Recon’s annual revenue rises 66% as higher margins narrow its loss

Recon Technology ($RCON) increased annual revenue to RMB109.9 million, approximately $16.2 million, from RMB66.3 million. Gross profit rose to RMB36.5 million and gross margin improved to 33.2% from 23.0%. The company’s net loss narrowed to RMB31.6 million, roughly $4.7 million, compared with RMB43.7 million a year earlier.

Management attributed the stronger performance principally to expansion in overseas oilfield projects. The results show a larger revenue base and improved project economics, but the business remains loss-making despite those gains. The release also described a newly operating plastics-recycling plant with designed processing capacity of 40,000 tonnes annually; that capacity is not achieved throughput, and expected product output is not booked revenue. Future contribution from the recycling business will depend on ramp-up, utilization and commercial sales rather than designed capacity alone.

Sources:

• Company release via PR Newswire