BEIJING, Sept. 28, 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
fiscal year ended June 30, 2018.
Management Commentary
Mr. Shenping Yin, founder and CEO of Recon stated, "We are
pleased to announce our financial results for fiscal year 2018. Our
revenues increased to RMB 84.7
million from RMB 60.1 million
over the same period last year. This was an improvement of 41.1%
year over year, exceeding our expectations of a 30% increase as
previously disclosed in our annual letter to shareholders. In
addition to this top line growth, over the past fiscal year our
management invested in manufacturing equipment, constructing
wastewater and oil sludge treatment plants and Future Gas Station
(Beijing) Technology, Ltd ("FGS"),
as oil prices and the oil industry improved. FGS is a service
company focusing on providing new technical application and data
operation to gas stations of oil companies such as PetroChina Co.,
Ltd. So far, we have secured a 43% interest in FGS and FGS'
performance is exceeding our expectations. We expect to improve our
margins as these investments bear fruition and we continue to see
strong demand for energy services as the oil market
strengthens."
Mr. Yin continued, "China's energy market is more and more
diversified in terms of the structure and the market participants.
As a non-state-owned company, Recon is getting more opportunities.
In addition, we have expanded our automation business from the oil
industry to the coal chemical and new energy industries by
leveraging our knowledge and experience in automation, and our
relationships with large energy companies. As of today, we have
signed contracts amounted up to RMB22.48
million with Shenhua Group Corporation Limited ("Shenhua
Group") and RMB14.20 million with
Xinjiang East Hope New Energy Co., Ltd. ("East Hope"). We have also
integrated the new energy technology into our traditional furnaces
and will vigorously explore the civilian market of furnaces. We
believe all these efforts will bring Recon and our shareholders
more value in the future."
Fiscal Year 2018 Financial Highlights (all comparable to the
prior year period):
|
|
For the Fiscal
Year Ended June 30,
|
(RMB millions,
except per share data)
|
|
2018
|
|
2017
|
|
%
Change
|
Revenue
|
|
84.7
|
|
60.1
|
|
41.1%
|
Automation
product and software
|
|
19.0
|
|
22.4
|
|
-15.2%
|
Equipment and
accessories
|
|
64.0
|
|
26.7
|
|
139.9%
|
Oilfield
environmental protection
|
|
1.8
|
|
11.0
|
|
-84.0%
|
Gross
profit
|
|
4.2
|
|
16.0
|
|
-74.0%
|
Gross
margin
|
|
4.9%
|
|
26.6%
|
|
-21.7pp
|
Loss from
operations
|
|
-40.9
|
|
-30.6
|
|
33.7%
|
Net loss
attributable to Recon Technology, Ltd
|
|
-44.1
|
|
-31.4
|
|
40.2%
|
Loss per
share
|
|
-3.84
|
|
-4.90
|
|
-21.6%
|
|
* Note: pp represents
percentage points
|
- Total revenues for fiscal year 2018 increased by 41.1% to
RMB84.7 million ($12.8 million).
- The revenue of equipment and accessories business was a record
RMB64.0 million ($9.7 million) for fiscal year 2018 increasing
139.9% compared to RMB26.7 million
during fiscal year 2017.
- Gross profit for fiscal year 2018 was RMB4.2 million ($0.6
million). Gross profit margin for fiscal year 2018 was 4.9%,
which decreased by 21.7 percentage points compared to fiscal year
2017.
- Net loss attributable to Recon for fiscal year 2018 was
RMB44.1 million ($6.7 million), or RMB3.84 ($0.58) per
basic and diluted share, compared to RMB31.5
million, or RMB4.90 per basic
and diluted share, for fiscal year 2017.
Fiscal Year 2018 Financial Results
Revenue
Total revenues for the fiscal year ended June 30, 2018 increased by RMB24.7 million, or 41.1%, to RMB84.7 million ($12.8
million) compared to RMB60.1
million for the fiscal year ended June 30, 2017. The increase in revenues was
accomplished through the addition of new clients and development of
new business.
