debt_leverage_profile
Minimal long-term debt; near-zero leverage ratio. A 200bps rate rise has negligible interest expense impact given debt-light balance sheet.
Inferred
Agent_Inference
interest_rate_sensitivity
Low sensitivity; company carries minimal debt. Rate increases affect cost of any future capital raises but not current interest burden materially.
Inferred
Agent_Inference
geopolitical_supply_exposure
High intensity; OPEC+ supply decisions and Russia-Ukraine conflict drive price volatility.
Medium
GICS-commodity-overlay-v1
supply_chain_dependency
1) Chinese domestic component suppliers subject to PRC regulatory shifts; 2) U.S.-China tech export controls restricting sensor/electronics imports.
Inferred
Agent_Inference
international_expansion_readiness
Revenues ~99% RMB-denominated within China; minimal sovereign currency devaluation exposure from international markets as there effectively are none.
Inferred
Agent_Inference
geographic_footprint
Virtually all revenue from China; RMB devaluation risk exists but is domestic; no material multi-currency international revenue exposure.
Inferred
Agent_Inference
commodity_exposure_profile
High intensity; commodities: Crude Oil, Natural Gas, Coal, Refined Petroleum Products, Uranium, Steel (equipment); geopolitical: OPEC+ supply decisions and Russia-Ukraine conflict drive price volatility.
Medium
GICS-commodity-overlay-v1
vendor_lock_dependency_score
Relies on Chinese state-owned oil companies (CNPC, Sinopec) as dominant customers; single-customer concentration likely exceeds 30% of revenue.
Inferred
Agent_Inference
business_model_type_primary
Project-based oilfield technology services; not cloud-native. Cloud termination would affect back-office systems, not core operational delivery.
Inferred
Agent_Inference
business_model_type_secondary
On-premise hardware/software deployment model for oilfield clients; cloud dependency is minimal and substitutable within 30–60 days.
Inferred
Agent_Inference
switching_cost_profile
Low API coupling risk; proprietary hardware-centric solutions deployed on-site at oil fields with minimal third-party API dependencies.
Inferred
Agent_Inference
howey_test_risk_index
Low Howey Test risk; revenue model is traditional services/product sales to oilfield operators, not investment contracts or token-based schemes.
Inferred
Agent_Inference
regulatory_burden_tier
High
Medium
GICS-regulatory-overlay-v1
data_sovereignty_risk
Operates exclusively in China under PRC data regulations; GDPR/CCPA exposure is negligible given no material EU or U.S. customer base.
Inferred
Agent_Inference
antitrust_exposure_flag
Low antitrust risk; small-cap niche oilfield services provider with <1% market share in China's highly fragmented oilfield tech sector.
Inferred
Agent_Inference
regulatory_exposure_profile
High burden; regimes: EPA, FERC, DOE, CFTC, OSHA, SEC; Accelerating emissions mandates and methane rules threaten capex economics.
Medium
GICS-regulatory-overlay-v1
revenue_model_type
Predominantly transactional (~85–90%); project-based contracts with state-owned oil companies. Minimal recurring subscription revenue.
Inferred
Agent_Inference
monetization_vector
One-time equipment sales and project-based service fees to Chinese oilfield operators; limited annuity or recurring revenue streams.
Inferred
Agent_Inference
pricing_architecture
Cost-plus project pricing tied to state-owned enterprise procurement cycles; limited pricing power given government-controlled customer budgets.
Inferred
Agent_Inference
pricing_power_rating
Very low (2/10); customers are SOEs with rigid procurement rules; competitive bidding suppresses margin expansion and independent pricing authority.
Inferred
Agent_Inference
target_gross_margin_bracket
17.0% Gross Margin (Thin (<20%))
High
SEC-XBRL
churn_vulnerability_index
No free-rider problem; hardware/services require purchase. However, project-based model creates lumpy revenue and high re-win risk each cycle.
Inferred
Agent_Inference
headcount_cost_structure
Revenue growth is largely headcount-linear; engineering and field-service labor drives delivery, limiting operating leverage at scale.
Inferred
Agent_Inference
marginal_cost_of_growth
Sublinear scaling is difficult; each new project requires incremental field engineers and hardware, keeping marginal costs high relative to revenue.
Inferred
Agent_Inference
franchise_compliance_risk
Not applicable; company does not operate a franchise model.
Inferred
Agent_Inference
customer_acquisition_metric
Unit economics at 10x scale are challenged; customer acquisition tied to SOE relationships and government approvals, not scalable marketing funnels.
Inferred
Agent_Inference
network_effect_present
No network effects; oilfield instrumentation services are point solutions with no user-base interdependency or platform dynamics.
Inferred
Agent_Inference
asset_efficiency_ratio
AI displacement risk is moderate-high; AI-driven oilfield monitoring and optimization could commoditize Recon's legacy sensor/data services within 5–7 years.
Inferred
Agent_Inference
recession_resistance_tier
Tier 3 (cyclical); revenues tied to Chinese oil capex spending, which contracts significantly during oil price downturns or SOE budget cuts.
Inferred
Agent_Inference
customer_segment_primary
Chinese state-owned oil companies (CNPC, Sinopec, CNOOC) — likely >60% of revenue; extreme customer concentration risk.
Inferred
Agent_Inference
customer_segment_secondary
Small/mid-size private Chinese oilfield operators and regional oil production entities; secondary but limited revenue diversification benefit.
Inferred
Agent_Inference
characteristic_occupations
["11-0000 Management Occupations", "13-0000 Business and Financial Operations Occupations", "15-0000 Computer and Mathematical Occupations", "17-0000 Architecture and Engineering Occupations", "19-0000 Life, Physical, and Social Science Occupations", "23-0000 Legal Occupations", "41-0000 Sales and Related Occupations", "43-0000 Office and Administrative Support Occupations", "47-0000 Construction and Extraction Occupations", "49-0000 Installation, Maintenance, and Repair Occupations", "53-0000 Transportation and Material Moving Occupations"]
High
SOC-2018/GICS-overlay
agent_automatable_labor_share
0.33 (HIL — ~33% of characteristic roles agent-automatable)
Medium
SOC-2018 + agentic-exposure-v1
capital_expenditure_profile
0.4% CapEx / Revenue (Low-CapEx Asset-Light)
High
SEC-XBRL
sec_cik
0001442620
High
SEC-EDGAR
ticker
RCON
High
SEC-EDGAR