SRF

• Beneish M-Score = -0.8622. The M-Score measures the likelihood of earnings manipulation using eight financial ratios; this company is at the 89th percentile versus Vietnamese peers (higher percentiles indicate more aggressive accounting) and the M-Score increased by +1.13 year-over-year (the rise signals a material change in the accounting profile). Note: the -1.78 US cutoff is not directly transferrable to Vietnam; use the peer percentile and YoY movement.
• GMI (Gross Margin Index) = 2.4457. GMI > 1 indicates deterioration in gross margins year-over-year; this large value suggests meaningful margin pressure or margin-related accounting changes.
• AQI (Asset Quality Index) = 2.2759. AQI > 1 indicates rising intangible/fixed/other non-current asset proportions relative to sales, which can reflect capitalization or reclassification of costs.
• SGAI (Sales, General & Admin Index) = 1.6621. SGAI > 1 shows SG&A growing faster than sales, implying expense escalation or reclassification.
• TATA (Total Accruals to Total Assets) = 0.1116. Positive TATA indicates accrual-based earnings rather than cash-based—consistent with very weak cash conversion (see below).
• Altman Z-Score = 0.92 (distress zone). The Altman Z-Score measures short-to-medium-term bankruptcy distance; a score below 1.8 is commonly considered the distress zone, and 0.92 is low.
• Cash conversion (3-year operating cash flow / net profit) = -11.33 (3rd percentile among VN non-financials). This extreme negative value means reported profits are not converting to cash and places the company in the bottom 3% of peers on this metric.
• Earnings-Quality Score components — Cash conversion = 0.0/100; Margin quality = 0.0/100; Revenue quality = 0.0/100. These scores indicate weak cash and margin signals and questionable quality of reported revenues.
• Receivables outside the trade cycle = 5.9% of total assets (71st percentile). Although not extreme, 5.9% of total assets tied up in prepayments, loans receivable or other long-term receivables warrants scrutiny for related-party flows given Vietnamese group practices.

• Receivables quality = 100.0/100. This subscore and the relatively moderate 5.9% of assets in receivables/out-of-cycle items suggest receivables disclosures are not an immediate accounting red flag by the scoring model.
• DSRI (Days Sales Receivable Index) = 0.8400. DSRI < 1 implies receivables are not growing faster than sales year-over-year, consistent with the high receivables-quality score.
• DEPI (Depreciation Index) = 0.7994. DEPI < 1 indicates accumulated depreciation is growing relative to gross PP&E (i.e., no sudden slowing of depreciation to inflate profits).
• LVGI (Leverage Index) = 1.0051. LVGI close to 1 implies leverage hasn't materially increased year-over-year per the Beneish components.

Ownership is concentrated: three institutional shareholders together hold 58.0% (Taisei Oncho 25.1%, Sanyo Việt Nam 20.1%, Tổng Công ty Thủy sản Việt Nam 12.8%). A further 10.1% is held by two named companies/individuals (Nguyễn Khoa Đăng 5.1%, Transimex 5.0%). Director-deal registrations between 2025-10-30 and 2026-10-30 show 3 sale registrations (1,614,700 shares) and 8 purchase registrations (5,012,000 shares, one without volume); these are exchange-registered intentions, not executed trades.

• Compare the FY2025 cash-flow-from-operations line and the notes on cash flows (direct/indirect) with the profit-and-loss to reconcile the 3-year cash conversion ratio (operating cash flow / net profit = -11.33).
• Inspect the notes/schedule for 'long-term receivables', 'prepayments to suppliers' and 'loans receivable' to reconcile the 5.9% of total assets reported as receivables outside the trade cycle and to identify related-party counterparties.
• Review the accounting policy and fixed-asset note for depreciation and capitalization (DEPI = 0.7994 and AQI = 2.2759) to see whether costs were capitalized or reclassified in FY2025.
• Check the auditor’s report and the statutory loss disclosures (Decree 155/2020 Art. 120(1)(e), as amended) to confirm the published statement that none of the statutory loss tests were met for FY2025.