Revenue from automation product and software decreased by
RMB3.4 million, or 15.2%, to
RMB19.0 million ($2.9 million) for the fiscal year ended
June 30, 2018 from RMB22.4 million for the fiscal year ended
June 30, 2017, mainly affected by
less expenditure on surface projects and postponed production
activities by clients.
Revenue from equipment and accessories increased by RMB37.3 million, or 139.9%, to RMB64.0 million ($9.7
million) for the fiscal year ended June 30, 2018 from RMB26.7
million for the fiscal year ended June 30, 2017, the significant increase was
primarily due to increased equipment sales, including furnaces and
related accessories in normal chemical and civil furnace
markets.
Revenue from oilfield environmental protection decreased by
RMB9.2 million, or 84.0%, to
RMB1.8 million ($0.3 million) for the fiscal year ended
June 30, 2018 from RMB11.0 million for the fiscal year ended
June 30, 2017. The Company devoted
resources on construction of oily sludge treatment processing
projects this year and less waste-water projects were done during
this period. The Company expects the oily sludge treatment
processing projects to be operational by the end of the calendar
year 2018 and to generate annual revenue of more than RMB50 million, assuming full capacity.
Cost and Margin
Total cost of revenues increased by RMB36.5 million, or 82.7%, to RMB80.6 million ($12.2
million) for the fiscal year ended June 30, 2018 from RMB44.1 million for the fiscal year ended
June 30, 2017. The increase was
mainly caused by significant growth in revenue generated from
equipment and accessories.
Cost of revenue from automation product and software increased
by RMB4.6 million ($0.7 million), or 37.2%, to RMB17.0 million ($2.6
million) for the fiscal year ended June 30, 2018 from RMB12.3 million for the fiscal year ended
June 30, 2017. The increase in cost
of revenue from automation product and software was primarily
attributable to 1) a mass of business of Shenhua Group contracts
with lower margin; and 2) some pre-contract costs devoted to
Changqing Oilfield projects.
Cost of revenue from equipment and accessories increased by
RMB40.1 million ($6.1 million), or 183.3%, to RMB62.0 million ($9.4
million) for the fiscal year ended June 30, 2018 from RMB21.9 million for the fiscal year ended
June 30, 2017. The increase in cost
of revenue from equipment and accessories was primarily
attributable to quickly increased sales of furnaces to general
industry clients.
Cost of revenue from oilfield environmental protection decreased
by RMB8.1 million ($1.2 million), or 85.9%, to RMB1.3 million ($0.2
million) for the fiscal year ended June 30, 2018 from RMB9.4 million for the fiscal year ended
June 30, 2017. The variance in cost
of revenue was mainly due to less business of waste water
treatment. The Company expects this part will increase in the
coming year as our new subsidiary Gan Su BHD runs.
Gross profit decreased by RMB11.8
million, or 74.0%, to RMB4.2
million ($0.6 million) for the
fiscal year ended June 30,
2018 from RMB16.0 million from
the fiscal year ended June 30, 2017.
The decrease in gross profit was primarily due to the increase in
revenue, offset by the increase in cost of revenue. Gross margin
decreased by 21.7 percentage points to 4.9% for the fiscal year
ended June 30, 2018 from 26.6% from
the fiscal year ended June 30,
2017.
Operating Expenses
Selling and distribution expenses increased by RMB3.6 million, or 79.7%, to RMB8.0 million ($1.2
million) for the fiscal year ended June 30, 2018 from RMB4.5 million for the fiscal year ended
June 30, 2017. This increase was
primarily due to an increase in traveling expense and service and
testing fees as the Company expanded its market to new basements of
Changqing Oilfield and new industries.
General and administrative expenses increased by RMB1.9 million, or 5.9%, to RMB34.7 million ($5.2
million) for the fiscal year ended June 30, 2018 from RMB32.8 million for the fiscal year ended
June 30, 2017. The increase in
general and administrative expenses was mainly due to an increase
in salaries and rent expenses, the increase was partially offset by
the decrease in consulting fees.
