Investors risk future disappointment if the P/S falls to levels more in line with recent growth rates. The current share price may not be fair value unless recent medium-term conditions improve.

Despite Anhui Xinke New Materials Co.,Ltd's significant debt, it has a substantial cash reserve, virtually eliminating net debt. Yet, its weak performance in terms of a reported loss before interest, tax, and shrinking revenue may lead to concerns about its debt management competence.