BEIJING, July 29, 2015 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced that it, along with its wholly-owned PRC subsidiary, Recon Hengda Technology (Beijing) Co., Ltd., has entered into a memorandum of understanding (the "MOU") with Qinghai Huayou Downhole Technologies Co., Ltd. ( "QHHY"), a PRC corporation and oilfield service provider in Qinghai province.
Pursuant to the MOU entered into by and between the Company and QHHY on July 29, 2015, the Company has agreed to acquire a 100% stake in QHHY with a combination of cash and the Company stock (the "Transaction"). The terms and conditions of a definitive agreement are currently being negotiated between the two parties. Further details will be disclosed upon completion of the definitive agreement.
Mr. Shenping Yin, Chairman and Chief Executive Officer of Recon, commented, "We are excited about the unique opportunity that QHHY represents. QHHY's expertise in downhole technology will further strengthen and complement our existing product and service offerings. In addition, QHHY has demonstrated strong growth and profitability since its inception. We anticipate that QHHY's long-term contract oriented business model will provide stable cash flow which will smooth out the seasonality inherent in our existing business. We view QHHY as a good fit to our long term vision as we actively seek accretive M&A opportunities to accelerate our growth and earning power."
About Qinghai Huayou Downhole Technologies Co., Ltd.
Established in September 2011, Qinghai Huayou Downhole Technologies Co., Ltd. ("QHHY") is an oilfield service company providing a wide range of downhole technology support and services for oil and gas exploration companies primarily in Qinghai province. QHHY has more than100 employees and is a qualified oilfield service provider for PetroChina.
About Recon Technology, Ltd.
Recon Technology, Ltd. is China's first independent oil and gas field service company listed on NASDAQ. Closely working with leading global partners, Recon has achieved rapid growth by 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.
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, the timing of the development of future products, projections of revenue, earnings, capital structure and other financial items, 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.
Weitian Investor Relations
SOURCE Recon Technology, Ltd.