Recon Technology, Ltd. Reports Fiscal Year 2015 Third Quarter Financial Results
BEIJING, May 18, 2015 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today reported its financial results for the third quarter of fiscal year 2015, which ended March 31, 2015.
Q3 FY2015 Financial Highlights:
- Total revenues for the third quarter of FY2015 were RMB20.0 million ($3.3 million), an increase of 9.8% from the same period of FY2014.
- Gross profit for the third quarter of FY2015 was RMB6.2 million ($1.0 million), an increase of 19.1% from the same period of FY2014. Gross margin also expanded by 2.4 points to 31.2% for the third quarter of FY2015 from 28.8% for the same period of FY2014.
- Operating income was RMB0.4 million ($0.1 million) for the third quarter of FY2015, compared to an operating loss of RMB0.6 million for the same period of FY2014.
- Net loss attributable to Recon for the third quarter of FY2015 was RMB1.5 million ($0.2 million), or RMB0.32 ($0.05) loss per diluted share, compared to RMB1.9 million, or RMB0.43 loss per diluted share, for the same period of FY2014.
- Adjusted EBITDA (non-GAAP) was RMB1.7 million ($0.3 million) for the third quarter of FY2015, compared to RMB0.5 million for the same period of FY2014.
- Adjusted net income attributable to Recon was RMB1.3 million ($0.2 million), or RMB0.28 ($0.05) per diluted shares, for the third quarter of FY2015, compared to adjusted net loss attributable to Recon of RMB0.1 million, or RMB0.03 loss per diluted share, for the same period of FY2014.
Mr. Shenping Yin, Chairman and CEO of Recon stated, "It has been a challenging quarter for the oil and gas industry with the plunge in oil and gas prices continuing to put severe pressure on China's already-weak growth momentum, forcing many of our major customers to cut their CAPEX budget and to cancel or delay projects and thus hampering our efforts to carry out business plan. Despite these challenges, revenues increased by 9.8% from the same quarter last year while both gross and operating margins also improved from a year ago, thanks to solid contribution from our automation business as a result of our heightened sales and marketing effort."
Mr. Yin continued, "While we continue to face significant headwinds in the near term, we believe challenges can turn into potential opportunities for us as our competitors also struggle to stay afloat. With relatively light in assets, strong R&D capability, and deep industry connections forged by years of providing a wide range of hardware, software and service solutions to leading SOEs such as Sinopec and Petro China, in our view Recon is well prepared to withstand the challenges ahead."
Third Quarter FY2015 Financial Results
For the Three Months Ended March 31, |
|||||||||||
2014 |
2015 |
2015 |
% |
||||||||
(thousands) |
RMB |
RMB |
USD |
Change |
|||||||
Revenues |
18,232 |
20,019 |
3,277 |
9.8% |
|||||||
Hardware and software |
17,998 |
18,359 |
3,005 |
2.0% |
|||||||
Service |
80 |
- |
- |
-100.0% |
|||||||
Hardware and software - related parties |
154 |
1,660 |
272 |
979.0% |
|||||||
Gross margin |
28.8% |
31.2% |
31.2% |
2.4% |
|||||||
Operating (loss) margin |
-3.1% |
2.0% |
2.0% |
5.1% |
|||||||
Net income (loss) attributable to RCON |
(1,931) |
(1,527) |
(250) |
NM |
|||||||
Diluted earnings per share |
(0.43) |
(0.32) |
(0.05) |
NM |
Revenues
For the three months ended March 31, 2015, total revenues increased by RMB1.8 million, or 9.8%, to RMB20.0 million ($3.3 million) from RMB18.2 million for the same period of last fiscal year. The increase in total revenues was mainly related to demand of our automation business from our related parties. Revenues from non-related parties hardware and software sales increased by RMB0.4 million, or 2.0%, to RMB18.4 million ($3.0 million) for the three months ended March 31, 2015, compared to RMB18.0 million for the same period of last fiscal year. Revenues from related-party hardware and software sales increased by RMB1.5 million, or 979.0%, to RMB1.7 million ($0.3 million) for the three months ended March 31, 2015, compared to RMB0.2 million for the same period of last fiscal year. We did not book revenues from our service business for the three months ended March 31, 2015, compared to RMB0.1 million for the same period of last fiscal year.
