BEIJING, May 15, 2018 /PRNewswire/ -- Recon Technology,
Ltd. (NASDAQ: RCON) ("Recon" or the "Company"), a China-based independent solutions integrator
in the oilfield service and environmental protection, electric
power and coal chemical industries, today announced its financial
results for the third quarter and first nine months of fiscal year
2018, ended March 31, 2018.
Third Quarter Fiscal Year 2018 Financial Highlights (all
comparable to the prior year period):
- Total revenues for the third quarter of FY2018 increased by
181.2% to ¥16.6 million ($2.6
million).
- Gross profit for the third quarter of FY2018 was ¥1.7 million
($0.3 million) compared to ¥1.08 million in FY2017.
- Gross profit margin for the third quarter of FY2018 was 10.3%,
which decreased by 8.0 percentage points compared to the third quarter of
FY2017, largely due to a higher proportion of equipment sold at a
lower price during the test-run period.
- Net loss attributable to Recon for the third quarter of FY2018
was ¥10.1 million ($1.6 million), or
¥0.70 ($0.11) per basic and diluted
share, compared to net loss attributable to Recon of ¥7.2 million,
or ¥0.81 per basic and diluted share, for the same period of fiscal
2017.
- Non-GAAP net loss attributable to common shareholders excluding
certain non-cash expenses was ¥5.1 million ($0.8 million), or ¥0.35 ($0.06) per basic and diluted share, for the
third quarter of FY2018, compared to non-GAAP net income
attributable to common shareholders of ¥2.3 million, ¥0.26 per
basic and diluted share, for the same period of last fiscal
year.
First Nine Months of Fiscal Year 2018 Financial Highlights
(all comparable to the prior year period):
- Total revenues for the first nine months of FY2018 increased by
58.7% to ¥69.8 million ($11.1
million).
- Gross profit for the first nine months of FY2018 was ¥7.8
million ($1.2 million). Gross profit
margin for the first nine months of FY2018 was 11.1%, which
decreased by 20.0 percentage points compared to the first nine
months of FY2017.
- Net loss attributable to Recon for the first nine months of
FY2018 was ¥27.1 million ($4.3
million), or ¥2.73 ($0.43) per
basic and diluted share, compared to ¥17.0 million, or ¥2.43 per
basic and diluted share, for the same period of last fiscal
year.
- Non-GAAP net loss attributable to common shareholders excluding
certain non-cash expenses was ¥10.5 million ($1.7 million), or ¥1.06 ($0.17) per basic and diluted share, for the
first nine months of FY2018, compared to non-GAAP net loss
attributable to common shareholders of ¥3.2 million, or ¥0.46 per
basic and diluted share, for the same period of last fiscal
year.
Management Commentary
Mr. Shenping Yin, founder and CEO
of Recon stated, "Our market expansion
efforts proceeded quite well for the past quarter as we
continued to extend our furnaces markets to the chemical industry
and industrial automation products requirements to coal chemical
industry, bringing us increased revenue. We expect this
trend to remain stable and we remain confident of a 30%
increase in revenue for the
whole fiscal year 2018 as mentioned in our annual letter to shareholders. Furthermore, our construction of
waste-water and waste oil sludge treatment facilities has also
advanced as scheduled. We believe this will help improve our
operations and profit in the coming year."
Recent Developments
On April 09, 2018, the Company
announced procurement bidding results from Shenhua Group
Corporation Limited ("Shenhua Group") through Shenhua Logistics
Group Corporation Limited ("Shenhua Logistics"), during the first 3
months of FY2018, to provide specified equipment and maintenance services for contracts with
amount above ¥6.8 million, or approximately $1.1 million. The Company expects bids of ¥20
million to be achieved for the whole year 2018. As of the
date of this press release, ¥9.93 million ($1.58
million) has been
secured. Shenhua Group is a
state-owed enterprise, founded in October
1995 with the approval of the State Council, pursuant to PRC
Corporate Laws. Shenhua Group is a diversified energy enterprise
concentrating on coal production, sales, electricity and thermal
generation, coal liquefaction, coal chemicals, and railway and port
transportation.
On January 22, 2018, the Company
and certain institutional investors entered into a securities
purchase agreement in connection with an offering, pursuant to
which the Company agreed to sell an aggregate of 3,592,500 ordinary
shares. The purchase price was $1.66
per ordinary share. The aggregate proceeds, after deducting fees to
the Placement Agent and other offering expenses of about
$0.5 million, were approximately
$5.5 million.
On December 15, 2017, the Company
signed a subscription agreement with Future Gas Station
(Beijing) Technology, Ltd ("FGS").
Pursuant to this agreement, Recon holds 8% equity interest of FGS.
As of the date of this press
release, Recon has invested ¥4.0 million in FGS.
On November 20, 2017, the Company
entered into a securities purchase agreement with Yongquan Bi ("Mr. Bi"), pursuant to which Mr. Bi
agreed to purchase an aggregate of 3 million unregistered
restricted shares for $4.8 million, a
per-share purchase price of $1.60. On
January 19, 2018, the Company issued
3 million shares to Xinhaixin International Holdings Limited, Mr.
Bi's wholly owned company.
Results of Operations
The following unaudited condensed consolidated results of
operations which include the Company's wholly owned subsidiaries,
their variable interest entities ("VIEs") and VIEs' subsidiaries.
The VIEs are Nanjing Recon Technology Co. Ltd ("Nanjing Recon") and
Beijing BHD Petroleum Technology Co, Ltd ("BHD"). BHD owns 100% of
the equity interest of Huang Hua BHD Petroleum Equipment
Manufacturing Co. LTD ("HH BHD"), 51% of the equity interest of
Gansu BHD Environmental Technology Ltd ("Gansu BHD") and 55% of the
equity interest of Qing Hai BHD New Energy Technology Co., Ltd.
("Qinghai BHD").
By this current report on Form 6-K, Recon has provided selected
results for the third quarter and first nine months of fiscal year
2018, with details on its first nine months financial results in
this report.
The translation has been made at the rate of $1.0: ¥6.28, the approximate exchange rate
prevailing on March 31, 2018.
