Recon Reports Q1 Fiscal Year 2013 Financial Results

             Recon Reports Q1 Fiscal Year 2013 Financial Results

Q1 FY '2013 Revenue Up 83%, Net Loss Decreases by 31%

PR Newswire

BEIJING, Nov. 15, 2012

BEIJING, Nov. 15, 2012 /PRNewswire-FirstCall/ -- Recon Technology, Ltd
(Nasdaq: RCON), an oilfield services provider that operates primarily in the
People's Republic of China (the "Company"), today announced its financial
results for first quarter fiscal year 2013 ended September 30, 2012.

Q1 FY '13 Highlights

  oTotal revenuesfor Q1 FY '13 increased by 83.19% to RMB 9.05
    million($1.49 million), due mainly to increased demands of furnaces.
  oGross profits for Q1 FY '13 wereRMB2.45 million($386 thousand),compared
    to RMB 2.48 million of Q1 FY '12.
  oComprehensive lossattributable to ordinary shareholdersfor Q1 FY '13
    wasRMB2.34 million($370 thousand), a 31.16% decrease from Q1 FY
    '12.Diluted losses per share attributable to ordinary shareholders for Q1
    FY '13 wasRMB0.59 ($0.09), an improvement of 31.39% from diluted losses
    per share of RMB0.86 in Q1 FY '12.
  oAdjust EBITDA in Q1 FY '13 was a loss ofRMB1.45 million ($229 thousand),
    an improvement of 48.26% from Q1 FY '12.

The company's quarterly report on Form 10-Q is available for public viewing
athttp://www.sec.gov.

"Our first quarter is usually a slow quarter for our business, but this year
revenues have grown early," said Mr. Yin. Shenping, Recon's Chief Executive
Officer,"Benefited from our good reputation and long-term cooperation with
our clients, we achieved more orders from our clients when they launched a new
round replacement of furnaces and related accessories. We will continue our
R&D activities to maintain stronger competitiveness and higher margin to
secure our business. Besides, our other businesses like automation business
and fracturing services, are all progressing smoothly. We will continue to
make full use of our advantages and professional experience on oilfield
automation and production stimulation-related services to achieve better and
faster development".

About Recon Technology, Ltd.

Recon Technology, Ltd. is a non-state-owned oil field service company in
China. The company has been providing software, equipment and services
designed to increase the efficiency and automation in oil and gas exploration,
extraction, production and refinery for Chinese oil and gas fields for more
than 10 years. More information may be found at http://www.recon.cn or via
e-mail at info@recon.cn.

This news release contains forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
include statements concerning plans, objectives, goals, strategies, future
events or performance, and underlying assumptions and other statements that
are other than statements of historical facts. These statements are subject to
uncertainties and risks 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.

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.

Investor Contact:
Recon Technology, Ltd.
Tel: +86-10-8494-5799

RECON TECHNOLOGY, LTD
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                     As of June 30,   AsofSeptember30,  AsofSeptember30,
                     2012             2012                 2012
ASSETS               RMB              RMB                  U.S. Dollars
Current assets
Cash and cash        RMB 3,533,283    RMB   2,254,327      $     355,909
equivalents
Trade accounts           61,993,942         57,469,336           9,073,151
receivable, net
Trade accounts
receivable- related      20,394,749         19,856,249           3,134,867
parties, net
Inventories, net         24,281,300         24,097,816           3,804,518
Other receivables,       8,074,096          10,816,095           1,707,625
net
Other receivables-       17,729             445,494              70,334
related parties
Purchase advances,       16,250,616         16,855,838           2,661,168
net
Purchase advances-       1,093,534          993,534              156,857
related parties
Tax recoverable          2,790,722          1,572,640            248,286
Prepaid expenses         535,336            923,407              145,786
Deferred tax asset       1,106,801          1,075,177            169,747
Total current assets     140,072,108        136,359,913          21,528,248
Property and             1,774,820          2,083,848            328,994
equipment, net
Long-term other          10,302,349         8,627,720            1,362,128
receivable
Total Assets         RMB 152,149,277  RMB   147,071,481    $     23,219,370
LIABILITIES AND
EQUITY
Current liabilities
Short-term bank loan RMB 23,000,000   RMB   23,000,000     $     3,631,197
Trade accounts           11,905,560         9,093,488            1,435,663
payable
Trade accounts
payable- related         5,339,231          7,026,028            1,109,256
parties
Other payables           2,341,826          1,659,640            262,021
Other payable-           1,099,259          923,186              145,751
related parties
Deferred revenue         3,291,073          3,391,628            535,464
Advances from            936,124            1,286,993            203,188
customers
Advances from
customers- related       -                  600,000              94,727
parties
Accrued payroll and      949,579            1,017,375            160,621
employees' welfare
Accrued expenses         476,416            539,742              85,213
Taxes payable            9,681,620          8,421,610            1,329,588
Short-term               2,767,066          1,817,883            287,004
borrowings
Short-term
borrowings- related      4,123,306          920,872              145,386
parties
Total current            65,911,060         59,698,445           9,425,079
liabilities
Long-term
borrowings-related       -                  3,007,675            474,846
party
Total Liabilities        65,911,060         62,706,120           9,899,925
Commitments and
Contingency
Equity
Common shares, ($
0.0185 U.S. dollar
par value,
25,000,000 shares
authorized;              529,979            529,979              83,672
3,951,811 shares
issued and
outstanding as of
June 30, 2012 and
September 30, 2012)
Additional paid-in       67,643,791         68,126,955           10,755,755
capital
Appropriated             2,378,961          2,378,961            375,586
retained earnings
Unappropriated           9,354,535          7,016,251            1,107,713
retained earnings
Accumulated other        (290,496)          (306,458)            (48,383)
comprehensive loss
Total controlling        79,616,770         77,745,688           12,274,343
shareholders' equity
Non-controlling          6,621,447          6,619,673            1,045,102
interest
Total equity             86,238,217         84,365,361           13,319,445
Total Liabilities    RMB 152,149,277  RMB   147,071,481    $     23,219,370
and Equity



