Recon Announces FGS’ Partnership with Ping An WanLiTong and PetroChina to Promote Deep Expansion of Ping An Group’s Business in Energy and Transportation Sector

May 25, 2021

BEIJING, May 25, 2021 /PRNewswire/ — Recon Technology, Ltd (NASDAQ: RCON) ("Recon" or the "Company") today announced that its subsidiary Future Gas Station (Beijing) Technology Company Limited ("FGS"), Shenzhen Wanlitong Network Information Technology Co., Ltd ("WanLiTong"), a subsidiary of Ping An Insurance (Group) Company of China, Ltd. ("Ping An") managing Ping An's loyalty points program (the "Program"), and Zhejiang Sales Branch of PetroChina Co., Ltd. ("PetroChina") signed a business cooperation agreement (the "Agreement") to further promote Ping An's business expansion plans and the Program in PetroChina's gas stations in Zhejiang, China.

Pursuant to the Agreement, the parties will cooperate to facilitate the sales of oil products in PetroChina's gas stations with a favorable price available to Ping An's customers and loyalty points consumption under the Program. The Program offers point accrual and point exchange and acts as a points redemption platform. FGS will act as the technical service provider to connect PetroChina's system with the Program's system so the Program's members could refuel at PetroChina's gas stations and finish the payment through the Program. Through this cooperation, the 600 million members of the Program will be able to redeem their points into coupons and use the coupons as part of the payment when refueling at PetroChina's gas stations.

Management Comments

Mr. Song Yang, a founder and the CEO of FGS, said, "We are pleased to establish a further deep partnership with Ping An. We will assist the two leading groups in China, PetroChina and Ping An, to achieve cross-platform cooperation, data interoperability and membership program sharing. With this cooperation, FGS will assist PetroChina to further drive sales by boosting digital transactions, and also encourage the drivers to purchase goods sold in the convenient stores associated with PetroChina's gas stations. At the same time, by empowering Ping An's 'Pocket Bank' and 'E-WALLET' mobile applications, we will also be able to help PetroChina export more benefits to Ping An's millions of loyal customers in a timely manner. Our ultimate goal is to work together to provide a more convenient and faster refueling experience for vehicle owners."

Mr. Song Yang added, "We started to cooperate with Ping An and PetroChina through an agreement signed with Zhejiang Branch of Ping An Property & Casualty Insurance Company of China, Ltd. ('Ping An Property Insurance') and Zhejiang Sales Branch of PetroChina in 2019. That agreement was signed to combine the data management capabilities of FGS and marketing capabilities of Ping An Property Insurance to facilitate digital transformation of PetroChina's gas stations in Zhejiang Province. That agreement is still effective. Since the signing of the agreement, FGS has provided refueling services to over 335,297 car owners using the Ping An Property Insurance platform, with a cumulative refueling amount of over RMB 616 million. As the cooperation escalates through the new agreement, we expect to use our technology to help Ping An further realize the conversion and cooperation of cross-industry resources, such as points and marketing expenditures of enterprise platforms in the gas station scenario. These efforts will also help us to improve our operation and profitability. In the future, we plan to continue to assist PetroChina to export its online transaction solutions to more business customers".

About WanLiTong Loyalty Points Program (the "Program") of Ping An

The Program is a leading technologically advanced rewards exchange platform in China, dedicated to breaking the barriers of points consumption, realizing points interoperability, providing rich points usage scenarios, and creating the user value of "points not wasted, points spent as money." It primarily covers areas such as comprehensive financial services, business travel, daily consumption, etc., and aims to create a wonderful journey for its members and families around the concept of "everywhere, everything, everyday." Members of the Program can receive bonus points while enjoying comprehensive financial services including insurance, deposits, wealth management products, and credit card spending offered by Ping An and its subsidiaries, or making purchases and/or business travel bookings through designated merchandising partners. Members can redeem points for air tickets, vacation, digital appliances and other gifts. By the end of 2020, the annual transaction scale of the Program reached RMB 6.5 billion.

About Future Gas Station (Beijing) Technology, Ltd. ("FGS")

Established in January 2016, FGS is a service company focusing on providing new technical applications and data operations to gas stations of oil companies such as PetroChina Co., Ltd. With its DT Refuel mobile application and related mini programs embedded into WeChat and Alipay, two mobile applications widely used in China, FGS provides solutions to gas stations to improve their operations and their customers' experience. FGS aims to facilitate the digital transformation of gas stations through integration of internet technique and algorithms, and to help transform gas stations into comprehensive service providers.

About Recon Technology, Ltd ("RCON")

Recon Technology, Ltd (NASDAQ: RCON) is China's first NASDAQ-listed non-state owned oil and gas field service company. Recon supplies China's largest oil exploration companies, Sinopec (NYSE: SNP) and The China National Petroleum Corporation ("CNPC"), with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measure for increasing petroleum extraction levels, reducing impurities and lowering production costs. Through the years, RCON has taken leading positions on several segmented markets of the oil and gas filed service industry. RCON also has developed stable long-term cooperation relationship with its major clients, and its products and service are also well accepted by clients. For additional information please visit: http://www.recon.cn/.

Safe Harbor Statement

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, the effect of novel coronavirus and other health matters on target markets, and other risks contained in reports filed by the company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information, please contact:

Ms. Liu Jia
Chief Financial Officer
Recon Technology, Ltd
Phone: +86 (10) 8494-5188
Email: [email protected]