valuations

According to the prospectus price of HK$0.83 to 1.09, Yixin's price-earnings ratio for the 2013 fiscal year was 5.4 to 7.0 times, and the market account ratio was 2.0 to 2.3 times. Compared to the 6.4 times price-earnings ratio of Junhe Development (711.HK), the valuation is reasonable. However, since the company's market capitalization is small and its revenue mainly comes from five major customers, speculative purchases are made.

Risk Factors

(1) The past revenue and profit ratio from the underlying item may not be used as an indicator of future income and profit ratio; (2) The price is determined based on the estimated time and cost of the item involved, which may differ from the actual time and cost. Deviated estimates may adversely affect financial results; (3) construction disputes and lawsuits may have a significant impact on business, operations and financial results; (4) the number of customers during the performance recording period was limited, and revenue from the five major customers accounted for about 95% of the total revenue for the year ended March 31, 2013. Any decline in major contracts obtained from the five major customers may adversely affect business, operation and financial results; (5) revenue mainly comes from unusual foundation projects; (6) there is no guarantee that progress payments will be made on time and in full, or that payment will be made in full when payments are due, or that it will affect future liquidity conditions; (7) face unbridled interest rate risks that may affect cash flow; (8) face unbridled interest rate risks that may affect cash flow; (8) Sometimes sub-contractors are employed to complete some foundation projects, If the subcontractor in question fails to comply with regulations or fails to perform its obligations, or is liable ; (9) Relying on key management personnel.