Provision for doubtful accounts was RMB0.8 million ($0.1
million) for the fiscal year ended June 30, 2018, compared to reversal of provision
for doubtful accounts of RMB1.8
million for the fiscal year ended June 30, 2017. Management plans to continue to
monitor accounts receivable to maintain the provision at a lower
level.
Research and development expenses decreased by RMB4.4 million, or 57.7%, to RMB3.2 million ($0.5
million) for the fiscal year ended June 30, 2018 from RMB7.6 million for the fiscal year ended
June 30, 2017. 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 Gan Su BHD and Qing Hai BHD.
Net Loss
Loss from operations was RMB40.9
million ($6.2 million) for the
fiscal year ended June 30, 2018,
compared to a loss of RMB30.6 million
for the fiscal year ended June 30,
2017. This RMB10.3 million
($1.6 million) increase in loss from
operations was primary due to a decrease in gross profit, as well
as an increase in selling and distribution expenses and general and
administrative expenses and partly offset by a decrease in research
and development expenses.
Other expense, net was RMB4.4
million ($0.7 million) for the
fiscal year ended June 30, 2018,
compared to other expense, net of RMB0.3
million for the fiscal year ended June 30, 2017. The RMB4.1
million ($0.6 million)
increase in other expense, net was primarily due to the increased
loss from investment in unconsolidated entity of RMB4.0 million ($0.6
million).
Provision for income tax was RMB16,230 (approximately $2,500) for the fiscal year ended June 30, 2018, compared to RMB0.3 million for the fiscal year ended
June 30, 2017. The decrease in the
Company's provision for income taxes was primarily due to the
decreased taxable income of Nanjing Recon for the fiscal year ended
June 30, 2018.
Net loss was RMB45.4 million
($6.9 million) for the fiscal year
ended June 30, 2018, compared to
RMB31.2 million for the fiscal year
ended June 30, 2017. Net loss
attributable to Recon for the fiscal year ended June 30, 2018 was RMB44.1 million ($6.7
million), or RMB3.84 ($0.58) per basic and diluted share, compared
to RMB31.4 million, or RMB4.90 per basic and diluted share for the
fiscal year ended June 30, 2017.
Financial Condition
As of June 30, 2018, the Company
had cash of RMB45.3 million
($6.8 million), compare to
RMB3.8 million as of June 30, 2017. As of June
30, 2018, the Company had working capital of RMB74.8 million ($11.3
million), compare to RMB38.9
million as of June 30,
2017.
Net cash used in operating activities was RMB21.1 million ($3.2
million) for the fiscal year ended June 30, 2018, compared to net cash provided by
operating activities of RMB5.7
million for the fiscal year ended June 30, 2017. Net cash used in investing
activities was RMB16.0 million
($2.4 million) for the fiscal year
ended June 30, 2018, compare to
RMB0.6 million for the fiscal year
ended June 30, 2017. Net cash
provided by financing activities was RMB76.9
million ($11.6 million) for
the fiscal year ended June 30, 2018,
compared to net cash used in financing activities of RMB3.1 million for the fiscal year ended
June 30, 2017.
Exchange Rate
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 RMB6. 6198 to $1.00, the
approximate exchange rate prevailing on June
30, 2018.
Recent Developments
On August 27, 2018, the Company
signed a contract with East Hope, a polysilicon producer in
China. Pursuant to the signed
contract, Recon has agreed to sell to East Hope a distributed
control system known as "DCS" for data collection and equipment
control and a safety instrumented system known as "SIS" for safety
protection control. Recon is obligated to deliver the equipment
before December 15, 2018 and install
the equipment before December 31,
2018. As consideration, East Hope is obligated to pay Recon
RMB 14.2 million (approximately USD
$2.1 million).