Gross profit and gross margin
Gross profit increased by RMB1.0 million, or 19.1%, to RMB6.2 million ($1.0 million) for the three months ended March 31, 2015 from RMB5.2 million for the same period of last fiscal year. Overall gross margin increased to 31.2% for the three months ended March 31, 2015 from 28.8% for the same period of last fiscal year. The increases in overall gross profit and gross margin were mainly related to our automation software business. Gross margins for hardware and software sales to non-related parties and related parties were 25.1% and 99.4% for the three months ended March 31, 2015, compared to 28.6% and 36.8% for the same period of last fiscal year, respectively. We did not book revenues for our service business for the three months ended March 31, 2015, compared to gross profit and gross margin for our service business of RMB0.04 million and 47.4%, respectively, for the same period of last fiscal year.
Operating income (loss) and operating (loss) margin
Selling and distribution expenses increased slightly by 1.1% to RMB1.1 million for the three months ended March 31, 2015. General and administrative expenses increased by RMB0.2 million, or 5.0%, to RMB4.2 million for the three months ended March 31, 2015 from RMB4.0 million for the same period of last fiscal year. Research and development expenses decreased by RMB0.2 million, or 24.5%, to RMB0.5 million for the three months ended March 31, 2015 from RMB0.7 million for the same period of last fiscal year. Total operating expenses were essentially unchanged at RMB5.8 million ($1.0 million) for the three months ended March 31, 2015.
Operating income of RMB0.4 million ($0.1 million) for the three months ended March 31, 2015 compared to operating loss of RMB0.6 million for the same period of last fiscal year. Operating margin was 2.0% for the three months ended March 31, 2015, compared to operating loss margin of 3.1% for the same period of last fiscal year.
Net loss
Net loss for the three months ended March 31, 2015 was RMB1.4 million ($0.2 million), compared to RMB1.8 million for the same period of last fiscal year. After deduction of non-controlling interest, net loss for our shareholders was RMB1.5 million ($0.3 million), or RMB0.32 ($0.05) loss per diluted share, for the three months ended March 31, 2015, compared to RMB1.9 million, or RMB0.43 loss per diluted share, for the same period of last fiscal year.
Non-GAAP Measures
For the Three Months Ended March 31, |
|||||||||
2014 |
2015 |
2015 |
|||||||
(thousands) |
RMB |
RMB |
USD |
||||||
Net income (loss) |
(1,810) |
(1,416) |
(232) |
||||||
Provision for income taxes |
151 |
(181) |
(30) |
||||||
Interest expenses and foreign currency adjustment |
246 |
337 |
55 |
||||||
Change in fair value of warrants liability |
905 |
9 |
2 |
||||||
Loss from investment |
136 |
- |
- |
||||||
Restricted shares issued for consulting services |
- |
34 |
5 |
||||||
Loss from warrants redemption |
- |
1,913 |
313 |
||||||
Stock compensation expense |
765 |
909 |
149 |
||||||
Depreciation and amortization |
156 |
95 |
16 |
||||||
Adjusted EBITDA |
548 |
1,700 |
278 |
||||||
Net income (loss) attributable to RCON |
(1,931) |
(1,527) |
(250) |
||||||
Change in fair value of warrants liability |
905 |
9 |
2 |
||||||
Loss from investment |
136 |
- |
- |
||||||
Restricted shares issued for consulting services |
- |
34 |
5 |
||||||
Loss from warrants redemption |
- |
1,913 |
313 |
||||||
Stock compensation expense |
765 |
909 |
149 |
||||||
Adjusted net income attributable to RCON |
(126) |
1,337 |
219 |
||||||
Adjusted earnings (loss) per diluted share |
(0.03) |
0.28 |
0.05 |
Adjusted EBITDA (non-GAAP), which we define as net income (loss) adjusted for income tax expense, interest expense, loss from investment, non-cash stock compensation expense, depreciation and amortization, was RMB1.7 million ($0.3 million) for the three months ended March 31, 2015, compared to RMB0.5 million for the same period of last fiscal year. Adjusted net income attributable to our shareholders was RMB1.3 million ($0.2 million), or RMB0.28 ($0.05) per diluted shares, for the three months ended March 31, 2015, compared to adjusted net loss attributable to our common shareholders of RMB0.1 million, or RMB0.03 loss per diluted share, for the same period of last fiscal year.
