Recon Technology (NASDAQ:RCON) reported a significant improvement in its financial performance for the first six months of fiscal year 2026, ending December 31, 2025.
The Beijing-based oilfield services provider saw its revenue soar to RMB85 million, representing a 102.2% increase compared to the RMB42 million reported in the same period a year ago.
The company’s growth was supported by increased activity in its automation and specialized equipment segments, which cater to China’s major state-owned oil and gas companies.
Gross profit for the period rose to RMB28.5 million, with gross margins improving to 33.5%.
This margin expansion reflects a more favorable product mix and improved operational efficiencies in the delivery of its environmental and chemical applications.
On the bottom line, Recon continued its trend toward profitability by significantly narrowing its net loss.
The company reported a net loss of RMB7.2 million for the half-year period, compared to a net loss of RMB20.7 million in the prior year.
Management attributed the narrower loss to the substantial increase in top-line revenue and disciplined control over administrative expenses, despite the higher costs associated with scaling operations.