BEIJING, March 03, 2014 /PRNewswire --Recon Technology, Ltd. (RCON), a leading oilfield services provider that operates primarily in the People's Republic of China, today announced that its Nanjing Recon Technology division, which develops automation software products for oilfield exploitation and production, has received a three-year renewal on its government certification as a High-Tech Enterprise. As a result, this division has been awarded a reduction in income tax from 25% to a preferential EIT (Enterprise Income Tax) rate of 15% for the coming three years, commencing in 2014.
With this award, Nanjing Recon Technology joins Recon's other division, BHD Petroleum Ltd., which also enjoys the preferential EIT rate of 15%, and has two years remaining on its current three-year preferential EIT certificate.
Recon also announced that Nanjing Recon Technology has received two new software copyrights, covering the division's Recon Process Auto software Version 1.0 and Recon RCNAMT software Version 1.0. Recon expects that revenue contributed by these two software products could be 5 million RMB (USD 820,000) within the first year of commercialization.
Nanjing Recon now owns eight patents, fourteen software copyrights, six registered-for-sale software products and three trademarks. Recon Technology's other division, BHD, owns twenty-four patents, four software copyrights and two trademarks.
As a government-authorized software developer, Nanjing Recon is eligible to receive a 14% VAT tax-refund of each sale of software products.
"We are very pleased to receive these new software copyrights and this preferential tax rate for Nanjing Recon Technology," said Mr. Yin Shenping, CEO of Recon Technology. "We expect that these developments will both strengthen our intellectual property position in the automated oilfield systems sector, and also have a significant effect on our bottom line for 2014 and beyond."
Recon Technology, Ltd. is China's first listed non-state owned oil and gas field service company on Nasdaq (Ticker: RCON). Recon supplies China's largest oil exploration companies, Sinopec 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 us at www.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.
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Recon Technology, Ltd.
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