Recon Announces Cooperation with FGS to Develop Blockchain-based Mobile Shopping System
BEIJING, Jan. 16, 2018 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service, electric power and coal chemical industries, today announced that it signed a two-year joint development term sheet with Future Gas Station (Beijing) Technology, Ltd. ("FGS"), a leading data operation company on January 15, 2017. As previously announced, Recon owns 8% of FGS. Recon and FGS plan to jointly develop an integrated blockchain-based mobile shopping system for use in gas stations. FGS will be in charge of developing this system while Recon will mainly provide resources including funds, supporting personnel and risk and compliance management advice.
Management Commentary
"We're glad to cooperate further with FGS to explore the effective use of blockchain technology in our business," stated Mr. Yin Shenping, CEO of Recon, "We are excited about the opportunities such technology provides us to adapt to consumer behaviors to better meet their needs and improve efficiency and profitability in our customers' stores. We believe development this of blockchain technology will benefit both Recon and FGS."
Mr. Song Yang, the founder of FGS, said "We have been enjoying rapid business development since Recon's investment in us in December 2017. Our platform has been implemented by more than 150 gas stations, and we have added approximately 10 gas stations daily since January 1, 2018. Since we launched our mobile app DT Refuel, it has been downloaded more than 80,000 times, with approximately 93% of downloaders activating the application and more than 86% of active users purchasing goods through the app. App downloads have been driven by QR code and in-store promotions. As a result of increased adoption and usage rates of the DT Refuel app, we have seen recent daily sales through the app reach RMB 1.6 million and we expect average app sales to reach RMB 90 million in the next three months.
"In addition to encouraging consumers to make use of our convenient platform to purchase gas at the station, our DT Refuel app can promote the sales of non-oil products by cross-selling complementary products and can distribute electronic coupons, rebates and other enticements to encourage additional purchases. DT Refuel's intelligent marketing system and linkage to China's main payment systems make purchases easy for consumers and convenient for gas station owners. Moreover, through blockchain technology's advantages of great safety, efficiency and application of smart contracts, we expect further increases in user engagement with the system, reductions costs to suppliers and optimization of the logistics chain. We believe the user interface is attractive to both consumers and stores and are eager to share this technology with even more gas stations in the future."
About Future Gas Station (Beijing) Technology, Ltd.
Established in January 2016, FGS is a leading service company focusing on providing new technical application and data operation to gas stations of oil companies such as PetroChina Co., Ltd. With its DT Refuel mobile application, FGS provides solutions to gas stations to improve their operations and their customers' experience. FGS aims to increase the overall income of gas stations through integration of internet technique and new retail E-Commerce platform, and to help transform gas stations into comprehensive service providers.
About Recon Technology, Ltd. (NASDAQ: RCON)
Recon Technology, Ltd. 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 (NYSE: 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.
Company Contact
Liu Jia, CFO
Recon Technology, Ltd.
+86 (10) 8494-5799
[email protected]
SOURCE Recon Technology, Ltd.
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