BEIJING, March 30, 2022 /PRNewswire/ -- Recon Technology,
Ltd (Nasdaq: RCON) ("Recon" or the "Company"), today announced
its financial results for the first six months of Fiscal Year
2022.
First Six Months of Fiscal 2022 Financial:
- Total revenues for the six months ended December 31, 2021 increased by 116.2% to
$8.6 million (RMB54.4 million), while revenue from our
oily sludge and waste water segments increased by 605.9% or
$2.7 million (RMB16.9 million).
- Gross profit for the six months ended December 31, 2021 was $2.3
million (RMB14.5
million). Our gross profit as a percentage of revenue
remained at the same level of 26.7% for the six months ended
December 31, 2021 compared with the
same period in 2020.
- Net income attributable to Recon for the six months ended
December 31, 2021 was $17.5 million (RMB111.4
million), RMB4.08 ($0.64)
per basic and RMB3.87 ($0.61) per diluted share, compared to a net loss
attributable to Recon of RMB8.9
million, or RMB1.22 per basic
and diluted share, for the six months ended December 31, 2020.
Management Commentary
Mr. Shenping Yin, co-founder and
CEO of Recon stated, "We are very pleased to see the rapid recovery
of our business. Our revenue for the period reached twice the level
of the same period last year and even exceeded the total revenue
for the entire fiscal year 2021. As the overall level of oil and
gas prices continues to rise, we expect our upstream customers,
mainly domestic oil and gas companies, to increase Capital
Expenditures (also known as "CapEx") on oil and gas
production, which brings more opportunities for the rapid
development of the Company. More particularly, as the oil prices
increase, we have observed China's
oil companies' performances greatly improve and we expect the
companies to increase their investments in drilling for new oil and
gas wells and production activities as compared to prior years. As
their vendor, we anticipate benefiting from these trends,
especially with respect to our wastewater and sludge treatment
business and specialized equipment for oil and gas fields clients
with relatively high technology content. As oil and gas companies
ramp up productions, we have also seen the number of orders and
average order amount increased from late 2022 to date."
Mr. Yin continued, "With rising oil prices and increased
investments by domestic oil companies, the market demand will
continue to increase, and competition is expected to become more
intensive. In anticipation of increased competition, we will
strengthen investments in the research and development of new
products and continue to integrate automation technology into other
business segments to improve the digital content and enhance the
overall competitive advantage of our products. In addition, the
Company's financing, which was completed in June 2021, has greatly enhanced the Company's
cash reserves and financial condition. We will use our enhanced
cash reserves and financial condition to our advantage by expanding
our business scope to further improve the Company's business
structure, its long-term profitability, enhance our values, and
safeguard the interests of our shareholders."
First Six Months Fiscal 2022 Financial Results:
Revenue
Total revenues for the six months ended December 31, 2021 increased by RMB29.2 million ($4.6
million) or 116.2%, to RMB54.4
million ($8.6 million)
compared to RMB25.2 million for the
six months ended December 31, 2020.
The overall increase in revenue was mainly due to the increased
revenue from automation product and software, oilfield
environmental protection and platform outsourcing
services segments, which was partially offset by the decreased
revenue from equipment and accessories segment during the six
months ended December 31, 2021.
Revenue from automation product and software increased by
RMB11.2 million ($1.8 million), or 89.1%, to RMB23.9 million ($3.8
million) for the six months ended December 31, 2021 from RMB12.6 million for the six months ended
December 31, 2020. The increase
was mainly caused by 1) the completion of previously delayed
projects in the Ji Dong oilfield; 2) the recovery of Shenhua
Group's requirement; and 3) the contributions from operation and
maintenance services regarding metering instruments, which were new
business resources developed by the Company from fiscal year
2021.
Revenue from equipment and accessories decreased by RMB3.6 million ($0.6
million), or 36.6%, to RMB6.2
million ($1.00 million) for
the six months ended December 31,
2021 from RMB9.8 million for
the six months ended December 31,
2020. Although oil prices rose from early 2021, our clients
were prudent in budgeting expenditures, and they preferred
continued maintenance of old equipment instead of replacing them
with new ones. At the same time, there was usually several months'
lag time from oil price increase to capital expenditure made. Thus,
revenue from equipment and accessories decreased.
Revenue from oilfield environmental protection projects
increased by RMB16.9 million
($2.7 million), or 605.9%, to
RMB19.7 million ($3.1 million) for the six months ended
December 31, 2021. This was
mainly contributed to continuously increased reequipment of our
wastewater treatment and oily sludge treatment.
