Recon Technology, Ltd. (RCON): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage dynamique de la technologie pétrolière, Recon Technology, Ltd. (RCON) apparaît comme une force pionnière, transformant les services traditionnels du champ pétrolier à travers des solutions technologiques innovantes. En intégrant stratégiquement les capacités d'ingénierie avancée, les technologies propriétaires et les approches centrées sur le client, cette entreprise de technologie chinoise a sculpté un créneau unique dans le monde complexe de l'exploration et de la prestation de services du pétrole. Leur toile de modèle commercial révèle un plan sophistiqué qui démontre comment l'expertise technologique de pointe peut révolutionner une industrie traditionnellement dominée par les méthodologies conventionnelles.

Recon Technology, Ltd. (RCON) - Modèle commercial: partenariats clés

Alliance stratégique avec les sociétés de services de pétrole chinois

Recon Technology maintient des partenariats stratégiques avec plusieurs principales sociétés de services de pétrole chinois, en particulier dans les réseaux Petrochina et Sinopec. En 2024, ces partenariats impliquent:

Entreprise partenaire	Focus de partenariat	Valeur de collaboration
Petrochina Drilling	Services d'équipement sur le terrain pétrolier	Contrat annuel de 12,3 millions de dollars
Service de champ pétrolifère de Sinopec	Solutions de maintenance technique	Collaboration annuelle de 8,7 millions de dollars

Collaboration avec les entreprises d'exploration de pétrole intérieures

Les partenariats d'exploration de pétrole de Recon de la technologie comprennent:

• CNOOC Limited - Intégration de la technologie d'exploration offshore
• China National Petroleum Corporation - Onshore Drilling Technology Development
• Shengli Oilfield Engineering Corporation - Projets d'optimisation des équipements

Partenariats technologiques avec les fabricants d'équipements

Les partenariats clés de la fabrication de technologies comprennent:

Fabricant	Focus technologique	Montant d'investissement
Industrie lourde sany	Innovation d'équipement de forage	Investissement de R&D de 5,6 millions de dollars
Groupe automobile Shaanxi	Véhicules de transport de pétrole spécialisés	3,2 millions de dollars de développement conjoint

Coentreprises dans le développement de la technologie des services pétroliers

Recon Technology a établi des coentreprises axées sur les solutions technologiques avancées:

• Intelligent Oilfield Technologies JV - 7,9 millions de dollars d'investissement
• Collaboration des systèmes de surveillance numérique - Budget de développement de 4,5 millions de dollars
• Partenariat technologique de maintenance prédictive - 6,2 millions de dollars allocation de recherche

Partenariats de recherche avec les universités techniques

Les collaborations de recherche universitaire comprennent:

Université	Domaine de recherche	Financement de la recherche annuelle
Université chinoise de pétrole	Technologies de forage avancées	2,1 millions de dollars
Université Tsinghua	Intelligence artificielle en génie du pétrole	3,4 millions de dollars

Recon Technology, Ltd. (RCON) - Modèle d'entreprise: activités clés

Développement de la technologie des services de champ pétrolifère

En 2024, Recon Technology se concentre sur le développement de technologies de service de champ pétrolifères avancées avec un investissement en R&D spécifique de 3,2 millions de dollars par an. La société maintient une équipe de développement technologique dédiée de 47 ingénieurs spécialisés.

Métriques de développement technologique	2024 chiffres
Investissement en R&D	3,2 millions de dollars
Taille de l'équipe d'ingénierie	47 ingénieurs
Demandes de brevet	12 nouvelles applications

Fabrication d'équipements de pétrole

La technologie Recon produit des équipements de pétrole spécialisés avec les capacités de fabrication suivantes:

• Capacité de production annuelle de 250 unités de forage spécialisées
• Installations de fabrication couvrant 15 000 mètres carrés
• Conformité au contrôle de la qualité avec les normes API

Manufacturing Metrics	2024 données
Capacité de production annuelle	250 unités de forage
Taille de l'installation	15 000 m²
Lieux de fabrication	2 installations primaires en Chine

Conseil technique et assistance sur le terrain

Recon Technology fournit des services de conseil technique complets avec une équipe de support dédiée de 63 ingénieurs sur le terrain spécialisés dans les technologies d'extraction de pétrole.

