BEIJING, Nov. 13, 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 first quarter of
fiscal year 2016, which ended September 30, 2015.
Q1 FY2016 Financial Highlights:
Total revenues for the first quarter of FY2016 were RMB3.59 million ($0.57
million), a decrease of 16.5% as compared to the same period
last fiscal year.
- Gross profit for the first quarter of FY2016 was RMB0.40 million ($0.06
million), a decrease of 34.7% as compared to the same period
last fiscal year. Gross margin was 11.2% for the first quarter of
FY2016, as compared to 14.3% for the same period last fiscal
year.
- Operating loss was RMB8.68
million ($1.37 million) for
the first quarter of FY2016, compared to RMB4.45 million for the same period last fiscal
year.
- Net loss attributable to Recon for the first quarter of FY2016
was RMB8.85 million ($1.39 million), or RMB1.63 ($0.26) per
diluted share, compared to RMB4.16
million, or RMB0.87 per
diluted share, for the same period last fiscal year.
- Adjusted EBITDA (non-GAAP) was negative RMB7.00 million ($1.10
million) for the first quarter of FY2016, compared to
negative RMB2.27 million for the same
period last fiscal year.
- Adjusted net loss attributable to Recon was RMB7.52 million ($1.18
million), or RMB1.38
($0.22) per diluted shares, for the
first quarter of FY2016, compared to RMB2.66
million, or RMB0.56 per
diluted share, for the same period last fiscal year.
Mr. Shenping Yin, Chairman and
CEO of Recon stated, "During the three-month period ended
September 30, 2015, we saw a
continued downturn in oil and gas prices. Our customers still have
not increased their investment in the upstream business. However,
we are actively seeking new breakthrough business opportunities and
we are confident for our future growth."
Q1 FY2016 Financial Results
|
|
For the Three
Months Ended September 30,
|
|
|
2014
|
|
2015
|
|
2015
|
|
%
|
(thousands)
|
|
RMB
|
|
RMB
|
|
USD
|
|
Change
|
Revenues
|
|
RMB
|
4,304
|
|
RMB
|
3,594
|
|
$
|
566
|
|
-16.5%
|
Hardware and
software
|
|
|
4,246
|
|
|
3,481
|
|
|
548
|
|
-18.0%
|
Service
|
|
|
58
|
|
|
113
|
|
|
18
|
|
93.5%
|
Hardware and software
- related parties
|
|
|
-
|
|
|
-
|
|
|
-
|
|
NM
|
Gross
margin
|
|
|
14.3%
|
|
|
11.2%
|
|
|
11.2%
|
|
-3.1%
|
Operating (loss)
margin
|
|
|
-103.3%
|
|
|
-241.5%
|
|
|
-241.5%
|
|
NM
|
Net income (loss)
attributable to RCON
|
|
|
(4,162)
|
|
|
(8,849)
|
|
|
(1,393)
|
|
NM
|
Revenues
For the three months ended September 30,
2015, total revenues decreased by RMB0.71 million, or 16.5%, to RMB3.59 million ($0.57
million) from RMB4.30 million
for the same period last fiscal year mainly as a result of
decreased sales of automation software. Revenues from non-related
party hardware and software sales decreased by RMB0.76 million, or 18.0%, to RMB3.48 million ($0.55
million) for the three months ended September 30, 2015, as compared to RMB4.25 million for the same period of last
fiscal year. The Company did not book revenues from related-party
hardware and software sales for the three months ended September 30, for either this fiscal year or last
fiscal year.
Gross profit and gross margin
Cost of revenues decreased by RMB0.50
million, or 13.5%, to RMB3.19
million ($0.50 million) for
the three months ended September 30,
2015 from RMB3.69 million for
the same period of last fiscal year. As a percentage of revenues,
cost of revenues increased slightly to 88.8% for the three months
ended September 30, 2015 from 85.7%
for the same period last fiscal year.
