BEIJING, Sept. 25, 2015 /PRNewswire/ -- Recon
Technology, Ltd. (NASDAQ: RCON), ("Recon" or the "Company"), a
leading independent oilfield services provider operating primarily
in China, today reported
its financial results for the fiscal year 2015,
which ended June 30, 2015.
FY2015 Financial Highlights:
- Total revenues for FY2015 were RMB51.5 million ($8.5
million), a decrease of 44.9% from FY2014.
- Gross profit for FY2015 was RMB10.1million ($1.7
million), a decrease of 68.8% from FY2014. Gross margin was
19.6% for FY2015 compared to 34.7% for FY2014.
- Operating loss was RMB35.5
million ($5.8 million) for FY2015,
compared to operating income of RMB2.8 million for FY2014.
- Net loss attributable to Recon for FY2015 was RMB31.5 million ($5.2
million), or RMB6.45
($1.06) per diluted share, compared
to net income attributable to Recon of RMB0.8 million, or RMB0.18 per diluted share, for FY2014.
- Adjusted EBITDA (non-GAAP) was negative RMB10.8 million ($1.8
million) for FY2015, compared to positive RMB8.8 million for FY2014.
- Adjusted net loss attributable to Recon was RMB9.9 million ($1.6
million), or RMB2.03 ($0.33) per
diluted shares, for FY2015, compared to adjusted net income
attributable to Recon of RMB5.1
million, or RMB1.17 per diluted share, for FY2014.
Mr. Shenping Yin, Chairman and
CEO of Recon stated, "The past twelve months have been difficult
for us as our major customers cut their capital budgets, canceled
or delayed new projects in light of slowing domestic production for
oil and gas and plunges in oil and gas prices. As a result, we
faced continued challenges throughout the fiscal year of 2015 and
saw declines in overall revenues for the first time in the Company
history. While the oil and gas industry is likely to continue to
face multifaceted challenges in the near term, we firmly believe
that we are well prepared to withstand the storm and to capitalize
on an eventual recovery of the oil and gas industry."
FY2015 Financial Results
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve
Months Ended June 30,
|
|
|
2014
|
|
2015
|
|
2015
|
|
%
|
(thousands)
|
|
RMB
|
|
RMB
|
|
USD
|
|
Change
|
Revenues
|
|
RMB
|
93,447
|
|
RMB
|
51,513
|
|
RMB
|
8,460
|
|
-44.9%
|
Hardware and
software
|
|
|
86,229
|
|
|
48,981
|
|
|
8,044
|
|
-43.2%
|
Service
|
|
|
478
|
|
|
104
|
|
|
17
|
|
-78.3%
|
Hardware and software
- related parties
|
|
|
6,740
|
|
|
2,428
|
|
|
399
|
|
-64.0%
|
Gross
margin
|
|
|
34.7%
|
|
|
19.6%
|
|
|
NM
|
|
-15.1%
|
Operating (loss)
margin
|
|
|
3.0%
|
|
|
-68.9%
|
|
|
-68.9%
|
|
NM
|
Net income (loss)
attributable to RCON
|
|
|
807
|
|
|
(31,456)
|
|
|
(5,166)
|
|
NM
|
Diluted earnings
(loss) per share
|
|
|
0.18
|
|
|
(6.45)
|
|
|
(1.06)
|
|
NM
|
For the twelve months ended June 30,
2015, total revenues decreased by RMB41.9 million, or 44.9%, to RMB51.5 million ($8.5
million) from RMB93.4
million for the same period of last fiscal year as a result of
weakness across all of our businesses, particularly during the
first half of fiscal year 2015. Revenues from non-related party
hardware and software sales decreased by RMB37.2 million, or 43.2%, to RMB49.0 million ($8.0
million) for the twelve months ended June 30, 2015, compared to RMB86.2 million for the same period of last
fiscal year. Revenues from related-party hardware and software
sales decreased by RMB4.3 million,
or 64.0%, to RMB2.4 million
($0.4 million) for the twelve months
ended June 30, 2015, compared to
RMB6.7 million for the same period
of last fiscal year. Revenues from service decreased by RMB0.4 million, or 78.3%, to RMB0.1 million ($0.02
million) for the twelve months ended June 30, 2015, compared to RMB0.5 million for the same period of last
fiscal year.
