BEIJING, Sept. 28, 2017 /PRNewswire/ -- Recon
Technology, Ltd. (NASDAQ:RCON), ("Recon" or the "Company"), a
China's leading independent
solutions integrator operating in oilfield service, electric power
and coal chemical industries, today announced its financial results
for fiscal year ended June 30,
2017.
Fiscal Year 2017 Financial Highlights (all comparisons to the
prior fiscal year):
- Revenues increased 40.5% to a record RMB60.1 million (approximately $8.9 million) for the year ended June 30, 2017, from RMB42.7 million.
- During fiscal year 2017, the Company's oilfield waste water
treatment business continued to expand rapidly, with revenue of
RMB11.0 million (approximately
$1.6 million) increasing 371.1%
compared to RMB2.3 million.
- Gross profit was approximately RMB16.0
million (approximately $2.4
million) for the year ended June 30,
2017, compared to approximately RMB7.2 million.
- Gross margins improved to 26.6% in fiscal year 2017 from
17.0%
- Operating loss narrowed considerably to RMB30.6 million (approximately $4.5 million) for fiscal year 2017, compared to
operating loss of RMB39.9
million.
- Net loss attributable to Recon for fiscal year 2017 was
RMB31.4 million (approximately
$4.6 million), or RMB4.90 ($0.72) per
diluted share, compared to net loss attributable to Recon of
RMB40.9 million, or RMB7.23 per diluted share, for fiscal year
2016.
Management Commentary
Mr. Shenping Yin, Chairman and
CEO of Recon stated, "We were pleased to report progress across
several facets of the Company over 2017, with revenues accelerating
and margins expanding in the fourth quarter. As stated in our
2017 open letter to shareholders, we will continue to leverage
Recon's ability to uniquely integrate equipment and automation with
a strong client base, specifically a new client PetroChina
Changqing Oilfield Company ("PCOC"). Further, our market for
wastewater treatment continues to expand rapidly. This market is
one that both serves to diversify Recon's revenue streams, while
simultaneously addressing significant environmental concerns around
industrial water in China. This has served as a primary
revenue driver for the Company, and we believe will be integral in
our success in fiscal 2018. We also continued to reinvest in
our business with a robust R&D effort, and believe that our
Company is recognized as a cutting-edge research entity within the
energy industry in China. We anticipate revenues growing at
minimum of 30% in the coming year, driven by the wastewater
agreement signed in the second half of 2017 and others in our
pipeline. Our financial position remains strong and we look
forward to updating investors of our progress in the coming
months."
Recent Developments
- On September 25, 2017, the
Company announced the signing of several contracts totaling
approximately RMB 6.1 million, or
approximately USD 0.9 million, to
develop four Internet of Things ("IoT") Oil and Gas Production
Projects (the "Projects") for three plants of PetroChina Changqing
Oilfield Company ("PCOC"), China's
largest producing oilfield company and a subsidiary of PetroChina
("CNPC", NYSE: PTR )
- On June 12, 2017, two co-founders
of the Company, Messrs.
Shenping Yin (Chairman and Chief
Executive Officer) and Guangqiang
Chen (Chief Technology Officer and Director) released a
Letter to Shareholders updating current activities of the Company
and future development of China Oil and Gas Market. The full
text of the letter can be read here:
http://www.recon.cn/investors_investorroom3.asp
- One of the Company's VIE companies has invested RMB4.6 million to a newly established company Gan
Su BHD Environmental Technology Co., Ltd ("Gan Su BHD"). Based on
its revised chapter dated August 11,
2017, this VIE company owns an interest of 51% of Gan Su
BHD. Gan Su BHD was established on May 23,
2017, with registered capital of RMB
50 million. It focuses on oilfield sewage treatment and oily
sludge disposal projects.
