Financial Performance - For the fiscal year ended June 30, 2025, the company reported revenue of RMB 66,285,032, a decrease of 2.3% from RMB 68,854,280 in 2024[30] - The net loss attributable to Recon Technology, Ltd for the fiscal year 2025 was RMB 42,588,554, compared to a net loss of RMB 49,871,259 in 2024, indicating an improvement of approximately 14.5%[30] - Loss from operations for the fiscal year 2025 was RMB 57,319,712, which is a reduction from RMB 71,637,911 in 2024, reflecting a decrease of about 20%[30] - Total assets decreased from RMB¥ 552,389,514 in 2024 to RMB¥ 525,621,125 in 2025, a decline of approximately 4.8%[32] - Total liabilities decreased significantly from RMB¥ 92,673,674 in 2023 to RMB¥ 71,651,378 in 2025, a reduction of about 22.7%[32] - Total shareholder's equity increased from RMB¥ 449,206,962 in 2023 to RMB¥ 467,427,518 in 2025, representing an increase of approximately 4.1%[32] Shareholder Information - The weighted average number of Class A and Class B Ordinary Shares used in the computation of basic loss per share increased to 9,094,902 in 2025 from 5,048,952 in 2024[30] - Class A Ordinary Shares outstanding increased from 2,306,295 in 2023 to 10,627,426 in 2025, reflecting a significant increase due to a 1-for-18 reverse stock split[32] - The company does not intend to pay dividends in the foreseeable future, focusing instead on reinvesting profits for growth[64] - The company has not declared any dividends or distributions to U.S. investors for the fiscal years ended June 30, 2023, 2024, and 2025[18] - The company does not intend to pay dividends in the foreseeable future and has never paid cash dividends on its Class A Ordinary Shares[192] Customer Dependency - Revenue from China National Petroleum Corporation (CNPC) accounted for approximately 44%, 48%, and 43% of total revenue in the fiscal years ended June 30, 2025, 2024, and 2023, respectively[56] - Revenue from China Petroleum and Chemical Corporation (Sinopec) increased from 32% in 2023 to 32% in 2025, indicating a growing reliance on this customer[55] - The company’s financial performance is highly dependent on a limited number of customers, with CNPC and Sinopec being the primary revenue sources[54] Operational Risks - The company is subject to regulatory risks associated with the VIE structure, which could materially impact operations and the value of securities[17] - The company’s operations are primarily conducted through VIEs, which poses unique risks due to the uncertainty of PRC laws and regulations[17] - The company faces significant risks from competition, including potential loss of market share to new systems introduced by competitors[38] - The oil drilling industry in China may face new regulations, including the Energy Law effective January 1, 2025, which could significantly impact operations and costs for customers[58] - The company is dependent on skilled personnel and may face competition for talent, impacting service quality and operational effectiveness[61] - Key personnel, including the CEO and CFO, are critical to the company's performance, and their loss could impair business development efforts[62] Regulatory Environment - The company is required to conduct further offerings in the U.S. and is required to complete filing procedures with the CSRC under the new Trial Measures[25] - The company has not received any inquiries or regulatory objections regarding its initial public offering from the CSRC as of the date of the report[23] - The Chinese government has announced increased supervision of offshore-listed Chinese firms, which may negatively impact future operations[100] - The Company is required to comply with new filing procedures with the CSRC for overseas offerings, which could limit its ability to offer securities[120] - The PRC legal system is evolving, with significant discretion in interpreting laws, which may affect the company's ability to enforce contractual rights[127] Financial Structure and Capital Needs - The company may require additional capital for growth strategies, which could lead to dilution of holdings or increased debt obligations if financing is not available on favorable terms[63] - The dual class share structure concentrates voting power with Class B shareholders, potentially diluting the influence of Class A shareholders[93] - The classified board structure may hinder changes in control, as directors serve staggered terms, reducing the likelihood of tender offers[94] Compliance and Legal Risks - Noncompliance with various laws and regulations in China could result in fines, penalties, and loss of customers, adversely affecting business operations[71] - The company holds an ICP license that has not been utilized, which may lead to inefficiencies and regulatory scrutiny[70] - The company operates through its subsidiary Recon-BJ, which is subject to PRC laws and regulations, creating uncertainties in legal protections[154] - The company does not have business interruption or litigation insurance, which may lead to substantial costs in case of disruptions[155] - The company is subject to foreign exchange controls in the PRC, which may limit the use of funds and require approvals for capital account conversions[156] Market Conditions - The market price of Class A Ordinary Shares has been volatile, influenced by factors such as changes in the Chinese petroleum and energy industries and economic conditions[194] - Future sales of a significant number of Class A Ordinary Shares could depress the market price and impair the ability to raise capital[193] - The market price for the company's securities may be subject to wide fluctuations, which could result in substantial losses to investors[194] Investments and Subsidiaries - The company has established new wholly owned subsidiaries, including Shandong Recon Renewable Resources Technology Co., Ltd. and Guangxi Recon Renewable Resources Co., Ltd., to engage in waste plastic chemical recycling[198] - The company holds a 51% equity stake in Future Gas Station (Beijing), which is a significant part of its operations and investment in the downstream oil industry[85] - Future Gas Station's business expansion is heavily reliant on cooperation with major oil companies like PetroChina and Sinopec, which may decline due to their internal operational decisions[85] - The cessation of direct cooperation with external companies by Sinopec, effective May 2025, is expected to lead to a significant decline in FGS's business starting July 2025, potentially resulting in substantial losses[85] Taxation and Financial Liabilities - The company may be classified as a "resident enterprise" under PRC tax laws, potentially subjecting it to a 25% income tax rate on worldwide income[163] - There are uncertainties regarding withholding tax liabilities for dividends from the PRC subsidiary, which may be subject to a 10% withholding tax rate[167] - The lack of documentation for past equity transfers may expose the company to tax investigations or penalties[165] - The implementation of the SAFE notice remains inconsistent, which could affect the company's ability to conduct foreign exchange activities and distribute profits[162]

