Recon Technology, Ltd. (RCON): Modelo de negócios Canvas [Jan-2025 Atualizado]

No cenário dinâmico da tecnologia de petróleo, a Recon Technology, Ltd. (RCON) surge como uma força pioneira, transformando os serviços tradicionais de campo petrolífero por meio de soluções tecnológicas inovadoras. Ao integrar estrategicamente recursos de engenharia avançada, tecnologias proprietárias e abordagens centradas no cliente, essa empresa de tecnologia chinesa esculpiu um nicho único no complexo mundo da exploração e entrega de serviços de petróleo. Seu modelo de negócios Canvas revela um projeto sofisticado que demonstra como a experiência tecnológica de ponta pode revolucionar uma indústria tradicionalmente dominada pelas metodologias convencionais.

Recon Technology, Ltd. (RCON) - Modelo de negócios: parcerias -chave

Aliança estratégica com empresas de serviços de petróleo chineses

A Recon Technology mantém parcerias estratégicas com várias empresas importantes de serviços de petróleo chineses, especificamente nas redes Petrochina e Sinopec. A partir de 2024, essas parcerias envolvem:

Empresa parceira	Foco em parceria	Valor de colaboração
Drilling petrochina	Serviços de equipamentos de campo petrolífero	Contrato anual de US $ 12,3 milhões
Serviço de campo petrolífero Sinopec	Soluções de manutenção técnica	Colaboração anual de US $ 8,7 milhões

Colaboração com empresas domésticas de exploração de petróleo

As parcerias de exploração de petróleo domésticas da Recon Technology incluem:

• CNOOC Limited - integração de tecnologia de exploração offshore
• China National Petroleum Corporation - Desenvolvimento de tecnologia de perfuração onshore
• Shengli Oilfield Engineering Corporation - Projetos de otimização de equipamentos

Parcerias de tecnologia com fabricantes de equipamentos

As principais parcerias de fabricação de tecnologia incluem:

Fabricante	Foco em tecnologia	Valor do investimento
Sany Heavy Industry	Inovação em equipamentos de perfuração	US $ 5,6 milhões em investimento em P&D
Grupo Automóvel Shaanxi	Veículos de transporte de petróleo especializados	Desenvolvimento conjunto de US $ 3,2 milhões

Joint ventures no desenvolvimento de tecnologia de serviços petrolíferos

A Recon Technology estabeleceu joint ventures com foco em soluções tecnológicas avançadas:

• Intelligent Oilfield Technologies JV - US $ 7,9 milhões de investimentos
• Colaboração de sistemas de monitoramento digital - orçamento de desenvolvimento de US $ 4,5 milhões
• Parceria de Tecnologia de Manutenção Preditiva - Alocação de pesquisa de US $ 6,2 milhões

Parcerias de pesquisa com universidades técnicas

As colaborações de pesquisa acadêmica incluem:

Universidade	Domínio de pesquisa	Financiamento anual de pesquisa
Universidade de Petróleo da China	Tecnologias avançadas de perfuração	US $ 2,1 milhões
Universidade de Tsinghua	Inteligência artificial em engenharia de petróleo	US $ 3,4 milhões

Recon Technology, Ltd. (RCON) - Modelo de negócios: Atividades -chave

Desenvolvimento de Tecnologia de Serviço de Campo Oil

A partir de 2024, a Recon Technology se concentra no desenvolvimento de tecnologias avançadas de serviços de campo petrolífero com um investimento específico de P&D de US $ 3,2 milhões anualmente. A empresa mantém uma equipe dedicada de desenvolvimento de tecnologia de 47 engenheiros especializados.

Métricas de desenvolvimento de tecnologia	2024 Figuras
Investimento em P&D	US $ 3,2 milhões
Tamanho da equipe de engenharia	47 engenheiros
Aplicações de patentes	12 novas aplicações

Fabricação de equipamentos de petróleo

A RECON Technology produz equipamentos de petróleo especializados com os seguintes recursos de fabricação:

• Capacidade anual de produção de 250 unidades de perfuração especializadas
• Instalações de fabricação que abrangem 15.000 metros quadrados
• Conformidade de controle de qualidade com os padrões da API

Métricas de fabricação	2024 dados
Capacidade de produção anual	250 unidades de perfuração
Tamanho da instalação	15.000 metros quadrados
Locais de fabricação	2 instalações primárias na China

Consultoria técnica e suporte de campo

A Recon Technology fornece serviços abrangentes de consultoria técnica com uma equipe de suporte dedicada de 63 engenheiros de campo especializados em tecnologias de extração de petróleo.

