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HomeBusinessRecon Technology, Ltd Reports Financial Year Results for Fiscal Year 2023

Recon Technology, Ltd Reports Financial Year Results for Fiscal Year 2023

BEIJING, Oct. 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 its financial results for fiscal year 2023.

Fiscal Year Ended June 30, 2023 Financial Highlights:

–  Total revenue decreased by approximately RMB16.7 million ($2.3 million) or 19.9% to RMB67.1 million ($9.3 million) for the year ended June 30, 2023 from RMB83.8million ($12.5 million) for the same period in 2022.

–  Gross profit decreased to RMB18.9 million ($2.6 million) for the year ended June 30, 2023, from RMB19.4 million ($2.9 million) for the same period in 2022.

–  Gross margin increased to 28.1% for the year ended June 30, 2023 from 23.2% for the same period in 2022.

–  Net loss was RMB61.5 million ($8.5 million) for the year ended June 30, 2023, an increase of RMB155.8 million ($21.5 million) from net income of RMB94.3 million ($14.1 million) for the same period of 2022.
















For the Years Ended




June 30,




2023


2022


Increase /(Decrease)


Percentage
Change


(in RMB millions, except
earnings per share;
differences due to rounding)










Revenue


RMB

67.1


RMB

83.8


RMB

(16.7)


(19.9)

%

Gross profit



18.9



19.4



(0.5)


(2.9)

%

Gross margin



28.1 %



23.2 %



6.0 %


——


Net income (loss)



(61.5)



94.3



(155.8)


(165.2)

%

Net earnings per share –
Basic and diluted



(1.7)



3.2



(4.9)


(154.5)

%

Management Commentary

Mr. Shenping Yin, Founder and CEO of Recon said, “Fiscal year ended 2023 was a year of change, challenge and opportunity for Recon. As a result of the impact of the outbreak and changes in the industry, our established business volume temporarily declined and recovered less than optimally, and resulting in a decline in overall revenue in fiscal year ended 2023, but our gross margins improved due to management efficiencies and the overall recovery of the industry.

We believe that China’s investment and demand in the oil industry will not decrease in the near future, and we believe that there are still many opportunities for growth in the oil industry. Recon will continue to benefit from this trend. We expect a significant increase in the volume of business in the oilfield services segment in the coming year. We are also expanding our business focus from oilfield service segment to broader energy sectors, including carbon-zero opportunities and alternative materials for primary petroleum products. We are actively exploring the chemical recycling business of low-value plastics based on waste treatment and recycling, and have reached preliminary cooperation agreements and market expansion and sales intentions with key upstream and downstream customers. Our drive has always been to maximize the long-term benefits for our company and our shareholders based on our experience and resources in the petrochemical and energy industries.”

Fiscal Year Ended 2023 Financial Results:

Revenue

Total revenues for the year ended June 30, 2023 were approximately RMB67.1 million ($9.3 million), a decrease of approximately RMB16.7 million ($2.3 million) or 19.9% from RMB83.8million ($12.5 million) for the same period in 2022. The overall decrease in revenue was mainly due to decrease from all four segments during the year ended June 30, 2023.

 –  Revenue from automation product and software decreased by RMB5.3 million ($0.7 million) or 316.6%. The decrease was mainly caused by decreased orders from JiDong oilfield as this client reduced their investment budget and oil and gas extraction activities.

 –  Revenue from equipment and accessories decreased by ¥0.9 million ($0.1 million) or 5.3% as we decided not to continue working with some oilfield client with low production levels and allocated our sales and service resources into some larger oilfield companies. We believe this was a temporary decline. Our revenue from this segment will increase in the coming year.

 –  Revenue from oilfield environmental protection decreased by RMB6.2million ($0.9 million) or 24.5%. This was mainly caused by less raw materials we could collect. As a result, our revenue decreased due to lower processing volume compared to the same period last year.

 –  Revenue from platform outsourcing services decreased by RMB4.2 million ($0.6 million) or 45.2%. The decrease was mainly due to less overall economic activities and lower refueling volumes at gas stations, and change in the method of settlement with major customers, from the original service fee based on a percentage of the volume and transaction amount to a basic fixed monthly service fee. 

