BEIJING, April 5, 2021 /PRNewswire/ -- Recon
Technology, Ltd (Nasdaq: RCON) ("Recon" or the "Company"), today
announced its financial results for the first six months of Fiscal
Year 2021.
First Six Months of Fiscal 2021 Financial:
- Total revenues for the six months ended December 31, 2020 decreased by 17.2% to
$3.9 million (RMB25.2 million), while revenue from oily sludge
and waste water increased by 10,618.7% or $0.4 million (RMB2.8
million).
- Gross profit for the six months ended December 31, 2020 was $1.0
million (RMB6.7 million).
Gross profit margin for the six months ended December 31, 2020 was 26.7%, representing a
decrease of 12.7 percentage points compared to the six months ended
December 31, 2019.
- Net loss attributable to Recon for the six months ended
December 31, 2020 was $1.4 million (RMB8.9
million), or $0.19
(RMB1.22) per basic and diluted
share, compared to RMB6.7 million, or
RMB1.51 per basic and diluted share,
for the six months ended December 31,
2019.
Management Commentary
Mr. Shenping Yin, co-founder and
CEO of Recon stated, "During the six months period ended
December 31, 2020, our management
focused on fund reserve and cash management to prepare for a rapid
development in the coming year. We believe oil companies in
China will continue to increase
their capital expenditures in 2021. We expect more orders to be
released in year 2021 which might be a busy year of the overall oil
industry. We expect our business will benefit from this trend and
our numbers will be improved from the second half year of calendar
2021."
Mr. Yin continued, "Besides, the oil industry is experiencing
digital transformation. We believe oil companies will continue to
increase their usages of intelligent solutions to improve the
operation efficiency. We have been devoting resources and
participating testing projects with our clients to develop leading
solutions. We will continue to enhance our competitive strength
through up-gradation with big data and intelligent analysis. We
have also seen the trend of digitalization and intelligence in
downstream of the oil and gas industry, especially in the
management and operation of gas stations in China. We have acquired 51% of Future Gas
Station (Beijing) Technology, Ltd.
by January 2021 and will continue to
invest more in this segment."
First Six Months Fiscal 2021 Financial Results:
Revenue
Total revenues for the six months ended December 31, 2020 decreased by RMB5.2 million ($0.8
million) or 17.2%, to RMB25.2
million ($3.9 million)
compared to RMB30.4 million for the
six months ended December 31, 2019
mainly due to the decreased revenue from automation products during
the six months ended December 31,
2020.
Revenue from automation product and software decreased by
RMB10.0 million ($1.5 million), or 44.1%, to RMB12.6 million ($1.9
million) for the six months ended December 31, 2020 from RMB22.6 million for the six months ended
December 31, 2019, as the Company's
sales activities were not able to return to normal level which was
affected by Covid-19. To make a breakthrough, the Company's
management has been upgrading its automation solutions and
introducing big data and intelligent technology to the Company's
products and enhancing its capacity of downhole solutions to
enhance its competitive strength.
Revenue from equipment and accessories increased by RMB1.9 million ($0.3
million), or 24.9%, to RMB9.8
million ($1.5 million) for the
six months ended December 31, 2020
from RMB7.8 million for the six
months ended December 31, 2019 as
requirement from maintenance of heating furnaces continued to
increase.
Revenue from oilfield environmental protection projects
increased by RMB2.8 million
($0.4 million), or 10,618.7%, to
RMB2.8 million ($0.4 million) for the six months ended
December 31, 2020 as the Company
stared to process oily sludge during the six months ended
December 31, 2020 and revenue was
recorded. As of December 31, 2020,
the Company received 4,680 tons of oily sludge from several oil
companies and processed 796 tons of them, which was reflected in
its revenue for the six months ended December 31, 2020.
Cost and Margin
Total cost of revenues increased slightly from RMB18.4 million for the six months ended
December 31, 2019 to RMB18.5 million ($2.8
million) for the same period in 2020. The increase was
mainly caused by increased cost of revenue from equipment and
accessories and oilfield environmental protection segments.
Gross profit decreased by RMB5.3
million ($0.8 million), or
43.9%, to RMB6.7 million
($1.0 million) for the six months
ended December 31, 2020 from
RMB12.0 million from the six months
ended December 31, 2019. The gross
profit as a percentage of revenue decreased to 26.7% for the six
months ended December 31, 2020 from
39.4% for the same period in 2019.
Operating Expenses
Selling and distribution expenses maintained at the same level
of RMB2.7 million ($0.4 million) compared to the six months ended
December 31, 2019.
