BEIJING, Sept. 12, 2022 /PRNewswire/ -- Recon Technology, Ltd (NASDAQ: RCON) ("Recon" or the "Company") today announced that Future Gas Station (Beijing) Technology Ltd. ("FGS"), a subsidiary of two mainland China variable interest entities with contractual ties to the Company's subsidiary, Recon Hengda Technology (Beijing) Co., Ltd., is expanding on its previous cooperation agreement with its latest packing cooperation memorandum (the "Memorandum") with Hui Tong Tian Xia Petrochemical (Dalian) Co. Ltd ("Huitong Dalian"), to jointly launch a new generation of industry solutions to serve the national commercial logistics fleet more efficiently and to explore low carbon sustainability with logistics companies by bringing carbon neutral solutions. Huitong Dalian is a leading Chinese company focused on fleet fuel management and is an affiliate of Beijing Hui Tong Tian Xia IOT Technology CO. Ltd ("G7").
FGS and Huitong Dalian previously signed a cooperation agreement in July 2021 to explore the development of an online fuel management system based on the logistics industry to provide a set of management solutions that can meet the needs of G7's customers, mainly logistics companies, to manage their fleet fueling behavior and digital operations such as real-time data management and automatic reconciliation. Based on the previous agreement, the two companies will work together to further improve the efficiency of the digital operation platform and introduce FGS's carbon neutral solution to the logistics industry to create a nationwide online tool for fuel management in the logistics industry.
Mr. Song Yang, the founder of FGS, said, "We are very pleased to upgrade the cooperation with G7. Transportation costs account for more than 50% of total social logistics costs, and road transportation costs account for about 70% of total transportation costs, of which about 80% is borne by medium and heavy trucks. The fuel cost accounts for about 25% of the road transportation costs. We roughly estimate that the fuel expense of medium and heavy trucks in China in the first quarter of 2022 will be about RMB280 billion, which means that the industry-wide fuel expenses are in the trillions every year; however, there lacks a quick and efficient online management platform that can be used nationwide. We hope to further enhance our solution through cooperation with G7, based on G7's extensive customer base and deep insight of the logistics and freight industry, introducing the automatic discount calculation functions and the launch of an enterprise value analysis module to our current online management platform for real-time transactions and to give full play of the business value of FGS.
In addition, we will introduce a new carbon neutral concept into this cooperation, and work with G7 to create a new platform with carbon neutral comprehensive service capability. The logistics industry is both a major energy consumer and a major carbon emitter, and it has become an important issue to meet the challenge of "double carbon" target and achieve low carbon transformation and sustainable development. Based on G7's IoT and AI technology to collect carbon emission data, the digital solution of carbon neutrality of future petrol stations will be implanted into the daily operation of logistics enterprises to help the logistics industry achieve low-carbon sustainable development.
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/.
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