What changed in this filing

/stocks — the workspaceLOADING

Item 5. Other Information

2014-11-13 compared with 2014-05-15 · 419 added, 411 removed, 665 unchanged (56% of the section changed)

4 unchanged sentences

Specimen Share Certificate (1)

Form of Warrant (2)

Translation of Exclusive Technical Consulting Service Agreement between Recon Technology (Jining) Co., Ltd.

14 unchanged sentences

and Jining ENI Energy Technology Co., Ltd.

Translation of Power of Attorney for rights of Chen Guangqiang in Jining ENI Energy Technology Co., Ltd.

Translation of Power of Attorney for rights of Yin Shenping in Jining ENI Energy Technology Co., Ltd.

Translation of Power of Attorney for rights of Li Hongqi in Jining ENI Energy Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Chen Guangqiang and Jining ENI Energy Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Yin Shenping and Jining ENI Energy Technology Co., Ltd.

Translation of Exclusive Equity Interest Purchase Agreement between Recon Technology (Jining) Co.

Ltd., Li Hongqi and Jining ENI Energy Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Chen Guangqiang and Jining ENI Energy Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Yin Shenping and Jining ENI Energy Technology Co., Ltd.

Translation of Equity Interest Pledge Agreement between Recon Technology (Jining) Co., Ltd., Li Hongqi and Jining ENI Energy Technology Co., Ltd.

Translation of Exclusive Technical Consulting Service Agreement between Recon Technology (Jining) Co., Ltd.

24 unchanged sentences

Operating Agreement among Recon Technology (Jining) Co.

Ltd., Jining ENI Energy Technology Co., Ltd., and Mr.

Yin Shenping, Mr.

Chen Guangqiang and Mr.

Li Hongqi (1)

Operating Agreement among Recon Technology (Jining) Co.

Ltd., Beijing BHD and Mr.

3 unchanged sentences

Subsidiaries of the Registrant (2)

Stock Option Plan (1)

Code of Business Conduct and Ethics (1)

Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

4 unchanged sentences

Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Stock Option Plan (1)

Code of Business Conduct and Ethics (1)

Press Release dated May 15, 2014 (4)

XBRL Instance Document (3)

5 unchanged sentences

Incorporated by reference to the Company’s Registration Statement on Form S-1, Registration No.

Incorporated by reference to the Company’s Report on Form 8-K, filed on November 25, 2013.

Incorporated by reference to the Company’s Quarterly Report on Form 10-Q/A, filed on January 31, 2012.

Filed herewith.

Furnished herewith.

In accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be “filed”

for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

In accordance with the requirements of

1 unchanged sentence

RECON TECHNOLOGY, LTD

Chief Financial Officer

(Principal Financial and Accounting Officer)

In accordance with the requirements of

the Exchange Act, the Company caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

RECON TECHNOLOGY, LTD

November 13, 2014

/s/ Yin Shen ping

1 unchanged sentence

Chief Executive Officer

(Principal Executive Officer)

November 13, 2014

Chief Financial Officer

(Principal Financial and Accounting Officer)

RECON TECHNOLOGY,

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Unaudited Condensed Consolidated Balance Sheets as of June 30, 2013 and March 31, 2014

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the nine and three months ended March 31, 2013 and 2014

Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended March 31, 2013 and 2014

Unaudited Condensed Consolidated Balance Sheets as of June 30, 2014 and September 30, 2014

Unaudited Condensed Consolidated Statements of

Operations and Comprehensive Income (Loss) for the three months ended September 30, 2013 and 2014

Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2013 and 2014

Notes to Unaudited Condensed Consolidated Financial Statements

RECON TECHNOLOGY,

condensed Consolidated Balance Sheets

RECON TECHNOLOGY, LTD

UNAUDITED CONDENSED CONSOLIDATED BALANCE

As of June 30,

As of March 31,

As of September 30,

Current assets

Cash and cash equivalents

Notes receivable

Trade accounts receivable, net

5 unchanged sentences

Purchase advances- related parties

Tax recoverable

Prepaid expenses

Prepaid expenses - related parties

Deferred tax asset

1 unchanged sentence

Property and equipment, net

Long-term investment

Long-term trade accounts receivable, net

Long-term other receivable

12 unchanged sentences

Short-term borrowings- related parties

Short-term borrowings- other

Deferred tax liability

Warrants liability

3 unchanged sentences

dollar par value, 25,000,000 shares authorized;

3,951,811 and 4,528,311 shares issued and outstanding as of June 30, 2013 and March 31, 2014, respectively)

4,717,336 and 4,726,711 shares issued and outstanding as of June 30, 2014 and September 30, 2014, respectively)

Additional paid-in capital

2 unchanged sentences

Accumulated other comprehensive loss

Total controlling shareholders’

Total shareholders’

Non-controlling interest

2 unchanged sentences

condensed consolidated financial statements.

RECON TECHNOLOGY,

condensed Consolidated Statements of OPERATIONS and Comprehensive Income (LOSS)

For the nine months ended

RECON TECHNOLOGY, LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS

OF OPERATIONS AND

COMPREHENSIVE INCOME (LOSS)

For the three months ended

September 30,

Hardware and software

1 unchanged sentence

Total revenues

Cost of revenues

Hardware and software

13 unchanged sentences

Gain (loss) from foreign currency exchange

Other income (expense)

Other expense

Other income (expenses)

Income (loss) before income tax

2 unchanged sentences

Net income attributable to non-controlling interest

Net Income attributable to Recon Technology, Ltd

Net Income (loss) attributable to Recon Technology, Ltd

Comprehensive income (loss)

Net income (loss)

Foreign currency translation adjustment

2 unchanged sentences

Comprehensive income (loss) attributable to Recon Technology, Ltd

Earnings (loss) per common share - basic

Earnings (loss) per common share - diluted

Weighted - average shares -basic

Weighted - average shares -diluted

The accompanying notes are an integral part

of these unaudited condensed consolidated financial statements.

Earnings per common share - basic and diluted

Weighted - average shares -basic and diluted

The accompanying notes are an integral part of these unaudited

condensed consolidated financial statements.

