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Recon Technology Wins $13.6M/Year Three-Year Automation System Bid From Jidong Oilfield

Recon Technology, Ltd. (NASDAQ:RCON) ("Recon" or the "Company") today announced its subsidiary Nanjing Recon Technology Co., Ltd. ("Nanjing Recon") won the bid to build the automation system

Benzinga · 01/02/2020 13:35

Recon Technology, Ltd. (NASDAQ:RCON) ("Recon" or the "Company") today announced its subsidiary Nanjing Recon Technology Co., Ltd. ("Nanjing Recon") won the bid to build the automation system for PetroChina Jidong Oilfield Company ("Jidong Oilfield"). The winning price is RMB 9.5 million (approximately $1.36 million) per year, for a three-year construction period from January 1st, 2020 to December 31st, 2022.

The current bidding price includes compensation for predetermined materials, services and other fees to compete each year's project. Pursuant to the bidding document, the materials bought by Nanjing Recon will be reimbursed by Jidong Oilfield with a 20% discount of the predetermined price under some temporary circumstances, so the total consideration will be reduced accordingly. The Company expects that this reduction will not be material to the winning price.