Document And Entity Information
Document And Entity Information | 6 Months Ended |
Dec. 31, 2023 | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Recon Technology, Ltd |
Entity Central Index Key | 0001442620 |
Document Type | 6-K |
Document Period End Date | Dec. 31, 2023 |
Amendment Flag | false |
Current Fiscal Year End Date | --06-30 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED INTERIM
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | |
Current assets | ||||
Cash | ¥ 121,848,777 | $ 17,162,041 | ¥ 104,125,800 | |
Restricted cash | 3,904 | 550 | 731,545 | |
Short-term investments | 134,000,000 | 18,866,554 | 184,184,455 | |
Notes receivable | 12,532,717 | 1,765,196 | 3,742,390 | |
Accounts receivable, net | 30,813,885 | 4,340,045 | 27,453,415 | |
Inventories, net | 1,855,535 | 261,347 | 6,330,701 | |
Other receivables, net | 4,184,778 | 589,414 | 2,185,733 | |
Loans to third parties | 79,374,144 | 11,179,614 | 123,055,874 | |
Purchase advances, net | 1,996,413 | 281,189 | 2,680,456 | |
Contract costs, net | 37,323,824 | 5,256,951 | 49,572,685 | |
Prepaid expenses | 295,384 | 41,603 | 350,119 | |
Operating lease right-of-use assets, net - current (including ¥nil and ¥113,361 ($15,967) from a related party as of June 30, 2023 and December 31, 2023, respectively) | 879,288 | 123,845 | ||
Total current assets | 425,059,299 | 59,868,349 | 504,413,173 | |
Property and equipment, net | 23,492,024 | 3,308,782 | 24,752,864 | |
Long-term other receivables, net | 3,640 | |||
Long-term loan to third parties | 18,500,000 | 2,605,671 | ||
Operating lease right-of-use assets, net - non-current (including ¥335,976 and ¥nil from a related party as of June 30, 2023 and December 31, 2023, respectively) | 16,204,906 | 2,282,413 | 2,654,900 | |
Total Assets | 483,256,229 | 68,065,215 | 531,824,577 | |
Current liabilities | ||||
Short-term bank loans | 12,336,285 | 1,737,529 | 12,451,481 | |
Accounts payable | 12,062,861 | 1,699,018 | 10,791,721 | |
Other payables | 1,688,166 | 237,773 | 5,819,010 | |
Other payable- related parties | 2,209,017 | 311,134 | 2,592,395 | |
Contract liabilities | 4,888,749 | 688,566 | 2,748,365 | |
Accrued payroll and employees' welfare | 2,399,919 | 338,022 | 2,382,516 | |
Taxes payable | 1,702,898 | 239,848 | 1,163,006 | |
Short-term borrowings - related parties | 20,019,889 | 2,819,742 | 20,018,222 | |
Operating lease liabilities - current (including ¥335,976 and ¥113,361 ($15,967) from a related party as of June 30, 2023 and December 31, 2023, respectively) | 1,038,354 | 146,248 | 3,066,146 | |
Warrant liability - current | 8,519,880 | 1,200,000 | ||
Total Current Liabilities | 66,866,018 | 9,417,880 | 61,032,862 | |
Operating lease liabilities - non-current (including ¥nil ($nil) and ¥nil ($nil) from a related party as of June 30, 2023 and December 31, 2023, respectively) | 25,869 | 3,644 | 25,144 | |
Warrant liability - non-current | 993,986 | 140,000 | 31,615,668 | |
Total Liabilities | 67,885,873 | 9,561,524 | 92,673,674 | |
Commitments and Contingencies | ||||
Equity | ||||
Additional paid-in capital | [1] | 584,275,905 | 82,293,540 | 580,340,061 |
Statutory reserve | 4,148,929 | 584,364 | 4,148,929 | |
Accumulated deficit | (192,994,848) | (27,182,756) | (170,440,826) | |
Accumulated other comprehensive income | 30,517,774 | 4,298,339 | 35,127,173 | |
Total shareholders' equity | 425,980,244 | 59,998,062 | 449,206,962 | |
Non-controlling interests | (10,609,888) | (1,494,371) | (10,056,059) | |
Total equity | 415,370,356 | 58,503,691 | 439,150,903 | |
Total Liabilities and Equity | 483,256,229 | 68,065,215 | 531,824,577 | |
Class A ordinary shares | ||||
Equity | ||||
Common stock value | 27,791 | 3,914 | 26,932 | |
Class B ordinary shares | ||||
Equity | ||||
Common stock value | ¥ 4,693 | $ 661 | ¥ 4,693 | |
[1] * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024 and change in capital structure on March 29, 2024. |
CONDENSED CONSOLIDATED INTERI_2
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS (Parenthetical) | 6 Months Ended | |||||||||||||
May 01, 2024 shares | Mar. 29, 2024 $ / shares shares | Dec. 31, 2023 CNY (¥) shares | Mar. 28, 2024 $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Oct. 16, 2023 shares | Oct. 10, 2023 shares | Jun. 30, 2023 CNY (¥) shares | Jun. 30, 2023 $ / shares | Mar. 15, 2023 $ / shares | Dec. 31, 2022 $ / shares shares | Jun. 14, 2021 $ / shares | Apr. 05, 2021 $ / shares shares | Apr. 05, 2021 ¥ / shares shares | |
Operating lease right-of-use assets, net - current | ¥ 879,288 | $ 123,845 | ||||||||||||
Operating lease right-of-use assets, net - non-current | 16,204,906 | 2,282,413 | ¥ 2,654,900 | |||||||||||
Operating lease liabilities - current | 722,857 | 101,812 | 3,066,146 | |||||||||||
Operating lease liabilities - non-current | ¥ 341,366 | $ 48,080 | ¥ 25,144 | |||||||||||
Ordinary shares, shares outstanding | 7,927,132 | |||||||||||||
Reverse stock split | 0.056 | 0.2 | ||||||||||||
Class A ordinary shares | ||||||||||||||
Ordinary shares, par value (in dollars per share) | (per share) | $ 0.0001 | $ 0.0925 | $ 0.0001 | $ 0.0001 | $ 0.0925 | $ 0.0001 | $ 0.0925 | $ 0.0925 | ¥ 0.62 | |||||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | 150,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | 150,000,000 | 150,000,000 | ||||||
Ordinary shares, shares issued | 2,371,573 | 2,371,573 | 1,175,000 | 2,306,295 | 1,704,766 | |||||||||
Ordinary shares, shares outstanding | 141,703,218 | 2,371,573 | 2,371,573 | 1,175,000 | 2,306,295 | 1,704,766 | ||||||||
Reverse stock split | 0.056 | 0.056 | ||||||||||||
Class B ordinary shares | ||||||||||||||
Ordinary shares, par value (in dollars per share) | (per share) | $ 0.0001 | $ 0.0925 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0925 | ¥ 0.62 | |||||||
Ordinary shares, shares authorized | 80,000,000 | 80,000,000 | 20,000,000 | 80,000,000 | 80,000,000 | 80,000,000 | 20,000,000 | 20,000,000 | ||||||
Ordinary shares, shares issued | 7,100,000 | 7,100,000 | 7,100,000 | 4,100,000 | ||||||||||
Ordinary shares, shares outstanding | 7,100,000 | 7,100,000 | 7,100,000 | 4,100,000 | ||||||||||
Related party | ||||||||||||||
Operating lease right-of-use assets, net - current | ¥ 113,361 | $ 15,967 | ||||||||||||
Operating lease right-of-use assets, net - non-current | ¥ | 0 | ¥ 335,976 | ||||||||||||
Operating lease liabilities - current | 113,361 | $ 15,967 | 335,976 | |||||||||||
Operating lease liabilities - non-current | ¥ | ¥ 0 | ¥ 0 |
CONDENSED CONSOLIDATED INTERI_3
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | 6 Months Ended | ||||
Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | |||
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||
Revenue | $ 6,374,269 | ¥ 45,256,672 | ¥ 45,559,591 | ||
Cost of revenue | 4,669,211 | 33,150,930 | 32,427,772 | ||
Gross profit | 1,705,058 | 12,105,742 | 13,131,819 | ||
Selling and distribution expenses | 640,448 | 4,547,115 | 4,021,899 | ||
General and administrative expenses | 3,104,557 | 22,042,042 | 26,212,540 | ||
Allowance for (net recovery of) credit losses | 218,787 | 1,553,364 | (7,141,708) | ||
Research and development expenses | 952,871 | 6,765,287 | 5,109,302 | ||
Operating expenses | 4,916,663 | 34,907,808 | 28,202,033 | ||
Loss from operations | (3,211,605) | (22,802,066) | (15,070,214) | ||
Other income (expenses) | |||||
Subsidy income | 18,511 | 131,428 | 85,602 | ||
Interest income | 1,698,706 | 12,060,640 | 5,187,649 | ||
Interest expense | (237,086) | (1,683,289) | (169,091) | ||
Loss in fair value changes of warrants liability | (273,412) | (1,941,195) | (20,097,665) | ||
Foreign exchange transaction gain (loss) | (10,710) | (76,040) | 42,455 | ||
Other income (expenses) | (1,225,550) | (8,701,288) | 157,753 | ||
Other income, net | (29,541) | (209,744) | (14,793,297) | ||
Loss before income tax | (3,241,146) | (23,011,810) | (29,863,511) | ||
Income tax expenses | 13,527 | 96,041 | 9,180 | ||
Net loss | (3,254,673) | (23,107,851) | (29,872,691) | ||
Less: Net loss attributable to non-controlling interests | (78,005) | (553,829) | 3,727 | ||
Net loss attributable to Recon Technology, Ltd | (3,176,668) | (22,554,022) | (29,876,418) | ||
Comprehensive income (loss) | |||||
Net loss | (3,254,673) | (23,107,851) | (29,872,691) | ||
Foreign currency translation adjustment | (649,220) | (4,609,399) | 9,663,701 | ||
Comprehensive loss | (3,903,893) | (27,717,250) | (20,208,990) | ||
Less: Comprehensive Income (loss) attributable to non- controlling interests | (78,005) | (553,829) | 3,727 | ||
Comprehensive loss attributable to Recon Technology, Ltd | $ (3,825,888) | ¥ (27,163,421) | ¥ (20,212,717) | ||
Loss per share - basic | (per share) | $ (1.16) | ¥ (8.27) | ¥ (15.46) | [1] | |
Loss per share - diluted | (per share) | $ (1.16) | ¥ (8.27) | ¥ (15.46) | ||
Weighted - average shares - basic | [1] | 2,728,056 | 2,728,056 | 1,932,544 | |
Weighted - average shares - diluted | 2,728,056 | 2,728,056 | 1,932,544 | ||
[1] * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. |
CONDENSED CONSOLIDATED INTERI_4
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) | 6 Months Ended | |
May 01, 2024 | Dec. 31, 2023 | |
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||
Reverse stock split | 0.056 | 0.2 |
CONDENSED CONSOLIDATED INTERI_5
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | Class A ordinary shares Common Stock CNY (¥) shares | Class B ordinary shares Common Stock CNY (¥) shares | Additional Paid-in Capital CNY (¥) | Statutory Reserve CNY (¥) | Accumulated deficit CNY (¥) | Accumulated Other Comprehensive income CNY (¥) | Shareholders' Equity CNY (¥) | Non-controlling Interest CNY (¥) | CNY (¥) | USD ($) | ||||
Opening Balance at Jun. 30, 2022 | ¥ 19,461 | [1] | ¥ 2,604 | [1] | ¥ 516,426,799 | [1] | ¥ 4,148,929 | ¥ (111,273,525) | ¥ 11,307,461 | ¥ 420,631,729 | ¥ (7,746,968) | ¥ 412,884,761 | $ 58,153,603 | |
Opening Balance (in shares) at Jun. 30, 2022 | 1,704,766 | [1] | 4,100,000 | |||||||||||
Restricted shares issued for services | 4,304,857 | [1] | 4,304,857 | 4,304,857 | 606,326 | |||||||||
Restricted shares issued for management | 1,796,417 | [1] | 1,796,417 | 1,796,417 | 253,020 | |||||||||
Net income (loss) for the period | (29,876,418) | (29,876,418) | 3,727 | (29,872,691) | (4,207,481) | |||||||||
Foreign currency translation adjustment | 9,663,701 | 9,663,701 | 9,663,701 | 1,361,104 | ||||||||||
Ending Balance at Dec. 31, 2022 | ¥ 19,461 | [1] | ¥ 2,604 | [1] | 522,528,073 | [1] | 4,148,929 | (141,149,943) | 20,971,162 | 406,520,286 | (7,743,241) | 398,777,045 | 56,166,572 | |
Ending Balance (in shares) at Dec. 31, 2022 | 1,704,766 | [1] | 4,100,000 | |||||||||||
Opening Balance at Jun. 30, 2023 | ¥ 26,932 | [1] | ¥ 4,693 | [1] | 580,340,061 | [1] | 4,148,929 | (170,440,826) | 35,127,173 | 449,206,962 | (10,056,059) | 439,150,903 | 61,853,111 | |
Opening Balance (in shares) at Jun. 30, 2023 | 2,306,295 | [1] | 7,100,000 | |||||||||||
Restricted shares issued for services | 1,070,143 | [1] | 1,070,143 | 1,070,143 | 150,726 | |||||||||
Proceeds from Pre-Founded warrants | ¥ | [1] | ¥ 859 | (859) | |||||||||||
Proceeds from Pre-Founded warrants (in shares) | [1] | 65,278 | ||||||||||||
Restricted shares issued for management | 2,866,560 | [1] | 2,866,560 | 2,866,560 | 403,747 | |||||||||
Net income (loss) for the period | (22,554,022) | (22,554,022) | (553,829) | (23,107,851) | (3,254,673) | |||||||||
Foreign currency translation adjustment | (4,609,399) | (4,609,399) | (4,609,399) | (649,220) | ||||||||||
Ending Balance at Dec. 31, 2023 | ¥ 27,791 | [1] | ¥ 4,693 | [1] | ¥ 584,275,905 | [1] | ¥ 4,148,929 | ¥ (192,994,848) | ¥ 30,517,774 | ¥ 425,980,244 | ¥ (10,609,888) | ¥ 415,370,356 | $ 58,503,691 | |
Ending Balance (in shares) at Dec. 31, 2023 | 2,371,573 | [1] | 7,100,000 | |||||||||||
[1] * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024 and change in capital structure on March 29, 2024. |
CONDENSED CONSOLIDATED INTERI_6
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) | 6 Months Ended | |
May 01, 2024 | Dec. 31, 2023 | |
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||
Reverse stock split | 0.056 | 0.2 |
CONDENSED CONSOLIDATED INTERI_7
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Jun. 30, 2023 CNY (¥) | |
Cash flows from operating activities: | ||||
Net loss | ¥ (23,107,851) | $ (3,254,673) | ¥ (29,872,691) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 1,426,971 | 200,985 | 1,952,625 | |
Loss (gain) from disposal of equipment | 32,252 | 4,543 | (12,782) | |
Gain in fair value changes of warrants liability | 10,461,075 | 1,473,412 | 20,097,665 | |
Allowance for (net recovery of) credit losses | 1,553,364 | 218,787 | (7,141,708) | |
Allowance for slow moving inventories | (350,637) | (49,386) | 245,990 | |
Amortization of right of use assets | 570,959 | 80,418 | 1,627,888 | |
Restricted shares issued for management and employees | 2,866,560 | 403,747 | 1,796,417 | |
Restricted shares issued for services | 1,070,143 | 150,726 | 4,304,857 | |
Accrued interest income from loans to third parties | (4,415,298) | (621,882) | (3,757,041) | |
Accrued interest income from short-term investment | (2,352,250) | (331,307) | 0 | |
Changes in operating assets and liabilities: | ||||
Notes receivable | (8,790,327) | (1,238,092) | 2,356,367 | |
Accounts receivable | (4,412,034) | (621,422) | (12,501,742) | |
Inventories | 4,863,435 | 685,000 | (1,158,138) | |
Other receivables | 5,465,227 | 769,761 | (9,673,906) | |
Purchase advances | 558,040 | 78,598 | (449,477) | |
Contract costs | 10,442,916 | 1,470,854 | 9,765,091 | |
Prepaid expense | 54,734 | 7,709 | 10,345 | |
Prepaid expense - related parties | 0 | 0 | 275,000 | |
Operating lease liabilities | (2,027,067) | (285,506) | (1,619,168) | |
Accounts payable | 1,271,140 | 179,036 | 247,387 | |
Other payables | (4,103,150) | (577,918) | (1,414,691) | |
Other payables-related parties | (383,378) | (53,998) | 231,133 | |
Contract liabilities | 2,140,385 | 301,467 | (1,945,877) | |
Accrued payroll and employees' welfare | 17,399 | 2,451 | 27,710 | |
Taxes payable | 537,591 | 75,718 | 677,510 | |
Net cash used in operating activities | (6,609,801) | (930,972) | (25,931,236) | |
Cash flows from investing activities: | ||||
Purchases of property and equipment | (216,082) | (30,435) | (821,272) | |
Proceeds from disposal of equipment | 20,000 | 2,817 | 31,950 | |
Purchase of land use right | (15,000,251) | (2,112,741) | 0 | |
Repayments of loans to third parties | 44,613,948 | 6,283,743 | 25,194,900 | |
Payments made for loans to third parties | (16,600,000) | (2,338,061) | (58,488,100) | |
Payments for short-term investments | (131,598,400) | (18,535,247) | 0 | |
Redemption of short-term investments | 180,338,865 | 25,400,198 | 0 | |
Net cash (used in) generated by investing activities | 61,558,080 | 8,670,274 | (34,082,522) | |
Cash flows from financing activities: | ||||
Proceeds from short-term bank loans | 0 | 0 | 1,000,000 | |
Repayments of short-term bank loans | (123,000) | (17,324) | 0 | |
Proceeds from short-term borrowings-related parties | 10,000,000 | 1,408,471 | 10,000,000 | |
Repayments of short-term borrowings-related parties | (10,018,222) | (1,411,037) | (9,000,000) | |
Repayments of long-term borrowings-related party | 0 | 0 | (476,927) | |
Redemption of warrants | (31,866,604) | (4,488,317) | 0 | |
Net cash provided by (used in) financing activities | (32,007,826) | (4,508,207) | 1,523,073 | |
Effect of exchange rate fluctuation on cash and restricted cash | (5,945,117) | (837,352) | 10,633,748 | |
Net increase (decrease) in cash and restricted cash | 16,995,336 | 2,393,743 | (47,856,937) | |
Cash and restricted cash, beginning of year | 104,857,345 | 14,768,848 | 317,698,417 | ¥ 317,698,417 |
Cash and restricted cash, end of year | 121,852,681 | 17,162,591 | 269,841,480 | 104,857,345 |
Supplemental cash flow information | ||||
Cash paid during the year for interest | 468,440 | 64,601 | 624,321 | |
Cash paid during the year for taxes | 16,505 | 2,276 | 9,180 | |
Reconciliation of cash and restricted cash, beginning of year | ||||
Cash | 104,125,800 | 14,665,812 | 316,974,857 | 316,974,857 |
Restricted cash | 731,545 | 103,036 | 723,560 | 723,560 |
Cash and restricted cash, beginning of year | 104,857,345 | 14,768,848 | 317,698,417 | 317,698,417 |
Cash | 121,848,777 | 17,162,041 | 269,111,420 | 104,125,800 |
Restricted cash | 3,904 | 550 | 730,060 | 731,545 |
Cash and restricted cash, end of year | 121,852,681 | 17,162,591 | 269,841,480 | ¥ 104,857,345 |
Non-cash investing and financing activities | ||||
Right-of-use assets obtained in exchange for operating lease obligations | 298,783 | 41,204 | 0 | |
Reduction of right-of-use assets and operating lease obligations due to early termination of lease agreement | 0 | 0 | 43,881 | |
Inventories transferred to and used as fixed assets | ¥ 0 | $ 0 | ¥ (65,456) |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 6 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1. ORGANIZATION AND NATURE OF OPERATIONS Organization VIEs: The Company, along with its wholly-owned subsidiaries Recon Investment Ltd. (“Recon-IN”) and Recon Hengda Technology (Beijing) Co., Ltd. (“Recon-BJ”), conducts its business through the following PRC legal entities (“Domestic Companies”) that operate in the Chinese energy industry: 1. Beijing BHD Petroleum Technology Co., Ltd. (“BHD”), 2. Nanjing Recon Technology Co., Ltd. (“Nanjing Recon”). The Company has signed Exclusive Technical Consulting Service Agreements with each of the Domestic Companies, and Equity Interest Pledge Agreements and Exclusive Equity Interest Purchase Agreements with their shareholders (collectively the “VIE Agreements”). Pursuant to these VIE Agreements, the Company has the ability to substantially influence each of the Domestic Companies’ daily operations and financial affairs, appoint their senior executives and approve all matters requiring shareholder approval. The VIE agreements are designed to render the Company as the primary beneficiary of and entitle the Company of rights to consolidate each Domestic Company for accounting purposes. We believe that the Domestic Companies should be treated as Variable Interest Entities (“VIEs”) under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 810 Consolidation and we are regarded as the primary beneficiary of the VIEs. On February 21, 2019, the Company’s board of directors approved transferring the VIEs and VIE-controlled companies from Jining Recon Technology Ltd. (“Recon-JN”) to Recon-BJ. At the time, both Recon-JN and Recon-BJ were the Company’s wholly owned subsidiaries in China. On April 1, 2019, the Company completed the VIE transfer process and then completed the dissolution of Recon-JN on April 10, 2019, and subsequently completed the dissolution of Recon Technology Co., Limited (“Recon-HK”) on May 15, 2020. The Company does not expect any negative impact of this process on its operations. On December 17, 2015, Huang Hua BHD Petroleum Equipment Manufacturing Co., Ltd (“HH BHD”), a fully owned subsidiary established by BHD was organized under the laws of the PRC, focusing on the design, assemble and manufacture of hearing equipment. Gan Su BHD Environmental Technology Co., Ltd (“Gan Su BHD”) was established on May 23, 2017, with registered capital of ¥50.0 million. The paid in capital was ¥27,495,000 ($3,872,590) as of December 31, 2023. BHD owned an equity interest of 49% of Gan Su BHD, and the remaining 51% equity interests was owned by an individual shareholder upon incorporation of Gan Su BHD. On September 25, 2017, the individual shareholder became the minority shareholder by transferring 2.0% equity shares to BHD. On April 26, 2021, the minority shareholder of Gan Su BHD transferred 15.4% of her equity interest to BHD. On May 19, 2021, the minority shareholder transferred 3.6% of her equity interest and BHD transferred 15.4% of its equity interest of Gan Su BHD to Nanjing Recon. There was no consideration paid for the transfers, and after the transfers, BHD owns equity an interest of 51% and Nanjing Recon owns an equity interest of 19% of Gan Su BHD, which is focusing on oilfield sewage treatment and oily sludge disposal projects. Qing Hai BHD New Energy Technology Co., Ltd. (“Qinghai BHD”) was established on October 16, 2017, with registered capital of ¥50.0 million. The paid in capital was ¥4,200,000 ($591,558) as of December 31,2023. BHD owned an equity interest of 55% of Qinghai BHD previously; however, based on an agreement signed by the shareholders of Qinghai BHD dated October 23, 2018, each of the other two individual shareholders agreed to reduce 10% of their equity interests. As a result, Qinghai BHD returned ¥200,000 paid in capital back to one of the individual shareholders. After the new arrangement, BHD owns a total interest of 75% of Qinghai BHD. The remaining paid in capital should be contributed by BHD and the other individual shareholder is ¥33,300,000 ($4,827,276) and ¥12,500,000 ($1,812,041) respectively. Based on its charter dated September 29, 2017, the remaining capital will be injected before September 29, 2036. As the energy consumption market opened to private and foreign companies, and online payment technology developed, the Domestic Companies began to invest in the downstream of the oil industry. On December 15, 2017, BHD and Nanjing Recon entered into a subscription agreement with Future Gas Station (Beijing) Technology, Ltd (“FGS”), pursuant to which the Domestic Companies acquired an 8% equity interest in FGS. Established in January 2016, FGS is a service company focusing on providing new technical applications and data operations to gas stations and provides solutions to gas stations to improve their operations and their customers’ experience. On August 21, 2018, the Domestic Companies entered into an investment agreement and a supplemental agreement (collectively, the “Investment Agreement”) with FGS and the other shareholders of FGS. Pursuant to the Investment Agreement, our VIEs’ ownership interest in FGS shall increase from 8% to 43%, in exchange for their investment in FGS for a total amount of ¥10 million in cash and the issuance of 487,057 (27,059 shares post 2024 Reverse Split) restricted Class A Ordinary Shares to the other shareholders of FGS with certain conditions. As of June 30, 2019, the Domestic Companies invested an aggregate amount of ¥35,116,707 in FGS and issued 487,057 (27,059 shares post 2024 Reverse Split) restricted shares in total to other shareholders of FGS, and the Domestic Companies’ ownership interest in FGS has increased to 43%. On February 4, 2021, Nanjing Recon and BHD, entered into the fourth supplemental agreement to the investment agreement with FGS and FGS’ founding shareholders to acquire 8% equity ownership of FGS. The transaction has been closed. As a result, the Domestic Companies collectively own 51% interest of FGS and began to consolidate the financial results of FGS since January 2021. Through the fourth supplemental agreement, the Domestic Companies waived the requirement on FGS’ performance goal about the number of gas stations. Accordingly, the Domestic Companies agreed to pay for the balance of the investment and cancelled the related lock-up terms on the restricted shares, in exchange of the additional 8% equity ownership of FGS. The VIE contractual arrangements The Company’s main operating entities, the Domestic Companies, are controlled through contractual arrangements by the Company. A VIE is an entity which has a total equity investment that is insufficient to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest, such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected losses of the entity. The variable interest holder, if any, that has a controlling financial interest in a VIE is deemed to be the primary beneficiary of, and must consolidate, the VIE, because it met the condition under accounting principles generally accepted in the United States of America (“U.S. GAAP”) to consolidate the VIE. The Company is deemed to have a controlling financial interest in and be the primary beneficiary of the Domestic Companies because it has both of the following characteristics: ● The power to direct activities of the Domestic Companies that most significantly impact such entities’ economic performance, and ● The obligation to absorb losses of, and the right to receive benefits from, the Domestic Companies that could potentially be significant to such entities. Pursuant to these contractual arrangements, the Domestic Companies shall pay service fees equal to all of their net profit after tax payments to the Company. Accordingly, the Company has the right to absorb 90% of net interest or 100% of net loss of those Domestic Companies for accounting purposes . Such contractual arrangements are designed so that the operations of the Domestic Companies are solely for the benefit of the Company, and therefore the Company must consolidate the Domestic Companies under U.S. GAAP. Risks associated with the VIE structure The Company believes that the contractual arrangements with the VIEs and the shareholders of the VIEs are in compliance with PRC laws and regulations and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce the contractual arrangements. If the legal structure and contractual arrangements were found to be in violation of PRC laws and regulations, the PRC government could: ● revoke the business and operating licenses of the Company’s PRC subsidiary and the VIEs; ● discontinue or restrict the operations of any related-party transactions between the Company’s PRC subsidiary and the VIEs; ● limit the Company’s business expansion in China by way of entering into contractual arrangements; ● impose fines or other requirements with which the Company’s PRC subsidiary and the VIEs may not be able to comply; ● require the Company or the Company’s PRC subsidiary and the VIEs to restructure the relevant ownership structure or operations; or ● restrict or prohibit the Company’s use of the proceeds from public offering to finance the Company’s business and operations in China. The Company’s ability to conduct its businesses may be negatively affected if the PRC government were to carry out of any of the aforementioned actions. As a result, the Company may not be able to consolidate the VIEs in its consolidated financial statements as it may lose the ability to exercise its rights as the primary beneficiary over the VIEs and it may lose the ability to receive economic benefits from the VIEs. The Company, however, does not believe such actions would result in the liquidation or dissolution of the Company, its PRC subsidiary and the VIEs. There are no terms in any arrangements, considering both explicit arrangements and implicit variable interests that require the Company or its subsidiaries to provide financial support to the VIEs and the VIEs’ subsidiaries. However, when the VIEs and the VIEs’ subsidiaries ever need financial support, the Company or its subsidiaries has, at its option and subject to statutory limits and restrictions, provided financial support to the VIEs and the VIEs’ subsidiaries through loans to the VIEs and the VIEs’ subsidiaries. Non-VIE: The Company, along with its wholly-owned subsidiaries, Recon Investment Ltd. (“Recon-IN”) and the following PRC legal entities that operate in the Chinese chemical recycling industry: 1. Shandong Recon Renewable Resources Technology Co., Ltd. (“Shandong Recon”) 2. Guangxi Recon Renewable Resources Technology Co., Ltd. (“Guangxi Recon”) On October 10, 2023, Shandong Recon Renewable Resources Technology C0., Ltd (“Shandong Recon”), a fully owned subsidiary established by Recon-IN, with registered capital of $30.0 million. The paid in capital was $10.0 million as of this report date. Shandong Recon focuses on the Plastic chemical cycles business. On February 22, 2024, Guangxi Recon Renewable Resources Technology Co., Ltd. (“Guangxi Recon”), a fully owned subsidiary established by Recon-IN, with registered capital of $30.0 million., focusing on the Plastic chemical cycles business. The paid in capital was $1.0 million as of this report date. Nature of Operations |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Principles of Consolidation Variable Interest Entities entity that could potentially be significant to the VIE. The Company performs ongoing assessments to determine whether an entity should be considered a VIE and whether an entity previously identified as a VIE continues to be a VIE and whether the Company continues to be the primary beneficiary. Assets recognized as a result of consolidating VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Currency Translation - The Company’s functional currency is US dollars and the consolidated financial statements have been expressed in Chinese Yuan (“RMB”) as RMB is the Company’s reporting currency. The consolidated financial statements as of and for the six months ended December 31, 2023 have been translated into US dollars solely for the convenience of the readers. The translation has been made at the rate of ¥7.0999 = US$1.00, the approximate exchange rate prevailing on December 31, 2023. These translated US dollar amounts should not be construed as representing Chinese Yuan amounts or that the Chinese Yuan amounts have been or could be converted into US dollars. Estimates and Assumptions The key assumptions underlying the Company’s accounting for material arrangements and the reasonably likely material effects of resolving any uncertainties on the Company’s allowance for credit losses related to purchase advances. The production of the Company’s products requires custom-made equipment from its suppliers. To ensure that it can secure the required customized equipment, the Company often needs to make full prepayment for its intended purchases. As a standard practice in the petroleum extraction industry, the Company generally must submit a bid in order to secure the sales contract. The bidding process generally takes between one month to one year and the timing depends on the size of the overall project, which timing and size are generally controlled by its client. In order to secure timely purchase delivery and to meet its product delivery schedule, the Company normally prepays for the purchase advances if the Company believes that it is more than likely to win the bid for the sales contract which is accounted as pre-contract costs. After winning the bid and securing the sale contract, the Company normally needs to deliver its products approximately within one week to six months. Based on the Company’s historical experience, the Company generally is able to realize its purchase advances on the customized equipment that it orders. If it subsequently confirms that the Company is unable to secure the planned contracts with a customer after making the advance payments for these planned contracts, the Company evaluates the probable recoverability of the pre-contract cost and charges to expenses when the Company determines that the recovery of such pre-contract cost is improbable. Fair Values of Financial Instruments The three levels of inputs are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 inputs to the valuation methodology are unobservable. Accounting guidance also describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The carrying amounts reported in the consolidated balance sheets for short-term investments, accounts receivable, notes receivable, other receivables, purchase advances, contract cost, accounts payable, other payable, accrued liabilities, contract liabilities, short-term bank loans and short-term borrowings – related parties approximate fair value because of the immediate or short-term maturity of these financial instruments. The carrying amounts of the long-term borrowings due to related party approximate its fair value because the stated interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable credit risk and maturities. Cash Short-term investments Accounts Receivables, Net, Other Receivables, Net and Loan to Third Parties The adoption of the credit loss accounting standard has no material impact on the Company’s consolidated financial statements as of July 1, 2020. Accounts receivable, other receivables and loan to third parties are recognized and carried at carrying amount less an allowance for credit loss, if any. The Company maintains an allowance for credit losses resulting from the inability of its trade and non-trade customers (“customers”) to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis. The Company has also included in calculation of allowance for credit losses. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. The Company also considers external factors to the specific customer, including current conditions and forecasts of economic conditions. In the event the Company recovers amounts previously reserved for, the Company will reduce the specific allowance for credit losses. The net recovery of provision for credit loss for the six months ended December 31, 2023 decreased by approximately ¥3.1 million ($0.4 million) from the six months ended December 31, 2022. The Company evaluates the creditworthiness of all of its customers individually before accepting them and continuously monitors the recoverability of accounts receivable, other receivables and loan to third parties. If there are any indicators that a customer may not make payment, the Company may consider making provision for non-collectability for that particular customer. At the same time, the Company may cease further sales or services to such customer. The following are some of the factors that the Company considers in determining whether to discontinue sales, record as contra revenue or allowance for credit losses: ● the oil price and fluctuation of the overall oil industry; ● the customer fails to comply with its payment schedule; ● the customer is in serious financial difficulty; ● a significant dispute with the customer has occurred regarding job progress or other matters; ● the customer breaches any of the contractual obligations; ● the customer appears to be financially distressed due to economic or legal factors; ● the business between the customer and the Company is not active; and ● other objective evidence indicates non-collectability of the accounts receivable, other receivables and loan to third parties. The Company considers the following factors when determining whether to permit a longer payment period or provide other concessions to customers: ● the customer’s past payment history; ● the customer’s general risk profile, including factors such as the customer’s size, age, and public or private status; ● macroeconomic conditions that may affect a customer’s ability to pay; and ● the relative importance of the customer relationship to the Company’s business. Notes Receivable Purchase Advances, Net - Inventories, Net Property and Equipment, Net - Property and equipment are stated at cost. Depreciation on motor vehicles and office equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from two to ten years . Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the assets. Items Useful life Motor vehicles 3 - 5 years Office equipment and fixtures 2 - 5 years Production equipment, including: Equipment 10 years Utilities and Facilities 20 years Leasehold improvement Lesser of useful life and lease term Construction in progress includes property and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less any recognized impairment loss. Construction in progress is classified to the appropriate category of property and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. Goodwill - techniques, including a discounted cash flow methodology. To corroborate the discounted cash flow analysis performed at each reporting unit, a market approach is utilized using observable market data such as comparable companies in similar lines of business that are publicly traded or which are part of a public or private transaction (to the extent available). The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the two-step goodwill test. This step is referred to as “Step 0.” Step 0 involves qualitative assessment, among other qualitative factors, weighing the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors. After assessing those various factors, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity will need to proceed to the first step of the goodwill impairment test. Step 1 of the goodwill impairment test, used to identify potential impairment, compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value, which is based on future cash flows, exceeds the carrying amount, goodwill is not considered impaired. If the carrying amount exceeds the fair value, the Step 2 must be performed to measure the amount of the impairment loss, if any. The Company has adopted Accounting Standards Updates (“ASU”) 2017-04, simplifying the Test for Goodwill Impairment, which permits the Company to impair the difference between carrying amounts in excess of the fair value of the reporting unit as the reduction in goodwill. ASU 2017-04 eliminates the requirement in previous GAAP to perform Step 2 of the goodwill impairment test. The Company considers various factors in performing the qualitative test, including macroeconomic conditions, industry and market considerations, the overall financial performance of the Company’s reporting units, the Company’s share price and the excess amount or “cushion” between the Company reporting unit’s fair value and carrying value as indicated on the Company’s most recent quantitative assessment. Intangible Assets, Net – Impairment of Long-Lived Assets - Long-term Investments - Equity Investments with Readily Determinable Fair Values - Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date. The Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. - Equity Investments without Readily Determinable Fair Values - After the adoption of this new accounting standard, the Company elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investments in current earnings. Changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or that can reasonably be known. - Equity Investments Accounted for Using the Equity Method - The Company accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Company adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Company assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Company recorded no impairment loss on its equity method investment during the six months ended December 31, 2022 and 2023. The Company recorded no investment income on its equity method investment in unconsolidated entities during the six months ended December 31, 2022 and 2023, respectively. Business Combinations - In a business combination considered as a step acquisition, the Company remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated statements of operation and comprehensive income (loss). Non-controlling Interests - Revenue Recognition Disaggregation of Revenue Revenue are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following items represent the Company’s revenue disaggregated by revenue source. In accordance with ASC 606-10-50-5, the Company selects categories to present disaggregated revenue that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors and delivery conditions of products and fulfillment of obligations. The Company’s disaggregation of revenue for the six months ended December 31, 2022 and 2023 is disclosed in Note 24. Automation Products and Software; Equipment, Accessories and Others The Company generates revenue primarily through delivery of standard or customized products and equipment, including automation products, furnaces and related accessories. Revenue is recognized when products are delivered, and acceptance reports are signed off by customers. The sale of automation products or specialized equipment when combined with services represent a single performance obligation for the development and construction of a single asset. The Company may also provide design or installation services to clients as there may be such obligation in contracts. The promises to transfer the goods and provision of services are not separately identifiable, which is evidenced by the fact that the Company provides significant services of integrating the goods and services into a single deliverable for which the customer has contracted. For such sales arrangements, the Company recognizes revenue using input method, based on the relationship between actual costs incurred compared to the total estimated costs for the contract. Such method is adopted because the Company believes it best depicts the transfer of goods and services to the customer. Oilfield Environmental Protection Service The Company provides wastewater treatment products and related service to oilfield and chemical industry companies and generates revenue from special equipment, self-developed chemical products and supporting service, transfer. Revenue is recognized when contract obligations have been performed. For such sales arrangements, the Company recognizes revenue when products are delivered, on-site assistance services rendered, and acceptance reports are signed off by customers. Such method is adopted because the Company believes it best depicts the transfer of services to the customer. The Company provides oily sludge disposal and treatment services to oilfield companies and generates revenue from treatment services of oily sludge. Revenue is recognized when contract obligations have been performed. For such sales arrangements, the Company recognizes revenue using output method, based on the percentage-of-completion method. Such method is adopted because the Company believes it best depicts the transfer of services to the customer. Platform Outsourcing Services The Company provides online platform development, maintenance, and operation services to gas stations around different provinces in China to complete online transactions; and API (application programming interface) port export service and related maintain services to business cooperators of different industries that may have transactions in the refueling scenario during the service contract period. The Company considered these performance obligations to be indistinguishable contractual performance obligations. As the Company has no right to get the compensation for any performances completed while not accepted by its customers, the Company can only recognize revenue at a point in time, which is when the online transaction is completed. The Company’s services enable terminal users of different mobile apps run by its clients or cooperators to complete refueling in cash or online through different payment channels, when each transaction, including refueling and payment, is completed, the Company is entitled to charge with pre-settled rates of each transaction amount as service fee and recognize the underlying amount as revenue. Related fees are generally billed monthly, based on a per transaction basis. Arrangements with Multiple Performance Obligations Contracts with customers may include multiple performance obligations. For such arrangements, the Company will allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or using expected cost-plus margin. Contract Balances The Company’s contract balances include contract costs, net and contract liabilities from contracts with customers, and the following table provides information about contract balances: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Contract costs, net ¥ 49,572,685 ¥ 37,323,824 $ 5,256,951 Contract liabilities ¥ 2,748,365 ¥ 4,888,749 $ 688,566 Contract Costs, Net - Pre-Contract Costs - Pre-contract costs are the amounts prepaid to suppliers for purchases of customized equipment in anticipation of obtaining planned contracts for the Company’s hardware and software revenue. If it subsequently confirms that the Company is unable to secure the planned contracts with a customer after making the advance payments for these planned contracts, the Company evaluates the probable recoverability of the pre-contract cost and charges to expenses when the Company determines that the recovery of such pre-contract cost is improbable. - Executed Contract Costs - Direct costs, such as material, labor, depreciation and amortization and subcontracting costs and indirect costs allocable to contracts include the costs of contract supervision, tools and equipment, supplies, quality control and inspection, insurance, repairs and maintenance for quality assurance purposes before clients’ initial acceptance. Once products are delivered, installed and debugged for intended use and accepted by a client, which may last from weeks to months (this process is decided by the client’s individual project construction arrangement), the Company records revenue based on the contract or the final clients’ acceptance. Minor costs for repair during the maintenance period after initial acceptance are recorded as cost of goods sold as they are incurred. All other general and administrative costs and selling costs are charged to expenses as incurred. The Company generally ships its products approximately one week to six months after production begins and the timing depends on the size of the overall project. Contract Liabilities Performance Obligations - Amounts billed to customers for shipping and handling activities to fulfill the Company’s promise to transfer the goods are included in revenue, and costs incurred by the Company for the delivery of goods are classified as cost of sales in the consolidated statements of operations and comprehensive income (loss). Sales, value added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company generally offers assurance-type warranties for its products. The specific terms and conditions of those warranties vary depending upon the product. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the warranty liability include historical product-failure experience and estimated repair costs for identified matters. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount accrued for expected returns and warranty claims was immaterial as of December 31, 2023. The amount of revenue recognized during the six months ended December 31, 2022 and 2023 that was previously included within contract liability balances was ¥1,901,277, and ¥1,689,759 ($237,998), respectively. Practical Expedients Elected Incremental Costs of Obtaining a Contract - The Company has elected the practical expedient permitted in ASC 340-40-25-4, which permits an entity to recognize incremental costs to obtain a contract as an expense when incurred if the amortization period will be less than one year and not significant. Significant Financing Component - The Company has elected the practical expedient permitted in ASC 606-10-32-18, which allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if a contract has a duration of one year or less. As the Company’s contracts are majorly less than one year in length, consideration will not be adjusted. For the Company’s contracts include a standard payment term of 90 days to 180 days; consequently, there is no significant financing component within contracts. There are also some new contracts that will not be completed within one year from year 2023, the Company did calculation and the amount was not material as end of December 31, 2023. Share-Based Compensation - Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight–line basis over the requisite service period for the entire award. The Company has elected to recognize compensation expenses using the valuation model estimated at the grant date based on the award’s fair value . Research and Development Expenses Shipping and Handling Costs - Leases Leases At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The ROU asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All ROU assets are reviewed for impairment annually. There was ¥834,975 ($117,604) and ¥834,975 impairment for ROU lease assets as of December 31, 2023 and June 30, 2023. Income Taxes The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company has no uncertain tax position as of December 31, 2023 and June 30, 2023. As of December 31, 2023, the tax years ended December 31, 2018 through December 31, 2023 for the Company’s People’s Republic of China (“PRC”) subsidiaries remain open for statutory examination by PRC tax authorities. Comprehensive Income (Loss) - Earnings (Loss) per Share (“EPS”) Given the fact that the “2024 Reverse Split” only affected the outstanding number of the Company’s Class A Ordinary Shares, the weighted average number of Class A Ordinary Shares outstanding had been retroactively restated for the 1 -for-18 reverse stock split. While the Class B Ordinary Shares’ number and voting power were not subjected to the 2024 Reverse Split, according to the Company’s Fourth Amended and Restated M&A and Articles of Association, “each Class B Ordinary Share entitles its holder the right to convert it into one eighteenth ( 1/18 ) of a Class A Ordinary Share at any time. Correspondingly, each one eighteenth ( 1/18 ) of a share of Class B Ordinary Share has dividend rights equivalent to the one share of Class A Ordinary Share”. In addition, (a) since becoming public, the Company has never declared a dividend, and (b) if a dividend were declared, the Board of Directors would intend to make sure the dividends were properly allocated among the Class A Ordinary Shares and Class B Ordinary Shares to give effect to the 1/18 ratio. The Company believes that all of these treatments are designed to ensure that the dividend rights and the dividend rate are the same with that for Class A and Class B Ordinary Shares. To calculate EPS equally for all ordinary shares, the Company use the sum of the weighted average number of Class A Ordinary Shares outstanding and one-eighteenth of the weighted average number of Class B Ordinary Shares outstanding as the denominator. The following table sets forth the computation of basic and diluted earnings (loss) per share for the six months ended December 31, 2022 and 2023: For the six months ended December 31, 2022 2023 2023 RMB RMB US Dollars (Unaudited) (Unaudited) (Unaudited) Numerator: Net loss attributable to Recon Technology, Ltd ¥ (29,876,418) ¥ (22,554,022) $ (3,176,668) Denominator: Weighted-average number of ordinary shares outstanding – basic* 1,932,544 2,728,056 2,728,056 Class A Ordinary Shares* 1,704,766 2,333,612 2,333,612 Class B Ordinary Shares (used for EPS calculation) ** 227,778 394,444 394,444 Potentially dilutive shares from outstanding options/warrants/convertible notes — — — Weighted-average number of ordinary shares outstanding – diluted* 1,932,544 2,728,056 2,728,056 Earnings (loss) per share – basic* ¥ (15.46) ¥ (8.27) $ (1.16) Earnings (loss) per share – diluted* ¥ (15.46) ¥ (8.27) $ (1.16) * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. ** The weighted average number of Class B Ordinary Shares outstanding and number used for EPS calculation has been retrospectively adjusted and converted by a ratio of 1/18 to reflect the actual dividend rate of Class B Ordinary Share after the 2024 Reverse Split. Warrants For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the consolidated statements of operations. The estimated liabilities accrued by the company for potential future substantial transaction compensation under the Warrant Purchase Agreement are classified and displayed as "warrants liability" in the financial statements. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures.” This ASU expands required public entities’ segment disclosures, including disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2017-04 will have on its condensed consolidated financial statement presentation or disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This ASU requires additional quantitative and qualitative income tax disclosures to enable financial statements users better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2017-04 will have on its condensed consolidated financial statement presentation or disclosures. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 6 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | NOTE 3. ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Third Parties RMB (Unaudited) (Unaudited) Trade accounts receivable ¥ 27,606,257 ¥ 31,553,107 $ 4,444,162 Allowance for credit losses (152,842) (739,222) (104,117) Total third-parties, net ¥ 27,453,415 ¥ 30,813,885 $ 4,340,045 June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Third Parties- long-term RMB (Unaudited) (Unaudited) Trade accounts receivable ¥ 842,607 ¥ 1,307,791 $ 184,199 Allowance for credit losses (842,607) (1,307,791) (184,199) Total third-parties, net ¥ — ¥ — $ — Net recovery of provision made for credit losses of accounts receivable due from third parties was ¥4,012,249 for the six months ended December 31, 2022. Provision for credit losses of accounts receivable due from third parties was ¥1,051,564 for the six months ended December 31, 2023. As the date of this report, approximately 28.6%, or ¥8.8 million ($1.2 million) of net outstanding balance as of December 31, 2023 has been collected. Movement of allowance for doubtful accounts is as follows: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Beginning balance ¥ 9,612,470 ¥ 995,449 $ 140,206 Charge to (reversal of) credit losses (8,767,356) 1,051,564 148,110 Foreign currency translation adjustments 150,335 — — Ending balance ¥ 995,449 ¥ 2,047,013 $ 288,316 |
NOTES RECEIVABLE
NOTES RECEIVABLE | 6 Months Ended |
Dec. 31, 2023 | |
NOTES RECEIVABLE | |
NOTES RECEIVABLE | NOTE 4. NOTES RECEIVABLE Notes receivable represented the non-interest-bearing commercial bills the Company received from the customers for the purpose of collection of sales amounts, which ranged from three to six months from the date of issuance. As of June 30, 2023 and December 31, 2023, notes receivable was ¥3,742,390 and ¥12,532,717 ($1,765,196), respectively. As of June 30, 2023 and December 31, 2023, no notes were guaranteed or collateralized. As the date of this report, 100.0%, or ¥12.5 million ($1.8 million) have been subsequently collected. |
OTHER RECEIVABLES, NET
OTHER RECEIVABLES, NET | 6 Months Ended |
Dec. 31, 2023 | |
OTHER RECEIVABLES, NET | |
OTHER RECEIVABLES, NET | NOTE 5. OTHER RECEIVABLES, NET Other receivables, net consisted of the following: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Third Party RMB (Unaudited) (Unaudited) Business advances to officers and staffs (A) ¥ 854,162 ¥ 1,849,761 $ 260,533 Deposits for projects 1,247,992 1,224,966 172,533 VAT recoverable 690,053 577,545 81,346 Others 1,392,126 1,134,950 159,854 Allowance for credit losses (1,994,960) (602,444) (84,852) Subtotal 2,189,373 4,184,778 589,414 Less: Long term portion (B) (3,640) — — Other receivable - current portion ¥ 2,185,733 ¥ 4,184,778 $ 589,414 (A) Business advances to officers and staffs represent advances for business travel and sundry expenses related to oilfield or on-site installation and inspection of products through customer approval and acceptance. (B) Long-term portion are mainly tender deposits for large-scale projects or rental contracts. These funds may not be collected back until projects are finished or contracts are completed. Provision for credit losses of other receivables was ¥549,132 for the six months ended December 31, 2022. Net recovery of provision for credit losses of other receivables was ¥1,392,516 for the six months ended December 31, 2023. Movement of allowance for credit losses is as follows: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Beginning balance ¥ 619,444 ¥ 1,994,960 $ 280,984 Charge to (reversal of) allowance 1,375,516 (1,392,516) (196,132) Less: written off — — — Ending balance ¥ 1,994,960 ¥ 602,444 $ 84,852 |
LOANS TO THIRD PARTIES
LOANS TO THIRD PARTIES | 6 Months Ended |
Dec. 31, 2023 | |
LOANS TO THIRD PARTIES | |
LOANS TO THIRD PARTIES | NOTE 6. LOANS TO THIRD PARTIES Loans to third parties consisted of the following: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Working fund to third party companies ¥ 123,055,874 ¥ 97,874,144 $ 13,785,285 Less: Long term portion — (18,500,000) (2,605,671) Loans to third parties ¥ 123,055,874 ¥ 79,374,144 $ 11,179,614 Loans to third parties are mainly used for short-term funding to support the Company’s external business partners and at the same time the Company can earn interest income from these loans. Most of these loans bear interest and have terms of no more than one year, except one of the loans to third party has term of three years. The Company periodically reviewed the loans to third parties as to whether their carrying values remain realizable. The Company believes that the risk associated with the above loans are relatively low based on the evaluation of the creditworthiness of these third-party debtors and the relationships with them. As the date of this report, approximately 63.1%, or ¥61.8 million ($8.7 million) was collected by the Company and the remaining part was expected to be paid in full by end of January 2025. |
CONTRACT COSTS, NET
CONTRACT COSTS, NET | 6 Months Ended |
Dec. 31, 2023 | |
CONTRACT COSTS, NET | |
CONTRACT COSTS, NET | NOTE 7. CONTRACT COSTS, NET Contract costs, net consisted of the following: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Third Party RMB (Unaudited) (Unaudited) Contract costs ¥ 52,158,840 ¥ 41,886,747 $ 5,899,625 Allowance for credit losses (2,586,155) (4,562,923) (642,674) Total contract costs, net ¥ 49,572,685 ¥ 37,323,824 $ 5,256,951 As of December 31, 2023, total contracts costs, net amounted to ¥37,323,824 ($5,256,951), of which 18.5%, or ¥6.9 million ($1.0 million) have been subsequently realized as the date of this report, and the remaining balance is expected to be utilized by December 2024. Net recovery of provision for credit losses of contract costs was ¥3,751,575 for the six months ended December 31, 2022. Provision for credit losses of contract costs was ¥1,939,135 ($273,122) for the six months ended December 31, 2023. Movement of allowance for credit losses of contract costs is as follows: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Beginning balance ¥ 4,063,482 ¥ 2,586,155 $ 364,252 Reversal of allowance (1,720,095) 1,939,135 273,122 Charge to cost of sales 242,768 37,633 5,300 Ending balance ¥ 2,586,155 ¥ 4,562,923 $ 642,674 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | NOTE 8. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Motor vehicles ¥ 5,176,175 ¥ 3,699,101 $ 521,007 Office equipment and fixtures 1,440,819 1,401,599 197,411 Production equipment 31,115,843 31,231,574 4,398,875 Leasehold improvement 2,260,000 2,260,000 318,314 Total cost 39,992,837 38,592,274 5,435,608 Less: accumulated depreciation (14,297,511) (14,157,788) (1,994,083) Less: accumulated impairment (942,462) (942,462) (132,743) Property and equipment, net ¥ 24,752,864 ¥ 23,492,024 $ 3,308,782 Depreciation expenses were ¥1,602,166 and ¥1,426,971 ($200,985) for the six months ended December 31, 2022 and 2023, respectively. Income from property and equipment disposal was ¥12,782 and ¥32,252 ($4,543) for the six months ended December 31,2022 and 2023, respectively. |
BUSINESS ACQUISITION AND INVEST
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | 6 Months Ended |
Dec. 31, 2023 | |
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | NOTE 9. BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY (U) Step Acquisition of Future Gas Station (Beijing) Technology, Ltd (“FGS”) On August 21, 2018, the Company entered into a definitive investment agreement and a supplemental agreement (collectively, the “Agreement”) with FGS and the other shareholders of FGS. Following full performance under the Agreement, Recon will own 43% of FGS. As consideration for increasing its affiliates’ interest in FGS from 8% to 43% , the Company will (1) pay a total of RMB 10 million in cash to FGS and (2) issue 487,057 (27,059 shares post 2024 Reverse Split) restricted Class A Ordinary Shares of the Company (the “Restricted Shares”) to the other shareholders of FGS within 30 days after FGS finalizes recording the Company’s corresponding interest at the local governmental agency. If FGS does not reach certain performance goals, the Company has the right to cancel all of the Restricted Shares and without further payment. The Restricted Shares are also subject to lock-up period requirements that vary for each of FGS shareholders, from one year to three years following issuance of the Restricted Shares. FGS has finalized recording Recon’s corresponding interest at the local governmental agency, and Recon has issued 487,057 ( 27,059 shares post 2024 Reverse Split) Restricted Shares in total to the other shareholders of FGS in August 2018. On September 24, 2019, the Company signed an extension agreement with FGS and the other shareholders of FGS to postpone the Agreement to provide extra period for FGS to further fulfill the goals mentioned on the supplemental agreement. During the original contract period, FGS adjusted its operation model with an advanced improvement of its mobile applications and business model. Objected user and average Gross Merchandise Volume (“GMV”) of FGS’ mobile applications have been exceeded. FGS will need an extension to deploy its business in more provinces to complete a goal of 200 more gas stations. On March 17, 2020, the Company signed a new supplemental agreement with FGS and the other shareholders of FGS to extend another 12 months to February 2021 for FGS and its shareholders to fulfill the goals mentioned on the supplemental agreement. As of December 31, 2020, the Company owned 43% of the equity interests of FGS. The investments are accounted for using the equity method because the Company has significant influence, but no control of FGS. On February 8, 2021, and pursuant to FGS’ shareholder meeting resolution dated January 13, 2021 (“Acquisition Date”), two of the Company’s subsidiaries entered into the fourth supplemental agreement to the investment agreement with FGS and FGS’ founding shareholders to acquire 8% equity ownership of FGS, as an exchange for waiver of the requirement on FGS’ performance goal about the number of gas stations and cancellation of the related lock-up terms on the 487,057 ( 27,059 shares post 2024 Reverse Split) Restricted Shares of the Company (reflecting the effect of one-for- five reverse share split) issued per the agreement signed on August 21, 2018. FGS failed to complete one of the three goals set up in the investment agreement. As a consequence, the Company shall cancel one third of the 487,057 ( 27,059 shares post 2024 Reverse Split) Restricted Shares, which shall be 162,352 ( 9,020 shares post 2024 Reverse Split) Restricted Shares. According to this new arrangement, the Company waived the goals and cancellation of the shares as a deemed consideration of the 8% equity. Based on the share price $1.61 ( $28.98 post 2024 Reverse Split) on January 13, 2021, the fair value of the waived performance goal equals to ¥ 1,689,807 ($ 261,667 ). As a result, the Company owns 51% interest of FGS and this transaction was considered as a step acquisition under ASC 805 “Business Combinations”. A step acquisition gain of ¥ 979,254 arising from revaluation of previously held equity interest was recognized during the year ended June 30, 2021. The Company retained independent appraisers to advise management in the determination of the fair value of customers relationship and goodwill. The values assigned in these financial statements represent management’s best estimate of fair values as of the Acquisition Date. The carrying value of other assets and liabilities other than customer relationship and goodwill, are approximate at their fair value as of the Acquisition Date. The fair values of the identifiable assets and liabilities as at the date of the acquisitions are summarized in the following table: RMB US Dollars Cash ¥ 471,843 $ 66,458 Accounts receivable, net 831,049 117,051 Other receivables, net 144,285 20,322 Contract costs, net 75,250 10,599 Prepaid expenses 91,132 12,836 Property and equipment, net 118,130 16,638 Intercompany receivables* 6,850,000 964,802 Intangible assets- customer relationship 7,000,000 985,929 Goodwill 6,996,895 985,492 Accounts payable (1,032,078) (145,365) Other payables (1,273,182) (179,324) Other payable- related parties (479,959) (67,601) Deferred revenue (39,786) (5,604) Accrued payroll and employees’ welfare (1,629,519) (229,513) Taxes payable (64,253) (9,050) Deferred tax liability (1,050,000) (147,889) Total ¥ 17,009,807 $ 2,395,781 Cash considerations — — Deemed equity consideration to acquire 8% equity interest in FGS 1,689,807 238,004 Fair value of previously held equity interest 30,530,000 4,300,061 Non-controlling interest 34,790,000 4,900,069 Capital contribution receivable due from non-controlling Interest (50,000,000) (7,042,353) Total ¥ 17,009,807 $ 2,395,781 * The noncontrolling interest has been recognized at fair value net with subscription receivable on the acquisition date. Goodwill and intangible assets The excess of purchase price over the fair value of assets acquired and liabilities assumed of the business acquired was recorded as goodwill. The goodwill is not expected to be deductible for tax purposes. In conjunction with the preparation of our consolidated financial statement for the six months ended December 31, 2022 and 2023, the management performed evaluation on the impairment of goodwill and concluded that there was no impairment for goodwill for the six months ended December 31, 2022 and 2023. As of December 31, 2023, goodwill was fully impaired. The identifiable goodwill acquired and the carrying value as of December 31, 2023 is as follows: Fair Value RMB US Dollars (Unaudited) (Unaudited) Goodwill ¥ 6,996,895 $ 985,492 Less: impairment (6,996,895) (985,492) The carrying value of goodwill as of December 31, 2023 ¥ — $ — The fair value of identified intangible assets, which is customer relationship, and its estimated useful lives as of December 31, 2023 is as follows: Average Useful Life Fair Value (in Years) RMB US Dollars (Unaudited) (Unaudited) Intangible assets - customer relationship ¥ 7,000,000 $ 985,929 10 Less: accumulated amortization (1,750,000) (246,482) Less: impairment (5,250,000) (739,447) Intangible assets - customer relationship, net ¥ — $ — The amortization expense of customer relationship was ¥350,000 and ¥nil for the six months ended December 31, 2022 and 2023, respectively. Impairment loss for intangible assets - customer relationship was all ¥nil for the six months ended December 31, 2022 and 2023, respectively. As intangible assets - customer relationship was not able to generate enough future cashflow. Therefore, the Company decided to record full impairment of the intangible assets - customer relationship during the year ended June 30, 2023. |
LEASES
LEASES | 6 Months Ended |
Dec. 31, 2023 | |
LEASES | |
LEASES | NOTE 10. LEASES The Company leases office spaces and land use rights under non-cancelable operating leases, with terms ranging from one to fifty years . The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of right of use assets and lease liabilities. Lease expense for lease payment is recognized on a straight-line basis over the lease term. Leases with initial term of 12 months or less are not recorded on the balance sheet. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The table below presents the operating lease related assets and liabilities recorded on the balance sheets: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Rights of use lease assets - current ¥ — ¥ 1,714,263 $ 241,449 Less: impairment — (834,975) (117,604) Rights of use lease assets, net - current — 879,288 123,845 Rights of use lease assets - non - current 3,489,875 16,204,906 2,282,413 Less: impairment (834,975) — — Rights of use lease assets, net - non - current 2,654,900 16,204,906 2,282,413 Operating lease liabilities – current ¥ 3,066,146 ¥ 722,857 $ 101,812 Operating lease liabilities – non-current 25,144 341,366 48,080 Total operating lease liabilities ¥ 3,091,290 ¥ 1,064,223 $ 149,892 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2023: June 30, December 31, 2023 2023 RMB RMB (Unaudited) Remaining lease term and discount rate: Weighted average remaining lease term (years) 23.90 23.50 Weighted average discount rate 5.0 % 5.0 % Operating lease costs and short-term lease costs for the six months ended December 31, 2022 were ¥1,694,074 and ¥480,040, respectively. Operating lease costs and short-term lease costs for the six months ended December 31, 2023 were ¥1,659,302 ($233,708) and ¥313,533 ($44,160), respectively. Impairment loss for the ROU was all ¥nil for the six months ended December 31,2022 and 2023, respectively. As ROU of FGS was not able to generate enough future cashflow. Therefore, the Company decided to record full impairment of the ROU during the year ended June 30, 2023. The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2023: RMB US Dollars Twelve months ending June 30, (Unaudited) (Unaudited) 2024 ¥ 1,045,399 $ 147,241 2025 26,400 3,718 Total lease payments 1,071,799 150,959 Less: imputed interest (7,576) (1,067) Present value of lease liabilities 1,064,223 149,892 Less: operating lease liabilities – current 722,857 101,812 Operating lease liabilities – non-current ¥ 341,366 $ 48,080 |
