BEIJING, May 16, 2016 /PRNewswire/ -- Recon
Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company") a
leading independent oilfield services provider operating primarily
in China, today reported
its financial results for the third quarter of
fiscal year 2016, which ended March 31, 2016.
Q3 FY2016 Financial Highlights:
- Total revenues for the third quarter of FY2016 were
RMB 4.5 million ($0.7 million), a decrease of 77.3% from the same
period of last fiscal year.
- Gross profit for the third quarter of FY2016 was RMB 1.7 million ($0.3
million), a decrease of 72.8% from the same period of last
fiscal year. Gross margin was 37.5% for the third quarter of
FY2016, compared to 31.2% for the same
period last fiscal year.
- Operating loss was RMB 8.2
million ($1.3 million) for the
third quarter of FY2016, compared to operating income of
RMB0.4 million for the same period last fiscal year.
- Net loss attributable to Recon for the third quarter of FY2016
was RMB 9.6 million ($1.5 million), or RMB
1.66 ($0.26) per diluted
share, compared to RMB 1.5 million,
or RMB 0.32 per diluted share, for the same period last fiscal year.
- Adjusted EBITDA (non-GAAP) was negative RMB 4.9 million ($0.7
million) for the third quarter of FY2016, compared to
RMB 1.7 million for the same
period last fiscal year.
- Adjusted net loss attributable to Recon was RMB 6.7 million ($1.0
million), or RMB 1.16
($0.18) per diluted share, for the third quarter of FY2016,
compared to adjusted net loss attributable to Recon of RMB 0.6 million, or RMB
0.12 per diluted share, for the same period last fiscal year.
Mr. Shenping
Yin, Chairman and CEO of Recon stated, "Affected by
unfavorable oil prices and tough market competition, our business
has remained sluggish. We cannot determine when this market
situation will recover, but our management team is working to
expand into new markets based on our long-term business
relationships and good reputation in the industry. "
Q3 FY2016 Financial Results
Revenues
For the three months ended March 31,
2016, total revenues decreased by 77.3% to RMB 4.5 million ($0.7
million) from RMB 20.0 million
for the same period last fiscal year mainly as a result of weak
demand from our clients, affected by global unfavorable oil prices.
Revenues from non-related party hardware and software sales
decreased by RMB 13.8 million, or
75.3%, to RMB 4.5 million
($0.7 million) for the three months
ended March 31, 2016, compared to
RMB 18.3 million for the same period
last fiscal year. The Company booked no revenues from related-party
hardware and software sales for the three months ended March 31, 2016, as compared to RMB 1.6 million for the same period last fiscal
year.
Gross profit and gross margin
Cost of revenues decreased by RMB 10.9
million, or 79.4%, to RMB 2.8
million ($0.4 million) for the
three months ended March 31, 2016
from RMB 13.8 million for the same
period last fiscal year.
Gross profit decreased by RMB 4.5
million, or 72.8%, to RMB 1.7
million ($0.3 million) for the
three months ended March 31, 2016
from RMB 6.2 million for the same
period of last fiscal year. Overall gross margin as a percentage of
revenue was 37.5% for the three months ended March 31, 2016, compared to 31.2% for the same
period of last fiscal year.
Operating income (loss) and operating (loss)
margin
Selling and distribution expenses decreased by RMB 0.3 million, or 26.2%, to RMB 0.8 million ($0.1
million) for the three months ended March 31, 2016 from RMB
1.1 million for the same period last fiscal year. General
and administrative expenses increased by RMB
3.7 million, or 88.5%, to RMB 7.9
million ($1.2 million) for the
three months ended March 31, 2016
from RMB 4.2 million for the same
period last fiscal year. Research and development expenses
increased by RMB 0.7 million, or
125.7%, to RMB 1.2 million
($0.2 million) for the three months
ended March 31, 2016 from
RMB 0.5 million for the same period
last fiscal year as a result of increased research and development
effort on automation platform system. Total operating expenses
increased by RMB 4.1 million, or
70.2%, to RMB 9.9 million
($1.5 million) for the three months
ended March 31, 2016 from
RMB 5.8 million for the same period
last fiscal year.