General and administrative expenses decreased by RMB0.4 million ($0.1
million), or 2.7%, to RMB13.0
million ($2.0 million) for the
six months ended December 31, 2020
from RMB13.4 million for the six
months ended December 31, 2019. The
decrease in general and administrative expenses was mainly due to
the decrease in stock-based compensation expense as well as social
security expenses during the six months ended December 31, 2020.
Provision for doubtful accounts was RMB25,537 ($3,665)
for the six months ended December 31,
2019, compared to reversal of provision for doubtful
accounts of RMB3.7 million for the
six months ended December 31, 2020,
mainly due to the collection of long outstanding receivables during
the six months ended December 31,
2020.
Research and development expenses increased from approximately
RMB2.9 million for the six months
ended December 31, 2019 to
RMB3.8 million ($0.6 million) for the same period of 2020. This
increase was primarily due to more research and development expense
spent on design of new automation platform systems and treatment of
wastewater.
Net Loss
Loss from operations was RMB9.1
million ($1.4 million) for the
six months ended December 31, 2020,
compared to a loss of RMB7.0 million
for the six months ended December 31,
2019. This RMB2.1 million
($0.3 million) increase in loss from
operations was primary due to decreased revenue and increase in
R&D expenses.
Net loss was RMB10.0 million
($1.5 million) for the six months
ended December 31, 2020, an increase
of RMB3.3 million ($0.5 million) from net loss of RMB7.0 million for the six months ended
December 31, 2019. Net loss
attributable to the Company for the six months ended December 31, 2019 was RMB6.7 million, or RMB1.51 per basic and diluted share, compared to
RMB8.9 million ($1.4 million), or RMB1.22 ($0.19) per
basic and diluted share for the six months ended December 31, 2020.
As of December 31, 2020, the
Company had cash of RMB70.8 million
($10.8 million), compared to
RMB30.3 million as of June 30, 2020. As of December 31, 2020, the Company had working
capital of RMB67.0 million
($10.3 million) while as of
June 30, 2020, the Company had
working capital of RMB64.1
million.
Net cash used in operating activities was RMB16.7 million ($2.6
million) for the six months ended December 31, 2020, compared to net cash provided
by operating activities of approximately RMB0.3 million for the six months ended
December 31, 2019. Net cash provided
by investing activities was RMB1.9
million ($0.3 million) for the
six months ended December 31, 2020,
compared to net cash provided by investing activities RMB3.7 million for the six months ended
December 31, 2019. Net cash provided
by financing activities was RMB56.2
million ($8.6 million) for the
six months ended December 31, 2020,
compared to net cash provided by financing activities of
RMB1.9 million for the six months
ended December 31, 2019.
Exchange Rate
The translation of RMB amounts into U.S. dollars are included
solely for the convenience of readers and have been made at the
rate of RMB6.5326 to $1.00, the approximate exchange rate prevailing
on December 31, 2020.
About Recon Technology, Ltd
Recon Technology, Ltd (NASDAQ: RCON) is China's first NASDAQ-listed non-state owned
oil and gas field service company. Recon supplies China's largest oil exploration companies,
Sinopec (NYSE: SNP) and The China National Petroleum Corporation
("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.
Safe Harbor Statement
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, the effect of novel coronavirus and other health
matters on target markets, 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.
For more information, please contact:
Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5188
Email: info@recon.cn
RECON TECHNOLOGY,
LTD
|
CONDENSED
CONSOLIDATED INTERIM BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
As of
June 30
|
|
|
As of
December 31
|
|
|
As of
December 31
|
|
|
|
2020
|
|
|
2020
|
|
|
2020
|
|
|
|
RMB
|
|
|
RMB
|
|
|
U.S.
