SMC

• High Beneish peer ranking: M-Score = -0.6072, Vietnam peer percentile = 90th (this measures a composite of accruals and financial ratios linked to earnings manipulation risk; higher percentile means more aggressive accounting vs VN peers).
• Large year-over-year M-Score change: ΔM-Score = -1.95 (the magnitude suggests a recent shift in the accounting profile; consecutive-year M-Scores have low serial correlation, so this is a secondary cue rather than a definitive label).
• Days’ Sales Receivable Index elevated: DSRI = 1.1802 (measures receivables relative to sales; >1 can indicate receivables growing faster than sales).
• Accrual-related and margin concerns in earnings-quality: Cash conversion = 0.0/100 and Margin quality = 0.0/100 (cash-generation and reported margin sustainability score very poorly).
• Receivables quality low: Receivables quality = 24.0/100 and 'receivables outside the trade cycle' = 1.6% of total assets (45th percentile) – suggests a material portion of receivables are prepayments, loans receivable or long-term receivables rather than trade receivables.
• Altman Z-Score in distress zone: Z-Score = 1.51 (this canonical score measures distance to bankruptcy; values below ~1.8 are commonly flagged as 'distress').

• Very high revenue-quality score: Revenue quality = 99.1/100 (this measures the portion of revenue supported by cash flows and low one-off adjustments).
• Accruals quality reasonable: Accruals quality = 75.5/100 (suggests reported accruals are not extreme relative to peers).
• No accumulated statutory losses and parent profit track record: Accumulated losses = none; Net loss (parent) = 0 consecutive years up to FY2025, and owner's equity (excluding minorities) is positive (these are factual signs of not meeting the statutory loss triggers).
• SGAI and DEPI not extreme in the manipulation palette: SGAI = 1.0574 (selling, general & admin expense growth modest) and DEPI = 0.9002 (depreciation index not showing obvious slowdown of depreciation policy).

Top shareholder concentration: Hanwa Company Limited holds 19.6% and the next largest individual is Phạm Hoàng Anh at 8.1%; other named individuals hold 3.2% and 2.3%. Insider activity filings show 4 sale registrations and 6 purchase registrations between 2025-10-30 and 2026-10-30 (total registered volumes where disclosed: sales 7,900,000 shares, purchases 17,900,000 shares), indicating shareholder and insider registration activity but registrations are intentions disclosed to the exchange, not executed trades.

• Compare the 'receivables outside the trade cycle' line (prepayments to suppliers, loans receivable and other long-term receivables) in the FY2025 notes with the balance-sheet total to confirm the 1.6% of total assets figure and inspect related-party descriptions.
• Review the related-party transactions note for FY2025 to reconcile any loans receivable, advances to suppliers or non-trade receivables and confirm whether those balances are with group entities or third parties.
• Open the auditor's report and the statutory-loss schedule in the audited FY2025 financial statements to confirm which statutory loss tests were or were not met (the published statements report none met).
• Examine the exchange disclosures/schedule of insider registrations for 2025-10-30 to 2026-10-30 to verify the 4 sale and 6 purchase registrations, the registrants named, and the disclosed volumes.