Gross profit decreased by RMB0.21
million, or 34.7%, to RMB0.40
million ($0.06 million) for
the three months ended September 30,
2015 from RMB0.62 million for
the same period last fiscal year. Overall gross margin was 11.2%
for the three months ended September 30,
2015, compared to 14.3% for the same period last fiscal
year.
Operating income (loss) and operating (loss)
margin
Selling and distribution expenses increased by RMB0.41 million, or 58.8%, to RMB1.11 million ($0.18
million) for the three months ended September 30, 2015 from RMB0.70 million for the same period last fiscal
year. General and administrative expenses increased by RMB2.47 million, or 66.8%, to RMB6.18 million ($0.97
million) for the three months ended September 30, 2015 from RMB3.70 million for the same period last fiscal
year. Research and development expenses increased by RMB1.14 million, or 173.0%, to RMB1.79 million ($0.28
million) for the three months ended September 30, 2015 from RMB0.66 million for the same period of last
fiscal year as a result of increased research and development
effort on downhole service tools. Total operating expenses
increased by RMB4.02 million, or
79.5%, to RMB9.08 million
($1.43 million) for the three months
ended September 30, 2015 from
RMB5.06 million for the same period
during last fiscal year.
Operating loss was RMB8.68 million
($1.37 million) for the three months
ended September 30, 2015, compared to
RMB4.45 million for the same period
last fiscal year. Operating loss margin was 241.5% for the three
months ended September 30, 2015,
compared to 103.3% for the same period last fiscal year.
Net income (loss)
Net loss to our shareholders for the three months ended
September 30, 2015 was RMB8.85 million ($1.39
million), or RMB1.63
($0.26) per diluted share, compared
to RMB4.16 million, or RMB0.87 per diluted share, for the same period
last fiscal year.
Non-GAAP Measures
|
|
For the Three
Months Ended September 30,
|
|
|
2014
|
|
2015
|
|
2015
|
(thousands)
|
|
RMB
|
|
RMB
|
|
USD
|
Net income
(loss)
|
|
RMB
|
(4,162)
|
|
RMB
|
(8,849)
|
|
$
|
(1,393)
|
Provision for income
taxes
|
|
|
30
|
|
|
(16)
|
|
|
(3)
|
Interest expenses and
foreign currency adjustment
|
|
|
244
|
|
|
279
|
|
|
44
|
Change in fair value
of warrants liability
|
|
|
(274)
|
|
|
-
|
|
|
-
|
Restricted shares
issued for consulting services
|
|
|
1,171
|
|
|
202
|
|
|
32
|
Stock compensation
expense
|
|
|
601
|
|
|
1,127
|
|
|
177
|
Depreciation and
amortization
|
|
|
121
|
|
|
260
|
|
|
41
|
Adjusted
EBITDA
|
|
|
(2,269)
|
|
|
(6,997)
|
|
|
(1,102)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to RCON
|
|
|
(4,162)
|
|
|
(8,849)
|
|
|
(1,393)
|
Change in fair value
of warrants liability
|
|
|
(274)
|
|
|
-
|
|
|
-
|
Restricted shares
issued for consulting services
|
|
|
1,171
|
|
|
202
|
|
|
32
|
Stock compensation
expense
|
|
|
601
|
|
|
1,127
|
|
|
177
|
Adjusted net
income (loss) attributalbe to RCON
|
|
|
(2,664)
|
|
|
(7,520)
|
|
|
(1,184)
|
Adjusted earnings
per diluted share
|
|
|
(0.56)
|
|
|
(1.38)
|
|
|
(0.22)
|
Adjusted EBITDA (non-GAAP), which we define as net income (loss)
adjusted for income tax expense (benefit), interest expense, change
in fair value of warrants liability, non-cash stock compensation
expense, depreciation and amortization, was negative RMB7.00 million ($1.10
million) for the three months ended September 30, 2015, compared to negative
RMB2.27 million for the same period
last fiscal year. This was mainly due to decreased revenue and
increased research and development expenses. Adjusted net loss
attributable to our shareholders was RMB7.52
million ($1.18 million), or
RMB1.38 ($0.22) per diluted shares, for the three months
ended September 30, 2015, compared to
RMB2.66 million, or RMB0.56 per diluted share, for the same period
last fiscal year.
