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CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 6 Months Ended
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Dec. 31, 2021
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | NOTE 29. 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 unaudited condensed consolidated interim 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 unaudited condensed consolidated interim 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, 2021 and December 31, 2021, 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 unaudited condensed consolidated interim financial statements, if any. ​ RECON TECHNOLOGY, LTD PARENT COMPANY BALANCE SHEETS (UNAUDITED) ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | June 30, |  | December 31, |  | December 31,
​ | ​ | 2021 | ​ | 2021 | ​ | 2021
​ | ​ | ​ | ​ | RMB | ​ | U.S. Dollars
​ |  | RMB |  | (Unaudited) |  | (Unaudited)
ASSETS |  | ​ |  |  | ​ |  |  | ​ |
Cash |  | ¥ | 325,116,815 |  | ¥ | 287,893,737 | ​ | $ | 45,256,221
Due from subsidiaries, VIEs and VIEs’ subsidiaries* |  | ​ | 148,497,648 |  | ​ | 195,310,788 | ​ |  | 30,702,397
Other current assets |  | ​ | 52,136,194 |  | ​ | 25,824,404 | ​ |  | 4,059,537
Total Current Assets |  | ​ | 525,750,657 |  | ​ | 509,028,929 | ​ |  | 80,018,156
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Non-current assets |  | ​ |  |  | ​ |  | ​ |  |
Investment in subsidiaries and VIEs |  | ​ | (55,308,418) |  | ​ | (55,225,497) | ​ |  | (8,681,319)
Investment in unconsolidated entity |  | ​ | 27,931,795 |  | ​ | — | ​ |  | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total assets |  | ¥ | 498,374,034 |  | ¥ | 453,803,432 | ​ | $ | 71,336,837
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
LIABILITIES AND SHAREHOLDERS’ EQUITY |  | ​ |  |  | ​ |  | ​ |  |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Current liabilities |  | ¥ | 12,643,150 |  | ¥ | 5,416,579 | ​ | $ | 851,474
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Warrant liability |  | ​ | 190,635,850 |  | ​ | 42,239,816 | ​ |  | 6,640,000
LIABILITIES |  | ​ | 203,279,000 |  | ​ | 47,656,395 | ​ |  | 7,491,474
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
COMMITMENTS AND CONTINGENCIES |  | ​ |  |  | ​ |  | ​ |  |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
SHAREHOLDERS’ EQUITY |  | ​ |  |  | ​ |  | ​ |  |
Class A ordinary shares, $0.0925 U.S. dollar par value, 150,000,000 shares authorized; 26,868,391 shares and 27,180,718 shares issued and outstanding as of June 30, 2021 and December 31, 2021, respectively |  | ​ | 16,340,826 |  | ​ | 16,524,894 | ​ |  | 2,597,675
Class B ordinary shares, $0.0925 U.S. dollar par value, 20,000,000 shares authorized; nil shares and 2,500,000 shares issued and outstanding as of June 30, 2021 and December 31, 2021, respectively |  | ​ | — |  | ​ | 1,474,543 | ​ |  | 231,795
Additional paid-in capital |  | ​ | 479,490,763 |  | ​ | 482,163,636 | ​ |  | 75,794,994
Accumulated deficit |  | ​ | (202,711,391) |  | ​ | (91,353,881) | ​ |  | (14,360,616)
Accumulated other comprehensive income (loss) |  | ​ | 1,974,836 |  | ​ | (2,662,155) | ​ |  | (418,485)
Total shareholders’ equity |  | ​ | 295,095,034 |  | ​ | 406,147,037 | ​ |  | 63,845,363
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total liabilities and shareholders’ equity |  | ¥ | 498,374,034 |  | ¥ | 453,803,432 | ​ | $ | 71,336,837
​ * Due from subsidiaries, VIEs and VIEs’ subsidiaries are eliminated upon consolidation. ​ RECON TECHNOLOGY, LTD PARENT COMPANY STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | For the six months ended December 31,
​ | ​ | 2020 | ​ | 2021 | ​ | 2021
​ | ​ | RMB | ​ | RMB | ​ | U.S. Dollars
​ |  | (Unaudited) |  | (Unaudited) |  | (Unaudited)
Revenues |  | ¥ | 123,918 |  | ¥ | — | ​ | $ | —
Cost of revenues |  | ​ | 99,202 |  | ​ | — | ​ |  | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Gross profit |  | ​ | 24,716 |  | ​ | — | ​ |  | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
General and administrative expenses |  | ​ | 6,058,542 |  | ​ | 36,567,864 | ​ |  | 5,748,383
Provision for credit losses |  | ​ | — |  | ​ | 1,916,515 | ​ |  | 301,272
