Recon Technology Ltd Stock Price, News & Analysis

Recon Technology (NASDAQ:RCON) has announced the completion of the main manufacturing plant construction for its 40,000-ton-per-year waste plastic chemical recycling project in Shandong. The $15 million project is entering its equipment installation phase and is expected to be fully operational by December 2025 after a one-month trial period.

The facility, spanning 50 acres, will feature six pyrolysis units and two distillation units, targeting annual production of 30,000 tons of plastic pyrolysis oil and 6,000 tons of carbon residue. The project is projected to generate $30 million in annual returns. The company has already secured product purchase intent agreements with multinational chemical companies.

The project employs innovative dual-process technology combining catalytic pyrolysis and catalytic reforming, featuring a first-of-its-kind horizontal screw-type three-stage continuous reactor to address plastic coking challenges.

Recon Technology (NASDAQ: RCON), China's first NASDAQ-listed non-state-owned oil and gas field service company, has secured contracts worth $5.85 million to upgrade and retrofit automation systems for a major Asian gas field. The project, scheduled for completion within the next calendar year, involves maintenance services to ensure the gas field's capacity supply.

The company, which provides services to China's largest oil exploration companies Sinopec and CNPC, views this as a significant milestone in its international market expansion, following its previous international contract from 2012. The award demonstrates Recon's technical capabilities and strong relationships in the oilfield automation market.

Recon Technology (NASDAQ: RCON) reported financial results for H1 FY2025, showing mixed performance. Total revenue decreased 7.0% to RMB42.1 million ($5.8 million), while gross profit increased to RMB13.4 million ($1.8 million). The company's gross margin improved to 31.7% from 26.7% year-over-year.

Notable segment performance included:

• Automation product revenue increased 19.2%
• Equipment and accessories revenue declined 12.2%
• Oilfield environmental protection revenue decreased 66.2%
• Platform outsourcing services revenue grew 53.7%

The company reported a net loss of RMB20.7 million ($2.8 million), an improvement from the previous year's loss of RMB23.1 million. As of December 31, 2024, RCON maintained a strong cash position of RMB145.3 million ($19.9 million).

Recon Technology (NASDAQ: RCON) reported its fiscal year 2024 financial results, showing a modest revenue increase of 2.6% to RMB68.8 million ($9.5 million) compared to FY2023. The company's gross profit improved to RMB20.9 million ($2.9 million), with gross margin increasing to 30.3%. Despite these improvements, RCON recorded a net loss of RMB51.4 million ($7.1 million), though this represents a decreased loss compared to the previous year's RMB61.4 million. The company maintains a strong cash position of RMB110.0 million ($15.1 million) and short-term investments of RMB88.1 million ($12.1 million) as of June 30, 2024.

Recon Technology, (NASDAQ: RCON) announced its financial results for the first six months of fiscal year 2024.

Total revenue was RMB45.3 million ($6.4 million), consistent with the same period in 2022. Gross profit decreased to RMB12.1 million ($1.7 million), and gross margin dropped to 26.7% from 28.8% in 2022.

The company reported a net loss of RMB23.1 million ($3.3 million), down from RMB29.9 million ($4.2 million) in the same period last year. Management highlighted recovery in the oilfield services business, development of new offshore customers, and ongoing construction of a chemical recycling plant, expected to generate substantial future returns.

Revenue from equipment and accessories rose by 83.6% to RMB8.1 million ($1.1 million), while revenue from oilfield environmental protection and platform outsourcing services saw declines of 37.0% and 55.3%, respectively.

Cost of revenues increased slightly to RMB33.2 million ($4.7 million). Gross profit from automation products and software decreased by 14.3%, while cost for equipment and accessories rose by 106.1%.

Recon Technology announced on May 23, 2024, that it has regained compliance with Nasdaq's listing standards. The company received a letter from Nasdaq's Listing Qualifications Hearings Department on May 22, 2024, confirming that the bid price deficiency had been resolved. As a result, the scheduled hearing was canceled, and Recon's ordinary shares will continue to be listed and traded on the Nasdaq Capital Market.

Recon Technology, (NASDAQ: RCON) has received a delisting determination from Nasdaq due to not meeting the Minimum Bid Price Rule. The company has appealed the decision, but if no appeal is made, trading will be suspended on May 2, 2024. The recent approval of the consolidation of its Class A ordinary shares is expected to take effect on May 1, 2024.