On August 21, 2018, the Company
entered into a definitive investment agreement and a supplemental
agreement (collectively, the "Agreement") with FGS and the other
shareholders of FGS. Following full performance under the
Agreement, Recon will own 43% of FGS. As consideration for
increasing its affiliates' interest in FGS from 8% to 43%, Recon
will (1) pay a total of RMB 10
million in cash to FGS in five installments and (2) issue
2,435,284 restricted ordinary shares of Recon (the "Restricted
Shares") to the other shareholders of FGS within 30 days after FGS
finalizes recording Recon's corresponding interest at the local
governmental agency. If FGS does not reach certain performance
goals, Recon has the right to cancel without further payment part
or all of the Restricted Shares. The Restricted Shares are also
subject to lock-up period requirements that vary for each FGS
shareholder, from one year to three years following issuance of the
Restricted Shares.
On July 19, 2018, the Company
completed the first stage of its construction of a comprehensive
disposal treatment project (the "Project") in Yumen city,
Gansu province through its 51%
subsidiary, Gansu BHD Environmental Technology Co., Ltd ("Gansu
BHD"), which focuses on oilfield sewage treatment and oily sludge
disposal projects. The Project, which will have an annual
processing capacity of 60,000 tons of oily waste, is the only such
treatment facility located in Yumen city.
On June 11, 2018, FGS, of which
Recon indirectly holds a minority stake, has recently entered into
a strategic cooperation agreement with JD Finance, to establish an
information communication mechanism and long term cooperation
relationship. JD Finance is the financial technology arm of JD.com,
China's largest online direct
sales company. This cooperation will allow customers to refuel
their vehicles though the JD Finance App, which will be supported
by the FGS platform and linked to the FGS database.
About Recon Technology, Ltd.
Recon Technology,
Ltd. (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 (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.
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
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
As of June
30,
|
|
As of June
30
|
|
As of June
30
|
|
|
2017
|
|
2018
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
U.S.
Dollars
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash
|
|
¥
|
3,809,279
|
|
¥
|
45,340,578
|
|
$
|
6,849,237
|
Notes
receivable
|
|
|
6,112,960
|
|
|
3,995,962
|
|
|
603,638
|
Trade accounts
receivable, net
|
|
|
39,425,911
|
|
|
24,254,007
|
|
|
3,663,858
|
Inventories,
net
|
|
|
2,627,974
|
|
|
6,758,841
|
|
|
1,021,004
|
Other receivables,
net
|
|
|
4,106,510
|
|
|
7,320,953
|
|
|
1,105,918
|
Purchase advances,
net
|
|
|
11,476,000
|
|
|
12,654,546
|
|
|
1,911,621
|
Prepaid
expenses
|
|
|
828,441
|
|
|