Operating loss was RMB 8.2 million
($1.3 million) for the three months
ended March 31, 2016, compared to
operating income of RMB 0.4 million
for the same period last fiscal year. Operating loss margin was
181.6% for the three months ended March, 2016, compared to
operating profit margin of 2.0% for the same period last fiscal
year.
Net loss
Net loss to our shareholders for the three months ended
March 31, 2016 was RMB 9.6 million ($1.5
million), or RMB 1.66
($0.26) per diluted share, compared
to net loss of RMB 1.5 million, or
RMB0.32 per diluted share, for the
same period last fiscal year.
Non-GAAP Measures
Adjusted EBITDA (non-GAAP), which we define as net income (loss)
adjusted for income tax expense (benefit), interest expense, change
in fair value of warrants liability, restricted shares issued for
consulting services, non-cash stock compensation expense,
depreciation and amortization, was negative RMB 4.9 million ($0.7
million) for the three months ended March 31, 2016, compared to RMB 1.7 million for the same period last fiscal year. Adjusted net loss
attributable to our shareholders was RMB 6.7
million ($1.0 million), or
RMB 1.16 ($0.18) per diluted share, for the three months
ended March 31, 2016, compared to
RMB 0.6 million, or RMB 0.12 per diluted share, for the same
period last fiscal year.
Year-to-Date (Nine Months) FY2016 Financial
Results
Revenues
Total revenues for the nine months ended March 31, 2016 decreased by RMB 8.7 million, or 19.0%, to RMB 37.0 million ($5.7
million) from RMB 45.7 million
for the same period last fiscal year. This decrease was mainly due
to decreased sales of furnaces and consignment stock products for
oilfield projects.
Revenues from hardware and software to non-related parties
decreased by RMB 7.2 million, or
16.8%, to RMB 35.8 million
($5.6 million) for the nine months
ended March 31, 2016 from
RMB 43.1 million for the same period
last fiscal year, mainly due to the decrease in sales of
furnaces and automation products, affected by low demand from
clients. Revenues from service increased to RMB 1.1 million ($0.2
million) for the nine months ended March 31, 2016 from RMB
0.1 million for the same period last fiscal year. The
Company didn't book any revenues from sales of hardware and
software to related parties for the nine months ended March 31, 2016, versus RMB
2.4 million for the same period last fiscal year.
Gross profit and gross margin
Cost of revenues decreased by RMB 0.7
million, or 2.3%, to RMB 29.1
million ($4.5 million) for the
nine months ended March 31, 2016 from
RMB 29.8 million for the same period
last fiscal year.
Gross profit decreased by RMB 8.0
million, or 50.4%, to RMB 7.9
million ($1.2 million) for the
nine months ended March 31, 2016 from
RMB 15.8 million for the same period
last fiscal year. Overall gross margin was 21.3% for the nine
months ended March 31, 2016, compared
to 34.7% for the same period last fiscal year. The decrease in
overall gross margin was mainly due to the decrease in software
sales with high margins and fierce competition of our equipment
sales.
Operating income (loss) and operating (loss)
margin
Selling and distribution expenses increased by RMB 0.4 million, or 12.3%, to RMB 3.4 million ($0.5
million) for the nine months ended March 31, 2016 from RMB
3.0 million for the same period last fiscal year. General
and administrative expenses increased by RMB
6.9 million, or 57.4%, to RMB 18.9
million ($2.9 million) for the
nine months ended March 31, 2016 from
RMB 12.0 million for the same period
last fiscal year. Research and development expenses increased by
RMB 3.3 million, or 135.6%, to
RMB 5.8 million ($0.9 million) for the nine months ended
March 31, 2016 from RMB 2.4 million for the same period last fiscal
year as a result of increased research and development effort on
downhole service tools and automation platform system. Total
operating expenses increased by RMB 10.6
million, or 60.4%, to RMB 28.1
million ($4.3 million) for the
nine months ended March 31, 2016 from
RMB 17.5 million for the same period
last fiscal year.
Operating loss was RMB 20.2
million ($3.1 million) for the
nine months ended March 31, 2016,
compared to RMB 1.7 million for the
same period last fiscal year. Operating loss margin was 54.6% for
the nine months ended March 2016,
compared to 3.6% for the same period last fiscal year.
