The 66% revenue growth and narrowing losses are positive, but the expired hazardous waste permit at Gansu BHD and the reliance on CNPC (65% of revenue) are material risks. The new plastic recycling plant just began trial production — monitor for commercial ramp and permit renewals. The Nasdaq compliance regain removes near-term delisting risk.
Price Chart
Executive Summary
Recon Technology filed its annual report (20-F) for the fiscal year ended June 30, 2026, reporting a 66% YoY revenue increase to RMB 109.9 million but a net loss of RMB 29.7 million (improved from RMB 42.6 million loss in FY2025). The company regained Nasdaq compliance on September 16, 2026 after its bid price stayed above $1.00 for ten consecutive days. The filing also notes the commencement of trial production at its new waste plastic chemical recycling plant on September 28, 2026, and an expired Hazardous Waste Operating Permit at Gansu BHD that has not been renewed since July 2023.
Key Facts
- Revenue for FY2026 was RMB 109.9 million, up from RMB 66.3 million in FY2025 and RMB 68.9 million in FY2024.
- Net loss attributable to Recon Technology was RMB 29.7 million for FY2026, compared to a loss of RMB 42.6 million in FY2025 and RMB 49.9 million in FY2024.
- Loss from operations was RMB 41.2 million in FY2026, improved from RMB 57.3 million in FY2025.
- Total assets as of June 30, 2026 were RMB 639.4 million, up from RMB 525.6 million a year earlier.
- Total shareholders' equity was RMB 566.3 million as of June 30, 2026, versus RMB 467.4 million at June 30, 2025.
- As of June 30, 2026, there were 353,154 Class A Ordinary Shares and 20,000,000 Class B Ordinary Shares outstanding (post-1-for-200 reverse stock split effective August 18, 2026).
- The company regained Nasdaq compliance on September 16, 2026 after the closing bid price remained at or above $1.00 for ten consecutive business days.
- Trial production at the waste plastic chemical recycling plant in Shandong commenced on September 28, 2026; construction in progress related to the project was approximately RMB 86.4 million as of June 30, 2026.
- Gansu BHD's Hazardous Waste Operating Permit expired on July 26, 2023 and has not been renewed.
- Sinopec accounted for 12% of FY2026 revenue; CNPC accounted for 65%.
- Outstanding loans to third parties totaled approximately RMB 330.0 million as of June 30, 2026.
- Net cash transferred from the company to the VIEs in FY2026 was RMB 194.0 million.
Financial Impact
Revenue grew 66% YoY to RMB 109.9 million, but the company remains unprofitable with a net loss of RMB 29.7 million. The loss narrowed significantly from prior years. The company's total assets grew 22% to RMB 639.4 million, partly driven by loans to third parties of ~RMB 330 million.
Risk Factors
- Expired Hazardous Waste Operating Permit at Gansu BHD not renewed since July 2023 — could disrupt operations and revenue.
- Heavy customer concentration: CNPC accounted for 65% of FY2026 revenue; loss of this customer would be material.
- Outstanding loans to third parties of ~RMB 330 million represent a significant portion of total assets and carry collection risk.
- New waste plastic chemical recycling business is in early trial production stage with no meaningful revenue yet.
- VIE structure and PRC regulatory uncertainties continue to pose legal and operational risks.
- Future Gas Station (Beijing) business declined to zero revenue by June 2026 due to Sinopec ending cooperation.
Investment Themes
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 20-F Filing (Primary) | 0001104659-26-112415 |
| Document: 0001104659-26-112415-index.html | 0001104659-26-112415 |
| Document: 0001104659-26-112415.txt | 0001104659-26-112415 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 30, 2026 25d ago | 20-F | $1.30 | awaiting T+60 | — | $0.9201 (−29.22%) |
Sep 30, 2026 26d ago | Press Release | $1.29 | awaiting T+60 | — | $0.9201 (−28.67%) |
Sep 18, 2026 5w ago | 6-K | $1.30 | awaiting T+60 | — | $0.9201 (−29.22%) |
Aug 13, 2026 10w ago | 6-K | $0.0256 | awaiting T+60 | — | $0.9201 (+3494.14%) |
Jul 29, 2026 12w ago | 424B5 | $0.3553 $0.004900 | ▲ +98.62% | ▲ +103.35% | $0.9201 (−158.96%) |
Apr 16, 2026 27w ago | 6-K | $0.9100 $0.4400 | ▲ +51.65% | ▲ +57.79% | $0.9201 (−1.11%) |
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