Li Cheng Enterprise Co Ltd

Li Cheng Enterprise Co Ltd operates with a debt-to-equity ratio of 1.21, indicating a capital structure that is moderately leveraged. The company's liquidity position is weak, as evidenced by a current ratio of 0.86 and negative free cash flow of -TWD 398.3 million [doc:HA-latest]. The negative operating cash flow of -TWD 296.9 million further highlights the company's cash flow challenges [doc:HA-latest]. Profitability metrics are severely negative, with a return on equity of -27.08% and a return on assets of -11.88% [doc:HA-latest]. These figures are well below the typical performance of the Textiles & Leather Goods industry, which is characterized by thin margins and cyclical demand. The company's operating income of -TWD 412.1 million and net income of -TWD 507.4 million underscore the magnitude of its underperformance [doc:HA-latest]. The company's revenue is derived from the production and sale of knitted fabrics, with a focus on domestic and international markets in Asia and the Americas [doc:HA-latest]. However, the input data does not provide specific segment or geographic revenue breakdowns, making it difficult to assess the degree of concentration or diversification in its operations [doc:HA-latest]. The company's growth trajectory is currently negative, with a net income decline of 100% year-over-year. The absence of positive revenue or profit growth in the most recent financial period suggests a challenging operating environment, potentially driven by industry-wide headwinds or internal operational inefficiencies [doc:HA-latest]. The risk assessment indicates a medium liquidity risk and a low dilution risk. The company's negative net cash position, after subtracting total debt, is a key flag in its risk profile [doc:HA-latest]. The low dilution risk is supported by the absence of significant dilution sources in the provided data, although the company's financial distress could lead to future equity issuances to fund operations or reduce debt [doc:HA-latest]. Recent events and filings are not detailed in the input data, but the company's financial performance suggests a need for operational restructuring or cost optimization to improve its financial health. The company's capital expenditure of -TWD 114.3 million indicates ongoing investment, but the negative free cash flow suggests that these investments are not yet generating positive returns [doc:HA-latest].