OTHER PAYABLES
OTHER PAYABLES | 6 Months Ended |
Dec. 31, 2023 | |
OTHER PAYABLES | |
OTHER PAYABLES | NOTE 11. OTHER PAYABLES Other payables consisted of the following: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Third Parties RMB (Unaudited) (Unaudited) Professional service fees ¥ 2,246,101 ¥ 304,474 $ 42,884 Distributors and employees 3,073,289 712,173 100,307 Accrued expenses 200,218 193,274 27,222 Others 299,402 478,245 67,360 Total ¥ 5,819,010 ¥ 1,688,166 $ 237,773 June 30, December 31, December 31, 2022 2023 2023 RMB US Dollars Related Parties RMB (Unaudited) (Unaudited) Expenses paid by the major shareholders ¥ 1,796,309 ¥ 1,663,858 $ 234,350 Due to family members of the owners of BHD and FGS 545,159 545,159 76,784 Due to management staff for costs incurred on behalf of the Company 250,927 — — Total ¥ 2,592,395 ¥ 2,209,017 $ 311,134 |
TAXES PAYABLE
TAXES PAYABLE | 6 Months Ended |
Dec. 31, 2023 | |
TAXES PAYABLE | |
TAXES PAYABLE | NOTE 12. TAXES PAYABLE Taxes payable consisted of the following: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) VAT payable ¥ 699,601 ¥ 720,872 $ 101,533 Income tax payable 440,030 536,071 75,504 Other taxes payable 23,375 445,955 62,811 Total taxes payable ¥ 1,163,006 ¥ 1,702,898 $ 239,848 |
BANK LOANS
BANK LOANS | 6 Months Ended |
Dec. 31, 2023 | |
BANK LOANS | |
BANK LOANS | NOTE 13. BANK LOANS Short-term bank loans consisted of the following: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Bank of Kunlun (1) ¥ 950,000 ¥ 827,000 $ 116,481 Industry and Commercial Bank of China (“ICBC”) (2) 10,000,000 10,007,639 1,409,546 China Construction Bank (3) 1,501,481 1,501,646 211,502 Total short-term bank loans ¥ 12,451,481 ¥ 12,336,285 $ 1,737,529 (1) On August 31, 2022, the Company entered into a loan agreement with Bank of Kunlun to borrow up to ¥ 2,900,000 ( $408,456 ) as working capital for eighteen months , with a maturity date of February 29, 2024. The loan has a fixed interest rate of 6.0% per annum. The Company made a withdrawal in an amount of ¥ 1,000,000 ( $140,847 ) on August 31, 2022. During the year ended June 30, 2023, the Company repaid ¥ 50,000 ( $7,042 ). During the six months ended December 31, 2023, the Company repaid ¥ 123,000 ( $17,324 ). The loan is guaranteed by the non-controlling shareholder of Gan Su BHD. The Company also pledged the accounts receivable from the contracts the Company entered into with CNPC as collateral for this loan, and the total value of the contracts are approximately ¥6.5 million (approximately $1.0 million). From December 31, 2024, to the date of this report, the Company repaid ¥8,269 ( $1,165 ). (2) On June 6, 2023, the Company entered into a revolving loan facility with ICBC to borrow up to ¥ 10,000,000 ( $1,408,471 ) as working capital for one year , with a maturity date of June 7, 2024. The loan has a fixed interest rate of 2.5% per annum. The Company made the first withdrawal in an amount of ¥5,000,000 ( $704,235 ) on June 9, 2023, with a maturity date of June 7, 2024. Company made the second withdrawal in an amount of ¥5,000,000 ( $704,235 ) on June 13, 2023, with a maturity date of June 7, 2024. These loans are pledged by the self-owned housing property of one of the founders of the Company with carrying value of approximately ¥17.6 million (approximately $2.4 million) as collateral for these loans. As the date of this report, the Company has fully repaid the principal of the loan and the interest payable. (3) On August 31, 2022, the Company entered into a revolving loan facility with China Construction Bank to borrow up to ¥1,500,000 ( $211,271 ) as working capital for twelve months, with a maturity date of June 9, 2024. The loan has a fixed interest rate of 3.95% per annum. The loan is guaranteed by the non-controlling shareholder of FGS. As the date of this report, the Company has fully repaid the principal of the loan and the interest payable. Interest expense for the short-term bank loan was ¥227,918 and ¥159,276 ($22,434) for the six months ended December 31,2022 and 2023, respectively. |
SHORT-TERM BORROWINGS DUE TO RE
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES | 6 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES | |
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES | NOTE 14. SHORT-TERM BORROWINGS DUE TO RELATED PARTIES Short-term borrowings due to related parties consisted of the following: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Short-term borrowings due to related parties: RMB (Unaudited) (Unaudited) Short-term borrowing from a Founder, 3.65% annual interest, due on December 26, 2023 ¥ 10,004,055 ¥ — $ — Short-term borrowing from a Founder, 3.40% annual interest, due on June 4, 2024 * 4,993,950 4,994,892 703,516 Short-term borrowing from a Founder, 3.40% annual interest, due on June 16, 2024 * 5,020,217 5,021,164 707,216 Short-term borrowing from a Founder, 3.45% annual interest, due on December 28, 2024 — 10,003,833 1,409,010 Total short-term borrowings due to related parties ¥ 20,018,222 ¥ 20,019,889 $ 2,819,742 * On May 29, 2024, the Company entered into a three-year supplemental agreement with the founder, changing the term of the loan from May 29, 2024 to April 29, 2027 and the annual interest rate to 3.75% . No short-term borrowings due to related parties were guaranteed or collateralized as of June 30, 2023 and December 31, 2023. Interest expense for short-term borrowings due to related parties were ¥142,725 and ¥338,338 ($47,654) for the six months ended December 31, 2022 and 2023, respectively. |
CLASS A ORDINARY SHARES
CLASS A ORDINARY SHARES | 6 Months Ended |
Dec. 31, 2023 | |
CLASS A ORDINARY SHARES | |
CLASS A ORDINARY SHARES | NOTE 15. CLASS A ORDINARY SHARES Share offering On April 5, 2021, the Company held its annual general meeting of shareholders (the “Annual Meeting”) for the fiscal year ended June 30, 2020. At the Annual Meeting, the Company’s shareholders approved a special resolution that the authorized share capital of the Company be amended from US$1,850,000 divided into 20,000,000 Class B Ordinary Shares of a nominal or par value of US$0.0925 each, to US$15,725,000 divided into 150,000,000 (8,333,333 shares post 2024 Reverse Split) Class A Ordinary Shares of a nominal or par value of US$0.0925 (¥0.62) (US$1.67 post 2024 Reverse Split) each, and 20,000,000 Class B Ordinary Shares of a nominal or par value of US$0.0925 (¥0.62) each. The change from Ordinary Shares to Class A Ordinary Shares is reflected with the NASDAQ Capital Market and in the marketplace at the open of business on April 12, 2021, whereupon the Class A Ordinary Shares began trading. The Company’s Class A Ordinary Shares will continue to trade on the NASDAQ Capital Market under the symbol “RCON” and under the CUSIP Number of G7415M124. Holders of Class A Ordinary Shares and Class B Ordinary Shares shall at all times vote together as one class on all resolutions submitted to a vote by the Members. Each Class A Ordinary Share shall be entitled to one (1) vote on all matters subject to vote at general meetings of the Company, and each Class B Ordinary Share shall be entitled to fifteen (15) votes on all matters subject to vote at general meetings of the Company. On June 14, 2021, the Company and certain institutional investors (the “Purchasers”) entered into that certain securities purchase agreement (the “Purchase Agreement”), pursuant to which the Company agreed to sell to such Purchasers an aggregate of 6,014,102 (334,117 shares post 2024 Reverse Split) Class A Ordinary Shares, par value $0.0925 (US$1.67 post 2024 Reverse Split) per share and 2,800,000 (155,556 pre-funded warrants post 2024 Reverse Split) pre-funded warrants (the “Pre-Funded Warrants”) to purchase Class A Ordinary Shares in a registered direct offering, and warrants to purchase up to 8,814,102 (489,673 shares post 2024 Reverse Split) Class A Ordinary Shares in a concurrent private placement, for gross proceeds of approximately $55.0 million before deducting the placement agent’s fees and other offering expenses in an aggregate amount of ¥30,408,264, or $4.7 million. On March 15, 2023, the Company and certain institutional investors (the “Purchasers”) entered into that certain securities purchase agreement (the “Purchase Agreement”), pursuant to which the Company agreed to sell to such Purchasers an aggregate of 8,827,500 (490,417 shares post 2024 Reverse Split) Class A Ordinary Shares, par value $0.0925 (US$1.67 post 2024 Reverse Split) per share and 1,175,000 (65,278 pre-funded warrants post 2024 Reverse Split) pre-funded warrants (the “Pre-Funded Warrants”) to purchase Class A Ordinary Shares in a registered direct offering, and warrants to purchase up to 10,002,500 (555,694 shares post 2024 Reverse Split) Class A Ordinary Shares in a concurrent private placement, for gross proceeds of approximately $8.0 million before deducting the placement agent’s fees and other estimated offering expenses. On October 16, 2023, 1,175,000 (65,278 pre-funded warrants post 2024 Reverse Split) pre-funded warrants issued on March 15, 2023 were exercised by investor and 1,175,000 (65,278 shares post 2024 Reverse Split) Class A Ordinary shares were issued and being outstanding. The following table summarizes the Company’s Pre-Funded Warrants activities and status of Pre-Funded Warrants as of December 31, 2023: Weighted Average Average Remaining Pre-Funded Exercise Price Period Pre-Funded Warrants Warrants* Per Share* (Years) Outstanding as of June 30, 2022 — $ — — Issued 65,278 0.18 5.50 Forfeited — — — Exercised — — — Expired — — — Outstanding as of June 30, 2023 65,278 $ 0.18 5.22 Issued — — — Forfeited — — — Exercised (65,278) 0.18 — Expired — — — Outstanding as of December 31, 2023 — $ — — * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. Appropriated Retained Earnings According to the Memorandum and Articles of Association, the Company is required to transfer a certain portion of its net profit, as determined under PRC accounting regulations, from current net income to the statutory reserve fund. In accordance with the PRC Company Law, companies are required to transfer 10% of their profit after tax, as determined in accordance with PRC accounting standards and regulations, to the statutory reserves until such reserves reach 50% of the registered capital of the companies. As of June 30, 2023 and December 31, 2023, the balance of total statutory reserves was ¥4,148,929 and ¥4,148,929 ($584,364), respectively. |
ORDINARY SHARES PURCHASE WARRAN
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | 6 Months Ended |
Dec. 31, 2023 | |
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | NOTE 16. ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS In May and June 2020, the Company consummated two offerings. In connection with the offering, the Company issued to the investors warrants to purchase an aggregate of 911,112 ( 50,617 shares post 2024 Reverse Split) Class A Ordinary Shares at an exercise price of $2.25 ( $40.50 post 2024 Reverse Split) per Class A Ordinary Share, which was amended to $1.25 ( $22.50 post 2024 Reverse Split) per Class A Ordinary Shares on the second offering on June 30, 2020. These warrants are exercisable at any time, and from time to time, in whole or in part, commencing on May 26, 2020 and expire on November 25, 2025. The fair value of these warrants, using the Black-Scholes option pricing model, on the date of issuance was $1,689,389 . Variables used in the option-pricing model include (1) risk-free interest rate at the date of grant ( 0.40% ), (2) expected warrant life of 5.5 years, (3) expected volatility of 99.50% , and (4) expected dividend yield of 0 . As of June 30, 2021, all warrants were exercised and all the underlying shares were issued. In June 2020, the Company issued to the investors warrants to purchase an aggregate of 1,680,000 (93,333 shares post 2024 Reverse Split) Class A Ordinary Shares at an exercise price of $1.25 ($22.50 post 2024 Reverse Split) per Class A Ordinary Share. These warrants are exercisable at any time, and from time to time, in whole or in part, commencing on June 30, 2020 and expire on December 30, 2025. The fair value of these warrants, using the Black-Scholes option pricing model, on the date of issuance was $1,639,333. Variables used in the option-pricing model include (1) risk-free interest rate at the date of grant (0.35%), (2) expected warrant life of 5.5 years, (3) expected volatility of 104.26% , and (4) expected dividend yield of 0 . As of June 30, 2021, all warrants were exercised. In June 2021, the Company issued to some institutional investors warrants to purchase an aggregate of up to 8,814,102 (489,673 shares post 2024 Reverse Split) Class A Ordinary Shares. (the “Warrant 2021”) The warrants are subject to deemed-liquidation redemption features and are therefore classified as a liability in accordance with FASB ASC 480. Class A Ordinary Shares was adjusted to $0.80 ( $14.40 post 2024 Reverse Split), and the exercise price of the remaining warrants to purchase an aggregate of up to ( $112.32 post 2024 Reverse Split). On December 14, 2023, the Company entered into a Warrant Purchase Agreement with certain accredited investors pursuant to which the Company agreed to buy back an aggregate of 7,950,769 (441,710 warrants post 2024 Reverse Split) warrants from the investors, and the investors agreed to sell the Warrants back to the Company. The purchase price for each Warrant was $0.25 ($4.50 post 2024 Reverse Split). As of December 31,2023, The Company still holds the investor 863,333 (47,963 warrants post 2024 Reverse Split) warrants. As of June 30, 2023 and December 31, 2023, the fair value of the warrant liability of the Warrant 2021 was $1,930,000 and $140,000 (¥993,986). During the six months ended December 31, 2022 and 2023, there was change in fair value of warrant liability in an aggregate amount of $2,880,000 and $197,692, respectively. The key inputs into the Black-Scholes model were as follows at their measurement dates: December 31, June 30, Input 2023 2023 Number of warrants* 47,963 47,963 441,710 Share price* $ 0.23 $ 0.34 0.34 Risk-free interest rate 4.02 % 4.41 % 4.41 % Volatility 119 % 127 % 127 % Exercise price* $ 112.32 $ 112.32 14.40 Warrant life 2.96 years 3.47 years 3.47 years * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. On March 15, 2023, the Company issued to some institutional investors warrants to purchase an aggregate of up to 10,002,500 (555,694 shares post 2024 Reverse Split) Class A Ordinary Shares. (the “Warrant 2023”) The warrants are subject to deemed-liquidation redemption features and are therefore classified as a liability in accordance with FASB ASC 480. Warrant liability is classified as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities. The warrant liability is re-valued at each reporting period with the change in fair value recorded through earnings. The Company established the initial fair value of the warrants at $2,750,000. On December 14,2023, the Company entered into a Warrant Purchase Agreement with certain accredited investors pursuant to which the Company agreed to buy back an aggregate of 10,002,500 (555,694 warrants post 2024 Reverse Split) warrants from the investors, and the investors agreed to sell the Warrants back to the Company. The purchase price for each Warrant is $0.25 ($4.50 post 2024 Reverse Split). On December,14, 2023, Company bought back all warrants 2023 from the investors. As of June 30, 2023 and December 31, 2023, the fair value of the warrant liability of the Warrant 2023 was $2,430,000 and $nil. During the six months ended December 31, 2022 and 2023, there was change in fair value of warrant liability in an aggregate amount of $nil and $70,625, respectively. The key inputs into the Black-Scholes model were as follows at their measurement dates: December 31, June 30, Input 2023 2023 Number of warrants* — 555,694 Share price* $ — $ 0.34 Risk-free interest rate — % 3.59 % Volatility — % 110 % Exercise price* $ — $ 14.40 Warrant life — 5.22 years * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. The following table presents information about the Company’s warrants that were measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2023, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. Quoted Prices In Significant Other Significant Other June 30, Active Markets Observable Inputs Unobservable Inputs Description 2023 (Level 1) (Level 2) (Level 3) Liabilities: Warrant liability - non-current $ 4,360,000 $ — $ — $ 4,360,000 Quoted Prices In Significant Other Significant Other December 31, Active Markets Observable Inputs Unobservable Inputs Description 2023 (Level 1) (Level 2) (Level 3) Liabilities: Warrant liability - non-current $ 140,000 $ — $ — $ 140,000 The following table summarizes the Company’s Warrants activities and status of Warrants as of December 31, 2023: Weighted Average Average Remaining Exercise Price Period Warrants Warrants* Per Share* (Years) Outstanding as of June 30, 2022 489,673 $ 112.32 4.46 Issued 555,694 14.40 5.50 Forfeited — — — Exercised — — — Expired — — — Outstanding as of June 30, 2023 1,045,367 $ 18.90 4.40 Issued — — — Redeemed (997,404) 14.40 — Forfeited — — — Exercised — — — Expired — — — Outstanding as of December 31, 2023 47,963 $ 112.32 2.96 * Retrospectively restated for the 1 December 31, Description 2023 Warrant liability -current * $ 1,200,000 * On December 14, 2023, company bought back an aggregate of 17,953,269 (997,404 warrants post 2024 Reverse Split) warrants from the Sellers. Warrant Purchase Agreement stipulated that “The Company has agreed that if the Company repurchases any other warrants prior to June 14, 2024 at a higher purchase price per Warrant than the purchase price per Warrant stated in the Warrant Purchase Agreement, then the Company shall pay Sellers the difference between the purchase prices per Warrant. Similarly, if the Company enters into or announces any Fundamental Transactions as defined in the Warrants, and the Black-Scholes Value is a purchase price per Warrant that is higher than the purchase price per Warrant stated in the Warrant Purchase Agreement, then the Company shall pay Sellers the difference between the Black-Scholes Value purchase price per Warrant and the stated purchase price per Warrant in the Warrant Purchase Agreement”. The Company accrued an estimated liability of $1,200,000 based on the potential for future significant transaction compensation in contracts to repurchase investor warrants during the six months ended December 31, 2023. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Dec. 31, 2023 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | NOTE 17. SHARE-BASED COMPENSATION Share-Based Awards Plan The following is a summary of the share options activity: Weighted Average Exercise Price Share Options Shares* Per Share* Outstanding as of June 30, 2022 4,444 $ 148.50 Granted — — Forfeited — — Exercised — — Expired — — Outstanding as of June 30, 2023 4,444 $ 148.50 Granted — — Forfeited — — Exercised — — Expired — — Outstanding as of December 31, 2023 4,444 $ 148.50 *Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. The following is a summary of the status of options outstanding and exercisable as of December 31, 2023: Outstanding Options Exercisable Options Average Average Remaining Remaining Average Exercise Contractual Average Exercise Contractual Price* Number* life (Years) Price* Number* life (Years) $ 148.50 4,444 1.08 $ 148.50 4,444 1.08 4,444 4,444 *Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. The Share-based compensation expense recorded for stock options granted were all ¥nil for the six months ended December 31, 2022 and 2023, respectively. No unrecognized share-based compensation for stock options as of December 31, 2023. Restricted Shares to Senior Management As of December 31, 2023, the Company has granted restricted Class A Ordinary Shares to senior management and employees as follows: On August 21, 2018, the Company granted 391,200 ( 21,733 shares post 2024 Reverse Split) restricted shares to its employees as compensation cost for awards. The fair value of the restricted shares was $2,523,240 based on the closing share price $6.45 ( $116.10 post 2024 Reverse Split) at August 21, 2018. These restricted shares will vest over three years with one-third of the shares vesting every year from the grant date. All granted shares under this plan are fully vested on September 3, 2021. On February 28, 2022, the Company granted 1,642,331 ( 91,241 shares post 2024 Reverse Split) Class A Ordinary Shares to its employees as compensation cost for awards. The fair value of the restricted shares was $1,708,024 based on the closing share price $1.04 ( $18.72 post 2024 Reverse Split) at February 28, 2022.These restricted shares will vest over three years with one-third of the shares vesting every year from the grant date. As of June 30, 2023, 547,444 ( 30,414 shares post 2024 Reverse Split) shares were vested and the remaining 1,094,887 ( 60,827 shares post 2024 Reverse Split) shares will not be vested until February 28, 2025. On March 15, 2023, the Company issued 1,000,000 (55,556 shares post 2024 Reverse Split) restricted Class A Ordinary Shares with a value of $372,600 based on the closing share price of $0.3726 ($6.71 post 2024 Reverse Split) on March 15, 2023 to its employee as compensation for service to the Company on new business exploration. The service period was six months from the date of grant. All of the restricted shares were issued on March 15, 2023 and the granted shares under this plan will not be vested until September 15, 2023. Nil and nil restricted Class A restricted shares were issued and outstanding for the six months ended December 31, 2022 and 2023, respectively, for all the plans mentioned above. As of December 31, 2023, the Company has granted restricted Class B Ordinary Shares to senior management as follows: On December 5, 2021, the Company granted 2,500,000 restricted shares to its management as compensation cost for awards. The fair value of the restricted shares was $4,175,000 based on the fair value of the share price $1.67 at December 5, 2021. These restricted shares vested immediately on the grant date. All granted shares under this plan are issued and outstanding on December 5, 2021. On February 28, 2022, the Company granted 1,600,000 restricted shares to its management as compensation cost for awards. The fair value of the restricted shares was $1,694,000 based on the fair value of share price $1.06 at February 28, 2022. These restricted shares vested immediately on the grant date. All granted shares under this plan are issued and outstanding on February 28, 2022. On March 9, 2023, the Company granted 3,000,000 restricted shares to its management as compensation cost for awards. The fair value of the restricted shares was $3,025,000 based on the fair value of share price $1.01 at March 9, 2023. These restricted shares vested immediately on the grant date. All granted shares under this plan are issued and outstanding on March 9, 2023. Nil and nil restricted Class B restricted shares were issued and outstanding during the six months ended December 31, 2022 and 2023, respectively, for all the plans mentioned above. The share-based compensation expense recorded for restricted shares issued for management was ¥ 1,796,417 and ¥ 2,866,560 ( $403,747 ) for the six months ended December 31, 2022 and 2023, respectively. The total unrecognized share-based compensation expense of restricted shares issued for management and employees as of December 31, 2023 was approximately ¥4.7 million ( $0.7 million), which is expected to be recognized over a weighted average period of approximately 1.16 years. Restricted Shares for services As of December 31, 2023, the Company has granted restricted Class A Ordinary Shares to consultant as follows: On November 10, 2021, the Company signed a service agreement with Starry. As the service consideration, the Company should issue 500,000 (27,778 shares post 2024 Reverse Split) restricted Class A Ordinary Shares which vested in equal monthly amounts through the end of December 31, 2021. Half of the restricted Class A Ordinary Shares was valued based on the closing share price of $1.60 ($28.80 post 2024 Reverse Split) on December 10, 2021 and the other half was valued based on the closing share price of $1.31 ($23.58 post 2024 Reverse Split) on December 31, 2021. 250,000 (13,889 shares post 2024 Reverse Split) restricted Class A Ordinary Shares were issued on December 10, 2021 and the remaining 250,000 (13,889 shares post 2024 Reverse Split) restricted Class A Ordinary Shares were issued in January 2022. On January 5, 2022, the Company signed a consulting agreement with Lintec Information Ltd (the “Consultant”). As the service consideration, the Company issued 1,050,000 (58,333 shares post 2024 Reverse Split) restricted Class A Ordinary Shares with a value of $1,354,500 based on the closing share price of $1.29 ($23.22 post 2024 Reverse Split) on January 5, 2022 to the Consultant as payment for being the Company’s investment and financial advisor for a period of one year. The vesting period of these shares was one year from the date of contract. All of the restricted shares were issued under this plan on January 5, 2022 and all of the granted shares under this plan was vested as of June 30, 2023. On March 15, 2023, the Company signed a consulting agreement with some business consultants (the “Consultants”). As the service consideration, the Company issued 1,000,000 (55,556 shares post 2024 Reverse Split) restricted Class A Ordinary Shares with a value of $372,600 based on the closing share price of $0.3726 ($6.71 post 2024 Reverse Split) on March 15, 2023 to the Consultants as compensation for acting as advisors to the Company on new business exploration. The vesting period of these shares was six months from the date of contract. All of the restricted shares were issued under this plan on March 15, 2023 and the granted shares under this plan have been vested until September15, 2023. ¥Nil and ¥nil restricted Class A restricted shares were issued and outstanding during the six months ended December 31, 2022 and 2023, respectively, for all the plans mentioned above. The share-based compensation expense recorded for restricted shares issued for service was ¥4,304,857 and ¥1,070,144 ($150,726) for the six months ended December 31, 2022 and 2023, respectively. Following is a summary of the restricted shares granted: Restricted share grants Shares* Non-vested as of June 30, 2022 120,407 Granted 277,778 Vested (226,247) Non-vested as of June 30, 2023 171,938 Granted — Vested (111,111) Non-vested as of December 31, 2023 60,827 *Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. The following is a summary of the status of restricted share at December 31, 2023: Outstanding Restricted Shares Average Remaining Fair Value per Amortization Share* Number* Period (Years) $ 18.72 60,827 1.16 60,827 *Retrospectively restated for the 1 |
INCOME TAX
INCOME TAX | 6 Months Ended |
Dec. 31, 2023 | |
INCOME TAX | |
INCOME TAX | NOTE 18. INCOME TAX The Company is not subject to any income taxes in the United States or the Cayman Islands and had minimal operations in jurisdictions other than the PRC. BHD and Nanjing Recon are subject to PRC’s income taxes as PRC domestic companies. The Company follows Implementing Rules for the Enterprise Income Tax Law (“Implementing Rules”), which took effect on January 1, 2008 and unified the income tax rate for domestic-invested and foreign-invested enterprises at 25%. Nanjing Recon was approved as a government-certified high-technology company and is subject to a reduced income tax rate of 15% through November 30, 2019. Nanjing Recon reapplied for a high-technology company certificate, and the new certificate was approved as November 22, 2019 and expired on November 22, 2022. Nanjing Recon reapplied for a high-technology company certificate, and the new certificate was approved as October 12, 2022 and will expire on October 12, 2025. As approved by the domestic tax authority in the PRC, BHD was recognized as a government-certified high-technology company on November 25, 2009 and is subject to a reduced income tax rate of 15% through November 25, 2018. BHD reapplied for a high-technology company certificate, and the new certificate was approved as October 31, 2018 and expired on October 31, 2021. BHD reapplied for a high-technology company certificate, and the new certificate was approved as December 17, 2021 and will expire on December 17, 2024. Income (loss) before provision for income taxes consisted of: For the six months ended December 31, 2022 2023 2023 RMB RMB US Dollars (Unaudited) (Unaudited) (Unaudited) Outside China areas ¥ (32,395,145) ¥ (14,621,317) $ (2,059,369) China 2,531,634 (8,390,493) (1,181,776) Total ¥ (29,863,511) ¥ (23,011,810) $ (3,241,145) Deferred tax assets, net is composed of the following: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Deferred tax assets: Allowance for credit losses ¥ 1,019,592 ¥ 1,285,544 $ 181,065 Impairment for inventory 90,322 35,646 5,021 Net operating loss carryforwards 23,290,731 24,263,351 3,417,422 Subtotal 24,400,645 25,584,541 3,603,507 Less: Valuation allowance (24,107,246) (25,304,762) (3,564,101) Total deferred tax assets, net ¥ 293,399 ¥ 279,779 $ 39,406 Deferred tax liabilities: Accelerated amortization of intangible assets (146,511) (132,891) (18,717) Gain on the previously held equity method investment (146,888) (146,888) (20,689) Recognition of customer relationship arising from business combinations — — — Total deferred tax liabilities (293,399) (279,779) (39,406) Deferred tax assets, net ¥ — ¥ — $ — The Company’s subsidiaries, VIEs and VIEs’ subsidiaries incurred a cumulative net operating loss (“NOL”) which may reduce future corporate taxable income. As of June 30, 2023, the cumulative NOL was approximately ¥133.6 million. During the six months ended December 31, 2023, the Company’s subsidiaries, VIEs and VIEs’ subsidiaries incurred an additional NOL carryforwards of approximately ¥4.2 million ($0.6 million). As of December 31, 2023, there are $13.2 million ($1.9 million) of the cumulative NOL that have expired, resulting in a cumulative NOL carryforwards of approximately ¥124.6 million ($17.6 million) as of December 31, 2023. The NOL will expire over the next five years as follows: RMB US Dollars Twelve months ending December 31, (Unaudited) (Unaudited) 2024 ¥ 10,484,902 $ 1,476,768 2025 19,617,124 2,763,014 2026 32,533,742 4,582,282 2027 27,137,905 3,822,294 2028 34,868,363 4,911,106 Total ¥ 124,642,036 $ 17,555,464 The Company’s income tax expense (benefit) is comprised of the following: For the six months ended December 31, 2022 2023 2023 RMB RMB US Dollars (Unaudited) (Unaudited) (Unaudited) Current income tax provision ¥ 9,180 ¥ 96,041 $ 13,527 Deferred income tax provision — — — Expense for income tax ¥ 9,180 ¥ 96,041 $ 13,527 |
NON-CONTROLLING INTEREST
NON-CONTROLLING INTEREST | 6 Months Ended |
Dec. 31, 2023 | |
NON-CONTROLLING INTEREST. | |
NON-CONTROLLING INTEREST | NOTE 19. NON-CONTROLLING INTEREST Non-controlling interest consisted of the following: As of June 30, 2023 Nanjing Gan Su Qinghai BHD Recon BHD BHD FGS Total Total RMB RMB RMB RMB RMB RMB US Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 4,805,000 ¥ — ¥ — ¥ 6,656,000 $ 917,904 Capital contribution receivable due from non-controlling Interest — — — — (48,870,000) (48,870,000) (6,739,481) Unappropriated retained earnings (deficit) 3,477,494 3,616,001 (6,336,893) (1,561,196) (1,796,762) (2,601,356) (358,742) Accumulated other comprehensive loss (18,850) (11,853) — — — (30,703) (4,234) Valuation increase shared by minority shareholders — — — — 34,790,000 34,790,000 4,797,760 Total non-controlling interests ¥ 5,109,644 ¥ 3,804,148 ¥ (1,531,893) ¥ (1,561,196) (15,876,762) ¥ (10,056,059) $ (1,386,793) As of December 31, 2023 Nanjing Gan Su Qinghai BHD Recon BHD BHD FGS Total Total RMB RMB RMB RMB RMB RMB US Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 4,805,000 ¥ — ¥ — ¥ 6,656,000 $ 937,478 Capital contribution receivable due from non-controlling Interest — — — — (48,870,000) (48,870,000) (6,883,196) Unappropriated retained earnings (deficit) 3,818,698 3,616,001 (6,982,801) (1,569,913) (2,037,170) (3,155,185) (444,398) Accumulated other comprehensive loss (18,850) (11,853) — — — (30,703) (4,324) Valuation increase shared by minority shareholders — — — — 34,790,000 34,790,000 4,900,069 Total non-controlling interests ¥ 5,450,848 ¥ 3,804,148 ¥ (2,177,801) ¥ (1,569,913) ¥ (16,117,170) ¥ (10,609,888) $ (1,494,371) |
CONCENTRATIONS
CONCENTRATIONS | 6 Months Ended |
Dec. 31, 2023 | |
CONCENTRATIONS | |
CONCENTRATIONS | NOTE Credit risk As of June 30, 2023 and December 31, 2023, approximately ¥45.5 million and ¥ 101.2 million ($14.3 million) of the Company’s cash was on deposit at financial institutions in the PRC, respectively. Per PRC regulations, the maximum insured bank deposit amount is RMB500,000 for each financial institution. The Company’s total unprotected cash held in banks amounted to approximately ¥40.0 million and ¥96.8 million ($13.6 million) as of June 30, 2023 and December 31, 2023, respectively. As of June 30, 2023 and December 31, 2023, approximately ¥240.3 million and ¥154.6 million ($21.8 million) of the Company’s cash was on deposit at financial institutions in the Hong Kong, respectively. Per Hong Kong regulations, the maximum insured bank deposit amount is HKD 500,000 for each financial institution. The Company’s total unprotected cash held in banks amounted to approximately ¥238.8 million and ¥152.9 million ($21.5 million) as of June 30, 2023 and December 31, 2023, respectively. Customer concentration risk For the six months ended December 31, 2022, CNPC represented 41%, SINOPEC represented 31%, and another customer represented 10% of the Company’s total revenue, respectively. At December 31, 2022, CNPC accounted for 43%, SINOPEC represented 18% and another customer accounted for 14% of the Company’s trade accounts receivable, net, respectively. For the six months ended December 31, 2023, CNPC represented 56%, SINOPEC represented 19%, CNOOC represented 15%, and another customer represented 10% of the Company’s total revenue, respectively. At December 31, 2023, CNPC accounted for 34%, SINOPEC represented 14%, CNOOC represented 21%, and another customer accounted for 30% of the Company’s trade accounts receivable, net, respectively. |