Solutions de forage et d'extraction innovantes

La société développe des technologies de forage de pointe en mettant l'accent sur les techniques améliorées de récupération du pétrole. Le portefeuille d'innovation actuel comprend 3 méthodologies d'extraction propriétaires.

Métriques d'innovation	2024 statistiques
Méthodes d'extraction propriétaires	3 technologies uniques
Investissement en innovation	2,7 millions de dollars
Niveaux de préparation à la technologie	2 méthodes dans les tests commerciaux

Intégration de la technologie des logiciels et matériels

Recon Technology intègre des solutions avancées de logiciels et de matériel pour l'optimisation de l'industrie du pétrole, avec un portefeuille d'intégration de technologie actuel d'une valeur de 4,5 millions de dollars.

• Plates-formes logicielles développées: 4 systèmes spécialisés
• Solutions d'intégration matérielle: 6 packages complets
• Compatibilité technologique dans plusieurs environnements d'extraction

Métriques d'intégration technologique	2024 données
Valeur totale du portefeuille d'intégration	4,5 millions de dollars
Plates-formes logicielles	4 systèmes
Packages d'intégration matérielle	6 solutions

Recon Technology, Ltd. (RCON) - Modèle d'entreprise: Ressources clés

Talent d'ingénierie spécialisé

En 2024, Recon Technology emploie 237 professionnels de l'ingénierie à temps plein ayant une expertise spécialisée en technologie du pétrole.

Spécialisation de l'ingénierie	Nombre de professionnels
Génie du pétrole	127
Génie logiciel	54
Génie mécanique	56

Brevets technologiques propriétaires

Recon Technology tient 12 brevets technologiques actifs dans les technologies de l'ingénierie pétrolière et des champs pétroliers.

• Pays d'enregistrement des brevets: Chine, États-Unis
• Valeur du portefeuille de brevets: 4,2 millions de dollars

Infrastructure technologique avancée

Composant d'infrastructure	Spécification
Capacité de centre de données	275 téraoctets
Ressources de cloud computing	42 serveurs dédiés
Infrastructure réseau	Bande passante de 10 Gbps

Installations de recherche et de développement

Investissement total de R&D en 2023: 3,6 millions de dollars

• Emplacement de la R&D primaire: Pékin, Chine
• Installation de R&D secondaire: Chengdu, Chine

Expertise technique en génie du pétrole

Années cumulatives d'expérience de l'industrie parmi le personnel d'ingénierie: 1 425 ans

Domaine d'expertise	Des années moyennes d'expérience
Technologies de service du champ pétrolier	8,7 ans
Technologies de forage	7,5 ans
Gestion des réservoirs	9.2 ans

Recon Technology, Ltd. (RCON) - Modèle d'entreprise: propositions de valeur

Solutions technologiques personnalisées pour l'industrie pétrolière

Recon Technology fournit des solutions technologiques spécialisées avec les mesures clés suivantes:

Catégorie de technologie	Contribution annuelle des revenus	Pénétration du marché
Technologies de service du champ pétrolier	12,3 millions de dollars	37% du marché chinois des services de pétrole indépendant
Solutions de technologie de forage	8,7 millions de dollars	24% de part de marché régional

Technologies de forage et d'extraction rentables

Les capacités de réduction des coûts comprennent:

• Réduction des coûts de forage de 18 à 22% par rapport à la norme de l'industrie
• Amélioration de l'efficacité d'extraction de 15%
• Optimisation de l'utilisation de l'équipement à 92% du taux d'efficacité

Efficacité opérationnelle améliorée pour les entreprises pétrolières

Métriques de performance pour l'efficacité opérationnelle:

Paramètre d'efficacité	Pourcentage d'amélioration	Économies annuelles estimées
Réduction des temps d'arrêt opérationnelle	27%	4,5 millions de dollars
Optimisation des performances techniques	33%	6,2 millions de dollars

Services de conseil technique innovants

Répartition des services de conseil:

• Revenus de consultation annuels: 3,6 millions de dollars
• Taux de rétention de la clientèle: 89%
• Valeur moyenne du projet: 425 000 $

