BEIJING, Oct. 30, 2024 /PRNewswire/ — Recon Era, Ltd (NASDAQ: RCON) (“Recon” or the “Company”), a China-based isolated answers integrator within the oilfield provider and environmental coverage, electrical energy and coal chemical industries, these days introduced its monetary effects for fiscal 12 months 2024.

Fiscal Moment Ended June 30, 2024 Monetary Highlights:

• Overall income building up via roughly RMB1.7 million ($0.2 million) or 2.6% to RMB68.8 million ($9.5 million) for the 12 months ended June 30, 2024 from RMB67.1million ($9.2 million) for a similar length in 2023.
• Rude benefit higher to RMB20.9 million ($2.9 million) for the 12 months ended June 30, 2024, from RMB18.9 million ($2.6 million) for a similar length in 2023.
• Rude margin higher to 30.3% for the 12 months ended June 30, 2024 from 28.1% for a similar length in 2023.
• Internet loss was once RMB51.4 million ($7.1 million) for the 12 months ended June 30, 2024, a scale down of RMB10.0 million ($1.4 million) from web lack of RMB61.4 million ($8.5 million) for a similar length of 2023.

Control Remark

Mr. Shenping Yin, Founder and CEO of Recon mentioned, “Fiscal 12 months ended 2024 was once a 12 months of exchange, problem and alternative for Recon. Because the economic system regularly recovers, our established trade quantity has regularly higher, well-known to an general get up in income via the top of fiscal 12 months 2024.Our improper margins progressed because of progressed control potency and the growth of unutilized trade with top improper margins.

We imagine that China’s funding and insist within the oil business is not going to scale down within the similar day, and we imagine that there are nonetheless many alternatives for expansion within the oil business. Recon will proceed to have the benefit of this pattern. We predict a vital building up within the quantity of commercial within the oilfield services and products area within the coming 12 months. We also are increasing our trade focal point from oilfield provider area to broader power sectors, together with carbon-zero alternatives and backup fabrics for number one petroleum merchandise. We’re actively exploring the chemical recycling trade of low-value plastics in keeping with wastefulness remedy and recycling, and feature reached initial cooperation guarantees and marketplace growth and gross sales intentions with key upstream and downstream shoppers. Our power has at all times been to maximise the long-term advantages for our corporate and our shareholders in keeping with our revel in and sources within the petrochemical and effort industries.”

Fiscal Moment Ended 2024 Monetary Effects:

Income

Overall revenues for the 12 months ended June 30, 2024 had been roughly RMB68.8 million ($9.5 million), an building up of roughly RMB1.7 million ($0.2 million) or 2.6% from RMB67.1 million ($9.2 million) for a similar length in 2023.

• Income from automation product and instrument higher via RMB0.2 million ($0.03 million) or 0.8%. For the 12 months ended June 30, 2024, suffering from transient adjustments in marketplace participation necessities from electrical energy business shoppers, our trade within the digital automation area disrupted and income from non-oilfield shoppers diminished via RMB5.8 million ($0.8 million). Alternatively, because of the fix of oilfield manufacturing, gross sales to oilfield shoppers higher via RMB6.0 million ($0.8 million). Thus, our income from automation product and instrument trade higher fairly general. We look forward to that income from the digital trade will resume and income will recuperate.
• Income from apparatus and equipment higher via RMB4.2 million ($0.6million) or 26.0%. The rise in income was once pushed via the continuing expansion of our oilfield trade and the a hit growth of our offshore oilfield services and products.
• Income from oilfield environmental coverage diminished via RMB1.5 million ($0.2 million) or 8.1%. principally because of a discount within the quantity of oily wastewater equipped via shoppers as their manufacturing depth diminished. As well as, Gansu BHD’ s hazardous wastefulness operation allow expired in July 26, 2023, and the renewal procedure took longer than anticipated because of converting govt rules. Manufacturing turns on weren’t allowed all the way through this era. Consequently, income from oily sludge remedy was once diminished.
• Income from platform outsourcing services and products diminished via RMB1.1 million ($0.2 million) or 22.4%. The scale down was once principally because of diminished call for from former gasoline station shoppers as they upgraded their very own on-line methods and restricted cooperation with 1/3 events. Right through the length, we shifted our target audience from gas customers to diesel customers and established partnerships with a number of main on-line freight platform shoppers. We predict the rise in income from this area to regularly method a unutilized trade bottom for the Corporate.
• As of June 30, 2024, the manufacturing facility for the chemical recycling continues to be underneath building and has no longer began manufacturing and gross sales but.

