FINANCIAL STATEMENTS INTERPRETATION REPORT (For lenders/debtors) I. OVERVIEW 1. General Introduction Name: DAT XANH GROUP JOINT STOCK COMPANY Business Industry: Real Estate, Investment and Construction Headquarter office: 2W Ung Van Khiem, Binh Thanh, HCMC Operating Period: 2003 (est.) 2. Informations relating to Dat Xanh Group Founded in 2003 by Mr Luong Tri Thin, Dat Xanh Group (Formerly known as Dat Xanh Real Estate Construction and Service Co., Ltd.) has become one of the top professional real estate operators in Vietnam, providing customers nationwide with superior real estate products. After nearly 20 years of development, Dat Xanh Group is actively expanding the real estate industry scale, creating housing opportunities for hundreds of thousands of families across the country. Moreover, Dat Xanh group is also constantly contributing to changing the stature, quality, and appearance of Vietnam's urban area to become the leading private real estate and economic group in Vietnam and Southeast Asia. Those outstanding achievements come from professional and efficient fields of operation throughout Dat Xanh Group's real estate ecosystem, including: Real estate development, Real estate services, Construction & construction materials, Technology and Investment. 3. Business strategy Dat Xanh Group has adopted a new strategic approach that emphasizes diversification and expansion into various sectors, harnessing its existing strengths and core competencies to venture beyond the real estate domain. The primary goal of this diversification is to promote variety, augment revenue, and elevate the quality of profits. Departing from the conventional practice of concentrating solely on a single product, Dat Xanh Group has redirected its focus towards establishing an ecosystem that caters to existing customers more comprehensively while exploring growth opportunities that align with its current operations. In keeping with these objectives, Dat Xanh Group is firmly committed to robust growth, with a clear target of achieving a market capitalization of at least $10 billion by 2030. Within this new strategic framework, Dat Xanh Group operates within five core business sectors: urban real estate development, real estate services, construction, finance and investment, and technology. Among these, real estate development and real estate services are recognized as the company's foundational business segments. In the domain of real estate services, Dat Xanh Group has set out to aggressively capture a larger market share throughout the country, guided by three principal strategies: 1. Extending the Distribution Network: Dat Xanh Group is actively expanding its distribution network to bolster its presence on a national scale, with a particular focus on emerging markets with significant growth potential. 2. Introducing Novel Business Services: To enrich its service ecosystem, Dat Xanh Group is introducing an array of new services. These include ventures into resale brokerage, financial services, asset management services, valuation services, and urban planning information. The objective here is to create a comprehensive service framework that caters to diverse customer needs. 3. Emphasizing Technological Advancements: Technology plays a pivotal role in Dat Xanh Group's strategy, with a specific emphasis on its application. The company is deploying advanced solutions such as Real Agent (a B2B platform for real estate product distribution), Fina (a platform offering optimal solutions for homebuyers in terms of financing, insurance, and investment), and Ihouzz (a platform for connecting homeowners, homebuyers, and real estate agents to enhance efficiency and transparency in the resale property market). Dat Xanh Group is maintaining its position as a pioneer in employing technology to build a real estate service ecosystem, giving it a competitive edge in this sector. In the construction sector, Dat Xanh Group has established Dat Xanh E&C, a subsidiary aimed at bolstering operations in three key areas: infrastructure construction, construction materials, and project development services. Notably, Dat Xanh E&C is currently the sole entity in the market offering a comprehensive suite of real estate development services, encompassing project legal matters, financial solutions, planning, design, construction, sales, and after-sales services for investors. In the financial sector, Dat Xanh Group's vision revolves around connecting and delivering financial solutions to a diverse clientele, including homebuyers, domestic investors in need of capital for their projects, and international investors keen on the Vietnamese real estate market. This strategic expansion into the financial realm aligns with the company's broader mission to cater