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olivLaw · US equity research

Recon Technology, Ltd RCON

Oil & Gas Field Services, NEC · SIC 1389 · Vertical: Oil & Gas Field Services, NEC (SIC 1389)

0.84USD−5.11% · 1 dayClose 04 Nov 2026

Recon Technology supplies oilfield equipment, automation systems, tools and field services to petroleum companies, mainly in China. Since 2023 it has also built a chemical recycling business for waste plastic, which its annual report says has entered trial production, a notable change of direction for a small oilfield services provider.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Recon Technology, Ltd (RCON) stock was 0.84 USD (−5.11% on the day), with market capitalisation 8.9 m USD, beta 0.71, 52-week range 0.84–344.00 USD. Latest reported quarter (Q1 2017): revenue of 1.2 m USD (+106.8% YoY), net income of -818.7 k USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
8.9 m USD
shares as of 30 Jun 2025
P/E (TTM)
unavailable
Diluted EPS TTM -39.28 · TTM to 30 Jun 2026
E/P (TTM)
-4,704.19%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
0.71
Volatility (1y) 225%
52-week range
0.84344.00

Price history

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Technical reading

RSI (14)
24.3
oversold (≤ 30)
Bollinger (20, 2)
0.83 – 1.13
in the lower half of the band · %B 0.03 · band width 31.3%
SMA 50 / 200
1.21 / 123.74
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-0.86 / -1.22
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−33.2%−1.1%−32.1 pp—
3 months−93.0%−0.5%−92.6 pp—
6 months−99.5%+4.4%−103.9 pp—
Year to date−99.7%+12.3%−112.1 pp—
1 year−99.7%+13.5%−113.3 pp+10.9%
3 years−99.9%+76.4%−176.3 pp−29.5%
5 years−100.0%+63.7%−163.7 pp—
Max drawdown (1y)
−99.8%
02 Mar 2026 → 04 Nov 2026
Max drawdown (5y)
−100.0%
08 Nov 2021 → 04 Nov 2026
Compound annual growth (5y)
−84.2%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q1 2017 · 30 Sept 2016

Revenue
1.2 m USD
+106.8% YoY
Net income
-818.7 k USD
unavailable YoY
Diluted EPS
unavailable
unavailable YoY
net / operating
-70.0% / -70.3%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ2 '15Q3 '15Q4 '15Q1 '16Q2 '16Q3 '16Q4 '16Q1 '17
Revenue3.5 m3.3 m987.5 k565.6 k4.4 m703.8 k697.6 k1.2 m
Cost of revenue2.0 m2.3 m1.9 m502.4 k3.6 m440.2 k826.3 k1.0 m
Gross profit1.5 m1.0 m-932.4 k63.2 k887.8 k263.6 k-128.7 k163.8 k
Research & development202.5 k89.1 k284.6 k282.2 k421.5 k190.4 k139.3 k92.8 k
Operating income388.8 k66.1 k-5.6 m-1.4 m-504.5 k-1.3 m-2.9 m-822.1 k
Depreciation & amortisation25.0 k15.5 k25.9 k40.9 k36.4 k36.0 k30.9 k30.8 k
Interest expense37.0 k55.5 k50.1 k43.7 k30.3 k30.8 k31.6 k19.9 k
Pre-tax income1.0 m-261.4 k-5.7 m-1.4 m-519.3 k-1.3 m-2.9 m-821.7 k
Income tax100.8 k-29.6 k-495.8 k-2.6 k-131.2 k219.1 k-2.3 k-3.0 k
Net income867.5 k-250.0 k-4.7 m-1.4 m-388.1 k-1.5 m-2.9 m-818.7 k
Diluted EPS0.18-0.05-0.90 ≈-0.26-0.07-0.26-0.50 ≈—
Capex68.1 k ≈403 ≈257.2 k74.0 k2.8 k ≈1.1 k ≈-50.7 k4.4 k

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue14.9 m9.3 m7.4 m12.5 m9.3 m9.5 m9.3 m16.2 m
Revenue YoY+16.5%−37.6%−20.2%+68.5%−26.0%+2.4%−2.3%+75.0%
Net income-3.7 m-2.7 m-3.5 m14.3 m-8.2 m-6.9 m-5.9 m-4.4 m
Net income YoYunavailableunavailableunavailableunavailable−157.2%unavailableunavailableunavailable
Diluted EPSunavailableunavailableunavailable0.48-3.78-1.36-0.65-39.28
Diluted EPS YoYunavailableunavailableunavailableunavailable−887.5%unavailableunavailableunavailable
net %-24.8%-29.3%-47.6%114.1%-88.2%-72.4%-64.3%-27.0%
Free cash flow-11.0 m-4.6 m-5.8 m-4.9 munavailableunavailableunavailableunavailable

