Persistent UnprofitabilityThe company reports ongoing losses with negative net profit and EBIT margins, indicating core operations are not yet profitable. Persistent operating losses erode shareholder equity, limit reinvestment capacity, and require sustained margin improvement or structural changes to reach durable profitability.
Elevated LeverageDespite some improvement, debt-to-equity remains elevated at 2.66 and ROE is negative, signaling significant leverage. Elevated debt increases interest burden and insolvency risk during downturns, constraining strategic options and making operational recovery more dependent on rapid earnings improvement.
Cash Not Covering LossesWhile free cash flow improved, the free-cash-flow-to-net-income ratio shows cash generation still cannot fully cover net losses. Continued reliance on external financing or equity issuance may be needed until profits emerge, introducing dilution or higher funding costs and limiting long-term financial flexibility.