BEIJING, Oct. 1, 2012 /PRNewswire-FirstCall/ -- Recon Technology, Ltd. (Nasdaq: RCON), an oilfield services provider that operates primarily in the People's Republic of China (the "Company"), today announced its financial results for fiscal year 2012 ended June 30, 2012.
Fiscal Year 2012 Highlights
-- Total revenues increased by 18.61% in fiscal year 2012 to RMB 75.54
million ($11.95 million), due to the company's move into the horizontal
fracturing business and development of overseas business.
-- Gross profits increased 20.05% in fiscal year 2012 were RMB24.27 million
($3.84 million).
-- Gross margin was 32.13%, compared to 31.75% in FY 2011.
-- Operating loss in fiscal year 2012 decreased by 81.93% to RMB3.54
mullion ($560 thousand) from FY 2011.
-- Comprehensive loss attributable to Recon in fiscal year 2012 was RMB3.82
million ($605 thousand), an 86.84% decrease from FY2011.
-- Diluted Losses per Share attributable to Recon for fiscal year 2012 was
RMB0.97 ($0.15), a reduction of 86.8% from diluted losses per share of
RMB7.35 in 2011.
-- Adjust EBITDA in fiscal year 2012 was a loss of RMB1.29 million ($204
thousand), an improvement of 92.28% from FY 2011.
"I'm pleased that we closed the year with improved operating results," said Mr. Yin Shenping, CEO of Recon, "The high-end segment of China's oilfield service industry has opened more to private companies, and we believe there are opportunities for Chinese oilfield services companies, especially experienced companies that can provide all-in-one solutions for customers. As a small company, Recon now is more focused on oilfield automation and production stimulation-related services. But we also seek to extend our business on the industrial chain by providing more integrated services and incremental measures and growing our business from a predominantly up-ground business to include some down-hole services as well. We believe our experience and reputation will help us remain competitive in this arena."
Fiscal Year 2012 Results
Total revenues for the year ended June 30, 2012 were RMB75.54 million ($11.95 million), an increase of RMB11.85 million or 18.61%. The deconsolidation of ENI was responsible for a decrease of RMB18.68 million in hardware and hardware-related revenues. Excluding the effect of deconsolidating ENI, our operating revenue increased by RMB30.54 million, or 67.85%
Gross profit increased by RMB4.05 million ($641 thousand), or 20.05%, to RMB24.27 million ($3.84 million) for fiscal year 2012. Gross profit as a percentage of revenues increased slightly from 31.75% to 32.13%.
Selling and distribution expenses decreased by RMB2.68 million, or 34.67%, from RMB7.74 million for the year ended June 30, 2011 to RMB 5.05 million ($780 thousand) for the same period of 2012 as a result of focusing our selling efforts on a more limited number of clients.
General and administrative expenses decreased by RMB9.30 million ($1.47 million), or 29.01%, from RMB32.06 million in FY2011 to RMB22.76 million ($3.60 million) in the same period of 2012, which was mainly attributable to deconsolidation of ENI during the fiscal year 2011, offset by increase in expenses in research and development activities, staff wages, in order to retain talented staff and SOX compliance services.
Loss from operations was RMB3.54 million ($560 thousand) for FY2012, an improvement of RMB16.03 million, or 81.93%, from a loss of RM19.57 million for 2011. This improvement in operations is attributed primarily to the deconsolidation of ENI, increase in revenues and reduction in expenses during this year.
Net loss attributable to ordinary shareholders was RMB3.82 million ($605 thousand) for the year ended June 30, 2012, an improvement of RMB25.22 million or 86.84%, from a loss of RMB29.04 million for same period of 2011.
As of June 30, 2012, cash and cash equivalents was RMB3.53 million ($553 thousand). Except for RMB6.89 million ($1.09 million) of short-term borrowings and RMB23 million ($3.64 million) short-term bank loan, there were no other financing activities and contingent liabilities.
Net cash used in operating activities was RMB21.87 million ($3.46 million) for the year ended June 30, 2012, an increase of RMB15.54 million ($2.46 million) from RMB6.33 million for the same period of 2011. The increase in the use of cash in the current period was due to an increase in trade accounts receivable and purchase advances, which resulted from increased business activities, offset by the increased in inventory turnover and accounts payable.
