
Total cost of revenues decreased by RMB8.6 million ($1.2
million), or 31.8%, to RMB18.4
million ($2.6 million) for the
six months ended December 31, 2019.
The decrease was mainly caused by decrease in cost of revenue from
all three segments during the six months ended December 31, 2019, which is in line with the
decrease in revenue.
Gross profit decreased by RMB3.3
million ($0.5 million), or
21.5%, to RMB12.0 million
($1.7 million) for the six months
ended December 31, 2019 from
RMB15.2 million from the six months
ended December 31, 2018. The gross
profit as a percentage of revenue increased to 39.4% for the six
months ended December 31, 2019 from
36.0% for the same period in 2018. While the gross profit margin of
automation production and software remained relatively stable with
a slight increase of 2.1%, gross profit margin of equipment and
accessories increased by 11.4% due to higher margin equipment sales
during the six months ended December 31,
2019 as the Company focused on higher margin business.
However, since the Company didn't launch the large-scale treatment
of oily sludge treatment, zero revenue was recognized and costs of
pilot testing was recorded, resulting to a negative margin of
oilfield environmental protection business. The Company believes
this situation would change as the Company began the official
treatment process in calendar year 2020.
Operating Expenses
Selling and distribution expenses decreased by RMB2.2 million ($0.3
million), or 45.8%, to RMB2.7
million ($0.4 million) for the
six months ended December 31, 2019
from RMB4.9 million for the six
months ended December 31, 2018. This
decrease was primarily due to the decrease in traveling expenses as
well as entertainment expenses as the Company tried to control the
operating expenditures during the six months ended December 31, 2019.
General and administrative expenses decreased by RMB5.5 million ($0.8
million), or 29.3%, to RMB13.4
million ($1.9 million) for the
six months ended December 31, 2019
from RMB18.9 million for the six
months ended December 31, 2018. The
decrease in general and administrative expenses was mainly due to
the decrease in stock-based compensation expense during the six
months ended December 31, 2019.
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 RMB1.5 million for the
six months ended December 31, 2018.
The increase in provision for doubtful accounts was mainly resulted
by additional provision made for long outstanding account
receivables. Management will continue to monitor account
receivables to maintain the provision at a lower risk level.
Research and development expenses increased from approximately
RMB1.7 million for the six months
ended December 31, 2018 to
RMB2.9 million ($0.4 million) for the same period of 2019. This
increase was primarily due to more research and development expense
spent on design of new automation platform systems.
Net Loss
Loss from operations was RMB7.0
million ($1.0 million) for the
six months ended December 31, 2019,
compared to a loss of RMB8.7 million
for the six months ended December 31,
2018. This RMB1.8 million
($0.3 million) decrease in loss from
operations was primary due to a decrease in general and
administrative expenses and selling and distribution expenses,
partially offset by decrease in gross profit as discussed
above.
Net loss was RMB7.0 million
($1.0 million) for the six months
ended December 31, 2019, a decrease
of RMB2.9 million ($0.4 million) from net loss of RMB9.9 million for the six months ended
December 31, 2018. Net loss
attributable to Recon for the six months ended December 31, 2018 was RMB10.1 million, or RMB2.72 per basic and diluted share, compared to
RMB6.7 million ($1.0 million), or RMB1.51 ($0.22) per
basic and diluted share for the six months ended December 31, 2019.
EBITDA
Adjusted EBITDA loss was RMB1.5
million ($0.2 million) for the
six months ended December 31, 2019,
compared to an adjusted EBITDA income of RMB0.9 million for the same period last year.
Please see the section titled "Non-GAAP Financial Measures" below
for a discussion of this metric, which the Company believes may be
informative for investors but is not a GAAP financial measure.
Financial Condition
As of December 31, 2019, the
Company had cash of RMB10.3 million
($1.5 million), compared to
RMB4.5 million as of June 30, 2019. As of December 31, 2019, the Company had working
capital of RMB51.4 million
($7.4 million) while as of
June 30, 2019, the Company had
working capital of RMB55.7
million.
Net cash provided by operating activities was RMB0.3 million ($0.04
million) for the six months ended December 31, 2019, compared to net cash used in
operating activities of approximately RMB27.0 million for the six months ended
December 31, 2018. Net cash provided
by investing activities was RMB3.7
million ($0.5 million) for the
six months ended December 31, 2019,
compared to net cash used in investing activities RMB8.5 million for the six months ended
December 31, 2018. Net cash provided
by financing activities was RMB1.9
million ($0.3 million) for the
six months ended December 31, 2019,
compared to net cash provided by financing activities of
RMB1.0 million for the six months
ended December 31, 2018.
