BEIJING, Sept. 30, 2013 /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 increasing revenues and a generally improving operations in the fiscal year ended June 30, 2013.
Fiscal Year 2013 Highlights
-- Total revenues increased by RMB 1.04 million or 1.4% in FY2013 to RMB
76.59 million ($12.38 million), due to continued development of our
horizontal fracturing business.
-- Gross profits increased 3.2% in FY2013 to RMB 25.05 million ($4.05
million).
-- Gross margin improved to 32.71% as compared to 32.13% in FY 2012.
-- Income before income taxes showed strong improvement from a loss of RMB
3.73 million to income of RMB 906 thousand ($146 thousand).
-- Comprehensive net income attributable to Recon in FY 2013 was
approximately RMB 37 thousand ($6 thousand), an improvement of 99.03%
compared to net loss attributable to Recon of RMB 3.82 million ($617
thousand) for FY 2012.
-- Diluted Earning per Share attributable to Recon for FY 2013 was RMB 0.01
($0.002), compared to diluted losses per share of RMB 0.97 in FY 2012.
-- Adjust EBITDA in FY 2013 was RMB 4.70 million ($760 thousand), showing a
substantial improvement of 518.3% over FY 2012.
Mr. Yin Shenping, CEO of Recon, noted, "Our goal this year has been to grow into an integrator of oil field and oil well services. We have built on our particular strength in fracturing services in 2013 and plan to leverage our relationships with customers who use our fractured products to build into a full-service provider for our industry. Moving forward, we plan to develop our service offerings in the different stages of the process, from exploration to production of wells."
Mr. Yin continued, "We will also expand our business into the shale gas and mine gas industries based on our final strategy, which is to be leading integrator of oilfield service and products with advanced technology. We recognize the potential market share available in China's domestic gas industry. We believe that our products are applicable not just to this industry, but also to complementary industries in China and abroad. We expect that our investment of time and effort in research and development of automation products will benefit us not only in our current industry but also in these complementary industries moving forward."
"In addition, we recently acquired a 32.33% interest of a US based oil and gas company in June 2013. We believe this investment will serve as a solid basis from which we will continue to strengthen a general mutual trust and understanding of these various global markets which will result in providing our company with an opportunity to explore exporting our services and products to the US and other markets."
Fiscal Year 2013 Results
Total revenues for the year ended June 30, 2013 were approximately RMB 76.6 million ($12.4 million), an increase of approximately RMB1.0 million or 1.4% from RMB75.5 million for the year ended June 30, 2012. This increased was mainly driven by development of our fracturing service business.
Gross profit increased to approximately RMB25.1 million ($4 million) for the year ended June 30, 2013 from approximately RMB24.3 million for the year ended June 30, 2012. Our gross profit as a percentage of revenue increased to 32.7% for the year ended June 30, 2013 from 32.1% for the same period in FY2012.
Selling and distribution expenses increased by 21.2%, from approximately RMB5.1 million for the year ended June 30, 2012 to approximately RMB6.1 million ($1 million) for the same period of FY2013. This increase was primarily due to the increased expenses related to shipping, traveling and maintenance expenses.
General and administrative expenses decreased by 33.4%, or approximately RMB5.6 million ($0.9 million), from approximately RMB16.5 million in the year ended June 30, 2012 to approximately RMB11.0 million ($1.8 million) as related to the same period in FY2013. General and administrative expenses were 21.8% of total revenues in 2012 and 14.3% of total revenues in FY2013.
Research and development expenses increased by 35.8%, from approximately RMB6.3 million for the year ended June 30, 2012 to approximately RMB8.5 million ($1.4 million) for the same period of 2013. This increase was primarily due to the increases in R&D expenditures on our furnaces and fracturing services.
Loss from operations was approximately RMB0.6 million ($0.1 million) for the year ended June 30, 2013, compared to a loss of approximately RMB3.5 million for the same period in FY2012. This decrease in loss from operations is attributed primarily to the increases in general revenue and decrease in our general and administrative expenses.
Net income attributable to ordinary shareholders was RMB39,698 ($6,415) for the year ended June 30, 2013, an improvement of approximately RMB4 million ($0.6 million) from net loss attributable to ordinary shareholders of approximately RMB3.8 million for same period in FY2012.
Adjusted EBITDA improved by approximately RMB5.8 million ($1 million) to approximately RMB4.7 million ($0.8 million) for the year ended June 30, 2013 compared to loss of approximately RMB1.1 million for the same period in 2012 as a result of increased revenues and lower operating expenses. Compared to net income attributable to ordinary shareholders, we believe this EBITDA value more accurately reflects our operations.