Net loss
Net loss to our shareholders for the nine months ended
March 31, 2016 was RMB 21.0 million ($3.2
million), or RMB3.75
($0.58) per diluted share, compared
to net loss of RMB 0.4 million, or
RMB 0.08 per diluted share, for the
same period last fiscal year.
Non-GAAP Measures
Adjusted EBITDA (non-GAAP), which we define as net income (loss)
adjusted for income tax expense (benefit), interest expense, change
in fair value of warrants liability, restricted shares issued for
consulting services, non-cash stock compensation expense,
depreciation and amortization, was negative RMB 13.0 million ($2.0
million) for the nine months ended March 31, 2016, compared to RMB 2.9 million for the same period last fiscal
year. Adjusted net loss attributable to our shareholders was
RMB15.0 million ($2.3 million), or RMB
2.68 ($0.41) per diluted
share, for the nine months ended March 31,
2016, compared to net income of RMB
0.7million, or RMB 0.15 per
diluted share, for the same period last fiscal year.
Financial Position
As of March 31, 2016, the Company
had cash of RMB 2.6 million
($0.4 million), short-term bank loans
of RMB 7.0 million ($1.1 million), and short-term borrowings from
related parties of RMB 8.6 million
($1.3 million), compared to
RMB12.3 million, RMB 7.0 million, and RMB
16.9 million, respectively, at June
30, 2015. Working capital as of March
31, 2016 was RMB 64.3 million
($10.0 million) as compared to
RMB 72.4 million at June 30, 2015. Net cash used in operating
activities was RMB 1.3 million
($0.2 million) for the nine-month
ended March 31, 2016, compared to net
cash used in operating activities of RMB
16.2 million for the same period last fiscal year. Net cash
used in investing activities was RMB 0.4
million ($0.06 million) for
the nine months ended March 31, 2016,
compared to RMB 0.16 million for the
same period last fiscal year. Net cash used in financing activities
was RMB 8.0 million ($1.2 million) for the nine months ended
March 31, 2016, compared to net cash
provided by financing activities of RMB 3.0
million for the same period of last fiscal year. During the
nine-month period ended March 31,
2016, we repaid RMB 16.7
million ($2.6 million) of
short-term borrowings to two related parties, repaid RMB 0.50 million ($0.08
million) short-term bank loans, and received RMB 8.5 million ($1.3
million) from one related party. We also issued 15,874
shares of common stocks through an at-the-market offering and
received net proceeds of RMB 0.17
million ($0.03 million) during
the nine-month period ended March 31,
2016.
Recent Development
On May 2, 2016, the Company filed
an 8K/A for QHHY's audited FS for fiscal year 2014 and fiscal year
2015, with a review report for the quarter ended December 31, 2015.
On February 12, 2016, the Company
filed a current report on Form 8-K/A for QHHY's audited financial
statements for fiscal year 2014 and fiscal year 2015, with a review
report for the quarter ended September 30,
2015.
On February 2, 2016, Beijing BHD
Petroleum Technology Co., Ltd. ("BHD"), a wholly-owned subsidiary
of the Company, received two orders for a total of
RMB 2.1 million (~US$0.3 million) from PetroChina's oilfield
companies. The first order, dated January
12, 2016, is to supply two heat exchanger units, a major
component of furnaces, to PetroChina's Jilin Oilfield for
RMB 650 thousand (~US$0.1 million), with a scheduled delivery date
of no later than March 15, 2016. The
second order, dated January 21, 2016,
is to supply two furnaces to PetroChina's Huabei Oilfield for
RMB 1.47 million (~US$0.2 million), with a scheduled delivery date
of February 29, 2016.
On January 20, 2016, Nanjing Recon
Technology Co., Ltd. ("Nanjing Recon"), a subsidiary of the
Company, obtained qualifications to provide services for some
state-owned electric companies and, as a result, has participated
in bidding projects, including projects for China Huadian Corp.
On January 12, 2016, BHD executed
an agreement (the "Agreement") with Qinghai Oilfield, a PetroChina
subsidiary, to sell chemical agents (the "Chemicals") to Qinghai
Oilfield. The Chemicals, including Ion Modifiers and Water Quality
Stabilizers, are designed and tested by BHD and are to be used for
wastewater treatment at the Qinghai Oilfield. This Agreement, which
is valued at RMB 3.98 million
(~$0.6 million), is expected to be
completed by the end of fiscal year 2016.