Selected Financial
Highlights in RMB
(in 000s, except percentages, number of shares and per share
data)
|
|
|
|
3 months ended
March 31, 2017
|
|
|
3 months ended
March 31, 2018
|
|
|
9 months ended
March 31, 2017
|
|
|
9 months ended
March 31, 2018
|
|
Sales
|
|
|
5,898
|
|
|
|
16,586
|
|
|
|
44,013
|
|
|
|
69,832
|
|
Cost of
Revenues
|
|
|
4,816
|
|
|
|
14,878
|
|
|
|
30,322
|
|
|
|
62,077
|
|
Gross
Profit
|
|
|
1,082
|
|
|
|
1,708
|
|
|
|
13,691
|
|
|
|
7,755
|
|
Gross Profit
Margin
|
|
|
18.3
|
%
|
|
|
10.3
|
%
|
|
|
31.1
|
%
|
|
|
11.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
Operations
|
|
|
(6,971)
|
|
|
|
(10,453)
|
|
|
|
(16,265)
|
|
|
|
(27,959)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Attributable
to Recon Technology, Ltd
|
|
|
(7,187)
|
|
|
|
(10,133)
|
|
|
|
(16,999)
|
|
|
|
(27,119)
|
|
Non-U.S. GAAP Net
Loss attributable to common
shareholders
|
|
|
(2,295)
|
|
|
|
(5,138)
|
|
|
|
(3,220)
|
|
|
|
(10,541)
|
|
Basic and Weighted
Average Number of Diluted
Common Shares Outstanding
|
|
|
8,926,631
|
|
|
|
14,552,266
|
|
|
|
7,006,354
|
|
|
|
9,933,257
|
|
Basic and Diluted
Loss per Share
|
|
|
(0.81)
|
|
|
|
(0.70)
|
|
|
|
(2.43)
|
|
|
|
(2.73)
|
|
Non-U.S. GAAP
adjusted loss per basic and diluted
share
|
|
|
(0.26)
|
|
|
|
(0.35)
|
|
|
|
(0.46)
|
|
|
|
(1.06)
|
|
3 MONTHS ENDED MARCH 31,
2018 UNAUDITED FINANCIAL RESULTS
Revenue
Total revenues for the three months ended March 31, 2018 increased by 181.2% to ¥16.6
million ($2.6 million) compared to
¥5.9 million for the same period of last year, largely due to
increased sales of customized equipment and pressure vessels to new
clients of chemical industry.
Cost and Margin
The Company's gross profit increased by 57.9% to ¥1.7 million
($0.3 million) for the three months
ended March 31, 2018 from ¥1.1
million for the same period of last year. Gross profit
margin decreased to 10.3% from 18.3% for the same period
of last year. The significant decrease in gross margin was
primarily due to increased sales of furnaces which usually
generates lower gross margin. The management believes that our
gross margin will increase after the construction and test-run
stage of our new plants and equipment, when our equipment is
expected to be sold at the normal price.
Net Loss
Loss from operations was ¥10.5 million ($1.7 million) during the three months ended
March 31, 2018, compared to ¥7.0
million for the same period of last year. The increase in net loss
is largely due to an increase in selling and distribution expenses
and general and administrative expenses, partly offset by an
increase in gross profit and a decrease in research and development
expenses.
Net loss attributable to Recon for the three months ended
March 31, 2018 was ¥10.1 million
($1.6 million), or ¥0.70 ($0.11) per basic and diluted share based on 14.6
million basic and diluted shares outstanding, compared to ¥7.2
million, or ¥0.81 per basic and diluted share based on 8.9 million
basic and diluted shares outstanding for the same period of last
year.
Non-U.S. GAAP Net Loss
Non-U.S. GAAP net loss attributable to common shareholders
excluding certain non-cash expenses such as restricted shares
issued for consulting services and non-cash stock compensation
expense was ¥5.1 million ($0.8
million), or ¥0.35 ($0.06) per
basic and diluted share, for the three months ended March 31, 2018, compared to adjusted net loss
attributable to common shareholders of ¥2.3 million, ¥0.26 per
basic and diluted share, for the same period of last year. Please
see the note about non-GAAP measures and the reconciliation table
at the end of this press release.
9 MONTHS ENDED MARCH 31,
2018 UNAUDITED FINANCIAL RESULTS
Revenue
|
For the Nine
Months Ended
|
|
March
31,
|
|
|
|
|
|
|
|
Percentage
|
|
|
2017
|
|
2018
|
|
Increase
|
|
Change
|
|
Hardware and
software
|
¥
|
43,940,560
|
|
¥
|
69,649,711
|
|
¥
|
25,709,151
|
|
|
58.5
|
%
|
Service
|
|
72,170
|
|
|
182,551
|
|
|
110,381
|
|
|
152.9
|
%
|
Total
revenues
|
¥
|
44,012,730
|
|
¥
|
69,832,262
|
|
¥
|
25,819,532
|
|
|
58.7
|
%
|
Total revenues for the nine months ended March 31, 2018 were approximately ¥69.8 million
($11.1 million), representing an
increase of approximately ¥25.8 million or 58.7% from ¥44.0 million
for the nine months ended March 31,
2017. The overall increase in revenue was accomplished
through Recon's expansion of new clients and development of new
business. See below for more details:
|
For the Nine
Months Ended
|
|
March
31,
|
|
|
|
|
|
Increase
/
|
|
Percentage
|
|
|
2017
|
|
2018
|
|
(Decrease)
|
|
Change
|
|
Automation product
and software
|
¥
|
18,901,400
|
|
¥
|
15,915,595
|
|
¥
|
(2,985,805)
|
|
|
(15.8)
|
%
|
Equipment and
accessories
|
|
22,301,456
|
|
|
53,302,419
|
|
|
31,000,963
|
|
|
139.0
|
%
|
Waste water treatment
products
|
|
2,737,704
|
|
|
431,697
|
|
|
(2,306,007)
|
|
|
(84.2)
|
%
|
Services
|
|
72,170
|
|
|
182,551
|
|
|
110,381
|
|
|
152.9
|
%
|
Total
revenues
|
¥
|
44,012,730
|
|
¥
|
69,832,262
|
|
¥
|
25,819,532
|
|
|
58.7
|
%
|
(1)
|
Revenue from
automation product and software decreased by ¥3.0 million or 15.8%
from the same period of last
year. Affected by less expenditure on surface projects of our
clients for the last two years, requirements of
automation related projects maintained at a lower level and
fluctuated. Revenue from this product line may
fluctuate from time to time. Management is confident on further
development on this business because it
believes oil companies will continue to invest in automation
products. In addition, during this period,
management also expanded new market of automation business to coal
chemical industry.