Financial Position:
As of September 30, 2015, the
Company had cash and cash equivalents of RMB3.88 million ($0.61
million), short-term bank loans of RMB7.00 million ($1.10
million), and short-term borrowings from related parties of
RMB9.41 million ($1.48 million), compared to RMB12.34 million, RMB7.00
million, and RMB16.92 million,
respectively, at June 30, 2015.
Working capital as of September 30,
2015 was RMB66.48 million
($10.46 million) as compared to
RMB72.43 million at June 30, 2015. Net cash used in operating
activities was RMB0.97 million
($0.15 million) for the three months
ended September 30, 2015, compared to
RMB9.97 million for the same period
of last fiscal year. Net cash used in investing activities was
RMB0.47 million ($0.07 million) for the three months ended
September 30, 2015, compared to
RMB0.10 million for the same period
of last fiscal year. Net cash used in financing activities was
RMB7.13 million ($1.12 million) for the three months ended
September 30, 2015, compared to
RMB2.00 million for the same period
last fiscal year. During the three-month period ended September 30, 2015, we repaid RMB9.10 million ($1.43
million) in short-term borrowings to two related parties and
received RMB1.80 million
($0.28 million) in short-term
borrowings from one related party.
Recent Development
On September 22, 2015, the Company
entered into an amendment to the Letter Agreement with Maxim Group
LLC, dated January 28, 2015,
extending the term of the Letter Agreement for an additional six
months, or until February 29, 2016.
As of November 13, 2015, a total of
313,071 shares have been issued under this Letter
Agreement.
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 a current enrollment of more
than 26,400 full-time students, including more than 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 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 a definitive
agreement.
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 Jun
30,
|
|
As of Sep
30,
|
|
As of Sep
30,
|
|
2015
|
|
2015
|
|
2015
|
ASSETS
|
RMB
|
|
RMB
|
|
U.S.
Dollars
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
RMB
|
12,344,929
|
|
RMB
|
3,877,272
|
|
$
|
610,229
|
Notes
receivable
|
|
4,205,530
|
|
|
3,227,580
|
|
|
507,976
|
Trade accounts
receivable, net
|
|
52,186,397
|
|
|
51,501,307
|
|
|
8,105,591
|
Trade accounts
receivable- related parties, net
|
|
4,769,800
|
|
|
-
|
|
|
-
|
Inventories,
net
|
|
10,845,007
|
|
|
11,876,883
|
|
|
1,869,257
|
Other receivables,
net
|
|
18,064,568
|
|
|
19,137,645
|
|
|
3,012,000
|
Other receivables-
related parties
|
|
91,021
|
|
|
-
|
|
|
-
|
Purchase advances,
net
|
|
18,622,538
|
|
|
17,410,721
|
|
|
2,740,206
|
Purchase advances-
related parties
|
|
394,034
|
|
|
-
|
|
|
-
|
Prepaid
expenses
|
|
826,314
|
|
|
407,220
|
|
|
64,091
|
Prepaid expenses -
related parties
|
|
420,000
|
|
|
210,000
|
|
|
33,051
|
Deferred tax
asset
|
|
1,742,098
|
|
|
1,758,555
|
|
|
276,771
|
Total current
assets
|
|
124,512,236
|
|
|
109,407,183
|
|
|
17,219,172
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
2,666,953
|
|
|
2,877,450
|