Year-to-Date (Nine Months) FY2015 Financial Results
For the Nine Months Ended March 31, |
|||||||||||
2014 |
2015 |
2015 |
% |
||||||||
(thousands) |
RMB |
RMB |
USD |
Change |
|||||||
Revenues |
76,012 |
45,652 |
7,473 |
-39.9% |
|||||||
Hardware and software |
73,338 |
43,120 |
7,059 |
-41.2% |
|||||||
Service |
478 |
104 |
17 |
-78.3% |
|||||||
Hardware and software - related parties |
2,196 |
2,428 |
397 |
10.6% |
|||||||
Gross margin |
35.6% |
34.7% |
34.7% |
-0.9% |
|||||||
Operating (loss) margin |
-25.3% |
-3.6% |
-3.6% |
21.7% |
|||||||
Net income (loss) attributable to RCON |
3,931 |
(363) |
(59) |
NM |
|||||||
Diluted earnings per share |
0.92 |
(0.08) |
(0.01) |
NM |
Revenues
For the nine months ended March 31, 2015, total revenues decreased by RMB30.4 million ($5.0 million), or 39.9%, to RMB45.7 million ($7.5 million) from RMB76.0 million for the same period of last fiscal year as a result of weakness across all of our businesses, particularly during the first half of fiscal year 2015. Revenues from non-related party hardware and software sales decreased by RMB30.2 million, or 41.2%, to RMB43.1 million ($7.1 million) for the nine months ended March 31, 2015, compared to RMB73.3 million for the same period of last fiscal year. Revenues from related-party hardware and software sales increased by RMB0.2 million, or 10.6%, to RMB2.4 million ($0.4 million) for the nine months ended March 31, 2015, compared to RMB2.2 million for the same period of last fiscal year. Revenues from service decreased by RMB0.4 million, or 78.3%, to RMB0.1 million ($0.02 million) for the nine months ended March 31, 2015, compared to RMB0.5 million for the same period of last fiscal year.
Gross profit and gross margin
Gross profit decreased by RMB11.2 million, or 41.5%, to RMB15.8 million ($2.6 million) for the nine months ended March 31, 2015 from RMB27.1 million for the same period of last fiscal year. Overall gross margin decreased to 34.7% for the nine months ended March 31, 2015 from 35.6% for the same period of last fiscal year. The decreases in gross profit were across all of our businesses. Gross margins for hardware and software sales to non-related parties and related parties were 30.9% and 98.9% for the nine months ended March 31, 2015, compared to 33.9% and 80.6% for the same period of last fiscal year, respectively.
Operating income (loss) and operating (loss) margin
Selling and distribution expenses decreased by RMB1.6 million, or 34.8%, to RMB3.1 million for the nine months ended March 31, 2015 from RMB4.7 million for the same period of last fiscal year. General and administrative expenses increased by RMB1.5 million, or 14.7%, to RMB12.0 million for the nine months ended March 31, 2015 from RMB10.5 million for the same period of last fiscal year. Research and development expenses decreased by RMB1.6 million, or 40.0%, to RMB2.4 million for the nine months ended March 31, 2015 from RMB4.1 million for the same period of last fiscal year. Total operating expenses decreased by RMB1.7 million, or 9.0%, to RMB17.5 million ($2.9 million) for the nine months ended March 31, 2015 from RMB19.2 million for the same period of last fiscal year.
Operating loss was RMB1.7 million ($0.3 million) for the nine months ended March 31, 2015, compared to operating income of RMB7.8 million for the same period of last fiscal year. Operating loss margin was 3.6% for the nine months ended March 31, 2015, compared to operating margin of 10.3% for the same period of last fiscal year.