Financial Performance - Total revenue for the fiscal year ended June 30, 2025, was approximately RMB 66.3 million ($9.3 million), a decrease of RMB 2.5 million ($0.4 million) or 3.7% from RMB 68.8 million ($9.6 million) in 2024 [4] - Gross profit decreased to RMB 15.2 million ($2.1 million) from RMB 20.9 million ($2.9 million) in the previous year, with a gross margin decline to 23.0% from 30.3% [4][11] - The net loss for the year was RMB 43.7 million ($6.1 million), a reduction of RMB 7.7 million ($1.1 million) from a net loss of RMB 51.4 million ($7.2 million) in 2024 [20] Revenue Breakdown - Revenue from automation products and software increased by RMB 7.3 million ($1.0 million) or 27.1%, driven by enhanced sales activities and market expansion beyond oilfields [6] - Revenue from equipment and accessories decreased by RMB 2.0 million ($0.3 million) or 10.0%, attributed to oilfield customers controlling extraction budgets [6] - Revenue from oilfield environmental protection dropped by RMB 7.3 million ($1.0 million) or 41.4%, primarily due to the expiration of a hazardous waste operation permit [6] Cost and Expenses - Cost of revenue increased from RMB 48.0 million in 2024 to RMB 51.0 million ($7.1 million) in 2025 [5] - Selling expenses decreased by 9.9% to RMB 9.3 million ($1.3 million), while general and administrative expenses decreased by 22.1% to RMB 49.6 million ($6.9 million) [12] - Research and development expenses increased by 15.0% to RMB 16.4 million ($2.3 million) [13] Operational Developments - The company has secured new clients outside the oilfield industry and expanded its order book with offshore oilfield customers, stabilizing business operations [2] - Construction of the Chemical Circular Factory commenced on April 28, 2025, with completion anticipated by the end of 2025, expected to enhance operations significantly in the following fiscal year [3] Cash and Investments - As of June 30, 2025, the company had cash of approximately RMB 98.9 million ($13.8 million) and short-term investments of approximately RMB 3.6 million ($0.5 million) [21]

