The company's high debt level relative to its market capitalization implies potential shareholder dilution. The negative EBIT and revenue drop over the past year raise concerns about the company's debt management. The stock is deemed very risky.

Huafu Fashion, despite recent returns, raises concern due to its declining revenue and stock prices over the last three years, casting doubt on its business stability.

Huafu Fashion's low P/S ratio hints at investor caution over its future revenue stability and potential risks, which could have influenced a lower selling price for its shares.

Given Huafu Fashion's high debt level, shrinking revenue, and negative EBIT, the situation is seen as risky and concerning. The company would have to improve its financial performance and strengthen its balance sheet to alleviate these risks.