Net income (loss)
Net income for the nine months ended March 31, 2015 was RMB0.2 million ($0.03 million), compared to RMB5.0 million for the same period of last fiscal year. After deduction of non-controlling interest, net loss for our shareholders was RMB0.4 million ($0.06 million), or RMB0.08 ($0.01) loss per diluted share, for the nine months ended March 31, 2015, compared to net income attributable to our shareholders of RMB3.9 million, or RMB0.92 per diluted share, for the same period of last fiscal year.
Non-GAAP Measures
For the Nine Months Ended March 31, |
|||||||||
2014 |
2015 |
2015 |
|||||||
(thousands) |
RMB |
RMB |
USD |
||||||
Net income (loss) |
4,976 |
183 |
30 |
||||||
Provision for income taxes |
1,610 |
468 |
77 |
||||||
Interest expenses and foreign currency adjustment |
845 |
827 |
135 |
||||||
Change in fair value of warrants liability |
904 |
(4,068) |
(666) |
||||||
Loss from investment |
871 |
- |
- |
||||||
Restricted shares issued for consulting services |
408 |
1,205 |
197 |
||||||
Loss from warrants redemption |
- |
1,913 |
313 |
||||||
Stock compensation expense |
1,660 |
2,024 |
331 |
||||||
Depreciation and amortization |
457 |
369 |
60 |
||||||
Adjusted EBITDA |
11,732 |
2,921 |
478 |
||||||
Net income (loss) attributable to RCON |
3,931 |
(363) |
(59) |
||||||
Change in fair value of warrants liability |
904 |
(4,068) |
(666) |
||||||
Loss from investment |
871 |
- |
- |
||||||
Restricted shares issued for consulting services |
408 |
1,205 |
197 |
||||||
Loss from warrants redemption |
- |
1,913 |
313 |
||||||
Stock compensation expense |
1,660 |
2,023 |
331 |
||||||
Adjusted net income attributable to RCON |
7,774 |
710 |
116 |
||||||
Adjusted earnings per diluted share |
1.81 |
0.15 |
0.02 |
Adjusted EBITDA (non-GAAP), which we define as net income (loss) adjusted for income tax expense, interest expense, loss from investment, non-cash stock compensation expense, depreciation and amortization, was RMB2.9 million ($0.5 million) for the nine months ended March 31, 2015, compared to RMB11.7 million for the same period of last fiscal year. Adjusted net income attributable to our shareholders was RMB0.7 million ($0.1 million), or RMB0.15 ($0.02) per diluted shares, for the nine months ended March 31, 2015, compared to RMB7.8 million, or RMB1.81 per diluted share, for the same period of last fiscal year.
Financial Position
As of March 31, 2015, the Company had cash and cash equivalents of RMB4.7 million ($0.8 million), short-term bank loans of RMB8.0 million ($1.3 million), and short-term loan to related parties of RMB10.2 million ($1.7 million), compared to RMB18.1 million, RMB10.0 million, and RMB5.2 million, respectively, at June 30, 2014. Working capital as of March 31, 2015 was RMB90.1 million ($14.7 million) as compared to RMB83.1 million at June 30, 2014. Net cash used in operating activities was RMB16.2 million ($2.7 million) for the nine months ended March 31, 2015, compared to RMB15.3 million for the same period of last fiscal year. Net cash used in investing activities was RMB0.2 million ($0.03 million) for the nine months ended March 31, 2015, essentially unchanged from a year ago. Net cash provided by financing activities was RMB3.0 million ($0.5 million) for the nine months ended March 31, 2015, compared to RMB11.9 million for the same period of last fiscal year. During the fiscal 2015 nine-month period, we repaid RMB2.0 million in short term bank loans and received RMB5.0 million net proceeds from a related party.
Recent Development
On February 18, 2015, the Company announced that it has signed an agreement with Aktobe Petroleum Machinery Co. Ltd., an affiliate of the Company's key customer -- Petro China, to jointly construct a pressure container technical service center for heating furnaces and separators in Kazakhstan.
On January 29, 2015, the Company held its annual general meeting of stockholders at which a majority of the Company's shareholders voted for: 1) an increase of authorized shares from 25 million to 75 million; 2) election of directors; 3) an approval of the Company's 2015 Equity Incentive Plan; and 4) the ratification of Friedman LLP as the Company's independent registered public accounting firm for FY2015 ending June 30, 2015.
