Negative Shareholders' EquityNegative equity signals liabilities exceed assets, constraining the company’s ability to raise capital or secure favorable financing. Over months this heightens default and covenant risk, can force distressed asset sales, and limits capacity to fund new developments or absorb project delays.
Cash Flow DeficitsPersistently negative operating and free cash flow reduce internal funding for construction and working capital, increasing reliance on external financing. Over the medium term this raises refinancing and liquidity risk, could delay projects, and constrains ability to capitalize on land or market opportunities.
Deteriorating Margins And Revenue DeclineA swing from strong positive gross margins to negative indicates structural cost or pricing issues and weaker project economics. Sustained margin erosion and falling revenue undermine cash generation, reduce reinvestment capacity for developments, and heighten dependency on external capital to sustain operations.