COMMITMENTS AND CONTINGENCY
COMMITMENTS AND CONTINGENCY | 6 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCY | |
COMMITMENTS AND CONTINGENCY | NOTE 21. COMMITMENTS AND CONTINGENCY (a) Contingency Severance payments The Labor Contract Law of the PRC requires employers to assure the liability of severance payments if employment contracts are terminated. The employers will be liable for one month of severance pay for each year of the service provided by the employees. As of December 31, 2023, the Company estimated its severance payments of approximately ¥7.9 million ($1.1 million) which has not been reflected in its consolidated financial statements, because management cannot predict what the actual payment, if any, will be in the future. Legal contingencies On December 1, 2021, Henan Puxinfangfu Construction Engineering Co., Ltd. (“the Plaintiff”) submitted a Civil Complaint to the People’s Court of Suzhou District, Jiuquan City, Gansu Province (the “Court”) against Gan Su BHD. The complaint requested that Gan Su BHD shall make the compensation to the Plaintiff for the outstanding trade payable plus the interest, and the litigation fee in this case shall be borne by Gan Su BHD. The Plaintiff also applied for property preservation before litigation to preserve the bank account of the Company. On December 1, 2021, the Court issued a judgement and approximately ¥0.7 million ($0.1 million) of Gan Su BHD’s bank balance was became restricted for one year. On April 7, 2022 and June 9, 2022, the Court issued first and second judgement which stated that the case to transfer to People’s Court of Yumen for jurisdiction. As of June 30, 2023, Gan Su BHD recorded ¥1.82 million (approximately $0.3 million) account payable due to the Plaintiff, and the compensation claimed by the Plaintiff was approximately ¥2.0 million (approximately $0.3 million). On January 9, 2023, the People’s Court of Yumen City, Gansu Province issued its civil judgement, pursuant to which the Company is required to pay the Plaintiff a settlement payment totaling approximately ¥1.8 million (approximately $0.3 million), including the money compensation and interests. On April 30, 2023, Jiuquan Third Construction and Installation Engineering Company (“the Plaintiff”) submitted a Civil Complaint to the People’s Court of Yumen, Jiuquan City, Gansu Province against Gan Su BHD. The complaint requested that Gan Su BHD shall make the compensation to the Plaintiff for the outstanding trade payable plus the interest, and the litigation fee in this case shall be borne by Gan Su BHD. On August 25, 2023, the Company entered into a Settlement Agreement with the Plaintiff, pursuant to which the Company needs to pay the Plaintiff a total sum of ¥2.8 million (approximately $0.38 million) as settlement payment, including the money compensation and interests. Among which, ¥1.0 million (approximately $0.14 million) is required to be paid by September 25, 2023, ¥1.0 million (approximately $0.14 million) is required to be paid by October 25, 2023, and the remaining balance is required to be paid by November 25, 2023. As of December 31,2023, the Company has paid ¥1.3 million (approximately $0.18 million) to the Plaintiff. (b) Purchase commitment The total future minimum purchase commitment under the non-cancellable purchase contracts as of December 31, 2023 are payable as follows: RMB US Dollars Twelve months ending December 31, (Unaudited) (Unaudited) 2024 ¥ 23,357,995 $ 3,289,905 2025 300,000 42,254 Total minimum payments required ¥ 23,657,995 $ 3,332,159 (c) Office Leases Commitment - short term The Company entered into several non-cancellable operating lease agreements for office spaces. Future payments under such leases were included in lease liabilities as disclosed in Note 10, other than those within under lease agreements within one year which are disclosed as follows as of December 31, 2023: RMB US Dollars Twelve months ending December 31, (Unaudited) (Unaudited) 2024 ¥ 692,500 $ 97,537 Total ¥ 692,500 $ 97,537 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 6 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
RELATED PARTY TRANSACTIONS AND BALANCES | NOTE 22. RELATED PARTY TRANSACTIONS AND BALANCES Leases from related parties - The details of leases from related parties are as below: Monthly Rent Monthly Rent Lessee Lessor Rent Period RMB US Dollars Nanjing Recon One of the founders April 1, 2022 - March 31, 2024 ¥ 40,000 $ 5,634 BHD One of the founders January 1, 2023 - Dec 31, 2023 31,667 4,460 BHD One of the founders January 1, 2023 - Dec 31, 2023 22,500 3,169 As of June 30, 2023, the operating lease ROU assets and corresponding operating lease liabilities of leases from related parties was ¥335,976 ($46,333) and ¥335,976 ($46,333), respectively. As of December 31, 2023, the operating lease ROU assets and corresponding operating lease liabilities of leases from related parties was ¥113,361 ($15,967) and ¥113,361 ($15,967), respectively. Guarantee/collateral related parties |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Dec. 31, 2023 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | NOTE 23. VARIABLE INTEREST ENTITIES VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs and their subsidiaries with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. Summary information regarding consolidated VIEs and their subsidiaries is as follows: June 30, 2023 December 31, 2023 December 31, 2023 RMB RMB US Dollars ASSETS Current Assets Cash ¥ 37,661,118 ¥ 23,902,252 $ 3,366,562 Restricted cash 731,545 3,904 550 Short-term investments — 18,000,000 2,535,247 Notes receivable 3,742,390 12,532,717 1,765,196 Accounts receivable, net 27,453,415 30,813,885 4,340,045 Inventories, net 6,330,701 1,855,535 261,347 Other receivables, net 11,618,275 4,155,097 585,233 Loans to third parties 37,770,188 26,841,513 3,780,548 Purchase advances, net 1,592,761 1,996,413 281,189 Contract costs, net 49,572,685 32,373,824 4,559,758 Prepaid expenses 121,329 193,859 27,303 Operating lease right-of-use assets, net - current — 879,288 123,845 Total current assets 176,594,407 153,548,287 21,626,823 Property and equipment, net 24,752,864 23,492,024 3,308,782 Long-term other receivables, net 3,640 — — Long-term loan to third parties — 18,500,000 2,605,671 Operating lease right-of-use assets, net - non-current 2,654,900 1,219,978 171,830 Total Assets ¥ 204,005,811 ¥ 196,760,289 $ 27,713,106 LIABILITIES Short-term bank loans ¥ 12,451,481 ¥ 12,336,285 $ 1,737,529 Accounts payable 10,791,721 12,062,861 1,699,018 Other payables 3,904,135 1,340,788 188,846 Other payable- related parties 1,356,915 2,162,184 304,537 Contract liabilities 2,748,361 4,888,749 688,566 Accrued payroll and employees’ welfare 1,048,061 1,077,495 151,762 Intercompany payables* 263,935,922 259,617,001 36,566,290 Taxes payable 1,163,237 1,265,868 178,294 Short-term borrowings - related parties 20,018,222 20,019,889 2,819,742 Operating lease liabilities - current 3,066,146 1,038,354 146,248 Total current liabilities 320,484,201 315,809,474 44,480,832 Operating lease liabilities - non-current 25,144 25,869 3,644 Total Liabilities ¥ 320,509,345 ¥ 315,835,343 $ 44,484,476 * The financial performance of VIEs and their subsidiaries reported in the unaudited condensed consolidated interim statement of operations and comprehensive income for the six months ended December 31, 2022 includes revenues of ¥45,559,591 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Dec. 31, 2023 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 24. SEGMENT REPORTING ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different products. Based on management’s assessment, the Company has determined that it has four operating segments: automation product and software, equipment and accessories, oilfield environmental protection and platform outsourcing services. The following tables present summary information by segment for the six months ended December 31, 2022 and 2023, respectively: For the six months ended December 31, 2022 2023 2023 RMB RMB US Dollars (Unaudited) (Unaudited) (Unaudited) Automation product and software ¥ 19,055,227 ¥ 17,552,892 $ 2,472,273 Equipment, accessories and others 9,730,859 17,867,404 2,516,571 Oilfield environmental protection 12,789,684 8,053,696 1,134,339 Platform Outsourcing Services 3,983,821 1,782,680 251,085 Total revenue ¥ 45,559,591 ¥ 45,256,672 $ 6,374,268 For the six months ended December 31, 2023 Automation Equipment, Oilfield Platform product and accessories environmental outsourcing software and others protection services Total RMB RMB RMB RMB RMB (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue ¥ 17,552,892 ¥ 17,867,404 ¥ 8,053,696 ¥ 1,782,680 ¥ 45,256,672 Cost of revenue and related tax 14,040,976 12,778,042 6,020,271 311,641 33,150,930 Gross profit ¥ 3,511,916 ¥ 5,089,362 ¥ 2,033,425 ¥ 1,471,039 ¥ 12,105,742 Depreciation and amortization ¥ 253,397 ¥ 143,927 ¥ 1,029,646 ¥ — ¥ 1,426,970 Total capital expenditures ¥ 83,253 ¥ 116,191 ¥ — ¥ — ¥ 199,444 Timing of revenue recognition Goods transferred at a point in time ¥ 14,368,994 ¥ 17,867,404 ¥ 8,053,696 ¥ 166,899 ¥ 40,456,993 Services rendered over time 3,183,898 — — 1,615,781 4,799,679 Total revenue ¥ 17,552,892 ¥ 17,867,404 ¥ 8,053,696 ¥ 1,782,680 ¥ 45,256,672 For the six months ended December 31, 2022 Automation Equipment, Oilfield Platform product and accessories environmental outsourcing software and others protection services Total RMB RMB RMB RMB RMB (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue ¥ 19,055,227 ¥ 9,730,859 ¥ 12,789,684 ¥ 3,983,821 ¥ 45,559,591 Cost of revenue and related tax 14,955,185 6,254,015 9,988,100 1,230,472 32,427,772 Gross profit ¥ 4,100,042 ¥ 3,476,844 ¥ 2,801,584 ¥ 2,753,349 ¥ 13,131,819 Depreciation and amortization ¥ 524,970 ¥ 358,954 ¥ 1,038,342 ¥ 30,359 ¥ 1,952,625 Total capital expenditures ¥ 2,303,311 ¥ 3,008 ¥ — ¥ 14,953 ¥ 2,321,272 Timing of revenue recognition Goods transferred at a point in time ¥ 19,055,227 ¥ 9,730,859 ¥ 10,282,687 ¥ 3,983,821 ¥ 43,052,594 Services rendered over time — — 2,506,997 — 2,506,997 Total revenue ¥ 19,055,227 ¥ 9,730,859 ¥ 12,789,684 ¥ 3,983,821 ¥ 45,559,591 June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Total assets: Automation product and software ¥ 167,009,315 ¥ 157,269,367 $ 22,150,927 Equipment, accessories and others 170,809,759 158,131,921 22,272,414 Oilfield environmental protection 107,393,609 94,285,444 13,279,827 Platform outsourcing services 86,611,894 73,569,497 10,362,047 Total assets ¥ 531,824,577 ¥ 483,256,229 $ 68,065,215 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 25. SUBSEQUENT EVENTS These consolidated financial statements were approved by management and available for issuance on June 28, 2024, and the Company has evaluated subsequent events through this date. On January 31, 2024, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”), pursuant to which the Company agreed to sell securities to various purchasers (the “Purchasers”) in a private placement transaction (the “Private Placement”). Pursuant to the Securities Purchase Agreement, the Company agreed to transfer, assign, set over and deliver to the Purchasers and the Purchasers agree, severally and not jointly, to acquire from the Company in the aggregate 100,000,000 (5,555,559 shares post 2024 Reverse Split) of the Company’s Class A Ordinary Shares at USD$0.11 ($1.98 post 2024 Reverse Split) per share for $11,000,000. On February 2, 2024, the Company closed the Private Placement. On February 22, 2024, Guangxi Recon Renewable Resources Technology Co., Ltd. (“Guangxi Recon”), a fully owned subsidiary established by Recon-IN, with registered capital of $30.0 million., focusing on the Plastic chemical cycles business. The paid in capital was $1.0 million as of the report date. On February 26, 2024, the Company granted 6,255,483 (347,527 shares post 2024 Reverse Split) restricted Class A Ordinary Shares and 12,900,000 restricted Class B Ordinary Shares to its management and staff. The fair value of the Class A restricted shares was $988,366 based on the fair value of share price $0.158 ($2.844 post 2024 Reverse Split) at February 26, 2024. The fair value of the Class B restricted shares was $2,130,000 based on the fair value of share price $0.17 at February 26, 2024. On March 29, 2024, the Company’s shareholders approved the reverse shares split of the Company’s Class A Ordinary Shares at the ratio of one-for- eighteen with the market effective date of May 1, 2024 (the “2024 Reverse Split”). In connection with the reverse stock split, on March 29, 2024 the Company’s shareholder approved and authorized the Company’s registered office service agent to filed the Fourth Amended and Restated Memorandum and Articles of Association with local registry, and change its authorized share capital from: US $15,725,000 divided into 150,000,000 Class A Ordinary Shares of a nominal or par value of US $0.0925 each, and 20,000,000 Class B Ordinary Shares of a nominal or par value of US $0.0925 each, to: US $58,000 divided into 500,000,000 Class A Ordinary Shares of a nominal or par value of US $0.0001 each and 80,000,000 Class B Ordinary Shares of a nominal or par value of US $0.0001 each (the “2024 change in capital structure”). As a result of the 2024 Reverse Split, each eighteen pre-split Class A Ordinary Shares outstanding were automatically combined and converted to one issued and outstanding Class A Ordinary Share. No fractional Class A Ordinary Shares were issued to any shareholders in connection with the 2024 Reverse Split. Each shareholder was entitled to receive one Class A Ordinary Shares in lieu of the fractional share that would have resulted from the reverse stock split. The Depository Trust Company (the “DTC”) requested the Company’s transfer agent to issue 54,727 round-up Class A Ordinary Shares. As of May 1, 2024 (immediately prior to the effective date), there were 141,703,218 Class A Ordinary Shares outstanding, and the number of Class A Ordinary Shares outstanding after the 2024 Reverse Split is 7,927,132 , taking into account of the effect of rounding fractional shares into whole shares. In addition, all Class A Ordinary Shares, options and any other Class A securities of the Company outstanding immediately prior to the 2024 Reverse Split was retroactively applied by dividing the number of ordinary shares into which the options and other securities are exercisable by 18 and multiplying the exercise price thereof by 18 , as a result of the 2024 Reverse Split. All share and earnings per-share information have been retroactively adjusted to reflect the 2024 Reverse-Split. The Company had 500,000,000 authorized Class A Ordinary Shares, par value of $0.0001 , of which 1,704,766 and 2,371,573 Class A Ordinary Shares were issued and outstanding as of December 31, 2022 and 2023, retrospectively and respectively. The Company had 80,000,000 authorized Class B Ordinary Shares, par value of $0.0001 , of which 4,100,000 and 7,100,000 Class B Ordinary Shares were issued and outstanding as of December 31, 2022 and 2023, retrospectively and respectively. On March 29, 2024, the company signed an office lease agreement with a lease term from May 1, 2024, to April 30, 2027, and an annual rent of 2.28 million. On April 24, 2024, Bank of Kunlun Co., Ltd. Tuha Branch (the “Plaintiff”) submitted a civil complaint to the People's Court of Yizhou District, Hami City, Xinjiang Uygur Autonomous Region (the “Court"). The complaint requested: (1) Gan Su BHD to repay the principal and interest of the loan to the Plaintiff, (2) Gan Su BHD to pay the overdue interest to the Plaintiff; (3) Gan Su BHD to pay the attorney's fees to the Plaintiff; (4) Wang Ping, Beijing BHD, and Nanjing Recon to bear joint and several liabilities for the first four claims of the Plaintiff, (5) all costs of the case, including the acceptance fee, mailing fee, preservation fee, and preservation insurance fee, to be borne by the defendants. The Plaintiff also applied for pre-litigation property preservation. On April 24, 2024, the Court issued a ruling to seize and freeze the bank deposits of the respondents Gan Su BHD, Wang Ping, Beijing BHD, and Nanjing Recon, amounting to ¥848,935.63. On May 24, 2024, the Court made a first-instance judgment, ordering (1) Gan Su BHD to repay the Plaintiff the principal of the loan amounting to ¥818,730.95, (2) Gan Su BHD to pay the loan interest of ¥199.51 and the interest from April 1, 2024, until the actual repayment date (calculated based on the actual amount owed at an annual interest rate of 9%), (3) Gan Su BHD to bear the attorney's fees of ¥30,000, (4) Gan Su BHD to bear the preservation agency fee of ¥4,765, (5) Wang Ping, Beijing BHD and Nanjing Recon to bear joint and several liability guarantees for the above four judgment contents and the case acceptance fee. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 6 Months Ended |
Dec. 31, 2023 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | NOTE 26. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY Pursuant to the requirements of Rules 12-04(a), 5-04(c), and 4-08(e)(3) of Regulation S-X, the condensed financial information of the parent company shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with such requirements and concluded that it was applicable to the Company as the restricted net assets of the Company’s PRC subsidiary and VIEs exceeded 25% of the consolidated net assets of the Company. Therefore, the condensed financial statements for the parent company are included herein. For purposes of the above test, restricted net assets of consolidated subsidiaries and VIEs shall mean that amount of the Company’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries and VIEs in the form of loans, advances, or cash dividends without the consent of a third party. The condensed financial information of the parent company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company used the equity method to account for investment in its subsidiaries and VIEs. Such investment is presented on the condensed balance sheets as “Investment in subsidiaries and VIEs” and the respective profit or loss as “Equity in earnings of subsidiaries and VIEs” on the condensed statements of income. The footnote disclosures contain supplemental information relating to the operations of the Company and, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. The Company did not pay any dividend for the periods presented. As of June 30, 2023 and December 31, 2023, there were no material contingencies, significant provisions for long-term obligations, or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. RECON TECHNOLOGY, LTD PARENT COMPANY BALANCE SHEETS (UNAUDITED) June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) ASSETS Cash ¥ 236,146,589 ¥ 34,657,271 $ 4,881,375 Short-term investments — 115,950,650 16,331,307 Due from intercompany* 291,525,426 356,442,080 50,203,817 Other current assets 80,036,017 52,568,829 7,404,165 Total Current Assets 607,708,032 559,618,830 78,820,664 Investment in subsidiaries and VIEs (122,920,490) (122,676,150) (17,278,574) Total Assets ¥ 484,787,542 ¥ 436,942,680 $ 61,542,090 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current liabilities 3,964,912 1,448,570 204,027 Warrant liability - current 8,519,880 1,200,000 Total Current Liabilities 3,964,912 9,968,450 1,404,027 Warrant liability - non-current 31,615,668 993,986 140,000 Total Liabilities ¥ 35,580,580 ¥ 10,962,436 $ 1,544,027 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY Class A ordinary shares, $0.0001 U.S. dollar par value, 500,000,000 shares authorized; 2,306,295 shares and 2,371,573 shares issued and outstanding as of June 30, 2023 and December 31, 2023, respectively** 26,932 27,791 3,914 Class B ordinary shares, $0.0001 U.S. dollar par value, 80,000,000 shares authorized; 7,100,000 shares and 7,100,000 shares issued and outstanding as of June 30, 2023 and December 31, 2023, respectively** 4,693 4,693 661 Additional paid-in capital** 580,340,061 584,275,905 82,293,540 Accumulated deficit (166,291,897) (188,845,919) (26,598,391) Accumulated other comprehensive income 35,127,173 30,517,774 4,298,339 Total Shareholders’ Equity 449,206,962 425,980,244 59,998,063 Total Liabilities and Shareholders’ Equity ¥ 484,787,542 ¥ 436,942,680 $ 61,542,090 * Due from intercompany are eliminated upon consolidation. ** Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024 and change in capital structure on March 29, 2024. RECON TECHNOLOGY, LTD PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) For the six months ended December 31, 2022 2023 2023 RMB RMB U.S. Dollars (Unaudited) (Unaudited) (Unaudited) Revenues ¥ — ¥ — $ — Cost of revenues — — — Gross profit — — — General and administrative expenses 16,054,522 11,698,953 1,647,763 Provision for credit losses — — — Loss from operations ¥ (16,054,522) ¥ (11,698,953) $ (1,647,763) Gain (loss) in fair value changes of warrants liability (20,097,665) (1,941,195) (273,412) Other income (expenses) 3,716,168 (960,280) (135,253) Equity in earnings of subsidiaries, VIEs and VIEs’ subsidiaries 2,559,601 (7,954,486) (1,120,366) Net loss ¥ (29,876,418) ¥ (22,554,914) $ (3,176,794) FOREIGN CURRENCY TRANSLATION ADJUSTMENTS Foreign currency translation adjustments related to investments in subsidiaries, VIEs and VIEs’ subsidiaries 9,663,701 (4,609,399) (649,220) Comprehensive loss attributable to the company ¥ (20,212,717) ¥ (27,164,313) $ (3,826,014) RECON TECHNOLOGY, LTD PARENT COMPANY STATEMENTS OF CASH FLOWS (UNAUDITED) For the six months ended December 31, 2022 2023 2023 RMB RMB U.S. Dollars (Unaudited) (Unaudited) (Unaudited) Cash flows from operating activities: Net loss ¥ (29,876,418) ¥ (22,554,914) $ (3,176,793) Adjustments to reconcile net income (loss) to net cash used in operating activities: Loss (gain) in fair value changes of warrants liability 20,097,665 10,461,075 1,473,412 Restricted shares issued for management and employees 1,796,417 2,866,560 403,747 Accrued interest income from loans to third parties — (3,088,457) (435,000) Accrued interest income from short-term investment — (2,352,250) (331,307) Restricted shares issued for services 4,304,857 1,070,144 150,727 Equity in earnings of subsidiaries and VIEs (2,559,601) 7,954,486 1,120,366 Other current assets (14,166,457) 7,289,074 1,026,645 Other current liabilities (1,080,736) (2,516,342) (354,421) Net cash used in operating activities (21,484,273) (870,624) (122,624) Cash flows from investing activities: Repayments from loans to third parties 20,694,900 24,849,650 3,500,000 Payments made for loans to third parties (48,288,100) — — Payments for short-term investments — (113,598,400) (16,000,000) Due from intercompany, VIEs and VIEs’ subsidiaries (80,522,546) (64,916,652) (9,143,319) Net cash used in investing activities (108,115,746) (153,665,402) (21,643,319) Net cash used in financing activity: Redemption of warrants — (31,866,604) (4,488,317) Net cash provided by financing activity — (31,866,604) (4,488,317) Effect of exchange rate fluctuation on cash 16,278,998 (15,086,688) (2,124,916) Net decrease in cash (113,321,021) (201,489,318) (28,379,176) CASH, beginning of period 296,838,959 236,146,589 33,260,551 CASH, end of period ¥ 183,517,938 ¥ 34,657,271 $ 4,881,375 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation |
Variable Interest Entities | Variable Interest Entities entity that could potentially be significant to the VIE. The Company performs ongoing assessments to determine whether an entity should be considered a VIE and whether an entity previously identified as a VIE continues to be a VIE and whether the Company continues to be the primary beneficiary. Assets recognized as a result of consolidating VIEs do not represent additional assets that could be used to satisfy claims against the Company’s general assets. Conversely, liabilities recognized as a result of consolidating these VIEs do not represent additional claims on the Company’s general assets; rather, they represent claims against the specific assets of the consolidated VIEs. |
Currency Translation | Currency Translation - The Company’s functional currency is US dollars and the consolidated financial statements have been expressed in Chinese Yuan (“RMB”) as RMB is the Company’s reporting currency. The consolidated financial statements as of and for the six months ended December 31, 2023 have been translated into US dollars solely for the convenience of the readers. The translation has been made at the rate of ¥7.0999 = US$1.00, the approximate exchange rate prevailing on December 31, 2023. These translated US dollar amounts should not be construed as representing Chinese Yuan amounts or that the Chinese Yuan amounts have been or could be converted into US dollars. |
Estimates and Assumptions | Estimates and Assumptions The key assumptions underlying the Company’s accounting for material arrangements and the reasonably likely material effects of resolving any uncertainties on the Company’s allowance for credit losses related to purchase advances. The production of the Company’s products requires custom-made equipment from its suppliers. To ensure that it can secure the required customized equipment, the Company often needs to make full prepayment for its intended purchases. As a standard practice in the petroleum extraction industry, the Company generally must submit a bid in order to secure the sales contract. The bidding process generally takes between one month to one year and the timing depends on the size of the overall project, which timing and size are generally controlled by its client. In order to secure timely purchase delivery and to meet its product delivery schedule, the Company normally prepays for the purchase advances if the Company believes that it is more than likely to win the bid for the sales contract which is accounted as pre-contract costs. After winning the bid and securing the sale contract, the Company normally needs to deliver its products approximately within one week to six months. Based on the Company’s historical experience, the Company generally is able to realize its purchase advances on the customized equipment that it orders. If it subsequently confirms that the Company is unable to secure the planned contracts with a customer after making the advance payments for these planned contracts, the Company evaluates the probable recoverability of the pre-contract cost and charges to expenses when the Company determines that the recovery of such pre-contract cost is improbable. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The three levels of inputs are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 inputs to the valuation methodology are unobservable. Accounting guidance also describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. The carrying amounts reported in the consolidated balance sheets for short-term investments, accounts receivable, notes receivable, other receivables, purchase advances, contract cost, accounts payable, other payable, accrued liabilities, contract liabilities, short-term bank loans and short-term borrowings – related parties approximate fair value because of the immediate or short-term maturity of these financial instruments. The carrying amounts of the long-term borrowings due to related party approximate its fair value because the stated interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable credit risk and maturities. |
Cash | Cash |
Short-term investments | Short-term investments |
Accounts Receivables, Net, Other Receivables, Net and Loan to Third Parties | Accounts Receivables, Net, Other Receivables, Net and Loan to Third Parties The adoption of the credit loss accounting standard has no material impact on the Company’s consolidated financial statements as of July 1, 2020. Accounts receivable, other receivables and loan to third parties are recognized and carried at carrying amount less an allowance for credit loss, if any. The Company maintains an allowance for credit losses resulting from the inability of its trade and non-trade customers (“customers”) to make required payments based on contractual terms. The Company reviews the collectability of its receivables on a regular and ongoing basis. The Company has also included in calculation of allowance for credit losses. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. The Company also considers external factors to the specific customer, including current conditions and forecasts of economic conditions. In the event the Company recovers amounts previously reserved for, the Company will reduce the specific allowance for credit losses. The net recovery of provision for credit loss for the six months ended December 31, 2023 decreased by approximately ¥3.1 million ($0.4 million) from the six months ended December 31, 2022. The Company evaluates the creditworthiness of all of its customers individually before accepting them and continuously monitors the recoverability of accounts receivable, other receivables and loan to third parties. If there are any indicators that a customer may not make payment, the Company may consider making provision for non-collectability for that particular customer. At the same time, the Company may cease further sales or services to such customer. The following are some of the factors that the Company considers in determining whether to discontinue sales, record as contra revenue or allowance for credit losses: ● the oil price and fluctuation of the overall oil industry; ● the customer fails to comply with its payment schedule; ● the customer is in serious financial difficulty; ● a significant dispute with the customer has occurred regarding job progress or other matters; ● the customer breaches any of the contractual obligations; ● the customer appears to be financially distressed due to economic or legal factors; ● the business between the customer and the Company is not active; and ● other objective evidence indicates non-collectability of the accounts receivable, other receivables and loan to third parties. The Company considers the following factors when determining whether to permit a longer payment period or provide other concessions to customers: ● the customer’s past payment history; ● the customer’s general risk profile, including factors such as the customer’s size, age, and public or private status; ● macroeconomic conditions that may affect a customer’s ability to pay; and ● the relative importance of the customer relationship to the Company’s business. |
Notes Receivable | Notes Receivable |
Purchase Advances, Net | Purchase Advances, Net - |
Inventories, Net | Inventories, Net |
Property and Equipment, Net | Property and Equipment, Net - Property and equipment are stated at cost. Depreciation on motor vehicles and office equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from two to ten years . Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the assets. Items Useful life Motor vehicles 3 - 5 years Office equipment and fixtures 2 - 5 years Production equipment, including: Equipment 10 years Utilities and Facilities 20 years Leasehold improvement Lesser of useful life and lease term Construction in progress includes property and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less any recognized impairment loss. Construction in progress is classified to the appropriate category of property and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use. |
Goodwill | Goodwill - techniques, including a discounted cash flow methodology. To corroborate the discounted cash flow analysis performed at each reporting unit, a market approach is utilized using observable market data such as comparable companies in similar lines of business that are publicly traded or which are part of a public or private transaction (to the extent available). The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the two-step goodwill test. This step is referred to as “Step 0.” Step 0 involves qualitative assessment, among other qualitative factors, weighing the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors. After assessing those various factors, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity will need to proceed to the first step of the goodwill impairment test. Step 1 of the goodwill impairment test, used to identify potential impairment, compares the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value, which is based on future cash flows, exceeds the carrying amount, goodwill is not considered impaired. If the carrying amount exceeds the fair value, the Step 2 must be performed to measure the amount of the impairment loss, if any. The Company has adopted Accounting Standards Updates (“ASU”) 2017-04, simplifying the Test for Goodwill Impairment, which permits the Company to impair the difference between carrying amounts in excess of the fair value of the reporting unit as the reduction in goodwill. ASU 2017-04 eliminates the requirement in previous GAAP to perform Step 2 of the goodwill impairment test. The Company considers various factors in performing the qualitative test, including macroeconomic conditions, industry and market considerations, the overall financial performance of the Company’s reporting units, the Company’s share price and the excess amount or “cushion” between the Company reporting unit’s fair value and carrying value as indicated on the Company’s most recent quantitative assessment. |
Intangible Assets, Net | Intangible Assets, Net – |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets - |
Long-term Investments | Long-term Investments - Equity Investments with Readily Determinable Fair Values - Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date. The Company classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. - Equity Investments without Readily Determinable Fair Values - After the adoption of this new accounting standard, the Company elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investments in current earnings. Changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or that can reasonably be known. - Equity Investments Accounted for Using the Equity Method - The Company accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control using the equity method. The Company adjusts the carrying amount of the investment and recognizes investment income or loss for share of the earnings or loss of the investee after the date of investment. The Company assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entities, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investment in privately held entities, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. The Company recorded no impairment loss on its equity method investment during the six months ended December 31, 2022 and 2023. The Company recorded no investment income on its equity method investment in unconsolidated entities during the six months ended December 31, 2022 and 2023, respectively. |