On December 14, 2015, BHD won a
major bidding contract with PetroChina and was deemed a Class A
Furnace Supplier to all PetroChina's oilfield companies. With this
bidding and qualification, BHD will participate in PetroChina's
furnace procurement program, which was worth over RMB 2.9 billion (approximately $457 million) during the period Oct. 2015 to Sep.
2017. The Company also announced that BHD has secured a
RMB 3.22 million (~$0.5 million) contract to supply five furnaces
to PetroChina's Huabei Oilfield under this bidding process.
On December 1, 2015, the Company
entered into a share purchase agreement to acquire 100% of the
equity interest in Qinghai Huayou Downhole Technologies Co., Ltd. (
"QHHY"), a PRC corporation and oilfield service provider in
Qinghai province.
About Recon Technology, Ltd.
Recon Technology, Ltd. is China's first independent
oil and gas field service company listed on NASDAQ
(RCON). Working closely with leading global partners, Recon
has been focusing on supplying China's largest oil and
gas exploration companies, including Sinopec and China National
Petroleum Corporation, with advanced automated technologies,
efficient gathering and transportation equipment and reservoir
stimulation measures. The solutions Recon provides are aimed at
increasing gas and petroleum extraction levels, reducing
impurities, improving safety and lowering production costs. For
additional information, please visit www.recon.cn.
Cautionary Statements
Statements made in this release with respect to Recon's
current plans, estimates, strategies and beliefs and other
statements that are not historical facts are forward-looking
statements about the future performance of Recon. Forward-looking
statements include, but are not limited to, those statements using
words such as "believe," "expect," "plans," "strategy,"
"prospects," "forecast," "estimate," "project," "anticipate,"
"aim," "intend," "seek," "may," "might," "could" or "should," and
words of similar meaning in connection with a discussion of future
operations, financial performance, events or conditions. From time
to time, oral or written forward-looking statements may also be
included in other materials released to the public. These
statements are based on management's assumptions, judgments and
beliefs in light of the information currently available to it.
Recon cautions investors that a number of important risks and
uncertainties could cause actual results to differ materially from
those discussed in the forward-looking statements, including but
not limited to, product and service demand and acceptance, changes
in technology, economic conditions, the impact of competition and
pricing, government regulation, and other risks contained in
reports filed by the company with the Securities and Exchange
Commission. Therefore investors should not place undue reliance on
such forward-looking statements. Actual results may differ
significantly from those set forth in the forward-looking
statements.
All such forward-looking statements, whether written or oral,
and whether made by or on behalf of the company, are expressly
qualified by the cautionary statements and any other cautionary
statements which may accompany the forward-looking statements. In
addition, the company disclaims any obligation to update any
forward-looking statements to reflect events or circumstances after
the date hereof.
Contact:
Recon Technology, Ltd.
Jia Liu, Chief Financial
Officer
Tel: +86-10-8494-5799
Email: info@recon.cn
|
RECON TECHNOLOGY,
LTD
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of Jun
30,
|
|
|
As of Mar
31,
|
|
|
As of Mar
31,
|
|
|
|
2015
|
|
|
2016
|
|
|
2016
|
|
|
|
RMB
|
|
|
RMB
|
|
|
U.S.