Price of income

Price of revenues diminished from RMB48.2 million for the 12 months ended June 30, 2023 to RMB48.0 million ($6.6 million) for a similar length in 2024.

For the years ended June 30, 2023 and 2024, value of income from automation product and instrument was once roughly RMB23.6 million ($3.2 million) and RMB23.9 million ($3.3 million), respectively, representing building up of roughly RMB0.3 million ($0.04 million) or 1.1%. The rise in value of income from automation product and instrument was once essentially on account of higher income of automation merchandise and instrument.

For the years ended June 30, 2023 and 2024, value of income from apparatus and equipment was once roughly RMB8.9 million ($1.2 million) and RMB14.1 million ($1.9 million), respectively, representing an building up of roughly RMB5.2million ($0.7million) or 57.6%. The rise in value of income from apparatus and equipment was once essentially on account of higher income of kit and equipment.

For the years ended June 30, 2023 and 2024, value of income from oilfield environmental coverage was once roughly RMB14.0 million ($1.9 million) and RMB9.2 million ($1.3 million), respectively, representing a scale down of roughly RMB4.7 million ($0.6 million) or 33.8%. The scale down in the price of income, principally drawn from wastewater and oily sludge therapies, was once in layout with scale down in income connected to our oily sludge remedy.

For the years ended June 30, 2023 and 2024, value of income from platform outsourcing services and products was once roughly RMB1.7 million ($0.2 million) and RMB0.6 million ($0.1 million), respectively, representing a scale down of roughly RMB1.1 million ($0.2 million) or 63.2%. The principle causes for the scale down in value of income are the corporate’s efforts to shed prices thru group of workers layoffs and wage discounts, in addition to the discontinuation of server leasing because of the transition from operational to repairs services and products.

For the years ended June 30, 2023 and 2024, value of income from chemical recycling was once null and RMB0.1 million ($0.02 million), which was once trade and gross sales connected tax. As of June 30, 2024, the manufacturing facility for the chemical recycling continues to be underneath building and has no longer began manufacturing and gross sales but.

Rude benefit

Rude benefit higher to RMB20.9 million ($2.9 million) for the 12 months ended June 30, 2024 from RMB18.9 million ($2.6 million) for a similar length in 2023. Our improper benefit as a proportion of income higher to 30.3% for the 12 months ended June 30, 2024 from 28.1% for a similar length in 2023.

• For the years ended June 30, 2023 and 2024, our improper take advantage of automation product and instrument was once roughly RMB3.0 million ($0.4 million) and RMB3.0 million ($0.4 million), respectively, representing a scale down in improper benefit of roughly RMB0.1 million ($0.01million) or 1.7%. The improper margin for automation product and instrument has remained rather solid on this length.
• For the years ended June 30, 2023 and 2024, improper take advantage of apparatus and equipment was once roughly RMB7.3 million ($1.0 million) and RMB6.4 million ($0.9 million), respectively, representing a negligible scale down of roughly RMB0.9 million ($0.1 million) or 12.7%. The cause of the scale down in improper margin is that oilfield shoppers have followed a cheap working style and tightly managed budgets, which has narrowed the full margins of the marketplace. Because of this, we needed to lodge to decrease margins to store trade.
• For the years ended June 30, 2023 and 2024, improper take advantage of oilfield environmental coverage was once roughly RMB5.2 million ($0.7 million) and RMB8.3 million ($1.1 million), respectively, representing an building up of RMB3.2 million ($0.4 million) or 61.5%. We’ve performed the residual oil fix provider, The trade layout assists oilfield firms recuperate residual oils, together with elderly oil and spilled oil thru our distinctive system and kit to support the profitability for oilfield firms. This trade contributes a rather top improper margin.
• For the years ended June 30, 2023 and 2024, improper take advantage of platform outsourcing services and products was once roughly RMB3.4 million ($0.5 million) and RMB3.3 million ($0.5 million), respectively, representing a scale down of roughly RMB0.05 million ($0.01 million) or 1.5 %, The improper margin for platform outsourcing services and products has remained rather solid on this length

For the years ended June 30, 2023 and 2024, improper benefit losses from chemical recycling was once null and RMB0.1 million ($0.02 million), respectively. As of June 30, 2024, the manufacturing facility for the chemical recycling remainder underneath building and has no longer began manufacturing and gross sales but.

