Automation and oilfield specialized equipment

Search documents
Recon Technology, Ltd Reports Financial Results for the First Six Months of Fiscal Year 2025
Prnewswireยท 2025-03-31 20:30
Financial Performance - Total revenues for the six months ended December 31, 2024, were approximately RMB 42.1 million ($5.8 million), a decrease of approximately RMB 3.2 million ($0.4 million) or 7.0% from RMB 45.3 million ($6.2 million) for the same period in 2023 [4][7] - Gross profit increased to RMB 13.4 million ($1.8 million) for the six months ended December 31, 2024, from RMB 12.1 million ($1.7 million) for the same period in 2023, with a gross margin increase to 31.7% from 26.7% [6][7] - Net loss was RMB 20.7 million ($2.8 million) for the six months ended December 31, 2024, a decrease of RMB 2.4 million ($0.3 million) from a net loss of RMB 23.1 million for the same period in 2023 [15][22] Revenue Breakdown - Revenue from automation products and software increased by RMB 3.4 million ($0.5 million) or 19.2%, driven by growing market demand for automated operations [8] - Revenue from oilfield environmental protection decreased by RMB 5.3 million ($0.7 million) or 66.2%, primarily due to the expiration of a hazardous waste operation permit [8] - Revenue from platform outsourcing services increased by RMB 1.0 million ($0.1 million) or 53.7%, attributed to a rise in transaction volumes [8] Cost and Expenses - Cost of revenues decreased from RMB 33.2 million ($4.5 million) for the six months ended December 31, 2023, to RMB 28.7 million ($3.9 million) for the same period in 2024 [5] - Selling expenses increased by 13.9% to RMB 5.2 million ($0.6 million) and general and administrative expenses increased by 9.1% to RMB 24.0 million ($3.3 million) [9] - Research and development expenses increased by 50.3% to RMB 10.2 million ($1.4 million) for the six months ended December 31, 2024 [10] Management Insights - The CEO indicated that while overall revenue declined slightly, there was an increase in demand for automation and oilfield specialized equipment, with expectations for a steady rebound in business, particularly in digital solutions and oilfield environmental protection [3] - The company made significant progress in its project to build a chemical recycling plant for low-value plastics, with construction scheduled to begin in April 2025 [3] Cash Position - As of December 31, 2024, the company had cash of approximately RMB 145.3 million ($19.9 million) and no short-term investments in bank fixed income products [16]