Gross profit and gross margin
Gross profit decreased by RMB22.3million, or 68.8%, to RMB10.1 million ($1.7
million) for the twelve months ended June 30, 2015 from RMB32.4 million for the same period of last
fiscal year. Overall gross margin was 19.6% for the twelve months
ended June 30, 2015, compared to
34.7% for the same period of last fiscal year.
Operating income (loss) and operating (loss) margin
Selling and distribution expenses increased by RMB6.0 million, or 113.7%, to RMB11.3 million ($1.9
million) for the twelve months ended June 30, 2015 from RMB5.3 million for the same period of last
fiscal year. General and administrative expenses increased by
RMB13.9 million, or 86.1%, to
RMB30.1 million ($5.0 million) for the twelve months ended
June 30, 2015 from RMB16.2 million for the same period of last
fiscal year. Research and development expenses decreased by
RMB3.9 million, or 48.5%, to
RMB4.2 million ($0.7 million) for the twelve months ended
June 30, 2015 from RMB8.1 million for the same period of last
fiscal year. Total operating expenses increased by RMB16.0 million, or 54.2%, to RMB45.6 million ($7.5
million) for the twelve months ended June 30, 2015 from RMB29.6 million for the same period of last
fiscal year.
Operating loss was RMB35.5 million ($5.8million) for the twelve months ended
June 30, 2015, compared to operating
income of RMB2.8 million for the same period of
last fiscal year. Operating loss margin was 68.9% for the twelve
months ended June 30, 2015, compared
to operating margin of 3.0% for the same period of last fiscal
year.
Net income (loss)
Net loss for the twelve months ended June
30, 2015 was RMB31.5 million
($5.2 million), compared to net
income of RMB1.8 million for the
same period of last fiscal year. After deduction of non-controlling
interest, net loss for our shareholders was RMB31.5 million ($5.2
million), or RMB6.45
($1.06) per diluted share, for the
twelve months ended June 30, 2015,
compared to net income attributable to our shareholders of
RMB0.8 million, or RMB0.18 per diluted share, for the same
period of last fiscal year.
Non-GAAP Measures
|
|
For the Twelve
Months Ended June 30,
|
|
|
2014
|
|
2015
|
|
2015
|
(thousands)
|
|
RMB
|
|
RMB
|
|
USD
|
Net income
(loss)
|
|
RMB
|
1,828
|
|
RMB
|
(31,456)
|
|
$
|
(5,166)
|
Provision for income
taxes
|
|
|
961
|
|
|
(2,552)
|
|
|
(419)
|
Interest expenses and
foreign currency adjustment
|
|
|
1,141
|
|
|
1,130
|
|
|
186
|
Change in fair value
of warrants liability
|
|
|
(61)
|
|
|
(4,034)
|
|
|
(663)
|
Write down of accounts
receivable
|
|
|
-
|
|
|
10,684
|
|
|
1,755
|
Provision for slow
moving inventories
|
|
|
-
|
|
|
7,701
|
|
|
1,265
|
Loss from
investment
|
|
|
1,535
|
|
|
-
|
|
|
-
|
Restricted shares
issued for consulting services
|
|
|
408
|
|
|
1,585
|
|
|
260
|
Loss from warrants
redemption
|
|
|
-
|
|
|
2,496
|
|
|
410
|
Stock compensation
expense
|
|
|
2,429
|
|
|
3,123
|
|
|
513
|
Depreciation and
amortization
|
|
|
596
|
|
|
526
|
|
|
86
|
Adjusted
EBITDA
|
|
|
8,837
|
|
|
(10,797)
|
|
|
(1,773)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to RCON
|
|
|
807
|
|
|
(31,456)
|
|
|
(5,166)
|
Change in fair value
of warrants liability
|
|
|
(61)
|
|
|
(4,034)
|
|
|
(663)
|
Loss from
investment
|
|
|
1,535
|
|
|
-
|
|
|
-
|
Restricted shares
issued for consulting services
|
|
|
408
|
|
|
1,585
|
|
|
260
|
Write down of accounts
receivable
|
|
|
-
|
|
|
10,684
|
|
|
1,755
|
Provision for slow
moving inventories
|
|
|
-
|
|
|
7,701
|
|
|
1,265
|
Loss from warrants
redemption
|
|
|
-
|
|
|
2,496
|
|
|
410
|
Stock compensation
expense
|
|
|
2,429
|
|
|
3,123
|
|
|
513
|
Adjusted net
income (loss) attributalbe to RCON
|
|
|
5,118
|
|
|
(9,901)
|
|
|
(1,626)
|
Adjusted earnings
per diluted share
|
|
|
1.17
|
|
|
(2.03)
|
|
|
(0.33)
|
Adjusted EBITDA (non-GAAP), which we define as net income (loss)
adjusted for income tax expense, interest expense, one-time write