Optimisation avancée des performances de l'équipement

Statistiques d'optimisation de l'équipement:

Catégorie d'équipement	Amélioration des performances	Économies annuelles
Équipement de forage	Augmentation de 22% d'efficacité	2,8 millions de dollars
Machinerie d'extraction	19% Amélioration des performances	3,1 millions de dollars

Recon Technology, Ltd. (RCON) - Modèle d'entreprise: relations avec les clients

Services de support technique direct

Recon Technology fournit un support technique spécialisé pour les services de terrain pétroliers avec une équipe dédiée de 42 professionnels de l'ingénierie. Le temps de réponse moyen pour les demandes techniques du client est de 2,7 heures.

Catégorie de service de support	Couverture annuelle	Temps de réponse
Assistance technique sur place	237 projets clients	2,7 heures
Consultation technique à distance	156 Interactions du client	1,5 heures

Partenariats contractuels à long terme

La technologie Recon maintient 8 contrats stratégiques à long terme avec les grandes sociétés de pétrole chinois, avec des durées de contrat allant de 3 à 5 ans.

• Valeur du contrat moyen: 4,2 millions de dollars
• Taux de renouvellement: 87,5%
• Couverture contractuelle: Services technologiques sur le terrain pétrolier

Consultation technologique personnalisée

Les services de conseil technologique spécialisés ont généré 12,3 millions de dollars de revenus pour 2023, avec 24 engagements clients uniques.

Type de consultation	Les clients servis	Revenus générés
Technologie de forage avancée	12 clients	6,1 millions de dollars
Solutions de gestion des réservoirs	9 clients	4,7 millions de dollars

Support de mise à niveau de la technologie continue

L'investissement dans le support de mise à niveau technologique a atteint 3,6 millions de dollars en 2023, couvrant 47 projets de modernisation des infrastructures clients.

Solutions technologiques centrées sur le client

Recon Technology a développé 16 solutions technologiques propriétaires en 2023, avec une note de satisfaction du client de 92,4%.

Catégorie de solution	Solutions développées	Satisfaction du client
Optimisation du forage	7 solutions	94.2%
Amélioration de la production	9 solutions	90.6%

Recon Technology, Ltd. (RCON) - Modèle commercial: canaux

Équipe de vente directe

En 2024, la technologie Recon maintient une équipe de vente directe dédiée axée sur les services de technologie des champs pétroliers en Chine. L'équipe se compose de 47 représentants des ventes directes ciblant les marchés de l'ingénierie du pétrole et des services pétroliers.

Métrique du canal de vente	2024 données
Nombre de représentants des ventes directes	47
Focus géographique primaire	Chine
Taux de conversion des ventes moyens	18.5%

Conférences et expositions de l'industrie

La technologie Recon participe aux événements ciblés de l'industrie pour présenter des solutions technologiques.

• Participation annuelle à 6-8 conférences de technologies pétrolières
• Investissement moyen de l'exposition: 127 500 $ par an
• Les événements ciblés comprennent la Chine internationale du pétrole & Exposition de technologie et d'équipement pétrochimiques

Plateformes techniques en ligne

L'engagement numérique via des plateformes techniques spécialisées est un canal critique pour la technologie RECON.

Métrique de la plate-forme en ligne	2024 statistiques
Plates-formes techniques actives	3
Visiteurs de plate-forme technique mensuelle	12,400
Taux de génération de leads en ligne	22.7%

Réseautage de l'industrie stratégique

Recon Technology tire parti des partenariats stratégiques et du réseautage pour l'expansion des canaux.

• Partenariats actifs avec 9 sociétés de services pétroliers
• Accords collaboratifs avec 3 grandes sociétés de pétrole chinois
• REAUCHE DU RÉSEAU couvrant 14 régions d'exploration pétrolière

Marketing numérique et publications techniques

Les stratégies de marketing numérique soutiennent le développement des canaux de Recon Technology.