Dollars
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
¥
|
30,336,504
|
|
|
¥
|
70,807,497
|
|
|
$
|
10,839,024
|
|
Notes
receivable
|
|
|
4,180,885
|
|
|
|
7,789,997
|
|
|
|
1,192,472
|
|
Trade accounts
receivable, net
|
|
|
48,244,015
|
|
|
|
35,471,068
|
|
|
|
5,429,817
|
|
Trade accounts
receivable- related party, net
|
|
|
3,068,920
|
|
|
|
-
|
|
|
|
-
|
|
Inventories,
net
|
|
|
1,985,723
|
|
|
|
2,117,754
|
|
|
|
324,180
|
|
Other receivables,
net
|
|
|
6,350,802
|
|
|
|
11,004,821
|
|
|
|
1,684,589
|
|
Loans to third
parties
|
|
|
3,200,377
|
|
|
|
950,000
|
|
|
|
145,423
|
|
Purchase advances,
net
|
|
|
178,767
|
|
|
|
82,437
|
|
|
|
12,619
|
|
Contract assets,
net
|
|
|
31,537,586
|
|
|
|
45,621,966
|
|
|
|
6,983,690
|
|
Prepaid
expenses
|
|
|
198,294
|
|
|
|
-
|
|
|
|
-
|
|
Total current
assets
|
|
|
129,281,873
|
|
|
|
173,845,540
|
|
|
|
26,611,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
29,756,879
|
|
|
|
29,078,178
|
|
|
|
4,451,210
|
|
Land use right,
net
|
|
|
1,280,648
|
|
|
|
1,267,028
|
|
|
|
193,953
|
|
Investment in
unconsolidated entity
|
|
|
31,541,850
|
|
|
|
31,290,554
|
|
|
|
4,789,875
|
|
Long-term other
receivables, net
|
|
|
3,640
|
|
|
|
-
|
|
|
|
-
|
|
Operating lease
right-of-use assets (including ¥803,503 and ¥508,888 ($88,921) from
a related party as of June 30, 2020 and December 31,
2020, respectively)
|
|
|
2,549,914
|
|
|
|
2,070,548
|
|
|
|
316,954
|
|
Total
Assets
|
|
¥
|
194,414,804
|
|
|
¥
|
237,551,848
|
|
|
$
|
36,363,806
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
|
¥
|
9,520,000
|
|
|
¥
|
12,020,000
|
|
|
$
|
1,839,990
|
|
Convertible notes
payable
|
|
|
-
|
|
|
|
42,448,810
|
|
|
|
6,497,951
|
|
Trade accounts
payable
|
|
|
23,034,347
|
|
|
|
19,273,046
|
|
|
|
2,950,267
|
|
Other
payables
|
|
|
2,609,486
|
|
|
|
1,563,002
|
|
|
|
239,260
|
|
Other payable-
related parties
|
|
|
4,498,318
|
|
|
|
1,655,668
|
|
|
|
253,445
|
|
Contract
liabilities
|
|
|
3,486,033
|
|
|
|
6,686,592
|
|
|
|
1,023,566
|
|
Accrued payroll and
employees' welfare
|
|
|
1,917,635
|
|
|
|
954,304
|
|
|
|
146,081
|
|
Investment
payable
|
|
|
6,400,000
|
|
|
|
6,400,000
|
|
|
|
979,695
|
|
Taxes
payable
|
|
|
1,108,288
|
|
|
|
1,381,912
|
|
|
|
211,539
|
|
Short-term
borrowings
|
|
|
200,000
|
|
|
|
215,699
|
|
|
|
33,019
|
|
Short-term borrowings
- related parties
|
|
|
10,230,746
|
|
|
|
12,009,174
|
|
|
|
1,838,333
|
|
Long-term borrowings
- related party - current portion
|
|
|
847,346
|
|
|
|
882,900
|
|
|
|
135,152
|
|
Operating lease
liabilities - current (including ¥450,728 and ¥461,859 ($70,700)
from a related party as of June 30, 2020 and December 31,
2020, respectively)
|
|
|
1,328,976
|
|
|
|
1,333,113
|
|
|
|
204,069
|
|
Total Current
Liabilities
|
|
|
65,181,175
|
|
|
|
106,824,220
|
|
|
|
16,352,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease
liabilities - non-current (including ¥352,775 and ¥119,029
($18,221) from a related party as of June 30, 2020 and
December 31, 2020, respectively)
|
|
|
1,210,088
|
|
|
|
729,909
|
|
|
|
111,733
|
|
Long-term borrowings
- related party
|
|
|
7,379,253
|
|
|
|
6,942,795
|
|
|
|
1,062,785
|
|
Total
Liabilities
|
|
|
73,770,516
|
|
|
|
114,496,924
|
|
|
|
17,526,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, ($
0.0925 U.S. dollar par value, 20,000,000 shares authorized;
7,202,832 shares and 8,416,721 shares issued and outstanding as of
June 30, 2020 and December 31, 2020,
respectively)*
|
|
|
4,577,233
|
|
|
|
5,312,021
|
|
|
|
813,150
|
|
Additional paid-in
capital
|
|
|
282,505,455
|
|
|
|
295,104,195
|
|
|
|
45,173,769
|
|
Statutory
reserve
|
|
|
4,148,929
|
|
|
|
4,148,929
|
|
|
|
635,107
|
|
Accumulated
deficit
|
|
|
(184,027,586)
|
|
|
|
(192,963,238)
|
|
|
|
(29,538,302)
|
|
Accumulated other
comprehensive gain
|
|
|
2,825,731
|
|
|
|
1,894,365
|
|
|
|
289,984
|
|
Total
stockholders' equity
|
|
|
110,029,762
|
|
|
|
113,496,272
|
|
|
|
17,373,708
|
|
Non-controlling
interests
|
|
|
10,614,526
|
|
|
|
9,558,652
|
|
|
|
1,463,213
|
|
Total
equity
|
|
|
120,644,288
|
|
|
|
123,054,924
|
|
|
|
18,836,921
|
|
Total Liabilities
and Equity
|
|
¥
|
194,414,804
|
|
|
¥
|
237,551,848
|
|
|
$
|
36,363,806
|
|
* Retrospectively
restated for effect of stock split on December 27,
2019.
