Welcome to our dedicated page for Recon Technology, Ltd. news (Ticker: RCON), a resource for investors and traders seeking the latest updates and insights on Recon Technology, Ltd. stock.
Recon Technology, Ltd. (NASDAQ: RCON) is a prominent oilfield service company based in China, providing advanced hardware, software, and on-site services for the petroleum mining and extraction industry. As the first non-state owned Chinese company listed on NASDAQ, Recon supplies leading oil exploration companies like Sinopec and The China National Petroleum Corporation (CNPC) with cutting-edge automated technologies, efficient gathering and transportation equipment, and reservoir stimulation measures. These services aim to enhance petroleum extraction levels, reduce impurities, and lower production costs.
Recon operates in four primary segments: Automation Product and Software, Equipment and Accessories, Platform Outsourcing Services, and Oilfield Environmental Protection. The Automation Product and Software segment remains the largest contributor to the company’s revenue.
The company’s product offerings include equipment for oil and gas production and transportation, such as heating furnaces, burners, and a variety of packers for fracturing and sand prevention. Their automation systems, like the pumping unit controller and remote terminal units (RTUs), monitor natural gas wells and collect vital data, ensuring efficient operations and resource management.
Recon is also committed to sustainability and innovation. Recently, Recon signed a strategic partnership with Changxia Digital Energy Technology to develop intelligent energy solutions, including distributed photovoltaics, solar storage systems, and PV-to-electric vehicle charging stations. This collaboration aims to promote sustainable development within the petroleum and petrochemical sectors.
Financially, Recon faced challenges during fiscal year 2023, experiencing a decline in revenue due to industry changes and external impacts. However, the company remains optimistic about future growth, particularly within the oilfield services segment and broader energy sectors, including carbon-zero opportunities and alternative materials for petroleum products.
Recon’s commitment to innovation is further exemplified by their participation in the 2024 Plastics Recycling Conference in Grapevine, Texas. Here, they will present their solutions for low-value plastic chemical recycling, showcasing their dedication to providing green and low-carbon solutions for the energy industry.
In terms of recent developments, Recon received a letter from NASDAQ confirming their compliance with minimum bid price requirements, ensuring the continuity of their listing and trading on the NASDAQ Capital Market. Recon's ongoing efforts to maintain compliance and strategic partnerships highlight their resilience and forward-looking approach in a dynamic industry landscape.
Recon Technology (NASDAQ: RCON) reported its fiscal year 2024 financial results, showing a modest revenue increase of 2.6% to RMB68.8 million ($9.5 million) compared to FY2023. The company's gross profit improved to RMB20.9 million ($2.9 million), with gross margin increasing to 30.3%. Despite these improvements, RCON recorded a net loss of RMB51.4 million ($7.1 million), though this represents a decreased loss compared to the previous year's RMB61.4 million. The company maintains a strong cash position of RMB110.0 million ($15.1 million) and short-term investments of RMB88.1 million ($12.1 million) as of June 30, 2024.
Recon Technology, (NASDAQ: RCON) announced its financial results for the first six months of fiscal year 2024.
Total revenue was RMB45.3 million ($6.4 million), consistent with the same period in 2022. Gross profit decreased to RMB12.1 million ($1.7 million), and gross margin dropped to 26.7% from 28.8% in 2022.
The company reported a net loss of RMB23.1 million ($3.3 million), down from RMB29.9 million ($4.2 million) in the same period last year. Management highlighted recovery in the oilfield services business, development of new offshore customers, and ongoing construction of a chemical recycling plant, expected to generate substantial future returns.
Revenue from equipment and accessories rose by 83.6% to RMB8.1 million ($1.1 million), while revenue from oilfield environmental protection and platform outsourcing services saw declines of 37.0% and 55.3%, respectively.
Cost of revenues increased slightly to RMB33.2 million ($4.7 million). Gross profit from automation products and software decreased by 14.3%, while cost for equipment and accessories rose by 106.1%.
Recon Technology announced on May 23, 2024, that it has regained compliance with Nasdaq's listing standards. The company received a letter from Nasdaq's Listing Qualifications Hearings Department on May 22, 2024, confirming that the bid price deficiency had been resolved. As a result, the scheduled hearing was canceled, and Recon's ordinary shares will continue to be listed and traded on the Nasdaq Capital Market.
Recon Technology, (NASDAQ: RCON) has received a delisting determination from Nasdaq due to not meeting the Minimum Bid Price Rule. The company has appealed the decision, but if no appeal is made, trading will be suspended on May 2, 2024. The recent approval of the consolidation of its Class A ordinary shares is expected to take effect on May 1, 2024.
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