RECON TECHNOLOGY, LTD
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                               For the three months ended September 30,
                                2011            2012           2012
                                RMB             RMB            U.S. Dollars
Revenues
Hardware                       RMB 3,593,772    RMB 8,438,964    $  1,332,329
Service                            -                83,177          13,132
Hardware - related parties         1,348,817        532,051         83,999
Total revenues                     4,942,589        9,054,192       1,429,460
Cost of revenues                   2,465,443        6,608,767       1,043,380
Gross profit                       2,477,146        2,445,425       386,080
Selling and distribution           832,797          1,268,798       200,316
expenses
General and administrative         4,876,183        3,516,440       555,169
expenses
Operating expenses                 5,708,980        4,785,238       755,485
Loss from operations               (3,231,834)      (2,339,813)     (369,405)
Other income (expenses)
Interest income                    6,332            1,310           207
Interest expense                   (142,911)        (329,756)       (52,061)
Gain from foerign currency         -                266,460         42,068
exchange
Other income (expense)             71,732           95,139          15,020
Loss before income taxes           (3,296,681)      (2,306,660)     (364,171)
Provision for income taxes         (108,515)        (31,624)        (4,993)
Net loss                           (3,405,196)      (2,338,284)     (369,164)
Less: Net income attributable      -                5,882           930
to non-controlling interest
Net loss attributable to Recon RMB (3,405,196)  RMB (2,344,166)  $  (370,094)
Technology, Ltd
Comprehensive Loss
Net loss                           (3,405,196)      (2,338,284)     (369,164)
Foreign currency translation       7,594            (15,962)        (2,520)
adjustment
Comprehensive loss                 (3,397,602)      (2,354,246)     (371,684)
Comprehensive income
attributable to                    759              7,656           1,209
non-controlling interest
Comprehensive loss
attributable to Recon          RMB (3,398,361)  RMB (2,361,902)  $  (372,893)
Technology, Ltd
Loss per common share - basic  RMB (0.86)       RMB (0.59)       $  (0.09)
and diluted
Weighted - average shares          3,951,811        3,951,811       3,951,811
-basic and diluted



RECON TECHNOLOGY, LTD
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                For the three months ended September 30,
                                2011             2012             2012
                                RMB              RMB              U.S. Dollars
Cash flows from operating
activities:
Net loss                        RMB (3,405,196)  RMB (2,338,284)  $  (369,164)
Adjustments to reconcile net
loss to net cash provided by
(used in) operating activities:
Depreciation                        88,723           72,379          11,427
Recovery of doubtful accounts       -                (413,622)       (65,302)
Stock based payments                263,364          454,805         71,804
Deferred tax provision              -                31,624          4,993
Changes in operating assets and
liabilities:
Trade accounts receivable           2,499,209        5,011,902       791,270
Trade accounts                      -                538,500         85,017
receivable-related parties
Notes receivbale                    1,276,574        -               -
Other receivable, net               (1,756,733)      (1,139,779)     (179,946)
Other receivables related           -                (427,764)       (67,535)
parties, net
Purchase advance, net               (539,485)        (606,488)       (95,751)
Purchase advance-related party,     -                100,000         15,788
net
Tax recorvable                      -                1,218,082       192,308
Prepaid expense                     81,866           (388,071)       (61,268)
Inventories                         (1,247,809)      183,484         28,968
Trade accounts payable              1,457,908        (2,812,072)     (443,965)
Trade accounts payable-related      -                1,686,797       266,308
parties
Other payables                      102,887          (682,186)       (107,702)
Other payables-related parties      -                (176,073)       (27,798)
Deferred income                     (504,800)        100,555         15,875
Advances from customers             (77,395)         950,869         150,121
Accrued payroll and employees'      9,389            67,796          10,704
welfare
Accrued expenses                    105,933          63,324          9,997
Taxes payable                       283,529          (1,260,010)     (198,928)
Net cash provided by (used in)      (1,362,036)      235,768         37,221
operating activities
Cash flows from investing
activities:
Purchase of property and            (101,131)        (381,406)       (60,216)
equipment
Net cash used in investing          (101,131)        (381,406)       (60,216)
activities
Cash flows from financing
activities:
Proceeds from                       -                7,675           1,212
borrowings-related parties
Repayment of short-term            -                (949,183)       (149,855)
borrowings
Repayment of short-term             -                (202,434)       (31,960)
borrowings-related parties
Net cash used in financing          -                (1,143,942)     (180,603)
activities
Effect of exchange rate
fluctuation on cash and cash        11,882           10,624          1,677
equivalents
Net decrease in cash and cash       (1,451,285)      (1,278,956)     (201,921)
equivalents
Cash and cash equivalents at        3,485,944        3,533,283       557,830
beginning of period
Cash and cash equivalents at    RMB 2,034,659    RMB 2,254,327    $  355,909
end of period
Supplemental cash flow
information
Cash paid during the period for RMB 134,637      RMB 407,215      $  64,290
interest
Cash paid during the period for RMB -            RMB -            $  -
taxes

SOURCE Recon Technology, Ltd.

Website: http://www.recon.cn