Negative Operating Cash FlowConsistent negative operating cash flow signals a structural inability to convert reported revenue into cash, pressuring liquidity over time. This forces dependence on financing, asset sales, or equity to fund operations, undermining sustainable project execution and raising solvency risk if trends persist.
Weak And Volatile ProfitabilityPersistent negative EBIT and net income margins reflect operational inefficiencies or high project costs that erode returns. Even with large revenue swings, without durable margin improvement the company cannot generate shareholder value or reliable internal funding, weakening long-term viability.
Very Small Operating ScaleAn extremely small headcount suggests heavy reliance on external contractors or concentrated management, increasing execution and governance risk for real estate development. Limited in-house capacity can constrain simultaneous projects, slow responses to issues, and elevate operational fragility.