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 RMB6.9680 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:
Dragon Gate Investment
Partners LLC
Tel: +1(646)-801-2803
Email: RCON@dgipl.com
RECON TECHNOLOGY,
LTD
|
CONDENSED BALANCE
SHEETS
|
(UNAUDITED)
|
|
|
|
As of
June 30
|
|
|
As of
December 31
|
|
|
As of
December 31
|
|
|
|
2019
|
|
|
2019
|
|
|
2019
|
|
|
|
RMB
|
|
|
RMB
|
|
|
U.S.
Dollars
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
¥
|
4,521,325
|
|
|
¥
|
10,325,219
|
|
|
$
|
1,481,806
|
|
Notes
receivable
|
|
|
3,073,680
|
|
|
|
4,060,506
|
|
|
|
582,736
|
|
Trade accounts
receivable, net
|
|
|
68,535,282
|
|
|
|
63,063,443
|
|
|
|
9,050,441
|
|
Trade accounts
receivable- related party, net
|
|
|
3,409,912
|
|
|
|
3,409,912
|
|
|
|
489,368
|
|
Inventories,
net
|
|
|
1,270,523
|
|
|
|
1,796,411
|
|
|
|
257,809
|
|
Other receivables,
net
|
|
|
5,665,593
|
|
|
|
4,784,811
|
|
|
|
686,684
|
|
Loans to third
parties
|
|
|
4,960,000
|
|
|
|
-
|
|
|
|
-
|
|
Purchase advances,
net
|
|
|
1,343,576
|
|
|
|
187,174
|
|
|
|
26,862
|
|
Contract assets,
net
|
|
|
4,633,940
|
|
|
|
14,604,897
|
|
|
|
2,095,996
|
|
Prepaid
expenses
|
|
|
192,837
|
|
|
|
75,920
|
|
|
|
10,896
|
|
Prepaid expenses -
related parties
|
|
|
217,600
|
|
|
|
-
|
|
|
|
-
|
|
Total current
assets
|
|
|
97,824,268
|
|
|
|
102,308,293
|
|
|
|
14,682,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
3,661,321
|
|
|
|
3,267,226
|
|
|
|
468,890
|
|
Construction in
progress
|
|
|
21,524,994
|
|
|
|
23,143,654
|
|
|
|
3,321,421
|
|
Land use right,
net
|
|
|
1,307,887
|
|
|
|
1,294,267
|
|
|
|
185,744
|
|
Investment in
unconsolidated entity
|
|
|
31,078,971
|
|
|
|
31,220,259
|
|
|
|
4,480,521
|
|
Long-term other
receivables, net
|
|
|
440,015
|
|
|
|
23,922
|
|
|
|
3,433
|
|
Prepayments for
construction in progress
|
|
|
1,144,098
|
|
|
|
1,059,404
|
|
|
|
152,039
|
|
Right of use
assets
|
|
|
-
|
|
|
|
532,491
|
|
|
|
76,420
|
|
Total
Assets
|
|
¥
|
156,981,554
|
|
|
¥
|
162,849,516
|
|
|
$
|
23,371,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank
loan
|
|
¥
|
2,500,000
|
|
|
¥
|
2,500,000
|
|
|
$
|
358,783
|
|
Trade accounts
payable
|
|
|
14,089,293
|
|
|
|
14,688,353
|
|
|
|
2,107,972
|
|
Other
payables
|
|
|
2,246,410
|
|
|
|
2,086,665
|
|
|
|
299,464
|
|
Other payable-
related parties
|
|
|
2,290,873
|
|
|
|
4,081,028
|
|
|
|
585,682
|
|
Advance from
customers
|
|
|
120,000
|
|
|
|
2,024,753
|
|
|
|
290,579
|
|
Accrued payroll and
employees' welfare
|
|
|
1,384,529
|
|
|
|
2,885,935
|
|
|
|
414,170
|
|
Investment
payable
|
|
|
6,400,000
|
|
|
|
6,400,000
|
|
|
|
918,485
|
|
Taxes
payable
|
|
|
2,180,847
|
|
|
|
2,831,702
|
|
|
|
406,387
|
|
Short-term
borrowings
|
|
|
1,081,096
|
|
|
|
-
|
|
|
|
-
|
|
Short-term borrowings
- related parties
|
|
|
9,010,525
|
|
|
|
11,931,310
|
|
|
|
1,712,301
|
|
Long-term borrowings
- related party - current portion
|
|
|
780,797
|
|
|
|
813,334
|
|
|
|
116,724
|
|
Operating lease
liabilities - current
|
|
|
-
|
|
|
|
640,491
|
|
|
|
91,919
|
|
Total Current
Liabilities
|
|
|
42,084,370
|
|
|
|
50,883,571
|
|
|
|
7,302,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings
- related party
|
|
|
8,196,204
|
|
|