|
|
452,871
|
Long-term trade
accounts receivable, net
|
|
4,440,665
|
|
|
3,407,973
|
|
|
536,368
|
Long-term other
receivable
|
|
2,729,033
|
|
|
2,056,776
|
|
|
323,708
|
Total
Assets
|
RMB
|
134,348,887
|
|
RMB
|
117,749,382
|
|
$
|
18,532,119
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Short-term bank
loans
|
RMB
|
7,000,000
|
|
RMB
|
7,000,000
|
|
$
|
1,101,703
|
Trade accounts
payable
|
|
13,627,088
|
|
|
13,409,825
|
|
|
2,110,520
|
Trade accounts
payable- related parties
|
|
3,528,705
|
|
|
3,273,879
|
|
|
515,263
|
Other
payables
|
|
2,103,057
|
|
|
1,794,205
|
|
|
282,383
|
Other payable-
related parties
|
|
4,309,702
|
|
|
1,844,628
|
|
|
290,319
|
Deferred
revenue
|
|
2,285,529
|
|
|
2,452,511
|
|
|
385,991
|
Advances from
customers
|
|
529,700
|
|
|
370,984
|
|
|
58,388
|
Accrued payroll and
employees' welfare
|
|
246,789
|
|
|
330,057
|
|
|
51,946
|
Accrued
expenses
|
|
199,166
|
|
|
202,852
|
|
|
31,926
|
Taxes
payable
|
|
1,153,216
|
|
|
2,660,650
|
|
|
418,749
|
Short-term borrowings
- related parties
|
|
16,916,905
|
|
|
9,405,714
|
|
|
1,480,329
|
Deferred tax
liability
|
|
180,186
|
|
|
180,186
|
|
|
28,359
|
Total current
liabilities
|
|
52,080,043
|
|
|
42,925,491
|
|
|
6,755,876
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Common stock, ($
0.0185 U.S. dollar par value, 100,000,000
shares authorized; 5,427,946 and 5,438,763 shares issued and
outstanding as of June 30, 2015 and September 30, 2015,
respectively)
|
|
697,217
|
|
|
699,013
|
|
|
110,015
|
Additional paid-in
capital
|
|
92,541,687
|
|
|
93,802,706
|
|
|
14,763,245
|
Appropriated retained
earnings
|
|
4,148,929
|
|
|
4,148,929
|
|
|
652,984
|
Unappropriated
retained earnings
|
|
(23,024,935)
|
|
|
(31,873,541)
|
|
|
(5,016,453)
|
Accumulated other
comprehensive loss
|
|
(317,551)
|
|
|
(193,333)
|
|
|
(30,428)
|
Total
shareholders' equity
|
|
74,045,347
|
|
|
66,583,774
|
|
|
10,479,363
|
Non-controlling
interest
|
|
8,223,497
|
|
|
8,240,117
|
|
|
1,296,880
|
Total
equity
|
|
82,268,844
|
|
|
74,823,891
|
|
|
11,776,243
|
Total Liabilities
and Equity
|
RMB
|
134,348,887
|
|
RMB
|
117,749,382
|
|
$
|
18,532,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECON TECHNOLOGY,
LTD
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended
|
|
|
September
30,
|
|
|
2014
|
|
2015
|
|
2015
|
|
|
RMB
|
|
RMB
|
|
USD
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Hardware and
software
|
RMB
|
4,245,509
|
|
RMB
|
3,480,752
|
|
$
|
547,822
|
|
Service
|
|
58,491
|
|
|
113,208
|
|
|
17,817
|
|
Total
revenues
|
|
4,304,000
|
|
|
3,593,960
|
|
|
565,639
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
|
Hardware and
software
|
RMB
|
3,688,686
|
|
RMB
|
3,315,627
|
|
$
|
521,834
|
|
Provision for slow
moving inventories
|
|
-
|
|
|
(123,332)
|
|
|
(19,411)
|
|
Total cost of
revenues
|
|
3,688,686
|
|
|
3,192,295
|
|
|
502,423
|
|
Gross
profit
|
|
615,314
|
|
|
401,665
|
|
|
63,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
700,790
|
|
|
1,112,670
|
|
|
175,119
|
|
General and
administrative expenses
|
|
3,703,291
|
|
|
6,177,145
|
|
|
972,197
|
|