Business Combinations | Business Combinations - In a business combination considered as a step acquisition, the Company remeasures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition-date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated statements of operation and comprehensive income (loss). |
Non-controlling Interests | Non-controlling Interests - |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue Revenue are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following items represent the Company’s revenue disaggregated by revenue source. In accordance with ASC 606-10-50-5, the Company selects categories to present disaggregated revenue that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors and delivery conditions of products and fulfillment of obligations. The Company’s disaggregation of revenue for the six months ended December 31, 2022 and 2023 is disclosed in Note 24. Automation Products and Software; Equipment, Accessories and Others The Company generates revenue primarily through delivery of standard or customized products and equipment, including automation products, furnaces and related accessories. Revenue is recognized when products are delivered, and acceptance reports are signed off by customers. The sale of automation products or specialized equipment when combined with services represent a single performance obligation for the development and construction of a single asset. The Company may also provide design or installation services to clients as there may be such obligation in contracts. The promises to transfer the goods and provision of services are not separately identifiable, which is evidenced by the fact that the Company provides significant services of integrating the goods and services into a single deliverable for which the customer has contracted. For such sales arrangements, the Company recognizes revenue using input method, based on the relationship between actual costs incurred compared to the total estimated costs for the contract. Such method is adopted because the Company believes it best depicts the transfer of goods and services to the customer. Oilfield Environmental Protection Service The Company provides wastewater treatment products and related service to oilfield and chemical industry companies and generates revenue from special equipment, self-developed chemical products and supporting service, transfer. Revenue is recognized when contract obligations have been performed. For such sales arrangements, the Company recognizes revenue when products are delivered, on-site assistance services rendered, and acceptance reports are signed off by customers. Such method is adopted because the Company believes it best depicts the transfer of services to the customer. The Company provides oily sludge disposal and treatment services to oilfield companies and generates revenue from treatment services of oily sludge. Revenue is recognized when contract obligations have been performed. For such sales arrangements, the Company recognizes revenue using output method, based on the percentage-of-completion method. Such method is adopted because the Company believes it best depicts the transfer of services to the customer. Platform Outsourcing Services The Company provides online platform development, maintenance, and operation services to gas stations around different provinces in China to complete online transactions; and API (application programming interface) port export service and related maintain services to business cooperators of different industries that may have transactions in the refueling scenario during the service contract period. The Company considered these performance obligations to be indistinguishable contractual performance obligations. As the Company has no right to get the compensation for any performances completed while not accepted by its customers, the Company can only recognize revenue at a point in time, which is when the online transaction is completed. The Company’s services enable terminal users of different mobile apps run by its clients or cooperators to complete refueling in cash or online through different payment channels, when each transaction, including refueling and payment, is completed, the Company is entitled to charge with pre-settled rates of each transaction amount as service fee and recognize the underlying amount as revenue. Related fees are generally billed monthly, based on a per transaction basis. Arrangements with Multiple Performance Obligations Contracts with customers may include multiple performance obligations. For such arrangements, the Company will allocate revenue to each performance obligation based on its relative standalone selling price. We generally determine standalone selling prices based on the prices charged to customers or using expected cost-plus margin. Contract Balances The Company’s contract balances include contract costs, net and contract liabilities from contracts with customers, and the following table provides information about contract balances: June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Contract costs, net ¥ 49,572,685 ¥ 37,323,824 $ 5,256,951 Contract liabilities ¥ 2,748,365 ¥ 4,888,749 $ 688,566 Contract Costs, Net - Pre-Contract Costs - Pre-contract costs are the amounts prepaid to suppliers for purchases of customized equipment in anticipation of obtaining planned contracts for the Company’s hardware and software revenue. If it subsequently confirms that the Company is unable to secure the planned contracts with a customer after making the advance payments for these planned contracts, the Company evaluates the probable recoverability of the pre-contract cost and charges to expenses when the Company determines that the recovery of such pre-contract cost is improbable. - Executed Contract Costs - Direct costs, such as material, labor, depreciation and amortization and subcontracting costs and indirect costs allocable to contracts include the costs of contract supervision, tools and equipment, supplies, quality control and inspection, insurance, repairs and maintenance for quality assurance purposes before clients’ initial acceptance. Once products are delivered, installed and debugged for intended use and accepted by a client, which may last from weeks to months (this process is decided by the client’s individual project construction arrangement), the Company records revenue based on the contract or the final clients’ acceptance. Minor costs for repair during the maintenance period after initial acceptance are recorded as cost of goods sold as they are incurred. All other general and administrative costs and selling costs are charged to expenses as incurred. The Company generally ships its products approximately one week to six months after production begins and the timing depends on the size of the overall project. Contract Liabilities Performance Obligations - Amounts billed to customers for shipping and handling activities to fulfill the Company’s promise to transfer the goods are included in revenue, and costs incurred by the Company for the delivery of goods are classified as cost of sales in the consolidated statements of operations and comprehensive income (loss). Sales, value added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company generally offers assurance-type warranties for its products. The specific terms and conditions of those warranties vary depending upon the product. The Company estimates the costs that may be incurred under its warranties and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the warranty liability include historical product-failure experience and estimated repair costs for identified matters. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. The amount accrued for expected returns and warranty claims was immaterial as of December 31, 2023. The amount of revenue recognized during the six months ended December 31, 2022 and 2023 that was previously included within contract liability balances was ¥1,901,277, and ¥1,689,759 ($237,998), respectively. Practical Expedients Elected Incremental Costs of Obtaining a Contract - The Company has elected the practical expedient permitted in ASC 340-40-25-4, which permits an entity to recognize incremental costs to obtain a contract as an expense when incurred if the amortization period will be less than one year and not significant. Significant Financing Component - The Company has elected the practical expedient permitted in ASC 606-10-32-18, which allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if a contract has a duration of one year or less. As the Company’s contracts are majorly less than one year in length, consideration will not be adjusted. For the Company’s contracts include a standard payment term of 90 days to 180 days; consequently, there is no significant financing component within contracts. There are also some new contracts that will not be completed within one year from year 2023, the Company did calculation and the amount was not material as end of December 31, 2023. |
Share-Based Compensation | Share-Based Compensation - Share-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense with graded vesting on a straight–line basis over the requisite service period for the entire award. The Company has elected to recognize compensation expenses using the valuation model estimated at the grant date based on the award’s fair value |
Research and Development Expenses | Research and Development Expenses |
Shipping and Handling Costs | Shipping and Handling Costs - |
Leases | Leases Leases At the commencement date, the Company recognizes the lease liability at the present value of the lease payments not yet paid, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate for the same term as the underlying lease. The ROU asset is recognized initially at cost, which primarily comprises the initial amount of the lease liability, plus any initial direct costs incurred, consisting mainly of brokerage commissions, less any lease incentives received. All ROU assets are reviewed for impairment annually. There was ¥834,975 ($117,604) and ¥834,975 impairment for ROU lease assets as of December 31, 2023 and June 30, 2023. |
Income Taxes | Income Taxes The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position would be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company has no uncertain tax position as of December 31, 2023 and June 30, 2023. As of December 31, 2023, the tax years ended December 31, 2018 through December 31, 2023 for the Company’s People’s Republic of China (“PRC”) subsidiaries remain open for statutory examination by PRC tax authorities. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) - |
Earnings (Loss) per Share | Earnings (Loss) per Share (“EPS”) Given the fact that the “2024 Reverse Split” only affected the outstanding number of the Company’s Class A Ordinary Shares, the weighted average number of Class A Ordinary Shares outstanding had been retroactively restated for the 1 -for-18 reverse stock split. While the Class B Ordinary Shares’ number and voting power were not subjected to the 2024 Reverse Split, according to the Company’s Fourth Amended and Restated M&A and Articles of Association, “each Class B Ordinary Share entitles its holder the right to convert it into one eighteenth ( 1/18 ) of a Class A Ordinary Share at any time. Correspondingly, each one eighteenth ( 1/18 ) of a share of Class B Ordinary Share has dividend rights equivalent to the one share of Class A Ordinary Share”. In addition, (a) since becoming public, the Company has never declared a dividend, and (b) if a dividend were declared, the Board of Directors would intend to make sure the dividends were properly allocated among the Class A Ordinary Shares and Class B Ordinary Shares to give effect to the 1/18 ratio. The Company believes that all of these treatments are designed to ensure that the dividend rights and the dividend rate are the same with that for Class A and Class B Ordinary Shares. To calculate EPS equally for all ordinary shares, the Company use the sum of the weighted average number of Class A Ordinary Shares outstanding and one-eighteenth of the weighted average number of Class B Ordinary Shares outstanding as the denominator. The following table sets forth the computation of basic and diluted earnings (loss) per share for the six months ended December 31, 2022 and 2023: For the six months ended December 31, 2022 2023 2023 RMB RMB US Dollars (Unaudited) (Unaudited) (Unaudited) Numerator: Net loss attributable to Recon Technology, Ltd ¥ (29,876,418) ¥ (22,554,022) $ (3,176,668) Denominator: Weighted-average number of ordinary shares outstanding – basic* 1,932,544 2,728,056 2,728,056 Class A Ordinary Shares* 1,704,766 2,333,612 2,333,612 Class B Ordinary Shares (used for EPS calculation) ** 227,778 394,444 394,444 Potentially dilutive shares from outstanding options/warrants/convertible notes — — — Weighted-average number of ordinary shares outstanding – diluted* 1,932,544 2,728,056 2,728,056 Earnings (loss) per share – basic* ¥ (15.46) ¥ (8.27) $ (1.16) Earnings (loss) per share – diluted* ¥ (15.46) ¥ (8.27) $ (1.16) * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. ** The weighted average number of Class B Ordinary Shares outstanding and number used for EPS calculation has been retrospectively adjusted and converted by a ratio of 1/18 to reflect the actual dividend rate of Class B Ordinary Share after the 2024 Reverse Split. |
Warrants | Warrants For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the consolidated statements of operations. The estimated liabilities accrued by the company for potential future substantial transaction compensation under the Warrant Purchase Agreement are classified and displayed as "warrants liability" in the financial statements. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures.” This ASU expands required public entities’ segment disclosures, including disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2017-04 will have on its condensed consolidated financial statement presentation or disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This ASU requires additional quantitative and qualitative income tax disclosures to enable financial statements users better assess how an entity’s operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2017-04 will have on its condensed consolidated financial statement presentation or disclosures. The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the consolidated financial position, statements of operations and cash flows. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of estimated useful life of the assets | Items Useful life Motor vehicles 3 - 5 years Office equipment and fixtures 2 - 5 years Production equipment, including: Equipment 10 years Utilities and Facilities 20 years Leasehold improvement Lesser of useful life and lease term |
Schedule of information about contract costs, net and contract liabilities from contracts with customers | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Contract costs, net ¥ 49,572,685 ¥ 37,323,824 $ 5,256,951 Contract liabilities ¥ 2,748,365 ¥ 4,888,749 $ 688,566 |
Schedule of basic and diluted earnings (loss) per share | For the six months ended December 31, 2022 2023 2023 RMB RMB US Dollars (Unaudited) (Unaudited) (Unaudited) Numerator: Net loss attributable to Recon Technology, Ltd ¥ (29,876,418) ¥ (22,554,022) $ (3,176,668) Denominator: Weighted-average number of ordinary shares outstanding – basic* 1,932,544 2,728,056 2,728,056 Class A Ordinary Shares* 1,704,766 2,333,612 2,333,612 Class B Ordinary Shares (used for EPS calculation) ** 227,778 394,444 394,444 Potentially dilutive shares from outstanding options/warrants/convertible notes — — — Weighted-average number of ordinary shares outstanding – diluted* 1,932,544 2,728,056 2,728,056 Earnings (loss) per share – basic* ¥ (15.46) ¥ (8.27) $ (1.16) Earnings (loss) per share – diluted* ¥ (15.46) ¥ (8.27) $ (1.16) * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. ** The weighted average number of Class B Ordinary Shares outstanding and number used for EPS calculation has been retrospectively adjusted and converted by a ratio of 1/18 to reflect the actual dividend rate of Class B Ordinary Share after the 2024 Reverse Split. |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of accounts receivable, net | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Third Parties RMB (Unaudited) (Unaudited) Trade accounts receivable ¥ 27,606,257 ¥ 31,553,107 $ 4,444,162 Allowance for credit losses (152,842) (739,222) (104,117) Total third-parties, net ¥ 27,453,415 ¥ 30,813,885 $ 4,340,045 June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Third Parties- long-term RMB (Unaudited) (Unaudited) Trade accounts receivable ¥ 842,607 ¥ 1,307,791 $ 184,199 Allowance for credit losses (842,607) (1,307,791) (184,199) Total third-parties, net ¥ — ¥ — $ — |
Schedule of movement of allowance for doubtful accounts | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Beginning balance ¥ 9,612,470 ¥ 995,449 $ 140,206 Charge to (reversal of) credit losses (8,767,356) 1,051,564 148,110 Foreign currency translation adjustments 150,335 — — Ending balance ¥ 995,449 ¥ 2,047,013 $ 288,316 |
OTHER RECEIVABLES, NET (Tables)
OTHER RECEIVABLES, NET (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
OTHER RECEIVABLES, NET | |
Schedule of other receivables, net | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Third Party RMB (Unaudited) (Unaudited) Business advances to officers and staffs (A) ¥ 854,162 ¥ 1,849,761 $ 260,533 Deposits for projects 1,247,992 1,224,966 172,533 VAT recoverable 690,053 577,545 81,346 Others 1,392,126 1,134,950 159,854 Allowance for credit losses (1,994,960) (602,444) (84,852) Subtotal 2,189,373 4,184,778 589,414 Less: Long term portion (B) (3,640) — — Other receivable - current portion ¥ 2,185,733 ¥ 4,184,778 $ 589,414 (A) Business advances to officers and staffs represent advances for business travel and sundry expenses related to oilfield or on-site installation and inspection of products through customer approval and acceptance. (B) Long-term portion are mainly tender deposits for large-scale projects or rental contracts. These funds may not be collected back until projects are finished or contracts are completed. |
Schedule of movement of allowance for credit losses | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Beginning balance ¥ 619,444 ¥ 1,994,960 $ 280,984 Charge to (reversal of) allowance 1,375,516 (1,392,516) (196,132) Less: written off — — — Ending balance ¥ 1,994,960 ¥ 602,444 $ 84,852 |
LOANS TO THIRD PARTIES (Tables)
LOANS TO THIRD PARTIES (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
LOANS TO THIRD PARTIES | |
Schedule of loans to third parties | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Working fund to third party companies ¥ 123,055,874 ¥ 97,874,144 $ 13,785,285 Less: Long term portion — (18,500,000) (2,605,671) Loans to third parties ¥ 123,055,874 ¥ 79,374,144 $ 11,179,614 |
CONTRACT COSTS, NET (Tables)
CONTRACT COSTS, NET (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
CONTRACT COSTS, NET | |
Schedule of contract costs, net | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Third Party RMB (Unaudited) (Unaudited) Contract costs ¥ 52,158,840 ¥ 41,886,747 $ 5,899,625 Allowance for credit losses (2,586,155) (4,562,923) (642,674) Total contract costs, net ¥ 49,572,685 ¥ 37,323,824 $ 5,256,951 |
Schedule of movement of allowance for credit losses of contract costs | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Beginning balance ¥ 4,063,482 ¥ 2,586,155 $ 364,252 Reversal of allowance (1,720,095) 1,939,135 273,122 Charge to cost of sales 242,768 37,633 5,300 Ending balance ¥ 2,586,155 ¥ 4,562,923 $ 642,674 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Motor vehicles ¥ 5,176,175 ¥ 3,699,101 $ 521,007 Office equipment and fixtures 1,440,819 1,401,599 197,411 Production equipment 31,115,843 31,231,574 4,398,875 Leasehold improvement 2,260,000 2,260,000 318,314 Total cost 39,992,837 38,592,274 5,435,608 Less: accumulated depreciation (14,297,511) (14,157,788) (1,994,083) Less: accumulated impairment (942,462) (942,462) (132,743) Property and equipment, net ¥ 24,752,864 ¥ 23,492,024 $ 3,308,782 |
BUSINESS ACQUISITION AND INVE_2
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |
Summary of fair values of the identifiable assets and liabilities | RMB US Dollars Cash ¥ 471,843 $ 66,458 Accounts receivable, net 831,049 117,051 Other receivables, net 144,285 20,322 Contract costs, net 75,250 10,599 Prepaid expenses 91,132 12,836 Property and equipment, net 118,130 16,638 Intercompany receivables* 6,850,000 964,802 Intangible assets- customer relationship 7,000,000 985,929 Goodwill 6,996,895 985,492 Accounts payable (1,032,078) (145,365) Other payables (1,273,182) (179,324) Other payable- related parties (479,959) (67,601) Deferred revenue (39,786) (5,604) Accrued payroll and employees’ welfare (1,629,519) (229,513) Taxes payable (64,253) (9,050) Deferred tax liability (1,050,000) (147,889) Total ¥ 17,009,807 $ 2,395,781 Cash considerations — — Deemed equity consideration to acquire 8% equity interest in FGS 1,689,807 238,004 Fair value of previously held equity interest 30,530,000 4,300,061 Non-controlling interest 34,790,000 4,900,069 Capital contribution receivable due from non-controlling Interest (50,000,000) (7,042,353) Total ¥ 17,009,807 $ 2,395,781 * |
Summary of fair value of goodwill acquired and the carrying value, customer relationship, and its estimated useful lives | The identifiable goodwill acquired and the carrying value as of December 31, 2023 is as follows: Fair Value RMB US Dollars (Unaudited) (Unaudited) Goodwill ¥ 6,996,895 $ 985,492 Less: impairment (6,996,895) (985,492) The carrying value of goodwill as of December 31, 2023 ¥ — $ — The fair value of identified intangible assets, which is customer relationship, and its estimated useful lives as of December 31, 2023 is as follows: Average Useful Life Fair Value (in Years) RMB US Dollars (Unaudited) (Unaudited) Intangible assets - customer relationship ¥ 7,000,000 $ 985,929 10 Less: accumulated amortization (1,750,000) (246,482) Less: impairment (5,250,000) (739,447) Intangible assets - customer relationship, net ¥ — $ — |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
LEASES | |
Schedule of operating lease related assets and liabilities recorded on the balance sheets | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Rights of use lease assets - current ¥ — ¥ 1,714,263 $ 241,449 Less: impairment — (834,975) (117,604) Rights of use lease assets, net - current — 879,288 123,845 Rights of use lease assets - non - current 3,489,875 16,204,906 2,282,413 Less: impairment (834,975) — — Rights of use lease assets, net - non - current 2,654,900 16,204,906 2,282,413 Operating lease liabilities – current ¥ 3,066,146 ¥ 722,857 $ 101,812 Operating lease liabilities – non-current 25,144 341,366 48,080 Total operating lease liabilities ¥ 3,091,290 ¥ 1,064,223 $ 149,892 |
Schedule of weighted average remaining lease terms and discount rates for all of operating leases | June 30, December 31, 2023 2023 RMB RMB (Unaudited) Remaining lease term and discount rate: Weighted average remaining lease term (years) 23.90 23.50 Weighted average discount rate 5.0 % 5.0 % |
Schedule of maturities of lease liabilities | RMB US Dollars Twelve months ending June 30, (Unaudited) (Unaudited) 2024 ¥ 1,045,399 $ 147,241 2025 26,400 3,718 Total lease payments 1,071,799 150,959 Less: imputed interest (7,576) (1,067) Present value of lease liabilities 1,064,223 149,892 Less: operating lease liabilities – current 722,857 101,812 Operating lease liabilities – non-current ¥ 341,366 $ 48,080 |
OTHER PAYABLES (Tables)
OTHER PAYABLES (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
OTHER PAYABLES | |
Schedule of other payables third parties | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Third Parties RMB (Unaudited) (Unaudited) Professional service fees ¥ 2,246,101 ¥ 304,474 $ 42,884 Distributors and employees 3,073,289 712,173 100,307 Accrued expenses 200,218 193,274 27,222 Others 299,402 478,245 67,360 Total ¥ 5,819,010 ¥ 1,688,166 $ 237,773 |
Schedule Of other payables related party | June 30, December 31, December 31, 2022 2023 2023 RMB US Dollars Related Parties RMB (Unaudited) (Unaudited) Expenses paid by the major shareholders ¥ 1,796,309 ¥ 1,663,858 $ 234,350 Due to family members of the owners of BHD and FGS 545,159 545,159 76,784 Due to management staff for costs incurred on behalf of the Company 250,927 — — Total ¥ 2,592,395 ¥ 2,209,017 $ 311,134 |
TAXES PAYABLE (Tables)
TAXES PAYABLE (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
TAXES PAYABLE | |
Schedule of taxes payable | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) VAT payable ¥ 699,601 ¥ 720,872 $ 101,533 Income tax payable 440,030 536,071 75,504 Other taxes payable 23,375 445,955 62,811 Total taxes payable ¥ 1,163,006 ¥ 1,702,898 $ 239,848 |
BANK LOANS (Tables)
BANK LOANS (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
BANK LOANS | |
Schedule of short-term bank loans | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Bank of Kunlun (1) ¥ 950,000 ¥ 827,000 $ 116,481 Industry and Commercial Bank of China (“ICBC”) (2) 10,000,000 10,007,639 1,409,546 China Construction Bank (3) 1,501,481 1,501,646 211,502 Total short-term bank loans ¥ 12,451,481 ¥ 12,336,285 $ 1,737,529 (1) On August 31, 2022, the Company entered into a loan agreement with Bank of Kunlun to borrow up to ¥ 2,900,000 ( $408,456 ) as working capital for eighteen months , with a maturity date of February 29, 2024. The loan has a fixed interest rate of 6.0% per annum. The Company made a withdrawal in an amount of ¥ 1,000,000 ( $140,847 ) on August 31, 2022. During the year ended June 30, 2023, the Company repaid ¥ 50,000 ( $7,042 ). During the six months ended December 31, 2023, the Company repaid ¥ 123,000 ( $17,324 ). The loan is guaranteed by the non-controlling shareholder of Gan Su BHD. The Company also pledged the accounts receivable from the contracts the Company entered into with CNPC as collateral for this loan, and the total value of the contracts are approximately ¥6.5 million (approximately $1.0 million). From December 31, 2024, to the date of this report, the Company repaid ¥8,269 ( $1,165 ). (2) On June 6, 2023, the Company entered into a revolving loan facility with ICBC to borrow up to ¥ 10,000,000 ( $1,408,471 ) as working capital for one year , with a maturity date of June 7, 2024. The loan has a fixed interest rate of 2.5% per annum. The Company made the first withdrawal in an amount of ¥5,000,000 ( $704,235 ) on June 9, 2023, with a maturity date of June 7, 2024. Company made the second withdrawal in an amount of ¥5,000,000 ( $704,235 ) on June 13, 2023, with a maturity date of June 7, 2024. These loans are pledged by the self-owned housing property of one of the founders of the Company with carrying value of approximately ¥17.6 million (approximately $2.4 million) as collateral for these loans. As the date of this report, the Company has fully repaid the principal of the loan and the interest payable. (3) On August 31, 2022, the Company entered into a revolving loan facility with China Construction Bank to borrow up to ¥1,500,000 ( $211,271 ) as working capital for twelve months, with a maturity date of June 9, 2024. The loan has a fixed interest rate of 3.95% per annum. The loan is guaranteed by the non-controlling shareholder of FGS. As the date of this report, the Company has fully repaid the principal of the loan and the interest payable. |
SHORT-TERM BORROWINGS DUE TO _2
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES | |
Schedule of short-term borrowings due to related parties | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars Short-term borrowings due to related parties: RMB (Unaudited) (Unaudited) Short-term borrowing from a Founder, 3.65% annual interest, due on December 26, 2023 ¥ 10,004,055 ¥ — $ — Short-term borrowing from a Founder, 3.40% annual interest, due on June 4, 2024 * 4,993,950 4,994,892 703,516 Short-term borrowing from a Founder, 3.40% annual interest, due on June 16, 2024 * 5,020,217 5,021,164 707,216 Short-term borrowing from a Founder, 3.45% annual interest, due on December 28, 2024 — 10,003,833 1,409,010 Total short-term borrowings due to related parties ¥ 20,018,222 ¥ 20,019,889 $ 2,819,742 * On May 29, 2024, the Company entered into a three-year supplemental agreement with the founder, changing the term of the loan from May 29, 2024 to April 29, 2027 and the annual interest rate to 3.75% . |
CLASS A ORDINARY SHARES (Tables
CLASS A ORDINARY SHARES (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
CLASS A ORDINARY SHARES | |
Summary of pre-funded warrants activities | Weighted Average Average Remaining Pre-Funded Exercise Price Period Pre-Funded Warrants Warrants* Per Share* (Years) Outstanding as of June 30, 2022 — $ — — Issued 65,278 0.18 5.50 Forfeited — — — Exercised — — — Expired — — — Outstanding as of June 30, 2023 65,278 $ 0.18 5.22 Issued — — — Forfeited — — — Exercised (65,278) 0.18 — Expired — — — Outstanding as of December 31, 2023 — $ — — * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. |
ORDINARY SHARES PURCHASE WARR_2
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |
Summary of fair value measurement inputs under binomial and black-scholes model | December 31, June 30, Input 2023 2023 Number of warrants* 47,963 47,963 441,710 Share price* $ 0.23 $ 0.34 0.34 Risk-free interest rate 4.02 % 4.41 % 4.41 % Volatility 119 % 127 % 127 % Exercise price* $ 112.32 $ 112.32 14.40 Warrant life 2.96 years 3.47 years 3.47 years * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. December 31, June 30, Input 2023 2023 Number of warrants* — 555,694 Share price* $ — $ 0.34 Risk-free interest rate — % 3.59 % Volatility — % 110 % Exercise price* $ — $ 14.40 Warrant life — 5.22 years * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. |
Summary of liabilities measured at fair value on recurring basis | Quoted Prices In Significant Other Significant Other June 30, Active Markets Observable Inputs Unobservable Inputs Description 2023 (Level 1) (Level 2) (Level 3) Liabilities: Warrant liability - non-current $ 4,360,000 $ — $ — $ 4,360,000 Quoted Prices In Significant Other Significant Other December 31, Active Markets Observable Inputs Unobservable Inputs Description 2023 (Level 1) (Level 2) (Level 3) Liabilities: Warrant liability - non-current $ 140,000 $ — $ — $ 140,000 |
Summary of company warrants activities and status of warrants | Weighted Average Average Remaining Exercise Price Period Warrants Warrants* Per Share* (Years) Outstanding as of June 30, 2022 489,673 $ 112.32 4.46 Issued 555,694 14.40 5.50 Forfeited — — — Exercised — — — Expired — — — Outstanding as of June 30, 2023 1,045,367 $ 18.90 4.40 Issued — — — Redeemed (997,404) 14.40 — Forfeited — — — Exercised — — — Expired — — — Outstanding as of December 31, 2023 47,963 $ 112.32 2.96 * Retrospectively restated for the 1 |
Schedule of estimated liability | December 31, Description 2023 Warrant liability -current * $ 1,200,000 * On December 14, 2023, company bought back an aggregate of 17,953,269 (997,404 warrants post 2024 Reverse Split) warrants from the Sellers. Warrant Purchase Agreement stipulated that “The Company has agreed that if the Company repurchases any other warrants prior to June 14, 2024 at a higher purchase price per Warrant than the purchase price per Warrant stated in the Warrant Purchase Agreement, then the Company shall pay Sellers the difference between the purchase prices per Warrant. Similarly, if the Company enters into or announces any Fundamental Transactions as defined in the Warrants, and the Black-Scholes Value is a purchase price per Warrant that is higher than the purchase price per Warrant stated in the Warrant Purchase Agreement, then the Company shall pay Sellers the difference between the Black-Scholes Value purchase price per Warrant and the stated purchase price per Warrant in the Warrant Purchase Agreement”. The Company accrued an estimated liability of $1,200,000 based on the potential for future significant transaction compensation in contracts to repurchase investor warrants during the six months ended December 31, 2023. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
SHARE-BASED COMPENSATION | |
Summary of share options activity | Weighted Average Exercise Price Share Options Shares* Per Share* Outstanding as of June 30, 2022 4,444 $ 148.50 Granted — — Forfeited — — Exercised — — Expired — — Outstanding as of June 30, 2023 4,444 $ 148.50 Granted — — Forfeited — — Exercised — — Expired — — Outstanding as of December 31, 2023 4,444 $ 148.50 *Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. |
Summary of status of options outstanding and exercisable | The following is a summary of the status of options outstanding and exercisable as of December 31, 2023: Outstanding Options Exercisable Options Average Average Remaining Remaining Average Exercise Contractual Average Exercise Contractual Price* Number* life (Years) Price* Number* life (Years) $ 148.50 4,444 1.08 $ 148.50 4,444 1.08 4,444 4,444 *Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. |
Summary of restricted shares granted | Restricted share grants Shares* Non-vested as of June 30, 2022 120,407 Granted 277,778 Vested (226,247) Non-vested as of June 30, 2023 171,938 Granted — Vested (111,111) Non-vested as of December 31, 2023 60,827 *Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. |
Summary of outstanding restricted shares | Outstanding Restricted Shares Average Remaining Fair Value per Amortization Share* Number* Period (Years) $ 18.72 60,827 1.16 60,827 *Retrospectively restated for the 1 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
INCOME TAX | |
Schedule of income (loss) before provision for income taxes | For the six months ended December 31, 2022 2023 2023 RMB RMB US Dollars (Unaudited) (Unaudited) (Unaudited) Outside China areas ¥ (32,395,145) ¥ (14,621,317) $ (2,059,369) China 2,531,634 (8,390,493) (1,181,776) Total ¥ (29,863,511) ¥ (23,011,810) $ (3,241,145) |
