Negative Shareholders' Equity And High LeverageNegative equity and significant liabilities constrain financial flexibility and raise solvency risk. Leverage limits the firm’s ability to absorb shocks, obtain affordable debt, or invest for growth, and can force reliance on short-term financing or state support over the medium term.
Volatile Revenue And Weak MarginsHistoric swings in revenue and persistent low gross margins from high input and utility costs make earnings unpredictable. Margin pressure reduces retained cash for reinvestment and increases sensitivity to feedstock price volatility, impairing sustainable profitability.
High Exposure To Government Pricing And Subsidy RiskDependence on controlled pricing and subsidy regimes creates structural regulatory and timing risk. Delayed subsidies or policy shifts can compress margins, strain liquidity and impede planning, making medium-term cash flows and profitability contingent on government actions.