Net cash provided in financing activities was RMB22.74 million ($3.60 million) for the year ended June 30, 2012, compared to net cash provided by financing activities amounting to RMB2.62 million for the same period of 2011. The increase in net cash provided by financing activities was mainly due to the increase of bank loans and short-term borrowings from related parties to supplement our working capital.
Net cash used in investing activities was RMB840 thousand ($133 thousand) for the year ended June 30, 2012, a decrease of RMB1.59 million from RMB2.43 million for the same period of 2011. The decrease was mainly caused by a loss on cash due to the deconsolidation of ENI amounting to RMB2.56 million in the fiscal 2011, while there was no such loss for the same period of 2012.
About Recon Technology, Ltd.
Recon Technology, Ltd. is a non-state-owned oil field service company in China. The company has been providing software, equipment and services designed to increase the efficiency and automation in oil and gas exploration, extraction, production and refinery for Chinese oil and gas fields for more than 10 years. More information may be found at http://www.recon.cn or via e-mail at info@recon.cn.
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.
Investor Contact:
Recon Technology, Ltd.
Tel: +86-10-8494-5799
RECON TECHNOLOGY, LTD.
CONSOLIDATED BALANCE SHEETS
As of June 30, As of June 30, As of June 30,
-------------- -------------- --------------
2011 2012 2012
---- ---- ----
ASSETS RMB RMB U.S. Dollars
--- --- ------------
Current assets
Cash and cash
equivalents RMB 3,485,944 RMB 3,533,283 $559,090
Notes receivable 1,276,574 - -
Trade accounts
receivable, net 22,329,705 61,993,942 9,809,634
Trade accounts
receivable- related
parties, net 25,983,172 20,394,749 3,227,170
Inventories, net 22,576,094 24,281,300 3,842,160
Other receivables, net 6,128,794 8,074,096 1,277,608
Other receivables-
related parties 4,383,000 17,729 2,805
Purchase advances, net 12,152,896 16,250,616 2,571,422
Purchase advances-
related parties 989,828 1,093,534 173,036
Tax recoverable - 2,790,722 441,591
Prepaid expenses 1,016,299 535,336 84,709
Deferred tax asset 458,133 1,106,801 175,135
------- --------- -------
Total current assets 100,780,439 140,072,108 22,164,360
Property and equipment,
net 1,132,425 1,774,820 280,839
Long-term other
receivable 12,971,481 10,302,349 1,630,196
---------- ---------- ---------
Total Assets RMB 114,884,345 RMB 152,149,277 $24,075,395
=== =========== === =========== ===========
LIABILITIES AND EQUITY
Current liabilities
Short-term bank loan RMB 5,000,000 RMB 23,000,000 $3,639,413
Trade accounts payable 6,320,488 11,905,560 1,883,881
Trade accounts payable-
related parties - 5,339,231 844,855
Other payables 1,960,924 2,341,826 370,560
Other payable- related
parties 61,477 1,099,259 173,942
Deferred revenue 2,420,497 3,291,073 520,764
Advances from customers 782,945 936,124 148,128
Accrued payroll and
employees' welfare 157,824 949,579 150,257
Accrued expenses 345,015 476,416 75,384
Taxes payable 7,192,123 9,681,620 1,531,975
Short-term borrowings 1,743,286 2,767,066 437,848
Short-term borrowings-
related parties 911,399 4,123,306 652,453
Total current
liabilities 26,895,978 65,911,060 10,429,460
---------- ---------- ----------
Total Liabilities 26,895,978 65,911,060 10,429,460
Commitments and
Contingency
Equity
Common shares, ($
0.0185 U.S. dollar par
value, 25,000,000
shares authorized;
3,951,811 shares
issued and outstanding
as of June 30, 2011
and 2012) 529,979 529,979 83,861
Additional paid-in
capital 65,877,686 67,643,791 10,703,640
Appropriated retained