Revenue from platform outsourcing services increased by
RMB4.6 million ($0.7 million) or 100.0%. The increase was mainly
due to the acquisition of FGS. FGS was consolidated into our
operations from January 2021.
Cost and Margin
Total cost of revenues increased from RMB18.5 million for the six months ended
December 31, 2020 to RMB39.9 million ($6.3
million) for the same period in 2021. This increase was
mainly caused by the increased cost of revenue from automation
product and software, oilfield environmental protection and
platform outsourcing services segments.
Gross profit increased by RMB7.8
million ($1.2 million), or
116.0%, to RMB14.5 million
($2.3 million) for the six months
ended December 31, 2021 from
RMB6.7 million from the six months
ended December 31, 2020. Our gross
profit as a percentage of revenue remained at the same level of
26.7% for the six months ended December 31,
2021 from 26.7% for the same period in 2020.
Operating Expenses
Selling expenses increased by 71.9% or RMB2.0 million ($0.3
million), from RMB2.8 million
in the six months ended December 31,
2020 to RMB4.7 million
($0.7 million) in the same period of
2021. An increase of RMB1.6 million
($0.3 million) was primarily due to
the step acquisition of FGS.
General and administrative expenses increased by
RMB34.3 million ($5.4 million), or 263.7%, to RMB47.3 million ($7.4
million) for the six months ended December 31, 2021 from RMB13.0 million for the six months ended
December 31, 2020. The increase was
primarily due to the increased share-based compensation and salary
to our management and employees.
Net recovery of provision for credit losses was RMB5.7 million ($0.9
million) for the six months ended December 31, 2021, compared to net recovery of
provision for credit losses of RMB3.7
million for the six months ended December 31, 2020.
Research and development expenses increased from approximately
RMB3.8 million for the six months
ended December 31, 2020 to
RMB5.5 million ($0.9 million) for the same period of 2021. This
increase was primarily due to more research and development expense
spent on design of new automation platform systems and treatment of
wastewater during the period as compared to the same period last
year.
Net Income/Loss
Loss from operations was RMB37.3
million ($5.9 million) for the
six months ended December 31, 2021,
compared to a loss from operations of RMB9.1
million for the six months ended December 31, 2020. This RMB28.2 million ($4.4
million) increase in loss from operations was primarily due
to the increase in operating expense partially offset by the
increase in gross profit as discussed above.
Net income was RMB111.4 million ($17.5 million) for the six months ended
December 31, 2021, an increase of
RMB121.4 million ($19.1 million) from net loss of RMB10.0 million for the six months ended
December 31, 2020. Net loss
attributable to the Company for the six months ended
December 31, 2020 was RMB8.9 million, or RMB1.22 per basic and diluted share, compared to
a net income of RMB111.4 million
($17.5 million). or RMB4.08 ($0.64) per
basic and RMB3.87($0.61) per diluted share for the six months ended
December 31, 2021.
As of December 31, 2021, the
Company had cash of RMB332.9 million
($52.3 million), compared to
RMB344.0 million as of June 30, 2021. As of December 31, 2021, the Company had working
capital of RMB403.8 million
($63.5 million) while as of
June 30, 2021, the Company had
working capital of RMB412.0
million.
Net cash used in operating activities was RMB23.0 million ($3.6
million) for the six months ended December 31, 2021, compared to net cash used in
operating activities of approximately RMB16.7 million for the six months ended
December 31, 2020. Net
cash provided by investing activities was RMB26.8 million ($4.2
million) for the six months ended December 31, 2021, compared to net
cash provided by investing activities RMB1.9 million for the six months ended
December 31, 2020. Net cash used in
financing activities was RMB9.2
million ($1.5 million) for the
six months ended December 31, 2021,
compared to net cash provided by financing activities of
RMB56.2 million for the six months
ended December 31, 2020.
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 RMB6.3614 to $1.00, the approximate exchange rate prevailing
on December 31, 2021.
