SD7

• Beneish DSRI = 1.4105: measures days-sales-in-receivables index (a rising DSRI suggests receivables are growing faster than sales); a value >1.0 is a signal of slower collections or extended credit.
• Receivables outside the trade cycle = 18.5% of total assets (90th percentile among Vietnamese non-financials): this line includes prepayments to suppliers, loans receivable and long-term receivables and is unusually large relative to peers.
• Earnings Quality overall = 25.5/100 with Cash conversion = 0.0/100 and Receivables quality = 0.0/100: these scores indicate weak cash backing for reported earnings and poor quality of receivables as reported vs peers.
• Altman Z-Score = 0.82 (distress zone): this Z-Score measures distance to default based on working capital, retained earnings, EBIT and market/book factors and is in a range historically associated with financial distress.
• SGI = 1.4152 (Beneish): sales growth index >1 indicates elevated sales growth which can increase incentives or pressure to manage earnings; paired with DSRI it raises a flag about growth financed by receivables.
• LVGI = 0.9573 and DEPI = 0.8818: DEPI <1 suggests lower depreciation expense relative to prior period (could reflect policy changes or asset mix); LVGI <1 indicates asset liquidation or lower leverage of gross margin — both warrant disclosure review.

• Beneish GMI = 0.8294: the gross margin index <1 measures gross margin improvement year-over-year, which typically signals improving operating profitability rather than erosion.
• Beneish AQI = 0.8354: the asset quality index <1 suggests the company’s proportion of intangibles/long-term items decreased relative to assets, consistent with improved reported asset quality.
• TATA = 0.0329 (total accruals to total assets): a relatively small positive accrual ratio indicates accruals are not excessively large in level terms.
• Piotroski F-Score = 6/9: indicates neutral-to-healthy fundamentals on profitability, leverage/liquidity, and operating efficiency dimensions (not extreme weakness).
• No accumulated losses and owner’s equity (excluding minority interest) is positive; parent reported net loss count = 0 consecutive years to FY2025 — the statutory loss thresholds that trigger delisting on HOSE/HNX do not apply because the company trades on UPCoM.

Ownership is concentrated: an individual, Nguyễn Hữu Doanh, holds 41.4% and an affiliated institutional holder (Sông Đà 7) holds 34.8% of S72 (listed as significant influence). The next largest holder is Công ty Cổ Phần Thủy Điện Cao Nguyên - Sông Đà 7 at 23.6%, with other individuals holding smaller stakes (7.5%, 4.9%). Such concentration suggests control/influence is focused among a few related parties and requires attention to related-party transactions disclosures.

• Compare the 2025 line(s) for 'receivables and other long-term receivables' and 'prepayments to suppliers' in the notes to the balance sheet with the trade receivables note to identify composition and related-party counterparties.
• Reconcile the cash flow from operations in the statement of cash flows with reported profit and the TATA (total accruals) calculation — check the working-capital movements supporting Cash conversion = 0.0/100.
• Inspect the depreciation policy note and fixed-asset schedules to explain DEPI = 0.8818 (changes in depreciation rates, useful lives, revaluations or disposals).
• Review the related-party transactions and loans receivable / receivable from affiliates schedules to see whether large receivable or prepayment balances are intra-group or to significant shareholders (given concentrated ownership).