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Recon Technology, Ltd (NASDAQ: RCON) today announced that a mainland China variable interest entity's subsidiary, Nanjing Recon Technology Co. ("Nanjing Recon"), has achieved preliminary progress on the research and development ("R&D") of a new energy-efficient electric pump that is being conducted at some oilfield sites in China.

The R&D work on the new energy-efficient electric pump commenced on September 2021 Through 18 months of on-site testing, the lab data shows the R&D work has achieved initial experimental results. Electric pumps in oilfield use a lot of energy, signifying great market potential for energy-efficient upgrading. Direct-drive permanent magnet synchronous motor are used as electric pumps in the oilfield water injection process, which are significantly more efficient than the conventional three-drive motors. The model can save electricity by more than 12% compared to the traditional energy-saving practices that may only help save about 5% of the electricity used. The Company expects to launch sale of the new electric pumps in the second half of this year.

Mr. Shenping Yin, Founder and CEO of Recon commented: "We are excited to announce preliminary progress in the R&D work of our new electric pumps after a few months of testing. Each machine is expected to help save electricity expenses by RMB100,000 yuan (or US$14,000) per year. The oilfield company we launched the R&D project with has about 1,500 water pumps and is highly motivated to upgrade to more energy efficient pumps. The new energy efficient pumps meet a big demand from large-scale oilfields to operate more efficiently and that forms an integral part of their energy conservation and emission reduction strategies. We expect to set the price of our new electric pump at hundreds of thousands of RMB (or about US$58,000) per unit and we are also in talks with some prospective clients and anticipate receiving about 20 to 30 orders in 2023."

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