As of June 30, 2013, cash and cash equivalents was RMB12.4 million ($2 million). Except for RMB6.07 million ($0.98 million) of short-term borrowings and RMB10 million ($1.6 million) short-term bank loan, there were no other financing activities and contingent liabilities.
Net cash provided by operating activities was approximately RMB24.8 million ($4 million) for the year ended June 30, 2013. This was an increase of approximately RMB46.5 million ($7.5 million) compared to net cash used in operating activities of approximately RMB21.7 million for year ended June 30, 2012. This increase was mainly due to the fact that we earned net profit in fiscal 2013 while we experienced net losses in fiscal 2012.
Net cash used in investing activities was approximately RMB2.1 million ($0.3 million) for the year ended June 30, 2013, an increase of RMB1.3 million ($0.2 million) from RMB0.8 million for the same period of 2012. The increase in net cash used in investing activities was mainly due to an approximately RMB1.5 million increase in long-term investment for a 32.2% equity investment in a U.S. oil and natural gas company offset by RMB0.2 million increase in proceeds from disposal of fixed assets and a decrease of approximately RMB86,000 in purchase of property and equipment.
Net cash used in financing activities amounted to approximately RMB14.2 million ($2.3 million) for the year ended June 30, 2013, compared to cash flows provided by financing activities of approximately RMB22.7 million for the year ended June 30, 2012. During the year ended June 30, 2013, we repaid RMB23 million ($3.7 million) in commercial bank loans and received RMB10 million ($1.6 million) in loans from two banks, which were guaranteed by one of our shareholders.
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,
-------------- -------------- -----------
2012 2013 2013
---- ---- ----
ASSETS RMB RMB U.S. Dollars
--- --- ------------
Current assets
Cash and cash
equivalents 3,533,283 12,350,392 $1,995,797
RMB RMB
Notes receivable - 2,578,855 416,738
Trade accounts
receivable, net 61,993,942 38,648,780 6,245,561
Trade accounts
receivable-
related parties,
net 20,394,749 18,744,364 3,029,049
Inventories, net 24,281,300 13,271,070 2,144,577
Other
receivables, net 8,074,096 19,131,503 3,091,610
Other
receivables-
related parties 17,729 742,528 119,991
Purchase
advances, net 16,250,616 18,412,507 2,975,422
Purchase
advances-
related parties 1,093,534 394,034 63,675
Tax recoverable 2,790,722 575,650 93,024
Prepaid expenses 535,336 2,853,956 461,192
Deferred tax
asset 1,106,801 1,006,721 162,684
--------- --------- -------
Total current
assets 140,072,108 128,710,360 20,799,320
Property and
equipment, net 1,774,820 1,709,846 276,307
Long-term
investment - 1,549,450 250,388
Long-term other
receivable 10,302,349 3,502,680 566,026
---------- --------- -------
Total Assets 152,149,277 135,472,336 $21,892,041
RMB RMB
=== ===
LIABILITIES AND
EQUITY
Current
liabilities
Short-term bank
loans 23,000,000 10,000,000 $1,615,979
RMB RMB
Trade accounts
payable 11,905,560 7,384,165 1,193,265
Trade accounts
payable-
related parties 5,339,231 3,994,718 645,538
Other payables 2,341,826 1,964,691 317,490
Other payable-
related parties 1,099,259 4,239,675 685,122
Deferred revenue 3,291,073 3,381,382 546,424
Advances from
customers 936,124 470,700 76,064
Accrued payroll
and employees'
welfare 949,579 1,992,783 322,030
Accrued expenses 476,416 488,730 78,978
Taxes payable 9,681,620 6,754,428 1,091,501
Short-term
borrowings-
related parties 4,123,306 5,503,279 889,318
Short-term
borrowings-
other 2,767,066 570,375 92,171
Total current
liabilities 65,911,060 46,744,926 7,553,880
---------- ---------- ---------
Commitments and
Contingency
Equity
Common stock, ($
0.0185 U.S. and June 30,
dollar par 2013)
value,
25,000,000
shares
authorized;
3,951,811 shares
issued and
outstanding as
of June 30, 2012 529,979 529,979 85,641
Additional paid-
in capital 67,643,791 69,516,447 11,233,710
Appropriated
retained
earnings 2,378,961 3,023,231 488,548
