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Tag: RCON stock

  • Recon Technology, Ltd. (RCON) stock is going high in aftermarket – What’s happening?

    Recon Technology, Ltd. (RCON) stock is going high in aftermarket – What’s happening?

    Recon Technology, Ltd. (RCON) experienced an increase of 10.26% in aftermarket despite any latest news. However, the last trading session closed at $1.17 with an increase of 16.42%.

    Carbon Neutrality – More About it

    On 24th January 2022, RCON announced that a China-based oil sale company has been assisted by the Future Gas Station (Beijing) Technology Ltd in order to launch one of the best and novel products i.e., Carbon Neutral Box. The CNB is a consumer-side carbon inclusive mini-program. It allows vehicle owners to attain carbon neutrality for the very first time depending on their refueling actions at FGS-served gas stations. Moreover, this is a significant effort to strengthen low-carbon gas station management. Not only this but it will assist vehicle owners in practicing low-carbon consumption, and encourage the use of low-carbon products.

    Analyzing the Launch of Product by RCON

    China had previously issued no consumer-based carbon neutrality certificates. 289 vehicles have received carbon neutral fueling facilities and confirmed certifications at the East Central Road gas station. Furthermore, the company is glad to continue the collaboration with a large oil firm in jointly launching a consumption-side carbon-neutral solution for gas stations. Last but not the least, this is not just a new business investment for FGS, but it also demonstrates the technology services company’s extensive product expertise.

    Integrated Solar Storage by RCON – What’s up?

    RCON reported on 22nd November 2021 that the company has made a huge investment in Shandong Zhong You Yun Xin Information Technology Company Limited. RCON is happy to be one of Zhong You Yun Xin’s shareholders and to collaborate with PetroChina’s Shandong office. This will help explore innovative approaches to revolutionize and upgrade the gas station sector and its profitability model. Moreover, RCON plans on using a software solution based on cloud computing and blockchain technologies to connect the new energy and old energy markets, maximizing the financial benefits of distributed energy while also enhancing gas station operational efficiency and lowering transition costs.

    What’s Next?

    With more than 10,000 gas stations, Shandong is a key region in China for petrochemical energy supplies. All gas stations are being challenged to modernize against the backdrop of a changing business. Moreover, RCON intends to promote efficient gas station management tools and integrated energy supply station solutions. In addition, they serve all vehicle owners with a convenient, economical, and comfortable experience. Last but not the least, the new energy business is the fastest growing industry in China’s “carbon peak and carbon neutral” aim.

  • Recon Technology, Ltd. (RCON) Stock Plummets Following Announcement of USD$55 Million Registered Direct Offering

    Recon Technology, Ltd. (RCON) stock prices plummeted by a significant 19.31% shortly after market trading commenced on June 14th 2021, bringing the price per share down to USD$5.03 early on in the trading day.

    Registered Direct Offering

    June 14th, 2021 saw the company announce having entered into a securities purchase agreement with various accredited investors. The agreement will see the purchasing of USD$55 million worth of the company’s class A ordinary shares in a registered direct offering. Pre-funded warrants to purchase Class A ordinary shares may be issued in lieu of the shares themselves, with the class A ordinary shares warrants being issues in a concurrent private placement.

    Size of Offering

    As per the agreement, the company has agreed to sell a total of 8,814,102 Class A ordinary shares, or pre-funded warrants in lieu thereof. Concurrently, warrants for the purchase of 8,814,102 class A ordinary shares will be offered in a private placement transaction. The pre-funded warrants will have a set exercise price of USD$0.01 per share, with the option of immediate exercising upon the date of issuance until they are exercised in full.

    Pre-Funded Warrants

    The pre-funded warrants will be issued to certain investors who will have elected to purchase them instead of the Class A ordinary shares up for sale in the offering. This is because the investors would otherwise have surpassed 9.99% beneficial ownership of the company’s Class A ordinary shares immediately after the offering.

    Pricing of Offering

    Ordinary share warrants will be exercisable instantly as of the date of issuance, with a set exercise price of USD$6.24. The warrants for ordinary shares will expire in five and a half years from the date of issuance. The purchase price for one unit comprised of one ordinary share and one corresponding ordinary share warrant will also be USD$6.24. Gross proceeds generated from the offering are expected to be USD$55 million before the deduction of expenses related to the offering. Subject to customary closing conditions, the registered direct offering is expected to close around June 15th, 2021.

    Future Outlook for RCON

    Armed with a solid liquidity position from their private placement, RCON is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher inorganic growth over the long term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Why was Recon Technology, Ltd. (Nasdaq: RCON) shares bursting in the Post-market session?

    Why was Recon Technology, Ltd. (Nasdaq: RCON) shares bursting in the Post-market session?

    Recon Technology, Ltd. (Nasdaq: RCON) stock was taking the aerial route in the after-market session as it surged 95.8% to $2.82, after 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 2020.

    Compared to the fiscal year 2019, gross sales were roughly RMB65.8 million ($9.3 million), reflecting a decline of 35.8 percent.

    Automation devices and services sales declined to roughly RMB51.4 million ($7.3 million), which reflects a 19.1 percent decline from the fiscal year 2019. The decline was largely due to the delayed approval by Shenhua Group of many projects and fewer expenses, and reduced orders from Xinjiang East Hope New Energy Co., Ltd.

    Revenue from equipment and accessories declined to approximately RMB14.2 million ($2.0 million), reflecting a 40.6 percent decline from the fiscal year 2019, primarily due to reduced demand for the company’s goods from oilfield firms as a result of low oil prices.

    Sales from the environmental security of the oilfield declined by 99.2 percent to almost nil for this time, mostly caused by the late approval audit of the Gansu development project, so orders were not met, and revenue was not accepted during the 2020 fiscal year.

    Total revenue costs declined by 36.4 percent to roughly RMB46.2 million ($6.5 million), primarily as a result of lower revenue-related costs.

    Gross profit declined to roughly RMB19.6 million ($2.8 million), reflecting a decline of 34.4 percent from the fiscal year 2019. The gross margin, relative to 29.2 percent last year, was held at the same pace of 29.8 percent. In fact, the gross margin for the automation and machinery divisions in the fiscal year 2020 has all increased. The Organization estimates that when the treatment process is finished and income is recognized, the gross margin for the oilfield environmental management division will return to a level of 40 percent.

    Total operating costs fell to around RMB39.8 million ($5.6 million), reflecting a 26.5 percent fall.

    Sales and service costs were around RMB4.4 million ($0.6 million), reflecting a decline of 51.3 percent from the fiscal year 2019. As the Firm continued to manage its operational costs, as well as the ban on travel and outdoor sports levied by the PRC government due to the COVID-19 during the fiscal year 2020, this decline was largely due to lower travel and entertainment expenses.