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

Higher gross margin helped narrow the annual net loss, while platform outsourcing generated zero revenue.

Rhea-AI Summary

Recon Technology (NASDAQ: RCON) reported fiscal 2026 revenue of RMB109.9 million, up 65.8% from the prior fiscal year. For the year ended June 30, 2026, gross profit rose to RMB36.5 million from RMB15.2 million, and gross margin increased to 33.2% from 23.0%. Net loss narrowed to RMB31.6 million from RMB43.7 million. Automation revenue increased 104.5%, driven by overseas oilfield projects, while domestic automation revenue declined and platform outsourcing revenue fell to zero.

Cash was RMB29.7 million, versus RMB98.9 million a year earlier; short-term investments rose to RMB9.0 million from RMB3.6 million. Recon held a ceremony marking commencement of operations at its Weifang waste-plastic recycling plant on September 28, 2026. The company plans to bring the plant to commercial production in fiscal 2027, expand overseas and offshore oilfield activity, and rebuild domestic service capabilities.

19 points · 1 major

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 13 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointNet loss narrowed to RMB31.6 million from RMB43.7 million in fiscal 2025.
• Moderate pointFiscal 2026 revenue rose 65.8% year over year to approximately RMB109.9 million.
• Moderate pointGross profit rose to RMB36.5 million from RMB15.2 million in fiscal 2025.
• Moderate pointGross margin increased to 33.2% from 23.0% in fiscal 2025.
• Moderate pointAutomation and software revenue increased RMB35.6 million, or 104.5%, year over year.
• Moderate pointOverseas oilfield revenue increased RMB44.2 million, benefiting from phase-II oilfield capacity construction.
• Moderate pointAutomation gross margin expanded to 32.3%, driven by higher-margin overseas oilfield projects.
• Moderate pointEquipment and accessories revenue increased RMB9.4 million, or 51.2%, year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 plans include commercial recycling production, overseas and offshore expansion, and rebuilding domestic services.

10 minor points

• Minor pointBasic and diluted loss per share narrowed to RMB266.52 from RMB936.18 in fiscal 2025.
• Minor pointOperating loss narrowed to RMB41.2 million from RMB57.3 million in fiscal 2025.
• Minor pointEquipment and accessories gross profit increased 42.4% to approximately RMB7.4 million; margin remained relatively stable.
• Minor pointEnvironmental protection revenue increased RMB2.0 million, or 19.4%, year over year.
• Minor pointEnvironmental protection gross margin rose to 53.4% from 16.9%, partly reflecting absent prior-year testing costs.
• Minor pointEnvironmental protection costs decreased 33.1% to approximately RMB5.7 million in fiscal 2026.
• Minor pointPlatform outsourcing costs fell to nil from approximately RMB0.6 million in fiscal 2025.
• Minor pointSelling expenses decreased 43.6% to RMB5.2 million in fiscal 2026.
• Minor pointResearch and development expenses decreased 21.7% to RMB12.9 million in fiscal 2026.
• Minor pointWeifang recycling plant commencement-of-operations ceremony took place September 28, 2026.

Negative

• Major pointCredit losses shifted to a RMB4.1 million provision from a RMB2.9 million recovery in fiscal 2025.
• Moderate pointCash fell to approximately RMB29.7 million; short-term investments rose to approximately RMB9.0 million at June 30, 2026.
• Moderate pointDomestic automation revenue declined RMB8.6 million as maintenance efforts decreased.
• Moderate pointFGS operations were adversely affected by major clients ending third-party online cooperation and domestic policy changes.
• Moderate pointAutomation and software costs increased 65.0% to approximately RMB47.2 million in fiscal 2026.
• Moderate pointGeneral and administrative expenses increased 11.8% to RMB55.4 million in fiscal 2026.

7 minor points

• Minor pointPlatform outsourcing revenue fell 100.00%, or RMB3.5 million, to zero in fiscal 2026.
• Minor pointPlatform outsourcing gross profit fell 100.0% to nil from approximately RMB2.8 million in fiscal 2025.
• Minor pointEquipment and accessories costs increased 54.7% to approximately RMB20.4 million in fiscal 2026.
• Minor pointNet interest income decreased to RMB10.9 million from RMB12.3 million in fiscal 2025.
• Minor pointOther income and expenses shifted to RMB1.3 million net expenses from RMB1.3 million net income.
• Minor pointWarrant fair-value gain decreased to RMB671 from RMB6,226 in fiscal 2025.
• Minor pointOil-price volatility and macroeconomic conditions remain challenges, Recon said.

News Explained

In its fiscal 2026 results, Recon reported Class A shares issued and outstanding rising from 53,154 at June 30, 2025 to 353,154 at June 30, 2026; absent offsetting changes, the higher share count reduces existing holders’ percentage ownership.

