MeritValue

Recon Technology, Ltd

RCONdata completeness 75%15 fiscal years on file
The thesis, from the filings

Recon Technology, Ltd earns about 23% on invested capital, but has diluted owners by 1097% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$7.42M1$12.5M2$9.26M3$9.47M4$9.25M5
Net income−$3.54M6$14.3M7−$8.16M8−$6.86M9−$5.95M10
Operating cash flow−$5.27M11−$3.92M12−$7.13M13−$6.02M14−$4.71M15
Capital expenditure—————
Free cash flow (derived)—————
Total debt—————
Cash & equivalents$53.3M16$47.3M17$14.4M18$15.1M19$13.8M20
Diluted shares760,1161.7M2.2M5.0M9.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$71.74
your share of equity
Profit it earned you last year
−$6.54
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $71.74 of net worth that earned you −$6.54 last year.

iii. Is this a good business?
Moat signal · return on invested capital
23% avg · 5y
FY21 —FY22 92%FY23 -13%FY24 -10%FY25 —

It earned an average 23% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+1097% shares · 5y

Share count is up 1097% over 5 years — owners have been diluted. Worth asking what they got for it.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-06-30 · accession 0001104659-21-139057 (Revenues)
  2. 20-F · period ending 2022-06-30 · accession 0001410578-22-002904 (Revenues)
  3. 20-F/A · period ending 2023-06-30 · accession 0001410578-24-000966 (Revenues)
  4. 20-F · period ending 2024-06-30 · accession 0001410578-24-001721 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 20-F · period ending 2025-06-30 · accession 0001104659-25-099502 (RevenueFromContractWithCustomerExcludingAssessedTax)
  6. 20-F · period ending 2021-06-30 · accession 0001104659-21-139057 (NetIncomeLoss)
  7. 20-F · period ending 2022-06-30 · accession 0001410578-22-002904 (NetIncomeLoss)
  8. 20-F/A · period ending 2023-06-30 · accession 0001410578-24-000966 (NetIncomeLoss)
  9. 20-F · period ending 2024-06-30 · accession 0001410578-24-001721 (NetIncomeLoss)
  10. 20-F · period ending 2025-06-30 · accession 0001104659-25-099502 (NetIncomeLoss)
  11. 20-F · period ending 2021-06-30 · accession 0001104659-21-139057 (NetCashProvidedByUsedInOperatingActivities)
  12. 20-F · period ending 2022-06-30 · accession 0001410578-22-002904 (NetCashProvidedByUsedInOperatingActivities)
  13. 20-F/A · period ending 2023-06-30 · accession 0001410578-24-000966 (NetCashProvidedByUsedInOperatingActivities)
  14. 20-F · period ending 2024-06-30 · accession 0001410578-24-001721 (NetCashProvidedByUsedInOperatingActivities)
  15. 20-F · period ending 2025-06-30 · accession 0001104659-25-099502 (NetCashProvidedByUsedInOperatingActivities)
  16. 20-F · period ending 2021-06-30 · accession 0001104659-21-139057 (CashAndCashEquivalentsAtCarryingValue)
  17. 20-F · period ending 2022-06-30 · accession 0001410578-22-002904 (CashAndCashEquivalentsAtCarryingValue)
  18. 20-F/A · period ending 2023-06-30 · accession 0001410578-24-000966 (CashAndCashEquivalentsAtCarryingValue)
  19. 20-F · period ending 2024-06-30 · accession 0001410578-24-001721 (CashAndCashEquivalentsAtCarryingValue)
  20. 20-F · period ending 2025-06-30 · accession 0001104659-25-099502 (CashAndCashEquivalentsAtCarryingValue)