Fiscal Year 2017 Financial Results
|
2017
|
|
2016
|
|
%
|
(thousands)
|
RMB
|
|
RMB
|
|
Change
|
Revenues
|
60,054
|
|
42,728
|
|
40.5%
|
Automation product
and software
|
22,399
|
|
26,172
|
|
(14.4)%
|
Equipment and
accessories
|
26,586
|
|
13,039
|
|
103.9%
|
Waste water
treatment products
|
10,997
|
|
2,334
|
|
371.1%
|
Service
|
72
|
|
1,183
|
|
(93.9)%
|
Gross
margin
|
26.6%
|
|
17.0%
|
|
9.6%
|
Net income (loss)
attributable to RCON
|
-31,445
|
|
-40,883
|
|
23.1%
|
Diluted earnings
(loss) per share
|
-4.90
|
|
-7.23
|
|
32.2%
|
Non GAAP Diluted
earnings loss per share
|
-1.26
|
|
-5.82
|
|
78.35%
|
Revenues
Total revenues for the year ended June
30, 2017 were RMB60.1 million
(approximately $8.9 million), an
increase of RMB17.3 million or
40.5% from RMB42.7 million for the
year ended June 30, 2016.
The overall increase in revenue was primarily due to increased
sales of equipment, primarily more furnaces provided to Recon's new
client, PCOC, a major subsidiary of PetroChina and the largest
producing oilfield of China.
The Company invested heavily in R&D of new products used for
oilfield waste water treatment throughout 2016, and the outcome has
been gradually reflected in its operating results. For the year
ended June 30, 2017, this new
business line continued to contribute revenue and margin,
increasing from RMB2.3 million to RMB11.0
million this year. Management expects to win additional
business in the coming months due to its technical advantage and
long-term cooperation with oilfield companies.
In December 2016, the Company
granted 3,010,000 ordinary shares of restricted stock to the
management that are forfeited and cancelled automatically in the
event that the Company fails to meet certain operating performance
goals. As the total revenue of RMB 60.1
million for the year ended June 30,
2017 exceeds the highest performance goal of RMB 59.8 million this year, the Company had
positive gross margin this year, and it is expected the management
will be employed as of the time of the filing of the annual report,
the Company expects the 800,000 restricted shares granted to the
management will not be forfeited and cancelled.
Gross profit and gross margin
Gross profit increased to RMB16.0
million (approximately $2.4
million) for the year ended June 30,
2017 from RMB7.2 million for
the same period in 2016. Gross margin was 26.6% for the year ended
June 30, 2017, compared to 17.0% for
the same period of 2016.
Operating income (loss) and operating (loss) margin
Selling and distribution expenses decreased RMB1.1 million to RMB4.5
million for the year ended June 30,
2017, compared to the same period in 2016. General and
administrative expenses increased by 62.2% or RMB12.6 million (approximately $1.9 million), from RMB20.2 million in the year ended
June 30, 2016 to RMB32.8 million (approximately
$4.8 million) in the same period of
2017.
Research and development expenses increased from RMB6.9 million for the year ended
June 30, 2016 to RMB7.6 million (approximately $1.1 million) for the same period of 2017.
Total operating expenses decreased by RMB0.6 million, or 1.2%, to RMB46.6 million for the twelve months ended
June 30, 2017 from RMB47.2 million for the same period of last
fiscal year.
Operating loss was RMB30.6 million
(approximately $4.5 million) for the
year ended June 30, 2017, compared to
a loss of RMB39.9 million for the
same period of 2016. Operating loss margin was 51.0% for the year
ended June 30, 2017, compared to
operating loss margin of 93.4% for the same period of last fiscal
year.
Net income (loss)
Net loss was RMB31.2 million
(approximately $4.6 million) for the
year ended June 30, 2017, an
improvement of RMB9.7 million
(approximately $1.4 million) from net
loss of RMB40.9 million for the same
period of 2016.
Financial Position
As of June 30, 2017, Recon had
cash in the amount of RMB3.8 million (approximately $0.6 million), compared to RMB1.8 million for the same period of 2016.