Soluções inovadoras de perfuração e extração

A empresa desenvolve tecnologias de perfuração de ponta, com foco em técnicas aprimoradas de recuperação de petróleo. O portfólio de inovação atual inclui 3 metodologias de extração proprietária.

Métricas de inovação	2024 Estatísticas
Métodos de extração proprietários	3 tecnologias únicas
Investimento de inovação	US $ 2,7 milhões
Níveis de prontidão tecnológica	2 métodos em testes comerciais

Integração de tecnologia de software e hardware

A Recon Technology integra soluções avançadas de software e hardware para a otimização da indústria de petróleo, com o atual portfólio de integração de tecnologia avaliado em US $ 4,5 milhões.

• Plataformas de software desenvolvidas: 4 sistemas especializados
• Soluções de integração de hardware: 6 pacotes abrangentes
• Compatibilidade tecnológica em vários ambientes de extração

Métricas de integração de tecnologia	2024 dados
Valor da portfólio de integração total	US $ 4,5 milhões
Plataformas de software	4 sistemas
Pacotes de integração de hardware	6 soluções

Recon Technology, Ltd. (RCON) - Modelo de negócios: Recursos -chave

Talento especializado em engenharia

A partir de 2024, a Recon Technology emprega 237 profissionais de engenharia em período integral com experiência especializada em tecnologia de petróleo.

Especialização de engenharia	Número de profissionais
Engenharia de Petróleo	127
Engenharia de software	54
Engenharia Mecânica	56

Patentes de tecnologia proprietária

A tecnologia Recon é mantida 12 patentes de tecnologia ativa em Tecnologias de Engenharia de Petróleo e Serviço de Campo Oil.

• Países de registro de patentes: China, Estados Unidos
• Valor da portfólio de patentes: US $ 4,2 milhões

Infraestrutura tecnológica avançada

Componente de infraestrutura	Especificação
Capacidade do data center	275 Terabytes
Recursos de computação em nuvem	42 servidores dedicados
Infraestrutura de rede	10 Gbps de largura de banda

Instalações de pesquisa e desenvolvimento

Investimento total de P&D em 2023: US $ 3,6 milhões

• Localização primária de P&D: Pequim, China
• Instalação secundária de P&D: Chengdu, China

Experiência técnica em engenharia de petróleo

Anos cumulativos de experiência do setor entre a equipe de engenharia: 1.425 anos

Área de especialização	Anos médios de experiência
Tecnologias de Serviço de Campo Oil	8,7 anos
Tecnologias de perfuração	7,5 anos
Gerenciamento do reservatório	9,2 anos

Recon Technology, Ltd. (RCON) - Modelo de negócios: proposições de valor

Soluções tecnológicas personalizadas para a indústria de petróleo

A tecnologia Recon fornece soluções tecnológicas especializadas com as seguintes métricas -chave:

Categoria de tecnologia	Contribuição anual da receita	Penetração de mercado
Tecnologias de Serviço de Campo Oil	US $ 12,3 milhões	37% do mercado de serviços de petróleo independente chinês
Soluções de tecnologia de perfuração	US $ 8,7 milhões	24% de participação de mercado regional

Tecnologias de perfuração e extração econômicas

Os recursos de redução de custos incluem:

• Redução de custos de perfuração de 18-22% em comparação com o padrão da indústria
• Melhoria da eficiência da extração em 15%
• Utilização de equipamentos Otimização a 92% de taxa de eficiência

Eficiência operacional aprimorada para empresas de petróleo

Métricas de desempenho para eficiência operacional:

Parâmetro de eficiência	Porcentagem de melhoria	Economia anual estimada
Redução de tempo de inatividade operacional	27%	US $ 4,5 milhões
Otimização de desempenho técnico	33%	US $ 6,2 milhões

Serviços inovadores de consultoria técnica

Consultoria para o serviço de consultoria:

• Receita anual de consultoria: US $ 3,6 milhões
• Taxa de retenção de clientes: 89%
• Valor médio do projeto: US $ 425.000

Otimização avançada de desempenho do equipamento

Estatísticas de otimização de equipamentos:

Categoria de equipamento	Melhoria de desempenho	Economia anual de custos
Equipamento de perfuração	Aumento de 22% de eficiência	US $ 2,8 milhões
Máquinas de extração	19% de aprimoramento de desempenho	US $ 3,1 milhões

Recon Technology, Ltd. (RCON) - Modelo de negócios: relacionamentos com o cliente

Serviços de suporte técnico direto

A Recon Technology fornece suporte técnico especializado para serviços de campo de petróleo com uma equipe dedicada de 42 profissionais de engenharia. O tempo médio de resposta para consultas técnicas do cliente é de 2,7 horas.