Dollars
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash
|
RMB
|
12,344,929
|
|
RMB
|
2,619,943
|
|
$
|
406,234
|
|
Notes
receivable
|
|
4,205,530
|
|
|
1,498,710
|
|
|
232,382
|
|
Trade accounts
receivable, net
|
|
52,186,397
|
|
|
50,248,411
|
|
|
7,791,236
|
|
Trade accounts
receivable- related parties, net
|
|
4,769,800
|
|
|
-
|
|
|
-
|
|
Inventories,
net
|
|
10,845,007
|
|
|
10,436,502
|
|
|
1,618,225
|
|
Other receivables,
net
|
|
18,064,568
|
|
|
22,358,526
|
|
|
3,466,788
|
|
Other receivables-
related parties
|
|
91,021
|
|
|
-
|
|
|
-
|
|
Purchase advances,
net
|
|
18,622,538
|
|
|
10,425,075
|
|
|
1,616,454
|
|
Purchase advances-
related parties
|
|
394,034
|
|
|
-
|
|
|
-
|
|
Prepaid
expenses
|
|
826,314
|
|
|
590,412
|
|
|
91,548
|
|
Prepaid expenses -
related parties
|
|
420,000
|
|
|
630,000
|
|
|
97,684
|
|
Deferred tax
assets
|
|
1,742,098
|
|
|
-
|
|
|
-
|
|
Total current
assets
|
|
124,512,236
|
|
|
98,807,579
|
|
|
15,320,551
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
2,666,953
|
|
|
2,430,926
|
|
|
376,926
|
|
Long-term trade
accounts receivable, net
|
|
4,440,665
|
|
|
484,265
|
|
|
75,087
|
|
Long-term other
receivable
|
|
2,729,033
|
|
|
692,325
|
|
|
107,348
|
|
Total
Assets
|
RMB
|
134,348,887
|
|
RMB
|
102,415,095
|
|
$
|
15,879,912
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
RMB
|
7,000,000
|
|
RMB
|
7,000,000
|
|
$
|
1,085,381
|
|
Trade accounts
payable
|
|
13,627,088
|
|
|
10,174,308
|
|
|
1,577,571
|
|
Trade accounts
payable- related parties
|
|
3,528,705
|
|
|
-
|
|
|
-
|
|
Other
payables
|
|
2,103,057
|
|
|
2,923,271
|
|
|
453,266
|
|
Other payable-
related parties
|
|
4,309,702
|
|
|
3,650,329
|
|
|
566,000
|
|
Deferred
revenue
|
|
2,285,529
|
|
|
304,335
|
|
|
47,188
|
|
Advances from
customers
|
|
529,700
|
|
|
386,294
|
|
|
59,897
|
|
Accrued payroll and
employees' welfare
|
|
246,789
|
|
|
328,817
|
|
|
50,985
|
|
Accrued
expenses
|
|
199,166
|
|
|
203,109
|
|
|
31,493
|
|
Taxes
payable
|
|
1,153,216
|
|
|
804,818
|
|
|
124,791
|
|
Short-term borrowings
- related parties
|
|
16,916,905
|
|
|
8,557,771
|
|
|
1,326,920
|
|
Deferred tax
liability
|
|
180,186
|
|
|
180,186
|
|
|
27,939
|
|
Total current
liabilities
|
|
52,080,043
|
|
|
34,513,238
|
|
|
5,351,431
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Common stock, ($
0.0185 U.S. dollar par
value, 100,000,000 shares authorized;
5,427,946 and 5,804,005 shares issued and
outstanding as of June 30, 2015 and March 31,
2016, respectively)
|
|
697,217
|
|
|
741,467
|
|
|
114,968
|
|
Additional paid-in
capital
|
|
92,541,687
|
|
|
99,055,188
|
|
|
15,358,941
|
|
Statutory
reserve
|
|
4,148,929
|
|
|
4,148,929
|
|
|
643,310
|
|
Accumulated
deficit
|
|