down expenses, provision for slow moving inventories, loss from
investment, non-cash stock compensation expense, depreciation and
amortization, was negative RMB10.8
million ($1.8 million) for the twelve
months ended June 30, 2015, compared
to RMB8.8 million for the same
period of last fiscal year. Adjusted net loss attributable to our
shareholders was RMB9.9 million
($1.6 million), or RMB2.03 ($0.33) per diluted shares, for the twelve months
ended June 30, 2015, compared to
adjusted net income attributable to our shareholders of RMB5.1 million, or RMB1.16 per diluted share, for the same
period of last fiscal year.
Financial Position
As of June 30, 2015, the Company
had cash and cash equivalents of RMB12.3 million ($2.0
million), short-term bank loans of RMB7.0 million ($1.1
million), and short-term borrowings from related parties of
RMB16.9 million ($2.8 million), compared to RMB18.1 million, RMB10.0 million, and RMB5.2 million, respectively, at
June 30, 2014. Working capital as of
June 30, 2015 was RMB72.4 million ($11.9 million) as compared to RMB83.1 million at June 30, 2014. Net cash used in operating
activities was RMB15.1 million
($2.5 million) for the twelve months
ended June 30, 2015, compared to
RMB8.0 million for the same period
of last fiscal year. Net cash used in investing activities was
RMB1.7 million ($0.3 million) for the twelve months ended
June 30, 2015, compared to RMB0.3 million for the same period of last
fiscal year. Net cash provided by financing activities was
RMB11.1 million ($1.8 million) for the twelve months ended
June 30, 2015, compared to RMB14.0 million for the same period of last
fiscal year. During the fiscal year twelve-month period, we repaid
RMB3.0 million ($0.5 million) in short term bank loans and
received RMB11.7 million
($1.9 million) net proceeds from a
related party. In June 2015, we had
stock offerings to issue 297,197 shares of common stocks through an
at-the-market offering, and received net proceeds of RMB2.3 million ($0.4
million).
Recent Development
On August 6, 2015, the Company
announced that it will set up a scientific research and training
base (the "Workstation") in collaboration with the College of
Information Science & Technology of Nanjing Agricultural
University ("CIST-NAU"). With current enrollment of over
26,400 full-time students, including over 9,400 full-time master's
and doctoral students, NAU is a premier university under the
administration of Ministry of Education. Often ranked among the
nation's top 100 universities, NAU is a national key university
with both Project 211 and Project 985 designations.
On July 29, 2015, the Company
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, to acquire 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.
On June 17, 2015, the Company
announced that Wednesday, June 3,
2015's issue of the Wall Street Journal included an article
entitled, "Six Faces in the Race to Pump More Oil" (the "Article").
Mr. Shenping Yin, Chairman and Chief
Executive Officer of Recon, was among the "Six Faces" featured in
the Article. The Article can be found at:
http://graphics.wsj.com/global-oil-men.
On June 10, 2015, the Company
announced that it had received Contractor (Subcontractor)
Qualification (the "Qualification") from Jianghan Oilfield
Construction Engineering Company ("JOCEC"), a subsidiary of China
Petroleum & Chemical Corporation (NYSE: SNP) ("Sinopec"). The
Qualification, which is valid for one year from June 4, 2015 and extendable on a yearly basis
thereafter, qualifies Recon as a general contractor (subcontractor)
to participate in certain construction and engineering projects at
JOCEC ranging from the expansion and renovation of existing
facilities to the construction of new facilities. In
connection with the Qualification, the Company also announced that
it has secured a contract with JOCEC worth approximately RMB550,000.
