Negative Free Cash FlowNegative free cash flow means cash generated by operations isn’t covering capex, constraining internal funding for expansion or working capital. Over months, this limits financial flexibility, may increase reliance on external financing, and raises execution risk for growth investments.
Relatively High Liabilities / Moderate LeverageDespite improved debt-to-equity, elevated liabilities and only moderate equity cushion raise solvency risk if demand softens. Higher leverage can amplify earnings volatility, increase interest burden, and limit strategic spending or rapid response to customer program shifts in the medium term.
Project/Order-Driven Revenue VolatilityA project-driven EMS model produces lumpy revenue and can concentrate sales among a few OEM programs. This structure reduces predictability of near-term top-line and margins, making planning, capacity utilization and free cash flow generation more sensitive to order timing and customer decisions.