BEIJING, Oct. 14, 2025 /PRNewswire/ — Recon Generation, Ltd (NASDAQ: RCON) (“Recon” or the “Company”), a China-based free answers integrator within the oilfield provider and environmental coverage, electrical energy and coal chemical industries, lately introduced its monetary effects for fiscal yr 2025.

Fiscal Past Ended June 30, 2025 Monetary Highlights:

• Overall earnings trim by means of roughly RMB2.5 million ($0.4 million) or3.7% to RMB66.3 million ($9.3 million) for the yr ended June 30, 2025 from RMB68.8 million ($9.6 million) for a similar duration in 2024.
• Rude benefit lowered to RMB15.2 million ($2.1 million) for the yr ended June 30, 2025, from RMB20.9 million ($2.9 million) for a similar duration in 2024.
• Rude margin lowered to 23.0% for the yr ended June 30, 2025 from 30.3% for a similar duration in 2024.
• Web loss used to be RMB44.2 million ($6.2 million) for the yr ended June 30, 2025, a trim of RMB7.2 million ($1.0 million) from internet lack of RMB51.4 million ($7.2 million) for a similar duration of 2024.

Control Statement

Mr. Shenping Yin, Founder and CEO of Recon mentioned, “Right through the 2025 monetary yr, our number one purchasers, home oil firms, have skilled declining efficiency because of the have an effect on of oil value fluctuations. As a result, they have got followed extra wary and cost-conscious approaches to capital expenditures and expense control. This has had a adverse have an effect on on our profitability. Thankfully, we’ve got fix a number of pristine purchasers out of doors of the oilfield business and expanded our layout store with offshore oilfield shoppers. Those traits have stabilized our industry operations. Right through the 2025 monetary yr, we additionally effectively expanded our out of the country oilfield shopper bottom, which can considerably give a contribution to our industry within the pristine monetary yr.

On the identical month, we’re urgent forward with development of our Chemical Round Manufacturing unit. For the 2025 fiscal yr, we’ve got finished all pre-approval procedures required by means of native government, bought the development mission making plans allow, and formally began the development paintings on April 28, 2025. It’s expected that the mission might be totally finished by means of the top of 2025. We consider that the plastic chemical recycling industry will support the corporate’s operations considerably within the 2026 monetary yr.”

Fiscal Past Ended 202 5  Monetary Effects:

Earnings

Overall revenues for the yr ended June 30, 2025 have been roughly RMB66.3 million ($9.3 million), a trim of roughly RMB2.5 million ($0.4 million) or3.7% from RMB68.8 million ($9.6 million) for a similar duration in 2024.

• Earnings from automation product and tool greater by means of RMB7.3 million ($1.0 million) or 27.1%. The rise in earnings used to be essentially pushed by means of the corporate’s enhanced gross sales actions and a hit enlargement into markets past oilfields, partly offset by means of declining gross sales to sure oilfield purchasers.
• Earnings from apparatus and equipment lowered by means of RMB2.0 million ($0.3 million) or 10.0%. The principle reason why for the subside in earnings is that oilfield shoppers, to deliver to assure their profits, have strictly managed their extraction budgets and carried out cheap operational methods.
• Earnings from oilfield environmental coverage lowered by means of RMB7.3 million ($1.0 million) or 41.4% essentially because of the expiration of Gansu BHD’s hazardous squander operation allow. In consequence, incorrect earnings used to be recorded. The corporate is lately occupied within the lively utility procedure for the renewal of related {qualifications}. But even so, some shoppers request and we affirmative to a lower cost for a portion of our wastewater industry to deliver to ascertain a long-term courting, make happen a trim in earnings from that portion of the industry.
• Earnings from platform outsourcing products and services lowered by means of RMB0.5 million ($0.1 million) or 13.0%. The trim in earnings used to be essentially pushed by means of a RMB0.8 million loose brought about by means of lowered call for from former gas-station shoppers upgrading their in-house on-line programs and by means of decrease cooperation with third-party companions. This trim used to be in part offset by means of a RMB1.30 million building up pushed by means of upper transaction volumes from diesel customers and advanced agreement charges with freight-exchange-platform shoppers.
• As of June 30, 2025, he manufacturing facility for the chemical recycling continues to be below development and has now not began manufacturing and gross sales but.

