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โ Due DiligenceRisks
1. Geo-political risks: Being based in China, the company is subject to the political and economic policies of the Chinese government, which may have an effect on its operations and financials.
2. Competition Risk: There is a high degree of competition from both foreign and domestic companies in the water business, which can have a negative effect on Beijing Enterprises Water Group Limited's revenues.
3. Currency Risk: Being based in China, the company's operations and financials are subject to the exchange rate fluctuations of the Chinese yuan which could have a negative effect on the company's financials.
4. Regulatory Risk: The Chinese government is increasingly imposing regulations and restrictions on companies operating in the water industry, which can lead to higher costs or reduced profits for the company.
5. Infrastructure Risk: The company operates a number of infrastructure projects for its customers, which can be expensive and difficult to maintain and which can affect the company's profitability.