Working capital as of June 30, 2017
was RMB38.9 million ($5.7
million) as compared to RMB44.5 million at June 30, 2016. Net cash provided by operating
activities was RMB5.7 million
(approximately $0.8 million) for the
year ended June 30, 2017, compared to
net cash used in operating activities ofRMB0.3 million for the year
ended June 30, 2016. Net cash used in
investing activities was RMB0.6
million (approximately $86,500) for the year ended June 30, 2017, which was an increase in cash used
in investing activities of RMB0.5
million compared to the same period in 2016. Net cash used
in financing activities amounted to RMB3.1
million (approximately $0.5
million) for the year ended June 30,
2017, as compared to net cash used in financing activities
of RMB10.2 million for the same
period in 2016.
About Recon Technology, Ltd. ("Recon")
Recon Technology, Ltd. ("Recon") is China's first listed non-state owned oil and
gas field service company on NASDAQ. Recon supplies China's largest oil exploration companies,
such as PetroChina (NYSE: PTR) and Sinopec (NYSE: SNP), with
advanced automated technologies, efficient gathering and
transportation equipment and reservoir stimulation measure for
increasing petroleum extraction levels, reducing impurities and
lowering production costs. Through the years, Recon has taken
leading positions on several segmented markets of the oil and gas
filed service industry. Recon also has developed stable long-term
cooperation relationship with its major clients, and its products
and service are also well accepted by clients. The Company is also
developing new markets of oilfield environmental protection, sewage
treatment sector and power and coal chemical industry based on its
advantage on technic and market resources. For additional
information please visit: www.recon.cn .
Company Contact
Liu
Jia, CFO
Recon Technology, Ltd.
+86 (10) 84945799
info@recon.cn
Investor Relations
The Equity Group Inc.
In China
Katherine Yao, Senior Associate
+86-10-6587-6435
kyao@equityny.com
In the U.S.
Adam Prior, Senior Vice President
+1 (212) 836-9606
aprior@equityny.com
Safe Harbor
This news release contains forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks 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. 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.
RECON TECHNOLOGY,
LTD
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
As of June
30,
|
|
As of June
30
|
|
As of June
30
|
|
2016
|
|
2017
|
|
2017
|
ASSETS
|
RMB
|
|
RMB
|
|
U.S.
Dollars
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash
|
RMB
|
1,817,620
|
|
RMB
|
3,809,279
|
|
$
|
562,054
|
Notes
receivable
|
|
4,660,177
|
|
|
6,112,960
|
|
|
901,960
|
Trade accounts
receivable, net
|
|
38,097,626
|
|
|
39,425,911
|
|
|
5,817,245
|
Inventories,
net
|
|
6,313,070
|
|
|
2,627,974
|
|
|
387,754
|
Other receivables,
net
|
|
22,000,112
|
|
|
4,106,510
|
|
|
605,911
|
Purchase advances,
net
|
|
1,323,305
|
|
|
11,476,000
|
|
|
1,693,270
|
Prepaid
expenses
|
|
110,310
|
|
|
828,441
|
|
|
122,235
|
Total current
assets
|
|
74,322,220
|
|
|
68,387,075
|
|
|