Price of earnings

Price of revenues lowered from RMB48.0 million for the yr ended June 30, 2024 to RMB51.0 million ($7.1 million) for a similar duration in 2025.

For the years ended June 30, 2024 and 2025, charge of earnings from automation product and tool used to be roughly RMB23.9 million ($3.3 million) and RMB28.6 million ($4.0 million), respectively, representing building up of roughly RMB4.7 million ($0.7 million) or 20.0%. The rise in charge of earnings from automation product and tool used to be essentially on account of greater earnings of automation merchandise and tool.

For the years ended June 30, 2024 and 2025, charge of earnings from apparatus and equipment used to be roughly RMB14.1 million ($2.0 million) and RMB13.2 million ($1.8 million), respectively, representing a trim of roughly RMB0.9 million ($0.1 million) or 6.2%. The trim in prices of earnings used to be essentially pushed by means of lowered industry job, mirroring the similar issue in the back of the loose in earnings.

For the years ended June 30, 2024 and 2025, charge of earnings from oilfield environmental coverage used to be roughly RMB9.2 million ($1.3 million) and RMB8.5 million ($1.2 million), respectively, representing a trim of roughly RMB0.7 million ($0.1 million) or 7.5%. The trim in the price of earnings from oilfield environmental coverage used to be in sequence with trim in earnings.

For the years ended June 30, 2024 and 2025, charge of earnings from platform outsourcing products and services remained strong at RMB0.6 million ($0.09 million).

For the years ended June 30, 2024 and 2025, charge of earnings from chemical recycling used to be RMB0.1 million ($0.01 million) and 0, which used to be industry and gross sales linked tax. As of June 30, 2025, the manufacturing facility for the chemical recycling continues to be below development and has now not began manufacturing and gross sales but.

Rude benefit

Rude benefit greater to RMB15.2 million ($2.1 million) for the yr ended June 30, 2025 from RMB20.9 million ($2.9 million) for a similar duration in 2024. Our rude benefit as a proportion of earnings lowered to 23.0% for the yr ended June 30, 2025 from 30.3% for a similar duration in 2024.

• For the years ended June 30, 2024 and 2025, our rude take advantage of automation product and tool used to be roughly RMB3.0 million ($0.4 million) and RMB 5.5 million ($0.8 million), respectively, representing an building up in rude benefit of roughly RMB2.5 million ($0.4 million) or 84.9%. The rise in rude margin used to be essentially because of the increased percentage of high-margin provider companies.
• For the years ended June 30, 2024 and 2025, rude take advantage of apparatus and equipment used to be roughly RMB6.4 million ($0.9 million) and RMB5.2 million ($0.7 million), respectively, representing a minute trim of roughly RMB1.2 million ($0.2 million) or 18.5%. The subside in rude margin used to be essentially pushed by means of the oilfield shoppers’ shift to a cheap working style and tighter funds controls, compounded by means of an sudden arise in after-sales bills.
• For the years ended June 30, 2024 and 2025, rude take advantage of oilfield environmental coverage used to be roughly RMB8.3 million ($1.2 million) and RMB1.7 million ($0.2 million), respectively, representing a trim of RMB6.6 million ($0.9 million) or 79.1%. The principle reason why for the trim in rude margin is that considered one of our shoppers lowered the agreement value.
• For the years ended June 30, 2024 and 2025, rude take advantage of platform outsourcing products and services used to be roughly RMB3.3 million ($0.5 million) and RMB2.8 million ($0.4 million), respectively, representing a trim of roughly RMB0.5 million ($0.1 million) or 15.7%.  The trim in rude benefit used to be in line with the alternate in earnings.
• For the years ended June 30, 2024 and 2025, rude benefit losses from chemical recycling used to be RMB0.1 million ($0.01 million) and 0, respectively. As of June 30, 2025, the manufacturing facility for the chemical recycling residue below development and has now not began manufacturing and gross sales but.

