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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SOURCE Recon Technology, Ltd.