BEIJING, April 25, 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 is now managing the
operations of its variable interest entities ("VIEs") solely
through its Beijing subsidiary,
Recon Hengda Technology (Beijing)
Co., Ltd. ("Recon BJ").
In order to streamline its operations, the Company signed new
VIE agreements that are similar to the old VIE agreements with its
VIEs, Nanjing Recon Technology Co., Ltd. and Beijing BHD Petroleum
Technology Co., Ltd. The Company took this action because it has
been solely operating through its Beijing office in recent years. Upon the
effectiveness of the new VIE agreements, the old VIE agreements
signed with Recon Hengda Technology (Beijing) Co., Ltd. ("Recon BJ") were
terminated. Then Recon JN was dissolved. The Board of Directors
approved the VIE transfer and the dissolution as disclosed on
February 21, 2019. Before and after
the VIE transfer and the dissolution, the Company effectively
controls its VIEs. Recon BJ is a wholly owned subsidiary of the
Company located in Beijing, China
and prior to dissolution Recon JN was a wholly owned subsidiary of
the Company located in Shandong,
China.
Management Commentary
Mr. Shenping Yin, co-founder and CEO of Recon stated, "We
are very pleased to have concluded this reorganization to manage
our operation more efficiently. In late 2016 we set up our wholly
owned subsidiary, Recon BJ, in Beijing to accommodate our management team,
which was entirely located in Beijing. As a result, maintaining the office
for our wholly owned subsidiary, Recon JN, in Jining, Shandong, was suboptimal and our Board of
Directors agreed to dissolve Recon JN in February 2019. We completed the transfer of
contractual relations from Recon JN to Recon BJ on April 1, 2019 and the dissolution of Recon JN on
April 10, 2019. The transfer was done
smoothly and the continuance of our operation was not interrupted.
We will keep conducting our
business as always and expect no negative impact of the transfer on
our operation."
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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SOURCE Recon Technology, Ltd.