Recon Technology, Ltd Enters into Long-Term Cooperation Agreement with Electrical Grid Peak Load Leveling Service Provider Tianjin Anjie IoT Technology Co Ltd, To Develop Electricity Grid Peak Load Leveling Services

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Nov 09, 2022, 08:30 ET

BEIJING, Nov. 9, 2022 /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 its subsidiary Qing Hai BHD New Energy Technology Co Ltd ("Qinghai BHD") has entered into eight-year cooperation agreement with electrical grid peak load leveling service provider Tianjin Anjie IoT Technology Co Ltd ("Tianjin Anjie").

Pursuant to the agreement, Qinghai BHD and Tianjin Anjie will jointly utilize their business strength, service scope, market resources and technical advantages to explore and develop business opportunities in peak load balancing services for power grid projects.

Qinghai BHD will take advantage of regional resources to cooperate closely with Tianjin Anjie on the development and promotion of energy saving projects, business contracting and technical consulting in China's northwest region.

Qinghai BHD will be responsible for customer development, promotion of Tianjin Anjie's relevant technical services, and for follow-up technical consulting services. Tianjin Anjie will support Qinghai BHD's marketing and promotion efforts and provide policy and technical support when needed to help expand the market impact of the cooperation. Tianjin Anjie will also be responsible for the training of customers working with Qinghai BHD to ensure that customer needs are met and quality services are provided. It will also oversee the bookkeeping of all relevant documents, work procedures, forms and billing records in accordance with the agreement. Qinghai BHD will charge Tianjin Anjie a service fee on a regular basis in accordance with the customers' participation in peak load balancing scheme as approved by the Northwest Power Grid settlement system.

Meanwhile, Tianjin Anjie has signed a power peak load balancing contract with an enterprise customer located in Qinghai Province to provide services for the company's participation in Northwest Power Grid settlement system. The customer was developed by Qinghai BHD. Qinghai BHD and Tianjin Anjie also continue to develop other potential customers.

Management Statement

Mr. Guangqiang Chen, Founder and CTO of Recon commented: "We are thrilled to announce our long-term tie-up with Tianjin Anjie, a strong contender in the field of peak load leveling services, which are providing a key solution for electricity grids to cope with peak electricity usage and deploy resources for optimized electricity distribution. While we have extensive resources of power-using companies in Northwest China, such as companies focusing on aluminum, steel and silicon business, whose annual electricity expenses range from hundreds of millions to tens of billions of yuan, and they have urgent power peak load balancing and energy saving needs. A long-term cooperation would help us grasp the huge business opportunity led by China's call on reducing enterprise energy consumption and improve the efficiency of energy use, and achieve China's policy goal of energy saving and emission reduction."

"Recon has a deep understanding of China's energy industry, including the power industry, and we will continue to improve the company's product line and enhance our overall competitiveness based on digging deeper into the needs of our customers. The solutions we introduce can help these companies save about 5%-8% of their annual electricity expenses. In addition, we can further guide these companies to use green energy. The Company believes that quality services must evolve into a proactive, continuous performance engineering discipline. Our services are customized for different users, and our partnership with Tianjin Anjie will help us widen access to more potential clients to deliver scalable, shared infrastructure that helps establish an ecosystem which shall drive our business performance growth."

About Recon Technology, Ltd ("RCON")

Recon Technology, Ltd (NASDAQ: RCON) is the People's Republic of China's first NASDAQ-listed non-state owned oil and gas field service company. Recon supplies China's largest oil exploration companies, Sinopec (NYSE: SNP) and The China National Petroleum Corporation ("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 within several segmented markets of the oil and gas filed service industry. RCON also has developed stable long-term cooperation relationship with its major clients. For additional information please visit: http://www.recon.cn/.

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