Loss from operations |  | ​ | (6,033,826) |  | ​ | (38,484,379) | ​ |  | (6,049,655)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Fair value changes of warrants liability |  | ​ | — |  | ​ | 147,168,952 | ​ |  | 23,134,614
Other income (loss) |  | ​ | (148,421) |  | ​ | 2,584,170 | ​ |  | 406,225
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Equity in income (loss) of subsidiaries, vies and vies' subsidiaries |  | ​ | (2,753,404) |  | ​ | 88,767 | ​ |  | 13,954
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net income (loss) |  | ¥ | (8,935,651) |  | ¥ | 111,357,510 | ​ | $ | 17,505,140
Foreign currency translation adjustments |  | ​ | (931,366) |  | ​ | (4,631,145) | ​ |  | (728,005)
Foreign currency translation adjustments related to investments in subsidiaries, VIEs and VIEs' subsidiaries |  | ​ | (4,113) |  | ​ | (5,846) | ​ |  | (919)
Comprehensive income (loss) attributable to the company |  | ¥ | (9,867,017) |  | ¥ | 106,720,519 | ​ | $ | 16,776,216
​ ​ RECON TECHNOLOGY, LTD PARENT COMPANY STATEMENTS OF CASH FLOWS (UNAUDITED) ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | For the six months ended December 31,
​ | ​ | 2020 | ​ | 2021 | ​ | 2021
​ | ​ | RMB | ​ | RMB | ​ | U.S. Dollars
​ |  | (Unaudited) |  | (Unaudited) |  | (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES: |  | ​ |  |  | ​ |  |  | ​ |
Net income (loss) |  | ¥ | (8,935,651) |  | ¥ | 111,357,510 | ​ | $ | 17,505,140
Adjustments to reconcile net cash flows from operating activities: |  | ​ |  |  | ​ |  | ​ |  |
Changes in warrants liabilities |  | ​ | — |  | ​ | (147,168,952) | ​ |  | (23,134,614)
Provision for doubtful accounts |  | ​ | — |  | ​ | 1,916,515 | ​ |  | 301,272
Restricted shares issued for management and employees |  | ​ | 3,403,513 |  | ​ | 27,375,871 | ​ |  | 4,303,423
Income from investment in unconsolidated entity |  | ​ | — |  | ​ | (15,411) | ​ |  | (2,423)
Restricted shares issued for services |  | ​ | — |  | ​ | 4,631,063 | ​ |  | 727,992
Interest expenses related to convertible notes |  | ​ | 84,607 |  | ​ | — | ​ |  | —
Equity in earnings of subsidiaries and VIEs |  | ​ | 2,753,404 |  | ​ | (88,767) | ​ |  | (13,954)
Other current assets |  | ​ | 551,826 |  | ​ | (2,448,550) | ​ |  | (384,906)
Other current liabilities |  | ​ | (1,890,271) |  | ​ | (7,226,571) | ​ |  | (1,136,001)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net cash used in operating activities |  | ​ | (4,032,572) |  | ​ | (11,667,292) | ​ |  | (1,834,071)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash flows from investing activities: |  | ​ |  |  | ​ |  | ​ |  |
Repayments from loans to third parties |  | ​ | — |  | ​ | 111,796,100 | ​ |  | 17,574,085
Payments made for loans to third parties |  | ​ | — |  | ​ | (85,851,987) | ​ |  | (13,495,731)
Proceeds from sale of ordinary shares, net of issuance costs |  | ​ | 9,930,015 |  | ​ | — | ​ |  | —
Proceeds from issuance of convertible notes |  | ​ | 42,364,203 |  | ​ | — | ​ |  | —
Due from intercompany, VIEs and VIEs’ subsidiaries |  | ​ | (10,431,998) |  | ​ | (45,913,426) | ​ |  | (7,217,483)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net cash provided by (used in) investing activities |  | ​ | 41,862,220 |  | ​ | (19,969,313) | ​ |  | (3,139,129)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Effect of exchange rate fluctuation on cash |  | ​ | (927,258) |  | ​ | (5,586,473) | ​ |  | (878,180)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net increase (decrease) in cash |  | ​ | 36,902,390 |  | ​ | (37,223,078) | ​ |  | (5,851,381)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
CASH, beginning of period |  | ​ | 22,238,980 |  | ​ | 325,116,815 | ​ |  | 51,107,601
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
CASH, end of period |  | ¥ | 59,141,370 |  | ¥ | 287,893,737 | ​ | $ | 45,256,221
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Non-cash investing and financing activities |  | ​ |  |  | ​ |  | ​ |  |
Cancellation of shares issued |  | ¥ | — |  | ¥ | 27,675,450 | ​ | $ | 4,350,516
​

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI http://asc.fasb.org/extlink&oid=120391182&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=123454820&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
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