Recon Technology H1 FY2026 Revenue Soars 102.2% to RMB85M, Loss Narrows 65%
Recon Technology doubled six-month revenue to RMB85.0M ($12.2M) in H1 FY2026, up 102.2% year-over-year, with gross profit rising 113.2% to RMB28.5M and gross margin improving to 33.5%. Net loss narrowed by 65.2% to RMB7.2M ($1.0M), driven by a 197.6% surge in automation software revenue from overseas oilfield projects.
1. Financial Results for H1 FY2026
Recon reported revenue of RMB85.0 million ($12.2 million) for the six months ended December 31, 2025, up 102.2% from RMB42.0 million a year earlier. Gross profit climbed 113.2% to RMB28.5 million, lifting gross margin to 33.5%, while net loss narrowed 65.2% to RMB7.2 million ($1.0 million), or RMB0.61 loss per share.
2. Segment Performance Drivers
Automation product and software revenue jumped 197.6%, driven by RMB44.2 million in overseas oilfield projects, offsetting a RMB2.7 million domestic decline. Equipment and accessories sales rose 10.2%, led by offshore operations and new onshore clients, while environmental services revenue increased 101.3% on higher wastewater treatment pricing and platform outsourcing fell to zero due to clients’ strategic shifts.
3. Strategic Initiatives and Outlook
Management highlighted progress on a plastic chemical recycling project set to complete by July 2026, positioning the company in the circular economy and ESG markets. The firm plans to redeploy personnel to strengthen domestic maintenance and continue diversifying into high-value services to sustain growth and shareholder value.