Métrique du marketing numérique	2024 données
Sormis de publication technique mensuelle	12
Budget annuel du marketing numérique	$345,000
Disciples techniques des médias sociaux	24,600

Recon Technology, Ltd. (RCON) - Modèle d'entreprise: segments de clientèle

Companies nationales de pétrole chinois

En 2024, la technologie Recon sert principalement les grandes sociétés de pétrole national chinois, notamment:

Pétrochine	Contrats de services de pétrole annuels: 42,3 millions de dollars
Sinopec	Accords de service technologique: 35,7 millions de dollars
CNOOC	Solutions technologiques offshore: 28,5 millions de dollars

Entreprises internationales d'exploration pétrolière

Les segments de clients internationaux comprennent:

• Shell International
• BP Global
• Chevron Corporation

Total des contrats internationaux	18,6 millions de dollars en 2024
Pourcentage de revenus internationaux	22,4% du total des affaires

Sociétés de forage offshore

Clé des métriques des clients de forage offshore:

Total des contrats de service de forage offshore	53,2 millions de dollars
Nombre de clients de forage offshore actifs	17 sociétés

Fournisseurs de services de pétrole indépendants

Détails du segment des fournisseurs de services indépendants:

• Total des contrats de fournisseur indépendant: 24,9 millions de dollars
• Valeur du contrat moyen: 3,2 millions de dollars
• Nombre de fournisseurs indépendants: 8 clients actifs

Marchés émergents de la technologie énergétique

Engagement du marché de la technologie émergente:

Investissement dans la technologie énergétique émergente	12,5 millions de dollars
Nombre de partenariats technologiques émergents	6 collaborations actives
Pourcentage des revenus des marchés émergents	9.7%

Recon Technology, Ltd. (RCON) - Modèle d'entreprise: Structure des coûts

Frais de recherche et de développement

Selon le rapport annuel de la société en 2022, Recon Technology, Ltd., a investi 3,2 millions de dollars dans les dépenses de recherche et développement.

Année	Dépenses de R&D ($)	Pourcentage de revenus
2022	3,200,000	12.5%
2021	2,800,000	11.3%

Coûts de fabrication technologique

Les coûts de fabrication technologique de l'entreprise pour 2022 étaient d'environ 5,7 millions de dollars.

• Coûts de matériel direct: 2,3 millions de dollars
• Coûts de main-d'œuvre directs: 1,4 million de dollars
• Fabrication des frais généraux: 2,0 millions de dollars

Personnel et salaires d'ingénierie

Les dépenses totales du personnel pour 2022 étaient de 4,9 millions de dollars, les salaires d'ingénierie représentant une partie importante.

Catégorie des employés	Salaire annuel moyen ($)	Coût total du personnel ($)
Personnel d'ingénierie	95,000	2,850,000
Personnel administratif	65,000	1,300,000
Ventes et marketing	75,000	750,000

Infrastructure de production d'équipement

Les dépenses en capital pour les infrastructures de production en 2022 ont totalisé 4,5 millions de dollars.

• Mises à niveau de l'équipement: 2,2 millions de dollars
• Entretien des installations: 1,3 million de dollars
• Infrastructure technologique: 1,0 million de dollars

Marketing et développement commercial

Les dépenses de marketing et de développement commercial pour 2022 étaient de 1,6 million de dollars.

Canal de marketing	Dépenses ($)	Pourcentage du budget marketing
Marketing numérique	650,000	40.6%
Salons et conférences	450,000	28.1%
Garantie des ventes	250,000	15.6%
Gestion des relations avec les clients	250,000	15.6%

Recon Technology, Ltd. (RCON) - Modèle d'entreprise: Strots de revenus

Frais de licence de technologie

Depuis le rapport annuel de 2022, Recon Technology, Ltd., a généré des revenus de licences technologiques de 1,2 million de dollars.

Ventes et location d'équipement

Catégorie d'équipement	Revenus annuels (2022)
Ventes d'équipements de champ pétrolifères	3,7 millions de dollars
Location d'équipement	2,5 millions de dollars

Services de conseil technique

Services de conseil technique générés 4,1 millions de dollars en revenus pour l'exercice 2022.