(23,024,935)
|
|
|
(44,020,117)
|
|
|
(6,825,512)
|
|
Accumulated other
comprehensive loss
|
|
(317,551)
|
|
|
(254,151)
|
|
|
(39,407)
|
|
Total
shareholders' equity
|
|
74,045,347
|
|
|
59,671,316
|
|
|
9,252,300
|
|
Non-controlling
interest
|
|
8,223,497
|
|
|
8,230,541
|
|
|
1,276,181
|
|
Total
equity
|
|
82,268,844
|
|
|
67,901,857
|
|
|
10,528,481
|
|
Total Liabilities
and Equity
|
RMB
|
134,348,887
|
|
RMB
|
102,415,095
|
|
$
|
15,879,912
|
RECON TECHNOLOGY,
LTD
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
LOSS
|
(UNAUDITED)
|
|
|
For the nine
months ended
|
For the three
months ended
|
|
Mar
31,
|
Mar
31,
|
|
|
2015
|
|
|
2016
|
|
2016
|
|
2015
|
|
|
2016
|
|
2016
|
|
|
RMB
|
|
|
RMB
|
|
USD
|
|
RMB
|
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware and
software
|
RMB
|
43,119,915
|
|
RMB
|
35,877,231
|
|
$
|
5,562,922
|
RMB
|
18,358,835
|
|
RMB
|
4,539,099
|
|
$
|
703,807
|
Service
|
|
103,774
|
|
|
1,098,258
|
|
|
170,290
|
|
-
|
|
|
-
|
|
|
-
|
Hardware and software
- related parties
|
|
2,428,173
|
|
|
-
|
|
|
-
|
|
1,660,055
|
|
|
-
|
|
|
-
|
Total
revenues
|
|
45,651,862
|
|
|
36,975,489
|
|
|
5,733,212
|
|
20,018,890
|
|
|
4,539,099
|
|
|
703,807
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware and
software
|
RMB
|
29,782,617
|
|
RMB
|
28,434,196
|
|
$
|
4,408,847
|
RMB
|
13,759,652
|
|
RMB
|
2,839,120
|
|
$
|
440,218
|
Service
|
|
-
|
|
|
676,970
|
|
|
104,967
|
|
-
|
|
|
-
|
|
|
-
|
Hardware and software
- related parties
|
|
27,161
|
|
|
-
|
|
|
-
|
|
10,399
|
|
|
-
|
|
|
-
|
Total cost of
revenues
|
|
29,809,778
|
|
|
29,111,166
|
|
|
4,513,814
|
|
13,770,051
|
|
|
2,839,120
|
|
|
440,218
|
Gross
profit
|
|
15,842,084
|
|
|
7,864,323
|
|
|
1,219,398
|
|
6,248,839
|
|
|
1,699,979
|
|
|
263,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
3,065,098
|
|
|
3,443,464
|
|
|
533,924
|
|
1,109,838
|
|
|
819,116
|
|
|
127,008
|
General and
administrative expenses
|
|
11,987,761
|
|
|
18,865,639
|
|
|
2,925,200
|
|
4,191,030
|
|
|
7,898,857
|
|
|
1,224,752
|
Research and
development expenses
|
|
2,444,020
|
|
|
5,757,141
|
|
|
892,670
|
|
544,063
|
|
|
1,228,105
|
|
|
190,423
|
Operating
expenses
|
|
17,496,879
|
|
|
28,066,244
|
|
|
4,351,794
|
|
5,844,931
|
|
|
9,946,078
|
|
|
1,542,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
(1,654,795)
|
|
|
(20,201,921)
|
|
|
(3,132,396)
|
|
403,908
|
|
|
(8,246,099)
|
|
|
(1,278,594)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
639,473
|
|
|
289,087
|
|
|
44,824
|
|
155,155
|
|
|
164,367
|
|
|
25,486
|
Interest
income
|
|
225,701
|
|
|
147,092
|
|
|
22,807
|
|
68,233
|
|
|
42,373
|
|
|
6,570
|
Interest
expense
|
|
(808,065)
|
|
|
(672,789)
|
|
|
(104,319)
|
|
(339,109)
|
|
|