|
(2)
|
As shown above, the
overall increase in revenue was primarily due to increased
equipment business, including
furnaces and related accessories.
|
(3)
|
Revenue from waste
water treatment products decreased by ¥2.3 million or 84.2% as most
of Recon's
wastewater treatment projects were not finished thus less revenue
was recorded in the nine months ended
March 31, 2018 as compared to the same period of last
year.
|
(4)
|
Revenue from services
for the nine months ended March 31, 2017 and 2018 consisted mainly
of maintenance
services, which were provided upon request by customers. Revenue
from services increased by ¥0.1 million or
152.9% from the same period of last year mainly because maintenance
requests outpaced the purchase of new
equipment due to industry softness, and we believe the margin level
is reasonable.
|
Cost and Margin
|
|
For the Nine
Months Ended
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
Increase
/
|
|
|
Percentage
|
|
|
|
2017
|
|
|
2018
|
|
|
(Decrease)
|
|
|
Change
|
|
Total
revenues
|
|
¥
|
44,012,730
|
|
|
¥
|
69,832,262
|
|
|
¥
|
25,819,532
|
|
|
|
58.7
|
%
|
Cost of
revenues
|
|
|
30,322,003
|
|
|
|
62,077,072
|
|
|
|
31,755,069
|
|
|
|
104.7
|
%
|
Gross
profit
|
|
¥
|
13,690,727
|
|
|
¥
|
7,755,190
|
|
|
¥
|
(5,935,537)
|
|
|
|
(43.4)%
|
|
Margin %
|
|
|
31.1
|
%
|
|
|
11.1
|
%
|
|
|
(20.0)
|
%
|
|
|
-
|
|
Cost of Revenues. Recon's cost of revenues increased from ¥30.3
million for the nine months ended March 31,
2017 to ¥62.1 million ($9.9
million) for the same period in 2018, representing an
increase of ¥31.8 million ($5.1
million), or 104.7%. This increase was mainly caused by
significant growth in revenue generated from equipment and
accessories with lower gross profit margin.
Gross Profit. Recon's gross profit decreased to ¥7.8 million
($1.2 million) for the nine months
ended March 31, 2018 from ¥13.7
million from the same period of last year. Recon's gross profit as
a percentage of revenue decreased to 11.1% for the nine months
ended March 31, 2018 from 31.1% from
the same period of last year. This was mainly due to the increased
equipment business with lower margin during this period, which led
to the increase in cost of revenues in proportion to the increase
in Recon's revenue.
Operating Expenses
|
|
For the Nine
Months Ended
|
|
|
|
March
31,
|
|
|
|
|
|
|
|
|
|
Increase
/
|
|
|
Percentage
|
|
|
|
2017
|
|
|
2018
|
|
|
(Decrease)
|
|
|
Change
|
|
Selling and
distribution expenses
|
|
¥
|
3,311,070
|
|
|
¥
|
4,283,601
|
|
|
¥
|
972,531
|
|
|
|
29.4
|
%
|
% of
revenue
|
|
|
7.5
|
%
|
|
|
6.1
|
%
|
|
|
(1.40)%
|
|
|
|
-
|
|
General and
administrative expenses
|
|
|
20,973,292
|
|
|
|
28,569,378
|
|
|
|
7,596,086
|
|
|
|
36.2
|
%
|
% of
revenue
|
|
|
47.7
|
%
|
|
|
40.9
|
%
|
|
|
(6.80)%
|
|
|
|
-
|
|
Provision for
(reversal of) doubtful accounts
|
|
|
(876,530)
|
|
|
|
504,498
|
|
|
|
1,381,028
|
|
|
|
(157.6)%
|
|
% of
revenue
|
|
|
(2.0)%
|
|
|
|
0.7
|
%
|
|
|
2.70
|
%
|
|
|
-
|
|
Research and
development expenses
|
|
|
6,547,582
|
|
|
|
2,356,406
|
|
|
|
(4,191,176)
|
|
|
|
(64.0)%
|
|
% of
revenue
|
|
|
14.9
|
%
|
|
|
3.4
|
%
|
|
|
(11.50)%
|
|
|
|
-
|
|
Operating
expenses
|
|
¥
|
29,955,414
|
|
|
¥
|
35,713,883
|
|
|
¥
|
5,758,469
|
|
|
|
19.2
|
%
|
Selling and Distribution Expenses. Selling and distribution
expenses consist primarily of salaries and related expenditures of
Recon's sales and marketing organization, sales commissions, costs
of Recon's marketing programs including traveling expenses,
advertising and trade shows, and rental expense, as well as
shipping charges. Selling expenses increased by ¥1.0 million
($0.2 million) for the nine months
ended March 31, 2018 from the same
period of last year. This increase was primarily due to an increase
in traveling expense and service and testing fees as we expanded
our market to new basements of Changqing oilfield and new
industries. Selling expenses were 6.1% of total revenues for the
nine months ended March 31, 2018 and
7.5% of total revenues for the same period of last year.
