Shanghai Xizhi Technology Co (HKSE:01879) Beneish M-Score: -6.35 (As of Aug. 18, 2026)

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HKSE:01879 Shanghai Xizhi Technology Co Ltd HKSE:01879
7 GF Score
Price HK$327.60
! 4 Warning Signs
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What is Shanghai Xizhi Technology Co Beneish M-Score?

Shanghai Xizhi Technology Co HKSE:01879 -6.24% 7 Beneish M-Score is -6.35 as of Aug. 18, 2026. GuruFocus rates HKSE:01879 with a GF Score™ of 7/100. The stock has 4 warning signs investors should review. Among 2,401 Hardware companies, Shanghai Xizhi Technology Co ranks better than 98.92% 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.

Good Sign:

Beneish M-Score -6.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

HKSE:01879' s Beneish M-Score Range Over the Past 10 Years
Min: -6.35   Med: -6.35   Max: -6.35
Current: -6.35

During the past 3 years, the highest Beneish M-Score of Shanghai Xizhi Technology Co was -6.35. The lowest was -6.35. And the median was -6.35.

Shanghai Xizhi Technology Co Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Shanghai Xizhi Technology Co'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.

Shanghai Xizhi Technology Co Beneish M-Score Chart

Shanghai Xizhi Technology Co Annual Data
Trend Dec23 Dec24 Dec25
Beneish M-Score
0.00 0.00 -6.35

Shanghai Xizhi Technology Co Semi-Annual Data
Dec23 Dec24 Dec25
Beneish M-Score 0.00 0.00 -6.35

HKSE:01879 vs CSCO, MSI, HPE: Beneish M-Score Comparison

For the Communication Equipment subindustry, Shanghai Xizhi Technology Co'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.

Shanghai Xizhi Technology Co Beneish M-Score vs Hardware Industry

For the Hardware industry and Technology sector, Shanghai Xizhi Technology Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Shanghai Xizhi Technology Co's Beneish M-Score falls into.


HKSE:01879
7GF Score
Shanghai Xizhi Technology Co Ltd HKSE:01879
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Shanghai Xizhi Technology Co 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 Shanghai Xizhi Technology Co 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 * 0.0921+0.528 * 1.3728+0.404 * 1.1697+0.892 * 1.8285+0.115 * 1.2897
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6594+4.679 * -0.862409-0.327 * 1.3071
=-6.35

* 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$97.2 Mil.
Revenue was HK$117.5 Mil.
Gross Profit was HK$45.8 Mil.
Total Current Assets was HK$934.3 Mil.
Total Assets was HK$1,257.0 Mil.
Property, Plant and Equipment(Net PPE) was HK$215.4 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$96.6 Mil.
Selling, General, & Admin. Expense(SGA) was HK$52.2 Mil.
Total Current Liabilities was HK$5,773.4 Mil.
Long-Term Debt & Capital Lease Obligation was HK$14.7 Mil.
Net Income was HK$-1,483.0 Mil.
Gross Profit was HK$0.0 Mil.
Cash Flow from Operations was HK$-398.9 Mil.
 Total Receivables was HK$577.4 Mil.
Revenue was HK$64.3 Mil.
Gross Profit was HK$34.4 Mil.
Total Current Assets was HK$1,083.0 Mil.
Total Assets was HK$1,263.3 Mil.
Property, Plant and Equipment(Net PPE) was HK$88.1 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$58.5 Mil.
Selling, General, & Admin. Expense(SGA) was HK$43.3 Mil.
Total Current Liabilities was HK$4,422.2 Mil.
Long-Term Debt & Capital Lease Obligation was HK$28.1 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)
=(97.231 / 117.507) / (577.41 / 64.264)
=0.827449 / 8.984968
=0.0921

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)
=(34.393 / 64.264) / (45.811 / 117.507)
=0.535183 / 0.389858
=1.3728

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 - (934.298 + 215.374) / 1256.992) / (1 - (1083.004 + 88.059) / 1263.273)
=0.085378 / 0.072993
=1.1697

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
=117.507 / 64.264
=1.8285

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))
=(58.519 / (58.519 + 88.059)) / (96.565 / (96.565 + 215.374))
=0.399235 / 0.309564
=1.2897

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)
=(52.17 / 117.507) / (43.272 / 64.264)
=0.443974 / 0.673347
=0.6594

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)
=((14.715 + 5773.37) / 1256.992) / ((28.077 + 4422.166) / 1263.273)
=4.604711 / 3.522788
=1.3071

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
=(-1482.956 - 0 - -398.915) / 1256.992
=-0.862409

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.

Shanghai Xizhi Technology Co has a M-score of -6.35 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -6.35 mean?
Shanghai Xizhi Technology Co (HKSE:01879) has a Beneish M-Score of -6.35 as of Aug. 18, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Shanghai Xizhi Technology Co and its competitors. According to the industry distribution chart, Shanghai Xizhi Technology Co ranks #26 out of 2401 companies in the Hardware industry, placing it in the top 1.1%.
Is Shanghai Xizhi Technology Co's Beneish M-Score too high?
Shanghai Xizhi Technology Co's current Beneish M-Score is -6.35. Based on the distribution chart, Shanghai Xizhi Technology Co ranks #26 out of 2401 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Shanghai Xizhi Technology Co has a GF Score™ of 7/100, reflecting its overall financial health beyond just this single metric.
How does Shanghai Xizhi Technology Co's Beneish M-Score compare to CSCO and MSI?
According to the Hardware industry distribution chart, Shanghai Xizhi Technology Co ranks #26 out of 2401 companies for Beneish M-Score. This places Shanghai Xizhi Technology Co in the top 1% of its industry — outperforming the majority of peers. 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 Hardware company?
A good Beneish M-Score depends on the Hardware 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 Shanghai Xizhi Technology Co and its competitors. Shanghai Xizhi Technology Co's current Beneish M-Score is -6.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Xizhi Technology Co stock overvalued right now?
Shanghai Xizhi Technology Co (HKSE:01879) has a current Beneish M-Score of -6.35. The current Beneish M-Score is -6.35. Shanghai Xizhi Technology Co's overall GF Score™ is 7/100 with 4 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 Shanghai Xizhi Technology Co (HKSE:01879), the current Beneish M-Score is -6.35 as of Aug. 18, 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.

Shanghai Xizhi Technology Co Business Description

Address Nos. 111, 125 and 139 Boxia Road, China (Shanghai) Pilot Free Trade Zone, Pudong New District, Shanghai, CHN
Shanghai Xizhi Technology Co Ltd, along with its subsidiaries, is principally engaged in the sales of optical interconnect and optical computing hardware, solutions and related services dedicated to enhancing computing efficiency, as well as research and development activities in relation to optical interconnect and optical computing business. The company's revenue is derived from two primary sources: (i) optical interconnect business and (ii) optical computing business. The majority of reveneu is derived from the Optical interconnect business, which includes the sales of its Scale-up and Scale-out products.
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Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$327.60
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