NAG

• Beneish M-Score -1.3507: a model designed to flag likely earnings manipulation; the company sits at the 82nd percentile among Vietnamese peers (higher percentile = more aggressive accounting vs VN peers) and the M-Score rose by +0.76 year-over-year (the change signals a material trajectory even though the US -1.78 cutoff is US-calibrated).
• Beneish components pointing to pressure and quality concerns: GMI 1.2231 (measures gross-margin deterioration; >1 indicates gross margins worsening), AQI 1.3156 (asset quality index; >1 signals a shift toward less conservative asset capitalization), SGI 0.6782 (SGA index <1 indicates SGA expenses fell relative to sales — context-dependent), DSRI 1.0945 (days sales receivables index >1 indicates receivables growing faster than sales), DEPI 1.0666 (depreciation index >1 indicates lower reported depreciation expense relative to prior period), LVGI 1.0300 (leverage index >1 indicates rising leverage), TATA 0.1187 (total accruals to assets; positive but modest accruals).
• Very poor cash conversion: Cash conversion (operating cash flow / net profit, 3-year) = -2.61, ranked in the 8th percentile among Vietnamese non-financials (low = profit not turning into cash). This shows reported profits have not been accompanied by operating cash inflows over three years.
• Weak earnings-quality sub-scores: overall Earnings Quality Score 40.8/100 with Cash conversion 0.0/100 (critical weakness) and accruals quality 55.0/100, suggesting earnings are supported by accounting items rather than cash.
• Low Piotroski F-Score: 2/9, indicating weak recent fundamentals across profitability, leverage/liquidity, and operating efficiency signals.
• Altman Z-Score 1.84 (grey zone): this measures distance to bankruptcy using a blend of profitability, leverage, liquidity and sales—1.84 places the company in an intermediate risk band rather than a safe zone.
• Receivables and non-trade receivables: 'Receivables outside the trade cycle' = 5.1% of total assets (68th percentile). This captures prepayments to suppliers, loans receivable and other long-term receivables and suggests a meaningful portion of assets are non-trade receivables.

• High revenue-quality sub-score: Revenue quality = 85.9/100, which indicates reported revenue patterns (growth, persistence and relation to cash) score well relative to other components.
• No accumulated losses and positive equity: accumulated losses = none (undistributed earnings not negative) and owner's equity (without minority interest) is positive—these are statutory balance-sheet facts.
• Statutory loss tests: none of the statutory loss tests under Decree 155/2020 Art.120(1)(e) as amended by Decree 245/2025 were met in the audited FY2025 statements (a fact about the published statements).
• Some Beneish components not extreme: TATA (total accruals to assets) = 0.1187 (positive but not extremely high) and LVGI = 1.0300 (leverage rising slightly); these are not as large as some other red flags and suggest accruals and leverage increases are measurable but not extreme.

Top ownership is concentrated in individuals: Nguyễn Đức Khả 25.5% and Nguyễn Thị Huyền Thương 14.8% (top two = 40.3% combined). Remaining listed holders are individuals with much smaller stakes (next largest 4.8%, then 0.1% holdings). Director-deal registrations recorded between 2025-10-30 and 2026-10-30 show 1 sale registration (103,000 shares, 1 registrant) and 6 purchase registrations (5 registrants; 8,308,309 shares registered, with one registration missing a volume) — these are registered intentions disclosed to the exchange, not executed trades.

• Compare the three-year operating cash flow and net profit lines in the consolidated cash flow statement and income statement to confirm the -2.61 cash-conversion ratio and to trace which year(s) drive the negative conversion.
• Inspect the notes/schedule on receivables and related-party balances to identify the composition of the 5.1% 'receivables outside the trade cycle' (prepayments to suppliers, loans receivable, long-term receivables) and check counterparty names and maturities.
• Review the fixed-asset and intangible-asset notes to reconcile changes that feed AQI = 1.3156 (asset reclassification, capitalized costs, impairment or additions) and the DEPI = 1.0666 depreciation pattern.
• Check the statement of changes in equity and retained-earnings note to confirm there are no accumulated losses and to verify owner’s equity (excluding minority interest) is positive as stated.