Schedule of deferred tax assets, net | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Deferred tax assets: Allowance for credit losses ¥ 1,019,592 ¥ 1,285,544 $ 181,065 Impairment for inventory 90,322 35,646 5,021 Net operating loss carryforwards 23,290,731 24,263,351 3,417,422 Subtotal 24,400,645 25,584,541 3,603,507 Less: Valuation allowance (24,107,246) (25,304,762) (3,564,101) Total deferred tax assets, net ¥ 293,399 ¥ 279,779 $ 39,406 Deferred tax liabilities: Accelerated amortization of intangible assets (146,511) (132,891) (18,717) Gain on the previously held equity method investment (146,888) (146,888) (20,689) Recognition of customer relationship arising from business combinations — — — Total deferred tax liabilities (293,399) (279,779) (39,406) Deferred tax assets, net ¥ — ¥ — $ — |
Schedule of NOL expiration | RMB US Dollars Twelve months ending December 31, (Unaudited) (Unaudited) 2024 ¥ 10,484,902 $ 1,476,768 2025 19,617,124 2,763,014 2026 32,533,742 4,582,282 2027 27,137,905 3,822,294 2028 34,868,363 4,911,106 Total ¥ 124,642,036 $ 17,555,464 |
Schedule of company's income tax expense (benefit) | For the six months ended December 31, 2022 2023 2023 RMB RMB US Dollars (Unaudited) (Unaudited) (Unaudited) Current income tax provision ¥ 9,180 ¥ 96,041 $ 13,527 Deferred income tax provision — — — Expense for income tax ¥ 9,180 ¥ 96,041 $ 13,527 |
NON-CONTROLLING INTEREST (Table
NON-CONTROLLING INTEREST (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
NON-CONTROLLING INTEREST. | |
Schedule of non-controlling interest | As of June 30, 2023 Nanjing Gan Su Qinghai BHD Recon BHD BHD FGS Total Total RMB RMB RMB RMB RMB RMB US Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 4,805,000 ¥ — ¥ — ¥ 6,656,000 $ 917,904 Capital contribution receivable due from non-controlling Interest — — — — (48,870,000) (48,870,000) (6,739,481) Unappropriated retained earnings (deficit) 3,477,494 3,616,001 (6,336,893) (1,561,196) (1,796,762) (2,601,356) (358,742) Accumulated other comprehensive loss (18,850) (11,853) — — — (30,703) (4,234) Valuation increase shared by minority shareholders — — — — 34,790,000 34,790,000 4,797,760 Total non-controlling interests ¥ 5,109,644 ¥ 3,804,148 ¥ (1,531,893) ¥ (1,561,196) (15,876,762) ¥ (10,056,059) $ (1,386,793) As of December 31, 2023 Nanjing Gan Su Qinghai BHD Recon BHD BHD FGS Total Total RMB RMB RMB RMB RMB RMB US Dollars Paid-in capital ¥ 1,651,000 ¥ 200,000 ¥ 4,805,000 ¥ — ¥ — ¥ 6,656,000 $ 937,478 Capital contribution receivable due from non-controlling Interest — — — — (48,870,000) (48,870,000) (6,883,196) Unappropriated retained earnings (deficit) 3,818,698 3,616,001 (6,982,801) (1,569,913) (2,037,170) (3,155,185) (444,398) Accumulated other comprehensive loss (18,850) (11,853) — — — (30,703) (4,324) Valuation increase shared by minority shareholders — — — — 34,790,000 34,790,000 4,900,069 Total non-controlling interests ¥ 5,450,848 ¥ 3,804,148 ¥ (2,177,801) ¥ (1,569,913) ¥ (16,117,170) ¥ (10,609,888) $ (1,494,371) |
COMMITMENTS AND CONTINGENCY (Ta
COMMITMENTS AND CONTINGENCY (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCY | |
Schedule of total future minimum purchase commitment | RMB US Dollars Twelve months ending December 31, (Unaudited) (Unaudited) 2024 ¥ 23,357,995 $ 3,289,905 2025 300,000 42,254 Total minimum payments required ¥ 23,657,995 $ 3,332,159 |
Schedule of non-cancellable operating lease agreements | RMB US Dollars Twelve months ending December 31, (Unaudited) (Unaudited) 2024 ¥ 692,500 $ 97,537 Total ¥ 692,500 $ 97,537 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
Schedule of leases from related parties | Monthly Rent Monthly Rent Lessee Lessor Rent Period RMB US Dollars Nanjing Recon One of the founders April 1, 2022 - March 31, 2024 ¥ 40,000 $ 5,634 BHD One of the founders January 1, 2023 - Dec 31, 2023 31,667 4,460 BHD One of the founders January 1, 2023 - Dec 31, 2023 22,500 3,169 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
VARIABLE INTEREST ENTITIES | |
Summary of information regarding consolidated VIEs | June 30, 2023 December 31, 2023 December 31, 2023 RMB RMB US Dollars ASSETS Current Assets Cash ¥ 37,661,118 ¥ 23,902,252 $ 3,366,562 Restricted cash 731,545 3,904 550 Short-term investments — 18,000,000 2,535,247 Notes receivable 3,742,390 12,532,717 1,765,196 Accounts receivable, net 27,453,415 30,813,885 4,340,045 Inventories, net 6,330,701 1,855,535 261,347 Other receivables, net 11,618,275 4,155,097 585,233 Loans to third parties 37,770,188 26,841,513 3,780,548 Purchase advances, net 1,592,761 1,996,413 281,189 Contract costs, net 49,572,685 32,373,824 4,559,758 Prepaid expenses 121,329 193,859 27,303 Operating lease right-of-use assets, net - current — 879,288 123,845 Total current assets 176,594,407 153,548,287 21,626,823 Property and equipment, net 24,752,864 23,492,024 3,308,782 Long-term other receivables, net 3,640 — — Long-term loan to third parties — 18,500,000 2,605,671 Operating lease right-of-use assets, net - non-current 2,654,900 1,219,978 171,830 Total Assets ¥ 204,005,811 ¥ 196,760,289 $ 27,713,106 LIABILITIES Short-term bank loans ¥ 12,451,481 ¥ 12,336,285 $ 1,737,529 Accounts payable 10,791,721 12,062,861 1,699,018 Other payables 3,904,135 1,340,788 188,846 Other payable- related parties 1,356,915 2,162,184 304,537 Contract liabilities 2,748,361 4,888,749 688,566 Accrued payroll and employees’ welfare 1,048,061 1,077,495 151,762 Intercompany payables* 263,935,922 259,617,001 36,566,290 Taxes payable 1,163,237 1,265,868 178,294 Short-term borrowings - related parties 20,018,222 20,019,889 2,819,742 Operating lease liabilities - current 3,066,146 1,038,354 146,248 Total current liabilities 320,484,201 315,809,474 44,480,832 Operating lease liabilities - non-current 25,144 25,869 3,644 Total Liabilities ¥ 320,509,345 ¥ 315,835,343 $ 44,484,476 * |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
SEGMENT REPORTING | |
Summary of segment reporting information | For the six months ended December 31, 2022 2023 2023 RMB RMB US Dollars (Unaudited) (Unaudited) (Unaudited) Automation product and software ¥ 19,055,227 ¥ 17,552,892 $ 2,472,273 Equipment, accessories and others 9,730,859 17,867,404 2,516,571 Oilfield environmental protection 12,789,684 8,053,696 1,134,339 Platform Outsourcing Services 3,983,821 1,782,680 251,085 Total revenue ¥ 45,559,591 ¥ 45,256,672 $ 6,374,268 For the six months ended December 31, 2023 Automation Equipment, Oilfield Platform product and accessories environmental outsourcing software and others protection services Total RMB RMB RMB RMB RMB (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue ¥ 17,552,892 ¥ 17,867,404 ¥ 8,053,696 ¥ 1,782,680 ¥ 45,256,672 Cost of revenue and related tax 14,040,976 12,778,042 6,020,271 311,641 33,150,930 Gross profit ¥ 3,511,916 ¥ 5,089,362 ¥ 2,033,425 ¥ 1,471,039 ¥ 12,105,742 Depreciation and amortization ¥ 253,397 ¥ 143,927 ¥ 1,029,646 ¥ — ¥ 1,426,970 Total capital expenditures ¥ 83,253 ¥ 116,191 ¥ — ¥ — ¥ 199,444 Timing of revenue recognition Goods transferred at a point in time ¥ 14,368,994 ¥ 17,867,404 ¥ 8,053,696 ¥ 166,899 ¥ 40,456,993 Services rendered over time 3,183,898 — — 1,615,781 4,799,679 Total revenue ¥ 17,552,892 ¥ 17,867,404 ¥ 8,053,696 ¥ 1,782,680 ¥ 45,256,672 For the six months ended December 31, 2022 Automation Equipment, Oilfield Platform product and accessories environmental outsourcing software and others protection services Total RMB RMB RMB RMB RMB (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenue ¥ 19,055,227 ¥ 9,730,859 ¥ 12,789,684 ¥ 3,983,821 ¥ 45,559,591 Cost of revenue and related tax 14,955,185 6,254,015 9,988,100 1,230,472 32,427,772 Gross profit ¥ 4,100,042 ¥ 3,476,844 ¥ 2,801,584 ¥ 2,753,349 ¥ 13,131,819 Depreciation and amortization ¥ 524,970 ¥ 358,954 ¥ 1,038,342 ¥ 30,359 ¥ 1,952,625 Total capital expenditures ¥ 2,303,311 ¥ 3,008 ¥ — ¥ 14,953 ¥ 2,321,272 Timing of revenue recognition Goods transferred at a point in time ¥ 19,055,227 ¥ 9,730,859 ¥ 10,282,687 ¥ 3,983,821 ¥ 43,052,594 Services rendered over time — — 2,506,997 — 2,506,997 Total revenue ¥ 19,055,227 ¥ 9,730,859 ¥ 12,789,684 ¥ 3,983,821 ¥ 45,559,591 June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) Total assets: Automation product and software ¥ 167,009,315 ¥ 157,269,367 $ 22,150,927 Equipment, accessories and others 170,809,759 158,131,921 22,272,414 Oilfield environmental protection 107,393,609 94,285,444 13,279,827 Platform outsourcing services 86,611,894 73,569,497 10,362,047 Total assets ¥ 531,824,577 ¥ 483,256,229 $ 68,065,215 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 6 Months Ended |
Dec. 31, 2023 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
Schedule of parent company balance sheets | June 30, December 31, December 31, 2023 2023 2023 RMB US Dollars RMB (Unaudited) (Unaudited) ASSETS Cash ¥ 236,146,589 ¥ 34,657,271 $ 4,881,375 Short-term investments — 115,950,650 16,331,307 Due from intercompany* 291,525,426 356,442,080 50,203,817 Other current assets 80,036,017 52,568,829 7,404,165 Total Current Assets 607,708,032 559,618,830 78,820,664 Investment in subsidiaries and VIEs (122,920,490) (122,676,150) (17,278,574) Total Assets ¥ 484,787,542 ¥ 436,942,680 $ 61,542,090 LIABILITIES AND SHAREHOLDERS’ EQUITY Other current liabilities 3,964,912 1,448,570 204,027 Warrant liability - current 8,519,880 1,200,000 Total Current Liabilities 3,964,912 9,968,450 1,404,027 Warrant liability - non-current 31,615,668 993,986 140,000 Total Liabilities ¥ 35,580,580 ¥ 10,962,436 $ 1,544,027 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY Class A ordinary shares, $0.0001 U.S. dollar par value, 500,000,000 shares authorized; 2,306,295 shares and 2,371,573 shares issued and outstanding as of June 30, 2023 and December 31, 2023, respectively** 26,932 27,791 3,914 Class B ordinary shares, $0.0001 U.S. dollar par value, 80,000,000 shares authorized; 7,100,000 shares and 7,100,000 shares issued and outstanding as of June 30, 2023 and December 31, 2023, respectively** 4,693 4,693 661 Additional paid-in capital** 580,340,061 584,275,905 82,293,540 Accumulated deficit (166,291,897) (188,845,919) (26,598,391) Accumulated other comprehensive income 35,127,173 30,517,774 4,298,339 Total Shareholders’ Equity 449,206,962 425,980,244 59,998,063 Total Liabilities and Shareholders’ Equity ¥ 484,787,542 ¥ 436,942,680 $ 61,542,090 * Due from intercompany are eliminated upon consolidation. ** Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024 and change in capital structure on March 29, 2024. |
Schedule of parent company statements of operations and comprehensive income (loss) | For the six months ended December 31, 2022 2023 2023 RMB RMB U.S. Dollars (Unaudited) (Unaudited) (Unaudited) Revenues ¥ — ¥ — $ — Cost of revenues — — — Gross profit — — — General and administrative expenses 16,054,522 11,698,953 1,647,763 Provision for credit losses — — — Loss from operations ¥ (16,054,522) ¥ (11,698,953) $ (1,647,763) Gain (loss) in fair value changes of warrants liability (20,097,665) (1,941,195) (273,412) Other income (expenses) 3,716,168 (960,280) (135,253) Equity in earnings of subsidiaries, VIEs and VIEs’ subsidiaries 2,559,601 (7,954,486) (1,120,366) Net loss ¥ (29,876,418) ¥ (22,554,914) $ (3,176,794) FOREIGN CURRENCY TRANSLATION ADJUSTMENTS Foreign currency translation adjustments related to investments in subsidiaries, VIEs and VIEs’ subsidiaries 9,663,701 (4,609,399) (649,220) Comprehensive loss attributable to the company ¥ (20,212,717) ¥ (27,164,313) $ (3,826,014) |
Schedule of parent company statements of cash flows | For the six months ended December 31, 2022 2023 2023 RMB RMB U.S. Dollars (Unaudited) (Unaudited) (Unaudited) Cash flows from operating activities: Net loss ¥ (29,876,418) ¥ (22,554,914) $ (3,176,793) Adjustments to reconcile net income (loss) to net cash used in operating activities: Loss (gain) in fair value changes of warrants liability 20,097,665 10,461,075 1,473,412 Restricted shares issued for management and employees 1,796,417 2,866,560 403,747 Accrued interest income from loans to third parties — (3,088,457) (435,000) Accrued interest income from short-term investment — (2,352,250) (331,307) Restricted shares issued for services 4,304,857 1,070,144 150,727 Equity in earnings of subsidiaries and VIEs (2,559,601) 7,954,486 1,120,366 Other current assets (14,166,457) 7,289,074 1,026,645 Other current liabilities (1,080,736) (2,516,342) (354,421) Net cash used in operating activities (21,484,273) (870,624) (122,624) Cash flows from investing activities: Repayments from loans to third parties 20,694,900 24,849,650 3,500,000 Payments made for loans to third parties (48,288,100) — — Payments for short-term investments — (113,598,400) (16,000,000) Due from intercompany, VIEs and VIEs’ subsidiaries (80,522,546) (64,916,652) (9,143,319) Net cash used in investing activities (108,115,746) (153,665,402) (21,643,319) Net cash used in financing activity: Redemption of warrants — (31,866,604) (4,488,317) Net cash provided by financing activity — (31,866,604) (4,488,317) Effect of exchange rate fluctuation on cash 16,278,998 (15,086,688) (2,124,916) Net decrease in cash (113,321,021) (201,489,318) (28,379,176) CASH, beginning of period 296,838,959 236,146,589 33,260,551 CASH, end of period ¥ 183,517,938 ¥ 34,657,271 $ 4,881,375 |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details) | 6 Months Ended | ||||||||||
May 19, 2021 | Apr. 26, 2021 | Oct. 23, 2018 | Sep. 25, 2017 | Dec. 31, 2023 CNY (¥) | Jun. 28, 2024 USD ($) | Feb. 22, 2024 USD ($) | Dec. 31, 2023 USD ($) | Oct. 10, 2023 USD ($) | Oct. 16, 2017 CNY (¥) | May 23, 2017 CNY (¥) | |
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Variable interest entity, terms of arrangements | the Company has the right to absorb 90% of net interest or 100% of net loss of those Domestic Companies for accounting purposes | ||||||||||
Individuals | |||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Remaining paid in capital | ¥ 12,500,000 | $ 1,812,041 | |||||||||
Beijing Bhd Petroleum Technology Co Ltd | |||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Ownership percentage | 49% | 49% | |||||||||
Qing Hai BHD New Energy Technology Co., Ltd | |||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Ownership percentage | 10% | ||||||||||
Beijing Bhd Petroleum Technology Co Ltd | |||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Paid in capital | ¥ | ¥ 200,000 | ||||||||||
Remaining paid in capital | 33,300,000 | $ 4,827,276 | |||||||||
Gan Su BHD Environmental Technology Co., Ltd | |||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Capital | ¥ | ¥ 50,000,000 | ||||||||||
Paid in capital | ¥ 27,495,000 | $ 3,872,590 | |||||||||
Gan Su BHD Environmental Technology Co., Ltd | Beijing Bhd Petroleum Technology Co Ltd | |||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Ownership interest held by parent | 51% | 51% | |||||||||
Percentage of equity interest transferred | 3.60% | 15.40% | 2% | ||||||||
Gan Su BHD Environmental Technology Co., Ltd | Nanjing Recon | |||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Percentage of equity interest transferred | 15.40% | ||||||||||
Ownership interest held by noncontrolling owner | 19% | ||||||||||
Gan Su BHD Environmental Technology Co., Ltd | Individuals | |||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Ownership interest held by parent | 51% | ||||||||||
Qing Hai BHD New Energy Technology Co., Ltd | |||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Capital | ¥ | ¥ 50,000,000 | ||||||||||
Paid in capital | ¥ 4,200,000 | $ 591,558 | |||||||||
Equity interest of ownership percentage | 55% | 75% | |||||||||
Shandong Recon Renewable Resources Technology Co., Ltd | Recon-IN | |||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Capital | $ 30,000,000 | ||||||||||
Paid in capital | $ 10,000,000 | ||||||||||
Guangxi Recon Renewable Resources Technology Co., Ltd | Recon-IN | Subsequent event | |||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||
Capital | $ 30,000,000 | ||||||||||
Paid in capital | $ 1,000,000 | $ 1,000,000 |
ORGANIZATION AND NATURE OF OP_3
ORGANIZATION AND NATURE OF OPERATIONS - Energy consumption market opened to private and foreign companies (Details) - Future Gas Station (Beijing) Technology, Ltd | Jan. 13, 2021 CNY (¥) | Jan. 13, 2021 USD ($) | Jun. 30, 2019 CNY (¥) shares | Aug. 21, 2018 CNY (¥) shares | Feb. 04, 2021 | Dec. 15, 2017 |
ORGANIZATION AND NATURE OF OPERATIONS | ||||||
Aggregate amount invested | ¥ 30,530,000 | $ 4,300,061 | ||||
Domestic Companies | ||||||
ORGANIZATION AND NATURE OF OPERATIONS | ||||||
Equity interest acquired | 8% | |||||
Ownership interest held | 51% | |||||
Domestic Companies | Investment Agreement | ||||||
ORGANIZATION AND NATURE OF OPERATIONS | ||||||
Equity interest acquired | 43% | 43% | ||||
Investment in FGS agreed | ¥ | ¥ 10,000,000 | |||||
Number of shares issued | shares | 487,057 | 487,057 | ||||
Aggregate amount invested | ¥ | ¥ 35,116,707 | |||||
Domestic Companies | Investment Agreement | Post 2024 Reverse Stock Split | ||||||
ORGANIZATION AND NATURE OF OPERATIONS | ||||||
Number of shares issued | shares | 27,059 | 27,059 | ||||
Domestic Companies | Fourth supplemental agreement | ||||||
ORGANIZATION AND NATURE OF OPERATIONS | ||||||
Equity interest acquired | 8% | 8% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) | 6 Months Ended | 12 Months Ended | |||||
Dec. 14, 2023 shares | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Jun. 30, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
SIGNIFICANT ACCOUNTING POLICIES | |||||||
Foreign currency transactions, description | The translation has been made at the rate of ¥7.0999 = US$1.00, the approximate exchange rate prevailing on December 31, 2023. | The translation has been made at the rate of ¥7.0999 = US$1.00, the approximate exchange rate prevailing on December 31, 2023. | |||||
Short-term investments | ¥ 134,000,000 | ¥ 184,184,455 | $ 18,866,554 | ||||
Accrued interest income from short-term investment | 2,400,000 | $ 331,307 | 2,900,000 | ||||
Allowance for credit losses | 3,100,000 | 400,000 | |||||
Contract assets and contract liabilities from contracts with customers | |||||||
Contract costs | 37,323,824 | 49,572,685 | 5,256,951 | ||||
Contract liabilities | 4,888,749 | ¥ 2,748,365 | 688,566 | ||||
Shipping and handling expenses | 4,547,115 | 640,448 | ¥ 4,021,899 | ||||
Impairment loss | ¥ | 0 | 0 | |||||
Accumulated impairment | 834,975 | 117,604 | $ 834,975 | ||||
Revenue recognized | 1,689,759 | 237,998 | 1,901,277 | ||||
Number of warrants repurchased | 17,953,269 | ||||||
Estimated warrant liability | $ | $ 1,200,000 | ||||||
Post 2024 Reverse Stock Split | |||||||
Contract assets and contract liabilities from contracts with customers | |||||||
Number of warrants repurchased | 997,404 | ||||||
Shipping and Handling | |||||||
Contract assets and contract liabilities from contracts with customers | |||||||
Shipping and handling expenses | ¥ 342,878 | $ 48,293 | ¥ 101,550 | ||||
Minimum | |||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||
Property, plant and equipment, useful life | 2 years | 2 years | |||||
Maximum | |||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||
Property, plant and equipment, useful life | 10 years | 10 years | |||||
Motor vehicles | Minimum | |||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||
Property, plant and equipment, useful life | 3 years | 3 years | |||||
Motor vehicles | Maximum | |||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||
Property, plant and equipment, useful life | 5 years | 5 years | |||||
Office equipment and fixtures | Minimum | |||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||
Property, plant and equipment, useful life | 2 years | 2 years | |||||
Office equipment and fixtures | Maximum | |||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||
Property, plant and equipment, useful life | 5 years | 5 years | |||||
Equipment | |||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||
Property, plant and equipment, useful life | 10 years | 10 years | |||||
Utilities and Facilities | |||||||
SIGNIFICANT ACCOUNTING POLICIES | |||||||
Property, plant and equipment, useful life | 20 years | 20 years |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Basic and diluted earnings (loss) per share (Details) | 6 Months Ended | ||||||
May 01, 2024 | Mar. 29, 2024 | Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | |||
Numerator: | |||||||
Net loss attributable to Recon Technology, Ltd | ¥ (22,554,022) | $ (3,176,668) | ¥ (29,876,418) | ||||
Denominator: | |||||||
Weighted-average number of ordinary shares outstanding - basic | [1] | 2,728,056 | 2,728,056 | 1,932,544 | |||
Weighted-average number of ordinary shares outstanding - diluted | 2,728,056 | 2,728,056 | 1,932,544 | ||||
Earnings (loss) per share - basic | (per share) | ¥ (8.27) | $ (1.16) | ¥ (15.46) | [1] | |||
Earnings (loss) per share - diluted | (per share) | ¥ (8.27) | $ (1.16) | ¥ (15.46) | ||||
Reverse stock split | 0.056 | 0.2 | 0.2 | ||||
Class A ordinary shares | |||||||
Denominator: | |||||||
Weighted-average number of ordinary shares outstanding - basic | 2,333,612 | 2,333,612 | 1,704,766 | ||||
Reverse stock split | 0.056 | 0.056 | |||||
Class B ordinary shares | |||||||
Denominator: | |||||||
Weighted-average number of ordinary shares outstanding - basic | 394,444 | 394,444 | 227,778 | ||||
Class B common stock convertible conversion ratio | 0.056 | ||||||
[1] * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024. |
ACCOUNTS RECEIVABLE, NET - Acco
ACCOUNTS RECEIVABLE, NET - Accounts receivable (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
Third Parties | |||
Total third-parties, net | ¥ 30,813,885 | $ 4,340,045 | ¥ 27,453,415 |
Third parties | |||
Third Parties | |||
Trade Accounts receivable | 31,553,107 | 4,444,162 | 27,606,257 |
Allowance for credit losses | (739,222) | (104,117) | (152,842) |
Total third-parties, net | 30,813,885 | 4,340,045 | 27,453,415 |
Third Parties- long-term | |||
Trade Accounts receivable | 1,307,791 | 184,199 | 842,607 |
Allowance for credit losses | (1,307,791) | (184,199) | (842,607) |
Total third-parties, net | ¥ 0 | $ 0 | ¥ 0 |
ACCOUNTS RECEIVABLE, NET - Move
ACCOUNTS RECEIVABLE, NET - Movement of allowance for doubtful accounts (Details) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | |
ACCOUNTS RECEIVABLE, NET | |||
Charge to (reversal of) allowance | ¥ 1,051,564 | ||
Third parties | |||
ACCOUNTS RECEIVABLE, NET | |||
Ending balance | 2,047,013 | $ 288,316 | ¥ 995,449 |
Charge to (reversal of) allowance | 1,051,564 | 148,110 | (8,767,356) |
Foreign currency translation adjustments | 0 | 0 | 150,335 |
Beginning balance | ¥ 995,449 | $ 140,206 | ¥ 9,612,470 |
ACCOUNTS RECEIVABLE, NET - Addi
ACCOUNTS RECEIVABLE, NET - Additional Information (Details) $ in Millions | 6 Months Ended | |||
Jun. 28, 2024 CNY (¥) | Jun. 28, 2024 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
ACCOUNTS RECEIVABLE, NET | ||||
Net recovery of provision for credit losses made for accounts receivable due from third parties | ¥ 4,012,249 | |||
Provision for doubtful accounts of accounts receivable due from third parties | ¥ 1,051,564 | |||
Percentage of not-collection from our customers | 28.6 | 28.6 | ||
Amount of not-collection from our customers | ¥ 8,800,000 | $ 1.2 |
NOTES RECEIVABLE (Details)
NOTES RECEIVABLE (Details) | Jun. 28, 2024 CNY (¥) | Jun. 28, 2024 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
NOTES RECEIVABLE | |||||
Notes receivable | ¥ 12,532,717 | $ 1,765,196 | ¥ 3,742,390 | ||
Subsequent event | |||||
NOTES RECEIVABLE | |||||
Notes receivable | ¥ 12,500,000 | $ 1,800,000 | |||
Percentage of notes subsequently collected | 100 | 100 |
OTHER RECEIVABLES, NET - Summar
OTHER RECEIVABLES, NET - Summary of Other receivables, net (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 CNY (¥) |
Current Portion | |||||
Other receivable - current portion | ¥ 4,184,778 | $ 589,414 | ¥ 2,185,733 | ||
Third parties | |||||
Current Portion | |||||
Business advances to officers and staffs | 1,849,761 | 260,533 | 854,162 | ||
Deposits for projects | 1,224,966 | 172,533 | 1,247,992 | ||
VAT recoverable | 577,545 | 81,346 | 690,053 | ||
Others | 1,134,950 | 159,854 | 1,392,126 | ||
Allowance for credit losses | (602,444) | (84,852) | (1,994,960) | $ (280,984) | ¥ (619,444) |
Subtotal | 4,184,778 | 589,414 | 2,189,373 | ||
Less: Long term portion | (3,640) | ||||
Other receivable - current portion | ¥ 4,184,778 | $ 589,414 | ¥ 2,185,733 |
OTHER RECEIVABLES, NET - Summ_2
OTHER RECEIVABLES, NET - Summary of Movement of allowance for credit losses (Details) | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | |
OTHER RECEIVABLES, NET | |||||
Charge to (reversal of) allowance | ¥ 1,392,516 | ¥ 549,132 | |||
Third parties | |||||
OTHER RECEIVABLES, NET | |||||
Beginning balance | 1,994,960 | $ 280,984 | ¥ 619,444 | ¥ 619,444 | |
Charge to (reversal of) allowance | (1,392,516) | 1,375,516 | $ (196,132) | ||
Ending balance | ¥ 602,444 | $ 84,852 | ¥ 1,994,960 | $ 280,984 |
OTHER RECEIVABLES, NET - Additi
OTHER RECEIVABLES, NET - Additional Information (Details) - CNY (¥) | 6 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
OTHER RECEIVABLES, NET | ||
Net recovery of provision for credit losses of other receivables | ¥ 1,392,516 | ¥ 549,132 |
LOANS TO THIRD PARTIES (Details
LOANS TO THIRD PARTIES (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
LOANS TO THIRD PARTIES | |||
Working fund to third party companies | ¥ 97,874,144 | $ 13,785,285 | ¥ 123,055,874 |
Less: Long term portion | (18,500,000) | (2,605,671) | |
Loans to third parties | ¥ 79,374,144 | $ 11,179,614 | ¥ 123,055,874 |
LOANS TO THIRD PARTIES - Additi
LOANS TO THIRD PARTIES - Additional Information (Details) ¥ in Millions, $ in Millions | Jun. 28, 2024 CNY (¥) | Jun. 28, 2024 USD ($) |
LOANS TO THIRD PARTIES | ||
Effective percentage | 63.10% | 63.10% |
Proceeds from collection | ¥ 61.8 | $ 8.7 |
CONTRACT COSTS, NET (Details)
CONTRACT COSTS, NET (Details) | 6 Months Ended | ||||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 CNY (¥) | |
CONTRACT COSTS, NET | |||||||
Contract costs | ¥ 41,886,747 | $ 5,899,625 | ¥ 52,158,840 | ||||
Allowance for credit losses | (4,562,923) | (642,674) | (2,586,155) | $ (364,252) | ¥ (4,063,482) | ||
Total contract costs, net | ¥ 37,323,824 | $ 5,256,951 | ¥ 49,572,685 | ||||
Percentage of total contracts costs subsequently realized | 18.50% | 18.50% | |||||
Total contracts costs that have been subsequently realized | ¥ 6,900,000 | $ 1,000,000 | |||||
Net recovery of provision for credit losses | ¥ 1,939,135 | $ 273,122 | ¥ 3,751,575 |
CONTRACT COSTS, NET - Movement
CONTRACT COSTS, NET - Movement of impairment of contract costs (Details) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | |
CONTRACT COSTS, NET | |||
Beginning balance | ¥ 2,586,155 | $ 364,252 | ¥ 4,063,482 |
Reversal of allowance | 1,939,135 | 273,122 | (1,720,095) |
Charge to cost of sales | 37,633 | 5,300 | 242,768 |
Ending balance | ¥ 4,562,923 | $ 642,674 | ¥ 2,586,155 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
PROPERTY AND EQUIPMENT, NET. | |||
Total cost | ¥ 38,592,274 | $ 5,435,608 | ¥ 39,992,837 |
Less: accumulated depreciation | (14,157,788) | (1,994,083) | (14,297,511) |
Less: accumulated impairment | (942,462) | (132,743) | (942,462) |
Property and equipment, net | 23,492,024 | 3,308,782 | 24,752,864 |
Motor vehicles | |||
PROPERTY AND EQUIPMENT, NET. | |||
Total cost | 3,699,101 | 521,007 | 5,176,175 |
Office equipment and fixtures | |||
PROPERTY AND EQUIPMENT, NET. | |||
Total cost | 1,401,599 | 197,411 | 1,440,819 |
Production equipment | |||
PROPERTY AND EQUIPMENT, NET. | |||
Total cost | 31,231,574 | 4,398,875 | 31,115,843 |
Leasehold improvement | |||
PROPERTY AND EQUIPMENT, NET. | |||
Total cost | ¥ 2,260,000 | $ 318,314 | ¥ 2,260,000 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) | 6 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
PROPERTY AND EQUIPMENT, NET | |||
Depreciation expenses | ¥ 1,426,971 | $ 200,985 | ¥ 1,602,166 |
Loss from property and equipment disposal | ¥ 32,252 | $ 4,543 | ¥ 12,782 |
BUSINESS ACQUISITION AND INVE_3
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY - Additional Information (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
May 01, 2024 | Mar. 29, 2024 | Mar. 15, 2023 shares | Jan. 05, 2022 shares | Dec. 10, 2021 shares | Nov. 10, 2021 shares | Aug. 21, 2021 shares | Jan. 13, 2021 CNY (¥) item shares | Aug. 21, 2018 CNY (¥) shares | Jan. 31, 2022 shares | Dec. 31, 2023 CNY (¥) item | Dec. 31, 2022 CNY (¥) | Jun. 30, 2021 CNY (¥) | Jan. 13, 2021 USD ($) item $ / shares | Dec. 31, 2020 | |
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Cost method investment ownership percentage | 43% | 43% | |||||||||||||
Shares | 487,057 | ||||||||||||||
Reverse stock split | 0.056 | 0.2 | |||||||||||||
Post 2024 Reverse Stock Split | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Shares | 27,059 | ||||||||||||||
Future Gas Station (Beijing) Technology, Ltd | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Ownership percentage | 51% | 51% | |||||||||||||
Future Gas Station (Beijing) Technology, Ltd | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Payments to acquire additional interest in subsidiaries | ¥ | ¥ 10,000,000 | ||||||||||||||
Number of gas stations extending business | item | 200 | ||||||||||||||
Number of Company's subsidiaries who entered into the fourth supplemental agreement to the investment agreement | item | 2 | 2 | |||||||||||||
Percentage of deemed consideration of equity. | 8% | ||||||||||||||
Equity method investment additional information | As consideration for increasing its affiliates’ interest in FGS from 8% to 43%, the Company will (1) pay a total of RMB 10 million in cash to FGS and (2) issue 487,057 (27,059 shares post 2024 Reverse Split) restricted Class A Ordinary Shares of the Company (the “Restricted Shares”) to the other shareholders of FGS within 30 days after FGS finalizes recording the Company’s corresponding interest at the local governmental agency. | ||||||||||||||
Stock price | $ / shares | $ 1.61 | ||||||||||||||
Fair market value of waived performance goals | ¥ 1,689,807 | $ 261,667 | |||||||||||||
Remeasurement gain of previously held equity interests in connection with step acquisition | ¥ | ¥ 979,254 | ||||||||||||||
Amortization expense | ¥ | ¥ 0 | ¥ 350,000 | |||||||||||||
Number of shares cancelled | 162,352 | ||||||||||||||
Future Gas Station (Beijing) Technology, Ltd | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Percentage of equity interest to be acquired in exchange for waiver of performance goals | 8% | 8% | |||||||||||||
Future Gas Station (Beijing) Technology, Ltd | Post 2024 Reverse Stock Split | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Consideration in shares | 27,059 | ||||||||||||||
Number of shares cancelled | 9,020 | ||||||||||||||
Stock price | $ / shares | $ 28.98 | ||||||||||||||
Future Gas Station (Beijing) Technology, Ltd | Customer relationship | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Impairment loss for intangible assets | ¥ | ¥ 0 | ¥ 0 | |||||||||||||
Future Gas Station (Beijing) Technology, Ltd | Future Gas Station (Beijing) Technology, Ltd | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Consideration in shares | 487,057 | ||||||||||||||
Restricted shares | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Reverse stock split | 0.056 | ||||||||||||||
Restricted shares issued for services (in shares) | 250,000 | 500,000 | 250,000 | ||||||||||||
Number of shares issued | 1,000,000 | 1,050,000 | |||||||||||||
Restricted shares | Post 2024 Reverse Stock Split | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Restricted shares issued for services (in shares) | 13,889 | 27,778 | 13,889 | ||||||||||||
Number of shares issued | 55,556 | 58,333 | |||||||||||||
Restricted shares | Future Gas Station (Beijing) Technology, Ltd | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Consideration in shares | 487,057 | ||||||||||||||
Restricted shares | Future Gas Station (Beijing) Technology, Ltd | Post 2024 Reverse Stock Split | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Consideration in shares | 27,059 | ||||||||||||||
Minimum | Future Gas Station (Beijing) Technology, Ltd | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Ownership percentage | 8% | ||||||||||||||
Maximum | Future Gas Station (Beijing) Technology, Ltd | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Ownership percentage | 43% | ||||||||||||||
Class A ordinary shares | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Reverse stock split | 0.056 | 0.056 | |||||||||||||
Class A ordinary shares | Future Gas Station (Beijing) Technology, Ltd | |||||||||||||||
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||||||||||||||
Shares | 487,057 |
BUSINESS ACQUISITION AND INVE_4
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY - Fair values of the identifiable assets and liabilities (Details) - Jan. 13, 2021 - Future Gas Station (Beijing) Technology, Ltd | CNY (¥) | USD ($) | USD ($) |
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY. | |||
Cash | ¥ 471,843 | $ 66,458 | |
Accounts receivable, net | 831,049 | 117,051 | |
Other receivables, net | 144,285 | 20,322 | |
Contract costs, net | 75,250 | 10,599 | |
Prepaid expenses | 91,132 | 12,836 | |
Property and equipment, net | 118,130 | 16,638 | |
Intercompany receivables | 6,850,000 | 964,802 | |
Intangible assets- customer relationship | 7,000,000 | 985,929 | |
Goodwill | 6,996,895 | 985,492 | |
Accounts payable | (1,032,078) | (145,365) | |
Other payables | (1,273,182) | (179,324) | |
Other payable- related parties | (479,959) | (67,601) | |
Deferred revenue | (39,786) | (5,604) | |
Accrued payroll and employees' welfare | (1,629,519) | (229,513) | |
Taxes payable | (64,253) | (9,050) | |
Deferred tax liability | (1,050,000) | (147,889) | |
Total | 17,009,807 | $ 2,395,781 | |
Deemed equity consideration to acquire 8% equity interest in FGS | 1,689,807 | $ 238,004 | |
Fair value of previously held equity interest | 30,530,000 | 4,300,061 | |
Non-controlling interest | 34,790,000 | 4,900,069 | |
Capital contribution receivable due from non-controlling Interest | (50,000,000) | (7,042,353) | |
Total | ¥ 17,009,807 | $ 2,395,781 |
BUSINESS ACQUISITION AND INVE_5
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY - Fair value of identified goodwill acquired and carrying value (Details) - Future Gas Station (Beijing) Technology, Ltd | 6 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2023 USD ($) | |
