Customer concentration
A small number of large buyers can materially affect revenue if orders slow or contracts change.
- Scope
- Sinopec and CNPC
- Materiality
- high
Recon Technology, Ltd
Recon Technology, Ltd is a U.S.-listed company that operates oil and gas field service businesses in China through its operating platform. It supplies equipment and technologies used in petroleum extraction, gathering and transportation, and reservoir stimulation for major Chinese oil producers.
−81,7 %
23,0 %
−9,0 %
−3,7 %
5.88
5.88
| % | |
|---|---|
| Automated oilfield technologies | 30% Control and automation systems used in oilfield operations to improve extraction and field management. |
| Gathering and transportation equipment | 25% Equipment and systems used to collect, move, and transport crude oil and related fluids. |
| Reservoir stimulation services | 25% Technologies and services designed to increase petroleum extraction from producing reservoirs. |
| Oilfield efficiency solutions | 20% Products and services that reduce impurities and lower operating costs for customers. |
Recon sells primarily to large state-linked oil exploration and production companies in China...
- National oil companiesprimary
Sinopec and CNPC purchase technologies and equipment for large-scale field operations and production optimization.
- Large Chinese oil exploration firmsprimary
Other major upstream operators buy stimulation and gathering solutions to improve reservoir performance.
- Oilfield operating unitssecondary
Field-level operating teams buy equipment and services for day-to-day production and transport needs.
Recon’s business is centered in China, where it serves major oil and gas customers and operates within the domestic...
- •Core commercial exposure is in China
- •Customers are concentrated in Chinese upstream oil and gas
- •U.S. listing provides access to U.S. capital markets
- •Business depends on Chinese oilfield investment cycles
- •Operational exposure is tied to domestic energy infrastructure
Recon’s strategy is built around specialized oilfield technologies and long-term relationships with large Chinese...
01
Deepen relationships with major oil customersmedium-term
Large state-linked buyers create scale and recurring demand for field services.
02
Expand use of automation and stimulation technologiesmedium-term
Higher technical content can improve customer retention and solution relevance.
03
Maintain competitiveness in Chinese oilfield serviceslong-term
The business depends on staying relevant in a specialized domestic market.
Recon is exposed to customer concentration, since a limited number of large Chinese oil companies account for much of...
Upstream spending cyclicality
Oilfield service demand depends on capital spending and drilling activity by customers.
- Scope
- China oil and gas field services
- Materiality
- high
China operating exposure
The business is tied to Chinese industrial customers and domestic energy market conditions.
- Scope
- China
- Materiality
- high
Nasdaq listing compliance
Minimum bid and other listing rules can affect market access and investor perception.
- Scope
- NASDAQ listing
- Materiality
- medium
Revenue recognition timing
Project-based contracts and milestone billing
Receivables valuation
Allowance for credit losses
Asset impairment
Property, equipment, and inventory
Share capital accounting
Ordinary shares and EPS
: 18/07/2026