RECON TECHNOLOGY,

condensed Consolidated Statements of Cash Flows

For the nine months ended March 31,

For the three months ended September 30,

Cash flows from operating activities:

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Loss from disposal of equipment

Net income (loss)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Provision/(recovery of) for doubtful accounts

6 unchanged sentences

Trade accounts receivable

(17,127,239 )

Trade accounts receivable-related parties

6 unchanged sentences

Prepaid expense

Prepaid expense - related party, net

Trade accounts payable

7 unchanged sentences

Taxes payable

Net cash provided by (used in) operating activities

(15,283,478 )

Net cash used in operating activities

Cash flows from investing activities:

Purchase of property and equipment

Proceeds from disposal of equipment

Net cash used in investing activities

2 unchanged sentences

Repayments of short-term bank loans

(21,652,952 )

(12,870,000 )

Proceeds from borrowings-related parties

Repayment of short-term borrowings

Repayment of short-term borrowings-related parties

Proceeds from sale of common stock, net of issuance costs

Capital contribution in VIE

Net cash provided by (used in) financing activities

(14,133,091 )

Effect of exchange rate fluctuation on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

Net decrease in cash and cash equivalents

(12,064,475 )

Cash and cash equivalents at beginning of period

3 unchanged sentences

Cash paid during the period for taxes

The accompanying notes are an integral part

of these unaudited condensed consolidated financial statements.

Non-cash investing and financing activities

Cancelation of prior issuance of 40,625 shares of common stock for professional services

The accompanying notes are an integral part of these unaudited

condensed consolidated financial statements.

RECON TECHNOLOGY, LTD

3 unchanged sentences

Organization –

Technology, Ltd (the “Company”) was incorporated under the laws of the Cayman Islands on August 21, 2007 as a company

with limited liability.

The Company provides oilfield specialized equipment, automation systems, tools, chemicals and field services

to petroleum companies in the People’s Republic of China (the “PRC”).

Its wholly owned subsidiary, Recon Technology

Co., Limited (“Recon-HK”) was incorporated on September 6, 2007 in Hong Kong.

Other than the equity interest in Recon-HK,

the Company does not own any assets or conduct any operations.

On November 15, 2007, Recon-HK established one wholly owned subsidiary,

Jining Recon Technology Ltd.

Recon Technology, Ltd (the

“Company”) was incorporated under the laws of the Cayman Islands on August 21, 2007 as a company with limited liability.

The Company provides oilfield specialized equipment, automation systems, tools, chemicals and field services to petroleum companies

in the People’s Republic of China (the “PRC”).

Its wholly owned subsidiary, Recon Technology Co., Limited (“Recon-HK”)

was incorporated on September 6, 2007 in Hong Kong.

Other than the equity interest in Recon-HK, the Company does not own any assets

or conduct any operations.

On November 15, 2007, Recon-HK established one wholly owned subsidiary, Jining Recon Technology Ltd.

(“Recon-JN”) under the laws of the PRC.

Other than the equity interest in Recon-JN, Recon-HK

does not own any assets or conduct any operations.

Other than the equity interest in Recon-JN, Recon-HK does not own any assets

or conduct any operations.

On November 19, 2011, the Company established

one wholly owned subsidiary, Recon Investment Ltd.

(“Recon-IN”) under the laws of HK.

Other than the equity interest

in Recon-IN, The Company does not own any assets or conduct any operations.

The Company conducts its business through

36 unchanged sentences

Basis of Presentation - The

accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally

accepted in the United States of America (“U.S.

GAAP”).

The accompanying unaudited condensed consolidated financial

statements include the accounts of the Company, its subsidiaries, and VIEs for which the Company is the primary beneficiary.

inter-company transactions and balances between the Company, its subsidiaries and VIEs are eliminated upon consolidation.

opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting

only of normal recurring entries, which are necessary for a fair presentation of the results for the interim periods presented.

These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the

Company’s Form 10-K for the fiscal year ended June 30, 2013.

The results of operations for the interim periods presented

may not be indicative of the operating results to be expected for the Company’s fiscal year ending June 30, 2014.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles

generally accepted in the United States of America and have been consistently applied.

These financial statements should be read

in conjunction with the audited financial statements and notes thereto included in the Company’s Form 10-K for the fiscal

year ended June 30, 2014.

The results of operations for the interim periods presented may not be indicative of the operating

results to be expected for the Company’s fiscal year ending June 30, 2015.

Variable Interest Entities - A

8 unchanged sentences

a VIE and whether an entity previous identified as a VIE continues to be a VIE and whether we continue to be the primary beneficiary.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Assets recognized as a result of consolidating

5 unchanged sentences

have been expressed in Chinese Yuan.

The statements as of and for the three and nine months period ended March 31, 2014 have been

translated into United States dollars (“U.S.

The statements as of and for the three months period ended September 30, 2014 have been translated

into United States dollars (“U.S.

dollars”) solely for the convenience of the readers.

The translation has

been made at the rate of ¥6.1619 = US$1.00, the approximate exchange rate prevailing on March 31, 2014.

The translation has been made

at the rate of ¥6.1534 = US$1.00, the approximate exchange rate prevailing on September 30, 2014.

These translated U.S.

dollar amounts should not be construed as representing Chinese Yuan amounts or that the Chinese Yuan amounts have been or could

be converted into U.S.

amounts should not be construed as representing Chinese Yuan amounts or that the Chinese Yuan amounts have been or could be converted

Estimates and assumptions -

5 unchanged sentences

Significant estimates include revenue recognition, allowance for doubtful

accounts, the useful lives of property and equipment and the fair value of stock based payments.

Since the use of estimates is

an integral component of the financial reporting process, actual results could differ from those estimates.

accounts, the useful lives of property and equipment, deferred income tax, warrants liability and the fair value of stock based

Since the use of estimates is an integral component of the financial reporting process, actual results could differ from

those estimates.

