Recon Technology Reports Second Quarter 2014 Financial Results

Operations continue to improve, Revenue and Net profit increased

13 Feb, 2014, 06:30 ET from Recon Technology, Ltd.

BEIJING, Feb.13, 2014 /PRNewswire/ -- Recon Technology, Ltd. (Nasdaq: RCON) ("Recon" or the "Company"), a Chinese non-state-owned oilfield services provider to oil and gas companies and their affiliates, today reported results for its second quarter of fiscal 2014 ended December 31, 2013.

Q2 FY2014 Highlights

For the Three Months Ended

December 31,

2012

2013

% Change

Revenues

 RMB 45,980,600   

 RMB 46,266,326  

0.6%

Gross Profit

14,019,773

16,524,412

17.9%

Net income attributable to ordinary shareholders

5,288,361

5,814,671

10.0%

Non GAAP net income

7,479,058

9,295,123

24.3%

Basic Earnings per share

RMB            1.34   

RMB           1.40   

4.5%

Basic Weighted-average shares

3,951,811

4,162,115

5.3%

Diluted Earnings per share

RMB            1.34   

RMB           1.38   

2.8%

Diluted Weighted-average shares - diluted

3,951,811

4,224,560

6.9%

  • Total revenues for the second quarter of FY2014 were approximately RMB46.3 million ($7.6 million), an increase of 0.6% from the same period of FY2013, which were mainly contributed by sales of furnaces and automation products from our newly developed clients.
  • Gross profit for the second quarter of FY2014 increased 17.9% to above RMB16.5 million ($2.7 million). Gross margin improved from 30.5% to 35.7%.
  • Net income attributable to ordinary shareholders for the second quarter of FY2014 was RMB5.8 million ($1.0 million), or RMB1.38 ($0.23) per diluted share. Net income attributable to ordinary shareholders for the same period of FY2013 was RMB5.3 million, or RMB1.34 ($0.21) per diluted share.
  • Non GAAP net income[1] for the second quarter of FY2014 increased 24.3% to RMB9.3 million ($1.5 million). Non GAAP diluted EPS for the second quarter was  RMB2.2 (or $0.36).

[1]

We define Non GAAP net income as net income (loss) adjusted for income tax expense, interest expense, loss from investment, non-cash stock compensation expense, depreciation and amortization. Detailed explanation of the Company's non-GAAP financial measures and related reconciliations to net income are included in the accompanying "Adjusted EBITDA" part and in our 10Q.We think it is useful to an equity investor in evaluating our operating performance because: (1) it is widely used by investors in our industry to measure a company's operating performance without regard to items such as interest expense, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which the assets were acquired; and (2) it helps investors more meaningfully evaluate and compare the results of our operations from period to period by removing the impact of our capital structure and asset base from our operating results.

Six Months Highlights

For the Six Months Ended

December 31,

2012

2013

% Change

Revenues

RMB 55,034,792   

 RMB 57,779,036   

5.0%

Gross Profit

16,465,198

21,815,512

32.5%

Net income attributable to ordinary shareholders

2,944,195

5,861,115

99.1%

Non GAAP net income

5,762,878

10,776,811

87%

Basic and Diluted Earnings per share

RMB            0.75   

RMB            1.44   

93.9%

Basic and Diluted Weighted-average shares

3,951,811

4,056,963

2.7%

  • Total revenues for the first half year of FY2014 were approximately RMB57.8 million ($9.5 million), an increase of 5.0% from the same period of FY2013, mainly caused by increase of sales of furnaces and automation products.
  • Gross profit for the first half year of FY2014 increased 32.5% to RMB21.8 million ($3.6 million). Gross margin increased from 29.9% to 37.8%.
  • Net income attributable to ordinary shareholders for the six months ended December 31, 2013 was RMB5.9 million ($1.0 million), or RMB1.44 ($0.24) per diluted share. Net income attributable to ordinary shareholders for the same period of FY2013 was RMB2.9 million, or RMB0.75 ($0.12) per diluted share.
  • Non GAAP net income for the first half year of FY2014 increased 87% to RMB10.8 million ($1.8 million). Non GAAP diluted EPS for the six months ended December 31, 2013 was  RMB2.66 (or $0.43).

