Recon Technology, Ltd. (NASDAQ: RCON) provides hardware, software, and on-site services to companies in the petroleum mining and extraction industry in China. Shares surged 20.24% on Wednesday, January 23, 2019. Over the past three months, Recon has seen an average daily volume of 50,140 shares. However, on Wednesday, 3,553,243 shares traded hands, equating to $3.81 million in dollar volume.
Shares surged Wednesday after Recon announced that its 51% owned subsidiary, Gansu BHD Environmental Technology Co., Ltd, has obtained a hazardous waste operating permit from the Jiuquan Environmental Protection Bureau in Gansu province. Gansu BHD completed the construction of its comprehensive disposal treatment facility on December 14, 2018. With the securing of the necessary permits and completion of its facility, Gansu BHD can now “serve the oilfield sewage treatment needs of Yumen Oilfield Company.” This permit is temporary, with an expiration date on April 17, 2019. However, Gansu BHD “will receive a formal permit if it demonstrates that its equipment and production lines can operate normally, as required by government regulations.” Here is the full press release detailing the hazardous waste permit obtained by Gansu BHD:
Recon Technology, Ltd. Press Release:
BEIJING, Jan. 23, 2019 /PRNewswire/ — Recon Technology, Ltd. (RCON) (“Recon” or the “Company”), a China-based independent solutions integrator in the oilfield service, environmental protection, electric power and coal chemical industries, today announced that the Company, through its 51% owned subsidiary Gansu BHD Environmental Technology Co., Ltd (“Gansu BHD”), has obtained a hazardous waste operating permit (the “Permit”) issued by the Jiuquan Environmental Protection Bureau in Gansu province.
As previously disclosed by the Company, Gansu BHD purchased a 50 year land use right for a 26,235 square meter property to serve the oilfield sewage treatment needs of Yumen Oilfield Company, China’s first petroleum production base and a PetroChina Co., Ltd. (“PetroChina”) subsidiary. The comprehensive disposal treatment project, completed on December 14, 2018, has an annual processing capacity of 60,000 tons of oily waste, and is currently the only such treatment facility located in Yumen city.
The Permit issued on January 18, 2019 is on a temporary basis and will expire on April 17, 2019. Before the Permit expires, the Company will receive a formal permit if it demonstrates that its equipment and production lines can operate normally, as required by government regulations.
Mr. Guangqiang Chen CTO of Recon, stated, “We are excited that we have obtained a temporary hazardous waste operating permit from the local government and we are confident that we can exchange this for a formal permit by the end of March 2019. In addition, we are currently preparing to begin the operations of Gansu BHD and have purchased oily sludge from the field for further processing. We expect to generate RMB 60 million in revenue from this project in 2019 with a 50% gross margin.”
About Recon Technology, Ltd.
Recon Technology, Ltd. (RCON) is China’s first listed non-state-owned oil and gas field service company on NASDAQ. Recon supplies China’s largest oil exploration companies, Sinopec (SNP) and 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 on several segmented markets of the oil and gas filed service industry. RCON also has developed stable long-term cooperation relationship with its major clients, and its products and service are also well accepted by clients. For additional information please visit: www.recon.cn.
Forward Looking Statements
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, levels of spending in our industry as well as consumer confidence generally; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; the results of cooperation between parties to cooperation agreements; and other risks discussed in the Company’s filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 20-F, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
Article By: Andrew Rego