Core Viewpoint - Chinese concept stocks experienced significant declines, with the top five losers showing steep drops in their stock prices, indicating potential market volatility and investor concerns [1] Group 1: Stock Performance - Dongfang Culture (OCG) saw a decline of 17.19%, closing at 2.890, with a trading volume of 585,300 [1] - Renkong Technology (RCON) dropped by 12.69%, ending at 2.270, with a trading volume of 1,132,700 [1] - Zhiling Group (APM) fell by 11.74%, closing at 2.330, with a trading volume of 6,809,100 [1] - Luda Technology (LUD) decreased by 10.66%, finishing at 5.280, with a trading volume of 75,800 [1] - Dingxin Holdings (DXST) experienced a drop of 10.31%, closing at 1.130, with a trading volume of 60,800 [1]

Core Viewpoint - RCON experienced a 10.0% increase in stock price, reaching $2.86 per share, with a total market capitalization of $87.59 million as of August 25 [1] Financial Performance - As of December 31, 2024, RCON reported total revenue of 42.07 million RMB, a year-on-year decrease of 7.04% [1] - The company recorded a net loss attributable to shareholders of 20.59 million RMB, which represents a year-on-year increase of 8.72% [1] Company Overview - RCON is a leading oilfield services company in China, primarily engaged in the research, development, and sales of oilfield automation products, enhanced oil recovery measures, and specialized equipment [1] - The company provides products and services to major Chinese oil and gas companies, aiming to improve their oil and gas production and transportation efficiency [1] Technological Advancements - RCON's automation systems enable remote monitoring and collection of real-time production data from oilfields, significantly aiding clients in enhancing extraction levels, reducing impurities, and lowering production costs [1]

Core Insights - Recon Technology Ltd. has successfully topped out the main manufacturing plant for its 40,000-ton-per-year waste plastic chemical recycling project, marking a significant milestone in the project's construction [1] - The project is expected to be fully completed by November 2025, with trial operations commencing in December 2025 [1] - The project will produce 30,000 tons of plastic pyrolysis oil and 6,000 tons of carbon residue annually, generating an estimated $30 million in annual returns [2] Project Details - The Recon Plastic Chemical Recycling Project covers approximately 50 acres and includes six pyrolysis units, two distillation units, and environmental protection facilities [2] - The project utilizes a dual-process approach combining catalytic pyrolysis and catalytic reforming, addressing technical challenges in traditional processes [4] - The primary raw material for the project is membrane film-type waste plastic, which is difficult to process using physical recycling methods [4] Strategic Partnerships - Recon is engaged in discussions with multinational chemical giants and leading domestic chemical companies, having signed product purchase intent and strategic cooperation agreements [3] Management Vision - The CEO of Recon emphasized the importance of the project in advancing the industrialization of the plastic chemical recycling industry and aims to transform the Shandong plant into a globally leading benchmark facility [5] - The company is focused on ensuring smooth commissioning and stable production of products that meet stringent standards during 2025 [5] Technological Advancements - The project implements full-process digital management to build a low-carbon smart factory, improving operational efficiency and environmental performance [6] - The project aims to effectively utilize various low-value waste plastics, contributing to solutions for "white pollution" and promoting a circular economy [6]

