HCD

• Beneish M-Score -1.0159 (88th percentile vs VN peers): measures the likelihood of earnings manipulation relative to peers; the company sits well above most Vietnamese peers and the M-Score rose by +1.78 year-over-year (the direction of accounting change matters in VN context).
• Days Sales Receivable Index (DSRI) = 1.8408: measures growth in receivables relative to sales; a DSRI well above 1.0 indicates receivables are growing faster than revenue.
• Asset Quality Index (AQI) = 1.7862: measures the rise in non-current and other assets (prepayments, long-term receivables) relative to assets; a high AQI suggests increased capitalisation or classification of costs as assets.
• SG&A Index (SGAI) = 1.5576: measures growth in selling, general & administrative expenses relative to sales; a high SGAI can signal discretionary expense recognition or cost capitalisation pressure.
• Earnings-quality overall 20.5/100 with Cash conversion 0.0/100 and Receivables quality 0.0/100: the three-year operating cash flow / net profit ratio is weak (0.15; 25th percentile), indicating profit is not converting into cash.
• Receivables outside the trade cycle = 14.1% of total assets (86th percentile): measures prepayments, loans receivable and other non-trade receivables; the company has a relatively high proportion of such receivables among Vietnamese peers.
• Altman Z-Score 2.46 (grey zone): measures distance to bankruptcy; the score is neither clearly safe nor in immediate distress.
• Piotroski F-Score 3/9: measures fundamental strength (profitability, leverage, liquidity, and operating efficiency); 3/9 indicates weak fundamentals.

• Total accruals (TATA) = 0.0989: measures total accruals scaled to assets; a relatively low TATA suggests reported earnings are not heavily supported by large accruals in the period measured.
• SGI = 0.9091 (sales growth index <1): measures sales growth; a value below 1 indicates sales contracted year-over-year which can reduce incentives to aggressively inflate revenue recognition.
• DEPI = 0.9320: the depreciation index below 1 indicates depreciation expense did not fall relative to prior period (less indication of slower depreciation to boost profit).
• No accumulated losses; owner's equity (excluding minority interest) positive and parent net loss count = 0 years: the balance sheet shows retained earnings are not negative and the parent did not report recent statutory parent losses.

Ownership is concentrated among individuals: Nguyễn Đức Dũng 20.5%, Nguyễn Phương Đông 13.2%, Đinh Quang Chiến 9.7%, Phùng Chí Công 6.3% and Lâm Thị Yến 4.7% (top five = 54.4%). This degree of concentrated individual ownership and presence of large controlling shareholders can be relevant to related-party transactions and disclosures. Director-deal registrations show 1 purchase registration (no sale registrations) between 2025-10-30 and 2026-10-30; registrations are intentions reported to the exchange, not executed trades.

• Compare the FY2025 balance sheet line(s) for 'receivables — other', 'long-term receivables' and 'prepayments to suppliers' with the related-party disclosures and the notes that break down these items to verify the 14.1% of total assets figure.
• Reconcile operating cash flows to net profit for 2023–2025 in the cash flow statement and the accruals note to confirm the three-year cash conversion ratio of 0.15 and identify major reconciling items (changes in working capital, non-cash items).
• Inspect the revenue recognition note and accounts receivable ageing schedule to check whether receivables growth (DSRI 1.8408) is tied to trade receivables or to non-trade items (advances, related-party loans).
• Read the auditor's report and the statutory loss test disclosures (Decree 155/2020 Art.120(1)(e) and the 2025 amendment references) and the equity/retained earnings lines to confirm that none of the statutory loss tests were met in the published audited statements.