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Hezong Science and Technology Co (SZSE:300477) Beneish M-Score : -1.01 (As of Oct. 31, 2024)


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What is Hezong Science and Technology Co 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.

Warning Sign:

Beneish M-Score -1.01 higher than -1.78, which implies that the company might have manipulated its financial results.

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

SZSE:300477' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22   Med: -1.99   Max: -0.97
Current: -1.01

During the past 13 years, the highest Beneish M-Score of Hezong Science and Technology Co was -0.97. The lowest was -3.22. And the median was -1.99.


Hezong Science and Technology Co Beneish M-Score Historical Data

The historical data trend for Hezong Science and 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.

* Premium members only.

Hezong Science and Technology Co Beneish M-Score Chart

Hezong Science and Technology Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.50 -2.18 -2.01 -2.39 -1.13

Hezong Science and Technology Co Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -2.40 -1.73 -1.13 -1.03 -1.01

Competitive Comparison of Hezong Science and Technology Co's Beneish M-Score

For the Electrical Equipment & Parts subindustry, Hezong Science and 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.


Hezong Science and Technology Co's Beneish M-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hezong Science and Technology Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Hezong Science and Technology Co's Beneish M-Score falls into.



Hezong Science and 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 Hezong Science and 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 * 0.8455+0.528 * 1.9456+0.404 * 1.7304+0.892 * 1.1267+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8992+4.679 * 0.157566-0.327 * 1.1497
=-1.01

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was ¥1,600 Mil.
Revenue was 739.982 + 702.062 + 869.017 + 785.012 = ¥3,096 Mil.
Gross Profit was 59.613 + 58.704 + 66.812 + 88.401 = ¥274 Mil.
Total Current Assets was ¥2,724 Mil.
Total Assets was ¥6,975 Mil.
Property, Plant and Equipment(Net PPE) was ¥2,644 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥302 Mil.
Total Current Liabilities was ¥4,168 Mil.
Long-Term Debt & Capital Lease Obligation was ¥653 Mil.
Net Income was -74.597 + -58.867 + -465.97 + -100.483 = ¥-700 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ¥0 Mil.
Cash Flow from Operations was 109.022 + -72.579 + -1552.756 + -282.7 = ¥-1,799 Mil.
Total Receivables was ¥1,679 Mil.
Revenue was 799.563 + 501.394 + 832.848 + 614.125 = ¥2,748 Mil.
Gross Profit was 62.812 + 103.389 + 121.247 + 184.888 = ¥472 Mil.
Total Current Assets was ¥4,727 Mil.
Total Assets was ¥8,153 Mil.
Property, Plant and Equipment(Net PPE) was ¥2,340 Mil.
Depreciation, Depletion and Amortization(DDA) was ¥0 Mil.
Selling, General, & Admin. Expense(SGA) was ¥298 Mil.
Total Current Liabilities was ¥4,023 Mil.
Long-Term Debt & Capital Lease Obligation was ¥878 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)
=(1599.953 / 3096.073) / (1679.489 / 2747.93)
=0.516768 / 0.611183
=0.8455

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)
=(472.336 / 2747.93) / (273.53 / 3096.073)
=0.171888 / 0.088347
=1.9456

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 - (2723.66 + 2643.815) / 6975.447) / (1 - (4726.741 + 2340.499) / 8153.388)
=0.230519 / 0.133214
=1.7304

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
=3096.073 / 2747.93
=1.1267

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))
=(0 / (0 + 2340.499)) / (0 / (0 + 2643.815))
=0 / 0
=1

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)
=(301.785 / 3096.073) / (297.876 / 2747.93)
=0.097473 / 0.1084
=0.8992

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)
=((653.417 + 4167.905) / 6975.447) / ((878.219 + 4023.477) / 8153.388)
=0.691185 / 0.601185
=1.1497

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
=(-699.917 - 0 - -1799.013) / 6975.447
=0.157566

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.

Hezong Science and Technology Co has a M-score of -1.01 signals that the company is likely to be a manipulator.


Hezong Science and Technology Co Beneish M-Score Related Terms

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Hezong Science and Technology Co Business Description

Traded in Other Exchanges
N/A
Address
D-1211, Jiahua Building, Shangdi Sanjie, Haidian District, Beijing, CHN, 100085
Hezong Science and Technology Co Ltd is a high tech company providing technological solutions to their customers of power distribution and control equipment in the power industry. It is one-stop solution provider of power distribution systems in China, they offer products ranging from gas insulated ring main units, MV/LV air insulated switchgear, prefabricated substation, pole-mounted switches, distribution automation terminals (FTU/DTU), distribution transformers, to cable branching switchgear.
Executives
Wei Qiang Directors, executives
Han Guo Liang Directors, executives
Zhang Shu Directors, Directors, and Executives
Gao Xing Director
Zhang Xiao Yi Executives
Wang Wei Ping Supervisors
Zhang Ren Zeng Director
He Yun Director
Zhang Quan Zhong Supervisors
Liu Ze Gang Director
Liu Wei Dong Independent director
Wang Xiao Xin Supervisors

Hezong Science and Technology Co Headlines

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