Running bills

Promoting bills diminished via 2.5%, or RMB0.3 million ($0.04 million), from RMB10.6 million ($1.5 million) within the 12 months ended June 30, 2023 to RMB10.4 million ($1.4 million) in the similar length of 2024.

Basic and administrative bills diminished via 17.0%, or RMB13.0 million ($1.8 million), from RMB76.8 million ($10.6 million) within the 12 months ended June 30, 2023 to RMB63.8 million ($8.8 million) in the similar length of 2024.

Internet fix of credit score losses of RMB9.0 million ($1.2 million) for the 12 months ended June 30, 2023 as in comparison to web provision for credit score losses of RMB4.1 million ($0.6 million) for a similar length in 2024.

Analysis and building bills remained rather solid with an building up via 62.3%, or RMB5.5 million ($0.8 million) from RMB8.8 million ($1.2 million) for the 12 months ended June 30, 2023 to RMB14.3 million ($2.0 million) for a similar length of 2024.

Impairment lack of detail and kit and alternative long-lived property diminished by100.0%, or RMB1.0 million ($0.1 million), from RMB1.0 million ($0.1 million) within the 12 months ended June 30, 2023 to null in the similar length of 2024.

Loss from operations

Loss from operations was once RMB71.6 million ($9.9 million) for the 12 months ended June 30, 2024, in comparison to a lack of RMB69.3 million  ($9.5 million) for a similar length of 2023. This RMB2.3 million ($0.3 million) building up in loss from operations was once essentially because of the rise in working expense as mentioned above.

Trade in honest cost adjustments of warrant legal responsibility

The Corporate labeled the warrants issued in reference to familiar percentage providing as liabilities at their honest cost and changed the warrant device to honest cost at every reporting length. This legal responsibility is matter to re-measurement at every stability sheet month till exercised, and any exchange in honest cost is known in our remark of operations. Acquire in exchange in honest cost of warrant legal responsibility was once RMB6.1 million  ($0.8 million) and RMB0.8 million ($0.1million) for the years ended June 30, 2023 and 2024, respectively. On December 14, 2023, we redeemed an mixture of 17,953,269 (997,404 warrants publish 2024 Opposite Crack) warrants from the Dealers, and the excess between the repurchase worth and honest cost of the warrants, a excess of RMB1.7 million ($0.2 million), was once known as loss in honest cost adjustments of warrant legal responsibility. The aforementioned achieve of RMB0.8 million ($0.1 million) from honest cost adjustments of warrant legal responsibility and the lack of RMB1.7 million ($0.2 million) from honest cost adjustments of warrant legal responsibility mix to lead to a web lack of RMB0.9 million ($0.1 million) in honest cost adjustments of warrant legal responsibility.

Impairment loss on commendation and intangible property

The Corporate known the profusion of acquire worth over the honest cost of property got and liabilities assumed of the trade got was once recorded as commendation and honest cost of recognized intangible property, which is buyer courting because of the step acquisition of FGS. Along with the preparation of our consolidated monetary remark for years ended June 30, 2023 and 2024, the control carried out analysis at the impairment of commendation and intangible property and recorded an impairment loss on commendation and intangible property of RMB10.0 million ($1.4 million) and 0 for the years ended June 30, 2023 and 2024, respectively. As of June 30, 2023, commendation and intangible property of FGS had absolutely amassed for impairment. The impairment was once principally because of the verdict of the foremost shoppers to create their very own self sufficient unified machine and to noticeably shed the procurement of third-party services and products. This variation has had a vital and damaging affect on FGS’s trade style and undertaking cost. We’re lately operating to seek out unutilized techniques and channels of cooperation to support the FGS trade.

Hobby source of revenue

Internet curiosity source of revenue was once RMB21.8 million ($3.0 million) for the 12 months ended June 30, 2024, in comparison to web curiosity source of revenue of RMB11.1 million ($1.5 million) for a similar length of 2023. The RMB10.7 million ($1.5 million) building up in web curiosity source of revenue was once essentially because of the higher interest-bearing loans to 3rd events and higher temporary investments we invested all the way through the 12 months ended June 30, 2024.

Alternative source of revenue (bills), web.