to the comprehensive needs of its expanding customer base. II. FINANCIAL STATEMENTS ANALYSIS AND LIMITATIONS Financial Statement Analysis is an important component in evaluating an individual or business's ability to borrow based on their current financial situation. Financial ratios are key factors to consider in assessing a company's financial health. From the provided financial reports, here are some noteworthy financial ratios of Dat Xanh Group: 1. Liquidity Ratios 1.1. Quick Ratio The quick ratio, a financial indicator, is a more refined measure of a business's solvency. It assesses the company's ability to meet short-term debts without the necessity of urgently liquidating inventory. Simultaneously, it gauges whether the company possesses sufficient short-term assets to settle its short-term debts without relying on inventory liquidation. According to the financial reports of Dat Xanh Group Group, the quick ratio for 2018 and 2019 stood at 1.41, marking these two years as the ones with the highest quick ratios from 2018 to 2022. This signifies that Dat Xanh Group Group has the capacity to promptly meet short-term obligations without encountering difficulties. In 2020, the quick ratio experienced a sharp decline compared to the preceding two years, falling to 0.92. Specifically, in 2019, the difference between the value of shortterm assets (17,066 billion VND) and inventory (6,971 billion VND) was 10,275 billion VND, which decreased by 804 billion VND compared to 2020 (9,471 billion VND). Similarly, the short-term debt value increased from 7,227 billion VND in 2019 to 10,139 billion VND in 2020, a rise of 2,912 billion VND. An analysis of the financial statements reveals that the values of short-term assets, inventory, and short-term debt increased but not uniformly, resulting in the lower quick ratio in 2020. The quick ratio, which remained below 1, implies that the company's short-term assets, excluding inventory, are insufficient to meet current short-term debts. This suggests that the business might need to consider the possibility of selling inventory to generate the necessary funds to settle short-term debts as they fall due. In 2021, the quick ratio increased by 0.13 compared to 2020, reaching 1.06. With a figure exceeding 1, in 2021, Dat Xanh Group Group did not need to concern itself with liquidating inventory to promptly settle debts as they matured. In 2022, the quick ratio remained relatively stable, increasing by a negligible 0.01. These calculations indicate that, aside from 2020, the quick ratio exceeded 1 in the other years. This underscores that, even after excluding inventory from short-term assets, Dat Xanh Group Group's capacity to meet short-term debt obligations remains robust. It attests to the company's sound solvency, high liquidity, and its capability to readily meet short-term debt obligations when they come due. 1.2.Current Ratio The current ratio, a metric in accounting and finance, denotes a company's capacity to meet its short-term financial obligations with its accessible liquid assets. Typically, a current ratio aligning with or modestly exceeding industry standards is deemed acceptable, while a subpar ratio may signal an elevated risk of financial distress. Conversely, an exceptionally high ratio may indicate suboptimal asset utilization by the corporation. In the fiscal year 2018, Dat Xanh Group exhibited a current ratio of 2.31, signifying its ability to comfortably satisfy its short-term debt commitments. However, the company's gross profit for that year, amounting to 2,107 billion VND, was notably lower in comparison to its short-term debt burden of 5,118 billion VND. Progress was observed in Dat Xanh Group's current ratio for the subsequent fiscal year (2019), with a value of 2.35. This indicated robust short-term liquidity. Nevertheless, the concurrent expansion of short-term assets, amounting to 2,657 billion VND, and short-term financial investments of 5,250 billion VND suggested potential inefficiencies in cash management or an inclination toward cash hoarding. The year 2020 witnessed a dip in the current ratio to 1.91, primarily attributed to a substantial escalation in short-term debt, surging from 7,277 billion VND to 10,319 billion VND, without a corresponding increase in current assets. This phenomenon was a consequence of the global economic turmoil stemming from the COVID-19 pandemic, which disrupted debt collection and management processes. The subsequent year, 2021, saw a persistent low current ratio at 1.91, signaling ongoing challenges in repaying short-term obligations. The short-term debt continued to climb significantly, reaching 13,257 billion VND. However, in 2022, the current ratio rebounded to 2.23, indicating an enhanced solvency position