"We're very pleased to continue improving our net profit in the quarter, as it was up almost 100% for the first half of fiscal year 2014," said Mr. Yin, CEO of Recon Technology. "We have been expanding our client base actively since last year, and our newly developed clients, such as Jilin Petroleum Group, North China Bureau of CNPC and Southwest Oil and Gas Branch of Sinopec, contributed more than half to our furnaces and automation business increase. As we strengthen our design capacity and service offerings, we believe our leading position in the furnace and oilfield automation segment will be consolidated.

"Our onsite service business, mainly focused on the fracturing segment, is well underway. We have achieved new contracts. Also, our cooperation with Baker Hughes has expanded to additional down well services, such as milling. Through these collaborative experimental projects with well-known international companies, our working performance and solutions can continue to improve, which will position us for new business opportunities from our oilfield clients.

"As to the coming year, we are still positive and confident," Mr. Yin continued. "According to the 2014 Energy Task Guidance of China's National Energy Bureau, the government's goals include increasing oil and gas production, improving proven ratios and extraction rates, encouraging the development of unconventional oil and gas resources and accelerating construction of oil and gas infrastructures. These points are quite favorable for our industry and our business. Our business operates mainly in China's northeast, northwest and Bohai Bay districts, where China's major producing oil and gas fields are located. Recon's product lines mainly focus on helping our clients improve extraction rates and reduce production costs. Over the years, our products and services have been well-received by our clients, and we will continue to devote our efforts as professional technology and service integrators." 

Q2 FY2014 Financial Results

Total revenues for the second quarter of FY2013 increased slightly to RMB46.3 million ($7.6 million). Revenues from automation business and furnaces were quite strong, increasing 50%. Overall, our newly developed clients, Jilin Petroleum Group, Qinghai Oilfield and Southwest Branch of Sinopec, contributed most of our increasing business.

Gross profit increased to approximately RMB16.5 million ($2.7 million) for the second quarter of FY2014, up 17.9% from the same period of FY2013. Gross margin increased to 35.7% for the second quarter of FY2014 from 30.5% for the same period in FY2013. The improvement in overall gross margin was mainly due to software and furnace sales contributing to a higher portion of total revenues.

Selling and distribution expenses increased by 37.7%, from approximately RMB1.6 million for the three months ended December 31, 2012 to approximately RMB2.3 million ($0.4 million) for the second quarter of FY2014. This increase was primarily due to increased shipping charge and service charges. General and administrative expenses increased by 48.5%, or RMB1.2 million ($0.2 million), from approximately RMB2.5 million in the three months ended December 31, 2012 to approximately RMB3.7 million ($0.6 million) in the same period of 2013, mainly due to increases in fees related to IR service and salaries. Research and development expenses were RMB2.7 million ($0.4 million) for the second quarter of FY2014, down 36.6% compared to the second quarter FY2013. Overall, operating expenses increased by 3.5% year over year to RMB8.6 million ($1.3 million) for the second quarter of FY2014.

Income from operations was RMB7.9 million ($1.3 million) for the second quarter of FY2014, up 38.9% compared to RMB5.7 million for the same period of FY2013. This increase in income from operations is mainly driven by increased revenue as well as a decrease in R&D expenses.

Investment loss was approximately RMB0.4 million ($0.06 million) for the second quarter of FY2014. As of the date, we held approximately 25.0% interest of Avalon. As it has not yet filed its current period report with the SEC, this amount assumes similar performance to the prior quarter.

Net income attributable to ordinary shareholders increased by 10.0% to RMB5.8 million ($0.9 million) for the second quarter of FY2014 from RMB5.3 million for the same period of FY2013. Diluted earnings per share was RMB1.38 ($0.23) for the second quarter of FY2014, compared to RMB1.34 ($0.22) for the same period of FY2013 due to the issuance of additional shares in the current period.

Adjusted EBITDA was RMB9.3 million ($1.5 million) for the second quarter of FY2014, up 24.3% compared to RMB7.5 million for the same period of FY2013. 