About Recon
Recon Technology, Ltd. is China's first independent oil and gas field service company listed on NASDAQ (RCON). Closely working with leading global partners, Recon has achieved rapid growth supplying China's largest oil and gas exploration companies, including Sinopec and China National Petroleum Corporation, with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measures. The solutions Recon provides are aimed at increasing gas and petroleum extraction levels, reducing impurities, improving safety and lowering production costs. For additional information, please visit www.recon.cn.
Cautionary Statements
Statements made in this release with respect to Recon's current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Recon. Forward-looking statements include, but are not limited to, those statements using words such as "believe," "expect," "plans," "strategy," "prospects," "forecast," "estimate," "project," "anticipate," "aim," "intend," "seek," "may," "might," "could" or "should," and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management's assumptions, judgments and beliefs in light of the information currently available to it. Recon cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, 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. Therefore investors should not place undue reliance on such forward-looking statements. Actual results may differ significantly from those set forth in the forward-looking statements.
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.
Contact:
Recon Technology, Ltd.
Tel: +86-10-8494-5799
Email: [email protected]
Web: http://www.recon.cn
Weitian Investor Relations
Tina Xiao
Tel: +1-917-609-0333
Email: [email protected]
RECON TECHNOLOGY, LTD |
||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
As of June 30, |
As of March 31, |
As of March 31, |
||||||
2014 |
2015 |
2015 |
||||||
ASSETS |
RMB |
RMB |
USD |
|||||
Current assets |
||||||||
Cash and cash equivalents |
18,094,586 |
4,665,869 |
763,757 |
|||||
Notes receivable |
- |
400,000 |
65,476 |
|||||
Trade accounts receivable, net |
43,553,737 |
56,444,463 |
9,239,407 |
|||||
Trade accounts receivable - related parties, net |
7,479,298 |
4,860,821 |
795,669 |
|||||
Inventories, net |
14,336,602 |
19,127,861 |
3,131,044 |
|||||
Other receivables, net |
18,293,043 |
27,180,449 |
4,449,174 |
|||||
Other receivables - related parties |
1,414,433 |
- |
- |
|||||
Purchase advances, net |
25,759,065 |
22,870,397 |
3,743,660 |
|||||
Purchase advances - related parties |
394,034 |
394,034 |
64,500 |
|||||
Prepaid expenses |
2,634,664 |
4,200,662 |
687,608 |
|||||
Prepaid expenses - related parties |
230,000 |
362,400 |
59,321 |
|||||
Deferred tax asset |
1,209,961 |
1,260,442 |
206,322 |
|||||
Total current assets |
133,399,423 |
141,767,398 |
23,205,938 |
|||||
Property and equipment, net |
1,321,538 |
1,273,521 |
208,463 |
|||||
Long-term trade accounts receivable, net |
14,545,865 |
2,381,016 |
||||||
Long-term trade accounts receivable - related parties, net |
14,456,317 |
- |
||||||
Long-term investment |
- |
- |
- |
|||||
Long-term other receivable |
5,353,104 |
3,394,731 |
555,684 |
|||||
Total Assets |
154,530,382 |
160,981,515 |
26,351,101 |
|||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities |
||||||||
Short-term bank loans |
10,000,000 |
8,000,000 |
1,309,522 |
|||||
