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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.
ProductionExploit
ation
Project
construction
Develop
ment
Drill &
CompletionStorage &
Transportation
Down-hole tools
Fracturing
Stimulation
Products
wellhead
equipment
well control
equipment
RTU
SCADA
Furnace
Burner
Perforation
Construction of digitization oil field
Famous
PeerCompanies
Recon
BusinessChain
• 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%
Private35%
• 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
RM
Bm
illi
on
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
RM
Bm
illi
on
Margin
6 8 8
5 6
6
13
8 16
19
-
5
10
15
20
25
30
2009 2010 2011 2012 2013
RM
Bm
illi
on
Operating Expense
Administration expenses Selling expenses
-5
0
5
10
15
20
25
30
2009 2010 2011 2012 2013
RM
BM
illi
on
Net profit (loss)
Automation33%
Furnaces32%
Buners&Acessories24%
Fracturing3%
Others8%
Other11%
Automation45%
Furnaces18%
Buners&Acessories15%
Fracturing19%
Others3%
Other22%
• 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