Recon Technology, Ltd Reports Financial Year Results for Fiscal Year 2025

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]