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | |||
Goodwill | ¥ 6,996,895 | $ 985,492 | |
Less: impairment for goodwill | (6,996,895) | (985,492) | |
Goodwill, net | 0 | $ 0 | |
Impairment loss on goodwill | ¥ 0 | ¥ 0 |
BUSINESS ACQUISITION AND INVE_6
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY - Fair value of identified intangible assets, customer relationship and its estimated useful lives (Details) - 6 months ended Dec. 31, 2023 - Future Gas Station (Beijing) Technology, Ltd | CNY (¥) | USD ($) |
BUSINESS ACQUISITION AND INVESTMENT IN UNCONSOLIDATED ENTITY | ||
Intangible assets - customer relationship | ¥ 7,000,000 | $ 985,929 |
Less: accumulated amortization | (1,750,000) | (246,482) |
Less: impairment | (5,250,000) | (739,447) |
Intangible assets - customer relationship, net | ¥ 0 | $ 0 |
Average Useful Life (in Years) | 10 years |
LEASES - Operating lease relate
LEASES - Operating lease related assets and liabilities (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
Operating lease related assets and liabilities recorded on the balance sheets | |||
Rights of use lease assets - current | ¥ 1,714,263 | $ 241,449 | |
Less: impairment | (834,975) | (117,604) | |
Rights of use lease assets, net - current | 879,288 | 123,845 | |
Rights of use lease assets - non - current | 16,204,906 | 2,282,413 | ¥ 3,489,875 |
Less: impairment | (834,975) | ||
Rights of use lease assets, net - non - current | 16,204,906 | 2,282,413 | 2,654,900 |
Operating lease liabilities - current | 722,857 | 101,812 | 3,066,146 |
Operating lease liabilities - non-current | 341,366 | 48,080 | 25,144 |
Total operating lease liabilities | ¥ 1,064,223 | $ 149,892 | ¥ 3,091,290 |
LEASES - Weighted average remai
LEASES - Weighted average remaining lease terms and discount rates (Details) | Dec. 31, 2023 | Jun. 30, 2023 |
Remaining lease terms and discount rate: | ||
Weighted average remaining lease term (years) | 23 years 6 months | 23 years 10 months 24 days |
Weighted average discount rate | 5% | 5% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
Office Leases Commitment - short term | |||
2024 | ¥ 1,045,399 | $ 147,241 | |
2025 | 26,400 | 3,718 | |
Total lease payments | 1,071,799 | 150,959 | |
Less: imputed interest | (7,576) | (1,067) | |
Present value of lease liabilities | 1,064,223 | 149,892 | ¥ 3,091,290 |
Operating lease liabilities - current | 722,857 | 101,812 | 3,066,146 |
Operating lease liabilities - non-current | ¥ 341,366 | $ 48,080 | ¥ 25,144 |
LEASES - Additional information
LEASES - Additional information (Details) | 6 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
LEASES | |||
Operating lease costs | ¥ 1,659,302 | $ 233,708 | ¥ 1,694,074 |
Short-term lease | 313,533 | $ 44,160 | 480,040 |
Impairment loss for the ROU | ¥ 0 | ¥ 0 | |
Minimum | |||
LEASES | |||
Lease term | 1 year | 1 year | |
Maximum | |||
LEASES | |||
Lease term | 50 years | 50 years |
OTHER PAYABLES - Third Parties
OTHER PAYABLES - Third Parties (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
OTHER PAYABLES | |||
Total | ¥ 1,688,166 | $ 237,773 | ¥ 5,819,010 |
Third parties | |||
OTHER PAYABLES | |||
Professional service fees | 304,474 | 42,884 | 2,246,101 |
Distributors and employees | 712,173 | 100,307 | 3,073,289 |
Accrued expenses | 193,274 | 27,222 | 200,218 |
Others | 478,245 | 67,360 | 299,402 |
Total | ¥ 1,688,166 | $ 237,773 | ¥ 5,819,010 |
OTHER PAYABLES - Related Partie
OTHER PAYABLES - Related Parties (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
OTHER PAYABLES | |||
Total | ¥ 1,688,166 | $ 237,773 | ¥ 5,819,010 |
Related party | |||
OTHER PAYABLES | |||
Expenses paid by the major shareholders | 1,663,858 | 234,350 | 1,796,309 |
Due to family members of the owners of BHD and FGS | 545,159 | 76,784 | 545,159 |
Due to management staff for costs incurred on behalf of the company | 250,927 | ||
Total | ¥ 2,209,017 | $ 311,134 | ¥ 2,592,395 |
TAXES PAYABLE (Details)
TAXES PAYABLE (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
TAXES PAYABLE | |||
VAT payable | ¥ 720,872 | $ 101,533 | ¥ 699,601 |
Income tax payable | 536,071 | 75,504 | 440,030 |
Other taxes payable | 445,955 | 62,811 | 23,375 |
Total taxes payable | ¥ 1,702,898 | $ 239,848 | ¥ 1,163,006 |
BANK LOANS - Short-term bank lo
BANK LOANS - Short-term bank loans (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
BANK LOANS | |||
Short-term bank loans | ¥ 12,336,285 | $ 1,737,529 | ¥ 12,451,481 |
Bank of Kunlun | |||
BANK LOANS | |||
Short-term bank loans | 827,000 | 116,481 | 950,000 |
Industrial and Commercial Bank of China | |||
BANK LOANS | |||
Short-term bank loans | 10,007,639 | 1,409,546 | 10,000,000 |
China Construction Bank | |||
BANK LOANS | |||
Short-term bank loans | ¥ 1,501,646 | $ 211,502 | ¥ 1,501,481 |
BANK LOANS - Short-term bank _2
BANK LOANS - Short-term bank loans - Narrative (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||
May 29, 2024 | Jun. 13, 2023 CNY (¥) | Jun. 13, 2023 USD ($) | Jun. 09, 2023 CNY (¥) | Jun. 09, 2023 USD ($) | Jun. 06, 2023 CNY (¥) | Aug. 31, 2022 CNY (¥) | Aug. 31, 2022 USD ($) | Jun. 28, 2024 CNY (¥) | Jun. 28, 2024 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 06, 2023 USD ($) | Aug. 31, 2022 USD ($) | |
BANK LOANS | |||||||||||||||||
Term of debt | 3 years | ||||||||||||||||
Proceeds from debt | ¥ 0 | $ 0 | ¥ 1,000,000 | ||||||||||||||
Repayments of debt | 123,000 | 17,324 | 0 | ||||||||||||||
Interest expense on bank loan | 159,276 | 22,434 | ¥ 227,918 | ||||||||||||||
Bank of Kunlun | |||||||||||||||||
BANK LOANS | |||||||||||||||||
Face amount of debt | ¥ 2,900,000 | $ 408,456 | |||||||||||||||
Term of debt | 18 months | 18 months | |||||||||||||||
Proceeds from debt | ¥ 1,000,000 | $ 140,847 | |||||||||||||||
Repayments of debt | ¥ 8,269 | $ 1,165 | ¥ 123,000 | $ 17,324 | ¥ 50,000 | $ 7,042 | |||||||||||
Collateral value of debt | 6,500,000 | 1,000,000 | |||||||||||||||
Industrial and Commercial Bank of China | Revolving loan facility | |||||||||||||||||
BANK LOANS | |||||||||||||||||
Term of debt | 1 year | ||||||||||||||||
Interest rate (as a percent) | 2.50% | 2.50% | |||||||||||||||
Proceeds from debt | ¥ 5,000,000 | $ 704,235 | |||||||||||||||
Repayments of debt | ¥ 5,000,000 | $ 704,235 | |||||||||||||||
Collateral value of debt | ¥ 17,600,000 | $ 2,400,000 | |||||||||||||||
Maximum borrowing capacity | ¥ 10,000,000 | $ 1,408,471 | |||||||||||||||
China Construction Bank | |||||||||||||||||
BANK LOANS | |||||||||||||||||
Face amount of debt | ¥ 1,500,000 | $ 211,271 | |||||||||||||||
Interest rate (as a percent) | 3.95% | 3.95% | |||||||||||||||
Bank of Nanjing | |||||||||||||||||
BANK LOANS | |||||||||||||||||
Interest rate (as a percent) | 6% | 6% |
SHORT-TERM BORROWINGS DUE TO _3
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES - Due to related party (Details) | 6 Months Ended | ||||
May 29, 2024 | May 28, 2024 | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | |
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES | |||||
Short-term borrowings due to related parties | ¥ 20,019,889 | $ 2,819,742 | ¥ 20,018,222 | ||
Debt Instrument, Maturity Date | Apr. 29, 2027 | May 29, 2024 | |||
Debt Instrument, Interest Rate Percentage | 3.75% | ||||
Debt instrument, term | 3 years | ||||
Short term borrowings one | |||||
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES | |||||
Short-term borrowings due to related parties | 10,004,055 | ||||
Debt Instrument, Maturity Date | Dec. 26, 2023 | ||||
Debt Instrument, Interest Rate Percentage | 3.65% | ||||
Short term borrowings two | |||||
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES | |||||
Short-term borrowings due to related parties | ¥ 4,994,892 | 703,516 | 4,993,950 | ||
Debt Instrument, Maturity Date | Jun. 04, 2024 | ||||
Debt Instrument, Interest Rate Percentage | 3.40% | ||||
Short Term Borrowings Three | |||||
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES | |||||
Short-term borrowings due to related parties | ¥ 5,021,164 | 707,216 | ¥ 5,020,217 | ||
Debt Instrument, Maturity Date | Jun. 16, 2024 | ||||
Debt Instrument, Interest Rate Percentage | 3.40% | ||||
Short Term Borrowings Four | |||||
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES | |||||
Short-term borrowings due to related parties | ¥ 10,003,833 | $ 1,409,010 | |||
Debt Instrument, Maturity Date | Dec. 28, 2024 | ||||
Debt Instrument, Interest Rate Percentage | 3.45% |
SHORT-TERM BORROWINGS DUE TO _4
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES - Additional Information (Details) - Short term borrowings | 6 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Jun. 30, 2023 CNY (¥) | |
SHORT-TERM BORROWINGS DUE TO RELATED PARTIES | ||||
Interest expense due to third party | ¥ 338,338 | $ 47,654 | ¥ 142,725 | |
Guaranteed or collateralized | ¥ 0 | ¥ 0 |
CLASS A ORDINARY SHARES (Detail
CLASS A ORDINARY SHARES (Details) | 6 Months Ended | |||||||||||||||||||
Oct. 16, 2023 shares | Mar. 15, 2023 USD ($) $ / shares shares | Jun. 14, 2021 USD ($) $ / shares shares | Apr. 05, 2021 USD ($) Vote $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2023 CNY (¥) | May 01, 2024 shares | Mar. 29, 2024 USD ($) $ / shares shares | Mar. 28, 2024 USD ($) $ / shares shares | Dec. 31, 2023 CNY (¥) shares | Dec. 14, 2023 shares | Oct. 10, 2023 shares | Jun. 30, 2023 $ / shares | Jun. 30, 2023 CNY (¥) shares | Dec. 31, 2022 $ / shares shares | Jun. 30, 2022 shares | Jun. 30, 2021 shares | Apr. 05, 2021 ¥ / shares | Jun. 30, 2020 shares | May 26, 2020 shares | |
CLASS A ORDINARY SHARES. | ||||||||||||||||||||
Number of ordinary shares called for by warrants | 863,333 | 863,333 | 7,950,769 | 1,680,000 | 911,112 | |||||||||||||||
Placement agent's fees and other estimated offering expenses | $ 4,700,000 | ¥ 30,408,264 | ||||||||||||||||||
Ordinary shares, shares outstanding | 7,927,132 | |||||||||||||||||||
Percentage transfer of profit to statutory reserves | 10% | 10% | ||||||||||||||||||
Transfer of profit to statutory reserves up to certain percentage of registered capital | 50% | 50% | ||||||||||||||||||
Appropriated retained earnings | $ 584,364 | ¥ 4,148,929 | ¥ 4,148,929 | |||||||||||||||||
Post 2024 Reverse Stock Split | ||||||||||||||||||||
CLASS A ORDINARY SHARES. | ||||||||||||||||||||
Number of ordinary shares called for by warrants | 47,963 | 47,963 | 441,710 | 93,333 | 50,617 | |||||||||||||||
Class A Ordinary Shares | ||||||||||||||||||||
CLASS A ORDINARY SHARES. | ||||||||||||||||||||
Authorized share capital | $ | $ 15,725,000 | $ 58,000 | $ 15,725,000 | |||||||||||||||||
Ordinary shares, shares authorized | 150,000,000 | 500,000,000 | 500,000,000 | 150,000,000 | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||||||
Par value (in dollars per share) | (per share) | $ 0.0925 | $ 0.0925 | $ 0.0925 | $ 0.0001 | $ 0.0001 | $ 0.0925 | $ 0.0001 | $ 0.0001 | ¥ 0.62 | |||||||||||
Number of votes | Vote | 1 | |||||||||||||||||||
Stock issuance (in shares) | 8,827,500 | 6,014,102 | ||||||||||||||||||
Number of ordinary shares called for by warrants | 10,002,500 | 863,333 | 7,950,769 | 8,814,102 | ||||||||||||||||
Ordinary shares, shares issued | 1,175,000 | 2,371,573 | 2,371,573 | 2,306,295 | 1,704,766 | |||||||||||||||
Ordinary shares, shares outstanding | 2,371,573 | 141,703,218 | 2,371,573 | 1,175,000 | 2,306,295 | 1,704,766 | ||||||||||||||
Class A Ordinary Shares | Post 2024 Reverse Stock Split | ||||||||||||||||||||
CLASS A ORDINARY SHARES. | ||||||||||||||||||||
Ordinary shares, shares authorized | 8,333,333 | |||||||||||||||||||
Par value (in dollars per share) | $ / shares | $ 1.67 | $ 1.67 | $ 1.67 | |||||||||||||||||
Stock issuance (in shares) | 490,417 | 334,117 | ||||||||||||||||||
Number of ordinary shares called for by warrants | 555,694 | 47,963 | 441,710 | 489,673 | ||||||||||||||||
Ordinary shares, shares issued | 65,278 | |||||||||||||||||||
Class B ordinary shares | ||||||||||||||||||||
CLASS A ORDINARY SHARES. | ||||||||||||||||||||
Authorized share capital | $ | $ 1,850,000 | |||||||||||||||||||
Ordinary shares, shares authorized | 20,000,000 | 80,000,000 | 80,000,000 | 20,000,000 | 80,000,000 | 80,000,000 | 80,000,000 | |||||||||||||
Par value (in dollars per share) | (per share) | $ 0.0925 | $ 0.0001 | $ 0.0001 | $ 0.0925 | $ 0.0001 | $ 0.0001 | ¥ 0.62 | |||||||||||||
Number of votes | Vote | 15 | |||||||||||||||||||
Ordinary shares, shares issued | 7,100,000 | 7,100,000 | 7,100,000 | 4,100,000 | ||||||||||||||||
Ordinary shares, shares outstanding | 7,100,000 | 7,100,000 | 7,100,000 | 4,100,000 | ||||||||||||||||
Pre-funded warrants | ||||||||||||||||||||
CLASS A ORDINARY SHARES. | ||||||||||||||||||||
Stock issuance (in shares) | 1,175,000 | 1,175,000 | 2,800,000 | |||||||||||||||||
Number of ordinary shares called for by warrants | 10,002,500 | 8,814,102 | ||||||||||||||||||
Gross proceeds | $ | $ 8,000,000 | $ 55,000,000 | ||||||||||||||||||
Pre-funded warrants | Post 2024 Reverse Stock Split | ||||||||||||||||||||
CLASS A ORDINARY SHARES. | ||||||||||||||||||||
Stock issuance (in shares) | 65,278 | 65,278 | 155,556 | |||||||||||||||||
Number of ordinary shares called for by warrants | 555,694 | 489,673 |
CLASS A ORDINARY SHARES - Pre f
CLASS A ORDINARY SHARES - Pre funded warrants (Details) | 6 Months Ended | 12 Months Ended | |
May 01, 2024 | Dec. 31, 2023 $ / shares shares | Jun. 30, 2023 $ / shares shares | |
CLASS A ORDINARY SHARES | |||
Reverse stock split | 0.056 | 0.2 | |
Pre-funded warrants | |||
CLASS A ORDINARY SHARES | |||
Warrants Outstanding | shares | 65,278 | ||
Issued | shares | 65,278 | ||
Exercised | shares | (65,278) | ||
Warrants Outstanding | shares | 65,278 | ||
Weighted average exercise price outstanding per share | $ / shares | $ 0.18 | ||
Issued | $ / shares | $ 0.18 | ||
Exercised | $ / shares | $ 0.18 | ||
Weighted average exercise price outstanding per share | $ / shares | $ 0.18 | ||
Weighted average remaining period, outstanding | 5 years 2 months 19 days | ||
Issued | 5 years 6 months | ||
Reverse stock split | 0.056 |
ORDINARY SHARES PURCHASE WARR_3
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS (Details) | 2 Months Ended | 6 Months Ended | |||||||||||
Dec. 14, 2023 $ / shares shares | Jun. 30, 2020 USD ($) item $ / shares shares | Dec. 31, 2023 CNY (¥) Y shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) Y shares | Jun. 30, 2023 CNY (¥) Y shares | Jun. 30, 2023 USD ($) Y $ / shares shares | Mar. 15, 2023 USD ($) shares | Jun. 30, 2022 $ / shares shares | Jun. 30, 2021 shares | May 26, 2020 USD ($) $ / shares shares | |
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Number of offerings | item | 2 | ||||||||||||
Number of warrants to purchase ordinary shares | 7,950,769 | 1,680,000 | 863,333 | 863,333 | 911,112 | ||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 0.25 | $ 1.25 | $ 2.25 | ||||||||||
Fair value of warrants | $ | $ 1,639,333 | $ 2,880,000 | $ 197,692 | $ 2,750,000 | $ 1,689,389 | ||||||||
Fair value of the warrant liability | ¥ 993,986 | $ 140,000 | ¥ 31,615,668 | ||||||||||
Fair value changes of warrants liability | ¥ 10,461,075 | $ 1,473,412 | ¥ 20,097,665 | ||||||||||
Post 2024 Reverse Stock Split | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Number of warrants to purchase ordinary shares | 441,710 | 93,333 | 47,963 | 47,963 | 50,617 | ||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 4.50 | $ 22.50 | $ 40.50 | ||||||||||
Warrant 2021 | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Fair value of the warrant liability | ¥ 993,986 | $ 140,000 | $ 1,930,000 | ||||||||||
Number of warrants | 47,963 | 47,963 | |||||||||||
Warrant 2023 | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Number of warrants | 555,694 | 555,694 | |||||||||||
Warrants re-purchase | 10,002,500 | ||||||||||||
Purchase price of each warrant | $ / shares | $ 0.25 | ||||||||||||
Fair value of warrant liability | $ | $ 0 | $ 2,430,000 | |||||||||||
Fair value changes of warrants liability | $ | $ 70,625 | $ 0 | |||||||||||
Warrant 2023 | Post 2024 Reverse Stock Split | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Number of warrants to purchase ordinary shares | 555,694 | ||||||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ (4.50) | ||||||||||||
Second Offering Member | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Number of warrants | 34,860,000 | ||||||||||||
Class A Ordinary Shares | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Number of warrants to purchase ordinary shares | 863,333 | 863,333 | 10,002,500 | 7,950,769 | 8,814,102 | ||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 6.24 | $ 0.80 | |||||||||||
Class A Ordinary Shares | Post 2024 Reverse Stock Split | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Number of warrants to purchase ordinary shares | 47,963 | 47,963 | 555,694 | 441,710 | 489,673 | ||||||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 112.32 | $ 14.40 | |||||||||||
Risk free interest rate | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Warrants outstanding, measurement input | 0.35 | 0.0040 | |||||||||||
Risk free interest rate | Warrant 2021 | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Warrants outstanding, measurement input | 0.0402 | 0.0402 | |||||||||||
Risk free interest rate | Warrant 2023 | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Warrants outstanding, measurement input | 0.0359 | 0.0359 | |||||||||||
Measurement input, expected term | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Warrants and rights outstanding, term | 5 years 6 months | 5 years 6 months | |||||||||||
Measurement input, expected term | Warrant 2021 | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Warrants outstanding, measurement input | Y | 2.96 | 2.96 | |||||||||||
Measurement input, expected term | Warrant 2023 | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Warrants outstanding, measurement input | Y | 5.22 | 5.22 | |||||||||||
Measurement input, price volatility | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Warrants outstanding, measurement input | 104.26 | 99.50 | |||||||||||
Measurement input, price volatility | Warrant 2021 | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Warrants outstanding, measurement input | 1.19 | 1.19 | |||||||||||
Measurement input, price volatility | Warrant 2023 | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Warrants outstanding, measurement input | 1.10 | 1.10 | |||||||||||
Measurement input, expected dividend rate | |||||||||||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||||||||||
Warrants outstanding, measurement input | 0 | 0 |
ORDINARY SHARES PURCHASE WARR_4
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS - Measurement inputs (Details) | 6 Months Ended | ||||
May 01, 2024 | Dec. 31, 2023 $ / shares Y shares | Jun. 30, 2023 Y $ / shares shares | Jun. 30, 2020 | May 26, 2020 | |
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Reverse stock split | 0.056 | 0.2 | |||
Warrant 2021 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Number of warrants | shares | 47,963 | ||||
Number of warrants, remaining | shares | 47,963 | ||||
Number of warrants, adjusted | shares | 441,710 | ||||
Reverse stock split | 0.056 | ||||
Warrant 2023 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Number of warrants | shares | 555,694 | ||||
Reverse stock split | 0.056 | ||||
Share price | Warrant 2021 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | 0.23 | ||||
Warrants outstanding, measurement input remaining | 0.34 | ||||
Warrants outstanding measurement input adjusted | 0.34 | ||||
Share price | Warrant 2023 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | 0.34 | ||||
Risk free interest rate | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | 0.35 | 0.0040 | |||
Risk free interest rate | Warrant 2021 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | 0.0402 | ||||
Warrants outstanding, measurement input remaining | 0.0441 | ||||
Warrants outstanding measurement input adjusted | 0.0441 | ||||
Risk free interest rate | Warrant 2023 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | 0.0359 | ||||
volatility | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | 104.26 | 99.50 | |||
volatility | Warrant 2021 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | 1.19 | ||||
Warrants outstanding, measurement input remaining | 1.27 | ||||
Warrants outstanding measurement input adjusted | 1.27 | ||||
volatility | Warrant 2023 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | 1.10 | ||||
Exercise price | Warrant 2021 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | 112.32 | ||||
Warrants outstanding, measurement input remaining | 112.32 | ||||
Warrants outstanding measurement input adjusted | 14.40 | ||||
Exercise price | Warrant 2023 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | 14.40 | ||||
Warrant life | Warrant 2021 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | Y | 2.96 | ||||
Warrants outstanding, measurement input remaining | Y | 3.47 | ||||
Warrants outstanding measurement input adjusted | Y | 3.47 | ||||
Warrant life | Warrant 2023 | |||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||||
Warrants outstanding, measurement input | Y | 5.22 |
ORDINARY SHARES PURCHASE WARR_5
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS - Liabilities (Details) - USD ($) | Dec. 31, 2023 | Jun. 30, 2023 |
Liabilities: | ||
Warrant liability - non-current | $ 140,000 | $ 4,360,000 |
Level 3 | ||
Liabilities: | ||
Warrant liability - non-current | $ 140,000 | $ 4,360,000 |
ORDINARY SHARES PURCHASE WARR_6
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS - Warrant activities (Details) | 6 Months Ended | 12 Months Ended | ||
May 01, 2024 | Dec. 31, 2023 $ / shares shares | Jun. 30, 2023 $ / shares shares | Jun. 30, 2022 $ / shares shares | |
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | ||||
Reverse stock split | 0.056 | 0.2 | ||
Warrant | ||||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | ||||
Warrants Outstanding | shares | 1,045,367 | 489,673 | ||
Issued | shares | 555,694 | |||
Redeemed | shares | (997,404) | |||
Warrants Outstanding | shares | 47,963 | 1,045,367 | 489,673 | |
Weighted average exercise price outstanding per share | $ / shares | $ 18.90 | $ 112.32 | ||
Issued | $ / shares | 14.40 | |||
Redeemed | $ / shares | 14.40 | |||
Weighted average exercise price outstanding per share | $ / shares | $ 112.32 | $ 18.90 | $ 112.32 | |
Weighted average remaining period, outstanding | 2 years 11 months 15 days | 4 years 4 months 24 days | 4 years 5 months 15 days | |
Weighted average remaining period, issued | 5 years 6 months |
ORDINARY SHARES PURCHASE WARR_7
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS - Estimated liability (Details) | Dec. 14, 2023 shares | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) |
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||
Warrant liability - current | ¥ 8,519,880 | $ 1,200,000 | |
Number of bought back an aggregate warrant | 17,953,269 | ||
Post 2024 Reverse Stock Split | |||
ORDINARY SHARES PURCHASE WARRANTS ISSUED TO INVESTORS | |||
Number of bought back an aggregate warrant | 997,404 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) | 6 Months Ended | 12 Months Ended | |
May 01, 2024 | Dec. 31, 2023 $ / shares shares | Jun. 30, 2023 $ / shares shares | |
SHARE-BASED COMPENSATION | |||
Stock Options, Shares, Outstanding at Beginning | shares | 4,444 | 4,444 | |
Stock Options, Shares, Granted | shares | 0 | 0 | |
Forfeited | shares | 0 | 0 | |
Stock Option, Shares, Exercised | shares | 0 | 0 | |
Stock Option, Shares, Expired | shares | 0 | 0 | |
Stock Options, Shares, Outstanding at Ending | shares | 4,444 | 4,444 | |
Stock Options, Weighted Average Exercise Price Per share, Outstanding at Beginning | $ / shares | $ 148.50 | $ 148.50 | |
Stock Options, Weighted Average Exercise Price Per share, Granted | $ / shares | 0 | 0 | |
Stock Options, Weighted Average Exercise Price Per share, Forfeited | $ / shares | 0 | 0 | |
Stock Options, Weighted Average Exercise Price Per share, Exercised | $ / shares | 0 | 0 | |
Stock Options, Weighted Average Exercise Price Per share, Expired | $ / shares | 0 | 0 | |
Stock Options, Weighted Average Exercise Price Per share, Outstanding at Ending | $ / shares | $ 148.50 | $ 148.50 | |
Reverse stock split | 0.056 | 0.2 |
SHARE-BASED COMPENSATION - Opti
SHARE-BASED COMPENSATION - Option outstanding (Details) | 6 Months Ended | |
May 01, 2024 | Dec. 31, 2023 $ / shares shares | |
SHARE-BASED COMPENSATION | ||
Outstanding Options, Number (in shares) | 4,444 | |
Exercisable Options, Number (in shares) | 4,444 | |
Reverse stock split | 0.056 | 0.2 |
Stock option one [Member] | ||
SHARE-BASED COMPENSATION | ||
Outstanding Options, Average Exercise Price | $ / shares | $ 148.50 | |
Outstanding Options, Number (in shares) | 4,444 | |
Outstanding Options, Average Remaining Contractual life (Years) | 1 year 29 days | |
Exercisable Options, Average Exercise Price | $ / shares | $ 148.50 | |
Exercisable Options, Number (in shares) | 4,444 | |
Exercisable Options, Average Remaining Contractual life (years) | 1 year 29 days | |
Reverse stock split | 0.056 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted shares (Details) | 6 Months Ended | 12 Months Ended | |
May 01, 2024 | Dec. 31, 2023 shares | Jun. 30, 2023 shares | |
SHARE-BASED COMPENSATION | |||
Granted - Shares | 0 | 0 | |
Reverse stock split | 0.056 | 0.2 | |
Restricted Stock [Member] | |||
SHARE-BASED COMPENSATION | |||
Non-vested, Beginning Balance - Shares | 171,938 | 120,407 | |
Granted - Shares | 0 | 277,778 | |
Vested - Shares | (111,111) | (226,247) | |
Non-vested, Ending Balance - Shares | 60,827 | 171,938 | |
Reverse stock split | 0.056 |
SHARE-BASED COMPENSATION - Stat
SHARE-BASED COMPENSATION - Status of restricted stock (Details) | 6 Months Ended | |
May 01, 2024 | Dec. 31, 2023 $ / shares shares | |
Reverse stock split | 0.056 | 0.2 |
Fair Value per Share $18.72 | ||
Outstanding Restricted Shares, Fair Value per Share | $ / shares | $ 18.72 | |
Restricted shares | ||
Reverse stock split | 0.056 | |
Restricted shares | Fair Value per Share $18.72 | ||
Outstanding Restricted Shares, Number | shares | 60,827 | |
Outstanding Restricted Shares, Average Remaining Amortization Period (Years) | 1 year 1 month 28 days |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Mar. 15, 2023 USD ($) $ / shares shares | Mar. 09, 2023 USD ($) $ / shares shares | Feb. 28, 2022 USD ($) $ / shares shares | Jan. 05, 2022 USD ($) $ / shares shares | Dec. 10, 2021 $ / shares shares | Dec. 05, 2021 USD ($) $ / shares shares | Nov. 10, 2021 shares | Aug. 21, 2018 $ / shares shares | Jan. 31, 2022 shares | Aug. 21, 2018 USD ($) $ / shares shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 CNY (¥) shares | Jun. 30, 2023 shares | Dec. 31, 2021 $ / shares | |
SHARE-BASED COMPENSATION | |||||||||||||||
Number of shares expected to be vested | 4,444 | 4,444 | |||||||||||||
Share-Based Payment Arrangement, Option | |||||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||||
Stock or Unit Option Plan Expense | ¥ | ¥ 0 | ¥ 0 | |||||||||||||
Share-based compensation | ¥ | 0 | ||||||||||||||
Restricted shares | |||||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||||
Stock or Unit Option Plan Expense | ¥ 1,070,144 | $ 150,726 | ¥ 4,304,857 | ||||||||||||
Restricted stock closing price | $ / shares | $ 1.60 | $ 1.31 | |||||||||||||
Restricted shares issued for services (in shares) | 250,000 | 500,000 | 250,000 | ||||||||||||
Shares outstanding | 0 | 0 | 0 | ||||||||||||
Exercise price (per share) | $ / shares | $ 0.3726 | $ 1.29 | |||||||||||||
Number of shares issued | 1,000,000 | 1,050,000 | |||||||||||||
Stock issued value for services | $ | $ 372,600 | $ 1,354,500 | |||||||||||||
Restricted shares | Post 2024 Reverse Stock Split | |||||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||||
Restricted stock closing price | $ / shares | $ 28.80 | $ 23.58 | |||||||||||||
Restricted shares issued for services (in shares) | 13,889 | 27,778 | 13,889 | ||||||||||||
Exercise price (per share) | $ / shares | $ 6.71 | $ 23.22 | |||||||||||||
Number of shares issued | 55,556 | 58,333 | |||||||||||||
Restricted shares | Senior Manager | |||||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||||
Stock or Unit Option Plan Expense | ¥ 2,866,560 | $ 403,747 | ¥ 1,796,417 | ||||||||||||
Share-based compensation | ¥ 4,700,000 | $ 700,000 | |||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period, fair value | $ | $ 3,025,000 | $ 1,694,000 | $ 4,175,000 | ||||||||||||
Restricted stock closing price | $ / shares | $ 1.01 | $ 1.06 | $ 1.67 | ||||||||||||
Outstanding Restricted Shares, Average Remaining Amortization Period (Years) | 1 year 1 month 28 days | ||||||||||||||
Granted during the period | 3,000,000 | 1,600,000 | 2,500,000 | ||||||||||||
Restricted shares | Senior Manager | Class B ordinary shares | |||||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||||
Shares outstanding | 0 | 0 | 0 | ||||||||||||
Restricted shares | Employee | |||||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period, fair value | $ | $ 1,708,024 | $ 2,523,240 | |||||||||||||
Exercisable Options, Average Remaining Contractual life (years) | 3 years | 3 years | |||||||||||||
Restricted stock closing price | $ / shares | $ 1.04 | $ 6.45 | $ 6.45 | ||||||||||||
Restricted shares issued (in shares) | 547,444 | ||||||||||||||
Number of shares expected to be vested | 1,094,887 | ||||||||||||||
Granted during the period | 391,200 | ||||||||||||||
Restricted shares | Employee | Post 2024 Reverse Stock Split | |||||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||||
Restricted stock closing price | $ / shares | $ 18.72 | $ 116.10 | $ 116.10 | ||||||||||||
Restricted shares issued (in shares) | 30,414 | ||||||||||||||
Number of shares expected to be vested | 60,827 | ||||||||||||||
Granted during the period | 21,733 | ||||||||||||||
Restricted shares | Employee | Class A ordinary shares | |||||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||||
Shares outstanding | 0 | 0 | 0 | ||||||||||||
Exercise price (per share) | $ / shares | $ 0.3726 | ||||||||||||||
Number of shares issued | 1,000,000 | ||||||||||||||
Stock issued value for services | $ | $ 372,600 | ||||||||||||||
Granted during the period | 1,642,331 | ||||||||||||||
Restricted shares | Employee | Class A ordinary shares | Post 2024 Reverse Stock Split | |||||||||||||||
SHARE-BASED COMPENSATION | |||||||||||||||
Exercise price (per share) | $ / shares | $ 6.71 | ||||||||||||||
Number of shares issued | 55,556 | ||||||||||||||
Granted during the period | 91,241 |
INCOME TAX - Income (loss) befo
INCOME TAX - Income (loss) before provision for income taxes (Details) | 6 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
INCOME TAX | |||
Outside China areas | $ (2,059,369) | ¥ (14,621,317) | ¥ (32,395,145) |
China | (1,181,776) | (8,390,493) | 2,531,634 |
Loss before income tax | $ (3,241,146) | ¥ (23,011,810) | ¥ (29,863,511) |
INCOME TAX - Deferred tax asset
INCOME TAX - Deferred tax assets and liabilities, net (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
Deferred tax assets: | |||
Allowance for credit losses | ¥ 1,285,544 | $ 181,065 | ¥ 1,019,592 |
Impairment for inventory | 35,646 | 5,021 | 90,322 |
Net operating loss carryforwards | 24,263,351 | 3,417,422 | 23,290,731 |
Subtotal | 25,584,541 | 3,603,507 | 24,400,645 |
Less: Valuation allowance | (25,304,762) | (3,564,101) | (24,107,246) |
Total deferred tax assets, net | 279,779 | 39,406 | 293,399 |
Deferred tax liabilities: | |||
Accelerated amortization of intangible assets | (132,891) | (18,717) | (146,511) |
Gain on the previously held equity method investment | (146,888) | (20,689) | (146,888) |
Recognition of customer relationship arising from business combinations | 0 | 0 | 0 |
Total deferred tax liabilities | (279,779) | (39,406) | (293,399) |
Deferred tax assets, net | ¥ 0 | $ 0 | ¥ 0 |
INCOME TAX - NOL expiration (De
INCOME TAX - NOL expiration (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
INCOME TAX | |||
2024 | ¥ 10,484,902 | $ 1,476,768 | |
2025 | 19,617,124 | 2,763,014 | |
2026 | 32,533,742 | 4,582,282 | |
2027 | 27,137,905 | 3,822,294 | |
2028 | 34,868,363 | 4,911,106 | |
Total | ¥ 124,642,036 | $ 17,555,464 | ¥ 133,600,000 |
INCOME TAX - Income tax expense
INCOME TAX - Income tax expense (benefit) (Details) | 6 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
INCOME TAX | |||
Current income tax provision (benefit) | ¥ 96,041 | $ 13,527 | ¥ 9,180 |
Deferred income tax benefit | 0 | 0 | |
Expense for income tax | ¥ 96,041 | $ 13,527 | ¥ 9,180 |
INCOME TAX - Additional Informa
INCOME TAX - Additional Information (Details) | 6 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | |
INCOME TAX | ||||
Federal statutory income tax rate | 25% | 25% | ||
Cumulative net operating loss | ¥ 124,642,036 | $ 17,555,464 | ¥ 133,600,000 | |
Net operating loss expired | 13,200,000 | $ 1,900,000 | ||
Additional NOL incurred by VIEs and VIEs' subsidiaries | ¥ 4,200,000 | $ 600,000 | ||
Nanjing Recon | ||||
INCOME TAX | ||||
Federal statutory income tax rate | 15% | 15% | ||
Beijing Bhd Petroleum Technology Co Ltd | ||||
INCOME TAX | ||||
Federal statutory income tax rate | 15% | 15% |
NON-CONTROLLING INTEREST (Detai
NON-CONTROLLING INTEREST (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | |
NON-CONTROLLING INTEREST | |||||
Paid-in capital | [1] | ¥ 584,275,905 | $ 82,293,540 | ¥ 580,340,061 | |
Accumulated other comprehensive loss | 30,517,774 | 4,298,339 | 35,127,173 | ||
Total non-controlling interests | (10,609,888) | (1,494,371) | (10,056,059) | ||
Non-controlling Interest | |||||
NON-CONTROLLING INTEREST | |||||
Paid-in capital | 6,656,000 | 937,478 | 6,656,000 | $ 917,904 | |
Capital contribution receivable due from non-controlling Interest | (48,870,000) | (6,883,196) | (48,870,000) | (6,739,481) | |
Unappropriated retained earnings (deficit) | (3,155,185) | (444,398) | (2,601,356) | (358,742) | |
Accumulated other comprehensive loss | (30,703) | (4,324) | (30,703) | (4,234) | |
Valuation increase shared by minority shareholders | 34,790,000 | 4,900,069 | 34,790,000 | 4,797,760 | |
Total non-controlling interests | (10,609,888) | $ (1,494,371) | (10,056,059) | $ (1,386,793) | |
BHD | Non-controlling Interest | |||||
NON-CONTROLLING INTEREST | |||||
Paid-in capital | 1,651,000 | 1,651,000 | |||
Unappropriated retained earnings (deficit) | 3,818,698 | 3,477,494 | |||
Accumulated other comprehensive loss | (18,850) | (18,850) | |||
