Severe Margin CompressionThe sharp, sustained collapse in gross and net margins signals structural pricing pressure, impairments, or rising unit costs that materially undermine long-term profitability. Persistently low margins reduce reinvestment capacity and make recovery reliant on sizable operational improvements or asset disposals.
Rising Leverage And Eroded EquityHigher leverage and declining shareholders' equity increase refinancing and solvency risk. With debt-to-equity near 1.8, the company has less financial flexibility to withstand prolonged market weakness, making it more likely to need asset sales, distress financing, or dilutive capital over coming months.
Weak Cash GenerationConsistent negative free cash flow and a swing to negative operating cash flow indicate poor cash conversion and ongoing funding needs. This structural cash shortfall elevates reliance on external financing or asset monetization, constraining investment and increasing liquidity risk over the medium term.