Declining RevenueA near-term revenue decline (7.96% last year) signals weakening demand or market share loss. Persisting top-line contraction reduces scale economies, limits reinvestment capacity, and makes sustaining margins and long-term growth targets more challenging over the 2–6 month horizon.
Thin Net ProfitabilityA net margin around 0.8% provides a very slim earnings cushion against cost shocks or revenue weakness. Low bottom-line profitability constrains retained earnings for capex or R&D and reduces tolerance for prolonged input-cost or pricing pressure over the coming months.
Gross Margin PressureA trend of declining gross margins points to sustained cost pressure or weaker pricing power. Continued margin compression erodes operating leverage, forcing either cost cuts that can harm growth or reduced profitability that limits strategic investments over the medium term.