Recon Technology, Ltd. (NASDAQ: RCON) is having an incredibly strong trading session in the market today, and for good reason. The company announced new projects in a press release issued early this morning. Of course, this led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the news that was released, what we’re seeing from the stock as a result, and what we’ll be watching for with regard to RCON ahead.
RCON Gains On New Projects
As mentioned above, Recon Technology is having an overwhelmingly strong day in the market today after announcing new projects. The company announced that it has won several bids in a press release issued early this morning. According to the release, it is expected that these new projects will generate approximately RMB 2.5 million, which works out to about $0.4 million. Under the terms of the agreement, RCON will procure and import customized instruments as well as provide related installation and maintenance services for the coal chemical business of Shenhua Group Corporation through Shenhua Logistics Group Corporation Limited. In a statement, Mr. Shenping Yin, Founder and CEO at RCON, had the following to offer:
We’re pleased to win a series of Shenhua Group’s projects, representing the successful expansion of our automated business from the oilfield service segment into the coal chemical industry. We will continue to introduce our integrated solutions into other compatible industries. Since 2017, we have been improving our vendor system by importing and using advanced parts to upgrade our overall product lines and comprehensive services. We are also actively promoting our services to other industries beyond the oilfield service segment. It’s always our strategy to leverage our knowledge of the Chinese market and our strong reputation within the Chinese energy industry to introduce cutting-edge technologies to Chinese domestic companies. By expanding this current business strategy to more industrial sectors, we aim to reduce our concentration risks and continue to increase our awareness across a wide spectrum of customers.
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