Recon investor presentation
Recon Technology, Ltd. Company Presentation NasdaqCM: RCON November, 2013 This document contains forward-looking statements as defined by the Private Securities Litigation…
- Recon Technology, Ltd. Company Presentation NasdaqCM: RCON November, 2013
- This document 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, underlying assumptions, and any other statements 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 statements filed from time to time 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. Recon assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. This material is for information purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation for any securities, financial instruments, or common or privately issued stock. No offering of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended. The statements, information and estimates contained herein are based on information that the presenter believes to be reliable as of today's date, but cannot be represented that such statements, information or estimates are complete or accurate. Safe Harbor Statement 2
- Issuer Recon Technology, Ltd. Ticker NasdaqCM: RCON Recent Stock Price [$4.918 (Nov. 8, 2013)] 50 Day Avg. Daily Volume 231,796 Market Cap [$19.52M] Basic/Fully Diluted Shares 3.95/4.91 M Revenue FY2013/FY2012 USD 12.4 Million/ 11.72Million
- Business Development
- Furnaces Pure Equipment Offshore Oil Platform Performance High-end Professional Services Oversea projects SCADA Fracturing Turkmenistan • Through 6 years, Recon has transformed from pure hardware supplier to integrator of professional products and services.
- Production Exploit ation Project construction Develop ment Drill & Completion Storage & Transportation Down-hole tools Fracturing Stimulation Products wellhead equipment well control equipment RTU SCADA Furnace Burner Perforation Construction of digitization oil field Famous Peer Companies Recon Business Chain • By integration of currents business, Recon can provide professional overall-service-package.
- • Design + install + maintain； • Emerson • Design + install + maintain • Highly customized • Construction + service • Baker Hughes
- 5% 14% 22% 54% 5% Geophysical Exploitation Project Construction Production Drill & Completion Test and record well Billion RMB Investment of Big 3 Oil Companies
- 90% 10% 65% Private 35% • As market capacity increase and more open to private companies, integrated service company will finally succeed. SAFE EFFICIENT OVERALL DESIGN CAPITAL and COST
- Blue: Long-term clients. Yellow: Recently developed. Red: Potential target. With more clients, Recon can integrate its resources efficiently and reduce concentration risk. Current：China and Turkmenistan Oversea Following Strategy
- Financial Performance
- 12 24 35 50 19 38 40 67 45 76 77 - 20 40 60 80 100 120 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 R M B m il li o n Consol Revenue VIEs ENI - 10 20 30 40 50 60 70 80 90 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Operation for VIEs
- 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Margin % - 10 20 30 40 50 60 2008 2009 2010 2011 2012 2013 R M B m il li o n Margin 6 8 8 5 6 6 13 8 16 19 - 5 10 15 20 25 30 2009 2010 2011 2012 2013 R M B m il li o n Operating Expense Administration expenses Selling expenses -5 0 5 10 15 20 25 30 2009 2010 2011 2012 2013 R M B M il li o n Net profit (loss)
- Automation 33% Furnaces 32% Buners&Acess ories 24% Fracturing 3% Others 8% Other 11% Automation 45% Furnaces 18% Buners&Acess ories 15% Fracturing 19% Others 3% Other 22% • Three main segments contributes most. • Automation and Fracturing department become stronger.
- New Opportunity
- Digitized Oilfield EQUIPMENT SERVICE CONSULTANT 3 years， RMB 86 Billion ！！！
- Billion USD Million Tons equal Sinopec CNPC CNOOC Oversea M&A for 3 Chinese Companies Oversea Oil Production for 3 Oil Companies • Domestic Companies will play more important role by following CNPC and Sinopec.
- Favorable Industry Leading technologies and services Close cooperation with CNPC and Sinopec Cost advantage Strong operating performance Professional Management and Service Team