Key Figures

Revenue: RMB109.9 million; increased 65.8% Gross profit: RMB36.5 million Gross margin: 33.2% +4 more

Revenue

RMB109.9 million; increased 65.8%

FY2026, compared with RMB66.3 million in FY2025

Gross profit

RMB36.5 million

FY2026, compared with RMB15.2 million in FY2025

Gross margin

33.2%

FY2026, compared with 23.0% in FY2025

Net loss

RMB31.6 million

FY2026, compared with RMB43.7 million in FY2025

Loss from operations

RMB41.2 million

FY2026, compared with RMB57.3 million in FY2025

Cash

RMB29.7 million

As of June 30, 2026, compared with RMB98.9 million as of June 30, 2025

Annual processing capacity

40,000 tons

Waste plastic recycling plant designed capacity

Key Terms

pyrolysis oil, warrant liability, net provision for credit losses

3 terms

pyrolysis oil technical

"expected output of 30,000 tons of pyrolysis oil"

A dark, viscous liquid produced when organic materials—such as biomass, plastics, or municipal waste—are heated at high temperature in the absence of oxygen (pyrolysis). It is a complex mixture of water, oils, and dissolved chemicals that can be used as a low-grade fuel or as a raw material for making chemicals and refined fuels; investors care because it links waste management, energy production, and chemical markets, so its value depends on technology costs, regulatory incentives, and demand for alternative feedstocks.

warrant liability financial

"change in fair value of warrant liability"

Warrant liability is the financial obligation a company records when it grants warrants—special options giving the holder the right to buy company shares at a set price in the future. It matters to investors because changes in this liability can affect a company's reported earnings and overall financial health, similar to how a pending contract can influence a company's future value.

net provision for credit losses financial

"net provision for credit losses of RMB4.1 million"

The net provision for credit losses is the amount a lender records on its income statement during a reporting period to increase or decrease the allowance for credit losses — the reserve set aside for expected loan and credit-exposure defaults — after accounting for loan charge‑offs and recoveries. It reflects management’s estimate of credit losses for the period and flows into a contra‑asset account on the balance sheet (the allowance for credit losses); charge‑offs reduce that allowance and recoveries restore it, so the “net” figure shows the provision expense required to move the allowance to the desired level. As an accounting estimate, it depends on models and judgments about future defaults and does not itself directly measure actual future losses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BEIJING, Sept. 30, 2026 /PRNewswire/ -- Recon Technology, Ltd (NASDAQ: RCON) ("Recon" or the "Company"), a China-based independent solutions integrator in the oilfield service and environmental protection, electric power and coal chemical industries, today announced its financial results for fiscal year 2026.

Fiscal Year Ended June 30, 2026 Financial Highlights:

• Total revenue increased by approximately RMB43.6 million ($6.4 million) or 65.8% to RMB109.9 million ($16.2 million) for the year ended June 30, 2026 from RMB66.3 million ($9.8 million) for the same period in 2025.
• Gross profit increased to RMB36.5 million ($5.4 million) for the year ended June 30, 2026, from RMB15.2 million ($2.2 million) for the same period in 2025.
• Gross margin increased to 33.2% for the year ended June 30, 2026 from 23.0% for the same period in 2025.
• Net loss was RMB31.6 million ($4.7 million) for the year ended June 30, 2026, a decrease of RMB12.1 million ($1.8 million) from net loss of RMB43.7 million ($6.4 million) for the same period of 2025.

 

		For the Years Ended
		June 30,
														Percentage
		2026				2025				Increase /(Decrease)				Change
(in RMB millions, except earnings per share; differences due to rounding)
Revenue		RMB		109.9		RMB		66.3		RMB		43.6		65.8	%
Gross profit				36.5				15.2				21.3		139.4	%
Gross margin				33.2	%			23.0	%			10.2	%	—
Net loss				(31.6)				(43.7)				(12.1)		27.6	%
Net loss per share – basic and diluted				(266.52)				(936.18)				(669.66)		71.5	%

Management Commentary

Mr. Shenping Yin, Founder and Chief Executive Officer of Recon, commented: "Fiscal 2026 marked a significant turning point for Recon. Revenue increased by 65.8% to RMB109.9 million, and gross margin was lifted to 33.2%. These factors, when combined, narrowed our net loss compared to the previous year. The primary growth driver was our strategic expansion into overseas oilfield projects.