About Recon
Recon Technology, Ltd. is China's first independent
oil and gas field service company listed on NASDAQ
(RCON). Working closely with leading global partners, Recon
has achieved rapid growth 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.
Cautionary Statements
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, 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.
Contact:
Recon Technology, Ltd.
Ivy
Xia
Tel: +86-10-8494-5799
Email: info@recon.cn
Weitian Investor Relations
Tina Xiao
Tel: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
RECON TECHNOLOGY,
LTD
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
As of June 30,
|
|
As of June 30,
|
|
As of June 30,
|
|
2014
|
|
2015
|
|
2015
|
ASSETS
|
RMB
|
|
RMB
|
|
U.S.
Dollars
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
RMB
|
18,094,586
|
|
RMB
|
12,344,929
|
|
$
|
2,027,481
|
Notes
receivable
|
|
-
|
|
|
4,205,530
|
|
|
690,699
|
Trade accounts
receivable, net
|
|
43,553,737
|
|
|
52,186,397
|
|
|
8,570,884
|
Trade accounts
receivable- related parties, net
|
|
7,479,298
|
|
|
4,769,800
|
|
|
783,373
|
Inventories,
net
|
|
14,336,602
|
|
|
10,845,007
|
|
|
1,781,140
|
Other receivables,
net
|
|
18,293,043
|
|
|
18,064,568
|
|
|
2,966,852
|
Other receivables-
related parties
|
|
1,414,433
|
|
|
91,021
|
|
|
14,949
|
Purchase advances,
net
|
|
25,759,065
|
|
|
18,622,538
|
|
|
3,058,490
|
Purchase advances-
related parties
|
|
394,034
|
|
|
394,034
|
|
|
64,715
|
Prepaid
expenses
|
|
2,634,664
|
|
|
826,314
|
|
|
135,711
|
Prepaid expenses -
related parties
|
|
230,000
|
|
|
420,000
|
|
|
68,979
|
Deferred tax
asset
|
|
1,209,961
|
|
|
1,742,098
|
|
|
286,115
|
Total current
assets
|
|
133,399,423
|
|
|
124,512,236
|
|
|
20,449,388
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
1,321,538
|
|
|
2,666,953
|
|
|
438,010
|
Long-term trade
accounts receivable, net
|
|
|
|
|
4,440,665
|
|
|
729,317
|
Long-term trade
accounts receivable - related parties, net
|
|
14,456,317
|
|
|
-
|
|
|
-
|
Long-term other
receivable
|
|
5,353,104
|
|
|
2,729,033
|
|
|
448,205
|
Total
Assets
|
RMB
|
154,530,382
|
|
RMB
|
134,348,887
|
|
$
|
22,064,920
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
RMB
|
10,000,000
|
|
RMB
|
7,000,000
|
|
$
|
1,149,652
|
Trade accounts
payable
|
|
11,413,505
|
|
|
13,627,088
|
|
|
2,238,058
|
Trade accounts
payable- related parties
|
|
-
|
|
|
3,528,705
|
|
|
579,540
|
Other
payables
|
|
1,765,079
|
|
|
2,103,057
|
|
|
345,398
|
Other payable-
related parties
|
|
3,306,024
|
|
|
4,309,702
|
|
|
707,808
|
Deferred
revenue
|
|
4,419,824
|
|
|
2,285,529
|
|
|
375,366
|
Advances from
customers
|
|
801,385
|
|
|
529,700
|
|
|
86,996
|
Accrued payroll and
employees' welfare
|
|
417,624
|
|
|
246,789
|
|
|
40,532
|
Accrued
expenses
|
|
203,051
|
|
|
199,166
|
|
|
32,715
|
Taxes
payable
|
|
7,589,846
|
|
|
1,153,216
|
|
|
189,400
|
Short-term borrowings
- related parties
|
|
5,207,728
|
|
|
16,916,905
|
|
|
2,778,364
|
Deferred tax
liability
|
|
180,186
|
|
|
180,186
|
|
|
29,593
|
Warrants
liability
|
|
5,021,621
|
|
|
-
|
|
|
-
|
Total current
liabilities