10,090,429
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
2,907,762
|
|
|
2,767,970
|
|
|
408,411
|
Long-term trade
accounts receivable, net
|
|
2,220,332
|
|
|
-
|
|
|
-
|
Total
Assets
|
RMB
|
79,450,314
|
|
RMB
|
71,155,045
|
|
$
|
10,498,840
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
RMB
|
7,540,430
|
|
RMB
|
8,352,870
|
|
$
|
1,232,456
|
Other
payables
|
|
4,144,326
|
|
|
3,651,900
|
|
|
538,834
|
Other payable-
related parties
|
|
3,680,244
|
|
|
3,314,019
|
|
|
488,979
|
Deferred
revenue
|
|
406,681
|
|
|
1,259,725
|
|
|
185,871
|
Accrued payroll and
employees' welfare
|
|
381,109
|
|
|
2,014,514
|
|
|
297,239
|
Taxes
payable
|
|
755,880
|
|
|
684,721
|
|
|
101,030
|
Short-term borrowings
- related parties
|
|
12,941,848
|
|
|
10,168,008
|
|
|
1,500,277
|
Total current
liabilities
|
|
29,850,518
|
|
|
29,445,757
|
|
|
4,344,686
|
|
|
-
|
|
|
-
|
|
|
-
|
Commitments and
Contingencies
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Equity
|
|
|
|
|
|
|
|
|
Common stock, ($
0.0185 U.S. dollar par value, 100,000,000 shares authorized;
5,804,005 and 9,902,914 shares issued and outstanding as of June
30, 2016 and 2017, respectively)
|
|
741,467
|
|
|
1,261,288
|
|
|
186,101
|
Additional paid-in
capital
|
|
100,612,455
|
|
|
123,436,043
|
|
|
18,212,837
|
Statutory
reserve
|
|
4,148,929
|
|
|
4,148,929
|
|
|
612,169
|
Accumulated
deficit
|
|
(63,907,512)
|
|
|
(95,352,659)
|
|
|
(14,069,168)
|
Accumulated other
comprehensive loss
|
|
(219,040)
|
|
|
(249,156)
|
|
|
(36,762)
|
Total
shareholders' equity
|
|
41,376,299
|
|
|
33,244,445
|
|
|
4,905,177
|
Non-controlling
interest
|
|
8,223,497
|
|
|
8,464,843
|
|
|
1,248,977
|
Total
equity
|
|
49,599,796
|
|
|
41,709,288
|
|
|
6,154,154
|
Total Liabilities
and Equity
|
RMB
|
79,450,314
|
|
RMB
|
71,155,045
|
|
$
|
10,498,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these consolidated financial
statements
|
RECON TECHNOLOGY,
LTD
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
|
|
|
|
|
For the years
ended
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
|
2015
|
|
|
2016
|
|
|
2017
|
|
2017
|
|
|
|
|
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware and
software
|
|
|
|
RMB
|
48,980,953
|
|
RMB
|
41,544,925
|
|
RMB
|
59,982,292
|
|
$
|
8,850,314
|
|
Service
|
|
|
|
|
103,774
|
|
|
1,183,352
|
|
|
72,170
|
|
|
10,649
|
|
Hardware and software
- related parties
|
|
|
|
|
2,428,173
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total
revenues
|
|
|
|
|
51,512,900
|
|
|
42,728,277
|
|
|
60,054,462
|
|
|
8,860,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware and
software
|
|
|
|
|
41,373,566
|
|
|
34,732,965
|
|
|
44,090,960
|
|
|
6,505,568
|
|
Service
|
|
|
|
|
-
|
|
|
748,429
|
|
|
-
|
|
|
-
|
|
Hardware and software
- related parties
|
|
|
|
|
27,161
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Total cost of
revenues
|
|
|
|
|
41,400,727
|
|
|
35,481,394
|
|
|
44,090,960
|
|
|
6,505,568
|
|
Gross
profit
|
|
|
|
|
10,112,173
|
|
|
7,246,883
|
|
|
15,963,502
|
|
|
2,355,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
