ADS

• Beneish M‑Score = -1.20 (measures a composite likelihood of earnings manipulation); 85th percentile versus Vietnamese peers and a year‑over‑year increase of +1.32 (the percentile and positive trajectory indicate more aggressive accounting relative to peers and a recent change).
• DEPI = 10.0000 (depreciation index; unusually high value suggests changes in depreciation policies or asset valuation timing versus prior year).
• Cash conversion (3‑year operating cash flow / net profit) = 0.14, 24th percentile (measures the extent to which reported profits convert into operating cash; a low ratio indicates profits are not producing cash).
• Earnings Quality Score = 47.6/100 with Revenue quality = 0.0/100 and Cash conversion = 0.0/100 (these component scores measure how much reported revenue and cash flows reflect underlying economic performance; very low scores on revenue and cash conversion are concerns).
• Altman Z‑Score = 1.51 (measures financial distress and distance to bankruptcy; 1.51 is in the conventional distress zone).
• Receivables outside the trade cycle = 16.4% of total assets, 88th percentile (this line—prepayments, loans receivable and long‑term receivables—measures non‑trade receivables as a share of assets; a high percentile indicates material non‑trade receivables).

• Receivables quality = 100.0/100 (measures collectability and composition of receivables; a top score suggests trade receivables are of higher quality).
• Accruals quality = 78.1/100 and TATA = 0.0548 (total accruals to total assets = 0.0548; these measure the extent and quality of accruals — here accruals are moderate and accruals quality is relatively strong).
• Piotroski F‑Score = 6/9 (measures nine fundamental signals of improving financial health; a 6 is a neutral‑to‑positive score indicating some healthy fundamentals).
• No accumulated losses and 0 years of parent net loss up to FY2025; owner's equity (excluding minority interest) is positive and none of the statutory loss tests under Decree 155/2020 (as amended) are met (these are facts about the published statements indicating the company meets statutory profitability/solvency triggers).

Ownership is moderately concentrated: the largest individual shareholder holds 13.4% (Vũ Huy Đông) and three other named shareholders hold between 5.2% and 5.9% each. Director/insider deal registrations over the last year show 6 purchase registrations and 0 sale registrations (net registered +5.04% of shares outstanding), which are intentions registered with the exchange, not executed trades.

• Compare the year‑on‑year movement in depreciation expense and note any changes in depreciation policy or useful lives in the fixed‑assets note to understand the DEPI = 10.0000.
• Reconcile operating cash flow to reported net profit in the cash flow statement and check the notes for large non‑cash adjustments or timing items that explain the cash conversion = 0.14 (3‑year).
• Inspect the schedule or note that details 'receivables and other receivables' (including prepayments, loans receivable and long‑term receivables) to verify the 16.4% of total assets reported as receivables outside the trade cycle.
• Review the auditor's report and the statutory notes that disclose whether any of the loss/delisting triggers under Decree 155/2020 (as amended) were met — the published statements indicate none of those statutory loss tests are met for FY2025.