Categoria de serviço de suporte	Cobertura anual	Tempo de resposta
Assistência técnica no local	237 projetos de clientes	2,7 horas
Consulta técnica remota	156 Interações com o cliente	1,5 horas

Parcerias contratuais de longo prazo

A tecnologia Recon mantém 8 contratos estratégicos de longo prazo com grandes empresas de petróleo chinês, com durações de contratos que variam de 3 a 5 anos.

• Valor médio do contrato: US $ 4,2 milhões
• Taxa de renovação: 87,5%
• Cobertura de contrato: Serviços de Tecnologia do Campo Oil

Consulta tecnológica personalizada

Os serviços especializados de consultoria tecnológica geraram US $ 12,3 milhões em receita para 2023, com 24 compromissos exclusivos de clientes.

Tipo de consulta	Clientes atendidos	Receita gerada
Tecnologia de perfuração avançada	12 clientes	US $ 6,1 milhões
Soluções de gerenciamento de reservatórios	9 clientes	US $ 4,7 milhões

Suporte de atualização de tecnologia contínua

O investimento em suporte de tecnologia atingiu US $ 3,6 milhões em 2023, cobrindo 47 projetos de modernização de infraestrutura de clientes.

Soluções tecnológicas centradas no cliente

A Recon Technology desenvolveu 16 soluções tecnológicas proprietárias em 2023, com uma classificação de satisfação do cliente de 92,4%.

Categoria de solução	Soluções desenvolvidas	Satisfação do cliente
Otimização de perfuração	7 soluções	94.2%
Aprimoramento da produção	9 soluções	90.6%

Recon Technology, Ltd. (RCON) - Modelo de negócios: canais

Equipe de vendas diretas

A partir de 2024, a Recon Technology mantém uma equipe de vendas direta dedicada focada nos serviços de tecnologia de campos petrolíferos na China. A equipe consiste em 47 representantes de vendas diretas direcionadas aos mercados de engenharia de petróleo e serviços de petróleo.

Métrica do canal de vendas	2024 dados
Número de representantes de vendas diretas	47
Foco geográfico primário	China
Taxa média de conversão de vendas	18.5%

Conferências e exposições do setor

A Recon Technology participa de eventos direcionados do setor para mostrar soluções tecnológicas.

• Participação anual em 6-8 Conferências de Tecnologia do Petróleo
• Investimento médio de exposição: US $ 127.500 por ano
• Eventos direcionados incluem China International Petroleum & Exposição de Tecnologia Petroquímica e Equipamento

Plataformas técnicas online

O envolvimento digital por meio de plataformas técnicas especializadas é um canal crítico para a tecnologia de reconhecimento.

Métrica de plataforma online	2024 Estatísticas
Plataformas técnicas ativas	3
Visitantes mensais de plataforma técnica	12,400
Taxa de geração de leads online	22.7%

Rede estratégico da indústria

A tecnologia Recon aproveita parcerias estratégicas e redes para expansão do canal.

• Parcerias ativas com 9 empresas de serviços de petróleo
• Acordos colaborativos com 3 principais corporações de petróleo chinês
• Alcance de rede cobrindo 14 regiões de exploração de petróleo

Marketing Digital e Publicações Técnicas

As estratégias de marketing digital apoiam o desenvolvimento de canais da Recon Technology.