Unappropriated
retained
earnings 9,354,535 8,749,963 1,413,975
Accumulated other
comprehensive
loss (290,496) (293,201) (47,378)
Total controlling
shareholders'
equity 79,616,770 81,526,419 13,174,496
Non-controlling
interest 6,621,447 7,200,991 1,163,665
--------- --------- ---------
Total equity 86,238,217 88,727,410 14,338,161
---------- ---------- ----------
Total Liabilities
and Equity 152,149,277 135,472,336 $21,892,041
RMB RMB
=== ===
RECON TECHNOLOGY, LTD
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the years ended
June 30,
--------
2012 2013 2013
---- ---- ----
RMB RMB USD
--- --- ---
Revenues
Hardware and software RMB 53,646,920 41,408,517 6,691,529
$
RMB
Service 13,985,465 25,464,003 4,114,929
Hardware and software - related parties 7,909,994 9,713,209 1,569,634
--------- --------- ---------
Total revenues 75,542,379 76,585,729 12,376,092
Cost of revenues
Hardware and software 37,740,629 26,617,786 $4,301,378
RMB RMB
Service 8,945,100 18,567,123 3,000,408
Hardware and software - related parties 4,584,221 6,346,850 1,025,637
--------- --------- ---------
Total cost of revenues 51,269,950 51,531,759 8,327,423
Gross profit 24,272,429 25,053,970 4,048,669
---------- ---------- ---------
Selling and distribution expenses 5,054,219 6,126,095 989,964
General and administrative expenses 16,484,972 10,978,942 1,774,174
Research and development expenses 6,270,919 8,513,680 1,375,793
Operating expenses 27,810,110 25,618,717 4,139,931
---------- ---------- ---------
Loss from operations (3,537,681) (564,747) (91,262)
---------- -------- -------
Other income (expenses)
Subsidy income 554,856 2,257,344 364,782
Interest income 335,517 570,442 92,182
Interest expense (962,824) (1,557,204) (251,641)
Gain from foreign currency exchange (46,303) 233,478 37,730
Other income (expense) (78,097) (32,901) (5,317)
------- ------- ------
Income (loss) before income tax (3,734,532) 906,412 146,474
Provision (benefit) for income tax (220,050) 286,871 46,358
Net Income (loss) (3,514,482) 619,541 100,116
Less: Net income attributable to non-controlling interest 305,653 579,843 93,701
Net Income (loss) attributable to Recon Technology, Ltd (3,820,135) 39,698 $6,415
RMB RMB
=== ===
Comprehensive income (loss)
Net income (loss) (3,514,482) 619,541 100,116
Foreign currency translation adjustment (1,599) (3,004) (487)
------ ------ ----
Comprehensive income (loss) (3,516,081) 616,537 99,629
Less: Comprehensive income attributable to non-controlling interest 305,830 579,543 93,653
------- ------- ------
Comprehensive income (loss) attributable to Recon Technology, Ltd (3,821,911) 36,994 $5,976
RMB RMB
=== ===
Earnings (loss) per common share - basic (0.97) 0.01 $0.00
RMB RMB
=== ===
Earnings per common share - diluted (0.97) 0.01 $0.00
RMB RMB
=== ===
Weighted - average shares -basic 3,951,811 3,951,811 3,951,811
========= ========= =========
Weighted - average shares -diluted 3,951,811 3,951,811 3,951,811
========= ========= =========
RECON TECHNOLOGY, LTD
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended June 30,
----------------------------
2012 2013 2013
---- ---- ----
RMB RMB U.S. Dollars
--- --- ------------
Cash flows from operating activities:
Net income (loss) (3,514,482) 619,541 $100,116
RMB RMB
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating
activities:
Depreciation 361,790 618,552 99,957
Loss from disposal of equipment 8,056 38,006 6,142
Provision/(recovery of) for doubtful accounts 3,919,052 (749,121) (121,056)
Stock based compensation 1,239,788 1,852,656 299,385
Deferred tax (benifit)/provision (648,668) 100,080 16,173
Changes in operating assets and liabilities:
Trade accounts receivable (42,916,527) 25,107,519 4,057,322
Trade accounts receivable-related parties 5,588,423 672,175 108,622
Notes receivable 1,276,574 (2,578,855) (416,738)
Other receivable, net 447,706 (4,263,858) (689,031)
Other receivables related parties, net 4,365,271 (724,799) (117,126)
Purchase advance, net (4,488,357) (2,190,796) (354,028)
Purchase advance-related party, net (103,706) 699,500 113,038
