The company's balance sheet indicates potential for easy debt elimination. However, shrinking revenue and reported pre-tax loss raise concerns. Negative EBIT and declining revenue make the company a risky proposition.

The declining trend of the company's ROCE and the lack of significant sales growth despite reinvestment suggest that Hunan Changyuan LicoLtd might not be a potential multi-bagger. The market doesn't seem optimistic about these trends improving soon.