Recon Announces Progress on the Research and Development of New Energy-Efficient Electric Pump

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Feb 27, 2023, 08:30 ET

BEIJING, Feb. 27, 2023 /PRNewswire/ -- Recon Technology, Ltd (NASDAQ: RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service and environmental protection, electric power and coal chemical industries, today announced that a mainland China variable interest entity's subsidiary, Nanjing Recon Technology Co. ("Nanjing Recon"), has achieved preliminary progress on the research and development ("R&D") of a new energy-efficient electric pump that is being conducted at some oilfield sites in China.

The R&D work on the new energy-efficient electric pump commenced on September 2021 Through 18 months of on-site testing, the lab data shows the R&D work has achieved initial experimental results. Electric pumps in oilfield use a lot of energy, signifying great market potential for energy-efficient upgrading. Direct-drive permanent magnet synchronous motor are used as electric pumps in the oilfield water injection process, which are significantly more efficient than the conventional three-drive motors. The model can save electricity by more than 12% compared to the traditional energy-saving practices that may only help save about 5% of the electricity used. The Company expects to launch sale of the new electric pumps in the second half of this year.

Mr. Shenping Yin, Founder and CEO of Recon commented: "We are excited to announce preliminary progress in the R&D work of our new electric pumps after a few months of testing. Each machine is expected to help save electricity expenses by RMB100,000 yuan (or US$14,000) per year. The oilfield company we launched the R&D project with has about 1,500 water pumps and is highly motivated to upgrade to more energy efficient pumps. The new energy efficient pumps meet a big demand from large-scale oilfields to operate more efficiently and that forms an integral part of their energy conservation and emission reduction strategies. We expect to set the price of our new electric pump at hundreds of thousands of RMB (or about US$58,000) per unit and we are also in talks with some prospective clients and anticipate receiving about 20 to 30 orders in 2023."

Forward-Looking Statements

Recon includes "forward-looking statements" within the meaning of the federal securities laws throughout this press release. A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as "scheduled," "may," "will," "could," "should," "would," "expect," "believe," "anticipate," "project," "plan," "estimate," "forecast," "goal," "objective," "committed," "intend," "continue," or "will likely result," and similar expressions that concern Recon's strategy, plans, intentions or beliefs about future occurrences or results. Forward-looking statements are subject to risks, uncertainties and other factors that may change at any time and may cause actual results to differ materially from those that Recon expected. Many of these statements are derived from Recon's operating budgets and forecasts, which are based on many detailed assumptions that Recon believes are reasonable, or are based on various assumptions about certain plans, activities or events which we expect will or may occur in the future. However, it is very difficult to predict the effect of known factors, and Recon cannot anticipate all factors that could affect actual results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors, including those factors disclosed under "Risk Factors" in Recon's most recent Annual Report on Form 20-F and any subsequent half-year financial filings on Form 6-K filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by the cautionary statements that Recon makes from time to time in its SEC filings and public communications. Recon cannot assure the reader that it will realize the results or developments Recon anticipates, or, even if substantially realized, that they will result in the consequences or affect Recon or its operations in the way Recon expects. Forward-looking statements speak only as of the date made. Recon undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances arising after the date on which they were made, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, Recon.

For more information, please contact:

Company
Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5799
Email: [email protected]

Investor Relations
Janice Wang
Wealth Financial Services LLC
Phone: +86 13811768559
+1 628 283 9214
Email: [email protected]

SOURCE Recon Technology, Ltd