Recon Announces Investment to Build an Integrated Solar Storage Charging Network with CNPC Shan Dong Branch

PVTIME – November 22, Recon Technology Limited (NASDAQ: RCON) (“Recon” or the “Company”) announced the Company’s investment this month in Shandong Zhong You Yun Xin Information Technology Company Limited (“Zhong You Yun Xin”), a PetroChina affiliate in Shandong Province, with a 10% shareholder interest. The company’s primary mission is to accelerating the transition to clean energy and sustainable technologies based on the shareholders’ and management team’s extensive experience sound understanding of the future trends in energy industry, and will soon deploy its first pilot project in Shandong Province in China.

About The Solutions

In June and July 2021, Tesla China opened its all-in-one solar storage charging stations in Shanghai and Lhasa, respectively. The stations generate electricity through the solar roof system and store the electricity in the charging station’s battery modules which would be used for charging the Tesla electric vehicles daily and improving the efficiency of energy use along with achieving energy self-sufficiency. Solar charging panels, energy storage batteries, and charging facilities form a micro-electric grid, which altogether complete the sustainable use of clean energy.

Recon recently launched an updated energy solution based on the integrated microgrid with components of “solar + storage + charging”. Compared to Tesla and other leading companies’ solutions in the new energy industry, we have a significant advantage in the solar energy storage and charging integrated track which is highlighted by the number of energy station outlets and advantages with the openness in partnership selection. Recon has been cultivating the industry for decades and complying with the national policy, leading us to choose to work together with PetroChina in order to complete the upgrade and transformation of existing gas stations infrastructure through a way of “smaller, faster, asset-lightweight”. In China, it is difficult and time-consuming to obtain approval of new lands for the construction of a complete new station like Tesla’s model. Meanwhile, our solution has an advantage of non-significant investment, fast transformation, and most importantly, a more open charging network that is not limited to an exclusive brand.

Management Statement

“We are so pleased to be one of the shareholders of Zhong You Yun Xin and to work with PetroChina’s Shandong branch to explore new ways to transform and upgrade the gas station industry and its profitability model,” said Mr. Shenping Yin, Founder and CEO of Recon. “Our business partnership will be carried out through two main business segments: first, we will help PetroChina Shandong upgrade its operation model with its more than 1,000 gas stations and promote our smart gas station solution, which has been proved effective in Zhe Jiang Province by Future Gas Station (Beijing) Technology, Ltd (“FGS”); at the same time, we will also work with Zhong You Yun Xin to upgrade its current traditional gas stations, whose main source of income is gasoline and diesel sales, to integrated energy supply stations which would be suitable for future energy consumption trends. We will link the new energy and traditional energy markets through a software system based on cloud computing and blockchain technologies, giving full play to the cost advantages of distributed energy, and improving the operational efficiency of gas stations and reducing transition costs.”

Mr. Yin added, “Shandong is a major province for the petrochemical energy supply base in China with more than 10,000 gas stations. Against the backdrop of a changing industry with an increasing share of electric vehicles, all gas stations are being challenged to transform. By partnering with PetroChina and establishing a localized branch in Shandong, we hope to promote efficient gas station management tools and integrated energy supply station solutions that are current, reliable, and provide a convenient, economical and comfortable experience for all vehicle owners. In China’s “carbon peak and carbon neutral” goal, the new energy industry is not only becoming the most rapidly developing and beneficial industry under the support of the relevant national policies, but also bullish in the context of the global capital market. Recon and Shandong PetroChina will build an integrated light storage and promote a charging integrated energy station network pilot, which is also an important direction for our recent new strategic transformation to improve our profitability. We believe the “solar + storage + charging” solution for the clean energy industry is highly expected to a period of rapid development. We firmly believe that Recon will occupy a vital position in this industry.