Total non-controlling interests | 5,450,848 | 5,109,644 | |||
Nanjing Recon | Non-controlling Interest | |||||
NON-CONTROLLING INTEREST | |||||
Paid-in capital | 200,000 | 200,000 | |||
Unappropriated retained earnings (deficit) | 3,616,001 | 3,616,001 | |||
Accumulated other comprehensive loss | (11,853) | (11,853) | |||
Total non-controlling interests | 3,804,148 | 3,804,148 | |||
Gan Su BHD | Non-controlling Interest | |||||
NON-CONTROLLING INTEREST | |||||
Paid-in capital | 4,805,000 | 4,805,000 | |||
Capital contribution receivable due from non-controlling Interest | 0 | ||||
Unappropriated retained earnings (deficit) | (6,982,801) | (6,336,893) | |||
Accumulated other comprehensive loss | 0 | ||||
Valuation increase shared by minority shareholders | 0 | ||||
Total non-controlling interests | (2,177,801) | (1,531,893) | |||
Qinghai BHD | Non-controlling Interest | |||||
NON-CONTROLLING INTEREST | |||||
Paid-in capital | 0 | ||||
Capital contribution receivable due from non-controlling Interest | 0 | ||||
Unappropriated retained earnings (deficit) | (1,569,913) | (1,561,196) | |||
Accumulated other comprehensive loss | 0 | ||||
Valuation increase shared by minority shareholders | 0 | ||||
Total non-controlling interests | (1,569,913) | (1,561,196) | |||
FGS | Non-controlling Interest | |||||
NON-CONTROLLING INTEREST | |||||
Capital contribution receivable due from non-controlling Interest | (48,870,000) | (48,870,000) | |||
Unappropriated retained earnings (deficit) | (2,037,170) | (1,796,762) | |||
Valuation increase shared by minority shareholders | 34,790,000 | 34,790,000 | |||
Total non-controlling interests | ¥ (16,117,170) | ¥ (15,876,762) | |||
[1] * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024 and change in capital structure on March 29, 2024. |
CONCENTRATIONS (Details)
CONCENTRATIONS (Details) $ in Millions | 6 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 | Dec. 31, 2023 USD ($) | Dec. 31, 2023 HKD ($) | Jun. 30, 2023 CNY (¥) | |
China | |||||
CONCENTRATIONS | |||||
Cash was on deposit at financial institutions | ¥ 101,200,000 | $ 14.3 | ¥ 45,500,000 | ||
Maximum insured bank deposit | ¥ | 500,000 | ||||
Unprotected cash held in banks | 96,800,000 | 13.6 | 40,000,000 | ||
Hong Kong | |||||
CONCENTRATIONS | |||||
Cash was on deposit at financial institutions | 154,600,000 | 21.8 | 240,300,000 | ||
Maximum insured bank deposit | $ | $ 500,000 | ||||
Unprotected cash held in banks | ¥ 152,900,000 | $ 21.5 | ¥ 238,800,000 | ||
China National Petroleum Corporation | Customer concentration | Sales revenue | |||||
CONCENTRATIONS | |||||
Concentration risk, percentage | 56% | 41% | |||
China National Petroleum Corporation | Customer concentration | Accounts Receivable | |||||
CONCENTRATIONS | |||||
Concentration risk, percentage | 34% | 43% | |||
SINOPEC | Customer concentration | Sales revenue | |||||
CONCENTRATIONS | |||||
Concentration risk, percentage | 19% | 31% | |||
SINOPEC | Customer concentration | Accounts Receivable | |||||
CONCENTRATIONS | |||||
Concentration risk, percentage | 14% | 18% | |||
CNOOC | Customer concentration | Sales revenue | |||||
CONCENTRATIONS | |||||
Concentration risk, percentage | 15% | ||||
CNOOC | Customer concentration | Accounts Receivable | |||||
CONCENTRATIONS | |||||
Concentration risk, percentage | 21% | ||||
Another Customer | Customer One | Accounts Receivable | |||||
CONCENTRATIONS | |||||
Concentration risk, percentage | 14% | ||||
Another Customer | Customer concentration | Sales revenue | |||||
CONCENTRATIONS | |||||
Concentration risk, percentage | 10% | 10% | |||
Another Customer | Customer concentration | Accounts Receivable | |||||
CONCENTRATIONS | |||||
Concentration risk, percentage | 30% |
COMMITMENTS AND CONTINGENCY - P
COMMITMENTS AND CONTINGENCY - Purchase commitment (Details) - Dec. 31, 2023 - Purchase Commitment | CNY (¥) | USD ($) |
Purchase commitment | ||
2024 | ¥ 23,357,995 | $ 3,289,905 |
2025 | 300,000 | 42,254 |
Total minimum payments required | ¥ 23,657,995 | $ 3,332,159 |
COMMITMENTS AND CONTINGENCY - O
COMMITMENTS AND CONTINGENCY - Office Leases Commitment - short term (Details) - Dec. 31, 2023 | CNY (¥) | USD ($) |
Office Leases Commitment - short term | ||
Total lease payments | ¥ 1,071,799 | $ 150,959 |
Office Leases Commitment | ||
Office Leases Commitment - short term | ||
2024 | 692,500 | 97,537 |
Total lease payments | ¥ 692,500 | $ 97,537 |
COMMITMENTS AND CONTINGENCY - A
COMMITMENTS AND CONTINGENCY - Additional Information (Details) | 6 Months Ended | 12 Months Ended | |||||||||||||
Oct. 25, 2023 CNY (¥) | Oct. 25, 2023 USD ($) | Sep. 25, 2023 CNY (¥) | Sep. 25, 2023 USD ($) | Aug. 25, 2023 CNY (¥) | Aug. 25, 2023 USD ($) | Jan. 09, 2023 CNY (¥) | Jan. 09, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 01, 2021 CNY (¥) | Dec. 01, 2021 USD ($) | |
COMMITMENTS AND CONTINGENCY | |||||||||||||||
Severance Payments | ¥ 7,900,000 | $ 1,100,000 | |||||||||||||
Legal contingencies | Henan Puxinfangfu Construction Engineering Co., Ltd. | |||||||||||||||
COMMITMENTS AND CONTINGENCY | |||||||||||||||
Restricted cash balance | ¥ 700,000 | $ 100,000 | |||||||||||||
Trade accounts payable due | ¥ 1,820,000 | $ 300,000 | |||||||||||||
Amount paid to the Plaintiff | 855,197 | 117,937 | |||||||||||||
Amount of damages claimed | ¥ 2,000,000 | $ 300,000 | |||||||||||||
Settlement payment totaling | ¥ 1,800,000 | $ 300,000 | |||||||||||||
Legal contingencies | Jiuquan Third Construction and Installation Engineering Company | |||||||||||||||
COMMITMENTS AND CONTINGENCY | |||||||||||||||
Amount paid to the Plaintiff | ¥ 1,000,000 | $ 140,000 | ¥ 1,000,000 | $ 140,000 | ¥ 1,300,000 | $ 180,000 | |||||||||
Amount of damages claimed | ¥ 2,800,000 | $ 380,000 |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES - Leases from related parties (Details) | 6 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | |
RELATED PARTY TRANSACTIONS AND BALANCES | |||||
Operating lease liabilities | ¥ 1,064,223 | $ 149,892 | ¥ 3,091,290 | ||
Related party | |||||
RELATED PARTY TRANSACTIONS AND BALANCES | |||||
Monthly rent | 94,167 | $ 13,263 | |||
Annual rental expense | 1,100,000 | 160,000 | |||
Rights of use lease assets, net | 113,361 | 15,967 | 335,976 | $ 46,333 | |
Operating lease liabilities | 113,361 | $ 15,967 | ¥ 335,976 | $ 46,333 | |
Founder one | |||||
RELATED PARTY TRANSACTIONS AND BALANCES | |||||
Monthly rent | ¥ 40,000 | $ 5,634 | |||
Lessee, Operating Lease, Period of Contract | April 1, 2022 - March 31, 2024 | April 1, 2022 - March 31, 2024 | |||
Founder two | |||||
RELATED PARTY TRANSACTIONS AND BALANCES | |||||
Monthly rent | ¥ 31,667 | $ 4,460 | |||
Lessee, Operating Lease, Period of Contract | January 1, 2023 - Dec 31, 2023 | January 1, 2023 - Dec 31, 2023 | |||
Founder three | |||||
RELATED PARTY TRANSACTIONS AND BALANCES | |||||
Monthly rent | ¥ 22,500 | $ 3,169 | |||
Lessee, Operating Lease, Period of Contract | January 1, 2023 - Dec 31, 2023 | January 1, 2023 - Dec 31, 2023 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Jun. 30, 2022 CNY (¥) |
Current assets | ||||||
Cash | ¥ 121,848,777 | $ 17,162,041 | ¥ 104,125,800 | |||
Short-term investments | 134,000,000 | 18,866,554 | 184,184,455 | |||
Notes receivable | 12,532,717 | 1,765,196 | 3,742,390 | |||
Accounts receivable, net | 30,813,885 | 4,340,045 | 27,453,415 | |||
Inventories, net | 1,855,535 | 261,347 | 6,330,701 | |||
Other receivables, net | 4,184,778 | 589,414 | 2,185,733 | |||
Loans to third parties | 79,374,144 | 11,179,614 | 123,055,874 | |||
Purchase advances, net | 1,996,413 | 281,189 | 2,680,456 | |||
Contract costs, net | 37,323,824 | 5,256,951 | 49,572,685 | |||
Prepaid expenses | 295,384 | 41,603 | 350,119 | |||
Operating lease right-of-use assets, net - current | 879,288 | 123,845 | ||||
Total current assets | 425,059,299 | 59,868,349 | 504,413,173 | |||
Property and equipment, net | 23,492,024 | 3,308,782 | 24,752,864 | |||
Long-term other receivables, net | 3,640 | |||||
Long-term loan to third parties | 18,500,000 | 2,605,671 | ||||
Operating lease right-of-use assets, net - non-current | 16,204,906 | 2,282,413 | 2,654,900 | |||
Total Assets | 483,256,229 | 68,065,215 | 531,824,577 | |||
LIABILITIES | ||||||
Short-term bank loans | 12,336,285 | 1,737,529 | 12,451,481 | |||
Accounts payable | 12,062,861 | 1,699,018 | 10,791,721 | |||
Other payables | 1,688,166 | 237,773 | 5,819,010 | |||
Other payable- related parties | 2,209,017 | 311,134 | 2,592,395 | |||
Contract liabilities | 4,888,749 | 688,566 | 2,748,365 | |||
Accrued payroll and employees' welfare | 2,399,919 | 338,022 | 2,382,516 | |||
Taxes payable | 1,702,898 | 239,848 | 1,163,006 | |||
Short-term borrowings - related parties | 20,019,889 | 2,819,742 | 20,018,222 | |||
Operating lease liabilities - current | 722,857 | 101,812 | 3,066,146 | |||
Total Current Liabilities | 66,866,018 | 9,417,880 | 61,032,862 | |||
Operating lease liabilities - non-current | 341,366 | 48,080 | 25,144 | |||
Total Liabilities | 67,885,873 | 9,561,524 | 92,673,674 | |||
VIE | ||||||
Current assets | ||||||
Cash | 23,902,252 | 37,661,118 | $ 3,366,562 | |||
Restricted cash | 3,904 | 731,545 | 550 | |||
Short-term investments | 18,000,000 | 0 | 2,535,247 | |||
Notes receivable | 12,532,717 | 3,742,390 | 1,765,196 | |||
Accounts receivable, net | 30,813,885 | 27,453,415 | 4,340,045 | |||
Inventories, net | 1,855,535 | 6,330,701 | 261,347 | |||
Other receivables, net | 4,155,097 | 11,618,275 | 585,233 | |||
Loans to third parties | 26,841,513 | 37,770,188 | 3,780,548 | |||
Purchase advances, net | 1,996,413 | 1,592,761 | 281,189 | |||
Contract costs, net | 32,373,824 | 49,572,685 | 4,559,758 | |||
Prepaid expenses | 193,859 | 121,329 | 27,303 | |||
Operating lease right-of-use assets, net - current | 879,288 | 0 | 123,845 | |||
Total current assets | 153,548,287 | 176,594,407 | 21,626,823 | |||
Property and equipment, net | 23,492,024 | 24,752,864 | 3,308,782 | |||
Long-term other receivables, net | 0 | 3,640 | 0 | |||
Long-term loan to third parties | 18,500,000 | 0 | 2,605,671 | |||
Operating lease right-of-use assets, net - non-current | 1,219,978 | 2,654,900 | 171,830 | |||
Total Assets | 196,760,289 | 204,005,811 | 27,713,106 | |||
LIABILITIES | ||||||
Short-term bank loans | 12,336,285 | 12,451,481 | 1,737,529 | |||
Accounts payable | 12,062,861 | 10,791,721 | 1,699,018 | |||
Other payables | 1,340,788 | 3,904,135 | 188,846 | |||
Other payable- related parties | 2,162,184 | 1,356,915 | 304,537 | |||
Contract liabilities | 4,888,749 | 2,748,361 | 688,566 | |||
Accrued payroll and employees' welfare | 1,077,495 | 1,048,061 | 151,762 | |||
Intercompany payables | 259,617,001 | 263,935,922 | 36,566,290 | |||
Taxes payable | 1,265,868 | 1,163,237 | 178,294 | |||
Short-term borrowings - related parties | 20,019,889 | 20,018,222 | 2,819,742 | |||
Operating lease liabilities - current | 1,038,354 | 3,066,146 | 146,248 | |||
Total Current Liabilities | 315,809,474 | 320,484,201 | 44,480,832 | |||
Operating lease liabilities - non-current | 25,869 | 25,144 | 3,644 | |||
Total Liabilities | 315,835,343 | 320,509,345 | 44,484,476 | |||
RECON TECHNOLOGY LTD | ||||||
Current assets | ||||||
Cash | 34,657,271 | 4,881,375 | 236,146,589 | $ 33,260,551 | ¥ 183,517,938 | ¥ 296,838,959 |
Short-term investments | 115,950,650 | 16,331,307 | ||||
Other receivables, net | 356,442,080 | 50,203,817 | 291,525,426 | |||
Total current assets | 559,618,830 | 78,820,664 | 607,708,032 | |||
Total Assets | 436,942,680 | 61,542,090 | 484,787,542 | |||
LIABILITIES | ||||||
Other payables | 1,448,570 | 204,027 | 3,964,912 | |||
Total Current Liabilities | 9,968,450 | 1,404,027 | 3,964,912 | |||
Total Liabilities | 10,962,436 | 1,544,027 | 35,580,580 | |||
Related party | ||||||
Current assets | ||||||
Operating lease right-of-use assets, net - current | 113,361 | 15,967 | ||||
Operating lease right-of-use assets, net - non-current | 0 | 335,976 | ||||
LIABILITIES | ||||||
Other payables | 2,209,017 | 311,134 | 2,592,395 | |||
Operating lease liabilities - current | 113,361 | $ 15,967 | 335,976 | |||
Operating lease liabilities - non-current | ¥ 0 | ¥ 0 |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) | 6 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | |
Variable Interest Entity [Line Items] | ||||
Revenue | $ 6,374,269 | ¥ 45,256,672 | ¥ 45,559,591 | |
Operating expenses | 4,916,663 | 34,907,808 | 28,202,033 | |
Net loss | 3,176,668 | 22,554,022 | 29,876,418 | |
VIE | ||||
Variable Interest Entity [Line Items] | ||||
Revenue | 6,374,269 | 45,256,672 | $ 6,604,466 | 45,559,591 |
Operating expenses | 3,048,779 | 21,646,029 | 1,687,940 | 11,643,918 |
Net loss | $ (970,498) | ¥ (6,890,440) | $ (431,189) | ¥ (2,974,474) |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 6 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2023 CNY (¥) segment | Dec. 31, 2022 CNY (¥) | |
Number of operating segments | 4 | 4 | |
Total revenue | $ 6,374,269 | ¥ 45,256,672 | ¥ 45,559,591 |
Automation product and software | |||
Total revenue | 2,472,273 | 17,552,892 | 19,055,227 |
Equipment, accessories and others | |||
Total revenue | 2,516,571 | 17,867,404 | 9,730,859 |
Oilfield environmental protection | |||
Total revenue | 1,134,339 | 8,053,696 | 12,789,684 |
Platform Outsourcing Services | |||
Total revenue | $ 251,085 | ¥ 1,782,680 | ¥ 3,983,821 |
SEGMENT REPORTING - Company's r
SEGMENT REPORTING - Company's revenue (Details) | 6 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Revenue | $ 6,374,269 | ¥ 45,256,672 | ¥ 45,559,591 |
Cost of revenue and related tax | 4,669,211 | 33,150,930 | 32,427,772 |
Gross profit | 1,705,058 | 12,105,742 | 13,131,819 |
Depreciation and amortization | 200,985 | 1,426,971 | 1,952,625 |
Total capital expenditures | 199,444 | 2,321,272 | |
Goods transferred at a point in time | |||
Revenue | 40,456,993 | 43,052,594 | |
Services rendered over time | |||
Revenue | 4,799,679 | 2,506,997 | |
Automation product and software | |||
Revenue | 2,472,273 | 17,552,892 | 19,055,227 |
Cost of revenue and related tax | 14,040,976 | 14,955,185 | |
Gross profit | 3,511,916 | 4,100,042 | |
Depreciation and amortization | 253,397 | 524,970 | |
Total capital expenditures | 83,253 | 2,303,311 | |
Automation product and software | Goods transferred at a point in time | |||
Revenue | 14,368,994 | 19,055,227 | |
Automation product and software | Services rendered over time | |||
Revenue | 3,183,898 | ||
Equipment, accessories and others | |||
Revenue | 2,516,571 | 17,867,404 | 9,730,859 |
Cost of revenue and related tax | 12,778,042 | 6,254,015 | |
Gross profit | 5,089,362 | 3,476,844 | |
Depreciation and amortization | 143,927 | 358,954 | |
Total capital expenditures | 116,191 | 3,008 | |
Equipment, accessories and others | Goods transferred at a point in time | |||
Revenue | 17,867,404 | 9,730,859 | |
Oilfield environmental protection | |||
Revenue | 1,134,339 | 8,053,696 | 12,789,684 |
Cost of revenue and related tax | 6,020,271 | 9,988,100 | |
Gross profit | 2,033,425 | 2,801,584 | |
Depreciation and amortization | 1,029,646 | 1,038,342 | |
Oilfield environmental protection | Goods transferred at a point in time | |||
Revenue | 8,053,696 | 10,282,687 | |
Oilfield environmental protection | Services rendered over time | |||
Revenue | 2,506,997 | ||
Platform Outsourcing Services | |||
Revenue | $ 251,085 | 1,782,680 | 3,983,821 |
Cost of revenue and related tax | 311,641 | 1,230,472 | |
Gross profit | 1,471,039 | 2,753,349 | |
Depreciation and amortization | 30,359 | ||
Total capital expenditures | 14,953 | ||
Platform Outsourcing Services | Goods transferred at a point in time | |||
Revenue | 166,899 | ¥ 3,983,821 | |
Platform Outsourcing Services | Services rendered over time | |||
Revenue | ¥ 1,615,781 |
SEGMENT REPORTING - Total asset
SEGMENT REPORTING - Total assets (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) |
Total assets: | |||
Total Assets | ¥ 483,256,229 | $ 68,065,215 | ¥ 531,824,577 |
Automation product and software | |||
Total assets: | |||
Total Assets | 157,269,367 | 22,150,927 | 167,009,315 |
Equipment, accessories and others | |||
Total assets: | |||
Total Assets | 158,131,921 | 22,272,414 | 170,809,759 |
Oilfield environmental protection | |||
Total assets: | |||
Total Assets | 94,285,444 | 13,279,827 | 107,393,609 |
Platform Outsourcing Services | |||
Total assets: | |||
Total Assets | ¥ 73,569,497 | $ 10,362,047 | ¥ 86,611,894 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||
May 01, 2024 shares | Mar. 29, 2024 CNY (¥) shares | Feb. 26, 2024 USD ($) $ / shares shares | Jan. 31, 2024 USD ($) $ / shares shares | Oct. 16, 2023 shares | Mar. 15, 2023 $ / shares shares | Jun. 14, 2021 $ / shares shares | Mar. 31, 2024 $ / shares shares | Dec. 31, 2023 CNY (¥) shares | Jun. 30, 2023 $ / shares shares | Jun. 28, 2024 USD ($) | May 24, 2024 CNY (¥) | Apr. 24, 2024 CNY (¥) | Mar. 29, 2024 USD ($) $ / shares shares | Mar. 28, 2024 USD ($) $ / shares shares | Feb. 22, 2024 USD ($) | Dec. 31, 2023 USD ($) $ / shares shares | Oct. 10, 2023 shares | Dec. 31, 2022 $ / shares shares | Apr. 05, 2021 USD ($) $ / shares shares | Apr. 05, 2021 ¥ / shares | May 23, 2017 CNY (¥) | |
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Ordinary shares, shares outstanding | 7,927,132 | |||||||||||||||||||||
Stock Options, Shares, Granted | 0 | 0 | ||||||||||||||||||||
Reverse stock split ratio | 0.056 | 0.2 | ||||||||||||||||||||
Stock issued during period, shares, stock splits | 0 | |||||||||||||||||||||
Stockholders equity note stock split securities exercisable multiplier | 18 | |||||||||||||||||||||
Gan Su BHD Environmental Technology Co., Ltd | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Capital | ¥ | ¥ 50,000,000 | |||||||||||||||||||||
Paid in capital | ¥ 27,495,000 | $ 3,872,590 | ||||||||||||||||||||
Restricted shares | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Stock Options, Shares, Granted | 0 | 277,778 | ||||||||||||||||||||
Reverse stock split ratio | 0.056 | |||||||||||||||||||||
Pre-funded warrants | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Stock issuance (in shares) | 1,175,000 | 1,175,000 | 2,800,000 | |||||||||||||||||||
Pre-funded warrants | Post 2024 Reverse Stock Split | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Stock issuance (in shares) | 65,278 | 65,278 | 155,556 | |||||||||||||||||||
Class A Ordinary Shares | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Stock issuance (in shares) | 8,827,500 | 6,014,102 | ||||||||||||||||||||
Ordinary shares, shares issued | 1,175,000 | 2,371,573 | 2,306,295 | 2,371,573 | 1,704,766 | |||||||||||||||||
Ordinary shares, shares outstanding | 141,703,218 | 2,371,573 | 2,306,295 | 2,371,573 | 1,175,000 | 1,704,766 | ||||||||||||||||
Reverse stock split ratio | 0.056 | 0.056 | ||||||||||||||||||||
Authorized share capital | $ | $ 58,000 | $ 15,725,000 | $ 15,725,000 | |||||||||||||||||||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | 500,000,000 | 150,000,000 | 500,000,000 | 500,000,000 | 150,000,000 | |||||||||||||||
Ordinary shares, par value (in dollars per share) | (per share) | $ 0.0925 | $ 0.0925 | $ 0.0001 | $ 0.0001 | $ 0.0925 | $ 0.0001 | $ 0.0001 | $ 0.0925 | ¥ 0.62 | |||||||||||||
Class A Ordinary Shares | Post 2024 Reverse Stock Split | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Stock issuance (in shares) | 490,417 | 334,117 | ||||||||||||||||||||
Ordinary shares, shares issued | 65,278 | |||||||||||||||||||||
Ordinary shares, shares authorized | 8,333,333 | |||||||||||||||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 1.67 | $ 1.67 | $ 1.67 | |||||||||||||||||||
Class B ordinary shares | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Ordinary shares, shares issued | 7,100,000 | 7,100,000 | 7,100,000 | 4,100,000 | ||||||||||||||||||
Ordinary shares, shares outstanding | 7,100,000 | 7,100,000 | 7,100,000 | 4,100,000 | ||||||||||||||||||
Authorized share capital | $ | $ 1,850,000 | |||||||||||||||||||||
Ordinary shares, shares authorized | 80,000,000 | 80,000,000 | 80,000,000 | 20,000,000 | 80,000,000 | 80,000,000 | 20,000,000 | |||||||||||||||
Ordinary shares, par value (in dollars per share) | (per share) | $ 0.0001 | $ 0.0001 | $ 0.0925 | $ 0.0001 | $ 0.0001 | $ 0.0925 | ¥ 0.62 | |||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Annual rental expense | ¥ | ¥ 2,280,000 | |||||||||||||||||||||
SUBSEQUENT EVENTS | Guangxi Recon Renewable Resources Technology Co., Ltd | Recon-IN | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Capital | $ | $ 30,000,000 | |||||||||||||||||||||
Paid in capital | $ | $ 1,000,000 | $ 1,000,000 | ||||||||||||||||||||
SUBSEQUENT EVENTS | Bank of Kunlun Co., Ltd. Tuha Branch | Legal contingencies | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Bank deposits of respondents seized and freezed | ¥ | ¥ 848,935.63 | |||||||||||||||||||||
SUBSEQUENT EVENTS | Bank of Kunlun Co., Ltd. Tuha Branch | Gan Su BHD Environmental Technology Co., Ltd | Legal contingencies | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Principal amount | ¥ | ¥ 818,730.95 | |||||||||||||||||||||
Interest amount of loan | ¥ | ¥ 199.51 | |||||||||||||||||||||
Interest rate (as a percent) | 9% | |||||||||||||||||||||
Attorney fees | ¥ | ¥ 30,000 | |||||||||||||||||||||
Preservation agency fee | ¥ | ¥ 4,765 | |||||||||||||||||||||
SUBSEQUENT EVENTS | Class A Ordinary Shares | Depository Trust Company | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Shares requested to transfer agent to issue | 54,727 | |||||||||||||||||||||
SUBSEQUENT EVENTS | Class A Ordinary Shares | Restricted shares | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Stock Options, Shares, Granted | 6,255,483 | |||||||||||||||||||||
Stock Options, Shares, Granted value | $ | $ 988,366 | |||||||||||||||||||||
Stock Options, Shares, Granted (per share) | $ / shares | $ 0.158 | |||||||||||||||||||||
SUBSEQUENT EVENTS | Class A Ordinary Shares | Restricted shares | Post 2024 Reverse Stock Split | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Stock Options, Shares, Granted | 347,527 | |||||||||||||||||||||
Stock Options, Shares, Granted (per share) | $ / shares | $ 2.844 | |||||||||||||||||||||
SUBSEQUENT EVENTS | Class A Ordinary Shares | Private Placement | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Stock issuance (in shares) | 100,000,000 | |||||||||||||||||||||
Stock price | $ / shares | $ 0.11 | |||||||||||||||||||||
Stock issuance | $ | $ 11,000,000 | |||||||||||||||||||||
SUBSEQUENT EVENTS | Class A Ordinary Shares | Private Placement | Post 2024 Reverse Stock Split | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Stock issuance (in shares) | 5,555,559 | |||||||||||||||||||||
Stock price | $ / shares | $ 1.98 | |||||||||||||||||||||
SUBSEQUENT EVENTS | Class B ordinary shares | Restricted shares | ||||||||||||||||||||||
SUBSEQUENT EVENTS | ||||||||||||||||||||||
Stock Options, Shares, Granted | 12,900,000 | |||||||||||||||||||||
Stock Options, Shares, Granted value | $ | $ 2,130,000 | |||||||||||||||||||||
Stock Options, Shares, Granted (per share) | $ / shares | $ 0.17 |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Additional Information (Details) | Dec. 31, 2023 |
VIE | Maximum | |
Condensed financial information of the parent company | |
Percent of consolidated net assets | 25% |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Parent company balance sheets (Details) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 CNY (¥) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Jun. 30, 2022 CNY (¥) | |
Total assets: | |||||||
Cash | ¥ 121,848,777 | $ 17,162,041 | ¥ 104,125,800 | ||||
Short-term investments | 134,000,000 | 18,866,554 | 184,184,455 | ||||
Due from intercompany | 4,184,778 | 589,414 | 2,185,733 | ||||
Total current assets | 425,059,299 | 59,868,349 | 504,413,173 | ||||
Non-current assets | |||||||
Total Assets | 483,256,229 | 68,065,215 | 531,824,577 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Other current liabilities | 1,688,166 | 237,773 | 5,819,010 | ||||
Warrant liability - current | 8,519,880 | 1,200,000 | |||||
Total Current Liabilities | 66,866,018 | 9,417,880 | 61,032,862 | ||||
Warrant liability - non-current | 993,986 | 140,000 | 31,615,668 | ||||
Total Liabilities | 67,885,873 | 9,561,524 | 92,673,674 | ||||
COMMITMENTS AND CONTINGENCIES | |||||||
SHAREHOLDERS' EQUITY | |||||||
Additional paid-in capital | [1] | 584,275,905 | 82,293,540 | 580,340,061 | |||
Accumulated deficit | (192,994,848) | (27,182,756) | (170,440,826) | ||||
Accumulated other comprehensive loss | 30,517,774 | 4,298,339 | 35,127,173 | ||||
Total shareholders' equity | 425,980,244 | 59,998,062 | 449,206,962 | ||||
Total Liabilities and Equity | 483,256,229 | 68,065,215 | 531,824,577 | ||||
Class A ordinary shares [Member] | |||||||
SHAREHOLDERS' EQUITY | |||||||
Common stock value | 27,791 | 3,914 | 26,932 | ||||
Class B ordinary shares [Member] | |||||||
SHAREHOLDERS' EQUITY | |||||||
Common stock value | 4,693 | 661 | 4,693 | ||||
RECON TECHNOLOGY LTD | |||||||
Total assets: | |||||||
Cash | 34,657,271 | 4,881,375 | 236,146,589 | $ 33,260,551 | ¥ 183,517,938 | ¥ 296,838,959 | |
Short-term investments | 115,950,650 | 16,331,307 | |||||
Due from intercompany | 356,442,080 | 50,203,817 | 291,525,426 | ||||
Other current assets | 52,568,829 | 7,404,165 | 80,036,017 | ||||
Total current assets | 559,618,830 | 78,820,664 | 607,708,032 | ||||
Non-current assets | |||||||
Investment in subsidiaries and VIEs | (122,676,150) | (17,278,574) | (122,920,490) | ||||
Total Assets | 436,942,680 | 61,542,090 | 484,787,542 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Other current liabilities | 1,448,570 | 204,027 | 3,964,912 | ||||
Warrant liability - current | 8,519,880 | 1,200,000 | |||||
Total Current Liabilities | 9,968,450 | 1,404,027 | 3,964,912 | ||||
Warrant liability - non-current | 993,986 | 140,000 | 31,615,668 | ||||
Total Liabilities | 10,962,436 | 1,544,027 | 35,580,580 | ||||
COMMITMENTS AND CONTINGENCIES | |||||||
SHAREHOLDERS' EQUITY | |||||||
Additional paid-in capital | 584,275,905 | 82,293,540 | 580,340,061 | ||||
Accumulated deficit | (188,845,919) | (26,598,391) | (166,291,897) | ||||
Accumulated other comprehensive loss | 30,517,774 | 4,298,339 | 35,127,173 | ||||
Total shareholders' equity | 425,980,244 | 59,998,063 | 449,206,962 | ||||
Total Liabilities and Equity | 436,942,680 | 61,542,090 | 484,787,542 | ||||
RECON TECHNOLOGY LTD | Class A ordinary shares [Member] | |||||||
SHAREHOLDERS' EQUITY | |||||||
Common stock value | 27,791 | 3,914 | 26,932 | ||||
RECON TECHNOLOGY LTD | Class B ordinary shares [Member] | |||||||
SHAREHOLDERS' EQUITY | |||||||
Common stock value | ¥ 4,693 | $ 661 | ¥ 4,693 | ||||
[1] * Retrospectively restated for the 1 -for-18 reverse stock split on May 1, 2024 and change in capital structure on March 29, 2024. |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Parent company balance sheets - Additional information (Details) | 6 Months Ended | |||||||||||
May 01, 2024 shares | Mar. 29, 2024 $ / shares shares | Dec. 31, 2023 $ / shares shares | Mar. 28, 2024 $ / shares shares | Oct. 16, 2023 shares | Oct. 10, 2023 shares | Jun. 30, 2023 $ / shares shares | Mar. 15, 2023 $ / shares | Dec. 31, 2022 $ / shares shares | Jun. 14, 2021 $ / shares | Apr. 05, 2021 $ / shares shares | Apr. 05, 2021 ¥ / shares shares | |
Parent company balance sheets | ||||||||||||
Ordinary shares, shares outstanding | 7,927,132 | |||||||||||
Reverse stock split | 0.056 | 0.2 | ||||||||||
Class A ordinary shares [Member] | ||||||||||||
Parent company balance sheets | ||||||||||||
Ordinary shares, par value (in dollars per share) | (per share) | $ 0.0001 | $ 0.0001 | $ 0.0925 | $ 0.0001 | $ 0.0925 | $ 0.0001 | $ 0.0925 | $ 0.0925 | ¥ 0.62 | |||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | 150,000,000 | 500,000,000 | 500,000,000 | 150,000,000 | 150,000,000 | |||||
Ordinary shares, shares issued | 2,371,573 | 1,175,000 | 2,306,295 | 1,704,766 | ||||||||
Ordinary shares, shares outstanding | 141,703,218 | 2,371,573 | 1,175,000 | 2,306,295 | 1,704,766 | |||||||
Reverse stock split | 0.056 | 0.056 | ||||||||||
Class A ordinary shares [Member] | RECON TECHNOLOGY LTD | ||||||||||||
Parent company balance sheets | ||||||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | ||||||||||
Ordinary shares, shares issued | 2,371,573 | 2,306,295 | ||||||||||
Ordinary shares, shares outstanding | 2,371,573 | 2,306,295 | ||||||||||
Class B ordinary shares [Member] | ||||||||||||
Parent company balance sheets | ||||||||||||
Ordinary shares, par value (in dollars per share) | (per share) | $ 0.0001 | $ 0.0001 | $ 0.0925 | $ 0.0001 | $ 0.0001 | $ 0.0925 | ¥ 0.62 | |||||
Ordinary shares, shares authorized | 80,000,000 | 80,000,000 | 20,000,000 | 80,000,000 | 80,000,000 | 20,000,000 | 20,000,000 | |||||
Ordinary shares, shares issued | 7,100,000 | 7,100,000 | 4,100,000 | |||||||||
Ordinary shares, shares outstanding | 7,100,000 | 7,100,000 | 4,100,000 | |||||||||
Class B ordinary shares [Member] | RECON TECHNOLOGY LTD | ||||||||||||
Parent company balance sheets | ||||||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||
Ordinary shares, shares authorized | 80,000,000 | 80,000,000 | ||||||||||
Ordinary shares, shares issued | 7,100,000 | 7,100,000 | ||||||||||
Ordinary shares, shares outstanding | 7,100,000 | 7,100,000 |
CONDENSED FINANCIAL INFORMATI_6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Parent company statements of operations and comprehensive loss (Details) | 6 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
Parent Company Statements Of Operations And Comprehensive Loss | |||
Revenue | $ 6,374,269 | ¥ 45,256,672 | ¥ 45,559,591 |
Cost of revenue | 4,669,211 | 33,150,930 | 32,427,772 |
Gross profit | 1,705,058 | 12,105,742 | 13,131,819 |
General and administrative expenses | 3,104,557 | 22,042,042 | 26,212,540 |
Provision for credit losses | 218,787 | 1,553,364 | (7,141,708) |
Loss from operations | 3,211,605 | 22,802,066 | 15,070,214 |
Gain (loss) in fair value changes of warrants liability | (1,473,412) | (10,461,075) | (20,097,665) |
Other income (expenses) | (1,225,550) | (8,701,288) | 157,753 |
Net loss | (3,254,673) | (23,107,851) | (29,872,691) |
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS | |||
Foreign currency translation adjustment | (649,220) | (4,609,399) | 9,663,701 |
Comprehensive loss attributable to Recon Technology, Ltd | (3,825,888) | (27,163,421) | (20,212,717) |
RECON TECHNOLOGY LTD | |||
Parent Company Statements Of Operations And Comprehensive Loss | |||
General and administrative expenses | 1,647,763 | 11,698,953 | 16,054,522 |
Loss from operations | 1,647,763 | 11,698,953 | 16,054,522 |
Gain (loss) in fair value changes of warrants liability | (273,412) | (1,941,195) | (20,097,665) |
Other income (expenses) | (135,253) | (960,280) | 3,716,168 |
Equity in earnings of subsidiaries, vies and vies' subsidiaries | (1,120,366) | (7,954,486) | 2,559,601 |
Net loss | (3,176,794) | (22,554,914) | (29,876,418) |
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS | |||
Foreign currency translation adjustments related to investments in subsidiaries, VIEs and VIEs' subsidiaries | (649,220) | (4,609,399) | 9,663,701 |
Comprehensive loss attributable to Recon Technology, Ltd | $ (3,826,014) | ¥ (27,164,313) | ¥ (20,212,717) |
CONDENSED FINANCIAL INFORMATI_7
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Parent company statements of cash flows (Details) | 6 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (3,254,673) | ¥ (23,107,851) | ¥ (29,872,691) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Restricted shares issued for management and employees | 403,747 | 2,866,560 | 1,796,417 |
Accrued interest income from loans to third parties | (621,882) | (4,415,298) | (3,757,041) |
Accrued interest income from short-term investment | (331,307) | (2,352,250) | 0 |
Restricted shares issued for services | 150,726 | 1,070,143 | 4,304,857 |
Net cash used in operating activities | (930,972) | (6,609,801) | (25,931,236) |
Cash flows from investing activities: | |||
Repayments from loans to third parties | 6,283,743 | 44,613,948 | 25,194,900 |
Payments made for loans to third parties | (2,338,061) | (16,600,000) | (58,488,100) |
Payments for short-term investments | (18,535,247) | (131,598,400) | 0 |
Net cash (used in) generated by investing activities | 8,670,274 | 61,558,080 | (34,082,522) |
Cash flows from financing activities: | |||
Redemption of warrants | (4,488,317) | (31,866,604) | 0 |
Net cash provided by (used in) financing activities | (4,508,207) | (32,007,826) | 1,523,073 |
Effect of exchange rate fluctuation on cash | (837,352) | (5,945,117) | 10,633,748 |
Net increase (decrease) in cash | 2,393,743 | 16,995,336 | (47,856,937) |
Cash at beginning of period | 104,125,800 | ||
Cash at end of period | 17,162,041 | 121,848,777 | |
RECON TECHNOLOGY LTD | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | (3,176,794) | (22,554,914) | (29,876,418) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Loss (gain) in fair value changes of warrants liability | 1,473,412 | 10,461,075 | 20,097,665 |
Restricted shares issued for management and employees | 403,747 | 2,866,560 | 1,796,417 |
Accrued interest income from loans to third parties | (435,000) | (3,088,457) | |
Accrued interest income from short-term investment | (331,307) | (2,352,250) | |
Restricted shares issued for services | 150,727 | 1,070,144 | 4,304,857 |
Equity in earnings of subsidiaries and VIEs | 1,120,366 | 7,954,486 | (2,559,601) |
Other current assets | 1,026,645 | 7,289,074 | (14,166,457) |
Other current liabilities | (354,421) | (2,516,342) | (1,080,736) |
Net cash used in operating activities | (122,624) | (870,624) | (21,484,273) |
Cash flows from investing activities: | |||
Repayments from loans to third parties | 3,500,000 | 24,849,650 | 20,694,900 |
Payments made for loans to third parties | (48,288,100) | ||
Payments for short-term investments | (16,000,000) | (113,598,400) | |
Due from intercompany, VIEs and VIEs' subsidiaries | 9,143,319 | 64,916,652 | 80,522,546 |
Net cash (used in) generated by investing activities | (21,643,319) | (153,665,402) | (108,115,746) |
Cash flows from financing activities: | |||
Redemption of warrants | (4,488,317) | (31,866,604) | |
Net cash provided by (used in) financing activities | (4,488,317) | (31,866,604) | |
Effect of exchange rate fluctuation on cash | (2,124,916) | (15,086,688) | 16,278,998 |
Net increase (decrease) in cash | (28,379,176) | (201,489,318) | (113,321,021) |
Cash at beginning of period | 33,260,551 | 236,146,589 | 296,838,959 |
Cash at end of period | $ 4,881,375 | ¥ 34,657,271 | ¥ 183,517,938 |