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Recon Technology, Ltd. Company Presentation NasdaqCM: RCON November, 2013

Recon investor presentation

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Page 1: Recon investor presentation

Recon Technology, Ltd.

Company Presentation

NasdaqCM: RCON

November, 2013

Page 2: Recon investor presentation

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

Page 3: Recon investor presentation

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

Page 4: Recon investor presentation

Business Development

Page 5: Recon investor presentation

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.

Page 6: Recon investor presentation

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.

Page 7: Recon investor presentation

• Design + install + maintain;

• Emerson

• Design + install + maintain

• Highly customized

• Construction + service

• Baker Hughes

Page 8: Recon investor presentation

5%

14%

22%54%

5%

Geophysical Exploitation

Project Construction

Production

Drill & Completion

Test and record well

Billion RMB

Investment of Big 3 Oil Companies

Page 9: Recon investor presentation

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

Page 10: Recon investor presentation

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

Page 11: Recon investor presentation

Financial Performance

Page 12: Recon investor presentation

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

Page 13: Recon investor presentation

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)

Page 14: Recon investor presentation

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.

Page 15: Recon investor presentation

New Opportunity

Page 16: Recon investor presentation

Digitized

Oilfield

EQUIPMENT

SERVICE

CONSULTANT

3 years, RMB 86 Billion !!!

Page 17: Recon investor presentation

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.

Page 18: Recon investor presentation

Favorable Industry

Leading technologies and services

Close cooperation with CNPC and Sinopec

Cost advantage

Strong operating performance

Professional Management and Service Team