We are pleased to announce that we have reached a significant milestone that we have been working towards for several years. On 28 September 2026, we held a ceremony to mark the commencement of operations at our waste plastic chemical recycling plant in Weifang, Shandong Province. The plant has been designed to process 40,000 tons of low-value waste plastics per year, with an expected output of 30,000 tons of pyrolysis oil and 6,000 tons of carbon residue. This strategic partnership provides Recon with a solid foundation in the circular economy, offering a new growth opportunity in addition to our core oilfield services.

As we look ahead to fiscal 2027, our strategic priorities are clear as we will bring the chemical recycling plant to commercial production, extend our overseas and offshore oilfield footprint, and rebuild our domestic service capabilities. Oil price volatility and broader macroeconomic conditions continue to present challenges, however, we enter the new year with a more diversified business portfolio, a strengthened margin profile and a diligent cost structure. These elements, we believe, will underpin sustainable, long-term growth for our shareholders."

Fiscal Year Ended 2026 Financial Results:

Revenue

Total revenues for the year ended June 30, 2026 were approximately RMB109.9 million ($16.2 million), an increase of approximately RMB43.6 million ($6.4 million) or 65.8% from RMB66.3 million ($9.8 million) for the same period in 2025.

• Revenue from automation product and software increased by RMB35.6 million ($5.3 million) or 104.5%. The increase was primarily driven by a RMB44.2 million revenue increase from overseas oilfield projects, partially offset by an RMB8.6 million decline in domestic business. The overseas revenue growth benefited from a phase-II oilfield capacity construction of a major overseas automation maintenance project. The domestic business decline was mainly due to reduced maintenance efforts in the domestic market during the period, as our focus shifted towards overseas projects. Going forward, the Company will reallocate personnel from overseas to strengthen domestic market maintenance services.
• Revenue from equipment and accessories increased by RMB9.4 million ($1.4 million) or 51.2%. The increase in revenue from equipment and spare parts was primarily driven by rising demand for new purchases and maintenance of such items. This was due to the ongoing need of domestic oilfield clients to maintain stable production levels.
• Revenue from oilfield environmental protection increased by RMB2.0 million ($0.3 million) or 19.4% primarily due to an increase in the settlement prices for some wastewater treatment clients.
• Revenue from platform outsourcing services decreased by RMB3.5 million ($0.5 million) or 100.00%. FGS's operations were materially and adversely affected by strategic shifts in its major clients' business decisions to terminate online cooperation of third-party companies and unfavorable changes in domestic industry policies. Consequently, FGS's revenue and active business activities declined precipitously, resulting in zero revenue for fiscal year 2026.

Cost of revenue

Cost of revenues increased from RMB51.0 million for the year ended June 30, 2025 to RMB73.4 million ($10.8 million) for the same period in 2026.

For the years ended June 30, 2025 and 2026, cost of revenue from automation product and software was approximately RMB28.6 million and RMB47.2 million ($7.0 million), respectively, representing an increase of approximately RMB18.6 million ($2.7 million) or 65.0%. The increase in cost of revenue from automation product and software was primarily attributable to increased revenue of automation products and software.

For the years ended June 30, 2025 and 2026, cost of revenue from equipment and accessories was approximately RMB13.2 million and RMB20.4 million ($3.0 million), respectively, representing an increase of approximately RMB7.2 million ($1.1 million) or 54.7%. The increase in costs of revenue was primarily driven by expanded business activity, mirroring the same factor behind the growth in revenue.

For the years ended June 30, 2025 and 2026, cost of revenue from oilfield environmental protection was approximately RMB8.5 million and RMB5.7 million ($0.8 million), respectively, representing a decrease of approximately RMB2.8 million ($0.4 million) or 33.1%. While actively pursuing new business opportunities in a constrained market, the Company undertook testing projects. Given their high uncertainty, equipment costs for these projects were fully expensed upon purchase in the prior period, resulting in lower costs in the current period compared to the prior period.

For the years ended June 30, 2025 and 2026, cost of revenue from platform outsourcing services was approximately RMB0.6 million and nil, respectively, representing a decrease of approximately RMB0.6 million ($0.1 million) or 100.0%. The reason for the decrease is consistent with that of the revenue decline.

Gross profit

Gross profit increased to RMB36.5 million ($5.4 million) for the year ended June 30, 2026 from RMB15.2 million ($2.2 million) for the same period in 2025. Our gross profit as a percentage of revenue increased to 33.2% for the year ended June 30, 2026 from 23.0% for the same period in 2025.

