CPA

• Beneish M‑Score -1.404 (81st percentile versus Vietnamese peers). The M‑Score measures statistical likelihood of earnings manipulation features; this company is in the top quintile of aggressive accounting signals among Vietnamese listed peers. The M‑Score moved up by +2.79 year‑over‑year, indicating a material shift in the accounting pattern over the last year.
• DSRI (Days’ Sales in Receivables Index) = 1.5834. DSRI measures whether receivables are growing faster than sales (a value >1 suggests receivables growing disproportionately).
• GMI (Gross Margin Index) = 3.5673. GMI >1 indicates gross margins deteriorated year over year (this is a strong deterioration signal here).
• LVGI (Leverage Index) = 1.1503. LVGI >1 shows leverage increased relative to assets and sales, consistent with rising balance‑sheet risk.
• TATA (Total Accruals to Total Assets) = -0.1384. A negative TATA indicates large negative accruals (cash flows exceeding earnings) in the year measured; it is one of the Beneish components affecting the composite score.
• Receivables quality = 0.0/100 and Revenue quality = 0.0/100 in the Earnings Quality breakdown. These scores indicate major weaknesses in how revenues and receivables appear to convert into reliable cash or meet quality tests used in the scoring.
• Cash conversion (part of Earnings Quality) = 24.0/100. This low score shows poor conversion of accounting profit into operating cash flow.
• Earnings pattern: net loss at the parent in 9 consecutive years up to FY2025 and the audited statements show losses in each of the latest 3 years (relevant to statutory loss tests).
• Accumulated losses = 0.87x paid‑in capital. This shows cumulative losses are large relative to contributed capital (87% of paid‑in capital).
• Altman Z‑Score = -1.74 (distress zone). The Altman Z‑Score is a multi‑factor score intended to signal bankruptcy distance; a negative value in the distress zone indicates low distance from historical bankruptcy profiles.

• Accruals quality = 100.0/100. This subscore indicates reported accruals in the income statement are internally consistent and do not, by this metric, suggest large abnormal accrual distortions in the measured period.
• Piotroski F‑Score = 5/9 (neutral). The F‑Score assesses nine fundamental signals (profitability, leverage/liquidity, operating efficiency); a 5 suggests mixed fundamentals rather than a clear deterioration or clear improvement.
• Owner's equity (excluding minority interest) is positive. Despite accumulated losses, the parent equity base remains positive on the balance sheet.
• SGAI (Sales, General & Admin index) = 0.3315. SGAI <1 implies SGA expense did not grow faster than sales (or fell relative to sales) in the period measured.

Ownership is highly concentrated: three individuals each hold 24.9% (totaling 74.7% between them), and a state shareholder (Ủy Ban Nhân Dân Tỉnh Đắk Lắk) holds 20.2%. This structure implies control is concentrated among a few large insiders and a provincial-state owner; director‑deal registrations were not provided (note that any registrations recorded with the exchange would be declarations of intent rather than executed trades).

• Compare the year‑over‑year change in trade receivables and note disclosures for 'prepayments to suppliers, loans receivable and other long‑term receivables' to reconcile the DSRI (1.5834) with the receivables‑outside‑trade‑cycle figure (0.7% of total assets).
• Review the revenue recognition note and the schedule of related‑party transactions to understand the drivers of Revenue quality = 0.0/100 and the low Revenue and Receivables quality subscores.
• Reconcile cash flow from operations to net income in the cash‑flow statement and the notes to verify the Cash conversion score (24.0/100) and the TATA figure (‑0.1384).
• Examine the audited statement lines and auditor's report showing losses in each of the latest 3 years, and verify the accumulated losses equal 0.87x paid‑in capital and the nine consecutive years of parent net losses through FY2025.