General and Administrative Expenses. General and administrative
expenses consist primarily of costs in human resources, facilities
costs, depreciation expenses, professional advisor fees, audit
fees, stock-based compensation expense and other miscellaneous
expenses incurred in connection with general operations. General
and administrative expenses increased by 36.2% or ¥7.6 million
($1.2 million), from ¥21.0 million in
the nine months ended March 31, 2017
to ¥28.6 million ($4.5 million) for
the same period of 2018. The increase in general and administrative
expenses was mainly due to an increase in performance-based
compensation, consulting fees, rent expenses and investor
relationship expenses. General and administrative
expenses accounted 40.9% of total revenues in the nine months ended
March 31, 2018 and 47.7% of total
revenues for the same period of last year. In December 2016, the Company's board approved the
grants of restricted stock to management plan based on performance
targets for the coming three fiscal years from FY2017 to FY2019.
During the nine months ended March 31,
2018, because of the grant of certain restricted stock to
management as the target for the FY2018 achieved, compensation
expenses increased ¥2.5 million.
Provision for doubtful accounts. Provision for doubtful accounts
is the estimated amount of bad debt that will arise as a result of
lower collectability from accounts receivables, other receivables
and purchase advances. We reversed provision for doubtful accounts
of ¥0.9 million for the nine months ended March 31, 2017 and recorded a provision for
doubtful accounts of ¥0.5 million ($0.1
million) for the same period in 2018. Management will
continue to monitor accounts receivable to maintain the provision
at a lower level.
Research and development ("R&D") expenses. Research and
development expenses consist primarily of salaries and related
expenditures for Recon's research and development projects.
Research and development expenses decreased from ¥6.5 million for
the nine months ended March 31, 2017
to ¥2.4 million ($0.4 million) for
the same period of 2018. This decrease was primarily due to less
research and development expense spent on design of chemical
products used for waste water treatment and digital oilfield models
and platform. The Company was focusing on the transformation of
advanced R&D results into projects, which were undertaken by
Gansu BHD and Qinghai BHD.
Net Loss
|
For the Nine
Months Ended
|
|
|
March
31,
|
|
|
|
|
|
|
Increase
/
|
|
Percentage
|
|
|
2017
|
|
2018
|
|
(Decrease)
|
|
Change
|
|
Loss from
operations
|
¥
|
(16,264,687)
|
|
¥
|
(27,958,693)
|
|
¥
|
(11,694,006)
|
|
|
71.9
|
%
|
Other expense,
net
|
|
(185,591)
|
|
|
(280,752)
|
|
|
(95,161)
|
|
|
51.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
(16,450,278)
|
|
|
(28,239,445)
|
|
|
(11,789,167)
|
|
|
71.7
|
%
|
Income tax
expenses
|
|
264,344
|
|
|
11,018
|
|
|
(253,326)
|
|
|
(95.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(16,714,622)
|
|
|
(28,250,463)
|
|
|
(11,535,841)
|
|
|
69.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to non-controlling
interest
|
|
284,649
|
|
|
(1,131,067)
|
|
|
(1,415,716)
|
|
|
(497.4)%
|
|
Net loss attributable
to Recon Technology, Ltd
|
¥
|
(16,999,271)
|
|
¥
|
(27,119,396)
|
|
¥
|
(10,120,125)
|
|
|
59.5
|
%
|
Loss from operations. Loss from operations was ¥28.0 million
($4.5 million) for the nine months
ended March 31, 2018, compared to a
loss of ¥16.3 million for the same period of last year. This ¥11.7
million ($1.9 million) increase in
loss from operations was primary due to a decrease in gross
profit, as well as an increase in general and administrative
expenses and partly offset by a decrease in research and
development expenses as discussed above.
Basic and diluted loss per share. Basic and diluted loss per
share attributable to common shareholders was ¥2.73, as compared to
¥2.43 for the nine months ended March 31,
2017.
Non-U.S. GAAP Net Loss
Non-U.S. GAAP net loss attributable to common shareholders
excluding certain non-cash expenses (non-GAAP) such as restricted
shares issued for consulting services and non-cash stock
compensation expense was ¥10.5 million ($1.7
million), or ¥1.06 ($0.17) per
diluted share, for the nine months ended March 31, 2018, compared to non-U.S. GAAP net
loss attributable to common shareholders of ¥3.2 million, or ¥0.46
per basic and diluted share, for the same period of last year.
Please see the note about non-GAAP measures and the reconciliation
table at the end of this press release.
LIQUIDITY AND CAPITAL RESOURCES
|
Selected Balance
Sheet Highlights in RMB
Conversion US$1.0:
RMB6.28 at March 31, 2018
|
|
|
3/31/2018
|
|
6/30/2017
|
|
Percentage
Change
|
|
Cash and cash
equivalent
|
|
52,415,897
|
|
|
3,809,279
|
|
|
1,276.01
|
%
|
Total Current
Assets
|
|
120,424,984
|
|
|
68,387,075
|
|
|
76.09
|
%
|
Total
Assets
|
|
135,712,689
|
|
|
71,155,045
|
|
|
90.73
|
%
|
Working
Capital
|
|
93,554,270
|
|
|
38,941,318
|
|
|
140.24
|
%
|
Total Current
Liabilities
|
|
26,870,714
|
|
|
29,445,757
|
|
|
(8.75)
|
%
|
Total Stockholders'
Equity
|
|
88,687,587
|
|
|
33,244,445
|
|
|
166.77
|
%
|
Total Liabilities and
Stockholders' Equity
|
|
135,712,689
|
|
|
71,155,045
|
|
|
90.73
|
%
|
Cash from Operating Activities. Net cash used in operating
activities was ¥14.6 million ($2.3
million) for the nine months ended March 31, 2018. This represents an increase of
¥23.7 million ($3.8 million) compared
to net cash provided by operating activities of ¥9.1 million for
the nine months ended March 31, 2017.
The increase in net cash used in operating activities for the nine
months ended March 31, 2018 was
primarily attributable to the net loss available to the Company of
the amount of ¥28.3 million ($4.5
million), and reconciled by share based compensation of ¥5.1
million ($0.8 million), restricted
shares issued for management of ¥8.0 million ($1.3 million) as well as restricted shares issued
for services of ¥2.8 million ($0.5
million); and an increase in other receivables and purchase
advances, partly offset by an decrease in trade accounts
receivable.
