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

BEIJING, Oct. 14, 2025 – Recon Technology, Ltd (NASDAQ: RCON), a leading independent solutions provider in the oilfield service and environmental sectors in China, has recently disclosed its financial results for fiscal year 2025. This report captures key financial outcomes, revenue trends, and strategic developments for the company during this period.

Financial Highlights

For the fiscal year that ended June 30, 2025, Recon reported total revenues of approximately RMB 66.3 million (about $9.3 million), reflecting a decrease of around RMB 2.5 million (or 3.7%) compared to RMB 68.8 million ($9.6 million) during the previous fiscal year. Here’s a further breakdown of the company's financial performance:

• - Gross Profit: Recon’s gross profit fell to RMB 15.2 million ($2.1 million), down from RMB 20.9 million ($2.9 million) year-on-year. Consequently, the gross margin decreased to 23.0% from 30.3% during the same period.
• - Net Loss: The company's net loss for FY 2025 shrank to RMB 44.2 million ($6.2 million), showing a decrease of RMB 7.2 million ($1.0 million) compared to the net loss of RMB 51.4 million ($7.2 million) in FY 2024.

Revenue by Segment

Diving into revenue sources, the company's offerings can be categorized as follows:
1. Automation Products and Software: Here, revenue increased by RMB 7.3 million ($1.0 million) or 27.1%, largely due to intensified sales efforts and the successful penetration of markets outside the oilfield sector.
2. Equipment and Accessories: For this segment, revenue saw a decline of RMB 2.0 million ($0.3 million), attributed to tight spending by oilfield clients who are managing stricter budgets.
3. Environmental Protection: This segment faced a tough year with revenue plummeting by RMB 7.3 million ($1.0 million) or 41.4%, primarily because the permit for Gansu BHD’s hazardous waste operations expired, leading to zero reported earnings from this source.
4. Platform Outsourcing Services: Overall, revenue dipped slightly by RMB 0.5 million ($0.1 million) or 13.0%. A key aspect contributing to this decline was a reduced need for upgrades from previous gas-station clients.

Strategic Insights

Despite the tough market environment, Mr. Shenping Yin, the Founder and CEO of Recon, shared insights regarding future endeavors. He indicated that the downturn in performance among primary clients, due to fluctuations in oil prices, prompted them to exercise caution, impacting Recon's profitability.