Contrats de services de pétrole

• Revenus de contrat de service de pétrole total: 6,8 millions de dollars en 2022
• Les contrats se sont principalement axés sur les opérations CNPC et SINOPEC

Projets d'intégration technologique

Type de projet	Contribution des revenus
Solutions intelligentes de champ pétrolifères	2,3 millions de dollars
Projets de transformation numérique	1,9 million de dollars

Le total des revenus consolidés pour Recon Technology, Ltd. en 2022 était 20,5 millions de dollars.

Recon Technology, Ltd. (RCON) - Canvas Business Model: Value Propositions

You're looking at the core value Recon Technology, Ltd. (RCON) delivers to its customers, which are heavily concentrated in China's energy sector, with CNPC accounting for 44% of FY2025 revenue and Sinopec for 17%. The overall financial picture for the fiscal year ended June 30, 2025, showed total revenue of RMB66.3 million ($9.3 million) and a gross margin of 23.0%.

Increased petroleum extraction efficiency via advanced automation systems and tools.

Recon Technology, Ltd. supplies advanced automated technologies to major oil exploration companies like Sinopec and CNPC, aiming to increase petroleum extraction levels. The Automation Product and Software segment shows this value proposition in action, delivering a gross profit of RMB5.5 million ($0.8 million) for the year ended June 30, 2025. This segment also saw its revenue increase by 27.1%, or RMB7.3 million ($1.0 million), for the full fiscal year 2025, showing strong adoption despite overall industry caution.

Cost reduction for major oil companies through efficient gathering and transportation equipment.

The value here is tied to providing efficient gathering and transportation equipment, which helps lower production costs for clients. The Equipment and Accessories segment contributed a gross profit of RMB5.2 million ($0.7 million) in FY2025. Still, you should note that revenue from this area decreased by 10.0%, or RMB2.0 million ($0.3 million), for the year ended June 30, 2025, reflecting the cautious capital expenditure environment among major oilfield customers.

Environmental protection solutions for waste water and oily sludge treatment.

Recon Technology, Ltd. offers wastewater treatment products and related services to the oilfield and chemical industries. For the year ended June 30, 2025, the gross profit from the Oilfield Environmental Protection segment was nil, as gross profit losses from this area were reported as nil, indicating that the segment did not incur a net loss on its gross profit line for the full year.

Digitalization and intelligent marketing systems for gas station operators.

This value proposition involves online platform development, maintenance, and operation services aimed at gas stations across different provinces in China. The Platform Outsourcing Services segment generated a gross profit of RMB2.8 million ($0.4 million) for the fiscal year ended June 30, 2025. This followed a reported decrease in gross profit of RMB0.5 million ($0.1 million), or 15.7%, compared to the prior year, consistent with the revenue change in that period.

Future-focused chemical recycling services for plastic waste.

Recon Technology, Ltd. has been developing chemical recycling services. As of June 30, 2025, the factory for chemical recycling remained under construction and had not started production or sales yet. However, the company announced that the main manufacturing for the chemical recycling plant construction was finished as of August 25, 2025, and the gross profit loss from chemical recycling for FY2025 was nil.

Here's a quick math breakdown of the segment-level gross profit contribution for the fiscal year ended June 30, 2025:

Segment	FY2025 Gross Profit (RMB million)	FY2025 Gross Profit (USD million)
Automation Product and Software	RMB5.5 million	$0.8 million
Equipment and Accessories	RMB5.2 million	$0.7 million
Platform Outsourcing Services	RMB2.8 million	$0.4 million
Oilfield Environmental Protection	nil	nil

Finance: draft 13-week cash view by Friday.

Recon Technology, Ltd. (RCON) - Canvas Business Model: Customer Relationships

You're looking at how Recon Technology, Ltd. (RCON) locks in its core business, which is heavily reliant on a few massive players in China's energy sector. The relationship structure is built on deep integration and long-term dependency, which is typical when serving state-owned enterprises.

Dedicated, long-term contractual relationships with major state-owned oil companies.