Cash from Investing Activities. Net cash used in investing
activities was ¥13.6 million ($2.2
million) for the nine months ended March 31, 2018, representing an increase in cash
used in investing activities of ¥13.3 million ($2.1 million) compared to the same period in
2017. This increase was due to an increase in the Company's
payments for a land use right of 50 years, payments for
construction in progress and investment in unconsolidated
entity.
Cash from Financing Activities. Net cash provided by financing
activities amounted to ¥76.8 million ($12.2
million) for the nine months ended March 31, 2018, as compared to net cash used in
financing activities of ¥6.2 million for the same period of last
year. During the nine months ended March 31,
2018, we repaid ¥21.4 million ($3.4
million) in short-term borrowings to related parties and
repaid ¥4.9 million ($0.8 million) in
short-term borrowings to third-parties, and we received ¥20.2
million ($3.2 million) in short-term
borrowings from related parties, received ¥4.6 million
($0.7 million) in short-term
borrowings from one third-party and received ¥10.0 million
($1.6 million) in long-term
borrowings from one related party.
We also received ¥3.7 million ($0.6
million) capital contribution by non-controlling
shareholders. Moreover, this increase in net cash provided by
financing activities was due to net proceeds from issuance of
common stock of ¥65.0 million ($10.3
million) for the nine months ended March 31, 2018.
STATEMENT REGARDING UNAUDITED FINANCIAL INFORMATION
The unaudited financial information set forth above is subject
to adjustments that may be identified when audit work is performed
on the Company's year-end financial statements, which could result
in significant differences from this unaudited financial
information.
Use of Non-GAAP Financial Measures
To supplement Recon's unaudited condensed consolidated financial
information presented in accordance with U.S. generally accepted
accounting principles ("GAAP"), Recon uses the following non-GAAP
financial measures: certain non-cash expenses such as restricted
shares issued for consulting services and non-cash stock
compensation expense, basic and diluted earnings (losses) per
common share excludes non-cash expenses such as restricted shares
issued for consulting services and non-cash stock compensation
expense.
The presentation of these non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for the
financial information prepared and presented in accordance with
GAAP. Recon believes these non-GAAP financial measures provide
meaningful supplemental information about its performance by
excluding non-cash items, which may not be indicative of its
operating performance.
About Recon Technology, Ltd.
Recon Technology, Ltd. (NASDAQ: RCON) is China's first listed non-state-owned oil and
gas field service company on NASDAQ. Recon supplies China's largest oil exploration companies,
Sinopec (NYSE: 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, 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 relationship with its major clients,
and its products and service are well accepted by clients. For
additional information please visit: www.recon.cn.
Currency Conversion
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 ¥6.28 to $1.00, the noon
buying rate as of March 31, 2018 as
set forth in the H.10 statistical release of the Federal Reserve
Board. Prior period numbers have been recast into the new reporting
currency.
Safe Harbor
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, 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.
For more information, please contact:
In China:
Ms. Liu Jia
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
RECON TECHNOLOGY,
LTD
|
CONDENSED BALANCE
SHEETS
|
(UNAUDITED)
|
|
|
As of June
30,
|
|
As of March
31
|
|
As of March
31
|
|
2017
|
|
2018
|
|
2018
|
ASSETS
|
RMB
|
|
RMB
|
|
U.S.
Dollars
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalent
|
¥
|
3,809,279
|
|
¥
|
52,415,897
|
|
$
|
8,345,583
|
Notes
receivable
|
|
6,112,960
|
|
|
2,799,435
|
|
|
445,722
|
Trade accounts
receivable, net
|
|
39,425,911
|
|
|
33,719,455
|
|
|
5,368,763
|
Inventories,
net
|
|
2,627,974
|
|
|
5,157,202
|
|
|
821,122
|
Other receivables,
net
|
|
4,106,510
|
|
|
8,331,295
|
|
|
1,326,497
|
Purchase advances,
net
|
|
11,476,000
|
|
|
17,031,192
|
|
|
2,711,682
|
Prepaid
expenses
|
|
828,441
|
|
|
970,508
|
|
|
154,523
|
Total current
assets
|
|
68,387,075
|
|
|
120,424,984
|
|
|
19,173,892
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
2,767,970
|
|
|
2,902,687
|
|
|
462,162
|
Construction in
progress
|
|
-
|
|
|
5,610,165
|
|
|
893,242
|
Land use right,
net
|
|
-
|
|
|
1,341,936
|
|
|
213,661