509,682
|
|
|
76,994
|
Total current
assets
|
|
|
68,387,075
|
|
|
100,834,569
|
|
|
15,232,270
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
2,767,970
|
|
|
3,171,109
|
|
|
479,034
|
Construction in
progress
|
|
|
-
|
|
|
11,779,784
|
|
|
1,779,477
|
Land use right,
net
|
|
|
-
|
|
|
1,335,126
|
|
|
201,687
|
Long-term trade
accounts receivable, net
|
|
|
-
|
|
|
4,212,829
|
|
|
636,398
|
Prepayments for
construction in progress
|
|
|
-
|
|
|
474,100
|
|
|
71,618
|
Total
Assets
|
|
¥
|
71,155,045
|
|
¥
|
121,807,517
|
|
$
|
18,400,484
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
¥
|
8,352,870
|
|
¥
|
8,754,347
|
|
$
|
1,322,449
|
Other
payables
|
|
|
3,351,900
|
|
|
3,170,670
|
|
|
478,969
|
Other payable-
related parties
|
|
|
3,314,019
|
|
|
3,211,457
|
|
|
485,129
|
Deferred
revenue
|
|
|
1,259,725
|
|
|
85,140
|
|
|
12,861
|
Accrued payroll and
employees' welfare
|
|
|
2,014,514
|
|
|
600,434
|
|
|
90,703
|
Taxes
payable
|
|
|
684,721
|
|
|
431,913
|
|
|
65,246
|
Short-term
borrowings
|
|
|
300,000
|
|
|
-
|
|
|
-
|
Short-term borrowings
- related parties
|
|
|
10,168,008
|
|
|
9,018,065
|
|
|
1,362,287
|
Long-term borrowings
- related party - current portion
|
|
|
-
|
|
|
719,895
|
|
|
108,749
|
Total Current
Liabilities
|
|
|
29,445,757
|
|
|
25,991,921
|
|
|
3,926,393
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings
- related party
|
|
|
-
|
|
|
8,943,834
|
|
|
1,351,073
|
Total
Liabilities
|
|
|
29,445,757
|
|
|
34,935,755
|
|
|
5,277,466
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Ordinary shares, ($
0.0185 U.S. dollar par value, 100,000,000
shares authorized; 18,380,349 shares and 9,902,914 shares
issued
and outstanding as of June 30, 2018 and June 30, 2017,
respectively)
|
|
|
1,261,288
|
|
|
2,279,510
|
|
|
344,347
|
Additional paid-in
capital
|
|
|
123,436,043
|
|
|
207,490,280
|
|
|
31,343,890
|
Statutory
reserve
|
|
|
4,148,929
|
|
|
4,148,929
|
|
|
626,745
|
Accumulated
deficit
|
|
|
(95,352,659)
|
|
|
(139,424,980)
|
|
|
(21,061,812)
|
Accumulated other
comprehensive gain (loss)
|
|
|
(249,156)
|
|
|
1,516,093
|
|
|
229,024
|
Total
stockholders' equity
|
|
|
33,244,445
|
|
|
76,009,832
|
|
|
11,482,194
|
Non-controlling
interests
|
|
|
8,464,843
|
|
|
10,861,930
|
|
|
1,640,824
|
Total
equity
|
|
|
41,709,288
|
|
|
86,871,762
|
|
|
13,123,018
|
Total Liabilities
and Equity
|
|
¥
|
71,155,045
|
|
¥
|
121,807,517
|
|
$
|
18,400,484
|
RECON TECHNOLOGY,
LTD
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
|
|
|
For the years
ended
|
|
|
June
30,
|
|
|
2016
|
|
2017
|
|
2018
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
42,728,277
|
|
|
60,054,462
|
|
|
84,712,046
|
|
|
12,796,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
and related tax
|
|
|
35,481,394
|
|
|
44,090,960
|
|
|
80,561,861
|
|
|
12,169,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
7,246,883
|
|
