HMH

• Beneish M-Score -1.622 (77th Vietnam percentile): measures likelihood of earnings manipulation; the company scores higher (more aggressive) than 77% of Vietnamese peers and the M-Score rose by +0.08 year-over-year.
• GMI (Gross Margin Index) = 1.1638: measures deterioration in gross margins year-over-year; a value >1 indicates gross margins have declined.
• SGAI (Sales, General & Administrative Index) = 1.1197: measures growth in SG&A relative to sales; >1 suggests SG&A rising faster than sales.
• LVGI (Leverage Index) = 1.2120: measures increase in leverage; >1 indicates rising leverage year-over-year.
• TATA (Total Accruals to Total Assets) = 0.2034: measures accruals; a positive and relatively large TATA suggests earnings driven by accruals rather than cash.
• Earnings Quality overall 28.1/100 with Cash conversion 0.0/100 and Margin quality 0.0/100: operating cash flow is not converting reported profits and margins show low quality.
• Three-year cash conversion (operating cash flow / net profit) = -0.93 (14th percentile among VN non-financials): indicates profits have not been converting into cash and ranks low versus peers.
• Piotroski F-Score = 3/9: measures fundamentals (profitability, leverage/liquidity, and operating efficiency); a 3 is weak and signals soft operational/financial health.

• Receivables outside the trade cycle = 0.0% of total assets (3rd percentile): measures prepayments, loans receivable and long-term receivables; very low value suggests limited non-trade receivables exposure.
• Receivables quality = 100.0/100: the model finds receivables appear transparent and not materially distorted.
• Altman Z-Score = 5.30 (safe zone): measures bankruptcy distance; a score well above distress thresholds indicates a cushion on insolvency metrics.
• No accumulated losses; owner's equity (ex-minority) positive; and parent net loss count = 0 years up to FY2025: these statutory balance-sheet/earnings facts indicate the company is not reporting carried losses in the audited statements.
• Statutory loss tests (Decree 155/2020 as amended) — none met: the audited FY2025 statements do not trigger the exchange cancellation tests cited in Art. 120(1)(e).

Ownership is concentrated: the largest individual shareholder, Trần Quang Tiến, holds 11.1%, and two institutional/group-related entities (Cánh Đồng Xanh affiliates) hold 10.8% and 10.4%, with two other individuals at 7.6% each. Director-deal registrations (2025-10-30 to 2026-10-30) show 1 sale registration (498,900 shares) and 2 purchase registrations (1,000,000 shares) with a net registered volume of +3.62% of shares outstanding; these are registered intentions with the exchange, not executed trades.

• Compare the FY2025 statement of cash flows (operating activities) with the parent net profit line to verify the -0.93 three-year cash-conversion ratio and identify drivers of negative cash conversion.
• Inspect the notes to the financial statements for 'Receivables and Prepayments' and for schedules of loans to related parties to confirm the 0.0% receivables-outside-the-trade-cycle figure and any short-/long-term related-party balances.
• Review the notes on accruals and provisioning (including allowance for doubtful debts and inventory provisions) to reconcile the TATA = 0.2034 and assess the composition of accruals.
• Examine the equity and statutory disclosures (audited balance sheet and the statutory loss test reconciliations) to confirm there are no accumulated losses, owner’s equity is positive, and that none of the Decree 155/2020 (as amended) loss tests are met.