Very High LeverageDebt-to-equity near 4.5x (7.2x in 2025) leaves the balance sheet highly leveraged. Elevated leverage heightens refinancing and interest-rate exposure, reduces financial flexibility for capex or inventory, and amplifies the impact of any revenue or margin setbacks on solvency and strategy.
Sharp Margin DeteriorationGross margin collapsed to ~18.9% in 2026 from ~39.1% a year earlier, indicating severe margin pressure. Sustained compression undermines the ability to generate net profits even with revenue growth, weakens pricing power, and makes the business vulnerable to cost inflation and competitive discounting.
Persistent Net Losses And Negative ROEThe company reported net losses in 2025–2026 and negative returns on equity, meaning operating gains are being offset by non‑operating or financing costs. Persistent losses hinder equity rebuilding, restrict reinvestment capacity, and damage long‑term investor confidence if not reversed.