Alternative web bills was once RMB0.7 million ($0.1 million) for the 12 months ended June 30, 2024, in comparison to alternative web source of revenue of RMB0.7 million ($0.1 million) for a similar length of 2023. The RMB1.3 million ($0.2 million) scale down alternative web source of revenue was once essentially because of a scale down in subsidy source of revenue of RMB0.2 million. The scale down in alternative web source of revenue was once additionally on account of an building up in foreign currency echange transaction lack of RMB1.1 million ($0.2 million) because of the fluctuation of alternate fee of RMB towards US greenbacks all the way through the 12 months ended June 30, 2024 in comparison to the similar length of 2023.

Internet loss

Because of the criteria described above, web loss was once RMB51.4 million ($7.1 million) for the 12 months ended June 30, 2024, a scale down of RMB10.0 million ($1.4 million) from web lack of RMB61.4 million ($8.5 million) for a similar length of 2023.

Money and temporary funding

As of June 30, 2024, we had coins within the quantity of roughly RMB110.0 million ($15.1million) and temporary funding in warehouse fastened source of revenue product of roughly RMB88.1 million ($12.1 million). As of June 30, 2023, we had coins within the quantity of roughly RMB104.1 million ($14.3 million) and temporary funding in warehouse fastened source of revenue product of roughly RMB184.2 million ($25.3 million).

About Recon Era, Ltd (“RCON”)

Recon Era, Ltd (NASDAQ: RCON) is the Population’s Republic of China’s first NASDAQ-listed non-state owned oil and gasoline farmland provider corporate. Recon provides China’s greatest oil exploration firms, Sinopec (NYSE: SNP) and The China Nationwide Petroleum Company (“CNPC”), with complex computerized applied sciences, environment friendly collecting and transportation apparatus and reservoir stimulation measure for expanding petroleum extraction ranges, decreasing impurities and reducing manufacturing prices. Over time, RCON has taken well-known positions inside a number of segmented markets of the oil and gasoline filed provider business. RCON additionally has evolved solid long-term cooperation courting with its main purchasers. For alternative data please seek advice from: http://www.recon.cn/. 

Ahead-Having a look Statements

Recon contains “forward-looking statements” inside the that means of the federal securities rules all through this press let fall. A reader can establish forward-looking statements as a result of they aren’t restricted to historic truth or they usefulness phrases corresponding to “scheduled,” “may,” “will,” “could,” “should,” “would,” “expect,” “believe,” “anticipate,” “project,” “plan,” “estimate,” “forecast,” “goal,” “objective,” “committed,” “intend,” “continue,” or “will likely result,” and alike expressions that fear Recon’s technique, plans, intentions or ideals about day occurrences or effects. Ahead-looking statements are matter to dangers, uncertainties and alternative elements that can exchange at any presen and would possibly purpose latest effects to range materially from those who Recon anticipated. Many of those statements are derived from Recon’s working budgets and forecasts, which can be in keeping with many striking guesses that Recon believes are affordable, or are in keeping with diverse guesses about sure plans, actions or occasions which we predict will or would possibly happen going forward. Alternatively, it is rather tough to expect the impact of recognized elements, and Recon can’t look forward to all elements that would have an effect on latest effects that can be noteceable to an investor. All forward-looking data must be evaluated within the context of those dangers, uncertainties and alternative elements, together with the ones elements disclosed underneath “Risk Factors” in Recon’s most up-to-date Annual Record on Method 20-F and any next half-year monetary filings on Method 6-Ok filed with the Securities and Change Fee. All forward-looking statements are certified of their entirety via the cautionary statements that Recon makes from presen to presen in its SEC filings and crowd communications. Recon can’t safeguard the reader that it is going to notice the effects or trends Recon anticipates, or, even though considerably learned, that they’re going to end result within the aftereffects or have an effect on Recon or its operations in the best way Recon expects. Ahead-looking statements discuss best as of the month made. Recon undertakes incorrect legal responsibility to replace or revise any forward-looking statements to mirror occasions or cases coming up next the month on which they had been made, apart from as another way required via regulation. Because of those dangers and uncertainties, readers are cautioned to not park undue reliance on any forward-looking statements integrated herein or that can be made somewhere else from presen to presen via, or to the behalf of, Recon.

For more info, please touch:
The Corporate
Ms. Liu Jia
Leading Monetary Officer
Recon Era, Ltd
Telephone: +86 (10) 8494-5799
Electronic mail: [email protected] 

SOURCE Recon Era, Ltd

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