Business
Recon Technology, Ltd Reports Financial Results for the First Six Months of Fiscal Year 2022
BEIJING, March 30, 2022 /PRNewswire/ -- Recon Technology, Ltd (Nasdaq: RCON) ("Recon" or the "Company"), today announced its financial results for the first
About this update from Recon Technology, Ltd.
[{"type":"text","content":"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. \nFirst Six Months of Fiscal 2022 Financial:\nTotal 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\nMr. 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.\"\nMr. Yin continued, \"With rising oil prices and increased investments by domestic oil compan...