for Dat Xanh Group. This improvement was largely attributed to a modest uptick in short-term assets (2,116 billion VND) and a marginal reduction in short-term debt (-1,002 billion VND). This adjustment may also reflect a more conservative corporate strategy, potentially influenced by the lingering pandemic's repercussions. In summary, Dat Xanh Group experienced fluctuations in its current ratio between 2018 and 2022. The improved ratio in 2022 can be attributed to strategic measures taken to bolster the company's ability to meet its short-term debt obligations, including the increase in short-term assets and a reduction in short-term debt. 1.3. Asset turnover Ratio The Asset Turnover Ratio (ATR) is a vital financial metric that offers valuable insights into a company's operational efficiency. It measures the relationship between a company's net revenue derived from its core business activities and the average value of its assets. Essentially, the ATR informs stakeholders about how effectively a company leverages its assets to generate revenue. Over a span of five years, Dat Xanh Group company's financial records reveal notable fluctuations in this particular metric, signifying changes in its asset utilization dynamics. In the fiscal year 2018, Dat Xanh Group reported an ATR of 0.68. This value implies that the company's assets were turned over approximately 0.68 times during the year. A ratio of this magnitude can be interpreted as somewhat low, suggesting that Dat Xanh Group may not have been optimally capitalizing on its assets to generate revenue. Several factors could contribute to this suboptimal performance. Notably, the company's net revenue from sales and service provision in 2018 reached VND 4,645 billion, while its short-term assets totaled VND 11,816 billion. Although revenue showed an increase compared to the previous year, the growth of short-term assets outpaced it, ultimately resulting in the relatively low ATR. The ATR experienced a significant decrease in 2019, dropping to 0.36. This decline indicates that Dat Xanh Group Group was rotating its assets at a slower pace compared to the previous year. The notable feature here is that short-term assets grew at a faster rate than net revenue, contributing to the reduction in the ATR. A remarkable transformation was witnessed in 2020 as the ATR increased dramatically to 0.13. This upsurge signifies a substantial improvement in asset utilization. The shortterm assets expanded to VND 19,723 billion, while net revenue also grew to VND 10,089 billion. Importantly, this ratio surpassed the 1 mark, highlighting that Dat Xanh Group had significantly enhanced its capacity to employ assets for revenue generation. The following year, in 2021, the ATR continued its upward trajectory, reaching a value of 0.39. This progression indicated that Dat Xanh Group Group had further improved its asset utilization performance. Although short-term assets increased to VND 25,255 billion, substantial growth in net revenue at VND 10,089 billion contributed to the rise in the ATR. Nevertheless, there was a notable setback in 2022 as the ATR plummeted to a mere 0.19. This steep decline suggests potential difficulties for Dat Xanh Group Group in terms of leveraging its assets for revenue generation. This shift in the ATR may signify an unfavorable alteration in the relationship between assets and net revenue during that year. In sum, Dat Xanh Group's ATR exhibited considerable variation during the five-year period from 2018 to 2022, underscoring fluctuation in the company's efficiency in deploying assets to generate revenue. The decline in the ATR value in 2020 may be indicative of challenges in asset management or insufficient growth in net revenue. Conversely, the positive rebound observed in 2021 underscores the critical need for Dat Xanh Group to focus on optimizing its assets and maintaining stability in asset utilization to ensure long-term business sustainability. 1.4. Interest Coverage Ratio The interest coverage ratio serves as a critical indicator of a business's capability to meet its interest obligations on loans. Simultaneously, it reflects the financial cushion the business creates to service its debt during operational activities. Upon closer examination of the data from 2018 to 2022, a notable decline in Dat Xanh Group's interest coverage ratio becomes evident over this period. Commencing with the 2018 interest coverage ratio at 13.9%, this figure represents a robust and secure metric, underscoring the company's immunity to financial risks during this period and its ability to comfortably meet interest obligations. Nonetheless, in 2019, a marginal decrease is observed from 13.9% to 13.01%. Although 2019 saw a revenue increase to 2,389 billion from 