Moderate Leverage On Balance SheetA D/E of ~1.07 indicates meaningful reliance on debt financing. While manageable today, sustained leverage constrains financial flexibility, raises interest expense sensitivity, and amplifies risk if industry cash flows reverse or input costs spike over the medium term.
Historic Margin And Cash VolatilityPrior negative gross profit and earlier cash-flow swings highlight the business's exposure to episodic losses. Such volatility suggests profitability is sensitive to cost shocks and inventory/timing effects, making future margin predictability and planning harder.
Exposure To Input Costs And Government PolicyDependence on imported raw materials and subsidy-driven revenue introduces structural risks: FX and freight swings and policy/timing variations can compress margins or delay collections, reducing long-term earnings visibility and increasing working capital demands.