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 major clients;
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
RECON TECHNOLOGY,
LTD
|
CONDENSED
CONSOLIDATED INTERIM BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30
|
|
As of
December 31
|
|
As of December 31
|
|
|
2021
|
|
2021
|
|
2021
|
ASSETS
|
|
RMB
|
|
RMB
|
|
U.S. Dollars
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash
|
|
¥
|
343,998,570
|
|
¥
|
332,864,077
|
|
$
|
52,325,453
|
Notes
receivable
|
|
|
6,305,633
|
|
|
14,808,067
|
|
|
2,327,793
|
Trade accounts
receivable, net
|
|
|
26,686,888
|
|
|
41,748,478
|
|
|
6,562,763
|
Inventories,
net
|
|
|
3,644,522
|
|
|
4,958,889
|
|
|
779,526
|
Other receivables,
net
|
|
|
6,939,676
|
|
|
8,596,816
|
|
|
1,351,399
|
Loans to third
parties
|
|
|
50,476,782
|
|
|
25,464,035
|
|
|
4,002,887
|
Purchase advances,
net
|
|
|
1,078,137
|
|
|
537,305
|
|
|
84,463
|
Contract costs,
net
|
|
|
48,795,906
|
|
|
31,364,473
|
|
|
4,930,422
|
Prepaid
expenses
|
|
|
146,071
|
|
|
29,917
|
|
|
4,702
|
Prepaid expenses-
related parties
|
|
|
433,000
|
|
|
—
|
|
|
—
|
Total current
assets
|
|
|
488,505,185
|
|
|
460,372,057
|
|
|
72,369,408
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
27,138,768
|
|
|
26,118,829
|
|
|
4,105,819
|
Land use right,
net
|
|
|
1,253,408
|
|
|
1,239,789
|
|
|
194,892
|
Intangible assets,
net
|
|
|
6,650,000
|
|
|
6,300,000
|
|
|
990,345
|
Investment in
unconsolidated entity
|
|
|
27,931,795
|
|
|
—
|
|
|
—
|
Long-term other
receivables, net
|
|
|
114,679
|
|
|
324,515
|
|
|
51,013
|
Goodwill
|
|
|
6,996,895
|
|
|
6,996,895
|
|
|
1,099,895
|
Operating lease
right-of-use assets (including ¥352,775 and ¥119,029 ($18,423) from
a related
party as of June 30, 2021 and December 31, 2021,
respectively)
|
|
|
7,925,930
|
|
|
6,084,606
|
|
|
956,486
|
Total
Assets
|
|
¥
|
566,516,660
|
|
¥
|
507,436,691
|
|
$
|
79,767,858
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
¥
|
15,000,000
|
|
¥
|
10,000,000
|
|
$
|
1,571,977
|
Trade accounts
payable
|
|
|
21,956,481
|
|
|
22,058,660
|
|
|
3,467,570
|
Other
payables
|
|
|
9,862,762
|
|
|
2,299,233
|
|
|
361,435
|
Other payable-
related parties
|
|
|
2,400,667
|
|
|
3,569,788
|
|
|
561,162
|
Contract
liabilities
|
|
|
7,686,276
|
|
|
1,195,862
|
|
|
187,987
|
Accrued payroll and
employees' welfare
|
|
|
1,954,484
|
|
|
1,832,255
|
|
|
288,023
|
Taxes
payable
|
|
|
1,248,994
|
|
|
2,337,895
|
|
|
367,512
|
Short-term
borrowings
|
|
|
530,000
|
|
|
260,000
|
|
|
40,871
|
Short-term borrowings
- related parties
|
|
|
12,676,042
|
|
|
9,149,292
|
|
|
1,438,247
|
Long-term borrowings
- related party - current portion
|
|
|
920,066
|
|
|
958,916
|
|
|
150,739
|
Operating lease
liabilities - current (including ¥352,775 and ¥119,029 ($18,423)
from a related
party as of June 30, 2021 and December 31, 2021,
respectively)
|
|
|
2,226,832
|
|
|
2,928,987
|
|
|
460,430
|
Total Current
Liabilities
|
|
|
76,462,604
|
|
|
56,590,888
|
|
|
8,895,953
|
|
|
|
|
|
|
|
|
|
|
Operating lease
liabilities - non-current
|
|
|
4,792,101
|
|
|
3,278,574
|
|
|
515,384
|
Long-term borrowings
- related party
|
|
|
6,486,551
|
|
|
6,009,625
|
|
|
944,699
|
Deferred tax
liability
|
|
|
624,088
|
|
|
728,402
|
|
|
114,503
|
Warrant
liability
|
|
|
190,635,850
|
|
|
42,239,816
|
|
|
6,640,000
|
Total
Liabilities
|
|
|
279,001,194
|
|
|
