Pateo Connect Technology (Shanghai) (HKSE:02889) Beneish M-Score: -2.69 (As of Aug. 13, 2026)

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HKSE:02889 Pateo Connect Technology (Shanghai) Corp HKSE:02889
8 GF Score
Price HK$188.70
! 2 Warning Signs
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What is Pateo Connect Technology (Shanghai) Beneish M-Score?

Pateo Connect Technology (Shanghai) HKSE:02889 +4.83% 8 Beneish M-Score is -2.69 as of Aug. 13, 2026. GuruFocus rates HKSE:02889 with a GF Score™ of 8/100. The stock has 2 warning signs investors should review. Among 2,634 Software companies, Pateo Connect Technology (Shanghai) ranks better than 60.63% 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 -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Pateo Connect Technology (Shanghai)'s Beneish M-Score or its related term are showing as below:

HKSE:02889' s Beneish M-Score Range Over the Past 10 Years
Min: -2.69   Med: 0.03   Max: 2.75
Current: -2.69

During the past 4 years, the highest Beneish M-Score of Pateo Connect Technology (Shanghai) was 2.75. The lowest was -2.69. And the median was 0.03.

Pateo Connect Technology (Shanghai) Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Pateo Connect Technology (Shanghai)'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.

Pateo Connect Technology (Shanghai) Beneish M-Score Chart

Pateo Connect Technology (Shanghai) Annual Data
Trend Dec22 Dec23 Dec24 Dec25
Beneish M-Score
0.00 0.00 2.75 -2.69

Pateo Connect Technology (Shanghai) Semi-Annual Data
Dec22 Dec23 Dec24 Dec25
Beneish M-Score 0.00 0.00 2.75 -2.69

HKSE:02889 vs QH, SHOP, UBER: Beneish M-Score Comparison

For the Software - Application subindustry, Pateo Connect Technology (Shanghai)'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.

Pateo Connect Technology (Shanghai) Beneish M-Score vs Software Industry

For the Software industry and Technology sector, Pateo Connect Technology (Shanghai)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Pateo Connect Technology (Shanghai)'s Beneish M-Score falls into.


HKSE:02889
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Pateo Connect Technology (Shanghai) Corp HKSE:02889
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Pateo Connect Technology (Shanghai) 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 Pateo Connect Technology (Shanghai) 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 * 1.096+0.528 * 0.9515+0.404 * 0.5505+0.892 * 1.4202+0.115 * 1.6076
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4783+4.679 * -0.097292-0.327 * 0.9892
=-2.69

* 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$2,250 Mil.
Revenue was HK$3,877 Mil.
Gross Profit was HK$480 Mil.
Total Current Assets was HK$5,191 Mil.
Total Assets was HK$6,449 Mil.
Property, Plant and Equipment(Net PPE) was HK$1,154 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$91 Mil.
Selling, General, & Admin. Expense(SGA) was HK$1,164 Mil.
Total Current Liabilities was HK$3,508 Mil.
Long-Term Debt & Capital Lease Obligation was HK$400 Mil.
Net Income was HK$-1,208 Mil.
Gross Profit was HK$0 Mil.
Cash Flow from Operations was HK$-580 Mil.
 Total Receivables was HK$1,445 Mil.
Revenue was HK$2,730 Mil.
Gross Profit was HK$321 Mil.
Total Current Assets was HK$3,824 Mil.
Total Assets was HK$4,599 Mil.
Property, Plant and Equipment(Net PPE) was HK$641 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$85 Mil.
Selling, General, & Admin. Expense(SGA) was HK$554 Mil.
Total Current Liabilities was HK$2,490 Mil.
Long-Term Debt & Capital Lease Obligation was HK$328 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)
=(2249.576 / 3877.282) / (1445.244 / 2730.041)
=0.580194 / 0.529385
=1.096

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)
=(321.371 / 2730.041) / (479.662 / 3877.282)
=0.117717 / 0.123711
=0.9515

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 - (5191.164 + 1153.601) / 6448.704) / (1 - (3823.567 + 641.029) / 4599.264)
=0.016118 / 0.02928
=0.5505

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
=3877.282 / 2730.041
=1.4202

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))
=(85.353 / (85.353 + 641.029)) / (90.972 / (90.972 + 1153.601))
=0.117504 / 0.073095
=1.6076

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)
=(1163.989 / 3877.282) / (554.41 / 2730.041)
=0.300207 / 0.203078
=1.4783

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)
=((399.674 + 3508.031) / 6448.704) / ((327.937 + 2489.565) / 4599.264)
=0.605967 / 0.612598
=0.9892

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
=(-1207.827 - 0 - -580.42) / 6448.704
=-0.097292

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.

Pateo Connect Technology (Shanghai) has a M-score of -2.69 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 -2.69 mean?
Pateo Connect Technology (Shanghai) (HKSE:02889) has a Beneish M-Score of -2.69 as of Aug. 13, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Pateo Connect Technology (Shanghai) and its competitors. According to the industry distribution chart, Pateo Connect Technology (Shanghai) ranks #1037 out of 2634 companies in the Software industry, placing it in the top 39.4%.
Is Pateo Connect Technology (Shanghai)'s Beneish M-Score too high?
Pateo Connect Technology (Shanghai)'s current Beneish M-Score is -2.69. Based on the distribution chart, Pateo Connect Technology (Shanghai) ranks #1037 out of 2634 companies in the Software industry, which is above the industry midpoint. Overall, Pateo Connect Technology (Shanghai) has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Pateo Connect Technology (Shanghai)'s Beneish M-Score compare to QH and SHOP?
According to the Software industry distribution chart, Pateo Connect Technology (Shanghai) ranks #1037 out of 2634 companies for Beneish M-Score. This puts Pateo Connect Technology (Shanghai) in the upper 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 Software company?
A good Beneish M-Score depends on the Software 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 Pateo Connect Technology (Shanghai) and its competitors. Pateo Connect Technology (Shanghai)'s current Beneish M-Score is -2.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pateo Connect Technology (Shanghai) stock overvalued right now?
Pateo Connect Technology (Shanghai) (HKSE:02889) has a current Beneish M-Score of -2.69. The current Beneish M-Score is -2.69. Pateo Connect Technology (Shanghai)'s overall GF Score™ is 8/100 with 2 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 Pateo Connect Technology (Shanghai) (HKSE:02889), the current Beneish M-Score is -2.69 as of Aug. 13, 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.

Pateo Connect Technology (Shanghai) Business Description

Address 866 East Changzhi Road, 37th Floor, Room 3701, AIA Financial Center, Hongkou District, Shanghai, CHN, 200030
Pateo Connect Technology (Shanghai) Corp is a smart cockpit solution provider in China. The company is a integrated IoV service provider offering active safety systems, automotive electronics, low-level automotive software, intelligent operating system (OS), application software, domestic & international Internet automobile ecosystem, mobile phone connectivity, communications operation, TSP platform development & operation services, cloud computing, big data, content services integration & operation, map engine software & cloud architecture, embedded voice & cloud platform solutions, to AI (Artificial Intelligence). Its segments include Smart cockpit solutions, Vehicle connectivity support services, and Others.
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HK$188.70
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