What is Next Technology Holding Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Next Technology Holding's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Next Technology Holding's Probability of Financial Distress (%)
For the Software - Application subindustry, Next Technology Holding's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) 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.
Next Technology Holding's Probability of Financial Distress (%) Distribution in the Software Industry
For the Software industry and Technology sector, Next Technology Holding's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Next Technology Holding's Probability of Financial Distress (%) falls into.
Next Technology Holding Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -23.67 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Next Technology Holding (Next Technology Holding) Business Description
Traded in Other Exchanges
N/A
Address
No. 18, Kechuang 10th Street, Room 101, Level 1 Building 8, Beijing Economic and Technological, Development Zone, Beijing, CHN, 100020
WeTrade Group Inc is engaged in providing technical services and solutions via its membership-based social e-commerce platform and chatGPT technical services. The company provides technology services to both individual and corporate users. It offers an international cloud-based intelligence system and independently developed a micro-business cloud intelligence system called the YCloud. The company also serves tourism, hospitality, livestreaming and short video, medical beauty, and traditional retail industries.
Executives
| Biming Guo |
director |
NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, BEIJING F4 100020 |
| Kean Tat Che |
director, officer: CFO and Executive Director |
NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000 |
| Yuxing Ye |
director |
NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000 |
| Donghui Wang |
director |
NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000 |
| Ning Qin |
director |
NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000 |
| Pijun Liu |
director, 10 percent owner, officer: CEO and Executive Director |
NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000 |
| Zhuo Li |
director, officer: COO and Executive Director |
NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000 |
| Daxue Li |
director |
NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000 |
| Zheng Dai |
director, 10 percent owner, officer: Chairman and Exec. Director |
NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000 |
| Hung Fai Choi |
director |
NO 1 GAOBEI SOUTH COAST, YI AN MEN 111 BLOCK 37, CHAO YANG DIST., BEIJING CITY F4 00000 |
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