108,847,305
|
|
|
17,110,539
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Class A ordinary
shares, $0.0925 U.S. dollar par value, 150,000,000 shares
authorized;
26,868,391 shares and 27,180,718 shares issued and outstanding as
of June 30, 2021 and
December 31, 2021, respectively
|
|
|
16,340,826
|
|
|
16,524,894
|
|
|
2,597,675
|
Class B ordinary
shares, $0.0925 U.S. dollar par value, 20,000,000 shares
authorized; nil shares
and 2,500,000 shares issued and outstanding as of June 30, 2021
and
December 31, 2021, respectively
|
|
|
—
|
|
|
1,474,543
|
|
|
231,795
|
Additional paid-in
capital
|
|
|
479,490,763
|
|
|
482,163,636
|
|
|
75,794,994
|
Statutory
reserve
|
|
|
4,148,929
|
|
|
4,148,929
|
|
|
652,202
|
Accumulated
deficit
|
|
|
(206,860,320)
|
|
|
(95,502,810)
|
|
|
(15,012,818)
|
Accumulated other
comprehensive income (loss)
|
|
|
1,974,836
|
|
|
(2,662,155)
|
|
|
(418,485)
|
Total
shareholders' equity
|
|
|
295,095,034
|
|
|
406,147,037
|
|
|
63,845,363
|
Non-controlling
interests
|
|
|
(7,579,568)
|
|
|
(7,557,651)
|
|
|
(1,188,044)
|
Total
equity
|
|
|
287,515,466
|
|
|
398,589,386
|
|
|
62,657,319
|
Total Liabilities
and Equity
|
|
¥
|
566,516,660
|
|
¥
|
507,436,691
|
|
$
|
79,767,858
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these unaudited condensed interim
consolidated financial statements.
|
RECON TECHNOLOGY,
LTD
|
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended
|
|
|
December
31,
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Revenues - third
party
|
|
¥
|
25,083,622
|
|
¥
|
54,411,724
|
|
$
|
8,553,395
|
Revenues - related
party
|
|
|
85,657
|
|
|
-
|
|
|
-
|
Revenues
|
|
|
25,169,279
|
|
|
54,411,724
|
|
|
8,553,395
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
Cost of revenues -
third party
|
|
|
18,452,239
|
|
|
39,904,645
|
|
|
6,272,917
|
Cost of
revenues
|
|
|
18,452,239
|
|
|
39,904,645
|
|
|
6,272,917
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
6,717,040
|
|
|
14,507,079
|
|
|
2,280,478
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
|
2,750,389
|
|
|
4,727,496
|
|
|
743,151
|
General and
administrative expenses
|
|
|
13,009,013
|
|
|
47,314,621
|
|
|
7,437,748
|
Net recovery of
credit losses
|
|
|
(3,697,024)
|
|
|
(5,671,285)
|
|
|
(891,513)
|
Research and
development expenses
|
|
|
3,756,839
|
|
|
5,477,213
|
|
|
861,005
|
Operating
expenses
|
|
|
15,819,217
|
|
|
51,848,045
|
|
|
8,150,391
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(9,102,177)
|
|
|
(37,340,966)
|
|
|
(5,869,913)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
|
222,038
|
|
|
2,278
|
|
|
358
|
Interest
income
|
|
|
20,168
|
|
|
2,590,649
|
|
|
407,244
|
Interest
expense
|
|
|
(1,000,182)
|
|
|
(784,077)
|
|
|
(123,255)
|
Income (loss) from
investment in unconsolidated entity
|
|
|
(251,296)
|
|
|
15,411
|
|
|
2,423
|
Fair value changes of
warrants liability
|
|
|
-
|
|
|
147,168,952
|
|
|
23,134,614
|
Foreign exchange
transaction loss
|
|
|
(78,784)
|
|
|
(151,986)
|
|
|
(23,892)
|
Other income
(loss)
|
|
|
50,369
|
|
|
(13,630)
|
|
|
(2,143)
|
Other income
(expense), net
|
|
|
(1,037,687)
|
|
|
148,827,597
|
|
|
23,395,349
|
Income (loss)
before income tax
|
|
|
(10,139,864)
|
|
|
111,486,631
|
|
|
17,525,436
|
Income tax expenses
(benefit)
|
|
|
(98,338)
|
|
|
107,204
|
|
|
16,852
|
Net income
(loss)
|
|
|
(10,041,526)
