Shijiazhuang ChangShan BeiMing Technology Stock Forum

The company's strained balance sheet, high debt level, and CN¥658m EBIT loss make it a risky investment. Its falling revenue and last year's loss of CN¥202m are among at least 2 concerning warning signs.

The company's P/S ratio is typical for a company expected to deliver moderate growth. However, the recent decline in revenue and inconsistent growth could potentially weigh down the shares, posing a risk to shareholders.

The company's falling revenue and EBIT loss of CN¥658m, in combination with its balance sheet liabilities compared to cash, make it risky. Turning its trailing twelve-month loss of CN¥202m into a profit would reduce this risk.

Caution is required despite share price growth due to the discrepancy between the increase and revenue's downward trajectory. Possible business improvements contrast with 3 warning signs investors should consider.