|
7,796,782
|
|
|
|
1,118,942
|
|
Total
Liabilities
|
|
|
50,280,574
|
|
|
|
58,680,353
|
|
|
|
8,421,408
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, ($
0.0925 U.S. dollar par value,
20,000,000 shares authorized; 4,611,720 shares and
4,361,634 shares issued and outstanding as of
December 31, 2019 and June 30, 2019,
respectively)*
|
|
|
2,712,773
|
|
|
|
2,876,228
|
|
|
|
412,777
|
|
Additional paid-in
capital
|
|
|
250,624,798
|
|
|
|
254,552,363
|
|
|
|
36,531,641
|
|
Statutory
reserve
|
|
|
4,148,929
|
|
|
|
4,509,040
|
|
|
|
647,107
|
|
Accumulated
deficit
|
|
|
(164,780,885)
|
|
|
|
(171,842,193)
|
|
|
|
(24,661,634)
|
|
Accumulated other
comprehensive gain
|
|
|
2,909,936
|
|
|
|
2,919,546
|
|
|
|
418,994
|
|
Total
stockholders' equity
|
|
|
95,615,551
|
|
|
|
93,014,984
|
|
|
|
13,348,885
|
|
Non-controlling
interests
|
|
|
11,085,429
|
|
|
|
11,154,179
|
|
|
|
1,600,773
|
|
Total
equity
|
|
|
106,700,980
|
|
|
|
104,169,163
|
|
|
|
14,949,658
|
|
Total Liabilities
and Equity
|
|
¥
|
156,981,554
|
|
|
¥
|
162,849,516
|
|
|
$
|
23,371,066
|
|
|
* Retrospectively
restated for effect of stock split on December 27,
2019
|
The accompanying notes are an integral part of these unaudited
condensed consolidated financial statements
RECON TECHNOLOGY,
LTD
|
CONDENSED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
(UNAUDITED)
|
|
|
|
For the six months
ended
December 31,
|
|
|
|
2018
|
|
|
2019
|
|
|
2019
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues - third
party
|
|
¥
|
41,954,746
|
|
|
¥
|
30,405,153
|
|
|
$
|
4,363,543
|
|
Revenues - related
party
|
|
|
316,983
|
|
|
|
-
|
|
|
|
-
|
|
Revenues
|
|
|
42,271,729
|
|
|
|
30,405,153
|
|
|
|
4,363,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues and
related tax - third party
|
|
|
26,914,495
|
|
|
|
18,437,241
|
|
|
|
2,645,989
|
|
Cost of revenues and
related tax - related party
|
|
|
120,142
|
|
|
|
-
|
|
|
|
-
|
|
Cost of revenues
and related tax
|
|
|
27,034,637
|
|
|
|
18,437,241
|
|
|
|
2,645,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
15,237,092
|
|
|
|
11,967,912
|
|
|
|
1,717,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
|
4,909,361
|
|
|
|
2,660,873
|
|
|
|
381,871
|
|
General and
administrative expenses
|
|
|
18,903,138
|
|
|
|
13,366,413
|
|
|
|
1,918,258
|
|
Provision for (net
recovery of) doubtful accounts
|
|
|
(1,494,707)
|
|
|
|
25,537
|
|
|
|
3,665
|
|
Research and
development expenses
|
|
|
1,654,702
|
|
|
|
2,895,286
|
|
|
|
415,512
|
|
Operating
expenses
|
|
|
23,972,494
|
|
|
|
18,948,109
|
|
|
|
2,719,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(8,735,402)
|
|
|
|
(6,980,197)
|
|
|
|
(1,001,752)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
|
55,706
|
|
|
|
854,389
|
|
|
|
122,616
|
|
Interest
income
|
|
|
32,109
|
|
|
|
85,745
|
|
|
|
12,306
|
|
Interest
expense
|
|
|
(856,571)
|
|
|
|
(761,322)
|
|
|
|
(109,260)
|
|
Income (loss) from
investment in unconsolidated entity
|
|
|
(844,369)
|
|
|
|
141,288
|
|
|
|
20,277
|
|
Foreign exchange
transaction gain
|
|
|
17,651
|
|
|
|
209
|
|
|
|
30
|
|
Other income
(expense)
|
|
|
387,439
|
|
|
|
(60,760)
|
|
|
|
(8,720)
|
|
Other income
(expense), net
|
|
|
(1,208,035)
