BEIJING, July 28, 2021 /PRNewswire/ -- Recon Technology,
Ltd (NASDAQ: RCON) ("Recon" or the "Company") today announced that
its subsidiary Future Gas Station (Beijing) Technology Company Limited ("FGS")
signed a three-year cooperation agreement ("Agreement") with Hui
Tong Tian Xia Petrochemical (Dalian) Co. Ltd ("Huitong Dalian"), a leading
Chinese company focusing on fleet fuel management, to establish an electronic integrated
service platform (the "Platform") for enterprise fuel consumption
management. Huitong Dalian is a wholly owned subsidiary of Beijing
Hui Tong Tian Xia IOT Technology CO. Ltd ("G7 IOT").
According to the Agreement, FGS will provide customized
development and maintenance services to Huitong Dalian regarding
the fleet fuel management-based Platform according to the
requirement of G7 IOT. The services are provided to realize timely
fueling and payment management, automatic account reconciliation
between all gas stations of PetroChina Company Limited (the
"PetroChina") in China and
logistics enterprises as end users of the Platform. According to
the business development schedule agreed by both parties, the
initial cooperation will be carried out in Heilongjiang, Inner Mongolia, Hebei, Shandong, Sichuan, Hubei, Gansu,
Hunan, Zhejiang provinces. It is expected that
monthly fuel consumption flow by end users, which are mainly
logistics enterprises, in the above provinces through the Platform
will be RMB 66 million. Pursuant to
the Agreement, FGS has the right to charge certain percentages of
the flow as service fees.
Management Comments
Mr. Song Yang, a founder and the
CEO of FGS, said, "We are delighted to join hands with G7 IOT to
provide logistics enterprises with
a leading solution that can meet their data-based operation such as
managing fleet refueling behavior, real-time data management and
automatic account reconciliation. We hope to empower the data-based
management of fuel consumption of large customers in logistics
industry. With the improvement of logistics enterprises' data-based
operation, the traditional offline fuel card management method can
no longer meet their requirements for timeliness of service and
transaction data. In the traditional way, logistics enterprises
need to go to gas stations to make deposits on the fuel cards
offline first, and the data of fleet fuel consumption cannot be
delivered to logistics enterprises in time. The reconciliation
between logistics enterprises and gas stations is often unbalanced,
and it may even take several days and several employees of both
sides to complete the reconciliation. Through our integrated
service platform, logistics companies can learn the real-time fuel
consumption data of each vehicle at each gas station and
automatically complete reconciliation with gas stations, which
reduces the complexity of settlement and their personnel input,
greatly improving the operational management efficiency and saving
their management costs. At the same time, we can also provide
customized marketing and management tools for gas stations based on
the platform, helping gas stations to launch more effective pricing
and discount plans through more accurate information about the fuel
consumption behavior of fleet users, and empowering data-based
operations of gas stations. Our solution provides convenience for
oil users and increases their satisfaction and stickiness with
PetroChina's services, and helps gas stations develop the best
sales strategy in a competitive market environment, thus achieving
a win-win situation for all parties."
Mr. Song Yang added, "Partnership
with G7 IOT marks the expansion of FGS' service scope from car
owner consumption market to the logistics industry. G7 IOT deeply
links more than 1.8 million heavy-duty trucks across China. We aim to work together to expand this
platform solution to more provinces and cities in China. At the same time, we will further
expand our customer base and extend our fuel management solutions
to more logistics and platform companies."
About G7 IOT
Founded in 2010, G7 IOT is China's leading IOT freight technology service
platform. Through its unique IoT technology platform, software
service platform and payment and settlement system, G7 IOT connects
various factors of production in China's road logistics industry, providing a
full range of integrated services covering network freight
transportation, safety insurance, smart equipment and fleet
management to over 500 of China's
largest cargo owners and logistics companies, over 70,000 growing
fleets and over 1 million drivers. By the end of August 2020, the G7 IOT platform connected more
than 1.8 million freight trucks, tracked more than 170 million km
of truck miles per day, and connected more than 10,000 oil and gas
sites.
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 successfully establish
cooperation with Huitong Dalian; 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 ("SEC"), 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:
Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5799
Email: info@recon.cn
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SOURCE Recon Technology, Ltd.