|
15,963,502
|
|
|
4,150,185
|
|
|
626,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
|
5,630,715
|
|
|
4,458,218
|
|
|
8,013,353
|
|
|
1,210,513
|
General and
administrative expenses
|
|
|
20,195,701
|
|
|
32,751,142
|
|
|
34,687,317
|
|
|
5,239,934
|
Provision for (net
recovery of) doubtful accounts
|
|
|
14,475,074
|
|
|
1,766,286
|
|
|
(841,242)
|
|
|
(127,080)
|
Research and
development expenses
|
|
|
6,856,522
|
|
|
7,599,340
|
|
|
3,215,653
|
|
|
485,763
|
Operating
expenses
|
|
|
47,158,012
|
|
|
46,574,986
|
|
|
45,075,081
|
|
|
6,809,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(39,911,129)
|
|
|
(30,611,484)
|
|
|
(40,924,896)
|
|
|
(6,182,195)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
|
289,087
|
|
|
132,791
|
|
|
371,650
|
|
|
56,142
|
Interest
income
|
|
|
183,553
|
|
|
73,990
|
|
|
68,028
|
|
|
10,276
|
Interest
expense
|
|
|
(903,368)
|
|
|
(548,878)
|
|
|
(897,521)
|
|
|
(135,581)
|
Loss from investment
in unconsolidated entity
|
|
|
-
|
|
|
-
|
|
|
(4,037,736)
|
|
|
(609,948)
|
Foreign exchange
transaction gain (loss)
|
|
|
7,570
|
|
|
21,502
|
|
|
(4,068)
|
|
|
(615)
|
Other income
(expense)
|
|
|
(2,445)
|
|
|
36,178
|
|
|
65,539
|
|
|
9,900
|
Other expense,
net
|
|
|
(425,603)
|
|
|
(284,417)
|
|
|
(4,434,108)
|
|
|
(669,826)
|
Loss before income
tax
|
|
|
(40,336,732)
|
|
|
(30,895,901)
|
|
|
(45,359,004)
|
|
|
(6,852,021)
|
Income tax
expenses
|
|
|
545,845
|
|
|
307,900
|
|
|
16,230
|
|
|
2,452
|
Net
loss
|
|
|
(40,882,577)
|
|
|
(31,203,801)
|
|
|
(45,375,234)
|
|
|
(6,854,473)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to non-controlling
interests
|
|
|
-
|
|
|
241,346
|
|
|
(1,302,913)
|
|
|
(196,821)
|
Net loss
attributable to Recon Technology, Ltd
|
|
¥
|
(40,882,577)
|
|
¥
|
(31,445,147)
|
|
¥
|
(44,072,321)
|
|
$
|
(6,657,652)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(40,882,577)
|
|
|
(31,203,801)
|
|
|
(45,375,234)
|
|
|
(6,854,473)
|
Foreign currency
translation adjustment
|
|
|
98,511
|
|
|
(30,116)
|
|
|
1,765,249
|
|
|
266,662
|
Comprehensive
loss
|
|
|
(40,784,066)
|
|
|
(31,233,917)
|
|
|
(43,609,985)
|
|
|
(6,587,811)
|
Less: Comprehensive
income (loss) attributable to non-
controlling interests
|
|
|
-
|
|
|
241,346
|
|
|
(1,302,913)
|
|
|
(196,821)
|
Comprehensive loss
attributable to Recon Technology, Ltd
|
|
¥
|
(40,784,066)
|
|
¥
|
(31,475,263)
|
|
¥
|
(42,307,072)
|
|
$
|
(6,390,990)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per orindary
share - basic and diluted
|
|
¥
|
(7.23)
|
|
¥
|
(4.90)
|
|
¥
|
(3.84)
|
|
$
|
(0.58)
|
Weighted - average
shares -basic and diluted
|
|
|
5,653,149
|
|
|
6,417,305
|
|
|
11,483,464
|
|
|
11,483,464
|
RECON TECHNOLOGY,
LTD
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
For the years
ended June 30,
|
|
|
2016
|
|
2017
|
|
2018
|
|
2018
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
U.S.