earnings 2,058,429 2,378,961 376,436
Unappropriated retained
earnings 13,495,199 9,354,535 1,480,218
Accumulated other
comprehensive loss (288,897) (290,496) (45,967)
Total controlling
shareholders' equity 81,672,396 79,616,770 12,598,188
Non-controlling
interest 6,315,971 6,621,447 1,047,747
--------- --------- ---------
Total equity 87,988,367 86,238,217 13,645,935
---------- ---------- ----------
Total Liabilities and
Equity RMB 114,884,345 RMB 152,149,277 $24,075,395
=== =========== === =========== ===========
RECON TECHNOLOGY, LTD.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the year ended June 30,
---------------------------
2011 2012 2012
---- ---- ----
RMB RMB U.S. Dollars
--- --- ------------
Revenues
Hardware RMB 41,677,918 RMB 49,693,929 $7,863,337
Service - 13,985,465 2,212,995
Software 2,111,111 3,952,991 625,503
Hardware - related parties 19,899,438 7,909,994 1,251,641
---------- --------- ---------
Total revenues 63,688,467 75,542,379 11,953,476
Cost of revenues 43,469,506 51,269,950 8,112,719
Gross margin 20,218,961 24,272,429 3,840,757
---------- ---------- ---------
Selling and distribution
expenses 7,736,091 5,054,219 799,756
General and administrative
expenses 32,055,652 22,755,891 3,600,787
Operating expenses 39,791,743 27,810,110 4,400,543
---------- ---------- ---------
Loss from operations (19,572,782) (3,537,681) (559,786)
----------- ---------- --------
Other income (expenses)
Subsidy income 822,545 554,856 87,798
Interest income 1,463 335,517 53,091
Interest expense (600,500) (962,824) (152,353)
Gain or loss from currency
exchange 35,846 (46,303) (7,327)
Other income (expense) 279,664 (78,097) (12,358)
Loss on deconsolidation (8,989,614) - -
---------- --- ---
Loss before income taxes (28,023,378) (3,734,532) (590,935)
Benefit (provision) for
income taxes (665,146) 220,050 34,820
Net loss (28,688,524) (3,514,482) (556,115)
Less: Net income
attributable to non-
controlling interest 347,851 305,653 48,365
Net loss attributable to
Recon Technology, Ltd RMB (29,036,375) RMB (3,820,135) $(604,480)
=== =========== === ========== =========
Comprehensive Loss
Net loss (28,688,524) (3,514,482) (556,115)
Foreign currency
translation adjustment (211,900) (1,599) (253)
-------- ------ ----
Comprehensive loss (28,900,424) (3,516,081) (556,368)
Comprehensive income
attributable to non-
controlling interest 324,307 305,830 48,393
------- ------- ------
Comprehensive loss
attributable to Recon
Technology, Ltd RMB (29,224,731) RMB (3,821,911) $(604,761)
=== =========== === ========== =========
Loss per common share -
basic and diluted RMB (7.35) RMB (0.97) $(0.15)
=== ===== === ===== ======
Weighted -average shares
-basic and diluted 3,951,811 3,951,811 3,951,811
========= ========= =========
RECON TECHNOLOGY, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the year ended June 30,
---------------------------
2011 2012 2012
---- ---- ----
RMB RMB U.S. Dollars
--- --- ------------
Cash flows from operating activities:
Net loss RMB (28,688,524) RMB (3,514,482) $(556,115)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on deconsolidation 8,989,614 - -
Depreciation 361,837 197,873 31,310
Provision for doubtful accounts 3,919,052 620,133
Stock based payments 1,420,588 1,239,788 196,178
Deferred tax benefit (182,173) (648,668) (102,642)
Changes in operating assets and liabilities:
Trade accounts receivable 7,406,206 (42,916,527) (6,790,912)
Trade accounts receivable-related parties 9,947,112 5,588,423 884,286
Notes receivbale (1,276,574) 1,276,574 201,999
Other receivable, net 3,987,998 447,706 70,843
Other receivables related parties, net (1,226,488) 4,365,271 690,740
