Recon Technology, Ltd. announced that a mainland China variable interest entity's subsidiary, Beijing BHD Petroleum Technology Co., Ltd. ("Beijing BHD") was awarded a new RMB 1.31 million ($0.19 million) contract to provide gas flares for oil and gas fields operated by a leading China oil and gas company in the Northwestern Qinghai province. In total, Beijing BHD has generated RMB8.50 million ($1.22 million) in revenue from awarded bids and contracts for heating furnaces and related accessories since July 2022. Pursuant to the recently awarded contract, the equipment to be supplied by Beijing BHD will be mainly used to manage volatile organic compounds ("VOCs"), or organic chemicals that have a high vapor pressure at room temperature.

Emission of VOCs from crude oil processing are known to adversely affect both the human health and the environment. VOCs can escape during various stages of crude oil processing, from extraction to refinery; thus the crude oil industry is recognized as one of the major sources of VOC releases into the environment, which makes their control and management important.