2,102 billion in 2018, a rise of 287 billion, the escalation in the business's debt servicing costs by 36% resulted in a slight 0.89% reduction in its capacity to service interest on loans compared to 2018. In 2020, the interest coverage ratio reached its nadir in recent years, displaying a decrement of 11.92% compared to 2019. The precipitous decline was due to the substantial drop in revenue caused by the COVID-19 pandemic, which decreased to 27 billion in that year, marking a decrease of 2,362 billion compared to 2019. This reduction in revenue had a cascading effect on interest expenses, which surged from 199 billion to 309 billion. Consequently, the business's interest coverage ratio also decreased, plummeting to 1.09%. However, it is crucial to note that this figure still lies within a secure threshold, affirming the business's capacity to meet interest obligations. By 2021, the interest coverage ratio made a resurgence, reaching 6.38%. The abatement of the pandemic and the gradual stabilization of the business landscape resulted in increased revenue, which ascended to 2,516 billion in 2021 from 27 billion in 2020. This marked a remarkable uptick in profitability. Although debt servicing costs experienced a growth of 159 billion compared to 2020, the higher profits elevated the business's capacity to meet interest on loans. It is noteworthy to consider the most recent year, 2022. Despite strong growth momentum, the business experienced a pronounced decrease in its interest coverage ratio, dropping from 6.38% to 2.66%. The year 2022 was marked by turbulence in the economic market, attributed to the economic aftermath of the pandemic. Business revenue exhibited a sharp decline to 768 billion, resulting in a reduction in pre-tax profit by 2,748 billion compared to 2021. While borrowing costs also decreased, albeit not significantly (6 billion), the interest coverage ratio registered a substantial decline. Nevertheless, it is imperative to emphasize that the interest coverage index remained at a satisfactory level, well within control. From the aforementioned metrics, it becomes evident that despite fluctuations in Dat Xanh Group's interest coverage ratio from 2018 to 2020, followed by an upswing in 2021 and a subsequent decline in 2022, all the interest coverage ratios remained in compliance with established standards and at an acceptable level. This substantiates that Dat Xanh Group possesses the financial capability to honor its interest obligations. The notable reduction in the business's revenue from operational activities, declining from 2,516 billion to 768 billion by the end of the year, contributed to the solvency decline. Simultaneously, interest costs decreased. This can be attributed to the challenging circumstances in the real estate market, leading to diminished sales in the service segment, while the business had yet to recognize revenue and profits from its investment projects and successful sales deployment. Although the solvency ratio experienced a dip compared to 2021, it maintained a robust metric exceeding 1, and it remained within the business's financial control. In summation, despite the gradual descent of Dat Xanh Group's interest coverage ratio between 2018 and 2022, along with the ensuing fluctuations, all the ratios remained in compliance with standards and at a reasonable level. This signifies the business's capacity to service its interest obligations. From analyzing the detailed breakdown of the above-mentioned liquidity indicators, we approach a multifaceted and complex aspect of a company's finances. Amidst the variability and continuous change, there is stability and adaptability to the challenges posed by the business environment. A positive quick ratio is an indicator of the ability to quickly pay off debts, and this is a positive factor for financial stability. This assurance ensures that the business can handle its short-term obligations without worrying about short-term financial risks. However, an unfavorable current ratio requires special attention as it may indicate a potential imbalance between current assets and short-term liabilities, potentially posing challenges in liquidity in the future. While liquidity ratios can fluctuate due to factors such as market and business environment changes, the ability to maintain control over debt payment remains a strength of a business. These fluctuations may reflect the adaptability of the business to unforeseen changes and careful financial management. However, it is essential for businesses to continuously monitor and improve liquidity ratios. The business environment is ever-changing, and companies need to adjust their financial strategies to ensure financial stability and the ability to cope with unforeseen circumstances. In summary, the combination of positivity and fluctuations in liquidity ratios provides a comprehensive view of a company's finances. Stability is crucial for dealing with financial risks, but flexibility and adaptability are the keys to success in a rapidly changing business environment. Careful financial management and, particularly, a focus on optimizing financial stability are necessary to ensure long-term stability and sustainability in a company's finances. 