Purchase advance, net 18,150,896 (4,488,357) (710,217)
Purchase advance-related party, net 8,947,200 (103,706) (16,410)
Tax recorvable - (2,790,722) (441,591)
Prepaid expense (269,661) 480,963 76,105
Inventories (23,287,337) (1,705,206) (269,824)
Trade accounts payable (4,747,743) 5,585,072 883,756
Trade accounts payable-related parties - 5,339,231 844,855
Other payables (1,183,142) 380,902 60,272
Other payables-related parties 133,206 1,037,782 164,214
Deferred income (1,795,986) 870,576 137,756
Advances from customers 334,678 153,179 24,238
Accrued payroll and employees' welfare (176,235) 791,755 125,284
Accrued expenses 54,212 131,401 20,792
Taxes payable (3,231,315) 2,489,497 393,926
Net cash used in operating activities (6,331,632) (21,872,623) (3,461,024)
---------- ----------- ----------
Cash flows from investing activities:
Purchase of property and equipment (173,089) (840,268) (132,960)
Cash effect of deconsolidating VIE (2,256,305) - -
Net cash used in investing activities (2,429,394) (840,268) (132,960)
---------- -------- --------
Cash flows from financing activities:
Proceeds from short-term bank loan 5,000,000 23,000,000 3,639,413
Repayments of short-term bank loan - (5,000,000) (791,177)
Proceeds from other receivables-loans 3,216,000
Proceeds from short-term borrowings 168,317 2,153,780 340,804
Proceeds from short-term borrowings-related party 4,991,907 789,896
Repayments of short-term borrowings (5,343,082) (1,130,000) (178,806)
Repayments of short-term borrowings-related party (2,700,000) (1,780,000) (281,659)
Capital contribution in VIE - 500,000 79,118
Net cash provided by financing activities 341,235 22,735,687 3,597,589
------- ---------- ---------
Effect of exchange rate fluctuation on cash and cash equivalents (237,222) 24,543 3,884
-------- ------ -----
Net increase (decrease) in cash and cash equivalent (8,657,013) 47,340 7,490
Cash and cash equivalents at beginning of year 12,142,957 3,485,944 551,600
---------- --------- -------
Cash and cash equivalents at end of year RMB 3,485,944 RMB 3,533,284 $559,090
=== ========= === ========= ========
Supplemental cash flow information
Cash paid during the year for interest RMB 401,529 RMB 442,719 $70,054
=== ======= === ======= =======
Cash paid during the year for taxes RMB 3,700,671 RMB 494,087 $78,182
=== ========= === ======= =======
SOURCE Recon Technology, Ltd.
SOURCE: Recon Technology, Ltd.
Recon Reports fiscal year 2012 Financial Results
PR Newswire
BEIJING, Oct. 1, 2012
BEIJING, Oct. 1, 2012 /PRNewswire-FirstCall/ -- Recon Technology, Ltd. (Nasdaq: RCON), an oilfield services provider that operates primarily in the People's Republic of China (the "Company"), today announced its financial results for fiscal year 2012 ended June 30, 2012.
Fiscal Year 2012 Highlights
- Total revenues increased by 18.61% in fiscal year 2012 to RMB 75.54 million ($11.95 million), due to the company's move into the horizontal fracturing business and development of overseas business.
- Gross profits increased 20.05% in fiscal year 2012 were RMB24.27 million ($3.84 million).
- Gross margin was 32.13%, compared to 31.75% in FY 2011.
- Operating loss in fiscal year 2012 decreased by 81.93% to RMB3.54 mullion ($560 thousand) from FY 2011.
- Comprehensive loss attributable to Recon in fiscal year 2012 was RMB3.82 million ($605 thousand), an 86.84% decrease from FY2011.
- Diluted Losses per Share attributable to Recon for fiscal year 2012 was RMB0.97 ($0.15), a reduction of 86.8% from diluted losses per share of RMB7.35 in 2011.
- Adjust EBITDA in fiscal year 2012 was a loss of RMB1.29 million ($204 thousand), an improvement of 92.28% from FY 2011.
