Persistent Negative Operating Profit And Cash GenerationSustained operating losses and negative operating/free cash flow create a structural drain on resources and force reliance on asset disposals or external funding. Over months this undermines self‑funding capacity and increases execution risk for project investments.
Reported Profits Driven By Non‑operating ItemsHigh net margins stemming from non‑operating gains rather than recurring operations reduce earnings quality. Such items are often one‑off or market‑sensitive, making future profit sustainability and cash convertibility uncertain over the medium term.
No Producing Assets Or Recurring Revenue BaseAbsence of producing assets means revenue and cash flows depend on timing of disposals, revaluations or project milestones. This structural lack of recurring income increases volatility and reduces predictability of funds available for operations and investments over coming months.