|
Investment in
unconsolidated entity
|
|
-
|
|
|
4,037,736
|
|
|
642,882
|
Prepayments for
construction in progress
|
|
-
|
|
|
1,395,181
|
|
|
222,139
|
Total
Assets
|
¥
|
71,155,045
|
|
¥
|
135,712,689
|
|
$
|
21,607,978
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loan
|
¥
|
-
|
|
¥
|
45,000
|
|
$
|
7,165
|
Trade accounts
payable
|
|
8,352,870
|
|
|
8,311,141
|
|
|
1,323,288
|
Other
payables
|
|
3,351,900
|
|
|
3,481,726
|
|
|
554,355
|
Other payable-
related parties
|
|
3,314,019
|
|
|
3,173,006
|
|
|
505,201
|
Deferred
revenue
|
|
1,259,725
|
|
|
1,000,140
|
|
|
159,241
|
Accrued payroll and
employees' welfare
|
|
2,014,514
|
|
|
438,124
|
|
|
69,757
|
Taxes
payable
|
|
684,721
|
|
|
696,997
|
|
|
110,975
|
Short-term
borrowings
|
|
300,000
|
|
|
-
|
|
|
-
|
Short-term borrowings
- related parties
|
|
10,168,008
|
|
|
9,019,086
|
|
|
1,436,006
|
Long-term borrowings
- related party - current portion
|
|
-
|
|
|
705,494
|
|
|
112,328
|
Total Current
Liabilities
|
|
29,445,757
|
|
|
26,870,714
|
|
|
4,278,316
|
|
|
|
|
|
|
|
|
|
Long-term borrowings
- related party
|
|
-
|
|
|
9,120,612
|
|
|
1,452,171
|
Total
Liabilities
|
|
29,445,757
|
|
|
35,991,326
|
|
|
5,730,487
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Common stock, ($
0.0185 U.S. dollar par value, 100,000,000 shares
authorized; 18,280,349 shares and 9,902,914 shares issued and
outstanding as
of March 31, 2018 and June 30, 2017, respectively)
|
|
1,261,288
|
|
|
2,267,836
|
|
|
361,082
|
Additional paid-in
capital
|
|
123,436,043
|
|
|
204,974,986
|
|
|
32,635,821
|
Statutory
reserve
|
|
4,148,929
|
|
|
4,148,929
|
|
|
660,586
|
Accumulated
deficit
|
|
(95,352,659)
|
|
|
(122,472,055)
|
|
|
(19,499,824)
|
Accumulated other
comprehensive loss
|
|
(249,156)
|
|
|
(232,109)
|
|
|
(36,956)
|
Total
stockholders' equity
|
|
33,244,445
|
|
|
88,687,587
|
|
|
14,120,709
|
Non-controlling
interests
|
|
8,464,843
|
|
|
11,033,776
|
|
|
1,756,782
|
Total
equity
|
|
41,709,288
|
|
|
99,721,363
|
|
|
15,877,491
|
Total Liabilities
and Equity
|
¥
|
71,155,045
|
|
¥
|
135,712,689
|
|
$
|
21,607,978
|
The accompanying notes are an integral part of these
consolidated financial statements
RECON TECHNOLOGY,
LTD
|
CONDENSED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
(UNAUDITED)
|
|
|
For the nine
months ended
|
|
For the three
months ended
|
|
March
31,
|
|
March
31,
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware and
software
|
¥
|
43,940,560
|
|
¥
|
69,649,711
|
|
$
|
11,089,526
|
|
¥
|
5,897,622
|
|
¥
|
16,585,535
|
|
$
|
2,640,725
|
Service
|
|
72,170
|
|
|
182,551
|
|
|
29,066
|
|
|
-
|
|
|
-
|
|
|
-
|
Total
revenues
|
|
44,012,730
|
|
|
69,832,262
|
|
|
11,118,592
|
|
|
5,897,622
|
|
|
16,585,535
|
|
|
2,640,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware and
software
|
|
30,322,003
|
|
|
62,077,072
|
|
|
9,883,823
|
|
|
4,816,497
|
|
|
14,878,467
|
|
|
2,368,928
|
Total cost of
revenues
|
|
30,322,003
|
|
|
62,077,072
|
|
|
9,883,823
|
|
|
4,816,497
|
|
|
14,878,467
|
|
|
2,368,928
|
Gross
profit
|
|
13,690,727
|
|
|
7,755,190
|
|
|
1,234,769
|
|
|
1,081,125
|
|
|
1,707,068
|
|
|
271,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
3,311,070
|
|
|
4,283,601
|
|
|
682,029
|
|
|
915,981
|
|
|
1,301,964
|
|
|
207,297
|
General and
administrative expenses
|
|
20,973,292
|
|
|
28,569,378
|
|
|
4,548,775
|
|
|
5,728,585
|
|
|
9,897,237
|
|
|
1,575,824
|
Provision for (net
recovery of) doubtful
accounts
|
|
(876,530)
|
|
|
504,498
|
|
|
80,325
|
|
|
(185,566)
|
|
|
423,959
|
|
|
67,502
|
Research and
development expenses
|
|
6,547,582
|
|
|
2,356,406
|
|
|
375,184
|
|
|
1,592,780
|
|
|
536,686
|
|
|
85,450
|
Operating
expenses
|
|
29,955,414
|
|
|
35,713,883
|
|
|
5,686,313
|
|
|
8,051,780
|
|
|
12,159,846
|
|
|
1,936,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(16,264,687)
|
|
|
(27,958,693)
|
|
|
(4,451,544)
|
|
|
(6,970,655)
|
|
|
(10,452,778)
|
|
|
(1,664,276)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
96,905
|
|
|
212,005
|
|
|
33,755
|
|
|
89,098
|
|
|
-
|
|
|
-
|
Interest
income
|
|
65,776
|
|
|
40,890
|
|
|
6,510
|
|
|
16,798
|
|
|
34,591
|
|
|
5,508
|
Interest
expense
|
|
(423,875)
|
|
|
(551,458)
|
|
|
(87,802)
|
|
|
(138,013)
|
|
|
(267,398)
|
|
|
(42,575)
|
Income (loss) from
foreign currency exchange
|
|
22,603
|
|
|
(6,799)
|
|
|
(1,083)
|
|
|
19,588
|
|
|
(4,128)
|
|
|
(657)
|
Other income
(expense)
|
|
53,000
|
|
|
24,610
|
|
|
3,918
|
|
|
(10,524)
|
|
|
45,958
|
|
|
7,317
|
Other expense,
net
|
|
(185,591)
|
|
|
(280,752)
|
|
|
(44,702)
|
|
|
(23,053)
|
|
|
(190,977)
|
|
|
(30,407)
|
Loss before income
tax
|
|
(16,450,278)
|
|
|
(28,239,445)
|
|
|
(4,496,246)
|
|
|
(6,993,708)
|
|
|
(10,643,755)
|
|