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 30 Jun 2026

Cash
4.4 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
81.4 m USD
Total assets
94.2 m USD
Debt / equity
unavailable
Current ratio
2.73x
ROE
-5.9%
ROA
-5.2%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
9.5 m
2025
9.3 m
2026
16.2 m

SEC (XBRL)· 30 Sept 2026verified

Cost of revenue
2024
6.6 m
2025
7.1 m
2026
10.8 m

SEC (XBRL)· 30 Sept 2026verified

Gross profit
2024
2.9 m
2025
2.1 m
2026
5.4 m

SEC (XBRL)· 30 Sept 2026verified

Research & development
2024
2.0 m
2025
2.3 m
2026
1.9 m

SEC (XBRL)· 30 Sept 2026verified

Operating income
2024
-9.9 m
2025
-8.0 m
2026
-6.1 m

SEC (XBRL)· 30 Sept 2026verified

Depreciation & amortisation
2024
391.4 k
2025
439.4 k
2026
423.0 k

SEC (XBRL)· 30 Sept 2026verified

EBITDA
2024
-9.5 m ≈
2025
-7.6 m ≈
2026
-5.7 m ≈

SEC (XBRL)· 30 Sept 2026derived

Interest expense
2024
147.3 k
2025
155.1 k
2026
153.5 k

SEC (XBRL)· 30 Sept 2026verified

Pre-tax income
2024
-7.1 m
2025
—
2026
—

SEC (XBRL)· 30 Oct 2024verified

Income tax
2024
4
2025
221
2026
-237

SEC (XBRL)· 30 Sept 2026verified

Net income
2024
-6.9 m
2025
-5.9 m
2026
-4.4 m

SEC (XBRL)· 30 Sept 2026verified

Diluted EPS
2024
-1.36
2025
-0.65
2026
-39.28

SEC (XBRL)· 30 Sept 2026verified

Weighted average diluted shares
2024
25.3 k
2025
45.5 k
2026
111.3 k

SEC (XBRL)· 30 Sept 2026verified

Balance sheet · USD

Cash
2024
15.1 m
2025
13.8 m
2026
4.4 m

SEC (XBRL)· 30 Sept 2026verified

Receivables
2024
5.3 m
2025
5.0 m
2026
6.8 m

SEC (XBRL)· 30 Sept 2026verified

Inventories
2024
155.3 k
2025
187.7 k
2026
196.1 k

SEC (XBRL)· 30 Sept 2026verified

Current assets
2024
69.7 m
2025
49.7 m
2026
33.7 m

SEC (XBRL)· 30 Sept 2026verified

Property, plant & equipment, net
2024
—
2025
—
2026
—

SEC (XBRL)· 30 Oct 2023verified

Goodwill
2024
—
2025
—
2026
—

SEC (XBRL)· 28 Oct 2022verified

Intangibles (excl. goodwill)
2024
—
2025
—
2026
—

SEC (XBRL)· 28 Oct 2022verified

Total assets
2024
76.0 m
2025
73.4 m
2026
94.2 m

SEC (XBRL)· 30 Sept 2026verified

Accounts payable
2024
1.4 m
2025
2.7 m
2026
5.4 m

SEC (XBRL)· 30 Sept 2026verified

Current liabilities
2024
6.5 m
2025
8.5 m
2026
12.3 m

SEC (XBRL)· 30 Sept 2026verified

Total liabilities
2024
8.5 m
2025
10.0 m
2026
12.8 m

SEC (XBRL)· 30 Sept 2026verified

Equity
2024
72.4 m
2025
66.9 m
2026
81.4 m

SEC (XBRL)· 30 Sept 2026verified

Shares outstanding at year end
2024
8.0 m
2025
10.6 m
2026
—

SEC (XBRL)· 15 Oct 2025verified

Cash flow · USD

Operating cash flow
2024
-6.0 m
2025
-4.7 m
2026
-8.7 m

SEC (XBRL)· 30 Sept 2026verified

Capex
2024
—
2025
—
2026
—

SEC (XBRL)· 28 Oct 2022verified

Free cash flow
2024
—
2025
—
2026
—

SEC (XBRL)· 28 Oct 2022derived

Investing cash flow
2024
410.7 k
2025
4.7 m
2026
-19.0 m

SEC (XBRL)· 30 Sept 2026verified

Financing cash flow
2024
6.2 m
2025
-456.9 k
2026
17.6 m

SEC (XBRL)· 30 Sept 2026verified

Computed indicators

Growth

Revenue growth (YoY)
75.0%
computed by olivLawFY 2026
Revenue CAGR 3Y
20.5%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
16.9%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
33.2%
computed by olivLawFY 2026
EBITDA margin
-34.9%
computed by olivLawFY 2026
EBIT margin
-37.5%
computed by olivLawFY 2026
Net margin
-27.0%
computed by olivLawFY 2026
FCF margin
unavailable
input data missing

Returns

ROE
-5.9%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROA
-5.2%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
input data missing
ROCE
-7.4%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
unavailable
input data missing
Net debt / EBITDA
unavailable
input data missing
Debt / equity
unavailable