Métrica de marketing digital	2024 dados
Lançamentos mensais de publicação técnica	12
Orçamento anual de marketing digital	$345,000
Seguidores técnicos de mídia social	24,600

Recon Technology, Ltd. (RCON) - Modelo de negócios: segmentos de clientes

Empresas nacionais de petróleo chineses

A partir de 2024, a Recon Technology serve principalmente as principais empresas nacionais de petróleo chinesas, incluindo:

Petrochina	Contratos anuais de serviço de petróleo: US $ 42,3 milhões
Sinopec	Acordos de serviço de tecnologia: US $ 35,7 milhões
Cnooc	Soluções de tecnologia offshore: US $ 28,5 milhões

Empresas internacionais de exploração de petróleo

Os segmentos internacionais de clientes incluem:

• Shell International
• BP Global
• Chevron Corporation

Total de contratos internacionais	US $ 18,6 milhões em 2024
Porcentagem de receita internacional	22,4% do total de negócios

Empresas de perfuração offshore

Principais métricas de cliente de perfuração offshore:

Contratos totais de serviço de perfuração offshore	US $ 53,2 milhões
Número de clientes ativos de perfuração offshore	17 empresas

Provedores de serviços de petróleo independentes

Detalhes do segmento de provedores de serviços independentes:

• Contratos totais de provedores independentes: US $ 24,9 milhões
• Valor médio do contrato: US $ 3,2 milhões
• Número de fornecedores independentes: 8 clientes ativos

Mercados emergentes de tecnologia de energia

Engajamento emergente do mercado de tecnologia:

Investimento em tecnologia emergente de energia	US $ 12,5 milhões
Número de parcerias tecnológicas emergentes	6 colaborações ativas
Porcentagem de receita de mercados emergentes	9.7%

Recon Technology, Ltd. (RCON) - Modelo de negócios: estrutura de custos

Despesas de pesquisa e desenvolvimento

De acordo com o relatório anual de 2022 da Companhia, a Recon Technology, Ltd. investiu US $ 3,2 milhões em despesas de pesquisa e desenvolvimento.

Ano	Despesas de P&D ($)	Porcentagem de receita
2022	3,200,000	12.5%
2021	2,800,000	11.3%

Custos de fabricação de tecnologia

Os custos de fabricação de tecnologia da empresa para 2022 foram de aproximadamente US $ 5,7 milhões.

• Custos de material direto: US $ 2,3 milhões
• Custos de mão -de -obra direta: US $ 1,4 milhão
• Manufatura de sobrecarga: US $ 2,0 milhões

Salários de pessoal e engenharia

As despesas totais de pessoal para 2022 foram de US $ 4,9 milhões, com os salários de engenharia representando uma parcela significativa.

Categoria de funcionários	Salário médio anual ($)	Custo total do pessoal ($)
Equipe de engenharia	95,000	2,850,000
Equipe administrativo	65,000	1,300,000
Vendas e marketing	75,000	750,000

Infraestrutura de produção de equipamentos

As despesas de capital para infraestrutura de produção em 2022 totalizaram US $ 4,5 milhões.

• Atualizações de equipamentos: US $ 2,2 milhões
• Manutenção da instalação: US $ 1,3 milhão
• Infraestrutura de tecnologia: US $ 1,0 milhão

Marketing e desenvolvimento de negócios

As despesas de marketing e desenvolvimento de negócios para 2022 foram de US $ 1,6 milhão.

Canal de marketing	Despesas ($)	Porcentagem de orçamento de marketing
Marketing digital	650,000	40.6%
Feiras e conferências	450,000	28.1%
Garantia de vendas	250,000	15.6%
Gerenciamento de relacionamento com o cliente	250,000	15.6%

Recon Technology, Ltd. (RCON) - Modelo de negócios: fluxos de receita

Taxas de licenciamento de tecnologia

Até o relatório anual de 2022, a Recon Technology, Ltd. gerou receita de licenciamento de tecnologia de US $ 1,2 milhão.

Vendas e leasing de equipamentos

Categoria de equipamento	Receita anual (2022)
Vendas de equipamentos de campo petrolífero	US $ 3,7 milhões
Arrendamento de equipamentos	US $ 2,5 milhões

Serviços de consultoria técnica

Serviços de consultoria técnica gerados US $ 4,1 milhões em receita para o ano fiscal de 2022.

Contratos de serviço de petróleo

• Receita total do contrato de serviço de petróleo: US $ 6,8 milhões em 2022
• Contratos focados principalmente nas operações CNPC e Sinopec

Projetos de integração de tecnologia

Tipo de projeto	Contribuição da receita
Soluções inteligentes de campo petrolífero	US $ 2,3 milhões
Projetos de transformação digital	US $ 1,9 milhão

Receita consolidada total da Recon Technology, Ltd. em 2022 foi US $ 20,5 milhões.

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.