• For the years ended June 30, 2025 and 2026, our gross profit from automation product and software was approximately RMB5.5 million and RMB22.5 million ($3.3 million), respectively, representing an increase in gross profit of approximately RMB17.0 million ($2.5 million) or 310.4%. The gross margin expansion to 32.3% was primarily driven by the higher-margin overseas oilfield projects, which contributed RMB44.2 million of revenue, representing approximately 63% of automation segment revenue for fiscal 2026. Excluding the overseas projects, our domestic automation gross margin remained relatively stable.
• For the years ended June 30, 2025 and 2026, gross profit from equipment and accessories was approximately RMB5.2 million and RMB7.4 million ($1.1 million), respectively, representing an increase of approximately RMB2.2 million ($0.3 million) or 42.4%. The increase in gross profit was consistent with the change in revenue. The gross margin for equipment and accessories has remained relatively stable in this period.
• For the years ended June 30, 2025 and 2026, gross profit from oilfield environmental protection was approximately RMB1.7 million and RMB6.6 million ($1.0 million), respectively, representing an increase of RMB4.9 million ($0.7 million) or 288.2%. The lower gross profit in fiscal 2025 was mainly due to testing projects, where the related equipment used for these projects was fully expensed as it was consumed during execution, when we were not sure that revenue from these projects could be recognized. The increase in gross margin from 16.9% to 53.4% was mainly attributable to the absence, in fiscal 2026, of the one-time testing project costs that were fully expensed as incurred in fiscal 2025, when revenue recognition for those testing projects remained uncertain. Excluding the impact of such one-time testing costs, the normalized gross margin for fiscal 2025 would have been higher, and the fiscal 2026 margin of 53.4% reflects a normal standard in settlement prices for certain wastewater treatment clients together with a more favorable project mix.
• For the years ended June 30, 2025 and 2026, gross profit from platform outsourcing services was approximately RMB2.8 million and nil, respectively, representing a decrease of approximately RMB2.8 million ($0.4 million) or 100.0%. The decrease in gross profit was consistent with the change in revenue.

Operating expenses

Selling expenses decreased by 43.6%, or RMB4.1 million ($0.6 million), from RMB9.3 million ($1.4 million) in the year ended June 30, 2025 to RMB5.2 million ($0.8 million) in the same period of 2026.

General and administrative expenses increased by 11.8%, or RMB5.8 million ($0.9 million), from RMB49.6 million ($7.3 million) in the year ended June 30, 2025 to RMB55.4 million ($8.2 million) in the same period of 2026.

Net recovery of credit losses of RMB2.9 million ($0.4 million) for the year ended June 30, 2025 as compared to net provision for credit losses of RMB4.1 million ($0.6 million) for the same period in 2026.

Research and development expenses decreased by 21.7%, or RMB3.6 million ($0.5 million) from RMB16.4 million ($2.4 million) for the year ended June 30, 2025 to RMB12.9 million ($1.9 million) for the same period of 2026.

Loss from operations

Loss from operations was RMB41.2 million ($6.1 million) for the year ended June 30, 2026, compared to a loss of RMB57.3 million ($8.4 million) for the same period of 2025. This RMB16.1 million ($2.4 million) decrease in loss from operations was mainly driven by higher gross profit, as previously discussed.

Change in fair value of warrant liability

The Company classified the warrants issued in connection with common share offering as liabilities at their fair value and adjusted the warrant instrument to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statement of operations. Gain in change in fair value of warrant liability was RMB6,226 ($917) and RMB671 ($99) for the years ended June 30, 2025 and 2026, respectively. The primary reason for the decrease in the fair-value gain of the warrant liability was the change in the fair value assessment price.

Interest income

Net interest income was RMB10.9 million ($1.6 million) for the year ended June 30, 2026, compared to net interest income of RMB12.3 million ($1.8 million) for the same period of 2025. The RMB1.4 million ($0.2 million) decrease in net interest income was primarily attributable to the Company's receipt of partial repayments of loans to third parties, partially offset by interest income from outstanding loans to third parties, during the year ended June 30, 2026.

Other income (expenses), net.

Other net expenses was RMB1.3 million ($0.2 million) for the year ended June 30, 2026, compared to other net income of RMB1.3 million ($0.2 million) for the same period of 2025. The RMB2.6 million ($0.4 million) decrease in other net income was primarily due to the closure of Qinghai BHD and the disposal of 51% equity interest in MSJ, which together resulted in a total loss on equity shares investments of RMB1.1 million. Additionally, following the closure of the Qinghai office, RMB0.6 million in payables that could no longer be settled was recognized as income, RMB0.2 million in receivables that could not be collected was written off as a loss and an increase in foreign exchange transaction expenses of RMB1.0 million due to the fluctuation of exchange rate of RMB against US dollars during the year ended June 30, 2026 compared to the same period of 2025.

Net loss

As a result of the factors described above, net loss was RMB31.6 million ($4.7 million) for the year ended June 30, 2026, a decrease of RMB12.1 million ($1.8 million) from net loss of RMB43.7 million ($6.4 million) for the same period of 2025.

