Regulatory / Subsidy DependenceRevenue and margins are materially tied to government-regulated pricing and public funding frameworks. That structural dependence means policy changes, subsidy adjustments, or regulatory shifts can materially and persistently alter revenue visibility and profitability over several quarters.
Enrollment And Utilization SensitivityBusiness performance depends on facility count and enrollment levels, creating structural exposure to demographic trends and local competition. Occupancy drops or slower enrollment growth can quickly reduce revenue while fixed costs persist, pressuring margins and cash flow across 2–6 months.
Labor-Intensive Cost BaseA large workforce (4,023 employees) signals a labor-intensive model. Persistent exposure to wage inflation, recruitment and retention challenges, and staffing-ratio regulations can exert ongoing cost pressure, limiting margin expansion and increasing operational complexity over multiple quarters.