China Communications Services

1. Political and Economic Environment Risk: As a state-owned company operating in China, CHESS is subject to the Chinese government’s regulations and policies. Changes to laws, or policies, could have an adverse effect on demand for CHESS's services.

2. Competition Risk: CHESS competes with other telecommunications companies for customers and business. The presence of multiple competitors may limit the pricing and terms the company can offer its services for and may reduce its profitability.

3. Technological Risk: The rapid evolution of technology and increased use of high-speed networks have posed challenges for traditional telecom operators. CHESS may need to make expensive investments in order to keep up with newer technologies and upgrades.

4. Reputation Risk: Changes to the telecom landscape, such as consolidation, mergers, and acquisitions, can cause CHESS’s success to be unclear. This increases the risk of loss of customers or business partnerships due to reputational damage.

5. Financial Risk: The company is exposed to financial risk due to its heavy capital expenditures necessary for major network upgrades and changes, as well as changes in customer demand. High debt levels can place additional strain on CHESS's liquidity.