Trade accounts payable |
11,413,505 |
17,456,282 |
2,857,423 |
|||||
Other payables |
1,765,079 |
1,199,015 |
196,267 |
|||||
Other payable - related parties |
3,306,024 |
3,725,403 |
609,812 |
|||||
Deferred revenue |
4,419,824 |
2,776,485 |
454,483 |
|||||
Advances from customers |
801,385 |
395,600 |
64,756 |
|||||
Accrued payroll and employees' welfare |
417,624 |
309,558 |
50,672 |
|||||
Accrued expenses |
203,051 |
356,980 |
58,435 |
|||||
Taxes payable |
7,589,846 |
6,900,393 |
1,129,527 |
|||||
Short-term borrowings - related parties |
5,207,728 |
10,218,308 |
1,612,637 |
|||||
Deferred tax liability |
180,186 |
180,186 |
29,495 |
|||||
Warrants liability |
5,021,621 |
199,179 |
32,604 |
|||||
Total current liabilities |
50,325,873 |
51,717,389 |
8,465,633 |
|||||
Commitments and Contingency |
||||||||
Equity |
||||||||
Common stock, ($ 0.0185 U.S. dollar par value, 25,000,000 shares authorized; 4,717,336 and 5,022,436 shares issued and outstanding as of June 30, 2014 and March 31, 2015, respectively) |
616,865 |
651,495 |
106,641 |
|||||
Additional paid-in capital |
83,061,058 |
87,906,399 |
14,389,419 |
|||||
Appropriated retained earnings |
4,148,929 |
4,725,803 |
773,568 |
|||||
Unappropriated retained earnings |
8,431,453 |
7,491,128 |
1,226,224 |
|||||
Accumulated other comprehensive loss |
(279,275) |
(282,129) |
(46,183) |
|||||
Total shareholders' equity |
95,979,030 |
100,492,696 |
16,449,669 |
|||||
Non-controlling interest |
8,225,479 |
8,771,430 |
1,435,799 |
|||||
Total equity |
104,204,509 |
109,264,126 |
17,885,468 |
|||||
Total Liabilities and Equity |
154,530,382 |
160,981,515 |
26,514,791 |
|||||
RECON TECHNOLOGY, LTD |
|||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
|||||||||||||||||
For the nine months ended |
For the three months ended |
||||||||||||||||
March 31, |
March 31, |
||||||||||||||||
2014 |
2015 |
2015 |
2014 |
2015 |
2015 |
||||||||||||
RMB |
RMB |
USD |
RMB |
RMB |
USD |
||||||||||||
Revenues |
|||||||||||||||||
Hardware and software |
73,337,585 |
43,119,915 |
7,058,309 |
17,998,444 |
18,358,835 |
3,005,162 |
|||||||||||
Service |
477,769 |
103,774 |
16,987 |
80,180 |
- |
- |
|||||||||||
Hardware and software - related parties |
2,196,152 |
2,428,173 |
397,468 |
153,846 |
1,660,055 |
271,735 |
|||||||||||
Total revenues |
76,011,506 |
45,651,862 |
7,472,764 |
18,232,470 |
20,018,890 |
3,276,897 |
|||||||||||
Cost of revenues |
|||||||||||||||||
Hardware and software |
48,447,792 |
29,782,617 |
4,875,124 |
12,848,136 |
13,759,652 |
2,252,321 |
|||||||||||
Service |
77,107 |
- |
- |
42,161 |
- |
- |
|||||||||||
Hardware and software - related parties |
426,139 |
27,161 |
4,446 |
97,217 |
10,399 |
1,702 |
|||||||||||
Total cost of revenues |
48,951,038 |
29,809,778 |
4,879,570 |
12,987,514 |
13,770,051 |
2,254,023 |
|||||||||||
Gross profit |
27,060,468 |
15,842,084 |
2,593,194 |
5,244,956 |
6,248,839 |
1,022,874 |
|||||||||||
Selling and distribution expenses |
4,701,989 |
3,065,098 |
501,727 |
1,097,549 |
1,109,838 |
181,670 |
|||||||||||
General and administrative expenses |
10,450,904 |
11,987,761 |
1,962,279 |
3,993,341 |
4,191,030 |
686,031 |
|||||||||||
Research and development expenses |
4,074,953 |
2,444,020 |
400,062 |
720,956 |
544,063 |
89,058 |
|||||||||||
Operating expenses |
19,227,846 |
17,496,879 |
2,864,068 |
5,811,846 |
5,844,931 |
956,759 |
|||||||||||