input data missing
Interest coverage
-39.6x
computed by olivLawFY 2026

Liquidity

Current ratio
2.7x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
2.7x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.4x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
-8.7 m USD
computed by olivLawFY 2026
Capital expenditure
unavailable
input data missing
Free cash flow
unavailable
input data missing
FCF conversion
unavailable
input data missing
Cash conversion
unavailable
insufficient data

Efficiency

Days sales outstanding
133 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
6 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
137 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
2 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
8.9 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
insufficient data
P/E (TTM)
unavailable
insufficient data
Earnings yield
-4,704.2%
computed by olivLawFY 2026
P/B
0.1x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
0.5x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

Risk

Altman Z
0.01
computed by olivLawbalance sheet at 30 Jun 2026

Valuation

olivLaw classification

Insufficient data
What is missing
  • indicators available: 4 of at least 6
  • score weight coverage: 25.0% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

0.84 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 8.9 m USD

Key indicators

Market capitalisation
8.9 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
unavailable
insufficient data
P/B
0.1x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
unavailable
input data missing
ROE
-5.9%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Net margin
-27.0%
computed by olivLawFY 2026
Revenue growth (YoY)
75.0%
computed by olivLawFY 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 30 Jun 2025
Source: SEC (XBRL)published 30 Sept 2026
verified 928derived 51

Score by group

25% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · the input exists, but its latest figure is far older than the latest reported period: not used
  • Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
  • Peers: P/Eunavailable · the base of the ratio is not positive
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption

no valuation method could be computed

Multiple comparisons use the SIC vertical: Oil & Gas Field Services, NEC (SIC 1389)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 25.0% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality-27.0%0 (vs peers)25%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth20.5%100 (on a fixed band)33%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet-39.6x0 (on a fixed band)25%
Current ratio · Balance sheet2.7x100 (on a fixed band)17%
P/E (TTM) · Valuationunavailableunavailable—
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet40/100 · 2/3 factors with a value
  • Growth· partial100/100 · 1/2 factors with a value
  • Quality· partial0/100 · 1/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partialunavailable · 0/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

RECON TECHNOLOGY, LTD (RCON). Latest full fiscal year: 2026; data up to 2026-06-30.

Figures computed from the financial statements: revenue 16.2 m USD in 2026; YoY growth 75.0%; net margin -27.0%; ROE -5.9%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 25.0% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Revenue CAGR 3Y: 20.5%
  • Current ratio: 2.7x

What contradicts it

  • Net margin: -27.0%
  • Interest coverage: -39.6x

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Oil & Gas Field Services, NEC (SIC 1389) · same industry (4-digit SIC) · compared with 18 companies