"I'm pleased that we closed the year with improved operating results," said Mr. Yin Shenping, CEO of Recon, "The high-end segment of China's oilfield service industry has opened more to private companies, and we believe there are opportunities for Chinese oilfield services companies, especially experienced companies that can provide all-in-one solutions for customers. As a small company, Recon now is more focused on oilfield automation and production stimulation-related services. But we also seek to extend our business on the industrial chain by providing more integrated services and incremental measures and growing our business from a predominantly up-ground business to include some down-hole services as well. We believe our experience and reputation will help us remain competitive in this arena."
Fiscal Year 2012 Results
Total revenues for the year ended June 30, 2012 were RMB75.54 million ($11.95 million), an increase of RMB11.85 million or 18.61%. The deconsolidation of ENI was responsible for a decrease of RMB18.68 million in hardware and hardware-related revenues. Excluding the effect of deconsolidating ENI, our operating revenue increased by RMB30.54 million, or 67.85%
Gross profit increased by RMB4.05 million ($641 thousand), or 20.05%, to RMB24.27 million ($3.84 million) for fiscal year 2012. Gross profit as a percentage of revenues increased slightly from 31.75% to 32.13%.
Selling and distribution expenses decreased by RMB2.68 million, or 34.67%, from RMB7.74 million for the year ended June 30, 2011 to RMB 5.05 million ($780 thousand) for the same period of 2012 as a result of focusing our selling efforts on a more limited number of clients.
General and administrative expenses decreased by RMB9.30 million ($1.47 million), or 29.01%, from RMB32.06 million in FY2011 to RMB22.76 million ($3.60 million) in the same period of 2012, which was mainly attributable to deconsolidation of ENI during the fiscal year 2011, offset by increase in expenses in research and development activities, staff wages, in order to retain talented staff and SOX compliance services.
Loss from operations was RMB3.54 million ($560 thousand) for FY2012, an improvement of RMB16.03 million, or 81.93%, from a loss of RM19.57 million for 2011. This improvement in operations is attributed primarily to the deconsolidation of ENI, increase in revenues and reduction in expenses during this year.
Net loss attributable to ordinary shareholders was RMB3.82 million ($605 thousand) for the year ended June 30, 2012, an improvement of RMB25.22 million or 86.84%, from a loss of RMB29.04 million for same period of 2011.
As of June 30, 2012, cash and cash equivalents was RMB3.53 million ($553 thousand). Except for RMB6.89 million ($1.09 million) of short-term borrowings and RMB23 million ($3.64 million) short-term bank loan, there were no other financing activities and contingent liabilities.
Net cash used in operating activities was RMB21.87 million ($3.46 million) for the year ended June 30, 2012, an increase of RMB15.54 million ($2.46 million) from RMB6.33 million for the same period of 2011. The increase in the use of cash in the current period was due to an increase in trade accounts receivable and purchase advances, which resulted from increased business activities, offset by the increased in inventory turnover and accounts payable.
Net cash provided in financing activities was RMB22.74 million ($3.60 million) for the year ended June 30, 2012, compared to net cash provided by financing activities amounting to RMB2.62 million for the same period of 2011. The increase in net cash provided by financing activities was mainly due to the increase of bank loans and short-term borrowings from related parties to supplement our working capital.
Net cash used in investing activities was RMB840 thousand ($133 thousand) for the year ended June 30, 2012, a decrease of RMB1.59 million from RMB2.43 million for the same period of 2011. The decrease was mainly caused by a loss on cash due to the deconsolidation of ENI amounting to RMB2.56 million in the fiscal 2011, while there was no such loss for the same period of 2012.
About Recon Technology, Ltd.
Recon Technology, Ltd. is a non-state-owned oil field service company in China. The company has been providing software, equipment and services designed to increase the efficiency and automation in oil and gas exploration, extraction, production and refinery for Chinese oil and gas fields for more than 10 years. More information may be found at http://www.recon.cn or via e-mail at info@recon.cn.
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.
Investor Contact:
Recon Technology, Ltd.
