Business
Recon Technology Streamlines Operations through Beijing Head Office
BEIJING, April 25, 2019 /PRNewswire/ -- Recon Technology, Ltd. (Nasdaq: RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in
About this update from Recon Technology, Ltd.
[{"type":"text","content":"BEIJING, April 25, 2019 /PRNewswire/ -- Recon Technology, Ltd. (Nasdaq: RCON) (\"Recon\" or the \"Company\"), a China-based independent solutions integrator in the oilfield service, environmental protection, electric power and coal chemical industries, today announced the Company is now managing the operations of its variable interest entities (\"VIEs\") solely through its Beijing subsidiary, Recon Hengda Technology (Beijing) Co., Ltd. (\"Recon BJ\"). \nIn order to streamline its operations, the Company signed new VIE agreements that are similar to the old VIE agreements with its VIEs, Nanjing Recon Technology Co., Ltd. and Beijing BHD Petroleum Technology Co., Ltd. The Company took this action because it has been solely operating through its Beijing office in recent years. Upon the effectiveness of the new VIE agreements, the old VIE agreements signed with Recon Hengda Technology (Beijing) Co., Ltd. (\"Recon BJ\") were terminated. Then Recon JN was dissolved. The Board of Directors approved the VIE transfer and the dissolution as disclosed on February 21, 2019. Before and after the VIE transfer and the dissolution, the Company effectively controls its VIEs. Recon BJ is a wholly owned subsidiary of the Company located in Beijing, China and prior to dissolution Recon JN was a wholly owned subsidiary of the Company located in Shandong, China. \nManagement Commentary\nMr. Shenping Yin, co-founder and CEO of Recon stated, \"We are very pleased to have concluded this reorganization to manage our operation more efficiently. In late 2016 we set up our wholly owned subsidiary, Recon BJ, in Beijing to accommodate our management team, which was entirely located in Beijing. As a result, maintaining the office for our wholly owned subsidiary, Recon JN, in Jining, Shandong, was suboptimal and our Board of Directors agreed to dissolve Recon JN in February 2019. We completed the transfer of contractual relations from Recon JN to Recon BJ on April 1, 2019 and the dissolution of Recon JN on April 10, 2019. The transfer was done smoothly and the continuance of our operation was not interrupted. We will keep conducting our business as always and expect no negative impact of the transfer on our operation.\" \nAbout Recon Technology, Ltd.\nRecon Technology, Ltd. (RCON) is China's first non-state-owned oil and gas field service company listed on NASD...