Fair Values of Financial Instruments

26 unchanged sentences

are uninsured.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Trade Accounts and Other Receivables

5 unchanged sentences

receivables arise from transactions with non-trade customers.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Purchase Advances - Purchase

9 unchanged sentences

than the cost.

Tax Recoverable –

recoverable represented amounts paid for value added tax ( “

on purchases in the PRC amounting to ¥575,650 at June 30, 2013.

The amount can be used to offset VAT payable on sales made

by the Company.

Property and Equipment -

4 unchanged sentences

the shorter of the lease term or the estimated useful life of the assets.

Long-term investment –

investment in equity over which the Company has the ability to exercise significant influence but not control, and that, in general,

are 20-50 percent owned, are stated at cost plus equity in undistributed net income (loss) of the investee.

These investments are

evaluated for impairment, in which an impairment loss would be recorded whenever a decline in the value of an equity investment

below its carrying amount is determined to be “other than temporary.”

In judging “other than temporary,”

the Company would consider the length of time and extent to which the fair value of the investment has been less than the carrying

amount of the investment, the near-term and longer-term operating and financial prospects of the investee, and the Company’s

longer-term intent of retaining the investment in the investee.

Long-Lived Assets - The Company

10 unchanged sentences

flows expected to be generated by the asset.

There were no impairments at June 30, 2013 and March 31, 2014.

There were no impairments at June 30, 2014 and September 30, 2014.

Revenue Recognition - The

13 unchanged sentences

final acceptance of the arrangement.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

The Company sells self-developed software.

For software sales, the Company recognizes revenues in accordance with ASC Topic 985 - 605 “Software Revenue Recognition”.

Revenue from software is recognized according to project contracts.

Contract costs are accumulated during the periods of installation

and testing or commissioning.

For software sales,

the Company recognizes revenues in accordance with ASC Topic 985 - 605 “Software Revenue Recognition”.

software is recognized according to project contracts.

Contract costs are accumulated during the periods of installation and testing

or commissioning.

Usually this is short term.

Revenue is not recognized until completion of the contracts and receipt

of acceptance statements.

Revenue is not recognized until completion of the contracts and receipt of acceptance

The Company provides services to improve

12 unchanged sentences

form of value-added-tax refund for software products are recognized when received.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Share-Based Compensation -

29 unchanged sentences

number of ordinary shares and dilutive potential ordinary share equivalents outstanding.

Basic net income per share is computed

by dividing net income available to ordinary shareholders by the weighted average number of ordinary shares outstanding during

Diluted income per share is computed by dividing net income by the weighted average number of shares of ordinary shares,

ordinary shares equivalents and potentially dilutive securities outstanding during each period.

Potentially dilutive ordinary

shares consist of ordinary shares issuable upon the conversion of ordinary stock options, restricted shares and warrants (using

the treasury stock method).

For the nine months ended March 31, 2014, there were 57,725 restricted shares included in the

weighted average dilutive shares calculation.

However, the effect from options, restricted shares and warrants would have been

anti-dilutive due to the fact that we incurred a net loss during the three months ended March 31, 2013 and 2014.

Reclassification –

Company made some reclassification of revenue from software - related parties for the three months ended March 31, 2013.

Potentially dilutive ordinary shares consist

of ordinary shares issuable upon the conversion of ordinary stock options, restricted shares and warrants (using the treasury stock

The effect from options and warrants would have been anti-dilutive due to the fact that the exercise prices were

higher than the average stock price during the three months ended September 30, 2013.

The effect from options, restricted shares

and warrants would have been anti-dilutive due to the fact that we incurred a net loss during the three months ended September

Recently Issued Accounting Pronouncements

In June 2014, the FASB issued ASU 2014-12,

“Compensation-Stock Compensation (Topic 718):

Accounting for Share-Based Payments When the Terms of an Award Provide That

a Performance Target Could Be Achieved after the Requisite Service Period,”

(“ASU 2014-12”).

ASU 2014-12 requires

that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance

As such, the performance target should not be reflected in estimating the grant-date fair value of the award.

the issuance of ASU 2014-12, U.S.

GAAP did not contain explicit guidance on how to account for those share-based payments.

reporting entities accounted for performance targets that could be achieved after the requisite service period as performance conditions

that affect the vesting of the award and, therefore, did not reflect the performance target in the estimate of the grant-date fair

value of the award.

Other reporting entities treated those performance targets as non-vesting conditions that affected the grant-date

fair value of the award.

We currently treat performance targets that affect vesting as a performance condition and as such, it

is not included in the grant-date fair value.

Therefore, the impact upon adoption would not be material to our consolidated financial

position or results of operations.

The amendments in ASU 2014-12 are effective for fiscal years and interim periods within those

years, beginning after December 15, 2015.

Earlier application is permitted.

The Company does not expect the adoption of his

guidance will have a significant impact on the Company’s unaudited condensed consolidated financial statements .

In August 2014, The FASB issued ASU 2014-15,

“'Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”

(“ASU 2014-15”).

ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern

within one year of the date of issuance of the entity’s financial statements.

Further, an entity must provide certain disclosures

if "conditions or events raise substantial doubt about an entity’s ability to continue as a going concern."

amendments in ASU 2014-15 are effective for annual periods beginning after 15 December 2015, and interim periods thereafter, with

early adoption permitted.

The Company does not expect the adoption of his guidance will have a significant impact on the Company’s

unaudited condensed consolidated financial statements.

The Company does not expect the adoption of this guidance will have a significant

impact on the Company’s unaudited condensed consolidated financial statements.

In November 2014, The

FASB issued Accounting Standards Update (ASU) No.

2014-16, “Determining Whether the Host Contract in a Hybrid Financial Instrument

Issued in the Form of a Share Is More Akin to Debt or to Equity,”

in response to the EITF’s final consensus on Issue

The ASU requires an entity to “determine the nature of the host contract by considering all stated and implied substantive

terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances”

(commonly referred to as the whole-instrument approach).

The ASU applies to all entities and is effective for annual periods

beginning after December 15, 2015, and interim periods thereafter.

