Severe Revenue DeclineLarge, persistent revenue contraction erodes scale economics, reduces project pipeline throughput and weakens bargaining power with partners and tenants. Continued top‑line shrinkage hampers margin leverage and makes rebuilding profitable cash flow and project funding more difficult over months.
High Financial LeverageVery high leverage increases interest obligations and refinancing risk, constraining the company’s ability to finance new developments or absorb shocks. With thin equity, debt burdens can force asset sales or limit negotiations on JV terms, undermining strategic flexibility long term.
Weak Cash Flow Conversion And ProfitabilityNegative operating cash flow and sharply declining free cash flow reflect poor cash conversion, while negative net margins signal structural profitability issues. This combination limits reinvestment capacity, stresses liquidity, and may necessitate asset disposals or capital raises that dilute long‑term returns.