Sharp Revenue And Margin DeclineA ~50% revenue collapse and deeply negative margins indicate sales are insufficient to cover project and operating costs, likely from markdowns or write-downs. Sustained losses erode reinvestment capacity, damage project economics, and make restoring long-term profitability more difficult.
High And Rising LeverageElevated and rising debt relative to equity reduces financial flexibility and raises refinancing risk, especially during prolonged weak sales. High leverage increases interest burden, limits room to fund new projects organically, and magnifies downside if property market recovery is slow.
Severe Cash-flow ContractionA near-total collapse of operating and free cash flow materially weakens internal funding for project completion and debt service. Reliance on external financing or asset disposals in stressed markets raises execution risk and could force unfavorable restructuring or asset sales.