Reconova Technologies Co (HKSE:07656) Pretax Margin %: -15.39% (As of Dec. 2025)

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HKSE:07656 Reconova Technologies Co Ltd HKSE:07656
11 GF Score
Price HK$32.32
! 2 Warning Signs
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What is Reconova Technologies Co Pretax Margin %?

Reconova Technologies Co HKSE:07656 +9.56% 11 Pretax Margin % is -15.39% as of Dec. 2025. GuruFocus rates HKSE:07656 with a GF Score™ of 11/100. The stock has 2 warning signs investors should review. Among 2,833 Software companies, Reconova Technologies Co ranks worse than 75.26% on this metric.

Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Reconova Technologies Co's Pre-Tax Income for the six months ended in Dec. 2025 was HK$-75.3 Mil. Reconova Technologies Co's Revenue for the six months ended in Dec. 2025 was HK$489.3 Mil. Therefore, Reconova Technologies Co's pretax margin for the quarter that ended in Dec. 2025 was -15.39%.

The historical rank and industry rank for Reconova Technologies Co's Pretax Margin % or its related term are showing as below:

HKSE:07656' s Pretax Margin % Range Over the Past 10 Years
Min: -15.39   Med: -13.44   Max: 2.1
Current: -15.39


HKSE:07656's Pretax Margin % is ranked worse than
75.26% of 2833 companies
in the Software industry
Industry Median: 3.61 vs HKSE:07656: -15.39

Reconova Technologies Co  (HKSE:07656) Pretax Margin % Explanation

The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.

The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.

It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.

The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.


Reconova Technologies Co Pretax Margin % Related Terms


Reconova Technologies Co Pretax Margin % Historical Data

* Premium members only.

The historical data trend for Reconova Technologies Co's Pretax Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Reconova Technologies Co Pretax Margin % Chart

Reconova Technologies Co Annual Data
Trend Dec23 Dec24 Dec25
Pretax Margin %
-13.44 2.10 -15.39

Reconova Technologies Co Semi-Annual Data
Dec23 Dec24 Dec25
Pretax Margin % -13.44 2.10 -15.39

HKSE:07656 vs IBM, ACN, FISV: Pretax Margin % Comparison

For the Information Technology Services subindustry, Reconova Technologies Co's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Reconova Technologies Co Pretax Margin % vs Software Industry

For the Software industry and Technology sector, Reconova Technologies Co's Pretax Margin % distribution charts can be found below:

* The bar in red indicates where Reconova Technologies Co's Pretax Margin % falls into.


HKSE:07656
11GF Score
Reconova Technologies Co Ltd HKSE:07656
Pretax Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Reconova Technologies Co Pretax Margin % Calculation

Pretax margin - also known as pretax profit margin is the ratio of Pretax Income divided by net sales or Revenue, usually presented in percent.

Reconova Technologies Co's Pretax Margin for the fiscal year that ended in Dec. 2025 is calculated as

Pretax Margin=Pre-Tax Income (A: Dec. 2025 )/Revenue (A: Dec. 2025 )
=-75.286/489.344
=-15.39 %

Reconova Technologies Co's Pretax Margin for the quarter that ended in Dec. 2025 is calculated as

Pretax Margin=Pre-Tax Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=-75.286/489.344
=-15.39 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Pretax Margin % →
What does a Pretax Margin % of -15.39% mean?
Reconova Technologies Co (HKSE:07656) has a Pretax Margin % of -15.39% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Reconova Technologies Co and its competitors. According to the industry distribution chart, Reconova Technologies Co ranks #2132 out of 2833 companies in the Software industry, placing it in the top 75.3%.
Is Reconova Technologies Co's Pretax Margin % too high?
Reconova Technologies Co's current Pretax Margin % is -15.39%. Based on the distribution chart, Reconova Technologies Co ranks #2132 out of 2833 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Reconova Technologies Co has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Reconova Technologies Co's Pretax Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Reconova Technologies Co ranks #2132 out of 2833 companies for Pretax Margin %. This places Reconova Technologies Co in the lower half of its industry. The industry median Pretax Margin % is 3.61. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.61, based on 2,833 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Reconova Technologies Co and its competitors. For the Software industry, the median Pretax Margin % is 3.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reconova Technologies Co's current Pretax Margin % is -15.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reconova Technologies Co stock overvalued right now?
Reconova Technologies Co (HKSE:07656) has a current Pretax Margin % of -15.39%. The current Pretax Margin % is -15.39%. Reconova Technologies Co's overall GF Score™ is 11/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Reconova Technologies Co (HKSE:07656), the current Pretax Margin % is -15.39% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Reconova Technologies Co Business Description

Address No. 3185 Sha He West Road, Xi Li Road, Floor 4-5, Block F, Nanshan Zhi Gu Industry Park, Nanshan District, Guangdong Province, Shenzhen, CHN
Reconova Technologies Co Ltd is an AI company that provides visual AI technologies and products for enterprise clients. It is engaged in the research and development, design and sale of Visual Intelligents, commercial robots and intelligent passage devices. The company's product offerings include visual perception, visual cognition, and visual reasoning solutions applied across sectors including civil aviation, commercial spaces, and driving safety. The majority of the company's revenue is derived from the sale of Intelligent Civil Aviation, which covers the entire passenger journey including check-in, security screening, boarding, and customer service. Geographically, the maximum revenue is generated from the Chinese Mainland.
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Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$32.32
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