Reconciliation of Adjusted EBITDA to Net Income

For the Three Months Ended

December 31,

2012

2013

2013

RMB

RMB

USD

     Net income

 RMB 5,887,567

6,579,742

$ 1,076,810

     Provision for income taxes

423,308

1,251,862

204,874

     Interest expense and foreign currency adjustment

473,057

472,081

77,259

     Loss from investment

-

556

91

     Stock compensation expense

452,348

360,466

58,992

     Depreciation and amortization

242,778

480,555

78,645

Adjusted EBITDA

 RMB 7,479,058

9,295,123

$ 1,521,198

As of December 31, 2013, cash and cash equivalents were  RMB21.7 million ($3.6 million). Cash and cash equivalents consist of cash on hand, demand deposits and highly liquid short-term debt investments with stated maturities of no more than six months.

Year-to-Date FY2014 Financial Results

Total revenues for the six months ended December 31, 2013 increased by 5.0%, or approximately RMB2.7 million ($0.4 million) to  RMB57.8 million ($9.5 million) from RMB55.0 million for the same period of fiscal 2013, primarily driven by strong sales from furnaces and automation products sales.

Gross profit increased to approximately RMB21.8 million ($3.6 million) for the six months ended December 31, 2013, up 32.5% from the same period of fiscal 2013. Gross margin increased from 29.9% for the six months ended December 31, 2012 to 37.8% for the same period ended December 31, 2013. This was mainly because revenues for fracturing services, which have lower margin than our other services accounted for a larger part of our revenue during the six months ended December 31, 2012.

Selling and distribution expenses increased by 24.2%, from approximately RMB2.9 million for the six months ended December 31, 2012 to approximately RMB3.6 million ($0.6 million) for the same period of 2013. This increase was primarily from the increased shipping and service charges. General and administrative expenses increased by 44.0% from RMB4.5 million for the six months ended December 31, 2012 to RMB6.5 million ($1.1 million) for the same period of fiscal 2014. Research and development expenses decreased by 41.5%, from approximately RMB5.7 million for the six months ended December 31, 2012 to approximately RMB3.4 million ($0.5 million) for the same period of 2013. This decrease was primarily due to lower spending on R&D materials and equipment for our furnaces and fracturing servies. Overall, operating expense were RMB13.4 million ($2.2 million) for the six months ended December 31, 2013, steady compared to same period of last year.

Income from operations was RMB8.4 million ($1.4 million) for the six months ended December 31, 2013, compared to income of RMB3.3 million for the same period of 2012. This increase in income from operations can be attributed primarily to the increased revenue, gross margins and decreases in percentage of research and development expenses.

Net income attributable to ordinary shareholders increased to RMB5.9 million ($1.0 million)  for the six months ended December 31, 2013, an improvement of approximately RMB2.9 million ($0.5 million) compared to the same period of fiscal 2013. Diluted earnings per share was RMB1.44($0.24) for the six months ended December 31, 2013, compared to diluted earnings per share of RMB0.75 ($0.12) for the same period ended December 31, 2012.

Adjusted EBITDA was RMB10.8 million ($1.8 million) for the six months ended December 31, 2013, compared to approximately RMB5.8 million income for the same period in 2012, an improvement of 87.0%.

Reconciliation of Adjusted EBITDA to Net Income (Loss)

For the Six Months Ended December 31,

2012

2013

2013

RMB

RMB

USD

     Net income (loss)

RMB

3,549,283

RMB

6,786,096

$

1,110,581

     Provision for income taxes

454,932

1,459,189

238,804

     Interest expense and foreign currency adjustment

536,353

599,040

98,036

     Change in fair value of warrants liability

-

556

91

     Loss from investment

-

735,080

120,300

     Stock compensation expense

907,153

895,509

146,555

     Depreciation and amortization

315,157

301,341

49,316

Adjusted EBITDA

RMB

5,762,878

RMB

10,776,811

$

1,763,683

For the six months ended December 31, 2013, net cash used in operating activities was approximately RMB6.8 million ($1.1 million) for the six months ended December 31, 2013. This was a decrease of approximately RMB12.0 million ($2.0 million) compared to net cash provided by operating activities of approximately RMB5.2 million for the six months ended December 31, 2012. Our net cash used in operating activities were primarily for purchase of inventories for projects in the upcoming quarters.