Early adoption is permitted.

The Company is currently in

the process of evaluating the impact of this new standard update.

RECON TECHNOLOGY, LTD

4 unchanged sentences

June 30, 2014

March 31, 2014

September 30,

Trade accounts receivable

2 unchanged sentences

June 30, 2014

March 31, 2014

September 30,

Related Party

Beijing Yabei Nuoda Science and Technology Co.

Beijing Langchen Construction Company

Xiamen Huangsheng Hitek Computer Network Co.Ltd.

Xiamen Henda Hitek Computer Network Co.

Total - related-parties, net

Related Party

June 30, 2014

September 30,

Non-Current Portion

Beijing Yabei Nuoda Science and Technology Co.

Allowance for doubtful accounts

1 unchanged sentence

One of the Founders, Mr.

Yin Shenping,

is the legal representative of Beijing Yabei Nuoda Science and Technology Co.

Shenping, was the legal representative of Beijing Yabei Nuoda Science and Technology Co.

Ltd (“Yabei Nuoda”)

The founder does

not have any equity interest in this company currently.

before December 2013, and Chairman as of end of the quarter ended September 30, 2014.

On October 30, 2014, Mr.

from the chairman position and thus Yabei Nuoda is not related party of the Company after October 30, 2014.

have any equity interest in this company currently.

The receivable from Yabei Nuoda was generated primarily from the sale of

automation system and services based on written contracts.

Based on the repayment agreement signed on August 27, 2014,

the outstanding balance will be collected in four years with each installment of ¥4,015,644.

OTHER RECEIVABLES, NET

1 unchanged sentence

June 30, 2014

March 31, 2014

September 30,

Current Portion

8 unchanged sentences

June 30, 2014

March 31, 2014

September 30,

Non-Current Portion

Due from ENI (A)

(A) Due from ENI represents a working capital loan to the Company’s

The loan balance had been an intercompany balance and was eliminated in the Company’s consolidated financial

statements before the deconsolidation of ENI.

It was reclassified to other receivables after ENI ceased to be a VIE of the Company

on December 16, 2010.

In January 2012, ENI agreed to repay the loan on a payment schedule, and interest is accruing during the

period at an annual rate of 4%.

In accordance with the payment schedule, the principal plus accrued interest is required to be

repaid over approximately three years on a quarterly basis beginning March 2012.

The first four payments were RMB 1.2 million each.

In March, June, September and December of 2012, the Company received an aggregate of RMB 4.8 million.

Starting March 2013, installments

for each quarter would be ¥

The Company has received the payments timely

in March and June of 2013.

On September 30, 2013, ENI proposed to extend the payment period and resigned an agreement with the

According to the new agreement, the remaining balance of this loan would be repaid over four years with installments of

699,147 each quarter including interest.

The payments required after 1 year are RMB

5,993,198 ($972,622).

(A) After ENI ceased to be a VIE of the Company, ENI in January 2012

agreed to repay the loan on a payment schedule, with interest accrued during the period at an annual rate of 4%.

In accordance

with the payment schedule, the principal plus accrued interest is required to be repaid over approximately three years on a quarterly

basis beginning March 2012.

The first four payments are RMB 1.2 million each.

In March, June, September and December of 2012, the

Company received RMB 4.8 million.

Starting March 2013, installments for each quarter would be ¥1,777,653.

The Company has received

the payments on time in March and June, 2013.

On September 30, 2013, ENI proposed to extend the payment period and signed a new

contract with the Company.

According to the new arrangement, the remaining part of this loan will be repaid over four years with

quarterly installments of ¥699,147.

The Company received the payments timely since March 2013.

For the three months period

ended September 30, 2014, the quarterly payment of ¥699,147 was received on October 10, 2014.

(B) Loans to third parties are mainly used for short-term funding

10 unchanged sentences

June 30, 2014

March 31, 2014

September 30,

Name of Related Party

Beijing Yabei Nuoda Science and Technology Co.

Other-travel advances (A)

(A) Other travel advances

were paid to the Company’s management.

Beijing Langchen Construction Company

Other-travel advances

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

PURCHASE ADVANCES

3 unchanged sentences

June 30, 2014

March 31, 2014

September 30,

Prepayment for inventory purchase

Allowance for doubtful accounts

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

is a summary of purchase advances to related party.

Below is a summary of purchase advances to related party.

June 30, 2014

March 31, 2014

September 30,

Related Party

Xiamen Huangsheng Hitek Computer Network Co.

Founders and a family member collectively own 57% of Xiamen Huasheng Haitian Computer Network Co.

Guangxi Dadong Agriculture Co.

(A) One of the Founders and a family member collectively own 57% of

Xiamen Huasheng Haitian Computer Network Co.

(B) One of the Founders and a family member own Guangxi Dadong Agriculture

This advance was repaid to the Company on October 27, 2014 due to the cancelation of the purchase.

Inventories consisted of the following:

June 30, 2014

March 31, 2014

September 30,

Small component parts

3 unchanged sentences

Total inventories

was no inventory obsolescence reserve at June 30, 2013 and March 31, 2014.

was no inventory obsolescence reserve at June 30, 2014 and September 30, 2014.

PROPERTY AND EQUIPMENT, NET

1 unchanged sentence

June 30, 2014

March 31, 2014

September 30,

Motor vehicles

3 unchanged sentences

Property and equipment, net

Depreciation expense was ¥152,757 and

¥156,098 ($25,333) for the three months ended March 31, 2013 and 2014, respectively.

Depreciation expense was ¥467,914 and

¥457,439 ($74,237) for the nine months ended March 31, 2013 and 2014, respectively.

RECON TECHNOLOGY, LTD

1 unchanged sentence

FINANCIAL STATEMENTS

Depreciation expense was ¥150,368 and

¥121,347 ($19,720) for the three months ended September 30, 2013 and 2014, respectively.

LONG-TERM INVESTMENT

June 28, 2013, the Company purchased 2,800,000 restricted shares of Avalon Oil and Gas, Inc.