Cash and short-term investment

As of June 30, 2026, we had cash in the amount of approximately RMB29.7 million ($4.4 million) and short-term investment in bank fixed income product of approximately RMB9.0 million ($1.3 million). As of June 30, 2025, we had cash in the amount of approximately RMB98.9 million ($14.6 million) and short-term investment in bank fixed income product of approximately RMB3.6 million ($0.5 million).

About Recon Technology, Ltd ("RCON")

Recon Technology, Ltd (NASDAQ: RCON) is the People's Republic of China's first NASDAQ-listed non-state-owned oil and gas field service company. Recon supplies China's largest oil exploration companies with advanced automated technologies, efficient gathering and transportation equipment and reservoir stimulation measure for increasing petroleum extraction levels, reducing impurities and lowering production costs. Through the years, RCON has taken leading positions within several segmented markets of the oil and gas field service industry. RCON also has developed stable long-term cooperation relationship with its major clients. Since 2023, Recon also entered into the business of chemical recycling of waste plastic. For additional information please visit: http://www.recon.cn/.

Forward-Looking Statements

Recon includes "forward-looking statements" within the meaning of the federal securities laws throughout this press release. A reader can identify forward-looking statements because they are not limited to historical fact or they use words such as "scheduled," "may," "will," "could," "should," "would," "expect," "believe," "anticipate," "project," "plan," "estimate," "forecast," "goal," "objective," "committed," "intend," "continue," or "will likely result," and similar expressions that concern Recon's strategy, plans, intentions or beliefs about future occurrences or results. Forward-looking statements are subject to risks, uncertainties and other factors that may change at any time and may cause actual results to differ materially from those that Recon expected. Many of these statements are derived from Recon's operating budgets and forecasts, which are based on many detailed assumptions that Recon believes are reasonable, or are based on various assumptions about certain plans, activities or events which we expect will or may occur in the future. However, it is very difficult to predict the effect of known factors, and Recon cannot anticipate all factors that could affect actual results that may be important to an investor. All forward-looking information should be evaluated in the context of these risks, uncertainties and other factors, including those factors disclosed under "Risk Factors" in Recon's most recent Annual Report on Form 20-F and any subsequent half-year financial filings on Form 6-K filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by the cautionary statements that Recon makes from time to time in its SEC filings and public communications. Recon cannot assure the reader that it will realize the results or developments Recon anticipates, or, even if substantially realized, that they will result in the consequences or affect Recon or its operations in the way Recon expects. Forward-looking statements speak only as of the date made. Recon undertakes no obligation to update or revise any forward-looking statements to reflect events or circumstances arising after the date on which they were made, except as otherwise required by law. As a result of these risks and uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements included herein or that may be made elsewhere from time to time by, or on behalf of, Recon.