Tel: +86-10-8494-5799
|
RECON TECHNOLOGY, LTD. | ||||||||
|
CONSOLIDATED BALANCE SHEETS | ||||||||
|
As of June 30, |
As of June 30, |
As of June 30, | ||||||
|
2011 |
2012 |
2012 | ||||||
|
ASSETS |
RMB |
RMB |
U.S. Dollars | |||||
|
Current assets |
||||||||
|
Cash and cash equivalents |
RMB |
3,485,944 |
RMB |
3,533,283 |
$ |
559,090 | ||
|
Notes receivable |
1,276,574 |
- |
- | |||||
|
Trade accounts receivable, net |
22,329,705 |
61,993,942 |
9,809,634 | |||||
|
Trade accounts receivable- related parties, net |
25,983,172 |
20,394,749 |
3,227,170 | |||||
|
Inventories, net |
22,576,094 |
24,281,300 |
3,842,160 | |||||
|
Other receivables, net |
6,128,794 |
8,074,096 |
1,277,608 | |||||
|
Other receivables- related parties |
4,383,000 |
17,729 |
2,805 | |||||
|
Purchase advances, net |
12,152,896 |
16,250,616 |
2,571,422 | |||||
|
Purchase advances- related parties |
989,828 |
1,093,534 |
173,036 | |||||
|
Tax recoverable |
- |
2,790,722 |
441,591 | |||||
|
Prepaid expenses |
1,016,299 |
535,336 |
84,709 | |||||
|
Deferred tax asset |
458,133 |
1,106,801 |
175,135 | |||||
|
Total current assets |
100,780,439 |
140,072,108 |
22,164,360 | |||||
|
Property and equipment, net |
1,132,425 |
1,774,820 |
280,839 | |||||
|
Long-term other receivable |
12,971,481 |
10,302,349 |
1,630,196 | |||||
|
Total Assets |
RMB |
114,884,345 |
RMB |
152,149,277 |
$ |
24,075,395 | ||
|
LIABILITIES AND EQUITY |
||||||||
|
Current liabilities |
||||||||
|
Short-term bank loan |
RMB |
5,000,000 |
RMB |
23,000,000 |
$ |
3,639,413 | ||
|
Trade accounts payable |
6,320,488 |
11,905,560 |
1,883,881 | |||||
|
Trade accounts payable- related parties |
- |
5,339,231 |
844,855 | |||||
|
Other payables |
1,960,924 |
2,341,826 |
370,560 | |||||
|
Other payable- related parties |
61,477 |
1,099,259 |
173,942 | |||||
|
Deferred revenue |
2,420,497 |
3,291,073 |
520,764 | |||||
|
Advances from customers |
782,945 |
936,124 |
148,128 | |||||
|
Accrued payroll and employees' welfare |
157,824 |
949,579 |
150,257 | |||||
|
Accrued expenses |
345,015 |
476,416 |
75,384 | |||||
|
Taxes payable |
7,192,123 |
9,681,620 |
1,531,975 | |||||
|
Short-term borrowings |
1,743,286 |
2,767,066 |
437,848 | |||||
|
Short-term borrowings- related parties |
911,399 |
4,123,306 |
652,453 | |||||
|
Total current liabilities |
26,895,978 |
65,911,060 |
10,429,460 | |||||
|
Total Liabilities |
26,895,978 |
65,911,060 |
10,429,460 | |||||
|
Commitments and Contingency |
||||||||
|
Equity |
||||||||
|
Common shares, ($ 0.0185 U.S. dollar par value, 25,000,000 shares authorized; 3,951,811 shares issued and outstanding as of June 30, 2011 and 2012) |
529,979 |
529,979 |
83,861 | |||||
|
Additional paid-in capital |
65,877,686 |
67,643,791 |
10,703,640 | |||||
|
Appropriated retained earnings |
2,058,429 |
2,378,961 |
376,436 | |||||
|
Unappropriated retained earnings |
13,495,199 |
9,354,535 |
1,480,218 | |||||
|
Accumulated other comprehensive loss |
(288,897) |
(290,496) |
(45,967) | |||||
|
Total controlling shareholders' equity |
81,672,396 |
79,616,770 |
12,598,188 | |||||
|
Non-controlling interest |
6,315,971 |
6,621,447 |
1,047,747 | |||||
|
Total equity |
87,988,367 |
86,238,217 |
13,645,935 | |||||