("Avalon") for $0.089

per share, or approximately ¥1.5 million ($250,000).

Since the restriction for the shares is for two years, the Company

was able to acquire the shares at 50% of the market value.

The investment was accounted for using the equity method and no

gain or loss from equity investment was recorded for the year ended June 30, 2013 due to immateriality.

As of March 31, 2014,

Recon owned 24.4% of Avalon’s outstanding shares due to Avalon issuing more shares.

Avalon is an independent US

domestic oil and natural gas producer listed on the OTCBB under the ticker symbol AOGN.

Avalon is building a portfolio of oil

and gas producing properties to generate asset growth.

Since Avalon’s operating results for the year ended March 31,

2014 were not available as of the filing date, the Company recorded Avalon’s operating results from October to December

its investment loss for the three months ended March 31, 2014.

For the three and nine months ended March 31, 2014, Avalon had

revenue of approximately $35,000 and $94,000, net loss attributable to common shareholders of $0.2 million and $0.6 million,

respectively.

The Company recorded a loss from its equity investment of ¥135,547 ($21,998) and ¥870,627 ($141,292)

for the three and nine months ended March 31, 2014, respectively.

On June 28, 2013, the Company purchased

2,800,000 restricted shares of Avalon Oil and Gas, Inc.

("Avalon") for $0.089 per share, or approximately ¥1.5 million

Since the restriction for the shares is for two years, the Company was able to acquire the shares at 50% of the market

The investment was accounted for using the equity method.

As of June 30, 2014 and September 30, 2014, Recon owned 24.02%

of Avalon’s outstanding shares.

Avalon is an independent US domestic oil and natural gas producer listed on the OTCBB under

the ticker symbol AOGN.

However, based on the available information and discussion with the management team of Avalon, Avalon’s

operating loss would not be recovered in the foreseeable future, therefore, the Company recorded an investment loss of ¥1,535,250

( $250,000) during the year ended June 30, 2014.

OTHER PAYABLES

1 unchanged sentence

June 30, 2014

March 31, 2014

September 30,

Consulting services

Due to ENI (A)

Distributors and employees

(A) A former VIE of the Company, which ceased to be a VIE on December

June 30, 2014

March 31, 2014

September 30,

Related Party

1 unchanged sentence

Expenses paid by the major shareholders

Due to family member of one owner on behalf on Recon

Due to family member of one owner on behalf of Recon

Due to management staff on behalf of Recon

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

(1) Includes an advance from Yabei Nuoda for RMB 61,301 and an advance

6 unchanged sentences

June 30, 2014

March 31, 2014

Business tax payable

September 30,

Enterprise income tax payable

Other taxes payable (receivable)

Other taxes payable

Total taxes payable

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

SHORT-TERM BANK LOANS

1 unchanged sentence

June 30, 2014

March 31, 2014

Communication Bank, 6.6% annual interest, due on November 15, 2014

Beijing Bank, 5.75% annual interest, matures and paid off by February 25, 2014

Beijing Bank, 5.75 % annual interest, matures and paid off by February 27, 2014

Beijing Bank, 5.75 % annual interest, repaid on April 9, 2014

Beijing Bank, 5.75 % annual interest, repaid on April 16, 2014

Beijing Bank, 5.75 % annual interest, matures and paid off by March 11, 2014

Industrial and Commercial Bank, floating interest rate at 6.3%, due on July 28, 2014

Industrial and Commercial Bank, floating interest rate at 6.3%, due on August 8, 2014

Industrial and Commercial Bank, floating interest rate at 6.3%, due on February 17, 2015

September 30,

Industrial and commercial bank, floating interest rate at 5.6%, due on December 24, 2014

Industrial and commercial bank, floating interest rate at 6.0%, due on June 24, 2015

Total short-term bank loans

expense was ¥437,436 and ¥277,445 ($45,026) for the three months ended March 31, 2013 and 2014, respectively.

expense was ¥1,183,845 and ¥754,202 ($122,398) for the nine months ended March 31, 2013 and 2014, respectively.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

SHORT-TERM BORROWINGS

Short-term borrowings are generally extended upon maturity and

consisted of the following:

June 30, 2013

March 31, 2014

Short-term borrowings due to non-related parties:

Short-term borrowing, 6% annual interest, matures and paid off by November 9, 2013

Short-term borrowings with no interest, beginning April 22, 2013, paid off on January 31, 2014

Total short-term borrowings due to non-related parties

expense for short-term borrowings due to non-related parties was ¥16,754 and none for the three months ended March 31, 2013

and 2014, respectively.

expense for short-term borrowings due to non-related parties was ¥56,890 and ¥1,525 ($247) for the nine months ended March

31, 2013 and 2014, respectively.

expense was ¥219,672 and ¥157,511 ($25,597) for the three months ended September 30, 2013 and 2014, respectively.

SHORT-TERM BORROWINGS DUE

TO RELATED PARTIES

Short-term borrowings due to related parties are generally extended

upon maturity and consisted of the following:

June 30, 2014

March 31, 2014

September 30,

Short-term borrowings due to related parties:

Due-on-demand borrowings from Founders, no interest

Short-term borrowing from a Founder's family member, 6% annual interest, matures and paid off by December 21, 2013

Short-term borrowing from a Founder's family member, 6% annual interest, matures and paid off by November 29, 2013

Short-term borrowing from a Founder, 6.6% annual interest,due on December 25, 2014

Short-term borrowings from Xiamen Huasheng Haitian Computer Network Co.

Ltd., no interest, due on November 14, 2014

Short-term borrowings from management, 6% annual interest, matures and paid off by December 7, 2013

Ltd., no interest, due on November 14, 2014, and extended to November 15, 2015

Total short-term borrowings due to related parties

Interest expense for short-term borrowings

due to related parties was ¥151,742 and none for the three months ended March 31, 2013 and 2014, respectively.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Interest expense for short-term borrowings

due to related parties was ¥265,649 and ¥1,441 ($234) for the nine months ended March 31, 2013 and 2014, respectively.