Tax recoverable (2,790,722) 2,215,072 357,951
Prepaid expense 480,963 (2,318,620) (374,684)
Inventories (1,705,206) 11,010,230 1,779,230
Trade accounts payable 5,585,072 (4,521,395) (730,648)
Trade accounts payable-related parties 5,339,231 (1,344,513) (217,270)
Other payables 380,902 (377,135) (60,944)
Other payables-related parties 1,037,782 3,140,416 507,485
Deferred income 870,576 90,309 14,594
Advances from customers 153,179 (465,424) (75,212)
Accrued payroll and employees' welfare 791,755 1,043,204 168,580
Accrued expenses 131,401 12,314 1,990
Taxes payable 2,489,497 (2,927,192) (473,028)
Net cash provided by (used in) operating activities (21,700,650) 24,757,866 4,000,820
----------- ---------- ---------
Cash flows from investing activities:
Purchase of property and equipment (1,031,028) (753,583) (121,777)
Long-term investment - (1,549,450) (250,388)
Proceeds from disposal of equipment 18,787 162,000 26,179
Net cash used in investing activities (1,012,241) (2,141,033) (345,986)
---------- ---------- --------
Cash flows from financing activities:
Proceeds from short-term bank loans 23,000,000 10,000,000 1,615,979
Repayments of short-term bank loans (5,000,000) (23,000,000) (3,716,751)
Proceeds from short-term borrowings 2,153,780 579,073 93,577
Proceeds from borrowings-related parties 4,991,907 1,962,450 317,128
Repayment of short-term borrowings (1,130,000) (2,775,764) (448,558)
Repayment of short-term borrowings-related parties (1,780,000) (582,477) (94,127)
Capital contribution in VIE 500,000 20,000 3,232
Net cash provided by (used in) financing activities 22,735,687 (13,796,718) (2,229,520)
---------- ----------- ----------
Effect of exchange rate fluctuation on cash and cash equivalents 24,543 (3,006) (488)
------ ------ ----
Net increase in cash and cash equivalents 47,339 8,817,109 1,424,826
Cash and cash equivalents at beginning of year 3,485,944 3,533,283 570,971
--------- --------- -------
Cash and cash equivalents at end of year 3,533,283 12,350,392 $1,995,797
RMB RMB
=== ===
Supplemental cash flow information
Cash paid during the period for interest 442,719 1,356,581 $219,221
RMB RMB
=== ===
Cash paid during the period for taxes 494,087 832,028 $134,454
RMB RMB
=== ===
SOURCE Recon Technology, Ltd.
SOURCE: Recon Technology, Ltd.
Recon Reports Fiscal Year 2013 Financial Results
PR Newswire
BEIJING, Sept. 30, 2013
BEIJING, Sept. 30, 2013 /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 increasing revenues and a generally improving operations in the fiscal year ended June 30, 2013.
Fiscal Year 2013 Highlights
- Total revenues increased by RMB 1.04 million or 1.4% in FY2013 to RMB 76.59 million ($12.38 million), due to continued development of our horizontal fracturing business.
- Gross profits increased 3.2% in FY2013 to RMB 25.05 million ($4.05 million).
- Gross margin improved to 32.71% as compared to 32.13% in FY 2012.
- Income before income taxes showed strong improvement from a loss of RMB 3.73 million to income of RMB 906 thousand ($146 thousand).
- Comprehensive net income attributable to Recon in FY 2013 was approximately RMB 37 thousand ($6 thousand), an improvement of 99.03% compared to net loss attributable to Recon of RMB 3.82 million ($617 thousand) for FY 2012.
- Diluted Earning per Share attributable to Recon for FY 2013 was RMB 0.01 ($0.002), compared to diluted losses per share of RMB 0.97 in FY 2012.
- Adjust EBITDA in FY 2013 was RMB 4.70 million ($760 thousand), showing a substantial improvement of 518.3% over FY 2012.
Mr. Yin Shenping, CEO of Recon, noted, "Our goal this year has been to grow into an integrator of oil field and oil well services. We have built on our particular strength in fracturing services in 2013 and plan to leverage our relationships with customers who use our fractured products to build into a full-service provider for our industry. Moving forward, we plan to develop our service offerings in the different stages of the process, from exploration to production of wells."