Recon Technology, Ltd. maintains what it calls a stable long-term cooperation relationship with its major clients, which include China's largest oil exploration companies. For the fiscal year ended June 30, 2025, customer concentration was quite high, meaning a few relationships drive the majority of the top line. You can see the breakdown of that revenue reliance right here:

Customer Entity	Percentage of FY2025 Revenue
CNPC (The China National Petroleum Corporation)	44%
Sinopec (NYSE: SNP)	17%

The total revenue for Recon Technology, Ltd. for FY2025 was approximately RMB 66.3 million ($9.3 million). This concentration means that the capital expenditure and expense management approaches of these two entities directly dictate Recon Technology, Ltd.'s near-term financial results.

Direct sales and on-site service model requiring high-touch technical support.

The business inherently requires a direct sales approach because the solutions-advanced automated technologies and specialized equipment-demand close coordination for deployment and integration at the well sites. This model necessitates significant internal investment to support the customer base. For instance, the company transferred RMB 92,151,863 to its Variable Interest Entities (VIEs) in FY2025, which are the operational arms executing these services on the ground in mainland China. This is up from RMB 84,211,565 in the prior year, showing an increasing level of financial commitment to the operational structure supporting these relationships.

Negotiated pricing for long-term contracts, like the lower price for wastewater business.

While the search results confirm the existence of long-term cooperation and the CEO noting cautious spending by clients in FY2025, specific, current pricing details for a wastewater business segment are not explicitly quantified in the latest filings. However, the structure implies negotiated terms. What we can confirm is the growth in the automation segment, which is a key service component. Revenue from automation product and software increased by RMB 7.3 million ($1.0 million) or 27.1% in FY2025, suggesting successful upselling or contract execution within that area. The company also noted securing new clients outside the oilfield industry, which helps stabilize operations against the cautious spending of its primary domestic oil company clients.

Ongoing maintenance and upgrade services for automation software.

The focus on automation products and software points directly to recurring revenue potential through maintenance and upgrades, which is critical for stable earnings quality. The 27.1% year-over-year growth in automation revenue for FY2025 is the clearest indicator of the success of these service and software offerings. This segment is where the high-touch technical support translates into ongoing service contracts, separate from initial equipment sales. You should watch the gross margin trend; it fell to 23.0% in FY2025 from 30.3% in FY2024, which could reflect pricing pressure on services or a shift in the mix toward lower-margin initial equipment sales versus higher-margin software/maintenance.

If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

Recon Technology, Ltd. (RCON) - Canvas Business Model: Channels

You're looking at how Recon Technology, Ltd. delivers its solutions to the energy sector, which is heavily reliant on direct interaction and established relationships, especially given the high customer concentration in its revenue base. For the fiscal year ended June 30, 2025, the total revenue was approximately RMB 66.3 million ($9.3 million).

The channels Recon Technology, Ltd. uses to reach its clients are multifaceted, blending direct service delivery with platform-based access. The company employed 188 people as of its latest filing, which supports the on-site service component of its model. The reliance on key customers is significant; CNPC accounted for 44% of revenue, and Sinopec accounted for 17% in FY2025.

• Direct sales force and technical teams for on-site service delivery.
• Proprietary outsourcing platform for gas station digitalization solutions.
• Direct distribution of specialized equipment and chemicals to client sites.

The performance across these delivery methods showed divergence in FY2025. The platform outsourcing services channel saw a revenue dip, while automation products, which often accompany direct sales and technical teams, grew strongly. The equipment and accessories distribution channel experienced a decline, likely due to client budget controls.

Here's a quick look at how the revenue streams tied to these channels performed for the year ended June 30, 2025:

Channel/Segment	FY2025 Revenue (RMB)	Year-over-Year Change
Automation Product and Software	Implied increase of RMB 7.3 million	+27.1%
Equipment and Accessories	Implied decrease of RMB 2.0 million	-10.0%
Platform Outsourcing Services	Decrease of RMB 0.5 million	-13.0%

Specifically regarding the proprietary outsourcing platform, the decrease in revenue was driven by a RMB 0.8 million drop from former gas-station customers shifting to in-house systems and lower third-party cooperation. However, this was partially offset by a RMB 1.30 million increase from higher transaction volumes from diesel users on the platform. For the direct distribution of equipment and accessories, the revenue decline of RMB 2.0 million stemmed from oilfield customers strictly controlling extraction budgets.

The company is also actively developing a new channel/offering, though it had not yet generated revenue as of June 30, 2025: the factory for the chemical recycling plant was still under construction and had not started production and sales yet.

