LM3

• Beneish M-Score 6.2096 (measures likelihood of earnings manipulation via eight ratios); Vietnam peer percentile 100th — highest aggressiveness vs local peers; YoY change +8.39 (the M-Score moved sharply year-over-year).
• DSRI 2.2478 (days-sales-in-receivables index; elevated value can indicate revenue inflation or slower collections).
• GMI 10.0000 (gross margin index; >1 indicates deteriorating gross margins year-over-year).
• AQI 10.0000 (asset quality index; >1 indicates growing intangible/long‑lived or other non-current assets relative to total assets).
• SGI 0.3078 (sales growth index; <1 indicates falling sales year-over-year, here showing contraction).
• DEPI 0.8926 (depreciation index; <1 can signal slower depreciation or changes in useful lives).
• SGAI 2.4903 (sales, general & administrative expenses index; >1 indicates SGA rising faster than sales).
• TATA 0.0138 (total accruals to total assets; positive but small here — measures accrual-based earnings).
• LVGI 1.0760 (leverage index; >1 indicates increasing leverage).
• Earnings quality score 23.6/100 (low overall); accruals quality 94.5/100 (high accruals component score meaning poor accrual quality), but cash conversion 0.0/100, receivables quality 0.0/100, margin and revenue quality 0.0/100 (these zeros indicate very weak cash/receivables/margin/revenue quality relative to peers or thresholds used).
• Altman Z-Score −2.77 (measures bankruptcy distance; in the distress zone).
• Piotroski F-Score 2/9 (measures nine fundamentals; 2 indicates weak operational/financial fundamentals).
• Cash conversion (operating cash flow / net profit, 3 years) 5.62 (94th percentile among Vietnamese non-financial companies) — very low cash conversion: profits are not converting into operating cash.
• Receivables outside the trade cycle 19.3% of total assets (89th percentile) — a large share of assets is in prepayments, loans receivable or other long‑term receivables rather than normal trade receivables.
• Accumulated losses 3.65× paid-in capital; owner’s equity (excluding minority interest) is negative — balance-sheet erosion.
• Net loss (parent profit) in 0 consecutive years up to FY2024 — the parent company’s reported profit/loss pattern in the statutory line. Note: the statements meet statutory loss conditions for exchange cancellation on HOSE/HNX, but the company trades on UPCoM where that listing-rule cancellation does not apply.
• Director-deal registrations (2025-10-30 to 2026-10-30): four sale registrations (4 registrants; 1,330,000 shares; one registration without a volume) and one purchase registration (1 registrant; volume not stated) — these are registered intentions, not executed trades.

• The TATA (total accruals to total assets) is 0.0138 (measures accruals relative to assets); while the accruals-quality component is rated poorly overall, the raw TATA number is not extremely large in absolute terms, suggesting accruals are measurable but not enormous relative to assets.
• SGI 0.3078 (sales growth index) <1 indicates falling sales; combined with GMI and SGAI this can reflect conservative revenue recognition or contracting operations rather than aggressive expansion — a contextual signal rather than proof of manipulation.
• The M-Score components are transparent here: all component values are provided (DSRI, GMI, AQI, etc.), which allows direct inspection of which ratios drive the M-Score rather than relying solely on the composite. This transparency is useful for follow-up verification.

Ownership is concentrated among individuals: top five shareholders are Nguyễn Tiến Thành 15.1%, Doãn Thanh Tuấn 10.2%, Nguyễn Đức Thịnh 9.7%, Đỗ Chu Đạt 6.3% and Đinh Tiến Thành 5.7%. Director-deal registrations show insider intentions to sell (four sale registrations) and one purchase registration in the 12-month window — registrations are disclosed intentions, not evidence of executed trading.

• Compare the three-year operating cash flow and parent net profit lines in the consolidated cash-flow statement and note the operating cash flow / net profit ratio used to compute the 5.62 cash-conversion figure.
• Reconcile 'receivables outside the trade cycle' (prepayments, loans receivable, long-term receivables) with the notes to receivables and related‑party transactions to verify the 19.3% of total assets figure.
• Inspect the equity note and the statement of changes in equity to confirm accumulated losses = 3.65× paid-in capital and the negative owner’s equity (excluding minority interest).
• Review the management discussion and accounting-policy notes supporting AQI, DEPI and SGA treatment (asset additions, depreciation methods/changes and SGA expense composition) to understand drivers of AQI 10.0000, DEPI 0.8926 and SGAI 2.4903.