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RCON

Recon Technology, Ltd.

RCON

Recon Technology, Ltd. • NASDAQ
$1.32 ▲ 5.60% (+0.07)
Market Cap $40.43 M
52w High $7.16
52w Low $1.13
Dividend Yield 0%
P/E -2
Volume 5.43K
Outstanding Shares 30.63M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2025 $21.035M $20.127M $-10.294M -48.939% $-1.15 $-12.588M
Q1-2025 $21.035M ▲ $20.127M ▼ $-10.294M ▲ -48.939% ▲ $-1.15 ▲ $-12.588M ▲
Q4-2024 $11.799M $28.872M $-13.659M -115.763% $-1.85 $-23.709M
Q3-2024 $11.799M ▼ $28.872M ▼ $-13.659M ▼ -115.763% ▼ $-1.85 ▲ $-23.709M ▼
Q2-2024 $44.295M $34.166M $-11.277M -25.459% $-4.14 $-10.688M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2025 $145.284M $541.714M $64.939M $488.537M
Q1-2025 $145.284M ▼ $541.714M ▼ $64.939M ▲ $488.537M ▼
Q4-2024 $198.083M $552.39M $61.456M $502.555M
Q3-2024 $198.083M ▼ $552.39M ▲ $61.456M ▼ $502.555M ▲
Q2-2024 $255.799M $483.256M $67.886M $425.98M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2025 $-10.294M $-6.333M $24.553M $-821.785K $0 $-9.23M
Q1-2025 $-10.294M ▲ $-6.333M ▲ $24.553M ▲ $-821.785K ▼ $0 $-9.23M ▲
Q4-2024 $-13.659M $-18.569M $-29.287M $38.516M $0 ▲ $-11.212M
Q3-2024 $-13.659M ▲ $-18.569M ▼ $-29.287M ▼ $38.516M ▲ $-121.853M ▼ $-11.212M ▲
Q2-2024 $-22.075M $-6.469M $60.251M $-31.328M $19.454M $-21.363M

Revenue by Products

Product Q2-2022Q4-2022Q2-2023Q3-2023
Automation product and software
Automation product and software
 $20.00M ▲$10.00M ▼$10.00M ▲$20.00M ▲
Oilfield environmental protection
Oilfield environmental protection
 $10.00M ▲$10.00M ▲$10.00M ▲$10.00M ▲
Platform Outsourcing Services
Platform Outsourcing Services
 $0 ▲$0 ▲$0 ▲$0 ▲
Equipment and accessories
Equipment and accessories
 $0 ▲$10.00M ▲$0 ▼$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue is very small and has not grown meaningfully over the past few years, which limits operating leverage. The company usually posts operating losses, with only a brief period of profit a few years ago that looks more like a one‑off than a steady trend. Margins are thin, and the core business does not yet cover overhead costs. Earnings per share look extremely volatile, largely because of reverse stock splits and the very small equity base, so the apparent big swings in per‑share figures shouldn’t be read as stable, repeatable performance.

Balance Sheet

Balance Sheet The balance sheet is relatively simple and lightly levered. Debt is low, which reduces financial risk, but cash has come down quite a bit from earlier levels, suggesting reduced cushion. Equity has climbed compared with a few years ago, likely reflecting capital raised from shareholders rather than profits generated by the business. Overall, the company has a modest asset base, limited borrowing, and appears dependent on fresh equity and careful cash management to support operations.

Cash Flow

Cash Flow The business has consistently burned cash from operations in recent years, meaning day‑to‑day activities are not yet self‑funding. Capital spending is minimal, so free cash flow is essentially the same as operating cash flow and has also been negative. This pattern implies the company needs either existing cash reserves or new external funding to keep investing and to cover ongoing costs. Until operating cash flow turns positive, liquidity and access to capital remain key watch‑points.

Competitive Edge

Competitive Edge Recon occupies a narrow niche in China’s energy services space, with a focus on automation, environmental solutions, and digital tools rather than heavy equipment. Its main strengths are deep relationships with major state‑owned oil companies, knowledge of local field conditions, and tailored solutions that larger global competitors may not match as easily. At the same time, it is a very small player surrounded by much larger domestic and international firms, and it relies heavily on a few key customers and the broader investment cycle of China’s oil and gas sector. This creates both concentration risk and sensitivity to shifts in industry spending or regulation.

Innovation and R&D

Innovation and R&D The company leans heavily on technology and R&D to differentiate itself. It has developed proprietary oilfield wastewater treatment equipment, advanced chemical recycling processes for waste plastics, and digital platforms for gas stations, including a carbon‑offsetting service. Management appears to be increasing R&D investment and focusing on automation, algorithms, and cloud‑based tools. The big opportunity is if these innovations scale commercially, especially the new recycling plant, but there is also execution risk: new technologies must prove reliable in the field, win contracts, and generate stable, recurring revenue to justify the ongoing R&D spend.

Summary

Recon Technology is a small, niche technology and service provider to China’s energy industry, with interesting environmental and digitalization angles but a weak financial track record so far. The income statement shows limited revenue and recurring losses, while cash flow is consistently negative, indicating the business is not yet self‑sustaining. The balance sheet is lightly indebted but relies on shareholder capital and shrinking cash reserves. Competitively, the company benefits from specialized know‑how and long‑standing ties to major state‑owned clients, yet it faces scale disadvantages and customer concentration in a cyclical, regulated sector. Its future hinges largely on whether its innovations—particularly in chemical recycling, automation, and digital gas stations—can move from promising projects to durable, profitable businesses over time.

NEWS

October 14, 2025 · 4:30 PM UTC

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

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