Sino Grandness

[alex]

Hi Oldman,

Thanks for the snapshot. Erase all doubts.

Not sure if there will be a write up by nextinsight. Seems that they are quite into Sino Grandness. Hopefully they provide more insights into the IPO after the EGM.

Any bros here have anything to share about the EGM - Key takeaways?

[CY09]

While it is nice that an EGM has been convened on Garden Fresh's IPO with presentations done, I am still skeptical on the materialization of this IPO.

For current shareholders, the good news is that 10% payout as dividends should be announced on the 26th.

[crubs]

Attended the EGM. Below are the key points of the meeting

1) Management has confirmed the use of adjusted profits as described by portuser and myself to calculate the IPO valuation of Garden Fresh

2) The IPO valuation will be based on Garden Fresh's 2015 adjusted profits and 2016 forecast.

3) No firm date was given, but shareholders should look out for certain milestones which will be announced when reached. They are a) submission of draft prospectus and b) approval by the exchange

4) Sino Grandness intends to redeem a small portion of the CB's prior to IPO.

5) There will be dividends for this year and the intention to give out a special dividend upon IPO is still there.

6) Garden Fresh still has a long growth trajectory and management has plans for its other businesses.

The potential for long term growth is there and the future looks bright.

[crubs]

While it is nice that an EGM has been convened on Garden Fresh's IPO with presentations done, I am still skeptical on the materialization of this IPO.

For current shareholders, the good news is that 10% payout as dividends should be announced on the 26th.

CY09, may I know the reasons for your skepticism ?

[crubs]

Seems that IPO of Garden Fresh seems highly probable. My guess is the IPO is a near certainty which is the reason for the EGM to be held. But there is always a likelihood that IPO may be called off although this is a rare instance but happened before.

Take for example, the 'TransCab' IPO in late 2014 which have already been launched and accepting public subscription but called off in the eleventh hour due to some accounting issues.

Just my neutral view. However, the share price is climbing and bodes well to those vested.

You are right, it's never a guarantee. This is a judgement call investors have to make. Once the IPO happens, Sino Grandness won't be at $0.44 anymore, so we have to weigh the risk reward here. My opinion is that even though the IPO timing is not clear, it will eventually be done.

One thing is clear though, the due diligence process all the way to this EGM (this EGM won't happen if the IPO sponsors are not satisfied with the due diligence) is proof that Sino Grandness is not a fraud.

[CY09]

While it is nice that an EGM has been convened on Garden Fresh's IPO with presentations done, I am still skeptical on the materialization of this IPO.

For current shareholders, the good news is that 10% payout as dividends should be announced on the 26th.

CY09, may I know the reasons for your skepticism ?

Firstly, went to HK August last year, visibility of the products in wellcome and 7&11 are not as widespread as talked about. You can walk around 7&11 outlets to view.

Depressed economic conditions may hinder the IPO unlike a year ago.

[Boon]

Well, there’s two sides to every story, so they say.
 
Which one did you want to believe?
 
Which one suited you best?
 
Which one suited the “bond issuer” best?
 
Which one suited the “bondholders” best?
_____________________________________________________________________________________________
 
Listco (FY2013) :
Net Profit After tax = RMB 153.5
 
Non Cash interest Expense related to CB ~ RMB 88 m
 
Changes in fair value of option derivatives in relation to convertible bonds ~ RMB 43 m
_____________________________________________________________________________________________
 
One side of the story – from bond issuer:
 
For the purpose of determining aggregate conversion proportion of CB1 & CB2 of Listco in FY2013, in accordance to the contract,
 
Reference Net Profit of Listco in FY2013 = RMB (153.5 + 130.4) = RMB 283.9 m ( > RMB 250 m)
 
Hence, conversion should be based on RMB 1,500 million.
________________________________________________________________________________________________________________________________
 
The other side of the story – from bondholders:
 
For the purpose of determining aggregate conversion proportion of CB1 & CB2 of Listco in FY2013, in accordance to the contract,
 
Reference Net Profit of Listco in FY2013 = RMB (153.5 + 43) = RMB 196.5 m  ( < RMB 200 m)
 
Hence, conversion should be based on “5 x Reference Net Profit”
________________________________________________________________________________________________________________________________
  
Unless the “bondholders” have agreed to regard the bond issuer’s story as the “truth”, otherwise everything is just as “fluid” as before………Ha-ha!
________________________________________________________________________________________________________________________________

[CityFarmer]

While it is nice that an EGM has been convened on Garden Fresh's IPO with presentations done, I am still skeptical on the materialization of this IPO.

For current shareholders, the good news is that 10% payout as dividends should be announced on the 26th.

CY09, may I know the reasons for your skepticism ?

Firstly, went to HK August last year, visibility of the products in wellcome and 7&11 are not as widespread as talked about. You can walk around 7&11 outlets to view.

Depressed economic conditions may hinder the IPO unlike a year ago.

It is probably the worst time to IPO at HKSE now. The situation might sustain for a while in months at least, IMO.

(not vested)

[Young Investor]

Hi Mr Boon

I think your post is unhelpful at all.

Were you not at the EGM yesterday?

If there is still disagreement about what was the profit to be used, Sino Grandness would have committed a serious breach in telling a lie yesterday.

[Boon]

Hi Mr Boon

I think your post is unhelpful at all.

Were you not at the EGM yesterday?

If there is still disagreement about what was the profit to be used, Sino Grandness would have committed a serious breach in telling a lie yesterday.

Hi Young Investor,

Did the Management make a representation at the EGM that the bondholders had agreed to use RMB 283.9 m as the FY2013 Reference Net Profit of Listco in determining the aggregate conversion proportion of CB1 & CB2?
 
If they did and if it happened that this wasn’t the case (i.e. the bondholders didn’t agree to it and had always insisted that the Reference Net Profit should be RMB 196.5 m), then the Management would be deemed to have committed “misrepresentation.”
 
If the Reference Net Profit of RMB 283.9 merely represents a view or judgment or appraisal formed on the part of the Management on the subject matter, then if it happened to be wrong, they could not be deemed to have committed “misrepresentation”.
 
There is a difference. 

That’s why I have added:
 
“Unless the “bondholders” have agreed to regard the bond issuer’s story as the “truth”, otherwise everything is just as “fluid” as before………Ha-ha!”
______________________________________________________________________________________________________________________________________