A32

• Beneish M-Score -0.9611 (88th percentile vs Vietnamese peers): measures a composite likelihood of earnings manipulation based on eight ratios; the company ranks high (more aggressive accounting) among Vietnamese peers and the M-Score rose by +1.80 year-over-year, signalling a material change in accounting signals.
• DSRI 1.5029: Days Sales Receivable Index above 1.0 measures growth in receivables relative to sales — this suggests receivables or revenue recognition have grown faster than sales, which can signal revenue recognition pressure.
• TATA (Total Accruals) 0.2170: measures accruals relative to total assets — a positive 21.7% indicates sizeable accruals, consistent with low cash conversion and potential earnings not supported by cash.
• Earnings Quality 15.2/100 with Cash conversion 0.0/100 and Receivables quality 0.0/100: these scores measure how much reported profit converts to cash and the composition/timing of receivables; both effectively zero indicate that reported profits have not produced operating cash and receivables may be non-standard or timing-shifted.
• Cash conversion (3-year operating cash flow / net profit) 0.15 (24th percentile): over three years only 15% of reported profit has converted into operating cash flow, low relative to peers and consistent with the low cash-conversion score.
• Receivables outside the trade cycle 0.9% of total assets (34th percentile): measures prepayments, loans receivable and other long-term receivables — non-trade receivables are present and not trivial in size for the peer group, which can complicate revenue/asset quality assessment.

• GMI 0.9618: Gross Margin Index below 1.0 measures that gross margin has not deteriorated year-over-year (values <1 suggest improving gross margins), which can be a stabilising factor for earnings quality.
• SGAI 0.7489: Sales, General & Administrative expenses Index below 1.0 indicates SGA expense growth has been slower than sales, a sign of operating leverage rather than expense inflation.
• DEPI 1.0000 and LVGI 0.9541: Depreciation Index near 1.0 (DEPI) and low long-term growth in gross margin volatility (LVGI <1) indicate no large, obvious changes in depreciation policy or asset-life manipulation in the reported ratios.
• No accumulated losses; owner’s equity (excluding minority interest) positive; and zero consecutive years of parent net loss up to FY2025: statutory-accounting results show retained earnings positive and the parent company profitable in the latest year(s), which meet standard balance-sheet health indicators.

The ownership is concentrated: Bộ Quốc Phòng (state) holds 51.0% controlling ownership. The next-largest holders are individuals (2.7%, 2.7%, 2.5%, 1.4%). This state majority stake implies strategic or non-market objectives may influence accounting or related-party activity; no director-deal registrations were provided in the data, and no group/affiliate listing structure was supplied for further context.

• Compare the company’s FY2025 operating cash flow and the notes to the cash-flow statement with the profit-and-loss note to reconcile why three-year cash conversion is only 0.15.
• Inspect the receivables and other receivables schedules (notes to trade receivables, loans and prepayments) to quantify the 0.9% of total assets classified as receivables outside the trade cycle and identify counterparties and related-party disclosures.
• Review the accruals and provisions line and its explanatory note to understand the components contributing to TATA = 0.2170 (total accruals / total assets).
• Check the revenue recognition policies and the turnover details (sales by segment/customer) disclosed in the revenue note to assess drivers of DSRI = 1.5029 and whether growth in receivables is concentrated in particular customers or related parties.