|
Total Liabilities and Equity |
RMB |
114,884,345 |
RMB |
152,149,277 |
$ |
24,075,395 | ||
|
RECON TECHNOLOGY, LTD. |
|||||||||
|
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
|||||||||
|
For the year ended June 30, |
|||||||||
|
2011 |
2012 |
2012 |
|||||||
|
RMB |
RMB |
U.S. Dollars |
|||||||
|
Revenues |
|||||||||
|
Hardware |
RMB |
41,677,918 |
RMB |
49,693,929 |
$ |
7,863,337 |
|||
|
Service |
- |
13,985,465 |
2,212,995 |
||||||
|
Software |
2,111,111 |
3,952,991 |
625,503 |
||||||
|
Hardware - related parties |
19,899,438 |
7,909,994 |
1,251,641 |
||||||
|
Total revenues |
63,688,467 |
75,542,379 |
11,953,476 |
||||||
|
Cost of revenues |
43,469,506 |
51,269,950 |
8,112,719 |
||||||
|
Gross margin |
20,218,961 |
24,272,429 |
3,840,757 |
||||||
|
Selling and distribution expenses |
7,736,091 |
5,054,219 |
799,756 |
||||||
|
General and administrative expenses |
32,055,652 |
22,755,891 |
3,600,787 |
||||||
|
Operating expenses |
39,791,743 |
27,810,110 |
4,400,543 |
||||||
|
Loss from operations |
(19,572,782) |
(3,537,681) |
(559,786) |
||||||
|
Other income (expenses) |
|||||||||
|
Subsidy income |
822,545 |
554,856 |
87,798 |
||||||
|
Interest income |
1,463 |
335,517 |
53,091 |
||||||
|
Interest expense |
(600,500) |
(962,824) |
(152,353) |
||||||
|
Gain or loss from currency exchange |
35,846 |
(46,303) |
(7,327) |
||||||
|
Other income (expense) |
279,664 |
(78,097) |
(12,358) |
||||||
|
Loss on deconsolidation |
(8,989,614) |
- |
- |
||||||
|
Loss before income taxes |
(28,023,378) |
(3,734,532) |
(590,935) |
||||||
|
Benefit (provision) for income taxes |
(665,146) |
220,050 |
34,820 |
||||||
|
Net loss |
(28,688,524) |
(3,514,482) |
(556,115) |
||||||
|
Less: Net income attributable to non-controlling interest |
347,851 |
305,653 |
48,365 |
||||||
|
Net loss attributable to Recon Technology, Ltd |
RMB |
(29,036,375) |
RMB |
(3,820,135) |
$ |
(604,480) |
|||
|
Comprehensive Loss |
|||||||||
|
Net loss |
(28,688,524) |
(3,514,482) |
(556,115) |
||||||
|
Foreign currency translation adjustment |
(211,900) |
(1,599) |
(253) |
||||||
|
Comprehensive loss |
(28,900,424) |
(3,516,081) |
(556,368) |
||||||
|
Comprehensive income attributable to non-controlling interest |
324,307 |
305,830 |
48,393 |
||||||
|
Comprehensive loss attributable to Recon Technology, Ltd |
RMB |
(29,224,731) |
RMB |
(3,821,911) |
$ |
(604,761) |
|||
|
Loss per common share - basic and diluted |
RMB |
(7.35) |
RMB |
(0.97) |
$ |
(0.15) |
|||
|
Weighted - average shares -basic and diluted |
3,951,811 |
3,951,811 |
3,951,811 |
||||||
|
RECON TECHNOLOGY, LTD. |
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
For the year ended June 30, | ||||||||
|
2011 |
2012 |
2012 | ||||||
|
RMB |
RMB |
U.S. Dollars | ||||||
|
Cash flows from operating activities: |
||||||||
|
Net loss |
RMB |
(28,688,524) |
RMB |
(3,514,482) |
$ |
(556,115) | ||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
|
Loss on deconsolidation |
8,989,614 |
- |
- | |||||
|
Depreciation |
361,837 |
197,873 |
31,310 | |||||
|
Provision for doubtful accounts |
3,919,052 |
620,133 | ||||||
|
Stock based payments |
1,420,588 |
1,239,788 |
196,178 | |||||
|
Deferred tax benefit |
(182,173) |