(198,589)
|
|
|
(30,792)
|
Change in fair value
of warrants liability
|
|
4,068,329
|
|
|
-
|
|
|
-
|
|
(9,188)
|
|
|
-
|
|
|
-
|
Income (loss) from
foreign currency exchange
|
|
(19,081)
|
|
|
(21,032)
|
|
|
(3,261)
|
|
1,799
|
|
|
(20,830)
|
|
|
(3,230)
|
Loss from warrants
redemption
|
|
(1,913,262)
|
|
|
-
|
|
|
-
|
|
(1,913,262)
|
|
|
-
|
|
|
-
|
Other
income
|
|
112,325
|
|
|
9,153
|
|
|
1,419
|
|
35,653
|
|
|
44,323
|
|
|
6,872
|
Other income
(expense)
|
|
2,305,420
|
|
|
(248,489)
|
|
|
(38,530)
|
|
(2,000,719)
|
|
|
31,644
|
|
|
4,906
|
Income (loss)
before income tax
|
|
650,625
|
|
|
(20,450,410)
|
|
|
(3,170,926)
|
|
(1,596,811)
|
|
|
(8,214,455)
|
|
|
(1,273,688)
|
Provision (benefit)
for income tax
|
|
468,005
|
|
|
544,772
|
|
|
84,469
|
|
(180,927)
|
|
|
1,412,945
|
|
|
219,083
|
Net Income
(loss)
|
|
182,620
|
|
|
(20,995,182)
|
|
|
(3,255,395)
|
|
(1,415,884)
|
|
|
(9,627,400)
|
|
|
(1,492,771)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
Less: Net income
attributable to non-controlling interest
|
|
546,071
|
|
|
-
|
|
|
-
|
|
111,398
|
|
|
-
|
|
|
-
|
Net Loss
attributable to Recon Technology, Ltd
|
RMB
|
(363,451)
|
|
RMB
|
(20,995,182)
|
|
$
|
(3,255,395)
|
RMB
|
(1,527,282)
|
|
RMB
|
(9,627,400)
|
|
$
|
(1,492,771)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
182,620
|
|
|
(20,995,182)
|
|
|
(3,255,395)
|
|
(1,415,884)
|
|
|
(9,627,400)
|
|
|
(1,492,771)
|
Foreign currency
translation adjustment
|
|
(2,854)
|
|
|
63,400
|
|
|
9,830
|
|
(7,580)
|
|
|
(59,390)
|
|
|
(9,209)
|
Comprehensive
income (loss)
|
|
179,766
|
|
|
(20,931,782)
|
|
|
(3,245,565)
|
|
(1,423,464)
|
|
|
(9,686,790)
|
|
|
(1,501,980)
|
Less: Comprehensive
income attributable to non-
controlling interest
|
|
545,952
|
|
|
7,044
|
|
|
1,092
|
|
111,032
|
|
|
(6,599)
|
|
|
(1,023)
|
Comprehensive loss
attributable to Recon Technology, Ltd
|
RMB
|
(366,186)
|
|
RMB
|
(20,938,826)
|
|
$
|
(3,246,657)
|
RMB
|
(1,534,496)
|
|
RMB
|
(9,680,191)
|
|
$
|
(1,500,957)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per common share - basic
|
RMB
|
(0.08)
|
|
RMB
|
(3.75)
|
|
$
|
(0.58)
|
RMB
|
(0.32)
|
|
RMB
|
(1.66)
|
|
$
|
(0.26)
|
Earnings (loss)
per common share - diluted
|
RMB
|
(0.08)
|
|
RMB
|
(3.75)
|
|
$
|
(0.58)
|
RMB
|
(0.32)
|
|
RMB
|
(1.66)
|
|
$
|
(0.26)
|
Weighted - average
shares -basic
|
|
4,773,803
|
|
|
5,603,229
|
|
|
5,603,229
|
|
4,839,004
|
|
|
5,804,005
|
|
|
5,804,005
|
Weighted - average
shares -diluted
|
|
4,773,803
|
|
|
5,603,229
|
|
|
5,603,229
|
|
4,839,004
|
|
|
5,804,005
|
|
|
5,804,005
|
RECON TECHNOLOGY,
LTD
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
For the nine
months ended March 31,
|
|
2015
|
|
2016
|
|
2016
|
|
RMB
|
|
RMB
|
|
U.S.