RECON TECHNOLOGY, LTD
CONSOLIDATED BALANCE SHEETS
		As of June, 30			As of June, 30			As of June, 30
		2025			2026			2026
		RMB			RMB			US Dollars
ASSETS
Current assets
Cash		¥	98,874,577		¥	29,745,574			4,383,955
Restricted cash			8,204			104			16
Short-term investments			3,599,211			9,005,007			1,327,174
Notes receivable			—			200,000			29,476
Accounts receivable, net			35,852,484			46,142,449			6,800,555
Inventories, net			1,344,588			1,330,874			196,147
Other receivables, net			3,760,881			9,879,518			1,456,061
Other receivables - related parties			67,976			400,000			58,953
Loans to third parties-short term			141,564,073			46,358,973			6,832,467
Purchase advances, net			14,619,556			57,757,856			8,512,455
Contract costs, net			53,547,408			25,059,648			3,693,335
Prepaid expenses			389,216			801,617			118,140
Prepaid consideration for acquisition of noncontrolling interest			—			1,950,000			287,394
Deferred offering cost			2,529,724			339,255			50,000
Total Current Assets			356,157,898			228,970,875			33,746,128
Property and equipment, net			19,986,635			17,158,744			2,528,886
Construction in progress			12,000,900			86,366,301			12,728,818
Investment in unconsolidated entity, net			—			1,824,974			268,968
Loans to third parties-long term			118,500,000			283,684,309			41,809,894
Operating lease right-of-use assets, net (including ¥696,851 and ¥2,481,013 ($365,656) from related parties as    of June 30, 2025 and June 30, 2026, respectively)			18,975,692			21,441,571			3,160,097
Total Assets		¥	525,621,125		¥	639,446,774		$	94,242,791
LIABILITIES AND EQUITY
Current liabilities
Short-term bank loans		¥	11,582,336		¥	11,306,258		$	1,666,336
Accounts payable			19,398,669			36,902,581			5,438,767
Other payables			6,154,889			3,430,099			505,534
Other payable- related parties			2,927,377			649,559			95,733
Contract liabilities			4,719,255			1,669,736			246,089
Contract liabilities- related parties			—			400,000			58,953
Accrued payroll and employees' welfare			3,212,227			4,927,089			726,163
Taxes payable			795,629			1,481,308			218,318
Short-term borrowings - related parties			10,017,250			20,033,917			2,952,634
Operating lease liabilities - current (including ¥355,601 and ¥1,682,080 ($247,908) from related parties as of    June 30, 2025 and June 30, 2026, respectively)			1,761,231			2,924,605			431,033
Total Current Liabilities			60,568,863			83,725,152			12,339,560
Operating lease liabilities - non-current (including nil and ¥1,026,433 ($151,278) from related parties as of    June 30, 2025 and June 30, 2026, respectively)			1,081,827			3,291,220			485,066
Long-term borrowings - related party			10,000,000			—			—
Warrant liability - non-current			688			—			—
Total Liabilities			71,651,378			87,016,372			12,824,626
Commitments and Contingencies
Shareholders' Equity
Class A ordinary shares, $0.02 U.S. dollar par value, 2,500,000 shares authorized and $0.02 U.S. dollar par    value, 15,000,000 shares authorized as of June 30, 2025 and June 30, 2026, respectively; 53,154 shares and    353,154 share issued and outstanding as of June 30, 2025 and June 30, 2026, respectively *			101,548			142,646			21,023
Class B ordinary shares, $0.0001 U.S. dollar par value, 80,000,000 authorized shares and $0.0001 U.S. dollar    par value, 200,000,000 shares authorized as of June 30, 2025 and June 30, 2026, respectively; 20,000,000    shares and 20,000,000 shares issued and outstanding as of June 30, 2025 and June 30, 2026, respectively			14,038			14,038			2,069
Additional paid-in capital			692,569,747			827,448,759			121,950,857
Statutory reserve			4,148,929			4,148,929			611,476
Accumulated deficit			(262,900,639)			(292,560,687)			(43,118,110)
Accumulated other comprehensive income			33,493,895			27,133,454			3,998,976
Total Recon Technology, Ltd' equity			467,427,518			566,327,139			83,466,291
Non-controlling interests			(13,457,771)			(13,896,737)			(2,048,126)
Total shareholders' equity			453,969,747			552,430,402			81,418,165
Total Liabilities and Shareholders' Equity		¥	525,621,125		¥	639,446,774		$	94,242,791
* Retrospectively restated for the 1-for-200 reverse stock split on August 18, 2026.

 

 

RECON TECHNOLOGY, LTD
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
		For the years ended
		June 30,
		2024			2025			2026			2026
		RMB			RMB			RMB			US Dollars
Revenue		¥	68,854,280		¥	66,285,032		¥	109,898,245		$	16,196,997
Cost of revenue			47,976,836			51,044,495			73,410,205			10,819,325
Gross profit			20,877,444			15,240,537			36,488,040			5,377,672
Selling and distribution expenses			10,374,388			9,343,480			5,267,001			776,260
General and administrative expenses			63,765,583			49,645,680			55,495,066			8,178,961
Allowance for (net recovery of) credit losses			4,086,505			(2,856,803)			4,094,917			603,516
Research and development expenses			14,288,879			16,427,892			12,858,639			1,895,129
Operating expenses			92,515,355			72,560,249			77,715,623			11,453,866
Loss from operations			(71,637,911)			(57,319,712)			(41,227,583)			(6,076,194)
Other income (expenses)
Subsidy income			131,428			85,762			37,185			5,480
Interest income			22,897,763			13,390,041			11,944,760			1,760,440
Interest expense			(1,070,449)			(1,110,984)			(1,041,518)			(153,501)
Loss from investment in unconsolidated entity			—			—			(1,102,361)			(162,468)
Loss (gain) in fair value changes of warrants liability			(933,995)			6,226			671			99
Foreign exchange transaction gain (loss)			(881,695)			952,815			(79,217)			(11,675)
Other income			59,049			296,155			(178,542)			(26,314)
Other income, net			20,202,101			13,620,015			9,580,978			1,412,061
Loss before income tax			(51,435,810)			(43,699,697)			(31,646,605)			(4,664,133)
Income tax expenses (benefits)			30			1,580			(1,609)			(237)
Net loss			(51,435,840)			(43,701,277)			(31,644,996)			(4,663,896)
Less: Net loss attributable to non-controlling interests			(1,564,581)			(1,112,723)			(1,984,948)			(292,545)
Net loss attributable to Recon Technology, Ltd		¥	(49,871,259)		¥	(42,588,554)		¥	(29,660,048)		$	(4,371,351)
Comprehensive loss
Net loss			(51,435,840)			(43,701,277)			(31,644,996)			(4,663,896)
Foreign currency translation adjustment			2,009,476			(3,642,754)			(6,360,441)			(937,413)
Comprehensive loss			(49,426,364)			(47,344,031)			(38,005,437)			(5,601,309)
Less: Comprehensive loss attributable to non- controlling interests			(1,564,581)			(1,112,723)			(1,984,948)			(292,545)
Comprehensive loss attributable to Recon Technology, Ltd		¥	(47,861,783)		¥	(46,231,308)		¥	(36,020,489)		$	(5,308,764)
Net loss per share - basic and diluted*		¥	(1,974.16)		¥	(936.18)		¥	(266.52)		$	(39.28)
Weighted - average shares - basic and diluted*			25,262			45,492			111,286			111,286
* Retrospectively restated for the 1-for-18 reverse stock split effective on May 1, 2024 and 1-for-200 reverse stock split on August 18, 2026.