|
|
50,325,873
|
|
|
52,080,043
|
|
|
8,553,422
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Common stock, ($
0.0185 U.S. dollar par value, 25,000,000
and 100,000,000
shares authorized as
of June 30, 2014 and
2015 respectively; 4,717,336 and 5,427,946 shares issued
and
outstanding as of June 30, 2014 and June 30, 2015,
respectively)
|
|
616,865
|
|
|
697,217
|
|
|
114,508
|
Additional paid-in
capital
|
|
83,061,058
|
|
|
92,541,687
|
|
|
15,198,674
|
Appropriated retained
earnings
|
|
4,148,929
|
|
|
4,148,929
|
|
|
681,403
|
Unappropriated
retained earnings
|
|
8,431,453
|
|
|
(23,024,935)
|
|
|
(3,781,526)
|
Accumulated other
comprehensive loss
|
|
(279,275)
|
|
|
(317,551)
|
|
|
(52,155)
|
Total
shareholders' equity
|
|
95,979,030
|
|
|
74,045,347
|
|
|
12,160,904
|
Non-controlling
interest
|
|
8,225,479
|
|
|
8,223,497
|
|
|
1,350,594
|
Total
equity
|
|
104,204,509
|
|
|
82,268,844
|
|
|
13,511,498
|
Total Liabilities
and Equity
|
RMB
|
154,530,382
|
|
RMB
|
134,348,887
|
|
$
|
22,064,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these consolidated financial
statements
|
RECON TECHNOLOGY,
LTD
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|
|
|
|
|
|
|
|
|
|
For the years
ended
|
|
June
30,
|
|
2014
|
|
2015
|
|
2015
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
Hardware and
software
|
RMB
|
86,229,283
|
|
RMB
|
48,980,953
|
|
$
|
8,044,435
|
Service
|
|
477,778
|
|
|
103,774
|
|
|
17,043
|
Hardware and software
- related parties
|
|
6,740,047
|
|
|
2,428,173
|
|
|
398,793
|
Total
revenues
|
|
93,447,108
|
|
|
51,512,900
|
|
|
8,460,271
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
Hardware and
software
|
RMB
|
57,333,670
|
|
RMB
|
33,672,729
|
|
$
|
5,530,273
|
Service
|
|
77,107
|
|
|
-
|
|
|
0
|
Hardware and software
- related parties
|
|
3,619,470
|
|
|
27,161
|
|
|
4,461
|
Provision for slow
moving inventories
|
|
-
|
|
|
7,700,837
|
|
|
1,264,755
|
Total cost of
revenues
|
|
61,030,247
|
|
|
41,400,727
|
|
|
6,799,489
|
Gross
profit
|
|
32,416,861
|
|
|
10,112,173
|
|
|
1,660,782
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
5,293,343
|
|
|
11,312,452
|
|
|
1,857,912
|
General and
administrative expenses
|
|
16,198,947
|
|
|
30,147,141
|
|
|
4,951,245
|
Research and
development expenses
|
|
8,094,333
|
|
|
4,168,813
|
|
|
684,669
|
Operating
expenses
|
|
29,586,623
|
|
|
45,628,406
|
|
|
7,493,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,830,238
|
|
|
(35,516,233)
|
|
|
(5,833,044)
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
1,250,509
|
|
|
781,457
|
|
|
128,343
|
Interest
income
|
|
384,182
|
|
|
293,499
|
|
|
48,203
|
Interest
expense
|
|
(952,574)
|
|
|
(1,110,451)
|
|
|
(182,376)
|
Loss from
investment
|
|
(1,535,250)
|
|
|
-
|
|
|
-
|
Change in fair value
of warrants liability
|
|
60,647
|
|
|
4,034,272
|
|
|
662,573
|
Loss from foreign
currency exchange
|
|
(188,495)
|
|
|
(19,190)
|
|
|
(3,152)
|
Loss from warrants
redemption
|
|
-
|
|
|
(2,496,375)
|
|
|
(409,995)
|
Other
expense
|
|
939,699
|
|
|
24,558
|
|
|
4,033
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income tax
