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Recon Technology, Ltd Reports Financial Year Results for Fiscal Year 2026

RCON
  • Recon Technology, Ltd (NASDAQ: RCON) reported fiscal year 2026 financial results for the period ended June 30, 2026.
  • Total revenue increased 65.8% year-over-year to RMB109.9 million ($16.2 million) from RMB66.3 million ($9.8 million) in 2025.
  • Gross profit rose to RMB36.5 million ($5.4 million) from RMB15.2 million ($2.2 million), with gross margin expanding to 33.2% from 23.0%.
  • Net loss narrowed to RMB31.6 million ($4.7 million) from RMB43.7 million ($6.4 million) in the prior year, representing a 27.6% reduction.
  • Revenue from automation products & software surged 104.5% to RMB35.6 million, driven by a RMB44.2 million increase from overseas oilfield projects.
  • Revenue from equipment & accessories grew 51.2% to RMB9.4 million, fueled by rising domestic demand for maintenance.
  • Revenue from oilfield environmental protection increased 19.4% to RMB2.0 million due to higher settlement prices for wastewater treatment clients.
  • Revenue from platform outsourcing services dropped 100% to zero as client strategic shifts terminated third-party cooperation.
  • Cost of revenue increased to RMB73.4 million ($10.8 million) from RMB51.0 million, primarily due to higher automation product sales.
  • Selling expenses decreased 43.6% to RMB5.2 million, while general \& administrative expenses rose 11.8% to RMB55.4 million.
  • Research \& development expenses declined 21.7% to RMB12.9 million from RMB16.4 million in 2025.
  • Loss from operations improved to RMB41.2 million ($6.1 million) from RMB57.3 million ($8.4 million), driven by higher gross profit.
  • A gain of RMB671 ($99) was recorded on the change in fair value of warrant liability, down from RMB6,226 ($917) in 2025.
  • Net interest income decreased to RMB10.9 million ($1.6 million) from RMB12.3 million ($1.8 million) due to partial loan repayments.
  • Other net expenses totaled RMB1.3 million ($0.2 million), influenced by the closure of the Qinghai BHD unit \& foreign exchange fluctuations.
  • Cash \& short-term investments stood at RMB38.7 million ($5.7 million) as of June 30, 2026, down from RMB102.5 million ($15.1 million) in 2025.
  • On September 28, 2026, the company inaugurated a waste plastic chemical recycling plant in Weifang designed to process 40,000 tons annually.
  • Fiscal 2027 priorities include commercial production of the recycling plant, expanding overseas oilfield operations, \& rebuilding domestic service capabilities.