Cost of revenue

Cost of revenues decreased from RMB64.4 million ($9.6 million) for the year ended June 30, 2022 to RMB48.2 million ($6.7 million) for the same period in 2023. This decrease was mainly caused by the decreased cost of revenue from automation product and software, oilfield environmental protection and platform outsourcing services segments, which was partially offset by the decreased cost of revenue from equipment and accessories segment during the year ended June 30, 2023.

Gross profit

Gross profit decreased to RMB18.9 million ($2.6 million) for the year ended June 30, 2023 from RMB19.4 million ($2.9 million) for the same period in 2022. Gross profit as a percentage of revenue increased to 28.1% for the year ended June 30, 2023 from 23.2% for the same period in 2022.

– For the years ended June 30, 2022 and 2023, our gross profit from automation product and software was approximately RMB2.1 million and RMB3.0 million ($0.4 million), respectively, representing an increase in gross profit of approximately RMB0.9 million ($0.1 million) or 42.4%. In year 2021, we mainly carried out contracts that were signed during the COVID-19 and low oil price period, during which we used a low-margin strategy to maintain our cooperation business with clients. As oil price increase in 2022, our customers recovered and contract terms were improved and our margin increased and the margin percentage will also be higher.

–  For the years ended June 30, 2022 and 2023, gross profit from equipment and accessories was approximately RMB6.7 million and RMB7.3 million ($1.0 million), respectively, representing a slight increase of approximately RMB0.6 million ($0.09 million) or 9.3%. This was mainly driven by high oil price and more demands for heating furnaces with higher margin rather than accessories with lower margin.

–  For the years ended June 30, 2022 and 2023, gross profit from oilfield environmental protection was approximately RMB5.1 million and RMB5.2 million ($0.7 million), respectively, maintaining at a stable level.

–  For the years ended June 30, 2022 and 2023, gross profit from platform outsourcing services was approximately RMB5.5 million and RMB3.4 million ($0.5 million), respectively, representing a decrease of approximately RMB2.1 million ($0.3 million) or 38.6%, this was mainly because personnel expenses, which constitutes major part of our costs, reduced during the year ended June 30, 2023.

Operating expenses

Selling expenses increased by 4.8%, or RMB0.4 million ($0.07 million), from RMB10.2 million in the year ended June 30, 2022 to RMB10.6 million ($1.5 million) in the same period of 2023.

General and administrative expenses decreased by 7.8%, or RMB6.5 million ($0.9 million), from RMB83.3 million in the year ended June 30, 2022 to RMB76.8 million ($10.6 million) in the same period of 2023. 

Net recovery of credit losses of RMB0.7 million for the year ended June 30, 2022 as compared to net recovery of credit losses of RMB9.0 million ($1.2 million) for the same period in 2023. 

Research and development expenses remained relatively stable with a slight decrease by 1.8%, or RMB0.2 million ($0.02 million) from RMB9.0 million for the year ended June 30, 2022 to RMB8.8 million ($1.2 million) for the same period of 2023.

Loss from operations

Loss from operations was RMB69.3 million ($9.6 million) for the year ended June 30, 2023, compared to a loss of RMB82.3 million for the same period of 2022. This RMB13.0 million ($1.8 million) decrease in loss from operations was primarily due to the decrease in operating expense as discussed above.

Gain in fair value changes of warrant liability

The Company classified the warrants issued in connection with common share offering as liabilities at their fair value and adjusted the warrant instrument to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statement of operations. Gain in change in fair value of warrant liability was RMB174.5 million and RMB6.1 million ($0.8 million) for the years ended June 30, 2022 and 2023, respectively.

Impairment loss on goodwill and intangible assets

In conjunction with the preparation of our consolidated financial statement for years ended June 30, 2022 and 2023, the management performed evaluation on the impairment of goodwill and intangible assets and recorded an impairment loss on goodwill and intangible assets of RMB2.3 million and RMB10.0 million ($1.4 million) for the years ended June 30, 2022 and 2023, respectively. The impairment was mainly due to the decision of the major customers to develop their own autonomous unified system and to significantly reduce the procurement of third-party services. This change has had a significant and negative impact on FGS’s business model and enterprise value. 