Mr. Yin continued, "We will also expand our business into the shale gas and mine gas industries based on our final strategy, which is to be leading integrator of oilfield service and products with advanced technology. We recognize the potential market share available in China's domestic gas industry. We believe that our products are applicable not just to this industry, but also to complementary industries in China and abroad. We expect that our investment of time and effort in research and development of automation products will benefit us not only in our current industry but also in these complementary industries moving forward."
"In addition, we recently acquired a 32.33% interest of a US based oil and gas company in June 2013. We believe this investment will serve as a solid basis from which we will continue to strengthen a general mutual trust and understanding of these various global markets which will result in providing our company with an opportunity to explore exporting our services and products to the US and other markets."
Fiscal Year 2013 Results
Total revenues for the year ended June 30, 2013 were approximately RMB 76.6 million ($12.4 million), an increase of approximately RMB1.0 million or 1.4% from RMB75.5 million for the year ended June 30, 2012. This increased was mainly driven by development of our fracturing service business.
Gross profit increased to approximately RMB25.1 million ($4 million) for the year ended June 30, 2013 from approximately RMB24.3 million for the year ended June 30, 2012. Our gross profit as a percentage of revenue increased to 32.7% for the year ended June 30, 2013 from 32.1% for the same period in FY2012.
Selling and distribution expenses increased by 21.2%, from approximately RMB5.1 million for the year ended June 30, 2012 to approximately RMB6.1 million ($1 million) for the same period of FY2013. This increase was primarily due to the increased expenses related to shipping, traveling and maintenance expenses.
General and administrative expenses decreased by 33.4%, or approximately RMB5.6 million ($0.9 million), from approximately RMB16.5 million in the year ended June 30, 2012 to approximately RMB11.0 million ($1.8 million) as related to the same period in FY2013. General and administrative expenses were 21.8% of total revenues in 2012 and 14.3% of total revenues in FY2013.
Research and development expenses increased by 35.8%, from approximately RMB6.3 million for the year ended June 30, 2012 to approximately RMB8.5 million ($1.4 million) for the same period of 2013. This increase was primarily due to the increases in R&D expenditures on our furnaces and fracturing services.
Loss from operations was approximately RMB0.6 million ($0.1 million) for the year ended June 30, 2013, compared to a loss of approximately RMB3.5 million for the same period in FY2012. This decrease in loss from operations is attributed primarily to the increases in general revenue and decrease in our general and administrative expenses.
Net income attributable to ordinary shareholders was RMB39,698 ($6,415) for the year ended June 30, 2013, an improvement of approximately RMB4 million ($0.6 million) from net loss attributable to ordinary shareholders of approximately RMB3.8 million for same period in FY2012.
Adjusted EBITDA improved by approximately RMB5.8 million ($1 million) to approximately RMB4.7 million ($0.8 million) for the year ended June 30, 2013 compared to loss of approximately RMB1.1 million for the same period in 2012 as a result of increased revenues and lower operating expenses. Compared to net income attributable to ordinary shareholders, we believe this EBITDA value more accurately reflects our operations.
As of June 30, 2013, cash and cash equivalents was RMB12.4 million ($2 million). Except for RMB6.07 million ($0.98 million) of short-term borrowings and RMB10 million ($1.6 million) short-term bank loan, there were no other financing activities and contingent liabilities.
Net cash provided by operating activities was approximately RMB24.8 million ($4 million) for the year ended June 30, 2013. This was an increase of approximately RMB46.5 million ($7.5 million) compared to net cash used in operating activities of approximately RMB21.7 million for year ended June 30, 2012. This increase was mainly due to the fact that we earned net profit in fiscal 2013 while we experienced net losses in fiscal 2012.
Net cash used in investing activities was approximately RMB2.1 million ($0.3 million) for the year ended June 30, 2013, an increase of RMB1.3 million ($0.2 million) from RMB0.8 million for the same period of 2012. The increase in net cash used in investing activities was mainly due to an approximately RMB1.5 million increase in long-term investment for a 32.2% equity investment in a U.S. oil and natural gas company offset by RMB0.2 million increase in proceeds from disposal of fixed assets and a decrease of approximately RMB86,000 in purchase of property and equipment.
Net cash used in financing activities amounted to approximately RMB14.2 million ($2.3 million) for the year ended June 30, 2013, compared to cash flows provided by financing activities of approximately RMB22.7 million for the year ended June 30, 2012. During the year ended June 30, 2013, we repaid RMB23 million ($3.7 million) in commercial bank loans and received RMB10 million ($1.6 million) in loans from two banks, which were guaranteed by one of our shareholders.