Working bills

Promoting bills lowered by means of 9.9%, or RMB1.1 million ($0.1 million), from RMB10.4 million ($1.4 million) within the yr ended June 30, 2024 to RMB9.3 million ($1.3 million) in the similar duration of 2025.

Normal and administrative bills lowered by means of 22.1%, or RMB14.2 million ($2.0 million), from RMB63.8 million ($8.9 million) within the yr ended June 30, 2024 to RMB49.6 million ($6.9 million) in the similar duration of 2025.

Web provision for credit score losses of RMB4.1 million ($0.6 million) for the yr ended June 30, 2024 as in comparison to internet fix of credit score losses of RMB2.9 million ($0.4 million) for a similar duration in 2025.

Analysis and building bills greater by means of 15.0%, or RMB2.1 million ($0.3 million) from RMB14.3 million ($2.0 million) for the yr ended June 30, 2024 to RMB16.4 million ($2.3 million) for a similar duration of 2025.

Loss from operations

Loss from operations used to be RMB57.3 million ($8.0 million) for the yr ended June 30, 2025, in comparison to a lack of RMB71.6 million ($10.0 million) for a similar duration of 2024. This RMB14.3 million ($2.0 million) trim in loss from operations used to be essentially because of the trim in working expense as mentioned above.

Trade in honest price adjustments of warrant legal responsibility

The Corporate categorised the warrants issued in reference to ordinary proportion providing as liabilities at their honest price and altered the warrant software to honest price at every reporting duration. This legal responsibility is topic to re-measurement at every steadiness sheet month till exercised, and any alternate in honest price is identified in our remark of operations. Achieve in alternate in honest price of warrant legal responsibility used to be RMB0.9 million ($0.1 million) and RMB0.01 million ($0.001 million) for the years ended June 30, 2024 and 2025, respectively. The principle reason why for the trim of loss within the honest price of the warrant legal responsibility used to be that on December 14, 2023, we redeemed an mixture of 17,953,269 warrants (an identical to 997,404 warrants publish the 2024 Opposite Crack) from the Dealers. Following this transaction, simplest 863,333 warrants remained exceptional (47,964 post-split), and the smaller exceptional steadiness at once diminished the magnitude of honest price adjustments.

Impairment loss on kindness and intangible property

The Corporate identified the profusion of acquire value over the honest price of property got and liabilities assumed of the industry got used to be recorded as kindness and honest price of recognized intangible property, which is buyer courting on account of the step acquisition of FGS. Along side the preparation of our consolidated monetary remark for years ended June 30, 2024 and 2025, the control carried out analysis at the impairment of kindness and intangible property and recorded an impairment loss on kindness and intangible property of zero and 0 for the years ended June 30, 2024 and 2025, respectively. As of June 30, 2023, kindness and intangible property of FGS had totally gathered for impairment. The impairment used to be basically because of the verdict of the most important shoppers to form their very own self reliant unified gadget and to seriously let go the procurement of third-party products and services.

Pastime source of revenue

Web passion source of revenue used to be RMB12.3 million ($1.7 million) for the yr ended June 30, 2025, in comparison to internet passion source of revenue of RMB21.8 million ($3.0 million) for a similar duration of 2024. The RMB9.5 million ($1.3 million) trim in internet passion source of revenue used to be essentially on account of lowered third-party mortgage balances and decrease allocations to non permanent investments all the way through the yr ended June 30, 2025.

Alternative source of revenue (bills), internet.

Alternative internet source of revenue used to be RMB1.3 million ($0.2 million) for the yr ended June 30, 2025, in comparison to alternative internet bills of RMB0.7 million ($0.1 million) for a similar duration of 2024. The RMB2.0 million ($0.3 million) building up alternative internet source of revenue used to be essentially because of a trim in subsidy source of revenue of RMB0.2 million. The rise in alternative internet source of revenue used to be on account of a trim in subsidy source of revenue and an asset write-off acquire of roughly RMB0.1 million. Moreover, following the closure of the Qinghai place of business, RMB0.5 million in payables that might not be settled used to be identified as source of revenue,  RMB0.2 million in receivables that might now not be accumulated used to be written off as a loss and an building up in foreign currency echange transaction source of revenue of RMB1.8 million because of the fluctuation of substitute fee of RMB in opposition to US bucks all the way through the yr ended June 30, 2025 in comparison to the similar duration of 2024.

