Recon Now Owns 51% of FGS

Recon reported the accumulated gross merchandise volume through FGS' mobile application, and mini-programs on WeChat and Alipay hit 4.34 billion yuan.
Benjamin WangFeb 09,2021,22:32

Recon Technology, Ltd. (Nasdaq: RCON) announced that two of its subsidiaries entered into the fourth supplemental agreement to the investment agreement with Future Gas Station Technology, Ltd (FGS) to acquire 8% equity ownership of FGS.

Since 2017, Recon signed multiple agreements with FGS, the ownership interest in FGS increased from 8% to 51% currently. The company said it will immediately begin to consolidate the financial results of FGS from January 2021, which will be reflected in the company's year-end financial results.

Recon reported the accumulated gross merchandise volume through FGS' mobile application, and mini-programs on WeChat and Alipay hit 4.34 billion yuan. The registered users of FGS system reached 5.1 million. The average per order amount that the FGS users paid was about 217 yuan from December 2017 to January 2021.

Last month, the company completed the design and implementation of an intelligent control platform system. The China-based independent solutions integrator said the system is designed for China Petroleum & Chemical Corporation (NYSE: SNP ) North China Branch. Two parties signed a technology service agreement in October 2020.

Founded in 2007, Recon was China's first non-state-owned oil and gas field service company publicly listed on the Nasdaq stock exchange.

In 2017, Recon started to broaden its operations by targeting the energy sector, expanding its services in the fields of electric power, coal chemicals, renewable energy, and environmental protection. According to Recon, its primary customers come from two of China’s top oil and gas companies, Kulun Energy Company Ltd. (HKEX: 0135) and China Petroleum & Chemical Corp.

Shares of Recon closed at $2.71, inchihg up two cents.

Topics:Recon; China; U.S.
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