Interest income

Net interest income was RMB11.1 million ($1.5 million) for the year ended June 30, 2023, compared to net interest income of RMB3.8 million for the same period of 2022. The RMB.3 million ($1.0 million) increase in net interest income was primarily due to the increased interest-bearing loans to third parties and increased short-term investments we invested during the year ended June 30, 2023.

Other income (expenses), net.

Other net income was RMB0.7 million ($0.1 million) for the year ended June 30, 2023, compared to other net expenses of RMB0.1 million for the same period of 2022.

Net income (loss)

As a result of the factors described above, net loss was RMB61.5 million ($8.5 million) for the year ended June 30, 2023, an increase of RMB155.8 million ($21.5 million) from net income of RMB94.3 million for the same period of 2022.

Cash and short-term investment

As of June 30, 2023, we had cash in the amount of approximately RMB104.1 million ($14.4 million) and short-term investment in bank fixed income product of approximately RMB184.2 million ($25.4 million). As of June 30, 2022, we had cash in the amount of approximately RMB317.0 million ($47.3 million).

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.

RECON TECHNOLOGY, LTD

CONSOLIDATED BALANCE SHEETS























As of June 30


As of June 30


As of June 30



2022


2023


2023



RMB


RMB


U.S. Dollars

ASSETS










Current assets










Cash


¥

316,974,857


¥

104,125,800


$

14,359,604

Restricted cash



723,560



731,545



100,885

Short-term investments





184,184,455



25,400,198

Notes receivable



10,828,308



3,742,390



516,099

Accounts receivable, net



22,577,980



27,453,415



3,785,999

Inventories, net



3,894,369



6,330,701



873,044

Other receivables, net



5,501,833



2,185,733



301,427

Loans to third parties



50,383,822



123,055,874



16,970,181

Purchase advances, net



178,208



2,680,456



369,652

Contract costs, net



33,858,820



49,572,685



6,836,386

Prepaid expenses



420,284



350,119



48,284

Prepaid expenses- related parties



275,000





Total current assets



445,617,041



504,413,173



69,561,759











Property and equipment, net



25,474,162



24,752,864



3,413,576

Construction in progress



239,739





Intangible assets, net



5,950,000





Long-term other receivables, net



1,564,381



3,640



502

Goodwill



4,730,002





Operating lease right-of-use assets (including ¥765,241 and ¥335,976 ($46,333) from a related party as of June 30, 2022 and
2023, respectively)



6,666,759



2,654,900



366,127

Total Assets


¥

490,242,084


¥

531,824,577


$

73,341,964











LIABILITIES AND EQUITY




















Current liabilities










Short-term bank loans


¥

10,000,000


¥

12,451,481


$

1,717,138

Accounts payable



16,739,989



10,791,721



1,488,246

Other payables



3,533,918



5,819,010



802,478

Other payable- related parties



2,240,135



2,592,395



357,508

Contract liabilities



2,001,277



2,748,365



379,017

Accrued payroll and employees’ welfare



2,250,547



2,382,516



328,564

Taxes payable



2,210,958



1,163,006



160,386

Short-term borrowings – related parties



9,009,156



20,018,222



2,760,639

Long-term borrowings – related party – current portion



999,530





Operating lease liabilities – current (including ¥429,265 and ¥335,976 ($46,333) from a related party as of June 30, 2022 and
2023, respectively)



3,892,774



3,066,146



422,841

Total Current Liabilities



52,878,284



61,032,862



8,416,817











Operating lease liabilities – non-current (including ¥335,976 and ¥nil ($nil) from a related party as of June 30, 2022 and 2023,
respectively)



2,184,635



25,144



3,468

Long-term borrowings – related party



5,511,076





Contract liabilities – non-current



106,000





Warrant liability



16,677,328



31,615,668



4,360,000

Total Liabilities



77,357,323



92,673,674



12,780,285











Commitments and Contingencies




















Equity










Class A ordinary shares, $0.0925 U.S. dollar par value, 150,000,000 shares authorized; 29,700,718 shares and 40,528,218 shares
issued and outstanding as of June 30, 2022 and 2023, respectively



18,001,670



24,912,822



3,435,635

Class B ordinary shares, $0.0925 U.S. dollar par value, 20,000,000 shares authorized; 4,100,000 shares and 7,100,000 shares
issued and outstanding as of June 30, 2022 and 2023, respectively