|
|
2,788,956
|
|
|
(34,008,463)
|
|
|
(5,585,415)
|
Provision (benefit)
for income tax
|
|
961,136
|
|
|
(2,552,075)
|
|
|
(419,143)
|
Net Income
(loss)
|
|
1,827,820
|
|
|
(31,456,388)
|
|
|
(5,166,272)
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to non-controlling interest
|
|
1,020,632
|
|
|
-
|
|
|
-
|
Net Income (loss)
attributable to Recon Technology, Ltd
|
RMB
|
807,188
|
|
RMB
|
(31,456,388)
|
|
$
|
(5,166,272)
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
1,827,820
|
|
|
(31,456,388)
|
|
|
(5,166,272)
|
Foreign currency
translation adjustment
|
|
17,783
|
|
|
(38,276)
|
|
|
(6,286)
|
Comprehensive
income (loss)
|
|
1,845,603
|
|
|
(31,494,664)
|
|
|
(5,172,558)
|
Less: Comprehensive
income attributable to non-controlling interest
|
|
1,022,410
|
|
|
(1,982)
|
|
|
(326)
|
Comprehensive
income (loss) attributable to Recon Technology, Ltd
|
RMB
|
823,193
|
|
RMB
|
(31,492,682)
|
|
$
|
(5,172,232)
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per common share - basic
|
RMB
|
0.19
|
|
RMB
|
(6.45)
|
|
$
|
(1.06)
|
Earnings (loss)
per common share - diluted
|
RMB
|
0.18
|
|
RMB
|
(6.45)
|
|
$
|
(1.06)
|
Weighted - average
shares -basic
|
|
4,303,955
|
|
|
4,876,504
|
|
|
4,876,504
|
Weighted - average
shares - diluted
|
|
4,368,162
|
|
|
4,876,504
|
|
|
4,876,504
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these consolidated financial
statements
|
RECON TECHNOLOGY,
LTD
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
For the years
ended
|
|
2014
|
|
2015
|
|
2015
|
|
RMB
|
|
RMB
|
|
U.S.
Dollars
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
RMB
|
1,827,820
|
|
RMB
|
(31,456,388)
|
|
$
|
(5,166,272)
|
Adjustments to
reconcile net income (loss) to net cash used
in operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
595,647
|
|
|
526,046
|
|
|
86,396
|
Loss (Gain) from
disposal of equipment
|
|
128,902
|
|
|
(193,657)
|
|
|
(31,805)
|
Provision for
doubtful accounts
|
|
1,518,778
|
|
|
3,252,868
|
|
|
534,238
|
Provision for slow
moving inventories
|
|
-
|
|
|
7,700,836
|
|
|
1,264,754
|
Share based
compensation
|
|
2,429,028
|
|
|
3,123,417
|
|
|
512,977
|
Loss from
investment
|
|
1,535,250
|
|
|
-
|
|
|
-
|
Deferred tax benefit
(provision)
|
|
(23,054)
|
|
|
(532,136)
|
|
|
(87,396)
|
Change in fair value
of warrants liability
|
|
(60,647)
|
|
|
(4,034,272)
|
|
|
(662,573)
|
Restricted shares
issued for services
|
|
407,593
|
|
|
1,585,462
|
|
|
260,390
|
Loss from warrants
redemption
|
|
-
|
|
|
2,496,375
|
|
|
409,995
|
Income tax
benefit
|
|
-
|
|
|
(2,111,281)
|
|
|
(346,748)
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
(5,291,233)
|
|
|
(3,245,218)
|
|
|
(532,982)
|
Trade accounts
receivable-related parties
|
|
(3,819,299)
|
|
|
4,315,755
|
|
|
708,803
|
Inventories
|
|
(1,065,532)
|
|
|
(4,209,241)
|
|
|
(691,309)
|
Notes
receivable
|
|
2,578,855
|
|
|
(4,205,530)
|
|
|
(690,699)
|
Other receivable,
net
|
|
(981,099)
|
|
|
2,481,328
|
|
|
407,522
|
Other receivables
related parties, net
|
|
(671,905)
|
|
|
1,323,412
|
|
|
217,352
|
Purchase advance,
net
|
|
(6,879,156)
|
|
|