Net cash used in investing activities was RMB36,495 ($5,973) for the six months ended December 31, 2013, a decrease of RMB359,495 ($58,883) from RMB395,990 for the same period of 2012. The decrease was due to decrease in purchase of property and equipment.

Net cash provided by financing activities amounted to approximately RMB16.1 million ($2.6 million) for the six months ended December 31, 2013, compared to net cash used in financing activities of approximately RMB6.6 million for the six months ended December 31, 2012. During the six-month period ended December 31, 2013, we received net proceeds of RMB12.1 million ($2.0 million) from the common stock issuance of 546,500 shares to institutional investors in November 2013. In addition, we repaid approximately RMB5.3 million ($0.9 million) short term borrowings to related parties with fund generated from operation and received RMB9.36 million ($1.5 million) net loan proceeds from a commercial bank, which was 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 e-mail: 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.

Contact:      

At the Company: Recon Technology, Ltd. Tel: +86-10-8494-5799 Email: info@recon.cn Web: http://www.recon.cn

 

RECON TECHNOLOGY, LTD

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

As of June 30,

As of December 31,

As of December 31,

2013

2013

2013

ASSETS

RMB

RMB

U.S. Dollars

Current assets

Cash and cash equivalents 

RMB

12,350,392

RMB

21,733,565

$

3,556,815

Notes receivable

2,578,855

-

-

Trade accounts receivable, net 

38,648,780

66,732,266

10,921,096

Trade accounts receivable- related parties, net

18,744,364

17,798,136

2,912,761

Inventories, net

13,271,070

22,070,728

3,611,994

Other receivables, net 

19,131,503

14,191,630

2,322,537

Other receivables- related parties

742,528

595,304

97,425

Purchase advances, net

18,412,507

17,680,032

2,893,433

Purchase advances- related parties

394,034

394,034

64,486

Tax recoverable

575,650

-

-

Prepaid expenses 

2,853,956

1,630,388

266,821

Deferred tax asset

1,006,721

1,038,932

170,027

Total current assets

128,710,360

163,865,015

26,817,395

Property and equipment, net

1,709,846

1,445,001

236,482

Long-term investment

1,549,450

816,310

133,594

Long-term other receivable

3,502,680

6,627,046

1,084,552

Total Assets

RMB

135,472,336

RMB

172,753,372

$

28,272,023

LIABILITIES AND EQUITY 

Current liabilities

Short-term bank loans

RMB

10,000,000

RMB

19,360,000

$

3,168,369

Trade accounts payable

7,384,165

23,101,652

3,780,710

Trade accounts payable- related parties

3,994,718

-

-

Other payables 

1,964,691

1,408,449

230,500

Other payable- related parties

4,239,675

3,516,222

575,449

Deferred revenue

3,381,382

3,926,136

642,533

Advances from customers

470,700

554,162

90,692

Accrued payroll and employees' welfare

1,992,783

353,382

57,833

Accrued expenses

488,730

758,000

124,052

Taxes payable

6,754,428

10,047,404

1,644,312

Short-term borrowings- related parties

5,503,279

200,000

32,731

Short-term borrowings- other

570,375

460,000

75,281

Warrants liability 

-

5,044,722

825,596

Total current liabilities

46,744,926

68,730,129

11,248,058

Commitments and Contingency

Equity 

Common stock, ($ 0.0185 U.S. dollar par value, 25,000,000 shares authorized; 3,951,811 and 4,528,311shares issued and outstanding as of June 30, 2013 and December 31, 2013, respectively)

529,979

595,335

97,428

Additional paid-in capital

69,516,447

77,883,568

12,746,067

Appropriated retained earnings

3,023,231

4,655,550

761,906

Unappropriated retained earnings

8,749,963

12,978,762

2,124,045

Accumulated other comprehensive loss

(293,201)