|
RECON TECHNOLOGY,
LTD
|
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
|
(UNAUDITED)
|
|
|
|
For the six months
ended
|
|
|
|
December 31,
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Revenues - third
party
|
|
¥
|
30,405,153
|
|
|
¥
|
25,083,622
|
|
|
$
|
3,839,734
|
|
Revenues - related
party
|
|
|
-
|
|
|
|
85,657
|
|
|
|
13,112
|
|
Revenues
|
|
|
30,405,153
|
|
|
|
25,169,279
|
|
|
|
3,852,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues -
third party
|
|
|
18,437,241
|
|
|
|
18,452,239
|
|
|
|
2,824,620
|
|
Cost of
revenues
|
|
|
18,437,241
|
|
|
|
18,452,239
|
|
|
|
2,824,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
11,967,912
|
|
|
|
6,717,040
|
|
|
|
1,028,227
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
|
2,660,873
|
|
|
|
2,750,389
|
|
|
|
421,022
|
|
General and
administrative expenses
|
|
|
13,366,413
|
|
|
|
13,009,013
|
|
|
|
1,991,385
|
|
Provision for (net
recovery of) doubtful accounts
|
|
|
25,537
|
|
|
|
(3,697,024)
|
|
|
|
(565,931)
|
|
Research and
development expenses
|
|
|
2,895,286
|
|
|
|
3,756,839
|
|
|
|
575,087
|
|
Operating
expenses
|
|
|
18,948,109
|
|
|
|
15,819,217
|
|
|
|
2,421,563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(6,980,197)
|
|
|
|
(9,102,177)
|
|
|
|
(1,393,336)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
|
854,389
|
|
|
|
222,038
|
|
|
|
33,989
|
|
Interest
income
|
|
|
85,745
|
|
|
|
20,168
|
|
|
|
3,087
|
|
Interest
expense
|
|
|
(761,322)
|
|
|
|
(1,000,182)
|
|
|
|
(153,105)
|
|
Income (loss) from
investment in unconsolidated entity
|
|
|
141,288
|
|
|
|
(251,296)
|
|
|
|
(38,468)
|
|
Foreign exchange
transaction gain (loss)
|
|
|
209
|
|
|
|
(78,784)
|
|
|
|
(12,060)
|
|
Other income
(loss)
|
|
|
(60,760)
|
|
|
|
50,369
|
|
|
|
7,711
|
|
Other income
(expense), net
|
|
|
259,549
|
|
|
|
(1,037,687)
|
|
|
|
(158,846)
|
|
Loss before income
tax
|
|
|
(6,720,648)
|
|
|
|
(10,139,864)
|
|
|
|
(1,552,182)
|
|
Income tax expenses
(benefit)
|
|
|
316,799
|
|
|
|
(98,338)
|
|
|
|
(15,053)
|
|
Net
loss
|
|
|
(7,037,447)
|
|
|
|
(10,041,526)
|
|
|
|
(1,537,129)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to non-controlling interests
|
|
|
(336,250)
|
|
|
|
(1,105,874)
|
|
|
|
(169,284)
|
|
Net loss
attributable to Recon Technology, Ltd
|
|
¥
|
(6,701,197)
|
|
|
¥
|
(8,935,652)
|
|
|
$
|
(1,367,845)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(7,037,447)
|
|
|
|
(10,041,526)
|
|
|
|
(1,537,129)
|
|
Foreign currency
translation adjustment
|
|
|
9,610
|
|
|
|
(931,366)
|
|
|
|
(142,571)
|
|
Comprehensive
loss
|
|
|
(7,027,837)
|
|
|
|
(10,972,892)
|
|
|
|
(1,679,700)
|
|
Less: Comprehensive
loss attributable to non-controlling interests
|
|
|
(336,250)
|
|
|
|
(1,105,874)
|
|
|
|
(169,284)
|
|
Comprehensive loss
attributable to Recon Technology, Ltd
|
|
¥
|
(6,691,587)
|
|
|
¥
|
(9,867,018)
|
|
|
$
|
(1,510,416)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share - basic and diluted
|
|
¥
|
(1.51)
|
|
|
¥
|
(1.22)
|
|
|
$
|
(0.19)
|
|
Weighted - average
shares -basic and diluted*
|
|
|
4,449,980
|
|
|
|
7,330,866
|
|
|
|
7,330,866
|
|
* Retrospectively
restated for effect of stock split on December 27,
2019.