|
|
|
111,379,427
|
|
|
17,508,584
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to non-controlling interests
|
|
|
(1,105,874)
|
|
|
21,917
|
|
|
3,445
|
Net income (loss)
attributable to Recon Technology, Ltd
|
|
¥
|
(8,935,652)
|
|
¥
|
111,357,510
|
|
$
|
17,505,139
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(10,041,526)
|
|
|
111,379,427
|
|
|
17,508,584
|
Foreign currency
translation adjustment
|
|
|
(931,366)
|
|
|
(4,636,991)
|
|
|
(728,924)
|
Comprehensive
income (loss)
|
|
|
(10,972,892)
|
|
|
106,742,436
|
|
|
16,779,660
|
Less: Comprehensive
income (loss) attributable to non-controlling interests
|
|
|
(1,105,874)
|
|
|
21,917
|
|
|
3,445
|
Comprehensive
income (loss) attributable to Recon Technology, Ltd
|
|
¥
|
(9,867,018)
|
|
¥
|
106,720,519
|
|
$
|
16,776,215
|
|
|
|
|
|
|
|
|
|
|
Eearning (loss)
per ordinary share
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
¥
|
(1.22)
|
|
¥
|
4.08
|
|
$
|
0.64
|
-Diluted
|
|
¥
|
(1.22)
|
|
¥
|
3.87
|
|
$
|
0.61
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares
|
|
|
|
|
|
|
|
|
|
-Basic
|
|
|
7,330,866
|
|
|
27,312,581
|
|
|
27,312,581
|
-Diluted
|
|
|
7,330,866
|
|
|
28,776,992
|
|
|
28,776,992
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these unaudited condensed interim
consolidated financial statements.
|
RECON TECHNOLOGY,
LTD
|
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months
ended December 31,
|
|
|
2020
|
|
2021
|
|
2021
|
|
|
RMB
|
|
RMB
|
|
U.S. Dollars
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
¥
|
(10,041,526)
|
|
¥
|
111,379,427
|
|
$
|
17,508,584
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
1,369,590
|
|
|
1,682,450
|
|
|
264,477
|
Loss from disposal of
equipment
|
|
|
1,095
|
|
|
35,279
|
|
|
5,546
|
Changes in warrants
liabilities
|
|
|
—
|
|
|
(147,168,952)
|
|
|
(23,134,614)
|
Net recovery of
credit losses
|
|
|
(3,697,024)
|
|
|
(5,671,285)
|
|
|
(891,513)
|
Provision for slow
moving inventories
|
|
|
423,714
|
|
|
38,856
|
|
|
6,108
|
Amortization of right
of use assets
|
|
|
542,896
|
|
|
1,556,830
|
|
|
244,730
|
Restricted shares
issued for management and employees
|
|
|
3,403,513
|
|
|
27,375,871
|
|
|
4,303,423
|
Loss (income) from
investment in unconsolidated entity
|
|
|
251,296
|
|
|
(15,411)
|
|
|
(2,423)
|
Deferred tax
expense
|
|
|
—
|
|
|
104,315
|
|
|
16,398
|
Interest expenses
related to convertible notes
|
|
|
84,607
|
|
|
—
|
|
|
—
|
Interest income from
loans to third parties
|
|
|
—
|
|
|
(2,101,366)
|
|
|
(330,330)
|
Restricted shares
issued for services
|
|
|
—
|
|
|
4,631,063
|
|
|
727,992
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
|
(3,609,112)
|
|
|
(8,502,433)
|
|
|
(1,336,563)
|
Trade accounts
receivable
|
|
|
15,866,295
|
|
|
(12,364,696)
|
|
|
(1,943,701)
|
Trade accounts
receivable-related party
|
|
|
3,409,912
|
|
|
—
|
|
|
—
|
Inventories
|
|
|
(765,595)
|
|
|
(1,314,367)
|
|
|
(206,615)
|
Other
receivable
|
|
|
(4,262,681)
|
|
|
(1,495,225)
|
|
|
(235,046)
|
Other
receivables-related parties
|
|
|
(23,800)
|
|
|
(23,800)
|
|
|
(3,741)
|
Purchase
advance
|
|
|
96,330
|
|
|
543,832
|
|
|
85,489
|
Contract
costs
|
|
|
(14,262,839)
|
|
|
20,068,844
|
|
|
3,154,775
|
Prepaid
expense
|
|
|
(19,306)
|
|
|
116,153
|
|
|
18,259
|
Prepaid expense -
related parties
|
|
|
217,600
|
|
|
433,000
|
|
|
68,067
|
Operating lease