Note 13 –WARRANT LIABILITY

due to related parties was ¥532 and ¥84,333 ($13,705) for the three months ended September 30, 2013 and 2014, respectively.

Note 13 –WARRANTS LIABILITY

In connection with the stock offering in

1 unchanged sentence

shares (see details in Note 14).

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

According to ASC 815-40, if the strike

5 unchanged sentences

These common stock purchase warrants do

not trade in an active securities market, and as such, their fair value is estimated by using the Cox-Ross-Rubinstein (CRR) Binomial

not trade in an active securities market, and as such, their fair value is estimated by using the Black–Scholes Option Pricing

Model using the following assumptions:

September 30,

Annual dividend yield

15 unchanged sentences

within the fair value hierarchy the warrants liability that was accounted at fair value on a recurring basis.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Fair Value Measurement at

1 unchanged sentence

Carrying Value at

March 31, 2014

June 30, 2014

Warrants liability

Fair Value Measurement at

Carrying Value at

September 30, 2014

Warrants liability

The following

is a reconciliation of the beginning and ending balance of the warrant liability measured at fair value on a recurring basis for

nine months ended March 31, 2014:

three months ended September 30, 2014:

Change of warrants liability

Beginning balance - June 30, 2014

Initial measurement of warrants liability on November 29, 2013

Change of warrant liability from November 29, 2013 to March 31, 2014

Ending balance - March 31, 2014

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Change of warrant liability

Ending balance -September 30, 2014

SHAREHOLDERS’

Stock offering –

On November 25, 2013, the Company entered into a securities purchase agreement (“Purchase Agreement”)

with certain institutional investors for the sale of 546,500 ordinary shares in a registered direct offering at the price of $4.81

per ordinary share (amended to $4.30 per ordinary share on November 29, 2013).

proceeds received from the stock offering, after deducting underwriter commission and other associated fees, were ¥12,132,882

(approximately $2.0 million).

In addition, warrants to purchase 163,950 ordinary shares in the aggregate were issued to the investors.

The warrants will be exercisable immediately as of the date of issuance at an exercise price of $6.01 per ordinary share (amended

to $5.38 per ordinary share on November 29, 2013) and expire three years from the date of issuance.

The Company also issued warrants

to purchase 54,650 ordinary shares to the placement agent (“Placement Agent Warrant”).

The Placement Agent Warrants

are on substantially the same terms as the warrants issued pursuant to the Purchase Agreement, except that these warrants are not

exercisable for a period of six months and will expire three years from the initial exercise date.

In addition to the above warrants issued to the placement agent,

the Company granted warrants for 170,000 shares in connection with its IPO offering, and none of these warrants was exercised during

offering –

On November 25, 2013, the Company entered into a securities purchase

agreement (“Purchase Agreement”) with certain institutional investors for the sale of 546,500 ordinary shares in a

registered direct offering at the price of $4.81 per ordinary share (amended to $4.30 per

ordinary share on November 29, 2013).

The net cash proceeds received from the stock offering, after deducting underwriter commission

and other associated fees, were ¥12,132,882 (approximately $2.0 million).

In addition, warrants to purchase 163,950 ordinary

shares in the aggregate were issued to the investors.

The warrants will be exercisable immediately as of the date of issuance at

an exercise price of $6.01 per ordinary share (amended to $5.38 per ordinary share on November 29, 2013) and expire three years

from the date of issuance.

The Company also issued warrants to purchase 54,650 ordinary shares to the placement agent (“Placement

Agent Warrant”).

The Placement Agent Warrants are on substantially the same terms as the warrants issued pursuant to the

Purchase Agreement, except that these warrants are not exercisable for a period of six months and will expire three years from

the initial exercise date.

In addition to the above warrants issued to the placement

agent, the Company granted warrants for 170,000 shares in connection with its IPO offering, and none of these warrants was

exercised during this period.

Appropriated Retained Earnings

5 unchanged sentences

of the companies.

As of June 30, 2013 and March 31, 2014, the balance of total statutory reserves was ¥3,023,231 and ¥4,868,048

($790,024), respectively.

As of June 30, 2014 and September 30, 2014, the balance of total statutory reserves was ¥4,148,929 ($674,250).

STOCK-BASED COMPENSATION

9 unchanged sentences

following weighted-average assumptions:

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

Stock price at grant date

13 unchanged sentences

of options forfeited by employees by leaving or being terminated before vesting.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

The Company recognizes compensation cost

2 unchanged sentences

fair value of the options was ¥30.17 ($4.42) per share.

Options Plan –

The Company granted options to purchase 415,000

ordinary shares to its employees and a non-employee director on March 26, 2012.

The options have an excise price of $2.96, which

was equal to the share price of the Company’s ordinary shares at March 26, 2012, and will vest over a period of five years,

with the first 20% vesting on March 26, 2013.

The options expire ten years after the date of grant, on March 26, 2022.

The Company granted options to purchase 415,000 ordinary shares to its employees and non-employee director on

March 26, 2012.

The options have an excise price of $2.96, which was equal to the share price of the Company’s ordinary shares

at March 26, 2012, and will vest over a period of five years, with the first 20% vesting on March 26, 2013.

The options expire

ten years after the date of grant, on March 26, 2022.

The Company recognizes

6 unchanged sentences

Outstanding as of July 1, 2014

Outstanding as of March 31, 2014

Outstanding as of September 30, 2014

The following

is a summary of the status of options outstanding and exercisable at March 31, 2014:

is a summary of the status of options outstanding and exercisable at September 30, 2014:

Outstanding Options

4 unchanged sentences

Contractual life

During the three and nine months ended

March 31, 2014, the Company has granted restricted shares of common stock to senior management and consultants as follow:

On October 31, 2013, the Company issued 30,000 restricted shares

to a consulting firm for consulting services.

The total value amounted to ¥407,972 ($66,420), based on the stock closing price

of $2.21 at September 30, 2013.

During the three months September 30, 2014,

the Company has granted restricted shares of common stock to consultants as follow:

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

On July 19, 2014, the Company granted

50,000 restricted shares to a non-affiliate as compensation for certain consulting service.

