VE3

• Beneish M‑Score = 0.822 (95th percentile vs VN peers; YoY change +2.21). The M‑Score aggregates eight indicators (DSRI, GMI, AQI, SGI, DEPI, SGAI, LVGI, TATA) to screen for aggressive accounting; a higher score signals greater divergence from peers in this Vietnamese sample.
• Cash conversion (three‑year operating cash flow / net profit) = -84.30 (0th percentile). This metric measures whether reported profits are turning into operating cash; a strongly negative value indicates profits have not converted into cash over three years.
• Altman Z‑Score = 0.87 (distress zone). The Z‑Score combines working capital, retained earnings, EBIT, market value of equity and sales to assess distance to bankruptcy; 0.87 is well within the distress range.
• Piotroski F‑Score = 3/9. The F‑Score is a set of nine binary tests of profitability, leverage/liquidity, and operating efficiency; a score of 3 indicates weak operational and financial fundamentals.
• Earnings‑quality components: Cash conversion = 0.0/100; Margin quality = 0.0/100; Revenue quality = 0.0/100. These sub-scores measure respectively conversion of earnings to cash, stability/quality of margins, and likelihood revenue is persistent/real. All three at zero point to concerns around profit quality and revenue sustainability.
• Total Accruals‑TATA = 0.0972 (component of M‑Score). TATA measures total accruals (net income less operating cash flow) scaled to assets; a positive value indicates accruals contributed to earnings rather than cash.
• AQI = 8.6827 (Asset Quality Index). AQI measures shifts toward less tangible or more illiquid assets (e.g., capitalized costs, long‑term receivables); a high AQI suggests more assets that are easier to manipulate or harder to convert to cash.

• Receivables‑outside‑trade‑cycle = 3.3% of total assets (58th percentile). This checks for prepayments, long‑term receivables and loans receivable; a modest 3.3% share is not unusually large within the Vietnamese sample.
• Receivables quality = 100.0/100. This score measures the reported receivables' apparent alignment with revenue recognition and collectability patterns; it indicates no obvious red flag in the trade receivables schedule.
• DSRI = 0.7830 and SGI = 0.9922. DSRI (days‑sales receivable index) below 1 suggests receivables relative to sales have not risen; SGI near 1 indicates sales growth is roughly flat, reducing one driver of manipulation risk tied to aggressive revenue recognition.
• No accumulated losses; owner's equity (excluding minority interest) is positive; parent profit has not shown consecutive-year net losses up to FY2025. These are balance‑sheet facts indicating the company is not showing statutory or balance‑sheet losses that some regulation uses as triggers.

Ownership is highly concentrated: one individual (Lê Thị Hồng Thủy) holds 70.5% and three other named shareholders hold single‑digit stakes (7.8%, 5.5%, 2.9%, 2.7%). Director‑deal registrations in the last 12 months show 2 purchase registrations (200,000 shares registered across 2 traders, one registration without a volume) and 0 sale registrations; registrations are declarations of intent filed with the exchange, not executed trades.

• Compare the FY2025 statement of cash flows (operating cash flow line) with the consolidated net profit to verify the -84.30 three‑year cash conversion calculation and to inspect major non‑cash adjustments.
• Inspect the notes and schedules supporting 'receivables' and 'other long‑term receivables' to confirm the 3.3% of total assets composition (identify prepayments to suppliers, loans receivable, related‑party balances and maturities).
• Reconcile total accruals: compare net income, depreciation/amortisation notes and net change in operating working capital to reproduce TATA = 0.0972 and to identify which accrual components (inventory, receivables, payables) drive it.
• Read the auditor's report and the statutory loss test lines (Decree 155/2020 Art.120(1)(e) as amended) in the audited financial statements to confirm that none of the statutory loss/delisting criteria for FY2025 are met.