KSQ

• Beneish M-Score = 3.4942. The M-Score is a composite designed to signal likely earnings manipulation; at -1.78 Beneish flagged US manipulators, but in Vietnam ~28% exceed that cutoff. This company ranks at the 98th percentile among Vietnamese peers and its M-Score rose by +5.37 year-over-year (the YoY trajectory is an additional cue).
• DSRI (Days’ Sales in Receivables Index) = 10.0000. DSRI measures receivables growth relative to sales; an extreme DSRI suggests receivables have grown much faster than sales or sales are being recorded without accompanying collectibility.
• Receivables outside the trade cycle = 95.6% of total assets (100th percentile). This check measures amounts classified as prepayments to suppliers, loans receivable and other long-term receivables rather than trade receivables; 95.6% indicates nearly all assets are in non-trade receivable categories.
• Three-year cash conversion (operating cash flow / net profit) = 19.31 (98th percentile). This metric shows profit is not converting into cash; a low percentage indicates earnings are not producing cash inflows.
• Earnings-quality component weaknesses: Receivables quality = 0/100, Margin quality = 0/100, Revenue quality = 0/100. These sub-scores indicate concerns about the sustainability and quality of reported revenue, margins and receivables.
• SGAI (Sales, General & Administrative expenses Index) = 5.1101. SGAI measures growth in SG&A relative to sales; a high SGAI can indicate unusual expense recognition patterns or cost behavior not in line with sales.

• Altman Z-Score = 20.03. The Z-Score is a bankruptcy-distance measure combining profitability, leverage, liquidity and activity; 20.03 places the company well inside the ‘safe’ zone on default risk.
• Piotroski F-Score = 7/9. The F-Score summarizes nine fundamental signals (profitability, leverage/liquidity, and operating efficiency); a 7 indicates generally strong fundamentals by that measure.
• Accruals quality = 100/100 and Cash-conversion subscore (within the Earnings Quality Score) = 100/100. The accruals metric measures the extent to which earnings are driven by accounting accruals versus cash; a perfect score suggests low accrual manipulation on that specific measure used in the earnings-quality model.
• AQI = 0.0000 and LVGI = 0.0470. AQI (Asset Quality Index) of zero in the Beneish components suggests no worsening in the proportion of long-term assets to total assets under that index, and LVGI (Leverage Index) near zero indicates modest leverage change per the Beneish inputs.

Ownership is highly concentrated among five individuals: Nguyễn Thị Định (21.5%) and four other individuals holding 16.7%, 16.7%, 16.7% and 13.3%. Concentrated insider ownership and a tightly held group structure increase the likelihood that related-party transactions, group financing or intra-group receivables appear in the financial statements; director-deal activity shows one sale registration for 702,000 shares (registered volume = -2.34% of shares outstanding) in the 2025-10-30 to 2026-10-30 window (registrations are intentions disclosed to the exchange, not executed trades).

• Compare the line items that make up 'receivables' and 'other long-term receivables' in the FY2025 balance sheet with the related-party note to identify prepayments to suppliers, loans receivable and intra-group balances.
• Reproduce operating cash flow / net profit for 2023–2025 from the consolidated cash flow statement and income statement to verify the three-year cash conversion ratio (19.31) and reconcile timing differences or non-cash items.
• Inspect the revenue recognition note and the schedule for ageing of receivables and related-party balances to see whether high DSRI (10.0000) is driven by new sales terms, delayed collections or reclassification to non-trade receivables.
• Examine the SG&A disclosure and its reconciliation to profit before tax to understand the drivers of SGAI = 5.1101 and whether SG&A contains transfers to related parties, capitalization, or one-off items.