The fair value of the restricted shares

was $190,000 based on the closing stock price $3.8 at July 18, 2014.

On May 7, 2014, the Company granted 40,625

restricted shares to a consulting firm for consulting services.

The total value amounted to ¥1,002,362 ($162,906), based on

the stock closing price of $4.01 at May 7, 2014.

On July 19, 2014, the Company decided to

cancel 40,625 restricted shares, as the services were not provided

pursuant to the agreement it had with the Company.

On December 13, 2013, the Company granted

5 unchanged sentences

with one third of the shares vesting every year from the grant date.

Share-based compensation expense recorded for restricted shares

granted were ¥352,324 ($57,399) and ¥418,553 ($68,241) for the three and nine months ended March 31, 2014.

Total unrecognized

share-based compensation expense for these shares as of March 31, 2014 was approximately ¥3.8 million ($0.6 million), which

are expected to be recognized over a weighted average period of approximately 2.71 years.

The Share-based compensation expense recorded

for stock options granted were ¥451,573 and ¥412,311 ($67,476) for the three months ended March 31, 2013 and 2014, respectively.

The total share-based compensation expense recorded for stock options granted were ¥1,358,726 and ¥1,660,144 ($269,421)

for the nine months ended March 31, 2013 and 2014, respectively.

The total unrecognized share-based compensation expense for stock

options as of March 31, 2014 was approximately ¥2.7 million ($0.5 million), which is expected to be recognized over a weighted

average period of approximately 2.66 years.

RECON TECHNOLOGY, LTD

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

for restricted shares granted were ¥353,437 ($57,399) for the three months ended September 30, 2014.

Total unrecognized share-based

compensation expense for these shares as of September 30, 2014 was approximately ¥3.1 million ($0.5 million), which are expected

to be recognized over a weighted average period of approximately 2.21 years.

The Share-based compensation expense recorded

for stock options granted were ¥414,954 and ¥247,141 ($40,136) for the three months ended September 30, 2013 and 2014,

respectively.

The total unrecognized share-based compensation expense for stock options as of September 30, 2014 was approximately

¥2.0 million ($0.3 million), which is expected to be recognized over a weighted average period of approximately 2.49 years.

Following is a summary of the restricted

1 unchanged sentence

Restricted stock grants

Nonvested as of June 30, 2013

Nonvested as of March 31, 2014

Nonvested as of July 1, 2014

Nonvested adjustment

Nonvested as of September 30, 2014

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.

For the calendar years 2013 and 2014, Nanjing Recon is

subject to an income tax rate of 15%.

taxes in the United States or the Cayman Islands and had minimal operations in jurisdictions other than the 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%.

The Company reapplied for high-technology

enterprise approval and has passed all relevant reviews.

Thus, for the calendar years 2013 and 2014, Nanjing Recon is subject to

an income tax rate of 15%.

As approved by the domestic tax authority

3 unchanged sentences

June 30, 2014

March 31, 2014

September 30,

Allowance for doubtful receivables

Total deferred income tax assets

The Company’s tax provision (benefit) is comprised of

the following:

For the three months ended March 31,

Current income tax provision (benefit)

Deferred income taxes provision (benefit)

Provision (benefit) for income tax

RECON TECHNOLOGY, LTD

1 unchanged sentence

FINANCIAL STATEMENTS

For the nine months ended March 31,

Deferred tax liability is comprised of the following:

June 30, 2014

September 30,

Temporary difference - accounts payable

Total deferred income tax liability

The Company’s tax provision is comprised of the following:

For the three months ended September 30,

Current income taxes

9 unchanged sentences

Total non-controlling interest

As of March 31, 2014

As of September 30, 2014

Paid-in capital

2 unchanged sentences

Total non-controlling interest

CONCENTRATIONS

For the three months ended March 31, 2013

and 2014, the two largest customers, China National Petroleum Corporation (“CNPC”) and China Petroleum & Chemical

Corporation Limited (“SINOPEC”), represented 25.05%, 32.56% and 13.80%, 24.80% of the Company’s revenue, respectively.

For the nine months ended March 31, 2013

and 2014, the two largest customers, China National Petroleum Corporation (“CNPC”) and China Petroleum & Chemical

Corporation Limited (“SINOPEC”), represented 27.86%, 44.32% and 46.62%, 19.64% of the Company’s revenue, respectively.

For the three and nine months ended March

31, 2013, one supplier, Hebei Huanghua Xiangtong Technical Co.

Ltd, accounted for 15.31% and 24.90% of the company’s total

For the three months ended March 31, 2014, three major suppliers accounted for 66.4% of the company’s total purchases.

For the nine ended March 31, 2014, two major suppliers accounted for 33.7% of the company’s total purchases.

RECON TECHNOLOGY, LTD

1 unchanged sentence

FINANCIAL STATEMENTS

COMMITMENTS AND CONTINGENCY

CONCENTRATIONS

For the three months ended September 30,

2013 and 2014, our two largest customers, China National Petroleum Corporation (“CNPC”) and China Petroleum & Chemical

Corporation Limited (“SINOPEC”), represented 37.53%, 34.16% and 46.65%, 1.64% of the Company’s revenue, respectively.

For the three months ended September

30, 2013, four major suppliers accounted for 71.9%

of the company’s total purchase.

For the three months ended September 30, 2014, two major suppliers accounted for 25% of

the company’s total purchases.

COMMITMENTS AND

(a) Office Leases

1 unchanged sentence

offices in Beijing (two for BHD;

one for Recon-JN), one office in Jining for Recon-JN and one office in Nanjing for Nanjing Recon.

Future payments under such leases are as follows as of March 31, 2014:

Twelve months ending March 31,

one for Recon-JN), and one office in Nanjing for Nanjing Recon.

Future payments under such leases

are as follows as September 30, 2014:

Twelve months ending September 30,

Office lease payment

5 unchanged sentences

provided by the employees.

