The company's significant share price drop is likely due to falling revenues and lack of profits. Its poor five-year run, with shareholders facing a 9% annual loss, may signal long-term weakness, but contrarian investors might see a turnaround potential.

Investor skepticism about the company's ability to boost its revenue performance may explain the low P/S ratio. Despite forecasted growth aligning with the industry, unseen threats may be keeping the P/S low. Investors may fear near-term underperformance against forecasts.

Focused Photonics (Hangzhou)'s financial situation is concerning due to its use of debt. With a strained balance sheet and CN¥9.7m in negative free cash flow over the last year, it's a risky investment. Its future earnings will determine the health of its balance sheet.

The company's less optimistic revenue growth outlook, as compared to its industry peers, may contribute to its low P/S ratio. Investors might not see future growth prospects sufficient to warrant a higher P/S ratio. This may continue to limit the company's stock price unless conditions improve.