VMD

• Beneish M-Score -0.1448 (93rd percentile vs Vietnamese peers). The M-Score aggregates multiple manipulation-related ratios; here it places the company in the top decile of aggressive accounting relative to Vietnam peers and has moved up by +2.86 year-over-year.
• AQI (Abnormal Accruals Index) 8.2790. This component is very large and drives the M-Score upward, indicating unusual accrual patterns relative to the model's expectation.
• Receivables and non-trade receivable-like items 73.2% of total assets (99th Vietnam percentile). The Vietnamese 'receivables outside the trade cycle' check shows a very large share of assets tied up in prepayments, loans receivable and other long-term receivables rather than inventory or trade receivables.
• Cash-conversion weakness: three-year operating cash flow / net profit = 1.62 (68th percentile). Within the earnings-quality composite cash conversion scored 19.9/100, signalling profits are not converting strongly into operating cash flow.
• DEPI (Depreciation index) 1.2129 (>1). A DEPI above 1 indicates depreciation policies or useful lives that produce lower reported depreciation this year versus the prior year (lengthening lives or reducing depreciation), which can inflate reported margins.
• Margin-quality 0.0/100 in the earnings-quality score. The margin-quality subscore is at the bottom of the scale, flagging deterioration or inconsistency in margins versus peers or history.
• Altman Z-Score 0.70 (distress zone). This numeric score indicates low bankruptcy distance under the Altman multi-factor framework.

• Accruals quality 94.1/100 and TATA (Total Accruals to Assets) 0.0147. These figures show low total accruals relative to assets and high-quality accrual reporting by that metric.
• Receivables quality 100.0/100 in the earnings-quality composite. Despite the large quantum of receivable-like items (73.2% of assets), the receivables-quality subscore rates the composition/timing aspects highly by the scoring method used.
• DSRI 0.2432 (Days' Sales Receivable Index well below 1). A DSRI materially below 1 typically indicates receivables are shrinking relative to sales rather than being inflated.
• SGI 0.6505 (<1) and SGAI 0.5366 (<1). Sales growth index below 1 indicates sales are contracting versus prior year, and SGAI below 1 indicates relatively lower selling/admin expense growth, which can reduce pressure to capitalize expenses.

Ownership is concentrated: institutional Vimedimex 2 holds 45.3% and state-related Tổng Công ty Dược Việt Nam holds 10.2%; three named individuals together hold ~20.2% (Lê Xuân Tùng 7.4%, Trần Kiên Cường 7.1%, Lê Đình Dương 5.7%). This structure implies a dominant institutional block plus meaningful insider individual stakes.

• Compare the line(s) or note showing 'other long-term receivables', 'loans and advances to related parties' and 'prepayments' in the FY2025 balance sheet and schedule these items as a percentage of total assets to confirm the 73.2% figure.
• Reconcile operating cash flows in the cash-flow statement with profit in the income statement and the accruals note to verify the three-year operating cash flow / net profit trend (reported 1.62) and the low cash-conversion subscore.
• Inspect the fixed-asset and depreciation policy note (useful lives, changes in estimate) for disclosures that explain DEPI 1.2129 and any changes in depreciation rates or capitalisation policy.
• Check the auditor's report and the statutory-loss disclosure section for the specific Decree 155/2020 (as amended) tests and confirm that none of the statutory loss triggers were met in the published FY2025 audited statements.