2,408,498



4,340,731



598,614

Additional paid-in capital



496,038,696



551,118,133



76,002,666

Statutory reserve



4,148,929



4,148,929



572,163

Accumulated deficit



(111,273,525)



(170,440,826)



(23,504,865)

Accumulated other comprehensive income



11,307,461



35,127,173



4,844,259

Total shareholders’ equity



420,631,729



449,206,962



61,948,472

Non-controlling interests



(7,746,968)



(10,056,059)



(1,386,793)

Total equity



412,884,761



439,150,903



60,561,679

Total Liabilities and Equity


¥

490,242,084


¥

531,824,577


$

73,341,964

 *The accompanying notes are an integral part of these consolidated financial statements.

RECON TECHNOLOGY, LTD

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)





























For the years ended



June 30, 



2021


2022


2023


2023



RMB


RMB


RMB


USD














Revenue













Revenue – third parties


¥

47,852,918


¥

83,777,571


¥

67,114,378


$

9,255,496

Revenue – related party



85,657







Revenue



47,938,575



83,777,571



67,114,378



9,255,496














Cost of revenue













Cost of revenue – third parties



40,723,547



64,352,834



48,247,395



6,653,620

Cost of revenue



40,723,547



64,352,834



48,247,395



6,653,620














Gross profit



7,215,028



19,424,737



18,866,983



2,601,876














Selling and distribution expenses



8,038,965



10,150,802



10,638,978



1,467,182

General and administrative expenses



45,949,157



83,281,958



76,784,396



10,589,052

Allowance for (net recovery of) credit losses



8,191,247



(658,823)



(9,038,985)



(1,246,533)

Impairment loss of property and equipment and other long-lived assets



768,312





1,009,124



139,165

Research and development expenses



5,846,295



8,964,217



8,806,205



1,214,431

Operating expenses



68,793,976



101,738,154



88,199,718



12,163,297














Loss from operations



(61,578,948)



(82,313,417)



(69,332,735)



(9,561,421)














Other income (expenses)













Subsidy income



355,667



11,993



325,425



44,878

Interest income



918,629



5,367,979



13,603,487



1,876,007

Interest expense



(2,210,005)



(1,522,526)



(2,514,850)



(346,814)

Income (loss) from investment in unconsolidated entity



(266,707)



15,411





Gain in fair value changes of warrants liability



35,365,792



174,485,575



6,116,000



843,435

Remeasurement gain of previously held equity interests in connection with step acquisition



979,254







Foreign exchange transaction gain (loss)



(146,898)



(118,456)



241,652



33,325

Impairment loss on goodwill and intangible assets





(2,266,893)



(9,980,002)



(1,376,305)

Other income



192,137



15,855



82,970



11,442

Other income, net



35,187,869



175,988,938



7,874,682



1,085,968

Income (loss) before income tax



(26,391,079)



93,675,521



(61,458,053)



(8,475,453)

Income tax expenses (benefit)



(524,251)



(613,874)



18,339



2,529

Net income (loss)



(25,866,828)



94,289,395



(61,476,392)



(8,477,982)














Less: Net loss attributable to non-controlling interests



(3,034,094)



(1,297,400)



(2,309,091)



(318,438)

Net income (loss) attributable to Recon Technology, Ltd


¥

(22,832,734)


¥

95,586,795


¥

(59,167,301)


$

(8,159,544)














Comprehensive income (loss)













Net income (loss)



(25,866,828)



94,289,395



(61,476,392)



(8,477,982)

Foreign currency translation adjustment



(850,895)



9,332,625



23,819,712



3,284,889

Comprehensive income (loss)



(26,717,723)



103,622,020



(37,656,680)



(5,193,093)

Less: Comprehensive loss attributable to non- controlling interests



(3,034,094)



(1,297,400)



(2,309,091)



(318,438)

Comprehensive income (loss) attributable to Recon Technology, Ltd


¥

(23,683,629)


¥

104,919,420


¥

(35,347,589)


$

(4,874,655)














Earnings (loss) per share – basic and diluted


¥

(1.80)


¥

3.19


¥

(1.74)


$

(0.24)














Weighted – average shares -basic and diluted



12,697,024



30,002,452



33,923,112



33,923,112

*The accompanying notes are an integral part of these consolidated financial statements.

