Recon Technology, Ltd

Recent Developments

On September 2025, our Board of Directors ratified a decision by Recon-BJ to enter into a definitive agreement on or about October 13, 2025, with Guangxi Jindu Investment Co., Ltd. for the purpose of establishing a special fund consisting of ¥100 million as a loan to support the development and operation of an industrial park project in Guangxi. The loan has a term of 20 years and carries an annual interest rate of 4.5%. The industrial park project is planned to include modern factory buildings totaling approximately 52,204 square meters. Guangxi Jindu Investment Co., Ltd. will be responsible for the Project’s development, construction, marketing and promotion, and day-to-day management of the industrial park.

From July 2025 to December 2025, FGS’s operations were materially and adversely affected by strategic shifts in its major clients’ business decisions and unfavorable changes in domestic industry policies. Consequently, FGS’s revenue and active business activities declined precipitously, reaching zero by the end of December 2025. Following a comprehensive assessment, the Domestic Companies have determined that FGS faces insurmountable challenges in executing a viable business transformation, due to sustained policy headwinds and the irreversible erosion of its core customer base. Accordingly, the Domestic Companies have resolved to initiate the orderly wind-down and dissolution of FGS. This process will involve the formal termination of all remaining employee contracts in a manner compliant with applicable labor laws, followed by the full liquidation of FGS’s assets and the formal deregistration of the company, targeted for completion by the end of fiscal year 2026.

On February 13, 2026, the Company held its annual general meeting of shareholders (the “Annual Meeting”), at which shareholders approved the following special resolutions.

First, to increase the authorized share capital of the Company be increased from $58,000 divided into 500,000,000 Class A Ordinary Shares of a nominal or par value of $0.0001 each, and 80,000,000 Class B Ordinary Shares of a nominal or par value of $0.0001 each, to $320,000 divided into 3,000,000,000 Class A Ordinary Shares of a nominal or par value of $0.0001 each and 200,000,000 Class B Ordinary Shares of a nominal or par value of $0.0001 each, by the creation of 2,500,000,000 Class A Ordinary Shares of a nominal or par value of $0.0001 and 120,000,000 Class B Ordinary Shares of a nominal or par value of $0.0001 each.

Second, to authorize the Company effect one or more reverse share splits of its authorized, issued and outstanding Class A Ordinary Shares by way of consolidation at an exchange ratio of up to one-for-eight thousand (1:8,000) in the aggregate (the “Share Consolidations”), with each Share Consolidation to be effected at such time or times, and at a precise consolidation ratio or ratios, in each case as determined by the Directors in their absolute discretion within two years following the date of the AGM.