Recon(US:RCON) Prnewswireยท2024-10-30 12:30Financial Performance - Total revenue for the fiscal year ended June 30, 2024, increased by approximately RMB1.7 million ($0.2 million) or 2.6% to RMB68.8 million ($9.5 million) from RMB67.1 million ($9.2 million) for the same period in 2023 [2][4] - Gross profit increased to RMB20.9 million ($2.9 million) for the year ended June 30, 2024, from RMB18.9 million ($2.6 million) for the same period in 2023 [2][4] - Gross margin improved to 30.3% for the year ended June 30, 2024, compared to 28.1% for the same period in 2023 [2][4] - Net loss decreased to RMB51.4 million ($7.1 million) for the year ended June 30, 2024, down from a net loss of RMB61.4 million ($8.5 million) for the same period in 2023 [2][4] Revenue Breakdown - Revenue from automation products and software increased by RMB0.2 million ($0.03 million) or 0.8% [4] - Revenue from equipment and accessories increased by RMB4.2 million ($0.6 million) or 26.0%, driven by growth in the oilfield business [4] - Revenue from oilfield environmental protection decreased by RMB1.5 million ($0.2 million) or 8.1% due to reduced production intensity from customers [4] - Revenue from platform outsourcing services decreased by RMB1.1 million ($0.2 million) or 22.4% due to reduced demand from former gas station customers [4] Cost and Expenses - Cost of revenues decreased slightly from RMB48.2 million in 2023 to RMB48.0 million ($6.6 million) in 2024 [4] - Selling expenses decreased by 2.5% from RMB10.6 million ($1.5 million) in 2023 to RMB10.4 million ($1.4 million) in 2024 [5] - General and administrative expenses decreased by 17.0% from RMB76.8 million ($10.6 million) in 2023 to RMB63.8 million ($8.8 million) in 2024 [5] - Research and development expenses increased by 62.3% from RMB8.8 million ($1.2 million) in 2023 to RMB14.3 million ($2.0 million) in 2024 [5] Management Commentary - The CEO noted that fiscal year 2024 was a year of change and opportunity, with an overall rise in revenue due to increased business volume as the economy recovers [3] - The company plans to expand its focus from oilfield services to broader energy sectors, including carbon-zero opportunities and alternative materials [3] - The company is actively exploring the chemical recycling business and has reached preliminary cooperation agreements with key customers [3] Cash and Investments - As of June 30, 2024, the company had cash of approximately RMB110.0 million ($15.1 million) and short-term investments of approximately RMB88.1 million ($12.1 million) [5]