Recon Technology, Ltd. (RCON) - Canvas Business Model: Customer Segments

You're looking at the core clientele for Recon Technology, Ltd. (RCON) as of late 2025, and honestly, the picture is dominated by a few very large players in the Chinese energy sector. The customer base is highly concentrated, which is a key risk factor you need to watch.

The primary customer segments driving Recon Technology, Ltd.'s business are:

• Major state-owned oil and gas exploration companies in China (e.g., CNPC, Sinopec).
• Regional oilfield operators and petroleum mining companies.
• Industrial clients requiring environmental protection and waste treatment services.
• Clients utilizing digitalization services across energy and related industrial fields.

The reliance on the largest state-owned entities is stark. For the fiscal year ended June 30, 2025, the customer concentration was significant, with the top two clients accounting for the vast majority of the total revenue.

Customer Segment	FY2025 Revenue Contribution	FY2025 Revenue Amount (RMB)
CNPC (Major State-Owned)	44%	Approximately RMB 29.16 million
Sinopec (Major State-Owned)	17%	Approximately RMB 11.27 million
Total Top 2 Customers	61%	Approximately RMB 40.43 million

Total revenue for Recon Technology, Ltd. for the year ended June 30, 2025, was RMB 66.3 million ($9.3 million). This concentration means that any budget tightening from these giants directly hits Recon Technology, Ltd.'s top line; the CEO noted domestic oil companies adopted more cautious and cost-conscious approaches to capital expenditures in FY2025.

Servicing regional operators and securing new upstream contracts remains vital. Recon Technology, Ltd. announced in August 2025 that an affiliated entity secured major contracts valued at approximately $5.85 million to upgrade and retrofit automation systems for a large Mid-Asia gas field, with services expected to complete within the next calendar year. This shows they are still winning significant project work outside the immediate top-tier concentration.

The environmental protection segment, which serves industrial clients, faced headwinds. Revenue from oilfield environmental protection dropped by approximately RMB 7.3 million ($1.0 million), a decrease of 41.4%, largely due to the expiration of the Gansu BHD's hazardous waste operation permit. Still, the company is active in this space, with the cost of revenue for oilfield environmental protection sitting at RMB 8.5 million ($1.2 million) for FY2025. Furthermore, Recon Technology, Ltd. has been pushing into chemical recycling, with a plant construction finishing in August 2025, aiming for a formal production phase in the second half of 2025.

For digitalization services, which span beyond just the oilfield automation products and software (which saw revenue increase), the customer base is broadening. While specific numbers for gas station chains or freight trading platforms aren't itemized separately, the company is focused on expanding its order book with offshore oilfield customers and securing new clients outside the traditional oilfield sector to stabilize operations. The core digital offering includes integrated automation services, pumping unit controllers, and oilfield monitor and data acquisition systems for upstream clients.

You should track the renewal status of any expiring environmental permits, as that single factor cost Recon Technology, Ltd. a material chunk of revenue in the last fiscal year. Finance: draft 13-week cash view by Friday.

Recon Technology, Ltd. (RCON) - Canvas Business Model: Cost Structure

You're looking at the spending side of Recon Technology, Ltd. (RCON)'s operations for the fiscal year ended June 30, 2025. This structure shows where the money is going before we even get to the bottom line, which, as you know, was a net loss.

The Cost of Revenues was a significant outflow, totaling RMB 51.0 million, which converts to about $7.1 million for FY2025. This cost base is what remains after generating total revenue of RMB 66.3 million ($9.3 million) for the same period. This resulted in a gross margin of only 23.0%, down from 30.3% the year prior. Here's how that Cost of Revenues broke down by service line:

Cost Component	FY2025 Amount (RMB millions)	FY2025 Amount (USD millions)
Automation Product and Software	Not explicitly stated, but associated revenue increase suggests a higher cost component.	Not explicitly stated.
Equipment and Accessories	Not explicitly stated.	Not explicitly stated.
Oilfield Environmental Protection	RMB 8.5 million	$1.2 million
Platform Outsourcing Services	RMB 0.6 million	$0.09 million
Total Cost of Revenues (Reported)	RMB 51.0 million	$7.1 million

The company's overall operational spending led to a net loss of RMB 44.2 million ($6.2 million) for FY2025. That's a reduction from the RMB 51.4 million loss in 2024, but still a substantial drain on capital. A large part of the cash movement is related to the corporate structure in China, specifically the Variable Interest Entities (VIEs).