Research and
development expenses
|
|
656,729
|
|
|
1,792,997
|
|
|
282,193
|
|
Operating
expenses
|
|
5,060,810
|
|
|
9,082,812
|
|
|
1,429,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(4,445,496)
|
|
|
(8,681,147)
|
|
|
(1,366,293)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
|
|
|
Subsidy
income
|
|
214,703
|
|
|
49,000
|
|
|
7,712
|
|
Interest
income
|
|
83,032
|
|
|
55,510
|
|
|
8,737
|
|
Interest
expense
|
|
(241,844)
|
|
|
(277,824)
|
|
|
(43,726)
|
|
Change in fair value
of warrants liability
|
|
274,399
|
|
|
-
|
|
|
-
|
|
Loss from foreign
currency exchange
|
|
(2,074)
|
|
|
(938)
|
|
|
(148)
|
|
Other
expense
|
|
(14,020)
|
|
|
(9,664)
|
|
|
(1,521)
|
|
Other
income(expense)
|
|
314,196
|
|
|
(183,916)
|
|
|
(28,946)
|
|
Loss before income
tax
|
|
(4,131,300)
|
|
|
(8,865,063)
|
|
|
(1,395,239)
|
|
Provision (benefit)
for income tax
|
|
30,245
|
|
|
(16,457)
|
|
|
(2,590)
|
|
Net
Loss
|
|
(4,161,545)
|
|
|
(8,848,606)
|
|
|
(1,392,649)
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to non-controlling interest
|
|
-
|
|
|
-
|
|
|
-
|
|
Net loss
attributable to Recon Technology, Ltd
|
RMB
|
(4,161,545)
|
|
RMB
|
(8,848,606)
|
|
$
|
(1,392,649)
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(4,161,545)
|
|
|
(8,848,606)
|
|
|
(1,392,649)
|
|
Foreign currency
translation adjustment
|
|
(802)
|
|
|
124,218
|
|
|
19,550
|
|
Comprehensive
loss
|
|
(4,162,347)
|
|
|
(8,724,388)
|
|
|
(1,373,099)
|
|
Less: Comprehensive
loss attributable to non-controlling interest
|
|
(41)
|
|
|
16,620
|
|
|
2,616
|
|
Comprehensive loss
attributable to Recon Technology, Ltd
|
RMB
|
(4,162,306)
|
|
RMB
|
(8,741,008)
|
|
$
|
(1,375,715)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share - basic
|
RMB
|
(0.87)
|
|
RMB
|
(1.63)
|
|
$
|
(0.26)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted - average
shares - basic
|
|
4,757,112
|
|
|
5,438,763
|
|
|
5,438,763
|
|
|
|
|
|
|
|
|
|
|
|
RECON TECHNOLOGY,
LTD
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
For the three
months ended September
|
|
2014
|
|
2015
|
|
2015
|
|
RMB
|
|
RMB
|
|
U.S.
Dollars
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
RMB
|
(4,161,545)
|
|
RMB
|
(8,848,606)
|
|
$
|
(1,392,649)
|
Adjustments to
reconcile net income (loss) to net cash used
in operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
121,347
|
|
|
259,768
|
|
|
40,884
|
Provision for
doubtful accounts
|
|
(68,361)
|
|
|
2,109,926
|
|
|
332,073
|
Provision for slow
moving inventories
|
|
-
|
|
|
(123,332)
|
|
|
(19,411)
|
Share based
compensation
|
|
600,578
|
|
|
1,126,552
|
|
|
177,304
|
Deferred tax benefit
(provision)
|
|
(2,034)
|
|
|
(16,458)
|
|
|
(2,590)
|
Change in fair value
of warrants liability
|
|
(274,399)
|
|
|
-
|
|
|
-
|
Restricted shares
issued for services
|
|
1,171,331
|
|
|
202,475
|
|
|
31,867
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Notes
receivable
|
|
-
|
|
|
977,950
|
|
|
153,916
|
Trade accounts
receivable
|
|
5,087,718
|
|
|
1,685,745
|
|
|
265,313
|
Trade accounts
receivable-related parties
|
|
508,979
|
|
|
4,569,800
|
|
|
719,224
|