(231,698)

(37,918)

Total controlling shareholders' equity

81,526,419

95,881,517

15,691,528

Non-controlling interest

7,200,991

8,141,726

1,332,437

Total equity

88,727,410

104,023,243

17,023,965

Total Liabilities and Equity

RMB

135,472,336

RMB

172,753,372

$

28,272,023

 

RECON TECHNOLOGY, LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

For the six months ended

For the three months ended

December 31,

December 31,

2012

2013

2013

2012

2013

2013

RMB

RMB

USD

RMB

RMB

USD

Revenues

Hardware and software

RMB

31,797,756

RMB

55,339,141

$

9,056,550

RMB

23,275,615

RMB

44,242,049

$

7,240,451

Service

20,504,959

397,589

65,068

20,504,959

397,589

65,068

Hardware and software - related parties

2,732,077

2,042,306

334,234

2,200,026

1,626,688

266,216

Total revenues

55,034,792

57,779,036

9,455,852

45,980,600

46,266,326

7,571,735

Cost of revenues

Hardware and software

RMB

20,506,088

RMB

35,599,656

$

5,826,076

RMB

14,739,526

RMB

29,480,982

$

4,824,722

Service

15,722,614

34,946

5,719

15,701,994

34,946

5,719

Hardware and software - related parties

2,340,892

328,922

53,830

1,519,307

225,986

36,984

Total cost of revenues

38,569,594

35,963,524

5,885,625

31,960,827

29,741,914

4,867,425

Gross profit

16,465,198

21,815,512

3,570,227

14,019,773

16,524,412

2,704,310

Selling and distribution expenses

2,902,994

3,604,440

589,886

1,634,196

2,250,518

368,309

General and administrative expenses

4,485,758

6,457,563

1,056,815

2,502,647

3,715,640

608,085

Research and development expenses

5,732,189

3,353,997

548,900

4,198,860

2,661,397

435,552

Operating expenses

13,120,941

13,416,000

2,195,601

8,335,703

8,627,555

1,411,946

Income from operations

3,344,257

8,399,512

1,374,626

5,684,070

7,896,857

1,292,364

Other income (expenses)

Subsidy income

800,000

1,018,313

166,652

800,000

684,601

112,039

Interest income

305,588

204,970

33,544

304,278

101,769

16,655

Interest expense

(876,414)

(479,648)

(78,497)

(546,658)

(258,389)

(42,287)

Loss from investment

-

(735,080)

(120,300)

-

(360,466)

(58,992)

Change in fair value of warrants liability

-

556

91

-

556

91

Gain (loss) from foreign currency exchange

340,061

(119,392)

(19,539)

73,601

(213,692)

(34,972)

Other income (expense)

90,723

(43,946)

(7,192)

(4,416)

(19,632)

(3,213)

Income before income tax

4,004,215

8,245,285

1,349,385

6,310,875

7,831,604

1,281,685

Provision for income tax

454,932

1,459,189

238,804

423,308

1,251,862

204,874

Net Income 

3,549,283

6,786,096

1,110,581

5,887,567

6,579,742

1,076,811

Less: Net income attributable to non-controlling interest

605,088

924,981

151,378

599,206

765,071

125,208

Net Income attributable to Recon Technology, Ltd

RMB

2,944,195

 RMB 

5,861,115

$

959,203

 RMB 

5,288,361

 RMB 

5,814,671

$

951,603

Comprehensive income 

Net income 

3,549,283

6,786,096

1,110,581

5,887,567

6,579,742

1,076,811

Foreign currency translation adjustment

(16,172)

77,277

12,647

(210)