(648,668) |
(102,642) | |||||
|
Changes in operating assets and liabilities: |
||||||||
|
Trade accounts receivable |
7,406,206 |
(42,916,527) |
(6,790,912) | |||||
|
Trade accounts receivable-related parties |
9,947,112 |
5,588,423 |
884,286 | |||||
|
Notes receivbale |
(1,276,574) |
1,276,574 |
201,999 | |||||
|
Other receivable, net |
3,987,998 |
447,706 |
70,843 | |||||
|
Other receivables related parties, net |
(1,226,488) |
4,365,271 |
690,740 | |||||
|
Purchase advance, net |
18,150,896 |
(4,488,357) |
(710,217) | |||||
|
Purchase advance-related party, net |
8,947,200 |
(103,706) |
(16,410) | |||||
|
Tax recorvable |
- |
(2,790,722) |
(441,591) | |||||
|
Prepaid expense |
(269,661) |
480,963 |
76,105 | |||||
|
Inventories |
(23,287,337) |
(1,705,206) |
(269,824) | |||||
|
Trade accounts payable |
(4,747,743) |
5,585,072 |
883,756 | |||||
|
Trade accounts payable-related parties |
- |
5,339,231 |
844,855 | |||||
|
Other payables |
(1,183,142) |
380,902 |
60,272 | |||||
|
Other payables-related parties |
133,206 |
1,037,782 |
164,214 | |||||
|
Deferred income |
(1,795,986) |
870,576 |
137,756 | |||||
|
Advances from customers |
334,678 |
153,179 |
24,238 | |||||
|
Accrued payroll and employees' welfare |
(176,235) |
791,755 |
125,284 | |||||
|
Accrued expenses |
54,212 |
131,401 |
20,792 | |||||
|
Taxes payable |
(3,231,315) |
2,489,497 |
393,926 | |||||
|
Net cash used in operating activities |
(6,331,632) |
(21,872,623) |
(3,461,024) | |||||
|
Cash flows from investing activities: |
||||||||
|
Purchase of property and equipment |
(173,089) |
(840,268) |
(132,960) | |||||
|
Cash effect of deconsolidating VIE |
(2,256,305) |
- |
- | |||||
|
Net cash used in investing activities |
(2,429,394) |
(840,268) |
(132,960) | |||||
|
Cash flows from financing activities: |
||||||||
|
Proceeds from short-term bank loan |
5,000,000 |
23,000,000 |
3,639,413 | |||||
|
Repayments of short-term bank loan |
- |
(5,000,000) |
(791,177) | |||||
|
Proceeds from other receivables-loans |
3,216,000 |
|||||||
|
Proceeds from short-term borrowings |
168,317 |
2,153,780 |
340,804 | |||||
|
Proceeds from short-term borrowings-related party |
4,991,907 |
789,896 | ||||||
|
Repayments of short-term borrowings |
(5,343,082) |
(1,130,000) |
(178,806) | |||||
|
Repayments of short-term borrowings-related party |
(2,700,000) |
(1,780,000) |
(281,659) | |||||
|
Capital contribution in VIE |
- |
500,000 |
79,118 | |||||
|
Net cash provided by financing activities |
341,235 |
22,735,687 |
3,597,589 | |||||
|
Effect of exchange rate fluctuation on cash and cash equivalents |
(237,222) |
24,543 |
3,884 | |||||
|
Net increase (decrease) in cash and cash equivalent |
(8,657,013) |
47,340 |
7,490 | |||||
|
Cash and cash equivalents at beginning of year |
12,142,957 |
3,485,944 |
551,600 | |||||
|
Cash and cash equivalents at end of year |
RMB |
3,485,944 |
RMB |
3,533,284 |
$ |
559,090 | ||
|
Supplemental cash flow information |
||||||||
|
Cash paid during the year for interest |
RMB |
401,529 |
RMB |
442,719 |
$ |
70,054 | ||
|
Cash paid during the year for taxes |
RMB |
3,700,671 |
RMB |
494,087 |
$ |
78,182 | ||
SOURCE Recon Technology, Ltd.
Web Site: http://www.recon.cn