Income (loss) from operations |
7,832,622 |
(1,654,795) |
(270,874) |
(566,890) |
403,908 |
66,115 |
|||||||||||
Other income (expenses) |
|||||||||||||||||
Subsidy income |
1,220,024 |
639,473 |
104,675 |
201,711 |
155,155 |
25,397 |
|||||||||||
Interest income |
296,997 |
225,701 |
36,945 |
92,027 |
68,233 |
11,169 |
|||||||||||
Interest expense |
(757,226) |
(808,065) |
(132,272) |
(277,578) |
(339,109) |
(55,509) |
|||||||||||
Loss from investment |
(870,627) |
- |
- |
(135,547) |
- |
- |
|||||||||||
Change in fair value of warrants liability |
(904,327) |
4,068,329 |
665,946 |
(904,883) |
(9,188) |
(1,504) |
|||||||||||
Loss from foreign currency exchange |
(88,080) |
(19,081) |
(3,123) |
31,312 |
1,799 |
294 |
|||||||||||
Loss from warrants redemption |
- |
(1,913,262) |
(313,182) |
- |
(1,913,262) |
(313,182) |
|||||||||||
Other expense |
(143,498) |
112,325 |
18,387 |
(99,552) |
35,653 |
5,836 |
|||||||||||
Income (loss) before income tax |
6,585,885 |
650,625 |
106,502 |
(1,659,400) |
(1,596,811) |
(261,384) |
|||||||||||
Provision (benefit) for income tax |
1,609,976 |
468,005 |
76,608 |
150,787 |
(180,927) |
(29,616) |
|||||||||||
Net Income (loss) |
4,975,909 |
182,620 |
29,894 |
(1,810,187) |
(1,415,884) |
(231,768) |
|||||||||||
Less: Net income attributable to non-controlling interest |
1,045,396 |
546,071 |
89,386 |
120,415 |
111,398 |
18,235 |
|||||||||||
Net Income (loss) attributable to Recon Technology, Ltd |
3,930,513 |
(363,451) |
(59,492) |
(1,930,602) |
(1,527,282) |
(250,003) |
|||||||||||
Comprehensive income (loss) |
|||||||||||||||||
Net income (loss) |
4,975,909 |
182,620 |
29,894 |
(1,810,187) |
(1,415,884) |
(231,768) |
|||||||||||
Foreign currency translation adjustment |
(40,833) |
(2,854) |
(467) |
(118,110) |
(7,580) |
(1,241) |
|||||||||||
Comprehensive income (loss) |
4,935,076 |
179,766 |
29,427 |
(1,928,297) |
(1,423,464) |
(233,009) |
|||||||||||
Less: Comprehensive income attributable to non-controlling interest |
1,041,313 |
545,952 |
89,367 |
108,604 |
111,032 |
18,175 |
|||||||||||
Comprehensive income (loss) attributable to Recon Technology, Ltd |
3,893,763 |
(366,186) |
(59,940) |
(2,036,901) |
(1,534,496) |
(251,184) |
|||||||||||
Earnings (loss) per common share - basic |
0.93 |
(0.08) |
(0.01) |
(0.43) |
(0.32) |
(0.05) |
|||||||||||
Earnings (loss) per common share - diluted |
0.92 |
(0.08) |
(0.01) |
(0.43) |
(0.32) |
(0.05) |
|||||||||||
Weighted - average shares - basic |
4,211,785 |
4,773,803 |
4,757,112 |
4,528,311 |
4,839,004 |
4,839,004 |
|||||||||||
Weighted - average shares - diluted |
4,269,510 |
4,773,803 |
4,757,112 |
4,528,311 |
4,839,004 |
4,839,004 |
|||||||||||
RECON TECHNOLOGY, LTD |
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
For the nine months ended |
||||||||
2014 |
2015 |
2015 |
||||||
RMB |
RMB |
USD |
||||||
Cash flows from operating activities: |
||||||||
Net income |
4,975,909 |
182,620 |
29,894 |
|||||
Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
Depreciation |
457,439 |
369,284 |
60,448 |
|||||
Loss from disposal of equipment |
67,587 |
(149,504) |
(24,472) |
|||||
Provision for doubtful accounts |
668,610 |
254,622 |
41,679 |
|||||
Share based compensation |
1,660,144 |
2,023,761 |
331,270 |
|||||
Loss from investment |
870,627 |
- |
- |
|||||
Deferred tax benefit |
(75,715) |
(50,481) |
(8,263) |
|||||