Dollars
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
RMB
|
182,620
|
|
RMB
|
(20,995,182)
|
|
$
|
(3,255,395)
|
Adjustments to
reconcile net income (loss) to net cash
used in operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
369,284
|
|
|
728,092
|
|
|
112,894
|
Gain from disposal
of equipment
|
|
(149,504)
|
|
|
(40,688)
|
|
|
(6,309)
|
Provision for
doubtful accounts
|
|
254,622
|
|
|
4,334,148
|
|
|
672,029
|
Reversal for slow
moving inventories
|
|
-
|
|
|
(95,122)
|
|
|
(14,749)
|
Share based
compensation
|
|
2,023,761
|
|
|
4,134,042
|
|
|
641,001
|
Deferred tax
(benefit) provision
|
|
(50,481)
|
|
|
1,742,098
|
|
|
270,120
|
Change in fair value
of warrants liability
|
|
(4,068,329)
|
|
|
-
|
|
|
-
|
Restricted shares
issued for services
|
|
1,204,903
|
|
|
1,871,722
|
|
|
290,219
|
Loss from warrants
redemption
|
|
1,913,262
|
|
|
-
|
|
|
-
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
(400,000)
|
|
|
2,706,820
|
|
|
419,704
|
Trade accounts
receivable
|
|
(29,115,292)
|
|
|
5,705,680
|
|
|
884,691
|
Trade accounts
receivable-related parties
|
|
18,681,051
|
|
|
4,569,800
|
|
|
708,568
|
Inventories
|
|
(4,791,259)
|
|
|
503,627
|
|
|
78,090
|
Other receivable,
net
|
|
(7,022,533)
|
|
|
(2,566,250)
|
|
|
(397,908)
|
Other receivables
related parties, net
|
|
1,414,433
|
|
|
91,021
|
|
|
14,113
|
Purchase advance,
net
|
|
1,797,628
|
|
|
4,361,022
|
|
|
676,196
|
Purchase
advance-related party, net
|
|
-
|
|
|
394,034
|
|
|
61,097
|
Prepaid
expense
|
|
(1,565,998)
|
|
|
629,622
|
|
|
97,626
|
Prepaid expense -
related party, net
|
|
(132,400)
|
|
|
(210,000)
|
|
|
(32,561)
|
Trade accounts
payable
|
|
6,042,777
|
|
|
(6,981,485)
|
|
|
(1,082,510)
|
Other
payables
|
|
(566,064)
|
|
|
820,214
|
|
|
127,178
|
Other
payables-related parties
|
|
419,379
|
|
|
(659,373)
|
|
|
(102,239)
|
Deferred
revenue
|
|
(1,643,339)
|
|
|
(1,981,194)
|
|
|
(307,193)
|
Advances from
customers
|
|
(405,785)
|
|
|
(143,406)
|
|
|
(22,236)
|
Accrued payroll and
employees' welfare
|
|
(108,066)
|
|
|
82,028
|
|
|
12,719
|
Accrued
expenses
|
|
185,433
|
|
|
67,803
|
|
|
10,513
|
Taxes
payable
|
|
(689,453)
|
|
|
(357,116)
|
|
|
(55,372)
|
Net cash used in
operating activities
|
|
(16,219,350)
|
|
|
(1,288,043)
|
|
|
(199,714)
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(514,009)
|
|
|
(502,658)
|
|
|
(77,939)
|
Proceeds from
disposal of equipment
|
|
356,247
|
|
|
60,000
|
|
|
9,303
|
Net cash used in
investing activities
|
|
(157,762)
|
|
|
(442,658)
|
|
|
(68,636)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
short-term bank loans
|
|
-
|
|
|
500,000
|
|
|
77,527
|
Repayments of
short-term bank loans
|
|
(2,000,000)
|
|
|
(500,000)
|
|
|
(77,527)
|
Proceeds from
short-term borrowings-related parties
|
|
12,550,000
|
|
|
8,525,400
|
|
|
1,321,901
|
Repayment of
short-term borrowings-related parties
|
|
(7,550,000)
|
|
|
(16,748,394)
|
|
|
(2,596,912)
|
Proceeds from sale of
common stock, net of issuance costs
|
|
-
|
|
|
168,319
|
|
|
26,098
|
Net cash provided
by (used in) financing activities
|
|
3,000,000
|
|
|
(8,054,675)
|
|
|
(1,248,913)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash and cash equivalents
|
|
(51,605)
|
|
|
60,390
|
|
|
9,362
|
|
|
|
|
|
|
|
|
|
Net decrease in
cash
|
|
(13,428,717)
|
|
|
(9,724,986)
|
|
|
(1,507,901)
|
Cash at beginning
of period
|
|
18,094,586
|
|
|
12,344,929
|
|
|
1,914,135
|
Cash at end of
period
|
RMB
|
4,665,869
|
|
RMB
|
2,619,943
|
|
$
|
406,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Cash paid during
the period for interest
|
RMB
|
808,065
|
|
RMB
|
672,789
|
|
$
|
104,319
|
Cash paid during
the period for taxes
|
RMB
|
616,225
|
|
RMB
|
142,477
|
|
$
|
22,092
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/recon-technology-ltd-reports-fiscal-year-2016-third-quarter-financial-results-300269613.html
SOURCE Recon Technology, Ltd.