RECON TECHNOLOGY, LTD

CONSOLIDATED STATEMENTS OF CASH FLOWS





























For the years ended June 30,



2021


2022


2023


2023



RMB


RMB


RMB


U.S. Dollars














Cash flows from operating activities:













Net income (loss)


¥

(25,866,828)


¥

94,289,395


¥

(61,476,393)


$

(8,477,982)

Adjustments to reconcile net income (loss) to net cash used in operating activities:













Depreciation and amortization



3,150,789



3,339,868



3,683,586



507,990

Loss (gain) from disposal of equipment



19,590



48,628



(12,782)



(1,763)

Gain in fair value changes of warrants liability



(35,365,792)



(174,485,575)



(6,116,000)



(843,435)

Amortization of offering cost of warrants



12,584,024





1,483,306



204,557

Allowance for (net recovery of) credit losses



8,191,247



(658,823)



(9,038,985)



(1,246,533)

Allowance for slow moving inventories



654,673



266,285



484,644



66,835














Impairment loss of property and equipment and other long-lived assets



768,312





1,009,124



139,165

Impairment loss on goodwill and intangible assets





2,266,893



9,980,002



1,376,305

Amortization of right of use assets



1,866,803



3,138,518



3,252,066



448,480

Restricted shares issued for management and employees



6,140,037



39,263,485



26,191,707



3,612,002

Restricted shares issued for services





8,935,919



7,306,822



1,007,657

Remeasurement gain of previously held equity interests in connection with step acquisition



(979,254)







Loss (income) from investment in unconsolidated entity



266,707



(15,411)





Deferred tax benefit



(425,913)



(624,087)





Interest expenses related to convertible notes



430,416







Accrued interest income from loans to third parties





(270,563)



(7,997,961)



(1,102,969)

Accrued interest income from short-term investment







(2,901,955)



(400,198)














Changes in operating assets and liabilities:













Notes receivable



(2,124,748)



(4,522,674)



7,085,918



977,193

Accounts receivable



18,326,410



3,811,866



(495,784)



(68,372)

Accounts receivable-related party



3,409,912







Inventories



(2,502,263)



(689,291)



(2,373,013)



(327,253)

Other receivables



(338,468)



285,786



(1,307,694)



(180,339)

Other receivables-related parties







(64,122)



(8,843)

Purchase advances



(899,371)



865,430



(2,575,198)



(355,136)

Contract costs



(21,944,876)



15,422,513



(14,236,539)



(1,963,309)

Prepaid expense



143,354



(274,215)



70,164



9,676

Prepaid expense – related parties



(433,000)



158,000



275,000



37,924

Operating lease liabilities



(2,762,949)



(1,594,702)



(3,061,303)



(422,173)

Accounts payable



(2,109,944)



(5,523,938)



(1,710,898)



(235,944)

Other payables



5,685,188



(6,329,042)



2,270,104



313,062

Other payables-related parties



(2,577,610)



969,468



352,260



48,579

Contract liabilities



4,160,456



(5,578,999)



641,087



88,410

Accrued payroll and employees’ welfare



(1,593,822)



296,065



131,971



18,200

Taxes payable



76,452



961,964



(1,036,483)



(142,938)

Net cash used in operating activities



(34,050,468)



(26,247,237)



(51,688,331)



(7,128,147)














Cash flows from investing activities:













Purchases of property and equipment



(522,416)



(692,206)



(940,673)



(129,725)

Proceeds from disposal of equipment







31,950



4,406

Repayments of loans to third parties



5,150,377



171,435,032



40,113,311



5,531,879

Payments made for loans to third parties



(51,638,458)



(171,071,510)



(103,146,761)



(14,224,589)

Payments for short-term investments







(290,051,964)



(39,999,995)

Redemption of short-term investments







108,769,464



14,999,995

Step acquisition of FGS, net of cash



471,843







Net cash used in investing activities



(46,538,654)



(328,684)



(245,224,673)



(33,818,029)














Cash flows from financing activities:













