Recon Technology's Subsidiary Qualifies for Preferential Income Tax Rate After Receiving Renewal of China National High-Tech Enterprise Status

BEIJING, April 28, 2017 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a leading independent oilfield services provider operating primarily in China, today announced the Company's wholly-owned subsidiary, Nanjing Recon Technology Co. Ltd. ("Nanjing Recon") has received a renewed National High-Tech Enterprise status and certification by the Science and Technology Department of Jiangsu Province.

The National High-Tech Enterprise status allows Nanjing Recon to benefit from a reduced corporate income tax rate of 15%, compared to 25% for companies without the national high-tech status. Nanjing Recon first received this status in 2009, and has since been renewed on three occasions. This renewed National High-Tech Enterprise status allows the Company to continue to receive the preferential income tax rate treatment until 2019.

Management Commentary

Mr. Shenping Yin, Chairman and CEO of Recon stated, "We are pleased to receive the renewed National High-Tech Enterprise status and to continue benefitting from the reduced corporate income tax rate. The other subsidiary of the Company, Beijing BHD Petroleum Technology, Ltd, has also qualified as a National High-Tech enterprise since 2009. We believe it reflects Recon's commitment to technological advancement, and we continue to invest in enhancing our automation services and solutions.  Research and development remains an integral part of our long-term development strategy, as we feel that it separates Recon from our lesser capitalized competitors and improves our value proposition to our customer base throughout China."    

About China's National High-Tech Enterprises

The certification of National High-Tech Enterprises was started in the early 1990s in order to establish China's high-tech industry and promote the rapid development of high tech enterprises. The State Council issued "conditions and measures of the high and new technology enterprises in National High Tech Industrial Development Zone (Guo Fa [1991] No. 12)" in 1991 and authorized the State Science and Technology Commission to organize High-Tech Enterprises of National High-Tech Industrial Development Zone. It set up a series of preferential policies in tax, financial and trade to support the development of High-Tech Enterprises.

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 us at www.recon.cn.

Safe Harbor

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.

SOURCE Recon Technology, Ltd.

Related Links

http://www.recon.cn