Unprofitable OperationsPersistent negative net margins indicate the core business is not currently generating economic profit. Continued losses erode equity, limit reinvestment, and impede the firm's ability to build reserves, posing a structural challenge to long-term financial health unless margins improve.
Highly Leveraged Balance SheetSignificant leverage and depleted equity increase refinancing and solvency risk. In property development, heavy debt amplifies exposure to interest and funding squeezes; low equity constrains flexibility to fund projects or weather market slowdowns over the medium term.
Severe Cash Flow DeteriorationThe collapse to zero reported cash flows signals acute liquidity strain and an inability to self-fund operations or complete projects. Over the coming months this raises execution and refinancing risk, increasing dependence on external financing to sustain the business.