liabilities
|
|
|
(539,572)
|
|
|
(526,878)
|
|
|
(82,824)
|
Trade accounts
payable
|
|
|
(3,761,301)
|
|
|
102,178
|
|
|
16,062
|
Other
payables
|
|
|
(1,048,961)
|
|
|
(7,569,400)
|
|
|
(1,189,891)
|
Other
payables-related parties
|
|
|
(2,842,651)
|
|
|
1,169,121
|
|
|
183,783
|
Contract
liabilities
|
|
|
3,200,559
|
|
|
(6,490,414)
|
|
|
(1,020,278)
|
Accrued payroll and
employees' welfare
|
|
|
(963,905)
|
|
|
(122,226)
|
|
|
(19,213)
|
Taxes
payable
|
|
|
273,624
|
|
|
1,088,901
|
|
|
171,173
|
Net cash used in
operating activities
|
|
|
(16,697,242)
|
|
|
(23,040,333)
|
|
|
(3,621,886)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(375,569)
|
|
|
(337,171)
|
|
|
(53,002)
|
Repayments of third
parties loans
|
|
|
3,200,377
|
|
|
113,146,100
|
|
|
17,786,302
|
Payments made for
loans to third parties
|
|
|
(950,000)
|
|
|
(86,031,987)
|
|
|
(13,524,027)
|
Net cash provided
by investing activities
|
|
|
1,874,808
|
|
|
26,776,942
|
|
|
4,209,273
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from
short-term bank loans
|
|
|
3,520,000
|
|
|
—
|
|
|
—
|
Repayments of
short-term bank loans
|
|
|
(1,020,000)
|
|
|
(5,000,000)
|
|
|
(785,988)
|
Proceeds from
short-term borrowings
|
|
|
2,460,000
|
|
|
260,000
|
|
|
40,871
|
Repayments of
short-term borrowings
|
|
|
(2,460,000)
|
|
|
(530,000)
|
|
|
(83,315)
|
Proceeds from
short-term borrowings-related parties
|
|
|
10,100,000
|
|
|
5,000,000
|
|
|
785,988
|
Repayments of
short-term borrowings-related parties
|
|
|
(8,320,000)
|
|
|
(8,522,500)
|
|
|
(1,339,717)
|
Repayments of
long-term borrowings-related party
|
|
|
(399,422)
|
|
|
(436,457)
|
|
|
(68,610)
|
Proceeds from sale of
ordinary shares, net of issuance costs
|
|
|
9,930,015
|
|
|
—
|
|
|
—
|
Proceeds from
issuance of convertible notes
|
|
|
42,364,203
|
|
|
—
|
|
|
—
|
Capital contribution
by non-controlling shareholders
|
|
|
50,000
|
|
|
—
|
|
|
—
|
Net cash provided
by (used in) financing activities
|
|
|
56,224,796
|
|
|
(9,228,957)
|
|
|
(1,450,771)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash
|
|
|
(931,369)
|
|
|
(5,642,145)
|
|
|
(886,932)
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
|
40,470,993
|
|
|
(11,134,493)
|
|
|
(1,750,316)
|
Cash at beginning
of period
|
|
|
30,336,504
|
|
|
343,998,570
|
|
|
54,075,769
|
Cash at end of
period
|
|
¥
|
70,807,497
|
|
¥
|
332,864,077
|
|
$
|
52,325,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
|
Cash paid during
the period for interest
|
|
¥
|
849,409
|
|
¥
|
732,842
|
|
$
|
115,201
|
Cash received
during the period for taxes
|
|
¥
|
(98,338)
|
|
¥
|
2,889
|
|
$
|
454
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
|
Cancellation of
ordinary shares issued
|
|
¥
|
—
|
|
¥
|
27,675,450
|
|
$
|
4,350,516
|
Right-of-use assets
obtained in exchange for operating lease obligations
|
|
¥
|
63,530
|
|
¥
|
—
|
|
$
|
—
|
Inventories used as
fixed assets
|
|
¥
|
302,795
|
|
¥
|
—
|
|
$
|
—
|
Receivable for
disposal of property and equipment
|
|
¥
|
—
|
|
¥
|
3,000
|
|
$
|
472
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these unaudited condensed interim
consolidated financial statements.
|
View original
content:https://www.prnewswire.com/news-releases/recon-technology-ltd-reports-financial-results-for-the-first-six-months-of-fiscal-year-2022-301513657.html
SOURCE Recon Technology, Ltd.