|
RECON TECHNOLOGY,
LTD
|
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
|
|
|
For the six months
ended December 31,
|
|
|
|
2019
|
|
|
2020
|
|
|
2020
|
|
|
|
RMB
|
|
|
RMB
|
|
|
U.S.
Dollars
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
¥
|
(7,037,447)
|
|
|
¥
|
(10,041,526)
|
|
|
$
|
(1,537,129)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
411,592
|
|
|
|
1,369,590
|
|
|
|
209,653
|
|
Loss from disposal of
equipment
|
|
|
3,189
|
|
|
|
1,095
|
|
|
|
168
|
|
Provision for (net
recovery of) doubtful accounts
|
|
|
25,537
|
|
|
|
(3,697,024)
|
|
|
|
(565,931)
|
|
Provision for slow
moving inventories
|
|
|
25,312
|
|
|
|
423,714
|
|
|
|
64,861
|
|
Amortization of right
of use assets
|
|
|
718,000
|
|
|
|
542,896
|
|
|
|
83,105
|
|
Restricted shares
issued for management and employees
|
|
|
4,057,093
|
|
|
|
3,403,513
|
|
|
|
521,001
|
|
Loss (income) from
investment in unconsolidated entity
|
|
|
(141,288)
|
|
|
|
251,296
|
|
|
|
38,468
|
|
Interest expenses
related to convertible notes
|
|
|
-
|
|
|
|
84,607
|
|
|
|
12,951
|
|
Restricted shares
issued for services
|
|
|
33,927
|
|
|
|
-
|
|
|
|
-
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
|
(986,826)
|
|
|
|
(3,609,112)
|
|
|
|
(552,473)
|
|
Trade accounts
receivable
|
|
|
5,412,201
|
|
|
|
15,866,295
|
|
|
|
2,428,770
|
|
Trade accounts
receivable-related party
|
|
|
-
|
|
|
|
3,409,912
|
|
|
|
521,980
|
|
Inventories
|
|
|
(551,200)
|
|
|
|
(765,595)
|
|
|
|
(117,195)
|
|
Other
receivable
|
|
|
1,364,500
|
|
|
|
(4,262,681)
|
|
|
|
(652,520)
|
|
Other
receivables-related parties
|
|
|
-
|
|
|
|
(23,800)
|
|
|
|
(3,643)
|
|
Purchase
advance
|
|
|
1,108,902
|
|
|
|
96,330
|
|
|
|
14,746
|
|
Contract
assets
|
|
|
(9,951,981)
|
|
|
|
(14,262,839)
|
|
|
|
(2,183,318)
|
|
Prepaid
expense
|
|
|
116,917
|
|
|
|
(19,306)
|
|
|
|
(2,955)
|
|
Prepaid expense -
related parties
|
|
|
217,600
|
|
|
|
217,600
|
|
|
|
33,310
|
|
Operating lease
liabilities
|
|
|
(610,000)
|
|
|
|
(539,572)
|
|
|
|
(82,596)
|
|
Trade accounts
payable
|
|
|
362,758
|
|
|
|
(3,761,301)
|
|
|
|
(575,770)
|
|
Other
payables
|
|
|
(160,316)
|
|
|
|
(850,478)
|
|
|
|
(130,189)
|
|
Other
payables-related parties
|
|
|
1,790,155
|
|
|
|
(2,842,651)
|
|
|
|
(435,145)
|
|
Advance from
customers
|
|
|
1,904,753
|
|
|
|
3,200,559
|
|
|
|
489,933
|
|
Accrued payroll and
employees' welfare
|
|
|
1,501,406
|
|
|
|
(963,905)
|
|
|
|
(147,552)
|
|
Accrued
expenses
|
|
|
-
|
|
|
|
(198,483)
|
|
|
|
(30,383)
|
|
Taxes
payable
|
|
|
650,855
|
|
|
|
273,624
|
|
|
|
41,886
|
|
Net cash provided
by (used in) operating activities
|
|
|
265,639
|
|
|
|
(16,697,242)
|
|
|
|
(2,555,967)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(12,967)
|
|
|
|
(375,569)
|
|
|
|
(57,491)
|
|
Proceeds from