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, | ||||||
|
2012 |
2013 |
2013 | ||||||
|
ASSETS |
RMB |
RMB |
U.S. Dollars | |||||
|
Current assets |
||||||||
|
Cash and cash equivalents |
RMB |
3,533,283 |
RMB |
12,350,392 |
$ |
1,995,797 | ||
|
Notes receivable |
- |
2,578,855 |
416,738 | |||||
|
Trade accounts receivable, net |
61,993,942 |
38,648,780 |
6,245,561 | |||||
|
Trade accounts receivable- related parties, net |
20,394,749 |
18,744,364 |
3,029,049 | |||||
|
Inventories, net |
24,281,300 |
13,271,070 |
2,144,577 | |||||
|
Other receivables, net |
8,074,096 |
19,131,503 |
3,091,610 | |||||
|
Other receivables- related parties |
17,729 |
742,528 |
119,991 | |||||
|
Purchase advances, net |
16,250,616 |
18,412,507 |
2,975,422 | |||||
|
Purchase advances- related parties |
1,093,534 |
394,034 |
63,675 | |||||
|
Tax recoverable |
2,790,722 |
575,650 |
93,024 | |||||
|
Prepaid expenses |
535,336 |
2,853,956 |
461,192 | |||||
|
Deferred tax asset |
1,106,801 |
1,006,721 |
162,684 | |||||
|
Total current assets |
140,072,108 |
128,710,360 |
20,799,320 | |||||
|
Property and equipment, net |
1,774,820 |
1,709,846 |
276,307 | |||||
|
Long-term investment |
- |
1,549,450 |
250,388 | |||||
|
Long-term other receivable |
10,302,349 |
3,502,680 |
566,026 | |||||
|
Total Assets |
RMB |
152,149,277 |
RMB |
135,472,336 |
$ |
21,892,041 | ||
|
LIABILITIES AND EQUITY |
||||||||
|
Current liabilities |
||||||||
|
Short-term bank loans |
RMB |
23,000,000 |
RMB |
10,000,000 |
$ |
1,615,979 | ||
|
Trade accounts payable |
11,905,560 |
7,384,165 |
1,193,265 | |||||
|
Trade accounts payable- related parties |
5,339,231 |
3,994,718 |
645,538 | |||||
|
Other payables |
2,341,826 |
1,964,691 |
317,490 | |||||
|
Other payable- related parties |
1,099,259 |
4,239,675 |
685,122 | |||||
|
Deferred revenue |
3,291,073 |
3,381,382 |
546,424 | |||||
|
Advances from customers |
936,124 |
470,700 |
76,064 | |||||
|
Accrued payroll and employees' welfare |
949,579 |
1,992,783 |
322,030 | |||||
|
Accrued expenses |
476,416 |
488,730 |
78,978 | |||||
|
Taxes payable |
9,681,620 |
6,754,428 |
1,091,501 | |||||
|
Short-term borrowings- related parties |
4,123,306 |
5,503,279 |
889,318 | |||||
|
Short-term borrowings- other |
2,767,066 |
570,375 |
92,171 | |||||
|
Total current liabilities |
65,911,060 |
46,744,926 |
7,553,880 | |||||
|
Commitments and Contingency |
||||||||
|
Equity |
||||||||
|
Common stock, ($ 0.0185 U.S. dollar par value, 25,000,000 shares authorized; 3,951,811 shares issued and outstanding as of June 30, 2012 and June 30, 2013) |
529,979 |
529,979 |
85,641 | |||||
|
Additional paid-in capital |
67,643,791 |
69,516,447 |
11,233,710 | |||||
|
Appropriated retained earnings |
2,378,961 |
3,023,231 |
488,548 | |||||
|
Unappropriated retained earnings |
9,354,535 |
8,749,963 |
1,413,975 | |||||
|
Accumulated other comprehensive loss |
(290,496) |
(293,201) |
(47,378) | |||||
|
Total controlling shareholders' equity |
79,616,770 |
81,526,419 |
13,174,496 | |||||
|
Non-controlling interest |
6,621,447 |
7,200,991 |
1,163,665 | |||||
|
Total equity |
86,238,217 |
88,727,410 |
14,338,161 | |||||
|
Total Liabilities and Equity |
RMB |
152,149,277 |
RMB |
135,472,336 |
$ |
21,892,041 | ||
|
RECON TECHNOLOGY, LTD | |||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||
|
For the years ended | |||||||||
|
June 30, | |||||||||