As of March 31, 2014, the Company estimated its severance payments of approximately ¥1.3 million

As of September 30, 2014, the Company estimated its severance payments of approximately ¥1.4 million

($0.2 million) which has not been reflected in its unaudited condensed consolidated financial statements because the Company has

3 unchanged sentences

to related parties consisted of the following:

For the three months ended March 31,

Beijing Yabei Nuoda Science and Technology Co.

Xiamen Huangsheng Hitek Computer Network Co.

Revenues from related parties

For the nine months ended March 31,

For the three months ended September 30,

Beijing Yabei Nuoda Science and Technology Co.

Xiamen Henda Haitian computer network Inc

Xiamen Huangsheng Hitek Computer Network Co.

Revenues from related parties

Leases from related parties

- The Company has various agreements for the lease of office space owned by the Founders and their family members.

terms of the agreement state that the Company will continue to lease the property at a monthly rent of ¥93,333 with the annual

rental expense at approximately ¥1.1 million ($0.2 million).

The two-year lease agreements between Nanjing Recon and Mr.

and his family member started from July 10, 2012, the one-year lease agreements between BHD and Mr.

Chen Guangqiang and his family

member started from January 1, 2014 and the annual lease between the Company and Mr.

Chen Guangqiang’s family member started

from July 1, 2013.

RECON TECHNOLOGY, LTD

1 unchanged sentence

FINANCIAL STATEMENTS

Purchases from related parties –

from related parties consisted of the following:

For the three months ended September 30,

Xiamen Hengda Hitek Computer Network Co.

Purchase from related parties

accounts payable to related parties - The Company owed ¥0 and ¥389,143 ($63,240) to one related party as of

June 30, 2014 and September 30, 2014 .

advance to related parties - The Company paid ¥394,034 and ¥1,500,000 ($243,767) to related parties for materials

as of June 30, 2014 and September 30, 2014 .

Leases from related parties - The

Company has various agreements for the lease of office space owned by the Founders and their family members.

of the agreement state that the Company will continue to lease the property for two years at a monthly rent of ¥95,000 with

the annual rental expense at approximately ¥1.1 million ($0.2 million).

The two-year lease agreements between Nanjing Recon

Yin and his family member started from July 10, 2014, the one-year lease agreements between BHD and Mr.

Chen Guangqiang

and his family member started from January 1, 2014 and the annual lease between the Company and Mr.

Chen Guangqiang’s family

member started from July 1, 2013.

Short-term borrowings from related

parties - The Company borrowed ¥5,503,279 and ¥200,000 ($32,458) from the Founders, their family members and senior

officers as of June 30, 2013 and March 31, 2014, respectively.

For the specific terms and interest rates of the borrowings, please

Trade accounts payable to related

parties - The Company owed ¥3,994,718 and ¥0 to one related party as of June 30, 2013 and March 31, 2014.

March 31, 2014, BHD was no longer a related party to this supplier.

parties - The Company borrowed ¥5,207,728 and ¥5,209,561 ($846,615) from the Founders, their family members and

senior officers as of June 30, 2014 and September 30, 2014, respectively.

For the specific terms and interest rates of the borrowings,

please see Note 12.

Expenses paid by the owner on behalf of Recon - One

2 unchanged sentences

Chen paid certain operating expense for the Company.

30, 2013 and March 31, 2014, ¥467,499 and ¥570,595($92,600) was due to them, respectively.

30, 2014 and September, 2014, ¥284,370 and ¥459,252 ($74,634) was due to them, respectively.

Variable Interest Entities

5 unchanged sentences

June 30, 2014

March 31, 2014

September 30,

Current Assets

1 unchanged sentence

Trade accounts receivable, net

Notes receivable

Purchase advances

6 unchanged sentences

Total Liabilities

financial performance of VIEs reported in the condensed consolidated statement of income and comprehensive income for the three

months ended March 31, 2014 includes revenues of ¥18,232,470 ($2,958,904), gross profit of ¥5,244,955 ($851,191), operating

expenses of ¥3,541,603 ($574,758), other expense of ¥135,913($22,057) and a net

income of ¥1,416,651($229,905).

financial performance of VIEs reported in the unaudited condensed consolidated statement of income and comprehensive income

for the three months ended September 30, 2014 includes revenues of ¥4,303,999 ($699,451), gross profit of ¥615,313

($99,996), operating expenses of ¥2,511,735 ($408,187), other expense of ¥31,725($5,156) and

a net loss of ¥1,958,392($318,262).

RECON TECHNOLOGY, LTD

1 unchanged sentence

FINANCIAL STATEMENTS

financial performance of VIEs reported in the condensed consolidated statement of income and comprehensive income for the nine

months ended March 31, 2014 includes revenues of ¥76,011,506 ($12,335,725), gross profit of ¥27,060,468 ($4,391,579), operating

expenses of ¥13,417,176 ($2,177,441), other income of ¥265,463 ($43,081) and a

net income of ¥12,298,778($1,995,939).

Subsequent events

01, 2014, shareholders of BHD and representative of Recon-JN approved the resolution to increase the registered capital of BHD

from RMB 12 million to RMB 15 million.

BHD has provided the document to the registration authority for approval.

The increase in

the registered capital will be paid by Mr.

Chen Guangqiang, CTO of the Company, and the fund should be in place no later than

December 31, 2014.

On April 22, 2014, the Chief Executive Office and

Chief Technology Officer of the Company exercised their stock options to purchased 52,000 shares of the Company’s

common stock for RMB 948,559 ($153,920).

The transaction was completed on May 13, 2014.

6, 2014, the board of directors of the Company had approved to retain Expert Asia Investment Ltd.

(“EAI”) for

financial advisory and investor relations services.

The board of directors also approved the issuance of 40,625 of restricted shares

for the finder services in connection with the securities purchase agreement provided by EAI.

SUBSEQUENT EVENT

18, 2014, the Company received ¥6,000,000 ($975,071) loan from a founder of the Company.

This loan is due on October 20, 2015

with a floating annual interest rate of 120% of the benchmark interest rate per year.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 5. Other Information