Multiples and returns vs the median

P/E
—
vertical median 22.3x
EV/EBITDA
—
vertical median 8.1x
P/S
0.5x
vertical median 0.8x
below median (−30.6%)
P/B
0.1x
vertical median 1.3x
below median (−91.6%)
ROE
-5.9%
vertical median 5.1%
below median (−214.6%)
Net margin
-27.0%
vertical median 2.6%
below median (−1,136.1%)
EBIT margin
-37.5%
vertical median 3.5%
below median (−1,170.0%)
Revenue YoY
75.0%
vertical median -2.2%
above median
Net debt/EBITDA
—
vertical median 1.5x
Dividend yield
—
vertical median 1.0%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
SLBSlb Limited76.1 bn25.112.0%8.4%−1.6%+42% / −1%
HALHalliburton Company27.3 bn13.818.8%8.9%−3.3%+26% / −11%
OIIOceaneering International Inc3.6 bn11.031.1%11.4%+4.6%+49% / +76%
NESRNational Energy Services Reunited Corp.2.2 bn23.29.4%5.8%+1.7%+54% / unavailable
RESRpc, Inc.1.3 bn—-3.0%-1.8%+15.0%+11% / −19%
HOSHornbeck Offshore Services, Inc.904.9 m23.02.5%3.0%−4.9%−8% / −34%
PUMPProPetro Holding Corp.788.8 m—0.2%0.2%−12.1%−33% / −30%
ACDCProFrac Holding Corp.723.0 m—-57.4%-22.8%−11.4%+12% / −51%
WTTRSelect Water Solutions, Inc.681.6 m21.33.5%2.2%−3.1%+67% / +127%
CLBCore Laboratories Inc.442.2 m28.65.7%3.0%+0.5%−36% / −46%
NGSNatural Gas Services Group, Inc.373.4 m18.07.3%10.8%+9.9%−7% / +89%
TUSKMammoth Energy Services, Inc.145.3 m10.35.3%17.1%−2.9%+64% / −32%
NINENine Energy Service, Inc.101.3 m—-214.6%-9.1%+1.4%unavailable / unavailable
KLXEKLX Energy Services Holdings, Inc.21.5 m——-9.7%−10.2%−39% / −89%
RCONRecon Technology, Ltd8.9 m—-5.9%-27.0%+75.0%−100% / −100%
WBIWaterBridge Infrastructure LLC—434.00.5%0.5%+66.2%+14% / unavailable
NOANorth American Construction Group Ltd.——8.0%2.6%+10.2%−20% / −45%
LBRTLiberty Energy Inc.—54.22.0%0.9%−7.2%−26% / −34%
RNGRRanger Energy Services, Inc.—21.65.1%2.6%−4.2%+0% / +39%

1- and 3-year price returns: for RCON from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
3 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
5 years
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
insufficient data
Total return unavailable · Per year unavailable
What moves the 3-year price the most

    AI analysis

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 30 Sept 2026; since then the company filed 6-K (29 Oct 2026).

    In brief

    Recon Technology supplies oilfield equipment, automation systems, tools and field services to petroleum companies, mainly in China. Since 2023 it has also built a chemical recycling business for waste plastic, which its annual report says has entered trial production, a notable change of direction for a small oilfield services provider.

    SWOT

    Strengths

    • The company has an established operating base in China with a long record in oilfield automation and a portfolio of copyrights and patents reported in its filings. 1
    • Long-standing ties with national oil companies and contractor qualifications are active relationships. 12
    • The company has shown adaptability by extending into energy, heating and recycling. 1

    Weaknesses

    • The company depends heavily on one group of products for the Chinese petroleum industry. 1
    • Results are sensitive to customers' investment cycles and price pressure. 12
    • Financing relies on share sales and market instruments, and the company has had to address a minimum bid price listing compliance issue. 1

    Opportunities

    • The chemical recycling project could open a new revenue line if stable production and pyrolysis oil sales are confirmed. 1
    • Extending offshore and international activity could reduce dependence on the Chinese market. 1
    • Demand for digital, efficiency and lower-emission solutions from energy customers could grow. 1

    Threats

    • International and domestic private competition could pressure prices and market share. 1
    • Lower oil prices could reduce customers' investment budgets. 1
    • Changes in environmental and safety regulation could require extra approvals or spending for the recycling project. 1

    Risks

    • Recycling project ramp-uphigh

      The chemical recycling project is only at the start of trial production, and a move to stable commercial output is not assured. 1

    • Concentration of investment in one planthigh

      A large part of the investment sits in a single Shandong facility, and construction or operating problems could affect the whole project. 1

    • Dependence on one segmentmedium

      Revenue comes essentially from technology for the Chinese petroleum industry, and falling demand could significantly reduce sales. 1

    • VIE structuremedium

      Control over the consolidated entities rests on contractual arrangements rather than direct ownership, which could make enforcement difficult. 1

    • Listing compliance and financingmedium

      The company received a Nasdaq notice on its minimum bid price and funds operations through share sales, which could dilute existing shareholders. 1

    Investment thesis

    What would need to be true (bull case)

    • If the chemical recycling project reaches stable production and sells pyrolysis oil, the company could diversify revenue into a new market.
    • Long experience in oilfields and ties with major customers could support demand even in a low-price environment.
    • Demand for automation and lower-emission solutions could grow as the industry changes its strategies.

