Multi-year Large LossesSustained deep losses over multiple years erode retained earnings and reduce the firm's capacity to invest or absorb shocks. Persistent negative margins weaken long-term profitability prospects and increase reliance on external financing or asset sales to sustain operations.
High And Rising LeverageElevated debt amid a shrinking equity base heightens refinancing and interest-service risk, especially in a cyclical property market. This structural leverage constrains strategic flexibility, elevates default likelihood under stress, and raises the cost of capital for recovery initiatives.
Steep Revenue ContractionA dramatic drop in revenue reduces scale, undermines operating leverage and margin sustainability. Falling sales volumes signal weaker project execution or demand, making it harder to rebuild earnings and cash flow without material changes to sales, pricing or portfolio strategy.