|
2012 |
2013 |
2013 | |||||||
|
RMB |
RMB |
USD | |||||||
|
Revenues |
|||||||||
|
Hardware and software |
RMB |
53,646,920 |
RMB |
41,408,517 |
$ |
6,691,529 | |||
|
Service |
13,985,465 |
25,464,003 |
4,114,929 | ||||||
|
Hardware and software - related parties |
7,909,994 |
9,713,209 |
1,569,634 | ||||||
|
Total revenues |
75,542,379 |
76,585,729 |
12,376,092 | ||||||
|
Cost of revenues |
|||||||||
|
Hardware and software |
RMB |
37,740,629 |
RMB |
26,617,786 |
$ |
4,301,378 | |||
|
Service |
8,945,100 |
18,567,123 |
3,000,408 | ||||||
|
Hardware and software - related parties |
4,584,221 |
6,346,850 |
1,025,637 | ||||||
|
Total cost of revenues |
51,269,950 |
51,531,759 |
8,327,423 | ||||||
|
Gross profit |
24,272,429 |
25,053,970 |
4,048,669 | ||||||
|
Selling and distribution expenses |
5,054,219 |
6,126,095 |
989,964 | ||||||
|
General and administrative expenses |
16,484,972 |
10,978,942 |
1,774,174 | ||||||
|
Research and development expenses |
6,270,919 |
8,513,680 |
1,375,793 | ||||||
|
Operating expenses |
27,810,110 |
25,618,717 |
4,139,931 | ||||||
|
Loss from operations |
(3,537,681) |
(564,747) |
(91,262) | ||||||
|
Other income (expenses) |
|||||||||
|
Subsidy income |
554,856 |
2,257,344 |
364,782 | ||||||
|
Interest income |
335,517 |
570,442 |
92,182 | ||||||
|
Interest expense |
(962,824) |
(1,557,204) |
(251,641) | ||||||
|
Gain from foreign currency exchange |
(46,303) |
233,478 |
37,730 | ||||||
|
Other income (expense) |
(78,097) |
(32,901) |
(5,317) | ||||||
|
Income (loss) before income tax |
(3,734,532) |
906,412 |
146,474 | ||||||
|
Provision (benefit) for income tax |
(220,050) |
286,871 |
46,358 | ||||||
|
Net Income (loss) |
(3,514,482) |
619,541 |
100,116 | ||||||
|
Less: Net income attributable to non-controlling interest |
305,653 |
579,843 |
93,701 | ||||||
|
Net Income (loss) attributable to Recon Technology, Ltd |
RMB |
(3,820,135) |
RMB |
39,698 |
$ |
6,415 | |||
|
Comprehensive income (loss) |
|||||||||
|
Net income (loss) |
(3,514,482) |
619,541 |
100,116 | ||||||
|
Foreign currency translation adjustment |
(1,599) |
(3,004) |
(487) | ||||||
|
Comprehensive income (loss) |
(3,516,081) |
616,537 |
99,629 | ||||||
|
Less: Comprehensive income attributable to non-controlling interest |
305,830 |
579,543 |
93,653 | ||||||
|
Comprehensive income (loss) attributable to Recon Technology, Ltd |
RMB |
(3,821,911) |
RMB |
36,994 |
$ |
5,976 | |||
|
Earnings (loss) per common share - basic |
RMB |
(0.97) |
RMB |
0.01 |
$ |
0.00 | |||
|
Earnings per common share - diluted |
RMB |
(0.97) |
RMB |
0.01 |
$ |
0.00 | |||
|
Weighted - average shares -basic |
3,951,811 |
3,951,811 |
3,951,811 | ||||||
|
Weighted - average shares -diluted |
3,951,811 |
3,951,811 |
3,951,811 | ||||||
|
RECON TECHNOLOGY, LTD | ||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
|
For the years ended June 30, | ||||||||
|
2012 |
2013 |
2013 | ||||||
|
RMB |
RMB |
U.S. Dollars | ||||||
|
Cash flows from operating activities: |
||||||||
|
Net income (loss) |
RMB |
(3,514,482) |
RMB |
619,541 |
$ |
100,116 | ||
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
||||||||
|
Depreciation |
361,790 |
618,552 |
99,957 | |||||
|
Loss from disposal of equipment |
8,056 |
38,006 |
6,142 | |||||
|
Provision/(recovery of) for doubtful accounts |
3,919,052 |
(749,121) |
(121,056) | |||||
|
Stock based compensation |