|
|
|
11,312,452
|
|
|
5,630,715
|
|
|
4,458,218
|
|
|
657,805
|
|
General and
administrative expenses
|
|
|
|
|
26,894,273
|
|
|
20,195,701
|
|
|
32,751,142
|
|
|
4,832,391
|
|
Provision for
doubtful accounts
|
|
|
|
|
3,252,868
|
|
|
14,475,074
|
|
|
1,766,286
|
|
|
260,613
|
|
Research and
development expenses
|
|
|
|
|
4,168,813
|
|
|
6,856,522
|
|
|
7,599,340
|
|
|
1,121,273
|
|
Operating
expenses
|
|
|
|
|
45,628,406
|
|
|
47,158,012
|
|
|
46,574,986
|
|
|
6,872,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
|
|
(35,516,233)
|
|
|
(39,911,129)
|
|
|
(30,611,484)
|
|
|
(4,516,687)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
|
|
|
781,457
|
|
|
289,087
|
|
|
132,791
|
|
|
19,593
|
|
Interest
income
|
|
|
|
|
293,499
|
|
|
183,553
|
|
|
73,990
|
|
|
10,917
|
|
Interest
expense
|
|
|
|
|
(1,110,451)
|
|
|
(903,368)
|
|
|
(548,878)
|
|
|
(80,986)
|
|
Change in fair value
of warrants liability
|
|
|
|
|
4,034,272
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Income (loss) from
foreign currency exchange
|
|
|
|
|
(19,190)
|
|
|
7,570
|
|
|
21,502
|
|
|
3,173
|
|
Loss from warrants
redemption
|
|
|
|
|
(2,496,375)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Other income
(expense)
|
|
|
|
|
24,558
|
|
|
(2,445)
|
|
|
36,178
|
|
|
5,338
|
|
Other income
(expense)
|
|
|
|
|
1,507,770
|
|
|
(425,603)
|
|
|
(284,417)
|
|
|
(41,965)
|
|
Loss before income
tax
|
|
|
|
|
(34,008,463)
|
|
|
(40,336,732)
|
|
|
(30,895,901)
|
|
|
(4,558,652)
|
|
Income tax expenses
(benefits)
|
|
|
|
|
(2,552,075)
|
|
|
545,845
|
|
|
307,900
|
|
|
45,430
|
|
Net
loss
|
|
|
|
|
(31,456,388)
|
|
|
(40,882,577)
|
|
|
(31,203,801)
|
|
|
(4,604,082)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interest
|
|
|
|
|
-
|
|
|
-
|
|
|
241,346
|
|
|
35,610
|
|
Net loss
attributable to Recon Technology, Ltd
|
|
|
|
RMB
|
(31,456,388)
|
|
RMB
|
(40,882,577)
|
|
RMB
|
(31,445,147)
|
|
$
|
(4,639,692)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
|
(31,456,388)
|
|
|
(40,882,577)
|
|
|
(31,203,801)
|
|
|
(4,604,082)
|
|
Foreign currency
translation adjustment
|
|
|
|
|
(38,276)
|
|
|
98,511
|
|
|
(30,116)
|
|
|
(4,444)
|
|
Comprehensive
loss
|
|
|
|
|
(31,494,664)
|
|
|
(40,784,066)
|
|
|
(31,233,917)
|
|
|
(4,608,526)
|
|
Less: Comprehensive
income (loss) attributable to non-controlling interest
|
|
|
|
|
(1,982)
|
|
|
-
|
|
|
241,346
|
|
|
35,610
|
|
Comprehensive loss
attributable to Recon Technology, Ltd
|
|
|
|
RMB
|
(31,492,682)
|
|
RMB
|
(40,784,066)
|
|
RMB
|
(31,475,263)
|
|
$
|
(4,644,136)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share - basic and diluted
|
|
|
|
RMB
|
(6.45)
|
|
RMB
|
(7.23)
|
|
RMB
|
(4.90)
|
|
$
|
(0.72)
|
|
Weighted - average
shares -basic and diluted
|
|
|
|
|
4,876,504
|
|
|
5,653,149
|
|
|
6,417,305
|
|
|
6,417,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these consolidated financial
statements
|
RECON TECHNOLOGY,
LTD
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
For the years
ended June 30,
|
|
2015
|
|
2016
|
|
2017
|
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
U.S.