|
|
|
|
259,549
|
|
|
|
37,249
|
|
Loss before income
tax
|
|
|
(9,943,437)
|
|
|
|
(6,720,648)
|
|
|
|
(964,503)
|
|
Income tax
expenses
|
|
|
2,002
|
|
|
|
316,799
|
|
|
|
45,465
|
|
Net
loss
|
|
|
(9,945,439)
|
|
|
|
(7,037,447)
|
|
|
|
(1,009,968)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to non-controlling interests
|
|
|
138,804
|
|
|
|
(336,250)
|
|
|
|
(48,256)
|
|
Net loss
attributable to Recon Technology, Ltd
|
|
¥
|
(10,084,243)
|
|
|
¥
|
(6,701,197)
|
|
|
$
|
(961,712)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(9,945,439)
|
|
|
|
(7,037,447)
|
|
|
|
(1,009,968)
|
|
Foreign currency
translation adjustment
|
|
|
1,195,328
|
|
|
|
9,610
|
|
|
|
1,379
|
|
Comprehensive
loss
|
|
|
(8,750,111)
|
|
|
|
(7,027,837)
|
|
|
|
(1,008,589)
|
|
Less: Comprehensive
income (loss) attributable to non-
controlling interests
|
|
|
138,804
|
|
|
|
(336,250)
|
|
|
|
(48,256)
|
|
Comprehensive loss
attributable to Recon Technology, Ltd
|
|
¥
|
(8,888,915)
|
|
|
¥
|
(6,691,587)
|
|
|
$
|
(960,333)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share - basic and diluted
|
|
¥
|
(2.72)
|
|
|
¥
|
(1.51)
|
|
|
$
|
(0.22)
|
|
Weighted - average
shares -basic and diluted*
|
|
|
3,711,083
|
|
|
|
4,449,980
|
|
|
|
4,449,980
|
|
|
* Retrospectively
restated for effect of stock split on December 27,
2019
|
The accompanying notes are an integral part of these unaudited
condensed consolidated financial statements
RECON TECHNOLOGY,
LTD
|
CONDENSED
STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
For the six months
ended December 31,
|
|
|
|
2018
|
|
|
2019
|
|
|
2019
|
|
|
|
RMB
|
|
|
RMB
|
|
|
U.S.
Dollars
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
¥
|
(9,945,439)
|
|
|
¥
|
(7,037,447)
|
|
|
$
|
(1,009,968)
|
|
Adjustments to
reconcile net loss to net cash (used in)
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
515,457
|
|
|
|
411,592
|
|
|
|
59,069
|
|
Loss from disposal of
equipment
|
|
|
-
|
|
|
|
3,189
|
|
|
|
458
|
|
Provision for (net
recovery of) doubtful accounts
|
|
|
(1,494,707)
|
|
|
|
25,537
|
|
|
|
3,665
|
|
Provision for slow
moving inventories
|
|
|
65,380
|
|
|
|
25,312
|
|
|
|
3,633
|
|
Amortization of right
of use assets
|
|
|
-
|
|
|
|
718,000
|
|
|
|
103,043
|
|
Restricted shares
issued for management and employees
|
|
|
9,539,917
|
|
|
|
4,057,093
|
|
|
|
582,247
|
|
Loss (income) from
investment in unconsolidated entity
|
|
|
844,369
|
|
|
|
(141,288)
|
|
|
|
(20,277)
|
|
Restricted shares
issued for services
|
|
|
516,194
|
|
|
|
33,927
|
|
|
|
4,869
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
|
217,436
|
|
|
|
(986,826)
|
|
|
|
(141,623)
|
|
Trade accounts
receivable
|
|
|
(11,251,794)
|
|
|
|
5,412,201
|
|
|
|
776,723
|
|
Inventories
|
|
|
(150,754)
|
|
|
|
(551,200)
|
|
|
|
(79,105)
|
|
Other
receivable
|
|
|
(6,468,866)
|
|
|
|
1,364,500
|
|
|
|
195,824
|
|
Purchase
advance
|
|
|
(3,105,872)
|
|
|
|
1,108,902
|
|
|
|
159,142
|
|
Contract
assets
|
|
|
(11,115,958)
|
|
|
|
(9,951,981)
|
|
|
|
(1,428,241)
|
|
Prepaid
expense
|
|
|
(124,589)
|
|
|
|
116,917
|
|
|
|
16,779
|
|
Prepaid expense -
related parties
|
|
|
-
|
|
|
|
217,600
|
|
|
|
31,228
|
|
Operating lease
liabilities
