Poor Cash Conversion / Negative Free Cash FlowEarnings are not translating into cash, creating structural funding pressure. Persistent negative free cash flow limits internal funding for capex, dividends or debt reduction, may force external financing, and weakens resilience to cost shocks or growth investment needs over months to years.
Low Profitability And Negative EBIT MarginA negative EBIT margin and slim net margin indicate core operations struggle to cover operating costs. This structural weakness makes margins vulnerable to input cost increases, constrains reinvestment, and undermines the durability of earnings despite revenue growth.
Very Small Internal Workforce / Limited ScaleAn extremely small employee base implies heavy reliance on outsourcing, partners, or subsidiaries. That raises persistent execution, capacity and concentration risks, and may limit R&D, quality control and ability to scale operations organically over the medium term.