Dollars
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
¥
|
(40,882,577)
|
|
¥
|
(31,203,801)
|
|
¥
|
(45,375,234)
|
|
$
|
(6,854,473)
|
Adjustments to
reconcile net loss to net cash provided
by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
955,083
|
|
|
856,735
|
|
|
1,119,049
|
|
|
169,046
|
Gain from disposal of
equipment
|
|
|
(40,688)
|
|
|
(35,919)
|
|
|
(78,285)
|
|
|
(11,826)
|
Provision for (net
recovery of) doubtful accounts
|
|
|
14,475,074
|
|
|
1,766,286
|
|
|
(841,243)
|
|
|
(127,080)
|
Provision for slow
moving inventories
|
|
|
2,428,288
|
|
|
-
|
|
|
65,245
|
|
|
9,856
|
Share based
compensation
|
|
|
2,096,162
|
|
|
2,039,446
|
|
|
840,286
|
|
|
126,935
|
Restricted shares
issued for management
|
|
|
3,595,146
|
|
|
12,904,723
|
|
|
14,621,838
|
|
|
2,208,804
|
Loss from investment
in unconsolidated entity
|
|
|
-
|
|
|
-
|
|
|
4,037,736
|
|
|
609,948
|
Deferred tax
provision
|
|
|
1,742,098
|
|
|
-
|
|
|
-
|
|
|
-
|
Restricted shares
issued for services
|
|
|
2,287,415
|
|
|
8,399,240
|
|
|
3,050,896
|
|
|
460,874
|
Income tax
benefit
|
|
|
(1,196,253)
|
|
|
-
|
|
|
-
|
|
|
-
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
|
(454,647)
|
|
|
(1,452,783)
|
|
|
2,116,998
|
|
|
319,798
|
Trade accounts
receivable, net
|
|
|
14,658,360
|
|
|
(245,190)
|
|
|
11,972,175
|
|
|
1,808,540
|
Trade accounts
receivable-related parties, net
|
|
|
1,090,453
|
|
|
-
|
|
|
-
|
|
|
-
|
Inventories,
net
|
|
|
1,191,811
|
|
|
3,597,832
|
|
|
(4,196,110)
|
|
|
(633,873)
|
Other receivable,
net
|
|
|
(1,775,659)
|
|
|
17,632,104
|
|
|
(3,241,846)
|
|
|
(489,720)
|
Other
receivables-related parties, net
|
|
|
91,021
|
|
|
-
|
|
|
-
|
|
|
-
|
Purchase advance,
net
|
|
|
4,930,479
|
|
|
(10,534,132)
|
|
|
(1,241,102)
|
|
|
(187,483)
|
Purchase
advance-related parties, net
|
|
|
1,374,034
|
|
|
-
|
|
|
-
|
|
|
-
|
Prepaid
expense
|
|
|
716,004
|
|
|
(718,130)
|
|
|
318,759
|
|
|
48,152
|
Prepaid expense -
related parties, net
|
|
|
420,000
|
|
|
-
|
|
|
-
|
|
|
-
|
Trade accounts
payable
|
|
|
(9,615,363)
|
|
|
812,440
|
|
|
(2,706,304)
|
|
|
(408,820)
|
Other
payables
|
|
|
712,525
|
|
|
(189,302)
|
|
|
(151,751)
|
|
|
(22,924)
|
Other
payables-related parties
|
|
|
1,869,889
|
|
|
(366,225)
|
|
|
(102,563)
|
|
|
(15,493)
|
Deferred
revenue
|
|
|
(1,878,848)
|
|
|
853,044
|
|
|
(1,174,585)
|
|
|
(177,435)
|
Accrued payroll and
employees' welfare
|
|
|
134,320
|
|
|
1,633,405
|
|
|
140,828
|
|
|
21,274
|
Taxes
payable
|
|
|
790,199
|
|
|
(78,700)
|
|
|
(269,358)
|
|
|
(40,690)
|
Net cash provided
by (used in) operating activities
|
|
|
(285,674)
|
|
|
5,671,073
|
|
|
(21,094,571)
|
|
|
(3,186,590)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in
unconsolidated entity
|
|
|
-
|
|
|
-
|
|
|
(4,037,736)
|
|
|
(609,948)
|
Purchases of property
and equipment
|
|
|
(181,075)
|
|
|
(638,119)
|
|
|
(1,503,410)
|
|
|
(227,108)
|
Proceeds from
disposal of equipment
|
|
|
60,000
|
|
|
51,900
|
|
|
32,000
|
|
|
4,834
|
Payments for land use
right
|
|
|
-
|