Dollars
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
RMB
|
(31,456,388)
|
|
RMB
|
(40,882,577)
|
|
RMB
|
(31,203,801)
|
|
$
|
(4,604,082)
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
526,046
|
|
|
955,083
|
|
|
856,735
|
|
|
126,410
|
Gain from disposal
of equipment
|
|
(193,657)
|
|
|
(40,688)
|
|
|
(35,919)
|
|
|
(5,300)
|
Provision for
doubtful accounts
|
|
3,252,868
|
|
|
14,475,074
|
|
|
1,766,286
|
|
|
260,613
|
Provision for slow
moving inventories
|
|
7,700,836
|
|
|
2,428,288
|
|
|
-
|
|
|
-
|
Share based
compensation
|
|
1,294,629
|
|
|
2,096,162
|
|
|
2,039,446
|
|
|
300,918
|
Restricted shares
issued for management
|
|
1,828,788
|
|
|
3,595,146
|
|
|
12,904,723
|
|
|
1,904,076
|
Deferred tax
provision (benefit)
|
|
(532,136)
|
|
|
1,742,098
|
|
|
-
|
|
|
-
|
Change in fair value
of warrants liability
|
|
(4,034,272)
|
|
|
-
|
|
|
-
|
|
|
-
|
Restricted shares
issued for services
|
|
1,585,462
|
|
|
2,287,415
|
|
|
8,399,240
|
|
|
1,239,298
|
Loss from warrants
redemption
|
|
2,496,375
|
|
|
-
|
|
|
-
|
|
|
-
|
Income tax
benefit
|
|
(2,111,281)
|
|
|
(1,196,253)
|
|
|
-
|
|
|
-
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
(4,205,530)
|
|
|
(454,647)
|
|
|
(1,452,783)
|
|
|
(214,356)
|
Trade accounts
receivable, net
|
|
(3,245,218)
|
|
|
14,658,360
|
|
|
(245,190)
|
|
|
(36,177)
|
Trade accounts
receivable-related parties, net
|
|
4,315,755
|
|
|
1,090,453
|
|
|
-
|
|
|
-
|
Inventories,
net
|
|
(4,209,241)
|
|
|
1,191,811
|
|
|
3,597,832
|
|
|
530,856
|
Other receivable,
net
|
|
2,481,328
|
|
|
(1,775,659)
|
|
|
17,632,104
|
|
|
2,601,595
|
Other
receivables-related parties, net
|
|
1,323,412
|
|
|
91,021
|
|
|
-
|
|
|
-
|
Purchase advance,
net
|
|
3,271,935
|
|
|
4,930,479
|
|
|
(10,534,132)
|
|
|
(1,554,298)
|
Purchase
advance-related parties, net
|
|
-
|
|
|
1,374,034
|
|
|
-
|
|
|
-
|
Prepaid
expense
|
|
1,808,350
|
|
|
716,004
|
|
|
(718,130)
|
|
|
(105,959)
|
Prepaid expense -
related parties, net
|
|
(190,000)
|
|
|
420,000
|
|
|
-
|
|
|
-
|
Trade accounts
payable
|
|
2,213,583
|
|
|
(9,615,363)
|
|
|
812,440
|
|
|
119,875
|
Trade accounts
payable-related parties
|
|
3,528,705
|
|
|
-
|
|
|
-
|
|
|
-
|
Other
payables
|
|
71,584
|
|
|
712,525
|
|
|
(189,302)
|
|
|
(27,931)
|
Other
payables-related parties
|
|
1,003,678
|
|
|
1,869,889
|
|
|
(366,225)
|
|
|
(54,036)
|
Deferred
revenue
|
|
(2,134,295)
|
|
|
(1,878,848)
|
|
|
853,044
|
|
|
125,866
|
Accrued payroll and
employees' welfare
|
|
(170,835)
|
|
|
134,320
|
|
|
1,633,405
|
|
|
241,007
|
Taxes
payable
|
|
(1,322,818)
|
|
|
790,199
|
|
|
(78,700)
|
|
|
(11,612)
|
Net cash provided
by (used in) operating activities
|
|
(15,102,337)
|
|
|
(285,674)
|
|
|
5,671,073
|
|
|
836,763
