TTH

• Elevated Beneish peer standing: M‑Score -0.2847 at the 92nd percentile versus Vietnamese peers — the company’s M‑Score is more aggressive than most local peers even though the US cutoff (-1.78) is not directly transferable.
• Year‑over‑year M‑Score increase: M‑Score rose by +0.75 year‑on‑year, signalling a notable change in the accounting signals compared with the prior year.
• High GMI and AQI: Gross Margin Index (GMI) = 3.4307 and Asset Quality Index (AQI) = 3.8239 — both unusually high and components that, in Beneish’s framework, can be associated with pressure on margins or with reclassification of assets.
• Low margin and revenue quality: Earnings‑Quality sub-scores for margin quality = 0/100 and revenue quality = 0/100, indicating reported margins and top‑line patterns fail internal quality tests used here.
• Weak cash conversion: Cash conversion score = 40/100 (and TATA = -0.0479) indicating operating cash flow trends lag earnings; Altman Z‑Score 2.68 (grey zone) amplifies the concern about financial stress.

• Accruals and receivables quality: Accruals quality = 100/100 and Receivables quality = 100/100 indicate low abnormal accruals and receivables behaviour by the measures used.
• Low DSRI and stable DEPI/LVGI: Days Sales in Receivables Index (DSRI) = 0.9662 (slightly lower than prior), DEPI = 0.9567 and LVGI = 0.4656 do not show extreme receivables inflation or inventory/long‑lived asset revaluation on these indices.
• No statutory or accumulated loss triggers: The FY2025 statements do not meet the statutory loss tests under Decree 155/2020 Art.120(1)(e) (amended), and accumulated retained earnings are not negative.

Ownership is moderately concentrated among individuals: Nguyễn Thanh Tùng 4.7%, Nguyễn Trịnh Chung 4.3% and Nguyễn Trần Linh Chi 3.4%. No state controlling owner is indicated; director‑deal registrations were not provided (remember registrations, if present, are intentions recorded with the exchange).

• Compare FY2025 note(s) on receivables and prepayments: verify the line items and amounts that constitute the 0.1% of total assets classified as receivables outside the trade cycle and reconcile them to the related‑party schedules, loans receivable and other long‑term receivables.
• Reconcile operating cash flow to reported profit: in the cash flow statement and the auditor’s notes, trace the components that produce the TATA = -0.0479 and the 40/100 cash‑conversion score (check major non‑cash adjustments and working capital movements).
• Examine revenue recognition notes and segment/margin disclosures: review accounting policies and contracts disclosed to understand drivers behind margin quality = 0/100 and revenue quality = 0/100, and compare revenue by customer/segment to assess concentration or unusual reclassifications.
• Confirm statutory loss and equity lines: verify the retained earnings, parent‑company profit (two consecutive net losses noted to FY2025), and the explicit statements/tests responding to Decree 155/2020 Art.120(1)(e) to confirm that none of the statutory loss triggers were met in the audited FY2025 statements.