BEIJING, April 27, 2020 /PRNewswire/ -- Recon Technology, Ltd. (NASDAQ: RCON) ("Recon" or the "Company") today announced that in the middle of April 2020, the Company's subsidiary Future Gas Station (Beijing) Technology, Ltd ("FGS") signed a joint operation agreement (the "Agreement") with China Petroleum Planning and Engineering Institute ("CPPEI"). The Agreement is signed to facilitate the operation of DT Refuel mobile application ("DT Refuel") functions in Zhejiang.
CPPEI is the only decision supporting institute of The China National Petroleum Corporation ("CNPC"), a major state-owned oil and gas corporation in China. CPPEI operates Hao Ke E Station ("Hao Ke"), a refuel mobile application currently used on over 20,000 CNPC gas stations in China. Pursuant to the Agreement, FGS and CPPEI has established a joint project team to integrate and embed FGS' solution of advanced payment on refuel into Hao Ke. CPPEI will continue to provide technical support to FGS to unify the loyalty program and membership, electronic invoice function, coupon consumption and refueling card system. FGS will be able to take advantage of CPPEI's marketing resources, such as the member base, the CNPC sales network and the additional revenue being recognized by payment through CNPC prepaid cards. FGS will keep the revenues recognized by the transactions through DT Refuel functions in Hao Ke. As the consideration, FGS will pay 0.05% of these revenues to CPPEI, but no less than RMB 1 million at the end of the one-year term of the Agreement.
"The joint operation with CNPC' decision making institution in Zhejiang demonstrates FGS' market value and leading position," said Mr. Shenping Yin, co-founder and CEO of Recon. "As a starting point, it provides a possibility for FGS to expand its solution and experience of gas station efficient operation on a country-across basis and increase its market share."
"The joint operation with CPPEI will further improve our current operation solution," said Mr. Yang Song, founder of FGS. "As of today, we are cooperating with 437 stations in Zhejiang Province, has a total of 4.12 million registered users and the accumulated Gross Merchandise Volume of DT refuel has been about $439 million (RMB 3.0 billion), and we also have been profitable. Based on the advantage of CPPEI's unique position, we aim to win more high-value customers and prepaid card users and to enhance users' loyalty and reliance on our platform. Beyond, we hope to become China's FLEETCOR through cooperation with more professional companies, to provide a convenient payment solution and customized payment services to China's gas stations, to provide the best solution of petroleum cost control for logistics companies, and to provide the best consumption experience to consumers."
About Future Gas Station (Beijing) Technology, Ltd.
Established in January 2016, Future Gas Station (Beijing) Technology is a service company focusing on providing new technical Applications and data operations to gas stations. It also provides solutions to gas stations to improve their operations and their customers' experience. FGS aims to increase the overall income of gas stations through the integration of internet technique and New Retail E-Commerce platform and to help transform gas stations into comprehensive service providers.
About Recon Technology, Ltd.
Recon Technology, Ltd. (RCON) is China's first non-state-owned oil and gas field service company listed on NASDAQ. Recon supplies China's largest oil exploration companies with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measures for increasing petroleum extraction levels, reducing impurities and lowering production costs. Since 2017, the Company has expanded its business operations into other segments of the broader energy industry including electric power, coal chemicals, renewable energy and environmental protection in the energy and chemical industries. Through the years, Recon has taken leading positions on several market segments of the oil and gas field service industry. Recon also has developed stable long-term cooperation relationships with its major clients, and its products and service are well accepted by clients. For additional information please visit: www.recon.cn.
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SOURCE Recon Technology, Ltd.