|
(1,694,683)
|
Income tax
expenses
|
|
264,344
|
|
|
11,018
|
|
|
1,754
|
|
|
284,487
|
|
|
1,736
|
|
|
276
|
Net
loss
|
|
(16,714,622)
|
|
|
(28,250,463)
|
|
|
(4,498,000)
|
|
|
(7,278,195)
|
|
|
(10,645,491)
|
|
|
(1,694,959)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to non-
controlling interests
|
|
284,649
|
|
|
(1,131,067)
|
|
|
(180,087)
|
|
|
(91,563)
|
|
|
(512,905)
|
|
|
(81,664)
|
Net loss
attributable to Recon Technology,
Ltd
|
¥
|
(16,999,271)
|
|
¥
|
(27,119,396)
|
|
$
|
(4,317,913)
|
|
¥
|
(7,186,632)
|
|
¥
|
(10,132,586)
|
|
$
|
(1,613,295)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(16,714,622)
|
|
|
(28,250,463)
|
|
|
(4,498,000)
|
|
|
(7,278,195)
|
|
|
(10,645,491)
|
|
|
(1,694,959)
|
Foreign currency
translation adjustment
|
|
(108,008)
|
|
|
17,047
|
|
|
2,714
|
|
|
(33,856)
|
|
|
(55,221)
|
|
|
(8,792)
|
Comprehensive
loss
|
|
(16,822,630)
|
|
|
(28,233,416)
|
|
|
(4,495,286)
|
|
|
(7,312,051)
|
|
|
(10,700,712)
|
|
|
(1,703,751)
|
Less: Comprehensive
income (loss) attributable
to non-controlling interests
|
|
284,649
|
|
|
(1,131,067)
|
|
|
(180,087)
|
|
|
(91,563)
|
|
|
(512,905)
|
|
|
(81,664)
|
Comprehensive loss
attributable to Recon
Technology, Ltd
|
¥
|
(17,107,279)
|
|
¥
|
(27,102,349)
|
|
$
|
(4,315,199)
|
|
¥
|
(7,220,488)
|
|
¥
|
(10,187,807)
|
|
$
|
(1,622,087)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share - basic and diluted
|
¥
|
(2.43)
|
|
¥
|
(2.73)
|
|
$
|
(0.43)
|
|
¥
|
(0.81)
|
|
¥
|
(0.70)
|
|
$
|
(0.11)
|
Weighted-average
shares -basic and diluted
|
|
7,006,354
|
|
|
9,933,257
|
|
|
9,933,257
|
|
|
8,926,631
|
|
|
14,552,266
|
|
|
14,552,266
|
The accompanying notes are an integral part of these
consolidated financial statements
RECON TECHNOLOGY,
LTD
|
CONDENSED
STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
For the nine
months ended March 31,
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
U.S.
Dollars
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net
loss
|
¥
|
(16,714,622)
|
|
¥
|
(28,250,463)
|
|
$
|
(4,498,000)
|
Adjustments to
reconcile net loss to net cash provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
636,072
|
|
|
850,217
|
|
|
135,370
|
Gain from disposal of
equipment
|
|
(35,919)
|
|
|
(78,285)
|
|
|
(12,464)
|
Provision for (net
recovery of) doubtful accounts
|
|
(876,530)
|
|
|
504,498
|
|
|
80,325
|
Provision for slow
moving inventories
|
|
-
|
|
|
88,214
|
|
|
14,045
|
Share based
compensation
|
|
5,877,975
|
|
|
5,131,459
|
|
|
817,023
|
Restricted shares
issued for management
|
|
5,483,059
|
|
|
8,024,231
|
|
|
1,277,606
|
Restricted shares
issued for services
|
|
3,294,497
|
|
|
2,830,362
|
|
|
450,646
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
(2,241,179)
|
|
|
3,313,525
|
|
|
527,575
|
Trade accounts
receivable, net
|
|
2,554,495
|
|
|
4,927,248
|
|
|
784,509
|
Inventories,
net
|
|
3,314,798
|
|
|
(2,617,441)
|
|
|
(416,745)
|
Other receivable,
net
|
|
9,652,913
|
|
|
(4,055,057)
|
|
|
(645,640)
|
Purchase advances,
net
|
|
(5,458,035)
|
|
|
(5,368,312)
|
|
|
(854,735)
|
Prepaid
expense
|
|
(62,074)
|
|
|
(142,067)
|
|
|
(22,620)
|
Trade accounts
payable
|
|
3,485,149
|
|
|
(754,247)
|
|
|
(120,090)
|
Other
payables
|
|
(842,523)
|
|
|
129,826
|
|
|
20,671
|
Other
payables-related parties
|
|
(230,324)
|
|
|
(141,013)
|
|
|
(22,452)
|
Deferred
revenue
|
|
40,389
|
|
|
(259,585)
|
|
|
(41,331)
|
Accrued payroll and
employees' welfare
|
|
1,306,318
|
|
|
341,603
|
|
|
54,389
|
Taxes
payable
|
|
(89,615)
|
|
|
935,921
|
|
|
149,016
|
Net cash provided
by (used in) operating activities
|
|
9,094,844
|
|
|
(14,589,366)
|
|
|
(2,322,902)
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Investment in
unconsolidated entity
|
|
-
|
|
|
(4,037,736)
|
|
|
(642,882)
|
Purchases of property
and equipment
|
|
(354,784)
|
|
|
(983,966)
|
|
|
(156,666)
|
Proceeds from
disposal of equipment
|
|
51,900
|
|
|
32,000
|
|
|
5,095
|
Payments for land use
right
|
|
-
|
|
|
(1,361,969)
|
|
|
(216,851)
|
Advance payments for
construction in progress
|
|
-
|
|
|
(1,395,181)
|
|
|
(222,139)
|
Payments for
construction in progress
|
|
-
|
|
|
(5,837,842)
|
|
|
(929,493)
|
Net cash used in
investing activities
|
|
(302,884)
|
|
|
(13,584,694)
|
|
|
(2,162,936)
|
|
|
|
|
|
|
|
|
|
Proceeds from
short-term bank loans
|
|
-
|
|
|
45,000
|
|
|
7,165
|
Proceeds from
short-term borrowings
|
|
-
|
|
|
4,600,000
|
|
|
732,405
|
Repayments of
short-term borrowings
|
|
(530,000)
|
|
|
(4,900,000)
|
|
|
(780,171)
|
Proceeds from
short-term borrowings-related parties
|
|
7,758,318
|
|
|
20,188,318
|
|
|
3,214,355
|
Repayments of
short-term borrowings-related parties
|
|
(13,409,163)
|
|
|
(21,369,678)
|
|
|
(3,402,449)
|
Proceeds from
