KKC

• Beneish M‑Score = -0.7884 (measures the likelihood of earnings manipulation using eight ratios); company ranks at the 89th percentile among Vietnamese peers (higher = more aggressive accounting vs VN peers) and M‑Score rose by +1.24 year‑over‑year (an upward trajectory in the model’s signal). Note: the -1.78 US cutoff is not directly calibrated to Vietnam; peer percentile and YoY change are emphasized.
• Earnings‑Quality = 25.7/100 (an aggregate measure of accruals, cash conversion, receivables, margins and revenue quality); specifically accruals quality = 0/100 and cash conversion = 0/100, indicating reported profit is not supported by cash flows or clean accrual metrics.
• Cash conversion (operating cash flow / net profit, 3‑year) = -2.14, ranked in the 9th percentile among Vietnamese non‑financial companies (measures whether reported profits convert into cash; a low/negative value suggests profits have not translated into cash).
• Altman Z‑Score = 1.29 (measures distance to bankruptcy using balance‑sheet and earnings inputs); this falls in the model’s distress zone, signalling elevated insolvency risk by that metric.

• Receivables outside the trade cycle = 0.1% of total assets (9th percentile among Vietnamese peers) — a low ratio of prepayments/long‑term receivables/loans receivable outside normal trade, reducing concern about off‑balance‑sheet receivable buildup.
• Receivables quality = 100.0/100 (measures whether receivables appear high‑risk or manipulated); the company scores maximally on this component.
• Revenue quality = 56.7/100 (a moderate score measuring persistence and cash support for revenue) and LVGI = 1.3243 (sales growth volatility index — part of Beneish inputs) do not show extreme revenue anomalies.
• No accumulated losses and owner's equity (ex‑minority) is positive; statutory loss tests under Decree 155/2020 (as amended) are not met in the audited statements — these are explicit facts from the published financials.

Ownership is highly concentrated: Công ty Cổ Phần Tập Đoàn T&d Group holds 85.7% (institutional majority). The remaining top individuals each hold small stakes (2.2%, 0.1%, 0.1%, 0.1%). This dominant majority position implies group control and potential related‑party dynamics characteristic of Vietnamese listed groups.

• Compare FY2025 operating cash flow and parent net profit in the cash flow statement and the notes to reconcile the 3‑year cash conversion ratio (operating cash flow / net profit = -2.14).
• Inspect the notes for 'receivables', 'prepayments to suppliers', and 'loans receivable' to confirm the composition that produces receivables outside the trade cycle = 0.1% of total assets.
• Review the related‑party transactions note and any schedules of balances with group companies to assess whether large intercompany balances, guarantees or prepayments could explain weak cash conversion and the M‑Score components (e.g., SGAI = 3.5304, TATA = 0.9236).
• Verify the statutory loss test disclosures and the statement of changes in equity to confirm 'no accumulated losses' and that none of the Decree 155/2020 (as amended) loss triggers are met in the audited annual statements.