The terms and conditions of a definitive agreement are being negotiated between the two parties, with further details to be disclosed upon completion.
Shenping Yin, chief executive of Recon, said: "We are excited about the unique opportunity that QHHY represents. QHHY's expertise in downhole technology will further strengthen and complement our existing product and service offerings.
"In addition, QHHY has demonstrated strong growth and profitability since its inception.
