BEIJING, May 11, 2022 /PRNewswire/ -- Recon Technology, Ltd (NASDAQ: RCON) ("Recon" or the "Company") today announced that the mainland China variable interest entity with whom its subsidiary, Recon Hengda Technology (Beijing) Co., Ltd. has entered into a 3-year service agreement with one domestic oilfield client to provide a complete-set of solutions for oily wastewater treatments. According to the actual production capacity of the client and the settlement terms set in the agreement, the contract amount is expected to be RMB3.5 million per year.
According to the agreement, Recon will be required to provide the client with oily wastewater treatment facilities and the corresponding chemicals designed and prepared by Recon to ensure that the effluent from the oilfield treatment stations can be re-injected after satisfactory disposal subject to applicable state laws and regulations.
Mr. Guangqiang Chen, Founder and Chairman of Recon said, "We're pleased to announce another long-term agreement with our client for our wastewater treatment business. With the recovery of oil prices, the production activities of our clients are also increasing, which inevitably leads to an increase in the amount of oily wastewater and effluent in the oil production process. The Chinese oilfield companies take environmental protection very seriously, and in order to ensure that the produced effluent meets the discharge standards, our clients need to commission a professional third party to treat the oily effluent produced during their production process. Recon has been investing enough in the oilfield environmental protection business in recent years and we believe our solutions are now in a leading position of the industry. Our oilfield environmental business is now in a fast-growing stage, and has achieved a 544% year-over-year growth in the six-month period ended December 31, 2021. We will continue to maintain our focus on the oilfield environmental business segment and expect the business to continue to bring new profit growth to the company in the future."
About Recon Technology, Ltd ("RCON")
Recon Technology, Ltd (NASDAQ: RCON) is the People's Republic of China's first NASDAQ-listed non-state owned oil and gas field service company. Recon supplies China's largest oil exploration companies, Sinopec (NYSE: SNP) and The China National Petroleum Corporation ("CNPC"), 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, RCON has taken leading positions within several segmented markets of the oil and gas filed service industry. RCON also has developed stable long-term cooperation relationship with its major clients. For additional information please visit: http://www.recon.cn/.
Recon includes "forward-looking statements" within the meaning of the federal securities laws throughout this press release. A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as "scheduled," "may," "will," "could," "should," "would," "expect," "believe," "anticipate," "project," "plan," "estimate," "forecast," "goal," "objective," "committed," "intend," "continue," or "will likely result," and similar expressions that concern Recon's strategy, plans, intentions or beliefs about future occurrences or results. Forward-looking statements are subject to risks, uncertainties and other factors that may change at any time and may cause actual results to differ materially from those that Recon expected. Many of these statements are derived from Recon's operating budgets and forecasts, which are based on many detailed assumptions that Recon believes are reasonable, or are based on various assumptions about certain plans, activities or events which we expect will or may occur in the future. However, it is very difficult to predict the effect of known factors, and Recon cannot anticipate all factors that could affect actual results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors, including those factors
disclosed under "Risk Factors" in Recon's most recent Annual Report on Form 20-F and any subsequent half-year financial filings on Form 6-K filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by the cautionary statements that Recon makes from time to time in its SEC filings and public communications. Recon cannot assure the reader that it will realize the results or developments Recon anticipates, or, even if substantially realized, that they will result in the consequences or affect Recon or its operations in the way Recon expects. Forward-looking statements speak only as of the date made. Recon undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances arising after the date on which they were made, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, Recon.
For more information, please contact:
Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5799