China New City Group (HKSE:01321) Beneish M-Score: 11.11 (As of Jul. 07, 2026)


HKSE:01321 China New City Group Ltd HKSE:01321
39 GF Score
Price HK$0.65
GF Value HK$0.45
Valuation Significantly Overvalued
! 9 Warning Signs
View Full Analysis

What is China New City Group Beneish M-Score?

China New City Group HKSE:01321 39 Beneish M-Score is 11.11 as of Jul. 07, 2026. GuruFocus rates HKSE:01321 with a GF Score™ of 39/100 and a GF Value™ of HK$0.45 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,684 Real Estate companies, China New City Group ranks worse than 97.45% on this metric.

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.

Warning Sign:

Beneish M-Score 11.11 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:01321' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07   Med: -1.25   Max: 11.11
Current: 11.11

During the past 13 years, the highest Beneish M-Score of China New City Group was 11.11. The lowest was -3.07. And the median was -1.25.

China New City Group Beneish M-Score Historical Data

* Premium members only.

The historical data trend for China New City Group'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.

China New City Group Beneish M-Score Chart

China New City Group Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.07 -2.60 -2.65 -1.25 11.11

China New City Group Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.65 0.00 -1.25 0.00 11.11

China New City Group Beneish M-Score Competitor Comparison

For the Real Estate - Development subindustry, China New City Group'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 City Group Beneish M-Score vs Real Estate Industry

For the Real Estate industry and Real Estate sector, China New City Group's Beneish M-Score distribution charts can be found below:

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


HKSE:01321
39GF Score
China New City Group Ltd HKSE:01321
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

China New City Group 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 City Group for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 14.9979+0.528 * 4.0758+0.404 * 1.1797+0.892 * 0.1865+0.115 * 1.032
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 4.7588+4.679 * 0.087908-0.327 * 1.0759
=11.11

* 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.

This Year (Dec25) TTM:Last Year (Dec24) TTM:
Total Receivables was HK$1,307.1 Mil.
Revenue was HK$817.2 Mil.
Gross Profit was HK$100.6 Mil.
Total Current Assets was HK$5,000.7 Mil.
Total Assets was HK$14,312.3 Mil.
Property, Plant and Equipment(Net PPE) was HK$2,327.9 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$124.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$253.9 Mil.
Total Current Liabilities was HK$3,213.3 Mil.
Long-Term Debt & Capital Lease Obligation was HK$5,303.1 Mil.
Net Income was HK$-305.1 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$-1,563.3 Mil.
 Total Receivables was HK$467.3 Mil.
Revenue was HK$4,381.5 Mil.
Gross Profit was HK$2,198.6 Mil.
Total Current Assets was HK$6,031.0 Mil.
Total Assets was HK$14,291.6 Mil.
Property, Plant and Equipment(Net PPE) was HK$2,349.3 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$130.0 Mil.
Selling, General, & Admin. Expense(SGA) was HK$286.1 Mil.
Total Current Liabilities was HK$5,397.6 Mil.
Long-Term Debt & Capital Lease Obligation was HK$2,506.4 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)
=(1307.053 / 817.168) / (467.276 / 4381.466)
=1.599491 / 0.106648
=14.9979

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)
=(2198.56 / 4381.466) / (100.606 / 817.168)
=0.501786 / 0.123115
=4.0758

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 - (5000.743 + 2327.855) / 14312.288) / (1 - (6030.998 + 2349.336) / 14291.567)
=0.487951 / 0.413617
=1.1797

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
=817.168 / 4381.466
=0.1865

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))
=(130.025 / (130.025 + 2349.336)) / (124.623 / (124.623 + 2327.855))
=0.052443 / 0.050815
=1.032

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)
=(253.945 / 817.168) / (286.124 / 4381.466)
=0.310762 / 0.065303
=4.7588

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)
=((5303.071 + 3213.308) / 14312.288) / ((2506.403 + 5397.592) / 14291.567)
=0.59504 / 0.553053
=1.0759

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
=(-305.114 - 0 - -1563.28) / 14312.288
=0.087908

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 City Group has a M-score of 11.11 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 11.11 mean?
China New City Group (HKSE:01321) has a Beneish M-Score of 11.11 as of Jul. 07, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China New City Group and its competitors. According to the industry distribution chart, China New City Group ranks #1641 out of 1684 companies in the Real Estate industry, placing it in the top 97.4%.
Is China New City Group's Beneish M-Score too high?
China New City Group's current Beneish M-Score is 11.11. Based on the distribution chart, China New City Group ranks #1641 out of 1684 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, China New City Group has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China New City Group's Beneish M-Score compare to competitors?
According to the Real Estate industry distribution chart, China New City Group ranks #1641 out of 1684 companies for Beneish M-Score. This places China New City Group in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Real Estate company?
A good Beneish M-Score depends on the Real Estate industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on China New City Group and its competitors. China New City Group's current Beneish M-Score is 11.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China New City Group stock overvalued right now?
Based on GuruFocus' analysis, China New City Group (HKSE:01321) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.45, compared to a current price of HK$0.65 — trading 44.4% above its estimated fair value. The current Beneish M-Score is 11.11. China New City Group's overall GF Score™ is 39/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For China New City Group (HKSE:01321), the current Beneish M-Score is 11.11 as of Jul. 07, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is China New City Group (HKSE:01321) Overvalued in 2026?

Based on GuruFocus' analysis, China New City Group stock appears to be overvalued. The current stock price of HK$0.65 is trading 44.4% above its estimated GF Value™ of HK$0.45. GuruFocus considers China New City Group to be Significantly Overvalued.

Key valuation signals for HKSE:01321:

  • Beneish M-Score: 11.11
  • GF Value™: HK$0.45 vs. price of HK$0.65 (44.4% above fair value)
  • GF Score™: 39/100 with 9 warning signs

No single metric tells the full story. See the HKSE:01321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

China New City Group Business Description

Address Long Zhang Road, 5th Floor, Building 6 Xinhang Business Center, Xihu District, Zhejiang Province, Hangzhou, CHN
China New City Group Ltd is engaged in commercial property investment for leasing, commercial property development for sale and leasing, and commercial operations in the People's Republic of China (PRC). Its segments consist of the commercial property development segment, which develops and sells commercial properties in the Chinese Mainland and Japan; the property rental segment leases investment properties in the Chinese Mainland; the hotel operations segment owns and operates hotels; and the other services segment comprises the Group's project management business and other business that the Group is involved in. The majority of the revenue is derived from the commercial property development segment. Geographically, it operates in the Chinese Mainland and Others.
39GF Score

Get the complete analysis for HKSE:01321

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.65
Price
HK$0.45
GF Value