|
|
-
|
|
|
(1,361,969)
|
|
|
(205,742)
|
Payments and
prepayments for construction in progress
|
|
|
-
|
|
|
-
|
|
|
(9,157,103)
|
|
|
(1,383,290)
|
Net cash used in
investing activities
|
|
|
(121,075)
|
|
|
(586,219)
|
|
|
(16,028,218)
|
|
|
(2,421,254)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
short-term bank loans
|
|
|
500,000
|
|
|
-
|
|
|
45,000
|
|
|
6,798
|
Repayments of
short-term bank loans
|
|
|
(7,500,000)
|
|
|
-
|
|
|
(45,000)
|
|
|
(6,798)
|
Proceeds from
short-term borrowings
|
|
|
530,000
|
|
|
1,100,000
|
|
|
4,600,000
|
|
|
694,885
|
Repayments of
short-term borrowings
|
|
|
-
|
|
|
(1,330,000)
|
|
|
(4,900,000)
|
|
|
(740,204)
|
Proceeds from
short-term borrowings-related parties
|
|
|
12,895,400
|
|
|
13,103,718
|
|
|
20,188,318
|
|
|
3,049,687
|
Repayments of
short-term borrowings-related parties
|
|
|
(16,780,765)
|
|
|
(15,950,682)
|
|
|
(21,332,036)
|
|
|
(3,222,459)
|
Proceeds from
long-term borrowings-related party
|
|
|
-
|
|
|
-
|
|
|
10,000,000
|
|
|
1,510,620
|
Repayments of
long-term borrowings-related party
|
|
|
-
|
|
|
-
|
|
|
(371,975)
|
|
|
(56,191)
|
Proceeds from sale of
ordinary shares, net of issuance
costs
|
|
|
171,919
|
|
|
-
|
|
|
65,004,531
|
|
|
9,819,712
|
Capital contribution
by noncontrolling shareholders
|
|
|
-
|
|
|
-
|
|
|
3,700,000
|
|
|
558,929
|
Net cash provided
by (used in) financing activities
|
|
|
(10,183,446)
|
|
|
(3,076,964)
|
|
|
76,888,838
|
|
|
11,614,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash
|
|
|
62,886
|
|
|
(16,231)
|
|
|
1,765,250
|
|
|
266,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
|
(10,527,309)
|
|
|
1,991,659
|
|
|
41,531,299
|
|
|
6,273,797
|
Cash at beginning
of year
|
|
|
12,344,929
|
|
|
1,817,620
|
|
|
3,809,279
|
|
|
575,437
|
Cash at end of
year
|
|
¥
|
1,817,620
|
|
¥
|
3,809,279
|
|
¥
|
45,340,578
|
|
$
|
6,849,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during
the year for interest
|
|
¥
|
903,368
|
|
¥
|
571,037
|
|
¥
|
868,042
|
|
$
|
131,128
|
Cash paid
(received) during the year for taxes
|
|
¥
|
142,477
|
|
¥
|
284,487
|
|
¥
|
(22,671)
|
|
$
|
(3,425)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares issued to
settle salary payable
|
|
¥
|
-
|
|
¥
|
-
|
|
¥
|
1,554,908
|
|
$
|
234,887
|
AR and short-term
borrowings-related parties offset
|
|
¥
|
200,000
|
|
¥
|
-
|
|
¥
|
-
|
|
$
|
-
|
Inventories used for
fixed assets
|
|
¥
|
1,025,410
|
|
¥
|
-
|
|
¥
|
-
|
|
$
|
-
|
Payable for
Construction in Progress
|
|
¥
|
-
|
|
¥
|
-
|
|
¥
|
3,096,781
|
|
$
|
467,806
|
Non-cash payment for
property and equipment purchase
|
|
¥
|
-
|
|
¥
|
87,265
|
|
¥
|
-
|
|
$
|
-
|
Issuance of unvested
ordinary shares to senior managers
|
|
¥
|
-
|
|
¥
|
55,685
|
|
¥
|
-
|
|
$
|
-
|
Receivable for
disposal of property and equipment
|
|
¥
|
-
|
|
¥
|
-
|
|
¥
|
81,900
|
|
$
|
12,372
|
View original
content:http://www.prnewswire.com/news-releases/recon-technology-reports-fiscal-year-2018-financial-results-300720846.html
SOURCE Recon Technology, Ltd.