|
|
|
-
|
|
|
|
(610,000)
|
|
|
|
(87,543)
|
|
Trade accounts
payable
|
|
|
740,274
|
|
|
|
362,758
|
|
|
|
52,061
|
|
Other
payables
|
|
|
(1,218,860)
|
|
|
|
(160,316)
|
|
|
|
(23,007)
|
|
Other
payables-related parties
|
|
|
3,122
|
|
|
|
1,790,155
|
|
|
|
256,911
|
|
Advance from
customers
|
|
|
4,462,975
|
|
|
|
1,904,753
|
|
|
|
273,357
|
|
Accrued payroll and
employees' welfare
|
|
|
285,135
|
|
|
|
1,501,406
|
|
|
|
215,472
|
|
Taxes
payable
|
|
|
645,328
|
|
|
|
650,855
|
|
|
|
93,406
|
|
Net cash (used in)
provided by operating activities
|
|
|
(27,041,252)
|
|
|
|
265,639
|
|
|
|
38,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in
unconsolidated entity
|
|
|
(3,815,080)
|
|
|
|
-
|
|
|
|
-
|
|
Purchases of property
and equipment
|
|
|
(283,129)
|
|
|
|
(12,967)
|
|
|
|
(1,861)
|
|
Proceeds from
disposal of equipment
|
|
|
-
|
|
|
|
900
|
|
|
|
129
|
|
Repayments from loans
to third parties
|
|
|
-
|
|
|
|
4,960,000
|
|
|
|
711,826
|
|
Payments and
prepayments for construction in progress
|
|
|
(4,411,620)
|
|
|
|
(1,297,663)
|
|
|
|
(186,232)
|
|
Net cash (used in)
provided by investing activities
|
|
|
(8,509,829)
|
|
|
|
3,650,270
|
|
|
|
523,862
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
short-term borrowings
|
|
|
1,031,507
|
|
|
|
-
|
|
|
|
-
|
|
Repayments of
short-term borrowings
|
|
|
-
|
|
|
|
(1,081,096)
|
|
|
|
(155,152)
|
|
Proceeds from
short-term borrowings-related parties
|
|
|
5,000,000
|
|
|
|
13,115,000
|
|
|
|
1,882,176
|
|
Repayments of
short-term borrowings-related parties
|
|
|
(5,000,000)
|
|
|
|
(10,195,000)
|
|
|
|
(1,463,118)
|
|
Repayments of
long-term borrowings-related party
|
|
|
(334,513)
|
|
|
|
(365,530)
|
|
|
|
(52,458)
|
|
Refund of capital
contribution by a non-controlling shareholder
|
|
|
(200,000)
|
|
|
|
-
|
|
|
|
-
|
|
Capital contribution
by non-controlling shareholders
|
|
|
500,000
|
|
|
|
405,000
|
|
|
|
58,123
|
|
Net cash provided
by financing activities
|
|
|
996,994
|
|
|
|
1,878,374
|
|
|
|
269,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash
|
|
|
1,195,329
|
|
|
|
9,611
|
|
|
|
1,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease)
increase in cash
|
|
|
(33,358,758)
|
|
|
|
5,803,894
|
|
|
|
832,936
|
|
Cash at beginning
of period
|
|
|
45,340,578
|
|
|
|
4,521,325
|
|
|
|
648,870
|
|
Cash at end of
period
|
|
¥
|
11,981,820
|
|
|
¥
|
10,325,219
|
|
|
$
|
1,481,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during
the period for interest
|
|
¥
|
805,613
|
|
|
¥
|
718,201
|
|
|
$
|
103,071
|
|
Cash paid
(received) during the period for taxes
|
|
¥
|
2,002
|
|
|
¥
|
(2,002)
|
|
|
$
|
(287)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
$
|
176,372
|
|
Payable for
construction in progress
|
|
¥
|
5,957,463
|
|
|
¥
|
236,302
|
|
|
$
|
33,912
|
|
Receivable for
disposal of property and equipment
|
|
¥
|
-
|
|
|
¥
|
5,000
|
|
|
$
|
718
|
|
The accompanying notes are an integral part of these
unaudited condensed consolidated financial statements
View original
content:http://www.prnewswire.com/news-releases/recon-technology-ltd-reports-financial-results-for-the-first-six-months-of-fiscal-year-2020-301025938.html
SOURCE Recon Technology, Ltd.