Beijing, China /PRNewswire/ - Recon Technology, Ltd (NASDAQ: RCON) ("Recon" or the "Company") today announced that its subsidiary Future Gas Station (Beijing) Technology Company Limited ("FGS") signed a three-year cooperation agreement ("Agreement") with Hui Tong Tian Xia Petrochemical (Dalian) Co. Ltd ("Huitong Dalian"), a leading Chinese company focusing on fleet fuel management, to establish an electronic integrated service platform (the "Platform") for enterprise fuel consumption management. Huitong Dalian is a wholly owned subsidiary of Beijing Hui Tong Tian Xia IOT Technology CO. Ltd ("G7 IOT").
According to the Agreement, FGS will provide customized development and maintenance services to Huitong Dalian regarding the fleet fuel management-based Platform according to the requirement of G7 IOT. The services are provided to realize timely fueling and payment management, automatic account reconciliation between all gas stations of PetroChina Company Limited (the "PetroChina") in China and logistics enterprises as end users of the Platform. According to the business development schedule agreed by both parties, the initial cooperation will be carried out in Heilongjiang, Inner Mongolia, Hebei, Shandong, Sichuan, Hubei, Gansu, Hunan, Zhejiang provinces. It is expected that monthly fuel consumption flow by end users, which are mainly logistics enterprises, in the above provinces through the Platform will be RMB 66 million. Pursuant to the Agreement, FGS has the right to charge certain percentages of the flow as service fees.
Mr. Song Yang, a founder and the CEO of FGS, said, "We are delighted to join hands with G7 IOT to provide logistics enterprises with a leading solution that can meet their data-based operation such as managing fleet refueling behavior, real-time data management and automatic account reconciliation. We hope to empower the data-based management of fuel consumption of large customers in logistics industry. With the improvement of logistics enterprises' data-based operation, the traditional offline fuel card management method can no longer meet their requirements for timeliness of service and transaction data. In the traditional way, logistics enterprises need to go to gas stations to make deposits on the fuel cards offline first, and the data of fleet fuel consumption cannot be delivered to logistics enterprises in time. The reconciliation between logistics enterprises and gas stations is often unbalanced, and it may even take several days and several employees of both sides to complete the reconciliation. Through our integrated service platform, logistics companies can learn the real-time fuel consumption data of each vehicle at each gas station and automatically complete reconciliation with gas stations, which reduces the complexity of settlement and their personnel input, greatly improving the operational management efficiency and saving their management costs. At the same time, we can also provide customized marketing and management tools for gas stations based on the platform, helping gas stations to launch more effective pricing and discount plans through more accurate information about the fuel consumption behavior of fleet users, and empowering data-based operations of gas stations. Our solution provides convenience for oil users and increases their satisfaction and stickiness with PetroChina's services, and helps gas stations develop the best sales strategy in a competitive market environment, thus achieving a win-win situation for all parties."
Mr. Song Yang added, "Partnership with G7 IOT marks the expansion of FGS' service scope from car owner consumption market to the logistics industry. G7 IOT deeply links more than 1.8 million heavy-duty trucks across China. We aim to work together to expand this platform solution to more provinces and cities in China. At the same time, we will further expand our customer base and extend our fuel management solutions to more logistics and platform companies."
About G7 IOT
Founded in 2010, G7 IOT is China's leading IOT freight technology service platform. Through its unique IoT technology platform, software service platform and payment and settlement system, G7 IOT connects various factors of production in China's road logistics industry, providing a full range of integrated services covering network freight transportation, safety insurance, smart equipment and fleet management to over 500 of China's largest cargo owners and logistics companies, over 70,000 growing fleets and over 1 million drivers. By the end of August 2020, the G7 IOT platform connected more than 1.8 million freight trucks, tracked more than 170 million km of truck miles per day, and connected more than 10,000 oil and gas sites.
About Future Gas Station (Beijing) Technology, Ltd. ("FGS")
Established in January 2016, FGS is a subsidiary of Recon and a service company focusing on providing new technical applications and data operations to gas stations of oil companies such as CNPC. With its DT Refuel mobile application and related mini programs embedded into WeChat and Alipay, two mobile applications widely used in China, FGS provides solutions to gas stations to improve their operations and their customers' experience. FGS aims to facilitate the digital transformation of gas stations through integration of internet technique and algorithms, and to help transform gas stations into comprehensive service providers.
About Recon Technology, Ltd ("RCON")
Recon Technology, Ltd (NASDAQ: RCON) is 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 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: http://www.recon.cn/.
Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, whether we will successfully establish cooperation with Huitong Dalian; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission ("SEC"), including our Annual Report on Form 20-F, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.