82,881

13,564

Comprehensive income 

3,533,111

6,863,373

1,123,228

5,887,357

6,662,623

1,090,375

Less: Comprehensive income attributable to non-controlling interest

603,291

932,709

152,643

595,635

773,360

126,565

Comprehensive income attributable to Recon Technology, Ltd

RMB

2,929,820

 RMB 

5,930,664

$

970,585

 RMB 

5,291,722

 RMB 

5,889,263

$

963,810

Earnings per common share - basic 

RMB

0.75

RMB

1.44

$

0.24

RMB

1.34

RMB

1.40

$

0.23

Earnings per common share - diluted

RMB

0.75

RMB

1.44

$

0.24

RMB

1.34

RMB

1.38

$

0.23

Weighted - average shares -basic 

3,951,811

4,056,963

4,056,963

3,951,811

4,162,115

4,162,115

Weighted - average shares -diluted

3,951,811

4,056,963

4,056,963

3,951,811

4,224,560

4,224,560

 

RECON TECHNOLOGY, LTD 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 

For the six months ended December 31,

2012

2013

2013

RMB

RMB

U.S. Dollars

Cash flows from operating activities:

Net income 

RMB

3,549,283

RMB

6,786,096

$

1,110,581

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation

315,157

301,341

49,316

Gain from disposal of  equipment

(68,339)

-

-

Provision/(recovery of) for doubtful accounts

(251,451)

378,584

61,957

Share based compensation

907,153

895,509

146,555

Loss from investment

-

735,080

120,300

Deferred tax provision/(benefit)

6,024

(32,211)

(5,272)

Change in fair value of warrants liability

-

(556)

(91)

Restricted shares issued to consulting firm

-

407,972

66,767

Changes in operating assets and liabilities:

Trade accounts receivable

(20,620,729)

(27,881,579)

(4,562,971)

Trade accounts receivable-related parties

4,145,640

610,501

99,912

Notes receivable

-

2,578,855

422,044

Other receivable, net

(793,654)

1,830,372

299,549

Other receivables related parties, net

(517,022)

147,224

24,094

Purchase advance, net

(1,435,147)

472,846

77,384

Purchase advance-related party, net

699,500

-

-

Tax recoverable

2,790,722

575,650

94,208

Prepaid expense

424,771

1,223,568

200,244

Inventories

11,056,578

(8,799,658)

(1,440,112)

Trade accounts payable

(2,698,700)

15,717,487

2,572,252

Trade accounts payable-related parties

3,421,001

(3,994,718)

(653,757)

Other payables

(958,746)

(556,242)

(91,032)

Other payables-related parties

4,898,274

(723,453)

(118,397)

Deferred income

(258,569)

544,754

89,152

Advances from customers

475,295

83,462

13,659

Accrued payroll and employees' welfare

272,755

(1,639,401)

(268,297)

Accrued expenses

(203,646)

269,270

44,067

Taxes payable

54,589

3,292,976

538,913

Net cash provided by (used in) operating activities

5,210,739

(6,776,271)

(1,108,975)

Cash flows from investing activities:

Purchase of property and equipment

(490,144)

(36,495)

(5,973)

Proceeds from disposal of equipment

94,154

-

-

Net cash used in investing activities

(395,990)

(36,495)

(5,973)

Cash flows from financing activities:

Proceeds from short-term bank loans

5,000,000

15,400,000

2,520,293

Repayments of short-term bank loans

(12,000,000)

(6,040,000)

(988,479)

Proceeds from borrowings-related parties

1,610,000

-

-

Repayment of  short-term borrowings

(949,183)

(110,375)

(18,063)

Repayment of short-term borrowings-related parties

(242,434)

(5,303,279)

(867,910)

Proceeds from sale of common stock, net of issuance costs

-

12,132,882

1,985,612

Capital contribution in VIE

20,000

-

-

Net cash provided by (used in) financing activities

(6,561,617)

16,079,228

2,631,453

Effect of exchange rate fluctuation on cash and cash equivalents

282,730

116,711

19,102

Net increase (decrease) in cash and cash equivalents

(1,464,138)

9,383,173

1,535,607

Cash and cash equivalents at beginning of period

3,533,283

12,350,392

2,021,208

Cash and cash equivalents at end of period

RMB

2,069,145

RMB

21,733,565

$

3,556,815

Supplemental cash flow information

Cash paid during the period for interest

RMB

943,986

RMB

689,828

$

112,894

Cash paid during the period for taxes

RMB

-

RMB

-

$

-

SOURCE Recon Technology, Ltd.



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