Change in fair value of warrants liability |
904,327 |
(4,068,329) |
(665,946) |
|||||
Restricted shares issued for services |
407,972 |
1,204,903 |
197,231 |
|||||
Loss from warrants redemption |
- |
1,913,262 |
313,182 |
|||||
Changes in operating assets and liabilities: |
||||||||
Trade accounts receivable |
(17,127,239) |
(29,115,292) |
(4,765,889) |
|||||
Trade accounts receivable - related parties |
1,487,501 |
18,681,051 |
3,057,906 |
|||||
Inventories |
(8,823,683) |
(4,791,259) |
(784,282) |
|||||
Notes receivable |
2,578,855 |
(400,000) |
(65,476) |
|||||
Other receivable, net |
688,724 |
(7,022,533) |
1,149,521 |
|||||
Other receivables related parties, net |
77,697 |
1414,433 |
231,529 |
|||||
Purchase advance, net |
(5,325,269) |
1,797,628 |
294,254 |
|||||
Tax recoverable |
575,650 |
- |
- |
|||||
Prepaid expense |
(580,144) |
(1,565,998) |
(256,339) |
|||||
Prepaid expense - related party, net |
- |
(132,400) |
(21,673) |
|||||
Trade accounts payable |
6,211,777 |
6,042,777 |
989,144 |
|||||
Trade accounts payable - related parties |
(3,994,718) |
- |
- |
|||||
Other payables |
(191,528) |
(566,064) |
92,659 |
|||||
Other payables - related parties |
(857,338) |
419,379 |
68,648 |
|||||
Deferred income |
945,091 |
(1,643,339) |
(268,999) |
|||||
Advances from customers |
(195,100) |
(405,785) |
(66,423) |
|||||
Accrued payroll and employees' welfare |
(1,603,340) |
(108,066) |
(17,689) |
|||||
Accrued expenses |
(242,617) |
185,433 |
30,354 |
|||||
Taxes payable |
1,155,303 |
(689,453) |
(112,857) |
|||||
Net cash used in operating activities |
(15,283,478) |
(16,219,350) |
(2,654,949) |
|||||
Cash flows from investing activities: |
||||||||
Purchase of property and equipment |
(258,922) |
(514,009) |
(84,138) |
|||||
Proceeds from disposal of equipment |
98,000 |
356,247 |
58,314 |
|||||
Net cash used in investing activities |
(160,922) |
(157,762) |
(25,824) |
|||||
Cash flows from financing activities: |
||||||||
Proceeds from short-term bank loans |
18,500,000 |
- |
- |
|||||
Repayments of short-term bank loans |
(12,870,000) |
(2,000,000) |
(327,380) |
|||||
Proceeds from short-term borrowings - related parties |
- |
12,550,000 |
2,054,312 |
|||||
Repayment of short-term borrowings |
(570,375) |
- |
- |
|||||
Repayment of short-term borrowings - related parties |
(5,303,279) |
(7,550,000) |
(1,235,861) |
|||||
Proceeds from sale of common stock, net of issuance costs |
12,132,882 |
- |
- |
|||||
Net cash provided by financing activities |
11,889,228 |
3,000,000 |
491,071 |
|||||
Effect of exchange rate fluctuation on cash and cash equivalents |
68,669 |
(51,605) |
(8,449) |
|||||
Net decrease in cash and cash equivalents |
(3,486,503) |
(13,428,717) |
(2,198,151) |
|||||
Cash and cash equivalents at beginning of period |
12,350,392 |
18,094,586 |
2,961,908 |
|||||
Cash and cash equivalents at end of period |
8,863,889 |
4,665,869 |
763,757 |
|||||
Supplemental cash flow information |
||||||||
Cash paid during the period for interest |
952,125 |
808,065 |
132,272 |
|||||
Cash paid during the period for taxes |
700,268 |
616,225 |
100,870 |
|||||
Non-cash investing and financing activities |
||||||||
Cancellation of prior issuance of 40,625 shares of common stock for professional services |
- |
(1,002,721) |
(164,136) |
|||||
SOURCE Recon Technology, Ltd.
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