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NEW YORK, Jan. 13, 2020 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company") today announced the cooperation between its 43%-owned subsidiary, Future Gas Station (Beijing) Technology, Ltd ("FGS") and Xinglin Gas Station, a gas station in Jiangsu Province. The cooperation was established in October 2019 with the term of two years, aiming to reduce operating costs and boost the overall revenues of Xinglin Gas Station.
Pursuant to the cooperation, FGS provides Xinglin Gas Station the internet marketing service through its DT Refuel mobile application which is also a data-based intelligent marketing tool. The service includes building a complete Customer Relationship Management system that allows more efficient data management and smart data-driven decision making. FGS also provides precision marketing service based on consumer behaviors to reduce operating costs, and facilitates marketing cooperation with third parties to increase gas station revenues. FGS charges 0.5% of the transaction amount as operation and technical service fees.
For the 3 months ended December 31, 2019, Xinglin Gas Station reported that 4,387 users had traded approximately $0.45 million (RMB 3,124,023) through DT Refuel. The average daily transaction amount was approximately $5,510 (RMB 38,568) and the percentage of fuel transactions was 43%.
"FGS' intelligent platform helps us better know and serve our customers, enhance our competitiveness to catch up state-owned gas stations," said Mr. Zhirong Zhang, the owner of Xinglin Gas Station. "It allows us to make smart marketing decisions meanwhile reducing work intensity. Most importantly, it has helped us reduce operation costs and increase overall income by more than 10%."
"There are more than 110,000 gas stations in China, about half of them are state-owned," said Mr. Yang Song, the founder of FGS. "Xinglin Gas Station is one of our first attempts outside Zhejiang Province and one of the gas stations that are not state-owned. We expect to work with 3,000 gas stations in 2020, with an annual transaction amount of over $1.5 billion and a service income of over $4.5 million."
"The upstream sectors of the oil and gas industry have been our strategic focus, but we are glad to see more opportunities from downstream sectors, such as gas stations," said Mr. Shenping Yin, co-founder and CEO of Recon. "We are actively bringing more strength into these sectors which present more value to our shareholders."
About Future Gas Station (Beijing) Technology, Ltd.
Established in January 2016, Future Gas Station (Beijing) Technology is a service company focusing on providing new technical Applications and data operations to gas stations. It also provides solutions to gas stations to improve their operations and their customers' experience. FGS aims to increase the overall income of gas stations through the integration of internet technique and New Retail E-Commerce platform and to help transform gas stations into comprehensive service providers.
About Recon Technology, Ltd.
Recon Technology, Ltd. (RCON) is China's first non-state-owned oil and gas field service company listed on NASDAQ. Recon supplies China's largest oil exploration companies with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measures for increasing petroleum extraction levels, reducing impurities and lowering production costs. Since 2017, the Company has expanded its business operations into other segments of the broader energy industry including electric power, coal chemicals, renewable energy and environmental protection in the energy and chemical industries. Through the years, Recon has taken leading positions on several market segments of the oil and gas field service industry. Recon also has developed stable long-term cooperation relationships with its major clients, and its products and service are well accepted by clients. For additional information please visit: www.recon.cn.
Safe Harbor Statement
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.
Dragon Gate Investment Partners LLC
SOURCE Recon Technology, Ltd.