2. Gearing ratios 2.1. Debt to Equity Ratio The Debt-to-Equity Ratio (D/E Ratio) is a fundamental financial metric that holds a pivotal place in the realm of accounting and finance. It serves as a critical indicator, shedding light on the intricate interplay between a company's indebtedness and its equity base. A comprehensive analysis of the financial data spanning the years 2018 to 2022 reveals a dynamic and evolving financial landscape, replete with implications for the organization's capital structure and overall financial health. In the year 2018, the D/E Ratio stood notably high at 1.21. This value, exceeding unity, unmistakably signified a substantial proportion of debt relative to equity. This observation effectively underscored the company's pronounced reliance on external funding sources, primarily in the form of borrowed capital. Such a financial configuration, while offering opportunities for leveraging capital to fuel growth and expansion, also implicates a higher degree of financial risk associated with servicing and repaying debts. The elevated D/E Ratio hinted at the potential challenges and vulnerabilities associated with this debt-heavy approach. Progressing to the fiscal year 2019, a slight reduction in the D/E Ratio to 1.15 was observed. This reduction, though marginal, hinted at a nascent improvement in the delicate balance between debt and equity. However, it was evident that the company's reliance on external sources of funds, i.e., borrowed capital, persisted. This ongoing reliance indicated that the organization had not yet fully shifted its capital structure towards equity financing, although it was taking steps in that direction. The year 2020 brought about a significant transformation, with the D/E Ratio soaring to 1.57. This upsurge marked a pronounced escalation in the utilization of borrowed capital. The magnitude of this increase prompts several interpretations. On one hand, it might be indicative of an opportunity-driven investment strategy wherein the company capitalizes on favorable market conditions to bolster its operations and seize growth prospects. On the other hand, such a substantial upturn could also signify financial distress, where the organization is compelled to resort to increased borrowing to address operational challenges, such as the economic uncertainties that unfolded during the global pandemic. Conversely, the subsequent year, 2021, witnessed a welcome reduction in the D/E Ratio, which descended to 1.11. This was indicative of an improved debt management strategy and a healthier financial standing. The reduction in reliance on borrowed capital implied a more prudent and balanced approach to capital structure and financial stability. It suggested that the organization had actively taken measures to mitigate its debt exposure and enhance its financial resilience. Finally, in 2022, the D/E Ratio maintained stability at 1.15. This marked a continuation of the relatively balanced financial position achieved in the previous year. The steady state of this ratio suggests that the company has successfully maintained control over its debt levels and exhibited a prudent and consistent approach to financial management. It reflected an organization that was committed to maintaining a healthy equilibrium between its reliance on external funding sources and its internal equity capital. In summation, the trajectory of the D/E Ratio over the five-year period under consideration reflects the company's varying financial strategies and the ever-evolving economic landscape. The significant surge in 2020, coupled with subsequent stability and improvement, underscores the critical importance of vigilant debt management. A judicious approach to the management of debt is essential to ensure not only the capability to service and retire debt but also to fortify the organization's financial stability and resilience in the face of future economic fluctuations. This journey of financial transformation showcases the adaptability and strategic decision-making capabilities of the organization as it navigates the complex and dynamic world of finance. Good gearing ratios, espcailly a low or stable Debt-to-Equity Ratio (D/E Ratio), typically indicates several crucial aspects of a company's financial situation. This ratio