disposal of equipment
|
|
|
900
|
|
|
|
-
|
|
|
|
-
|
|
Repayments from loans
to third parties
|
|
|
4,960,000
|
|
|
|
3,200,377
|
|
|
|
489,905
|
|
Payments made for
loans to third parties
|
|
|
-
|
|
|
|
(950,000)
|
|
|
|
(145,423)
|
|
Payments and
prepayments for construction in progress
|
|
|
(1,297,663)
|
|
|
|
-
|
|
|
|
-
|
|
Net cash provided
by investing activities
|
|
|
3,650,270
|
|
|
|
1,874,808
|
|
|
|
286,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
short-term bank loans
|
|
|
-
|
|
|
|
3,520,000
|
|
|
|
538,832
|
|
Repayments of
short-term bank loans
|
|
|
-
|
|
|
|
(1,020,000)
|
|
|
|
(156,139)
|
|
Proceeds from
short-term borrowings
|
|
|
-
|
|
|
|
2,460,000
|
|
|
|
376,570
|
|
Repayments of
short-term borrowings
|
|
|
(1,081,096)
|
|
|
|
(2,460,000)
|
|
|
|
(376,570)
|
|
Proceeds from
short-term borrowings-related parties
|
|
|
13,115,000
|
|
|
|
10,100,000
|
|
|
|
1,546,081
|
|
Repayments of
short-term borrowings-related parties
|
|
|
(10,195,000)
|
|
|
|
(8,320,000)
|
|
|
|
(1,273,604)
|
|
Repayments of
long-term borrowings-related party
|
|
|
(365,530)
|
|
|
|
(399,422)
|
|
|
|
(61,142)
|
|
Proceeds from sale of
common stock, net of issuance costs
|
|
|
-
|
|
|
|
9,930,015
|
|
|
|
1,520,060
|
|
Proceeds from
issuance of convertible notes
|
|
|
-
|
|
|
|
42,364,203
|
|
|
|
6,485,000
|
|
Capital contribution
by non-controlling shareholders
|
|
|
405,000
|
|
|
|
50,000
|
|
|
|
7,654
|
|
Net cash provided
by financing activities
|
|
|
1,878,374
|
|
|
|
56,224,796
|
|
|
|
8,606,742
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash
|
|
|
9,611
|
|
|
|
(931,369)
|
|
|
|
(142,574)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash
|
|
|
5,803,894
|
|
|
|
40,470,993
|
|
|
|
6,195,192
|
|
Cash at beginning
of period
|
|
|
4,521,325
|
|
|
|
30,336,504
|
|
|
|
4,643,832
|
|
Cash at end of
period
|
|
¥
|
10,325,219
|
|
|
¥
|
70,807,497
|
|
|
$
|
10,839,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during
the period for interest
|
|
¥
|
718,201
|
|
|
¥
|
849,409
|
|
|
$
|
130,025
|
|
Cash received
during the period for taxes
|
|
¥
|
(2,002)
|
|
|
¥
|
(98,338)
|
|
|
$
|
(15,053)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Right-of-use assets
obtained in exchange for operating lease obligations
|
|
¥
|
1,228,963
|
|
|
¥
|
63,530
|
|
|
$
|
9,725
|
|
Inventories used as
fixed assets
|
|
¥
|
-
|
|
|
¥
|
302,795
|
|
|
$
|
46,351
|
|
Payable for
construction in progress
|
|
¥
|
236,302
|
|
|
¥
|
-
|
|
|
$
|
-
|
|
Receivable for
disposal of property and equipment
|
|
¥
|
5,000
|
|
|
¥
|
-
|
|
|
$
|
-
|
|
View original
content:http://www.prnewswire.com/news-releases/recon-technology-ltd-reports-financial-results-for-the-first-six-months-of-fiscal-year-2021-301261928.html
SOURCE Recon Technology, Ltd.