    What would break the thesis

    • The recycling project is at an early stage and could face yield, feedstock or approval difficulties.
    • Oil price pressure and tighter customer budgets could keep weighing on revenue from the core segment.
    • Equity financing and listing compliance issues could lead to dilution and pressure on shareholders.

    What to watch

    • Stability of trial production and start of commercial output at the Weifang plant2027
    • Actual pyrolysis oil sales and ISCC certificationnext 10-K
    • Trend in revenue from the core oilfield services segmentnext 10-K
    • Effect of the at-the-market share sale program on the capital structure2027

    Products, market & competition

    AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

    Possibly outdated: the newest document it read is from 30 Sept 2026; since then the company filed 6-K (29 Oct 2026).

    The business

    The company, incorporated in the Cayman Islands in 2007 and headquartered in Beijing, provides specialized oilfield equipment, automation systems, tools, chemicals and field services to petroleum companies mainly in China. Its core activity runs through PRC entities consolidated as variable interest entities, namely Beijing BHD and Nanjing Recon, controlled by contractual arrangements. Since 2018 the business has extended into downstream energy, and since 2023 into chemical recycling of waste plastic. 1

    Revenue comes from automation products and projects, heating furnace equipment and energy saving solutions, chemicals for wastewater and oily sludge treatment, downhole and engineering services, and platform services for gas stations. 1

    According to the annual report, the company aims to reduce reliance on a single segment and market by extending its activity offshore and internationally. The report also describes a change in share structure through a share consolidation that reduced shares outstanding. 1

    Segments

    Oilfield equipment and services

    The traditional segment supplies automation, tools and services for oil extraction, the core activity since the company was founded. 1

    Energy and industrial heating

    From 2018 the company extended its automation systems and heating furnaces to downstream energy, electric power, coal chemical and civil markets. 1

    Chemical recycling of waste plastic

    The Weifang, Shandong project is designed to process 40,000 tons of waste plastic per year, with planned pyrolysis oil output. The report states trial production began on September 28, 2026, but the project is at an early stage with technical and feedstock risks. 1

    Market context

    The report describes the 2025-2026 oil market as under pressure from oversupply, weak demand and fading geopolitical premiums, which pushed prices lower. In China, faster substitution by new energy and petrochemical fuels reduced refined product consumption. 1

    Management says demand from oilfield customers for green, digital and intelligent solutions could keep rising, and plastic circular economy creates a new market. The company's earlier results under price pressure, as shown in its fiscal 2015 release, illustrate how sensitive revenue has been. 12

    Trends

    • Oil price pressureheadwind

      Lower oil prices and oversupply could reduce customers' capital budgets for oilfield work, directly affecting demand for services. The fiscal 2015 release shows how cut budgets led to falling revenue. 12

    • Green energy and digitalizationtailwind

      Demand for automation, smart solutions and lower-emission technologies could support the business if customers keep investing in efficiency and recovery. 1

    • Circular plastic economymixed

      Rising ESG focus among chemical companies could create demand for recycled materials, and the recycling project could become a new revenue source if commercialized successfully. 1

    • Share consolidation and financingheadwind

      The 2026 1-for-200 consolidation and at-the-market share sales show reliance on capital markets, which could constrain flexibility if results stay weak. 1

    Competitive position

    The report says international oilfield automation companies have been qualified in China since the 1990s and have far greater financial and marketing resources, and that at least five domestic private competitors also operate in the market, with more entrants possible as oil companies seek lower costs. 1

    In plastic chemical recycling the company faces established petrochemical, environmental and chemical companies with greater technical and financial resources. 1

    • International oilfield automation companies

      Foreign companies qualified in China since the 1990s with greater financial and marketing resources, described in the report without names. 1

    • Domestic private competitors in China

      At least five private Chinese companies competing directly in the field services market. 1

    • Petrochemical and chemical recycling companies

      Established competitors in plastic recycling with greater technical and financial resources, described in the report. 1

    • China Petroleum & Chemical Corporation (Sinopec)

      Large Chinese oil company; through a subsidiary the company obtained a subcontractor qualification in 2015. 2

    News & filings

    In the press

    Sources

    1. [1] Form 20-F, fiscal year ended 2026-06-30 · SEC / Recon Technology, Ltd · 30 Sept 2026
    2. [2] Form 8-K, results release (exhibit 99.1) · SEC / Recon Technology, Ltd · 25 Sept 2015

    Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.