1396.HK - Risk

Elevated Business & Solvency Risk

Caution: In addition to price volatility, there are balance sheet risks due to higher debt or weaker liquidity (Health Score: 30/100).

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

7/7 Very High

7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Moves approx. 3.1x as much as the broader market.

Beta (Market Relation)

3.06x

Above average

Volatility (5Y p.a.)

194.6% p.a.

5-Year Horizon

Max Drawdown (5Y)

-98.3%

5-Year Horizon

Sharpe Ratio

0.07

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Volatility Expansion (3Y > 5Y) High Volatility

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+72.8%
3 Years	240.5%	-82.9%	1.06	+256.7%
5 Years	194.6%	-98.3%	0.07	+17.1%
10 Years	143.7%	-99.1%	0.01	+3.2%

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

Unprofitable business model: The company is currently generating net losses.

High market risk: Beta of 3.06 indicates above-average volatility compared to the broader market.

Elevated Short-Term Volatility: 3Y volatility (240.5%) is noticeably higher than the 5Y average (194.6%).

Structurally High Volatility: Above-average fluctuations persist across 5 to 10 years (194.6% p.a.).

Historical Stress Test: Maximum peak-to-trough drawdown of -99.1% in the extended horizon.