provides insights into the balance between debt and equity in their financial structure. This offers several key observations: Firstly, the D/E Ratio within this range indicates significant financial stability within the company. This suggests that the company has maintained a prudent balance in the use of debt and equity to finance their business operations. This helps them avoid excessive financial pressure or overreliance on borrowing. Furthermore, this financial structure enables the company to consider investments and expansions wisely without having to heavily rely on debt or equity capital. This creates favorable conditions for growth and expansion without concerns about the debt level impacting financial stability. Additionally, this D/E Ratio also signifies the company's ability to adapt to economic fluctuations. They can adjust their financial structure flexibly to cope with challenges if necessary. In summary, gearin Ratio of Dat Xanh Group indicates financial stability and balance, allowing the company to maintain stability and adaptability in a dynamic economic environment. 3. Cash flow ratios 3.1. Debt-Service Coverage Ratio The Debt-Service Coverage Ratio (DSCR) in the field of corporate finance is a metric that assesses the cash flow available to meet current debt obligations. It represents the relationship between net operating income and annual debt obligations. Lenders routinely scrutinize a borrower's ability to service debt before extending credit. The required minimum DSCR may be contingent on prevailing macroeconomic conditions. During periods of economic growth and favorable credit conditions, lenders may accept a DSCR lower than the prescribed threshold. In 2018, the DSCR was 0.2798, and it saw a substantial decline to 0.2168 in 2019. Both ratios for 2018 and 2019 were negative and below 1. During these two years, the company's cash flow from operational activities amounted to 2.310 billion in 2019, which was an increase compared to the previous year. However, the business debt also escalated from 7.530 billion to 10.653 billion. It becomes evident that the company lacked the capacity to meet its debt obligations. Entering 2020, there was a significant deterioration in the Debt Service Coverage Ratio, plummeting from 0.2168 in 2019 to an alarming 0.0003. It is evident that the cash flow generated by the company's operations was declining, and in 2020, the company incurred substantial losses. Furthermore, the 2020 DSCR of 0.0003 still failed to meet the standard of being greater than 1, signifying the company's inability to service its debt obligations using operational cash flow. Moreover, Dat Xanh Group continued to experience losses and mounting debt. In 2021, there was a remarkable improvement in the DSCR, with the index surging from 0.0003 in 2020 to 0.1696 in 2021. The change from 2020 to 2021 was 0.1699, underscoring a substantial upturn in the company's operational revenue, from a loss of 4 billion to a gain of 2.522 billion. Although the company's payable debts increased, the increase was not substantial, rising from 14.227 billion to 14.873 billion. Nonetheless, the 2021 DSCR of 0.1696 remained below 1, indicating that Dat Xanh Group Group still lacked the capacity to service its debt obligations. Despite the robust growth, by 2022, the company's DSCR took a severe hit, plummeting from 0.1696 to 0.0477. The difference between 2021 and 2022 was 0.1219, indicating a sharp decrease in cash flow from operational activities, falling from 2.522 billion to 775 billion by year-end. The company incurred losses during 2022, while its debt level significantly increased from 14.873 billion to 16.236 billion. The decrease in cash flow and the rise in liabilities meant the index failed to meet the 1 standard, rendering Dat Xanh Group incapable of repaying its loans. Throughout the years from 2018 to 2022, the Debt Service Coverage Ratio (DSCR) for the Vietnamese company consistently remained low or even negative. This signifies a financial predicament for the company, primarily stemming from the fluctuating net income from operational activities and the escalating debt. The company necessitates a comprehensive reassessment and the formulation of a strategic plan to enhance the DSCR. Potential strategies may encompass optimizing the debt structure, improving operational profitability, or reducing the total debt to secure future financial stability. From analysis, there is conlclusion that poor cash flow ratios can significantly impact the company's ability to borrow money, with Debt Service Coverage Ratio (DSCR) as a specific example. This can lead to the following effects: When the DSCR is low, indicating limited available cash flow for servicing debt, lenders may be concerned about