Proceeds from short-term bank loans



16,020,000



10,000,000



13,491,481



1,860,560

Repayments of short-term bank loans



(10,540,000)



(15,000,000)



(11,040,000)



(1,522,486)

Proceeds from short-term borrowings



3,660,000







Repayments of short-term borrowings



(3,360,000)



(530,000)





Proceeds from short-term borrowings-related parties



18,400,000



11,100,000



15,013,115



2,070,403

Repayments of short-term borrowings-related parties



(15,950,000)



(14,770,000)



(9,000,000)



(1,241,157)

Proceeds from long-term borrowings-related party









Repayments of long-term borrowings-related party



(816,952)



(892,701)



(1,499,667)



(206,813)

Proceeds from warrants issued with common stock



212,051,414





17,493,069



2,412,405

Proceeds from sale of ordinary shares, net of issuance costs



81,091,141





28,174,993



3,885,509

Proceeds from sale of prefunded warrants, net of issuance costs



30,276,569



93,321



3,750,282



517,188

Proceeds from stock issuance for warrants exercised



21,130,035










Proceeds from issuance of convertible notes



42,014,616







Refund of capital contribution by a non-controlling shareholder









Capital contribution by non-controlling shareholders



50,000







Net cash provided by (used in) financing activities



394,026,823



(9,999,380)



56,383,273



7,775,609














Effect of exchange rate fluctuation on cash and restricted cash



224,365



10,275,148



27,688,659



3,818,441














Net increase (decrease) in cash and restricted cash



313,662,066



(26,300,153)



(212,841,072)



(29,352,126)

Cash and restricted cash at beginning of year



30,336,504



343,998,570



317,698,417



43,812,615

Cash and restricted cash at end of year


¥

343,998,570


¥

317,698,417


¥

104,857,345


$

14,460,489














Supplemental cash flow information













Cash paid during the year for interest


¥

1,682,863


¥

1,427,174


¥

1,200,699


$

165,584

Cash paid during the year for taxes


¥

(98,338)


¥

10,214


¥

18,339


$

2,529

Reconciliation of cash and restricted cash, beginning of year













Cash  


¥

30,336,504


¥

343,998,570


¥

316,974,857


¥

43,712,832

Restricted cash







723,560



99,783

Cash and restricted cash, beginning of year


¥

30,336,504


¥

343,998,570


¥

317,698,417


$

43,812,615














Reconciliation of cash and restricted cash, end of year













Cash  


¥

343,998,570


¥

316,974,857


¥

104,125,800


¥

14,359,604

Restricted cash





723,560



731,545



100,885

Cash and restricted cash, end of year


¥

343,998,570


¥

317,698,417


¥

104,857,345


$

14,460,489














Non-cash investing and financing activities













Issuance of common stock in exchange of shares of FGS, net of issuance costs


¥

1,689,807


¥


¥


$

Cancellation of common stock issued prior years in exchange of shares of FGS , net of issuance costs


¥

(1,689,807)


¥


¥


$

Issuance of common stock in exchange of shares of Starry, net of issuance costs



27,675,450


¥


¥


$

Cancellation of shares issued to Starry Lab


¥


¥

(27,675,450)


¥


$

Conversion of convertible notes to 9,225,338 shares of ordinary shares


¥

42,435,669


¥


¥


$

Right-of-use assets obtained in exchange for operating lease obligations


¥

7,242,819


¥

937,672


¥

75,182


$

10,368

Reduction of right-of-use assets and operating lease obligations due to early termination of lease agreement


¥


¥


¥

62,357


$

10,368

Inventories transferred to and used as fixed assets


¥

302,795


¥


¥

(65,456)


$

8,599

Receivable for disposal of property and equipment


¥


¥

3,000


¥


$

(9,027)

Capital contribution receivable due from non-controlling Interest


¥

50,000,000


¥


¥


$

Other payable due to non-controlling interest converted into capital contribution


¥


¥

1,130,000


¥


$

*The accompanying notes are an integral part of these consolidated financial statements.

SOURCE Recon Technology, Ltd

Originally published at https://www.prnewswire.com/news-releases/recon-technology-ltd-reports-financial-year-results-for-fiscal-year-2023-301970498.html
Images courtesy of https://pixabay.com

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