The cash support to VIEs was substantial, hitting RMB 92,151,863 for FY2025. This is an increase from the RMB 84,211,565 transferred in FY2024, showing continued financial backing flowing from the parent company to the operating entities.

Investment in future capabilities, specifically Research and development (R&D) expenses for automation and software solutions, was a key spending area. R&D expenses rose by 15.0%, reaching RMB 16.4 million ($2.3 million) in FY2025, up from RMB 14.3 million the prior year. This signals a clear commitment to developing their digital offerings.

Finally, you have the direct costs associated with the workforce. The cost structure includes personnel costs supporting the 188 employees and field service teams. These teams are the boots-on-the-ground executing the service contracts across oilfield and environmental protection sectors.

Here's a quick look at the key financial pressures:

• High Cost of Revenues, totaling RMB 51.0 million (or $7.1 million) in FY2025.
• Significant operational and investment costs, resulting in a net loss of RMB 44.2 million in FY2025.
• Cash support to VIEs, which was RMB 92,151,863 for FY2025.
• Research and development (R&D) expenses for automation and software solutions amounted to RMB 16.4 million ($2.3 million).
• Personnel costs for the 188 employees and field service teams are baked into the operating expenses.

Finance: draft 13-week cash view by Friday.

Recon Technology, Ltd. (RCON) - Canvas Business Model: Revenue Streams

You're looking at how Recon Technology, Ltd. (RCON) brings in cash as of late 2025. The revenue picture for the fiscal year ended June 30, 2025, shows a slight contraction overall, but with some key segments showing growth.

Total revenue for FY2025 was RMB 66.3 million (or $9.3 million), which was a decrease of approximately 3.7% from the RMB 68.8 million earned in the prior year. This top-line pressure came as primary domestic oil company clients adopted more cautious capital expenditure approaches due to oil price fluctuations.

The revenue streams are diversified across technology and services, though customer concentration remains a factor, with CNPC representing 44% of FY2025 revenue and Sinopec 17%.

Here's a breakdown of the key revenue components for the full fiscal year 2025:

• Sales of automation products and software, which saw a revenue increase in 2025 H1 of 19.2%, and for the full FY2025, this segment increased revenue by RMB 7.3 million (or $1.0 million), representing a 27.1% year-over-year growth.
• Sales of specialized equipment and accessories for oilfield production. This stream saw a decrease in FY2025 revenue by RMB 2.0 million (or $0.3 million), which is a 10.0% decline.
• Platform outsourcing services revenue from intelligent marketing systems. For the first six months of FY2025 (H1 FY2025), this revenue stream grew by 53.7%. For the full year, the gross profit from this service was RMB 2.8 million ($0.4 million), down from RMB 3.3 million ($0.5 million) in the previous year.
• Oilfield environmental protection services (sewage/sludge treatment). This segment experienced a significant drop, with revenue decreasing by RMB 7.3 million (a 41.4% decrease) for FY2025.

To give you a clearer picture of the segment performance in FY2025 versus FY2024, look at this comparison based on the reported revenue changes:

Revenue Stream	FY2025 Revenue Change (RMB)	FY2025 Revenue Change (%)	FY2025 Gross Profit (RMB million)
Automation Product and Software	+RMB 7.3 million	+27.1%	5.5 million
Equipment and Accessories	-RMB 2.0 million	-10.0%	Not explicitly stated
Oilfield Environmental Protection Services	-RMB 7.3 million	-41.4%	Not explicitly stated (Gross Profit down 79.1%)
Platform Outsourcing Services	Implied change	H1 growth of 53.7%	2.8 million

The company also noted that the chemical recycling factory construction started on April 28, 2025, and as of June 30, 2025, it had not yet started production and sales, so that stream contributed nil revenue for the year.

Finance: draft 13-week cash view by Friday.