Vongroup (HKSE:00318) Beneish M-Score : -1.93 (As of Mar. 24, 2025)

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What is Vongroup Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -1.93 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Vongroup's Beneish M-Score or its related term are showing as below:

HKSE:00318' s Beneish M-Score Range Over the Past 10 Years
Min: -2.68 Med: -1.96 Max: -1.11
Current: -1.93

During the past 13 years, the highest Beneish M-Score of Vongroup was -1.11. The lowest was -2.68. And the median was -1.96.

Vongroup Beneish M-Score Historical Data

The historical data trend for Vongroup's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Vongroup Beneish M-Score Chart

Vongroup Annual Data

Trend

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Apr24

Beneish M-Score

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-1.99

-1.19

-2.28

-2.68

-1.93

Vongroup Semi-Annual Data
	Apr15	Oct15	Apr16	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23	Apr24	Oct24
Beneish M-Score	Get a 7-Day Free Trial															-	-2.68	-	-1.93	-

Competitive Comparison of Vongroup's Beneish M-Score

For the Information Technology Services subindustry, Vongroup's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Vongroup's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Vongroup's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Vongroup's Beneish M-Score falls into.

Vongroup Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Vongroup for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.2061

0.528 * 0.9764

0.404 * 1.0063

0.892 * 1.0146

0.115 * 0.7424

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0355

4.679 * 0.079466

0.327 * 0.928

-1.93

This Year (Apr24) TTM:

Last Year (Apr23) TTM:

Total Receivables was HK$182.6 Mil.
Revenue was HK$204.5 Mil.
Gross Profit was HK$195.9 Mil.
Total Current Assets was HK$265.7 Mil.
Total Assets was HK$620.8 Mil.
Property, Plant and Equipment(Net PPE) was HK$10.0 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$11.0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$163.4 Mil.
Total Current Liabilities was HK$66.5 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.
Net Income was HK$21.1 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$-28.2 Mil.

Total Receivables was HK$149.2 Mil.
Revenue was HK$201.6 Mil.
Gross Profit was HK$188.6 Mil.
Total Current Assets was HK$262.4 Mil.
Total Assets was HK$609.4 Mil.
Property, Plant and Equipment(Net PPE) was HK$10.4 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$6.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$155.6 Mil.
Total Current Liabilities was HK$70.3 Mil.
Long-Term Debt & Capital Lease Obligation was HK$0.0 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(182.607 / 204.545)	/	(149.229 / 201.608)
	=	0.892747	/	0.740194
	=	1.2061

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(188.554 / 201.608)	/	(195.925 / 204.545)
	=	0.935251	/	0.957858
	=	0.9764

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (265.738 + 9.97) / 620.828)	/	(1 - (262.353 + 10.398) / 609.358)
	=	0.555903	/	0.552396
	=	1.0063

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	204.545	/	201.608
	=	1.0146

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(6.612 / (6.612 + 10.398))	/	(10.956 / (10.956 + 9.97))
	=	0.388713	/	0.523559
	=	0.7424

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(163.435 / 204.545)	/	(155.57 / 201.608)
	=	0.799017	/	0.771646
	=	1.0355

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0 + 66.481) / 620.828)	/	((0 + 70.312) / 609.358)
	=	0.107084	/	0.115387
	=	0.928

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(21.123 - 0	-	-28.212)	/	620.828
	=	0.079466

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Vongroup has a M-score of -1.93 suggests that the company is unlikely to be a manipulator.

Vongroup Beneish M-Score Related Terms

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Vongroup Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Vongroup Ltd (HKSE:00318) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

83 Hung To Road, 17A, EGL Tower, Kwun Tong, Kowloon, Hong Kong, HKG

Website

https://www.thevongroup.com

Vongroup Ltd is an investment holding company and the operating segment includes Financial, Property, and Technology. The majority of the revenue is generated from the Technology segment which is engaged in the business paradigms such as fintech, cloud, distance business, and virtual technologies. It helps clients to analyze, design, develop, operate, and maintain integrated e-commerce and other online commercials, educational, and biotech platforms and products. Its geographical segments include Hong Kong, the People's Republic of China, and Macau, out of which the majority of revenue comes from Hong Kong.

Executives

Vongroup Holdings Limited	2101 Beneficial owner
Vong Tat Ieong David	2201 Interest of corporation controlled by you
Allyking International Limited	2101 Beneficial owner
Huang Rong	2201 Interest of corporation controlled by you
Kingston Investment Assets Limited	2101 Beneficial owner
Nip Brian Donald	2201 Interest of corporation controlled by you
Wun Kam Hoi	2101 Beneficial owner

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