long-term borrowings-related party
|
|
-
|
|
|
10,000,000
|
|
|
1,592,186
|
Repayments of
long-term borrowings-related party
|
|
-
|
|
|
(504,541)
|
|
|
(80,332)
|
Proceeds from sale of
common stock, net of issuance costs
|
|
-
|
|
|
65,004,531
|
|
|
10,349,928
|
Capital contribution
by noncontrolling shareholders
|
|
-
|
|
|
3,700,000
|
|
|
589,109
|
Net cash provided
by (used in) financing activities
|
|
(6,180,845)
|
|
|
76,763,630
|
|
|
12,222,196
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash
|
|
(94,125)
|
|
|
17,048
|
|
|
2,714
|
|
|
|
|
|
|
|
|
|
Net increase in
cash
|
|
2,516,990
|
|
|
48,606,618
|
|
|
7,739,072
|
Cash at beginning
of period
|
|
1,817,620
|
|
|
3,809,279
|
|
|
606,508
|
Cash at end of
period
|
¥
|
4,334,610
|
|
¥
|
52,415,897
|
|
$
|
8,345,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Cash paid during
the period for interest
|
¥
|
454,414
|
|
¥
|
520,358
|
|
$
|
82,851
|
Cash paid during
the period for taxes
|
¥
|
284,487
|
|
¥
|
11,034
|
|
$
|
1,757
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
Issuance of common
stock to prepay professional services
|
¥
|
3,294,497
|
|
¥
|
2,830,362
|
|
$
|
450,646
|
Issuance of common
stock to settle salary payable
|
¥
|
-
|
|
¥
|
1,554,908
|
|
$
|
247,570
|
Payable for
Construction in Progress
|
¥
|
-
|
|
¥
|
712,518
|
|
$
|
113,446
|
Reconciliation of
Non-GAAP Financial Measures
|
|
|
For the three
months ended
|
|
March
31,
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
USD
|
Reconciliation of
Net loss attributable to common shareholders to Adjusted
Net loss attributable to common shareholders
|
|
|
|
|
|
|
|
|
Net loss attributable
to common shareholders
|
¥
|
(7,186,632)
|
|
¥
|
(10,132,586)
|
|
$
|
(1,613,295)
|
|
|
|
|
|
|
|
|
|
Special items
(A):
|
|
|
|
|
|
|
|
|
Restricted shares
issued for services
|
|
2,530,110
|
|
|
892,495
|
|
|
142,102
|
Provision for (net
recovery of) doubtful accounts
|
|
(185,566)
|
|
|
423,959
|
|
|
67,502
|
Provision for slow
moving inventories
|
|
-
|
|
|
156,598
|
|
|
24,933
|
Stock compensation
expense
|
|
1,805,834
|
|
|
1,580,774
|
|
|
251,689
|
Restricted shares
issued for management
|
|
741,051
|
|
|
1,941,083
|
|
|
309,056
|
Adjusted net loss
attributable to common shareholders
|
¥
|
(2,295,203)
|
|
¥
|
(5,137,677)
|
|
$
|
(818,013)
|
|
|
|
|
|
|
|
|
|
Reconciliation of
U.S. GAAP Loss Per Share to Non U.S. GAAP Adjusted
Loss Per Share
|
|
|
|
|
|
|
|
|
U.S. GAAP loss per
share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
¥
|
(0.81)
|
|
¥
|
(0.70)
|
|
$
|
(0.11)
|
Impact of special
items on earnings per share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
0.55
|
|
|
0.35
|
|
|
0.05
|
Non U.S. GAAP
adjusted loss per share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
¥
|
(0.26)
|
|
¥
|
(0.35)
|
|
$
|
(0.06)
|
Weighted-average
shares - basic and diluted
|
|
8,926,631
|
|
|
14,552,266
|
|
|
14,552,266
|
|
|
|
|
|
For the nine
months ended
|
|
March
31,
|
|
2017
|
|
2018
|
|
2018
|
|
RMB
|
|
RMB
|
|
USD
|
Reconciliation of
Net loss attributable to common shareholders to Adjusted
Net loss attributable to common shareholders
|
|
|
|
|
|
|
|
|
Net loss attributable
to common shareholders
|
¥
|
(16,999,271)
|
|
¥
|
(27,119,396)
|
|
$
|
(4,317,913)
|
|
|
|
|
|
|
|
|
|
Special items
(A):
|
|
|
|
|
|
|
|
|
Restricted shares
issued for services
|
|
3,294,497
|
|
|
2,830,362
|
|
|
450,646
|
Provision for (net
recovery of) doubtful accounts
|
|
(876,530)
|
|
|
504,498
|
|
|
80,325
|
Provision for slow
moving inventories
|
|
-
|
|
|
88,214
|
|
|
14,045
|
Stock compensation
expense
|
|
5,877,975
|
|
|
5,131,459
|
|
|
817,023
|
Restricted shares
issued for management
|
|
5,483,059
|
|
|
8,024,231
|
|
|
1,277,606
|
Adjusted net loss
attributable to common shareholders
|
¥
|
(3,220,270)
|
|
¥
|
(10,540,632)
|
|
$
|
(1,678,268)
|
|
|
|
|
|
|
|
|
|
Reconciliation of
U.S. GAAP Loss Per Share to Non U.S. GAAP Adjusted
Loss Per Share
|
|
|
|
|
|
|
|
|
U.S. GAAP loss per
share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
¥
|
(2.43)
|
|
¥
|
(2.73)
|
|
$
|
(0.43)
|
Impact of special
items on earnings per share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
1.97
|
|
|
1.67
|
|
|
0.26
|
Non U.S. GAAP
adjusted loss per share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
¥
|
(0.46)
|
|
¥
|
(1.06)
|
|
$
|
(0.17)
|
Weighted-average
shares - basic and diluted
|
|
7,006,354
|
|
|
9,933,257
|
|
|
9,933,257
|
|
(A):
Please refer to Use of Non-GAAP Financial
Measures for more explanation.
|
View original
content:http://www.prnewswire.com/news-releases/recon-technology-reports-fiscal-2018-third-quarter-and-first-nine-months-financial-results-300648418.html
SOURCE Recon Technology, Ltd.