1,239,788 |
1,852,656 |
299,385 | |||||
|
Deferred tax (benifit)/provision |
(648,668) |
100,080 |
16,173 | |||||
|
Changes in operating assets and liabilities: |
||||||||
|
Trade accounts receivable |
(42,916,527) |
25,107,519 |
4,057,322 | |||||
|
Trade accounts receivable-related parties |
5,588,423 |
672,175 |
108,622 | |||||
|
Notes receivable |
1,276,574 |
(2,578,855) |
(416,738) | |||||
|
Other receivable, net |
447,706 |
(4,263,858) |
(689,031) | |||||
|
Other receivables related parties, net |
4,365,271 |
(724,799) |
(117,126) | |||||
|
Purchase advance, net |
(4,488,357) |
(2,190,796) |
(354,028) | |||||
|
Purchase advance-related party, net |
(103,706) |
699,500 |
113,038 | |||||
|
Tax recoverable |
(2,790,722) |
2,215,072 |
357,951 | |||||
|
Prepaid expense |
480,963 |
(2,318,620) |
(374,684) | |||||
|
Inventories |
(1,705,206) |
11,010,230 |
1,779,230 | |||||
|
Trade accounts payable |
5,585,072 |
(4,521,395) |
(730,648) | |||||
|
Trade accounts payable-related parties |
5,339,231 |
(1,344,513) |
(217,270) | |||||
|
Other payables |
380,902 |
(377,135) |
(60,944) | |||||
|
Other payables-related parties |
1,037,782 |
3,140,416 |
507,485 | |||||
|
Deferred income |
870,576 |
90,309 |
14,594 | |||||
|
Advances from customers |
153,179 |
(465,424) |
(75,212) | |||||
|
Accrued payroll and employees' welfare |
791,755 |
1,043,204 |
168,580 | |||||
|
Accrued expenses |
131,401 |
12,314 |
1,990 | |||||
|
Taxes payable |
2,489,497 |
(2,927,192) |
(473,028) | |||||
|
Net cash provided by (used in) operating activities |
(21,700,650) |
24,757,866 |
4,000,820 | |||||
|
Cash flows from investing activities: |
||||||||
|
Purchase of property and equipment |
(1,031,028) |
(753,583) |
(121,777) | |||||
|
Long-term investment |
- |
(1,549,450) |
(250,388) | |||||
|
Proceeds from disposal of equipment |
18,787 |
162,000 |
26,179 | |||||
|
Net cash used in investing activities |
(1,012,241) |
(2,141,033) |
(345,986) | |||||
|
Cash flows from financing activities: |
||||||||
|
Proceeds from short-term bank loans |
23,000,000 |
10,000,000 |
1,615,979 | |||||
|
Repayments of short-term bank loans |
(5,000,000) |
(23,000,000) |
(3,716,751) | |||||
|
Proceeds from short-term borrowings |
2,153,780 |
579,073 |
93,577 | |||||
|
Proceeds from borrowings-related parties |
4,991,907 |
1,962,450 |
317,128 | |||||
|
Repayment of short-term borrowings |
(1,130,000) |
(2,775,764) |
(448,558) | |||||
|
Repayment of short-term borrowings-related parties |
(1,780,000) |
(582,477) |
(94,127) | |||||
|
Capital contribution in VIE |
500,000 |
20,000 |
3,232 | |||||
|
Net cash provided by (used in) financing activities |
22,735,687 |
(13,796,718) |
(2,229,520) | |||||
|
Effect of exchange rate fluctuation on cash and cash equivalents |
24,543 |
(3,006) |
(488) | |||||
|
Net increase in cash and cash equivalents |
47,339 |
8,817,109 |
1,424,826 | |||||
|
Cash and cash equivalents at beginning of year |
3,485,944 |
3,533,283 |
570,971 | |||||
|
Cash and cash equivalents at end of year |
RMB |
3,533,283 |
RMB |
12,350,392 |
$ |
1,995,797 | ||
|
Supplemental cash flow information |
||||||||
|
Cash paid during the period for interest |
RMB |
442,719 |
RMB |
1,356,581 |
$ |
219,221 | ||
|
Cash paid during the period for taxes |
RMB |
494,087 |
RMB |
832,028 |
$ |
134,454 | ||
SOURCE Recon Technology, Ltd.
Web Site: http://www.recon.cn