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(2,078,204)
|
|
|
(181,075)
|
|
|
(638,119)
|
|
|
(94,154)
|
Proceeds from
disposal of equipment
|
|
400,400
|
|
|
60,000
|
|
|
51,900
|
|
|
7,658
|
Net cash used in
investing activities
|
|
(1,677,804)
|
|
|
(121,075)
|
|
|
(586,219)
|
|
|
(86,496)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
short-term bank loans
|
|
7,000,000
|
|
|
500,000
|
|
|
-
|
|
|
-
|
Repayments of
short-term bank loans
|
|
(10,000,000)
|
|
|
(7,500,000)
|
|
|
-
|
|
|
-
|
Proceeds from
short-term borrowings
|
|
-
|
|
|
530,000
|
|
|
1,100,000
|
|
|
162,304
|
Repayment of
short-term borrowings
|
|
-
|
|
|
-
|
|
|
(1,330,000)
|
|
|
(196,240)
|
Proceeds from
short-term borrowings-related parties
|
|
18,250,000
|
|
|
12,895,400
|
|
|
13,103,718
|
|
|
1,933,438
|
Repayment of
short-term borrowings-related parties
|
|
(6,550,000)
|
|
|
(16,780,765)
|
|
|
(15,950,682)
|
|
|
(2,353,504)
|
Proceeds from sale of
common stock, net of issuance costs
|
|
2,392,027
|
|
|
171,919
|
|
|
-
|
|
|
-
|
Net cash (used in)
provided by financing activities
|
|
11,092,027
|
|
|
(10,183,446)
|
|
|
(3,076,964)
|
|
|
(454,002)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash and cash equivalents
|
|
(61,543)
|
|
|
62,886
|
|
|
(16,231)
|
|
|
(2,399)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash
|
|
(5,749,657)
|
|
|
(10,527,309)
|
|
|
1,991,659
|
|
|
293,866
|
Cash at beginning
of year
|
|
18,094,586
|
|
|
12,344,929
|
|
|
1,817,620
|
|
|
268,188
|
Cas at end of
year
|
RMB
|
12,344,929
|
|
RMB
|
1,817,620
|
|
RMB
|
3,809,279
|
|
$
|
562,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during
the year for interest
|
RMB
|
1,060,529
|
|
RMB
|
903,368
|
|
RMB
|
571,037
|
|
$
|
84,256
|
Cash paid during
the year for taxes
|
RMB
|
881,794
|
|
RMB
|
142,477
|
|
RMB
|
284,487
|
|
$
|
41,976
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common
stock to redeem warrants
|
RMB
|
3,462,438
|
|
RMB
|
-
|
|
RMB
|
-
|
|
$
|
-
|
AR and short-term
borrowings-related parties offset
|
RMB
|
-
|
|
RMB
|
200,000
|
|
RMB
|
-
|
|
$
|
-
|
Inventories used for
fixed assets
|
|
-
|
|
|
1,025,410
|
|
|
-
|
|
|
-
|
Non-cash payment for
property and equipment purchase
|
RMB
|
-
|
|
RMB
|
-
|
|
RMB
|
87,265
|
|
$
|
12,876
|
Issuance of unvested
common stock to senior managers
|
RMB
|
-
|
|
RMB
|
-
|
|
RMB
|
55,685
|
|
$
|
8,216
|
|
The accompanying
notes are an integral part of these consolidated financial
statements
|
View original
content:http://www.prnewswire.com/news-releases/recon-technology-reports-financial-results-for-fiscal-year-2017-highlighted-by-40-revenue-increase-driven-by-traditional-and-oilfield-waste-water-treatment-business-growth-300527365.html
SOURCE Recon Technology, Ltd.