BEIJING, June 30, 2021 /PRNewswire/ -- Recon Technology,
Ltd (NASDAQ: RCON) ("Recon" or the "Company") today announced that
its subsidiary Future Gas Station (Beijing) Technology Company Limited ("FGS")
and An Hui Gao Deng Wei Xing Technology Ltd ("Gao Deng"), signed a
strategic cooperation agreement ("Agreement"). According to the
Agreement, the parties establish strategic cooperation on refueling
services, electronic fuel coupon sales, and development and
issuance of electronic fuel cards. The cooperation will be based on
the online refueling channel FGS developed for the China National
Petroleum Corporation ("CNPC") and Gao Geng's client base and the
electronic toll collection ("ETC") payment scenario, with the
purpose to provide a more convenient refueling experience for
vehicle owners and maintain more long-term loyal users of CNPC gas
stations.
Gao Deng is a fully owned subsidiary of Shen Zhen Gao Deng
Computer Technology Co., Ltd ("Gao Deng Technology"), and the
largest shareholder of the latter is Shenzhen Tencent computer system Co., Ltd ("Tencent"). The major product of Gao Deng is a
software known as "ETC Assistant App", which is the first product
in China to realize the closed
loop of online application for ETC for buses. It binds WeChat
payment with a complete set of solutions for password-free payment after passing
tolls, issuance of trip tickets and electronic invoices based on
the open capacity of Tencent's technologies, combining WeChat
payment, WeChat applet, Tencent
cloud, Tencent YouTu and Tencent billing, etc. According to Gao Deng, its
ETC Assistant App has an average
daily visit of millions of users, with the highest daily
application volume exceeding 100,000. It is an important channel
for online issuance of ETC cards in China. By the end of 2019, ETC Assistant has a
coverage of 35 million ETC vehicle owners, accounting for about 20%
of the total number of ETC vehicle owners in China.
Management Comments
Mr. Song Yang, a founder and the
CEO of FGS, said, "We are very pleased to work with Gao Deng to
provide more convenient service experiences for vehicle owners
based on the ETC refueling scenario, and help Gao Deng improve its
ETC service ecology and its smart travel business. Through our
solution, Gao Deng can further optimize its operation process of
ETC refueling payment process, and reduce the preliminary cost
investment of ETC marketing. With the significant increase of ETC
penetration rate in China, the
usage of ETC card has started to gradually extend from a tolling
scenario to car consumption scenarios such as parking, refueling,
car washing and insurance. We choose to cooperate with Gao Deng
mainly because it carries the strategic role in Gao Deng Technology
and Tencent Group's business
development plan of smart travel and auto service market. We hope
to establish effective cooperation with Gao Deng based on refueling
with ETC payment as the core service. At the same time, we are also
pleased to prompt CNPC gas stations and their service resources to
third parties through the means of technical links to improve their
resource utilization and operational efficiency."
Mr. Song Yang added, "We have
been improving our business model to increase our competitive
advantage in the refueling and energy services industry, and we are
now able to link gas stations with all end users of gasoline and
diesel in an efficient and senseless way. We have developed a
comprehensive solution to quickly and effectively prompt CNPC's
services and resources to logistics companies, fleets, and platform
companies that want to provide their customers with convenient and
affordable refueling options. In the future, we will continue to
build on our innovative solutions to deliver better refueling
experiences and management tools to more companies and customers in
more industries."
About Future Gas Station (Beijing) Technology, Ltd. ("FGS")
Established in January 2016, FGS
is a subsidiary of Recon and a service company focusing on
providing new technical applications and data operations to gas
stations of oil companies such as CNPC. With its DT Refuel mobile
application and related mini programs embedded into WeChat and
Alipay, two mobile applications widely used in China, FGS provides solutions to gas stations
to improve their operations and their customers' experience. FGS
aims to facilitate the digital transformation of gas stations
through integration of internet technique and algorithms, and to
help transform gas stations into comprehensive service
providers.
About Recon Technology, Ltd ("RCON")
Recon Technology, Ltd (NASDAQ: RCON) is China's first NASDAQ-listed non-state owned
oil and gas field service company. Recon supplies China's largest oil exploration companies,
Sinopec (NYSE: SNP) and The China National Petroleum Corporation
("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: http://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, whether
we will establish successfully cooperation with Gao Geng; changes
in the competitive environment in our industry and the markets
where we operate; our ability to access the capital markets; 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.
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SOURCE Recon Technology, Ltd.