Group 1 - The core viewpoint of the article highlights the recent stock performance of RCON, which saw a 6.5% increase, reaching $2.684 per share with a total market capitalization of $82.1948 million as of August 21 [1] - Financial data indicates that RCON's total revenue for the year ending December 31, 2024, is projected to be 42.0693 million RMB, reflecting a year-on-year decrease of 7.04%, while the net profit attributable to the parent company is expected to be -20.5883 million RMB, showing a year-on-year increase of 8.72% [1] - RCON is identified as a leading oilfield service company in China, primarily engaged in the research, development, and sales of oilfield automation products, enhanced oil recovery measures, and specialized equipment [1] Group 2 - The company provides products and services to major Chinese oil and gas companies, aiming to enhance their oil and gas production and transportation efficiency [1] - RCON's automation systems are capable of remotely monitoring and collecting real-time production data from oilfields, which significantly aids clients in improving extraction levels, reducing impurities, and lowering production costs [1]

Core Viewpoint - RCON, a leading Chinese oilfield service company, is experiencing a decline in revenue while showing an increase in net profit, indicating a potential shift in operational efficiency and cost management strategies [1] Financial Performance - As of December 31, 2024, RCON reported total revenue of 42.0693 million RMB, a year-on-year decrease of 7.04% [1] - The company recorded a net loss attributable to shareholders of 20.5883 million RMB, which represents a year-on-year increase of 8.72% [1] Company Overview - RCON specializes in the research and sales of oilfield automation products, enhanced oil recovery measures, and specialized equipment [1] - The company provides products and services to major oil and gas companies in China, aimed at improving oil and gas production and transportation efficiency [1] Technological Advancements - RCON's automation systems enable remote monitoring and real-time data collection of oilfield production, significantly aiding clients in enhancing extraction levels, reducing impurities, and lowering production costs [1]

Core Viewpoint - RCON's stock increased by 4.01% on August 18, closing at $2.725 per share, with a total market capitalization of $83.46 million [1] Financial Performance - As of December 31, 2024, RCON reported total revenue of 42.07 million RMB, a year-on-year decrease of 7.04% [1] - The company recorded a net loss attributable to shareholders of 20.59 million RMB, which represents a year-on-year increase of 8.72% [1] Company Overview - RCON is a leading oilfield services company based in China, primarily engaged in the research, development, and sales of oilfield automation products, enhanced oil recovery measures, and specialized equipment [1] - The company provides products and services to major oil and gas companies in China, aimed at improving oil and gas production and transportation efficiency [1] Technological Advancements - RCON's automation systems enable remote monitoring and collection of real-time production data from oilfields, significantly assisting clients in enhancing extraction levels, reducing impurities, and lowering production costs [1]

Core Insights - The article discusses the financial performance and market position of RCON, a leading oilfield services company in China [1] Financial Performance - As of December 31, 2024, RCON reported total revenue of 42.0693 million RMB, a year-on-year decrease of 7.04% [1] - The company recorded a net loss attributable to shareholders of 20.5883 million RMB, which represents a year-on-year increase of 8.72% [1] Company Overview - RCON specializes in the research and sales of oilfield automation products, enhanced oil recovery measures, and specialized equipment [1] - The company provides products and services to major oil and gas companies in China, aimed at improving oil and gas production and transportation efficiency [1] Technological Advancements - RCON's automation systems enable remote monitoring and collection of real-time production data from oilfields [1] - This advanced application significantly aids oilfield clients in enhancing extraction levels, reducing impurities, and lowering production costs [1]

Core Viewpoint - RCON's stock price increased by 6.32% on August 13, reaching $2.69 per share, with a total market capitalization of $82.39 million [1] Financial Performance - As of December 31, 2024, RCON reported total revenue of 42.07 million RMB, a year-on-year decrease of 7.04% [1] - The company recorded a net loss attributable to shareholders of 20.59 million RMB, which represents a year-on-year increase of 8.72% [1] Company Overview - RCON is a leading oilfield services company based in China, primarily engaged in the research, development, and sales of oilfield automation products, enhanced oil recovery measures, and specialized equipment [1] - The company provides products and services to major oil and gas companies in China, aiming to improve the efficiency of oil and gas production and transportation [1] Technological Advancements - RCON's automation systems enable remote monitoring and collection of real-time production data from oilfields, significantly assisting clients in enhancing extraction levels, reducing impurities, and lowering production costs [1]