Web loss

Because of the standards described above, internet loss used to be RMB43.7 million ($6.1 million) for the yr ended June 30, 2025, a trim of RMB7.7 million ($1.1 million) from internet lack of RMB51.4 million ($7.2 million) for a similar duration of 2024.

Money and non permanent funding

As of June 30, 2025, we had coins within the quantity of roughly RMB98.9 million ($13.8 million) and non permanent funding in reserve fastened source of revenue product of roughly RMB3.6 million ($0.5 million). As of June 30, 2024, we had coins within the quantity of roughly RMB110.0 million ($15.4 million) and non permanent funding in reserve fastened source of revenue product of roughly RMB88.1million ($12.3 million).

About Recon Generation, Ltd (“RCON”)

Recon Generation, Ltd (NASDAQ: RCON) is the Public’s Republic of China’s first NASDAQ-listed non-state owned oil and gasoline garden provider corporate. Recon provides China’s greatest oil exploration firms, Sinopec (NYSE: SNP) and The China Nationwide Petroleum Company (“CNPC”), with complex automatic applied sciences, environment friendly accumulating and transportation apparatus and reservoir stimulation measure for expanding petroleum extraction ranges, lowering impurities and reducing manufacturing prices. Over the years, RCON has taken eminent positions inside a number of segmented markets of the oil and gasoline filed provider business. RCON additionally has evolved strong long-term cooperation courting with its main purchasers. For supplementary knowledge please consult with: http://www.recon.cn/. 

Ahead-Taking a look Statements

Recon comprises “forward-looking statements” inside the which means of the federal securities rules all over this press shed. A reader can determine forward-looking statements as a result of they aren’t restricted to ancient reality or they importance phrases akin to “scheduled,” “may,” “will,” “could,” “should,” “would,” “expect,” “believe,” “anticipate,” “project,” “plan,” “estimate,” “forecast,” “goal,” “objective,” “committed,” “intend,” “continue,” or “will likely result,” and matching expressions that worry Recon’s technique, plans, intentions or ideals about moment occurrences or effects. Ahead-looking statements are topic to dangers, uncertainties and alternative components that can alternate at any month and might motive fresh effects to range materially from those who Recon anticipated. Many of those statements are derived from Recon’s working budgets and forecasts, that are in line with many crystal clear suppositions that Recon believes are cheap, or are in line with diverse suppositions about sure plans, actions or occasions which we think will or might happen going forward. Alternatively, it is vitally tricky to are expecting the impact of identified components, and Recon can’t look ahead to all components that might impact fresh effects that can be noteceable to an investor. All forward-looking knowledge will have to be evaluated within the context of those dangers, uncertainties and alternative components, together with the ones components disclosed below “Risk Factors” in Recon’s most up-to-date Annual Document on Method 20-F and any next half-year monetary filings on Method 6-Okay filed with the Securities and Alternate Fee. All forward-looking statements are certified of their entirety by means of the cautionary statements that Recon makes from month to month in its SEC filings and community communications. Recon can’t ensure the reader that it’s going to understand the effects or traits Recon anticipates, or, despite the fact that considerably discovered, that they are going to consequence within the repercussions or impact Recon or its operations in the way in which Recon expects. Ahead-looking statements discuss simplest as of the month made. Recon undertakes incorrect legal responsibility to replace or revise any forward-looking statements to mirror occasions or instances bobbing up nearest the month on which they have been made, aside from as differently required by means of legislation. Because of those dangers and uncertainties, readers are cautioned to not park undue reliance on any forward-looking statements incorporated herein or that can be made in different places from month to month by means of, or by and for, Recon.

For more info, please touch:

The Corporate
Ms. Liu Jia
Well-known Monetary Officer
Recon Generation, Ltd
Telephone: +86 (10) 8494-5799
Electronic mail: [email protected] 

SOURCE Recon Generation, Ltd