China New Energy (HKSE:01156) Beneish M-Score : -5.32 (As of Apr. 10, 2025)

View and export this data going back to 2020. Start your Free Trial

What is China New Energy 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 -5.32 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01156' s Beneish M-Score Range Over the Past 10 Years
Min: -5.32 Med: -1.92 Max: 0.91
Current: -5.32

During the past 13 years, the highest Beneish M-Score of China New Energy was 0.91. The lowest was -5.32. And the median was -1.92.

China New Energy Beneish M-Score Historical Data

The historical data trend for China New Energy'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.

* Premium members only.

China New Energy Beneish M-Score Chart

China New Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-1.76

-1.29

-0.77

-2.69

-5.32

China New Energy Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
Beneish M-Score	Get a 7-Day Free Trial															-	-2.69	-	-5.32	-

Competitive Comparison of China New Energy's Beneish M-Score

For the Oil & Gas Equipment & Services subindustry, China New Energy'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.

China New Energy's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, China New Energy's Beneish M-Score distribution charts can be found below:

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

Save Embed

;

Save Embed

;

China New Energy 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 China New Energy 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 * 1.4919

0.528 * -1.0569

0.404 * 2.7644

0.892 * 0.3491

0.115 * 1.1361

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.5197

4.679 * -0.424832

0.327 * 1.323

-5.32

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$224.50 Mil.
Revenue was HK$45.75 Mil.
Gross Profit was HK$-5.60 Mil.
Total Current Assets was HK$256.58 Mil.
Total Assets was HK$357.01 Mil.
Property, Plant and Equipment(Net PPE) was HK$21.05 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$8.73 Mil.
Selling, General, & Admin. Expense(SGA) was HK$28.35 Mil.
Total Current Liabilities was HK$268.43 Mil.
Long-Term Debt & Capital Lease Obligation was HK$12.49 Mil.
Net Income was HK$-138.47 Mil.
Gross Profit was HK$0.00 Mil.
Cash Flow from Operations was HK$13.20 Mil.

Total Receivables was HK$431.07 Mil.
Revenue was HK$131.05 Mil.
Gross Profit was HK$16.96 Mil.
Total Current Assets was HK$479.27 Mil.
Total Assets was HK$539.62 Mil.
Property, Plant and Equipment(Net PPE) was HK$16.95 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$8.47 Mil.
Selling, General, & Admin. Expense(SGA) was HK$32.23 Mil.
Total Current Liabilities was HK$319.43 Mil.
Long-Term Debt & Capital Lease Obligation was HK$1.51 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)
	=	(224.502 / 45.748)	/	(431.074 / 131.051)
	=	4.907362	/	3.289361
	=	1.4919

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)
	=	(16.96 / 131.051)	/	(-5.602 / 45.748)
	=	0.129415	/	-0.122453
	=	-1.0569

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 - (256.58 + 21.049) / 357.009)	/	(1 - (479.268 + 16.948) / 539.619)
	=	0.222347	/	0.080433
	=	2.7644

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
	=	45.748	/	131.051
	=	0.3491

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))
	=	(8.468 / (8.468 + 16.948))	/	(8.734 / (8.734 + 21.049))
	=	0.333176	/	0.293255
	=	1.1361

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)
	=	(28.352 / 45.748)	/	(32.233 / 131.051)
	=	0.619743	/	0.245958
	=	2.5197

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)
	=	((12.485 + 268.433) / 357.009)	/	((1.508 + 319.431) / 539.619)
	=	0.786865	/	0.594751
	=	1.323

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
	=	(-138.466 - 0	-	13.203)	/	357.009
	=	-0.424832

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.

China New Energy has a M-score of -5.32 suggests that the company is unlikely to be a manipulator.

China New Energy Beneish M-Score Related Terms

Thank you for viewing the detailed overview of China New Energy's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

China New Energy Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » China New Energy Ltd (HKSE:01156) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 80, Lanyue Road, Unit 210, 2nd Floor, Science City, Comprehensive Service Building Science & Technology Innovation Base, Guangzhou High-tech Industrial Development Zone,, Guangzhou, CHN, 510640

Website

http://www.zkty.com.cn

China New Energy Ltd is a provider of bioenergy technology solutions. The Group is engaged in the provision of ethanol production system technology integrated services in the ethanol fuel and alcoholic beverage industries The company offers technology services to two industries: Ethanol fuel construction services and Alcoholic beverage construction services. It generates maximum revenue from the Ethanol fuel construction services streams. Geographically, it derives a majority of its revenue from the PRC and also has a presence in Canada, Russia, Thailand, and Myanmar.

Executives

Best Full Investments Limited	2101 Beneficial owner
Han Jing	2202 Interest of your spouse
Liang Hongtao	2201 Interest of corporation controlled by you
Tang Zhaoxing	2201 Interest of corporation controlled by you
Zeng Fanghua	2202 Interest of your spouse
Tonzest Capital Holding Limited	2101 Beneficial owner
Tan Fengqiao	2202 Interest of your spouse
Yu Weijun	2101 Beneficial owner
Tewin Capital Holding Limited	2101 Beneficial owner
Chen Wan Ling	2201 Interest of corporation controlled by you
Kapok Capital Management Limited	2101 Beneficial owner
Jiang Xinchun	2101 Beneficial owner
Wang Yan	2202 Interest of your spouse
Jojo Global Investment Limited	2101 Beneficial owner

China New Energy Headlines

No Headlines