the company's ability to make timely debt payments. This can result in pressure on the company to strengthen its cash flow or seek additional sources of financing to ensure on-time debt servicing. Lenders might require higher interest rates if the DSCR is low, reflecting the perceived higher credit risk associated with the company. This translates into increased borrowing costs and greater financial expenses for the company. Low DSCR can lead lenders to impose stricter loan conditions. This could include requesting additional collateral or personal guarantees from company owners or management, which can limit the company's flexibility and control over its assets and operations. A subpar DSCR may prompt lenders to demand stricter terms and conditions, exacerbating financial pressures and elevating borrowing costs. Therefore, companies must explore strategies to improve their DSCR and adeptly manage their finances to ensure they can meet debt repayment obligations and maintain positive relationships with lenders. III. RECOMMENDATIONS Before extending a loan to Dat Xanh Group, creditors should embark on a comprehensive evaluation of the company's financial status and provide thoughtful recommendations to enhance the financial health of the organization. Here is an expanded analysis of the considerations and proposals that creditors should take into account: 1. Conduct a Detailed Financial Assessment: Creditors should initiate the process by requesting Dat Xanh Group to furnish a comprehensive set of financial information, including audited financial statements, balance sheets, income statements, and cash flow statements for the fiscal year 2022. A deeper dive into these financial documents will provide a clearer understanding of the current financial landscape. This assessment should also include a review of Dat Xanh Group's historical financial performance to identify trends, strengths, and areas of concern. 2. Reevaluate the Financial Structure: It is crucial for Dat Xanh Group to reconsider its financial structure. The debt-to-equity (D/E) ratio needs careful examination. Creditors should suggest that Dat Xanh Group explores options to reduce its debt burden or potentially increase equity through mechanisms like equity financing, retained earnings, or asset sales. Achieving a more favorable D/E ratio can significantly enhance financial stability, reduce interest expenses, and mitigate financial risk. 3. Optimize Debt Management: Debt management optimization is a key facet of Dat Xanh Group's financial strategy. Creditors may advise the company to critically review its debt repayment schedule, potentially negotiating with lenders to restructure debt terms if necessary. This may also involve seizing opportunities to reduce the overall debt levels on the company's financial statements, leading to a more manageable debt burden. 4. Create a Cash Flow Enhancement Plan: Creditors can recommend that Dat Xanh Group formulates a comprehensive plan to enhance cash flow. This plan may encompass strategies to boost sales, reduce operational costs, or improve overall operational efficiency. Implementing a rigorous cash flow strategy will enable the company to meet its financial obligations and service its debt more effectively. 5. Request Detailed Information on Future Development Plans and Financial Strategies: For a more holistic understanding of Dat Xanh Group's prospects and financial prudence, creditors should insist on receiving detailed insights into the company's future development plans and financial strategies. This information will help creditors gauge the company's forward-looking approach and assess how it intends to navigate financial challenges in the future. 6. Clear Security and Control Provisions: To safeguard their interests in the event that Dat Xanh Group encounters financial difficulties, creditors must ensure that all security and control provisions are clearly outlined in the lending agreement. This includes the definition of collateral, covenants, rights to access financial information, and mechanisms for addressing default situations. Such provisions are essential for protecting the creditor's investment and managing risks effectively. In conclusion, before extending financial assistance to Dat Xanh Group, creditors should engage in a thorough and meticulous evaluation of the company's financial health. This analysis should be accompanied by well-thought-out recommendations designed to enhance the company's financial situation, ensure its capacity to meet debt obligations, and ultimately foster a mutually beneficial lending relationship. By implementing these considerations and proposals, creditors can contribute to Dat Xanh Group's financial well-being while securing their own interests.