Inventories
|
|
(2,879,769)
|
|
|
(908,544)
|
|
|
(142,992)
|
Other receivable,
net
|
|
(3,818,122)
|
|
|
(419,821)
|
|
|
(66,075)
|
Other receivables
related parties, net
|
|
1,414,433
|
|
|
91,021
|
|
|
14,325
|
Purchase advance,
net
|
|
(1,752,557)
|
|
|
(847,071)
|
|
|
(133,317)
|
Purchase
advance-related party, net
|
|
(1,105,966)
|
|
|
394,034
|
|
|
62,015
|
Prepaid
expense
|
|
(1,754,029)
|
|
|
216,619
|
|
|
34,093
|
Prepaid expense -
related party, net
|
|
230,000
|
|
|
210,000
|
|
|
33,051
|
Trade accounts
payable
|
|
(1,566,988)
|
|
|
(217,263)
|
|
|
(34,194)
|
Trade accounts
payable-related parties
|
|
389,143
|
|
|
(254,826)
|
|
|
(40,106)
|
Other
payables
|
|
(723,368)
|
|
|
(308,852)
|
|
|
(48,609)
|
Other
payables-related parties
|
|
135,312
|
|
|
(2,465,074)
|
|
|
(387,968)
|
Deferred
income
|
|
(283,306)
|
|
|
166,982
|
|
|
26,281
|
Advances from
customers
|
|
(519,350)
|
|
|
(158,716)
|
|
|
(24,980)
|
Accrued payroll and
employees' welfare
|
|
28,673
|
|
|
83,268
|
|
|
13,105
|
Accrued
expenses
|
|
14,055
|
|
|
(7,505)
|
|
|
(1,181)
|
Taxes
payable
|
|
(759,764)
|
|
|
1,507,434
|
|
|
237,249
|
Net cash used in
operating activities
|
|
(9,967,989)
|
|
|
(974,494)
|
|
|
(153,372)
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of property
and equipment
|
|
(96,008)
|
|
|
(470,265)
|
|
|
(74,013)
|
Net cash used in
investing activities
|
|
(96,008)
|
|
|
(470,265)
|
|
|
(74,013)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Repayments of
short-term bank loans
|
|
(2,000,000)
|
|
|
-
|
|
|
-
|
Proceeds from
short-term borrowings-related parties
|
|
|
|
|
1,800,000
|
|
|
283,295
|
Repayment of
short-term borrowings-related parties
|
|
|
|
|
(9,100,000)
|
|
|
(1,432,214)
|
Proceeds from sale of
common stock, net of issuance costs
|
|
|
|
|
165,823
|
|
|
26,098
|
Net cash provided
by financing activities
|
|
(2,000,000)
|
|
|
(7,134,177)
|
|
|
(1,122,821)
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate fluctuation on cash and cash
equivalents
|
|
(478)
|
|
|
111,279
|
|
|
17,514
|
|
|
|
|
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
|
(12,064,475)
|
|
|
(8,467,657)
|
|
|
(1,332,692)
|
Cash and cash
equivalents at beginning of year
|
|
18,094,586
|
|
|
12,344,929
|
|
|
1,942,921
|
Cash and cash
equivalents at end of year
|
RMB
|
6,030,111
|
|
RMB
|
3,877,272
|
|
$
|
610,229
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash
flow information
|
|
|
|
|
|
|
|
|
Cash paid during
the period for interest
|
RMB
|
230,035
|
|
RMB
|
277,823.74
|
|
$
|
43,726
|
Cash paid during
the period for taxes
|
RMB
|
32,280
|
|
RMB
|
72,216.93
|
|
$
|
11,366
|
|
|
|
|
|
|
|
|
|
Non-cash investing
and financing activities
|
|
|
|
|
|
|
|
|
Cancelation of
prior issuance of 40,625 shares of common stock
for professional services
|
RMB
|
1,002,721
|
|
RMB
|
-
|
|
$
|
-
|
Non-cash transaction
for AR and loan payable offset
|
RMB
|
-
|
|
RMB
|
200,000.00
|
|
$
|
31,477
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/recon-technology-ltd-reports-fiscal-year-2016-first-quarter-financial-results-300178355.html
SOURCE Recon Technology, Ltd.