 

 

RECON TECHNOLOGY, LTD
CONSOLIDATED STATEMENTS OF CASH FLOWS
		For the years ended June 30,
		2024			2025			2026			2026
		RMB			RMB			RMB			US Dollars
Cash flows from operating activities:
Net loss		¥	(51,435,840)		¥	(43,701,277)		¥	(31,644,996)		$	(4,663,896)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization			2,844,025			3,147,936			2,870,387			423,043
Loss from disposal of property and equipment			35,325			12,410			314			46
(Gain) loss in fair value changes of warrants liability			933,995			(6,226)			(671)			(99)
Allowance for (net recovery of) credit losses			4,086,505			(2,856,803)			4,094,917			603,516
Allowance (reversal) for slow moving inventories			886,991			(1,251,279)			(30,722)			(4,528)
Amortization of right of use assets			1,636,215			4,571,501			2,915,356			429,670
Restricted shares issued for management and employees			22,427,682			10,279,881			12,687,016			1,869,835
Restricted shares issued for services			1,070,143			—			—			—
Loss from investment in unconsolidated entity			—			—			1,102,361			162,468
Cash position changes due to the decrease of ownership interest			—			—			(32,811)			(4,836)
Accrued interest income from loans to third parties			(6,998,866)			(5,288,121)			(9,116,577)			(1,343,617)
Accrued interest income from short-term investment			(885,394)			(17,411)			(5,007)			(738)
Expensing of deferred financing costs			—			—			2,529,724			372,835
Changes in operating assets and liabilities:
Notes receivable			2,400,570			1,341,820			(200,000)			(29,476)
Accounts receivable			(12,151,359)			1,686,887			(12,107,973)			(1,784,494)
Inventories			5,590,058			267,413			(28,080)			(4,138)
Other receivables			31,908			(531,445)			(5,840,026)			(860,713)
Other receivables-related parties			(275,976)			208,000			(332,024)			(48,934)
Purchase advances			(2,422,123)			(5,057,967)			(43,515,113)			(6,413,334)
Contract costs			(4,400,442)			(363,721)			29,704,410			4,377,888
Prepaid expense			(51,467)			12,370			(412,401)			(60,781)
Operating lease liabilities			(2,907,014)			(4,869,474)			(2,008,468)			(296,012)
Accounts payable			(604,203)			1,940,574			(4,208,390)			(620,240)
Other payables			(3,020,216)			3,399,579			(2,645,098)			(389,839)
Other payables-related parties			(293,326)			628,308			(2,277,818)			(335,709)
Contract liabilities			(927,884)			2,898,774			(3,049,519)			(449,443)
Contract liabilities-related parties			—			—			400,000			58,953
Accrued payroll and employees' welfare			854,644			(24,937)			1,714,862			252,739
Taxes payable			(171,884)			(197,966)			634,382			93,496
Net cash used in operating activities			(43,747,933)			(33,771,174)			(58,801,965)			(8,666,338)
Cash flows from investing activities:
Investment in unconsolidated entity			—			—			(700,000)			(103,167)
Purchases of property and equipment			(282,184)			(1,010,812)			(307,295)			(45,290)
Proceeds from disposal of property and equipment			20,000			2,000			3,580			528
Purchase of land use right			(15,000,251)			—			—			—
Repayments of loans to third parties			117,522,129			100,478,982			96,417,165			14,210,132
Payments made for loans to third parties			(196,437,504)			(140,490,800)			(166,200,000)			(24,494,849)
Payments and prepayments for construction in progress			(219,132)			(8,924,101)			(52,653,099)			(7,760,107)
Payments for short-term investments			(203,481,600)			(3,581,800)			(9,000,000)			(1,326,436)
Redemption of short-term investments			300,863,518			87,239,515			3,496,550			515,328
Net cash (used in) provided by investing activities			2,984,976			33,712,984			(128,943,099)			(19,003,861)
Cash flows from financing activities:
Proceeds from short-term bank loans			11,581,000			10,476,000			15,305,000			2,255,678
Repayments of short-term bank loans			(11,632,755)			(11,319,623)			(15,582,198)			(2,296,532)
Proceeds from short-term borrowings-related parties			10,000,000			—			—			—
Repayments of short-term borrowings-related parties			(10,018,222)			—			—			—
Proceeds from sale of ordinary shares, net of issuance costs			77,711,533			(2,529,724)			121,893,839			17,964,929
Redemption of warrants			(32,617,499)			—			—			—
Payments to Acquire noncontrolling interests			—			—			(1,950,000)			(287,394)
Capital contribution by controlling shareholders			—			100,000			—			—
Net cash (used in) provided by financing activities			45,024,057			(3,273,347)			119,666,641			17,636,681
Effect of exchange rate fluctuation on cash and restricted cash			1,722,165			(8,626,292)			(1,058,680)			(156,030)
Net increase (decrease) in cash and restricted cash			5,983,265			(11,957,829)			(69,137,103)			(10,189,548)
Cash and restricted cash at beginning of year			104,857,345			110,840,610			98,882,781			14,573,519
Cash and restricted cash at end of year		¥	110,840,610		¥	98,882,781		¥	29,745,678		$	4,383,971
Reconciliation of cash and restricted cash, beginning of year
Cash		¥	104,125,800		¥	109,991,674		¥	98,874,577		$	14,572,310
Restricted cash			731,545			848,936			8,204			1,209
Cash and restricted cash, beginning of year		¥	104,857,345		¥	110,840,610		¥	98,882,781		$	14,573,519
Reconciliation of cash and restricted cash, end of year
Cash		¥	109,991,674		¥	98,874,577		¥	29,745,574		$	4,383,955
Restricted cash			848,936			8,204			104			16
Cash and restricted cash, end of year		¥	110,840,610		¥	98,882,781		¥	29,745,678		$	4,383,971
Supplemental cash flow information
Cash paid during the year for interest		¥	659,472		¥	1,070,781		¥	1,042,505		$	153,646
Cash paid during the year for income tax		¥	—		¥	1,609		¥	—		$	—
Non-cash investing and financing activities
Right-of-use assets obtained in exchange for operating lease obligations		¥	8,303,099		¥	—		¥	6,752,841		$	995,246
Reduction of right-of-use assets and operating lease obligations due to early termination of lease agreement		¥	61,301		¥	1,886,347		¥	1,371,606		$	202,150
Payable for construction in progress		¥	—		¥	7,270,577		¥	21,712,302		$	3,199,997
Capital contribution receivable due from non-controlling Interest		¥	—		¥	724,408		¥	—		$	—
Investment in unconsolidated entity resulting from transfer out of control		¥	—		¥	—		¥	1,124,974		$	165,801