3,271,935
|
|
|
537,369
|
Tax
recoverable
|
|
575,650
|
|
|
-
|
|
|
-
|
Prepaid
expense
|
|
(146,708)
|
|
|
1,808,350
|
|
|
296,996
|
Prepaid expense -
related party, net
|
|
136,000
|
|
|
(190,000)
|
|
|
(31,205)
|
Trade accounts
payable
|
|
4,029,340
|
|
|
2,213,583
|
|
|
363,550
|
Trade accounts
payable-related parties
|
|
(3,994,718)
|
|
|
3,528,705
|
|
|
579,540
|
Other
payables
|
|
(199,612)
|
|
|
337,978
|
|
|
55,508
|
Other
payables-related parties
|
|
(933,651)
|
|
|
1,003,678
|
|
|
164,840
|
Deferred
income
|
|
1,038,442
|
|
|
(2,134,295)
|
|
|
(350,528)
|
Advances from
customers
|
|
330,685
|
|
|
(271,685)
|
|
|
(44,620)
|
Accrued payroll and
employees' welfare
|
|
(1,575,159)
|
|
|
(170,835)
|
|
|
(28,057)
|
Accrued
expenses
|
|
(285,679)
|
|
|
5,291
|
|
|
869
|
Taxes
payable
|
|
835,418
|
|
|
(1,322,818)
|
|
|
(217,254)
|
Net cash used in
operating activities
|
|
(7,960,044)
|
|
|
(15,102,337)
|
|
|
(2,480,349)
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(477,957)
|
|
|
(2,078,204)
|
|
|
(341,316)
|
Proceeds from
disposal of equipment
|
|
141,716
|
|
|
400,400
|
|
|
65,760
|
Net cash used in
investing activities
|
|
(336,241)
|
|
|
(1,677,804)
|
|
|
(275,556)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
short-term bank loans
|
|
23,500,000
|
|
|
7,000,000
|
|
|
1,149,652
|
Repayments of
short-term bank loans
|
|
(23,500,000)
|
|
|
(10,000,000)
|
|
|
(1,642,360)
|
Proceeds from
short-term borrowings-related parties
|
|
5,007,728
|
|
|
18,250,000
|
|
|
2,997,307
|
Repayment of
short-term borrowings
|
|
(570,375)
|
|
|
-
|
|
|
-
|
Repayment of
short-term borrowings-related parties
|
|
(5,303,279)
|
|
|
(6,550,000)
|
|
|
(1,075,746)
|
Proceeds from sale of
common stock, net of issuance costs
|
12,132,882
|
|
|
2,392,027
|
|
|
392,857
|
Proceeds from stock
options exercised
|
|
2,704,909
|
|
|
-
|
|
|
-
|
Net cash provided
by financing activities
|
|
13,971,865
|
|
|
11,092,027
|
|
|
1,821,710
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash and cash
equivalents
|
|
68,614
|
|
|
(61,543)
|
|
|
(10,106)
|
|
|
|
|
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
|
5,744,194
|
|
|
(5,749,657)
|
|
|
(944,301)
|
Cash and cash
equivalents at beginning of year
|
|
12,350,392
|
|
|
18,094,586
|
|
|
2,971,782
|
Cash and cash
equivalents at end of year
|
RMB
|
18,094,586
|
|
RMB
|
12,344,929
|
|
$
|
2,027,481
|
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Cash paid during
the period for interest
|
RMB
|
939,416
|
|
RMB
|
1,060,529
|
|
$
|
174,177
|
Cash paid during
the period for taxes
|
RMB
|
704,982
|
|
RMB
|
881,794
|
|
$
|
144,822
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
Issuance of common
stock to prepay professional services
|
RMB
|
1,002,721
|
|
RMB
|
-
|
|
$
|
-
|
Issuance of common
stock to redeem warrants
|
RMB
|
-
|
|
RMB
|
3,462,438
|
|
$
|
568,657
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these consolidated financial
statements
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/recon-technology-ltd-reports-fiscal-year-2015-financial-results-300149079.html
SOURCE Recon Technology, Ltd.