Recon Technology, Ltd

The Domestic Companies provide automation products and services for the petroleum industry in China, focusing on exploration and extraction processes. Their solutions help petroleum mining and extraction companies reduce labor needs and improve oilfield productivity. Specifically, these solutions enable customers to locate productive oilfields more easily and accurately, enhance control over extraction, increase oil yield efficiency during tertiary stage oil recovery, and improve crude oil transportation. The Domestic Companies have developed an integrated service model, with simulation measures around fracturing serving as an entry point. They have formed new business modules through research and development and investment in service-team building, leading to an integrated services solution for stimulation. China is their primary market. China is the world's second-largest consumer of petroleum products, the largest importer of petroleum, and the fourth-largest producer of petroleum. The oil industry in China is dominated by three state-owned holding companies: China National Petroleum Corporation ("CNPC"), China Petroleum and Chemical Corporation ("Sinopec"), and China National Offshore Oil Corporation ("CNOOC"). Foreign companies are involved, but Chinese law requires national oil companies to hold a majority or minority stake in commercial discoveries, limiting the number of major foreign companies in domestic China.