VRE

• Beneish M-Score -1.3412 and Vietnam peer percentile 83rd: the score is higher (more aggressive) than ~83% of Vietnamese non-financial peers; the YoY change of +0.62 shows a notable upward move in the score (Beneish components should be read individually).
• DSRI (Days Sales Receivable Index) = 1.4476: receivables/sales grew relative to prior year, which can indicate revenue recognition timing or slower collections.
• TATA (Total Accruals to Total Assets) = 0.1584: unusually high accruals (15.84% of assets) indicating earnings are supported by accrual accounting rather than cash flow.
• AQI (Quality of Accruals Index) = 1.1198 and LVGI (Leverage Index) = 1.2332: accrual quality deterioration and increased leverage versus prior period are flagged in Beneish components.
• Earnings-Quality sub-scores extremely low: Cash conversion 0.0/100 and Receivables quality 0.0/100 and Revenue quality 0.0/100 — indicating profits are not converting into cash, receivables composition or aging is concerning, and revenue reliability metrics are weak.
• Three-year cash conversion (operating cash flow / net profit) = 0.09 (23rd percentile): reported profits are not translating into operating cash (only 9% conversion), a common red flag for earnings sustainability.

• Altman Z-Score 4.87: places the company in the ‘safe’ zone for bankruptcy distance under the Altman model (higher distance from insolvency).
• Piotroski F-Score 5/9: a neutral score, with some improving and some weakening operating/financial fundamentals rather than clear deterioration.
• No accumulated losses and owner’s equity (ex. minority interest) positive: retained earnings are not negative and equity is positive on the balance sheet.
• Receivables outside the trade cycle = 2.1% of total assets (50th percentile): exposures such as prepayments, long-term receivables or loans to related parties are present but not unusually large relative to peers.

Ownership is concentrated: Sado holds 40.5% and Vingroup (VIC) 18.4%, together commanding a majority influence; several foreign institutional holders are present but much smaller (WP Investments III 4.9%, PYN 2.8%, RWC 2.0%). This structure implies group/controlling-shareholder influence over strategy and reporting consistent with common Vietnamese listed-group dynamics.

• Compare the FY2025 movements in trade receivables, long-term receivables, and prepayments with the related-party note(s) and schedule(s) in the financial statements to identify the composition of the 2.1% of assets classified as receivables outside the trade cycle.
• Reconcile operating cash flow to reported net profit in the consolidated cash flow statement and the cash-flow notes to trace why three-year cash conversion is 0.09 (low) and to identify major non-cash adjustments or timing items.
• Inspect the notes on revenue recognition and the accounts-receivable ageing table (or note) to assess the drivers behind DSRI = 1.4476 and the 0.0/100 revenue/receivables quality scores.
• Review the consolidated statement of changes in equity and the auditor’s report for any emphasis-of-matter or qualification, and confirm the statutory loss test disclosures — the FY2025 audited statements show none of the statutory loss-cancellation tests were met.