Recon Technology Announces 143% Increase in Third Quarter Revenue

Gross profit increased to approximately RMB 5.2 million ($0.9 million) for the three months ended March 31, 2014 from approximately RMB 4.2 million for the same period in 2013. Our gross profit as a percentage of revenue decreased to 28.8% for the three months ended March 31, 2014 from 55.4% for the same period in 2013. This was mainly because lower margin hardware revenues increased during the three months ended March 31, 2014 compared to the same period last year and higher margin software revenues decreased during the three months ended March 31, 2014.

Selling expenses decreased by 38.7%, from approximately RMB 1.8 million for the three months ended March 31, 2013 to approximately RMB 1.1 million ($0.2 million) for the same period of 2014. This decrease was primarily from the decreased traveling expenses, bidding fee, salaries and maintenance expenses. Selling expenses were 23.9% of total revenues in the three months ended March 31, 2013 and 6% of total revenues in the same period of 2014.

Loss from operations was approximately RMB 0.6 million ($0.1 million) for the three months ended March 31, 2014, compared to loss of RMB 2.2 million for the same period of 2013. This decrease in loss from operations can be attributed primarily to the increased revenue, gross margins and decreases in research and development expenses.

As a result of the factors described above, net loss attributable to ordinary shareholders was approximately RMB 1.9 million ($0.3 million) for the three months ended March 31, 2014, an increase of approximately RMB 0.7 million ($0.1 million) from net loss attributable to ordinary shareholders of RMB1.2 million for the same period of 2013. This was due to increased noncash expense and warrant liability.

Adjusted EBITDA improved by approximately RMB 0.7 million ($0.1 million) to approximately RMB 0.5 million ($0.1 million) for the three months ended March 31, 2014 compared to approximately RMB 0.2 million loss for the same period in 2013. This was due to we increased more noncash expense and warrant liability.

The non-GAAP earnings per share for the third quarter is a loss of RMB 0.03, as compared to non-GAAP earnings per share for the same period of FY2013 of a loss of RMB 0.2.

Year-to-Date FY2013 Financial Results:

Our total revenues increased by 21.5%, or approximately RMB 13.5 million ($2.2 million), from RMB 62.5 million for the nine months ended March 31, 2013 to RMB 76.0 million ($12.3 million) for the same period of 2014. The increase in revenues for the nine-month period was due to sale of furnaces and automation products.

Gross profit increased to approximately RMB 27.1 million ($4.4 million) for the nine months ended March 31, 2014 from approximately RMB 20.6 million for the same period in 2013. Gross profit as a percentage of revenue increased to 35.6% for the nine months ended March 31, 2014 from 33.0% for the same period in 2013. This was mainly because fracturing service with lower margin accounted for a major part of our revenue during the nine months ended March 31, 2013. As to our automation business and furnaces business, our margins were both improved because our products and services were also popular with our clients, especially our newly developed clients.

Selling expenses were flat at RMB 4.7 million ($0.8 million) for the nine months ended March 31, 2013 and 2014. Selling expenses were 7.5% of total revenues in the nine months ended March 31, 2013 and 6.2% of total revenues in the same period of 2014.

Income from operations was approximately RMB 7.8 million ($1.3 million) for the nine months ended March 31, 2014, compared to income of RMB 1.2 million for the same period of 2013. This increase in income from operations can be attributed primarily to the increased revenue, gross margins and decreases in research and development expenses.

As a result of the factors described above, net income attributable to ordinary shareholders was approximately RMB 3.9 million ($0.6 million) for the nine months ended March 31, 2014, an increase of approximately RMB 2.2 million ($0.4 million) from net income attributable to ordinary shareholders of RMB 1.7 million for same period of 2013.

Adjusted EBITDA improved by approximately RMB 6.1 million ($1.0 million) to approximately RMB 11.7 million ($1.9 million) for the nine months ended March 31, 2014 compared to approximately RMB 5.6 million income for the same period in 2013.

The non-GAAP earnings per share is RMB 1.82, more than doubled compared to non-GAAP earnings per share for the nine months ended March 31, 2013 of RMB 0.77.

Net cash used in operating activities was approximately RMB 15.3 million ($2.5 million) for the nine months ended March 31, 2014. This was a decrease of approximately RMB 32.6 million ($5.3 million) compared to net cash provided by operating activities of approximately RMB 17.3 million for the nine months ended March 31, 2013.

Net cash used in investing activities was approximately RMB 0.2 million ($26,000) for the nine months ended March 31, 2014, a decrease of RMB 0.3 million ($58,000) from RMB 0.5 million for the same period of 2013. The decrease was due to a decrease in the purchase of property and equipment. The decrease was because we purchase less property and equipment.

Net cash provided by financing activities amounted to approximately RMB 11.9 million ($1.9 million) for the nine months ended March 31, 2014, compared to cash flows used in financing activities of approximately RMB 14.1 million for the same period in 2013. During the nine-month period ended March 31, 2014, we received net proceeds of RMB 12.1 million ($2.0 million) from a common stock sale of 546,500 shares with institutional investors in November 2013. In addition, we repaid RMB 12.87 million ($2.1 million) short term borrowings to related parties and received RMB 18.5 million ($3.0 million) of net loan proceeds from a commercial bank, which was guaranteed by one of our shareholders.

About Recon

Recon Technology, Ltd. is China's first listed non-state owned oil and gas field service company on Nasdaq (RCON). Recon supplies China's largest oil exploration companies, Sinopec 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.

RECON TECHNOLOGY, LTD
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
		As of June 30,			As of March 31,			As of March 31,
	2013			2014			2014
ASSETS	RMB			RMB			U.S. Dollars
Current assets
Cash and cash equivalents	RMB	12,350,392		RMB	8,863,889		$	1,438,499
Notes receivable		2,578,855			-			-
Trade accounts receivable, net		38,648,780			55,808,726			9,057,065
Trade accounts receivable- related parties, net		18,744,364			16,794,476			2,725,535
Inventories, net		13,271,070			22,094,753			3,585,705
Other receivables, net		19,131,503			15,970,126			2,591,754
Other receivables- related parties		742,528			664,831			107,894
Purchase advances, net		18,412,507			23,480,982			3,810,672
Purchase advances- related parties		394,034			394,034			63,947
Tax recoverable		575,650			-			-
Prepaid expenses		2,853,956			3,434,100			557,311
Deferred tax asset		1,006,721			1,082,436			175,666
Total current assets		128,710,360			148,588,353			24,114,048
Property and equipment, net		1,709,846			1,345,742 Werbung Mehr Nachrichten zur Recon Technology Ltd Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 10:02 - bullvestor Biotech-Einhorn! FDA Zulassung für das CBD-Wunder?! 26.04.24 - ARIVA.DE Redaktion Große Kursgewinne für den Anteilsschein von Amazon (167,5872 €) 26.04.24 - dpa-AFX ROUNDUP: Porsche startet mit Umsatz- und Gewinnrückgang ins Jahr Biotech-Einhorn!    FDA Zulassung für das CBD-Wunder?! weiterlesen» Anzeige wo-site-teaser-box-16773_site-teaser-box_2024-04-27_09%253A00%253A00_2024-04-28_09%253A00%253A59