 

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SOURCE Recon Technology, Ltd

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Recon Technology's fiscal 2026 revenue and net loss?

Recon reported RMB109.9 million in revenue and a RMB31.6 million net loss for the year ended June 30, 2026. Revenue increased 65.8% from RMB66.3 million in fiscal 2025, while net loss narrowed from RMB43.7 million.

Why did Recon Technology's environmental protection gross margin increase in fiscal 2026?

Environmental protection gross margin increased mainly because fiscal 2026 did not repeat the one-time testing-project costs expensed in fiscal 2025. Margin rose from 16.9% to 53.4%. Recon said the fiscal 2026 margin also reflected settlement prices for certain wastewater treatment clients and a more favorable project mix.

What capacity and output does Recon Technology expect from its Weifang recycling plant?

The Weifang plant was designed to process 40,000 tons of low-value waste plastics per year, with expected output of 30,000 tons of pyrolysis oil and 6,000 tons of carbon residue. These are design capacity and expected output figures, not reported production results.

What contributed to Recon Technology's fiscal 2026 other net expenses?

The Qinghai BHD closure and disposal of a 51% equity interest in MSJ together produced RMB1.1 million in equity-investment losses. Following the Qinghai office closure, RMB0.6 million in unsettled payables was recognized as income and RMB0.2 million in uncollectible receivables was written off. Foreign-exchange transaction expenses increased RMB1.0 million year over year.