Sino Grandness

[Curiousparty]

in the long run, Mr Stock Market is a "weighing machine".

SinoG would get "weighted" correctly one day. This drama may continue for a while...So interesting to watch...

[weijian]

Reason (b) sounds deja vu to me? Just for the record, I am not establishing any links between both companies. My memories have been convoluting alot recently and i thought it would do me better to record such independent events down.

dejavu? https://www.valuebuddies.com/thread-1783...#pid142619

APPLICATION FOR EXTENSION OF TIME TO HOLD ANNUAL GENERAL MEETING FOR FINANCIAL YEAR ENDED 31 DECEMBER 2018 AND RELEASE OF RESULTS ANNOUNCEMENT FOR FIRST QUARTER ENDED 31 MARCH 2019

(a) The Company is currently working towards to address the default loan from Soleado Holdings Pte. Ltd. (as announced by the Company on 16 January 2019 and 23 January 2019);

(b) The Company experienced high staff turnover and reduced staff strength in the finance team of the Group in FY2018. The disruption of the staff movement has an impact on the accuracy of the financial information which causes delay in finalising the financial results for FY2018;

© As the current market capitalisation of the Group is lower than the net assets of the Group, the Company’s external auditors had requested formal valuations to be done on property, plant and equipment of the Company’s principal subsidiaries namely Grandness (Sichuan) Foods Co., Ltd., Grandness (Shanxian) Food Co., Ltd., Garden Fresh (Hubei) Food & Beverage Co., Limited and Grandness (Anhui) Foods Co., Ltd.;

(d) There will be a delay in finalising the financial statements and annual report for FY2018 as more time is needed by the Management and external auditor to obtain certain outstanding audit confirmation replies and to follow up on pending matters such as distributors site visit, other smaller subcontractor suppliers site visit and site visit with contractors for the deposit placed for plant and equipment and construction of buildings raised during the last Board meeting in order to satisfactory conclude the audit procedures and finalise the financial statements. The Company and its external auditor have been working very closely together and are currently addressing and resolving these matters; and

(e) The Company also requires time thereafter to print, perform accuracy checks, distributes its annual report and to observe the 14 days’ notice to its shareholders.

[specuvestor]

Quite remarkable that

1) They actually still able to get people to put money in. I mean there are always people wanting to sell funny stuff at Carousell but to actually have buyers, that's another thing altogether
https://links.sgx.com/1.0.0/corporate-an...uddies.com
2) OPMI reacted happy that they are diluted 17% at 4cts for time extension and another shot at the daytona adrenaline
3) the simple math of S$6.8m cant repay Soledo's US$20m loan seems lost in translation... so most likely they are only going to pay interest only. And few years back I guesstimated their cash burn is US$18m a year... maybe less now since so much turnover
4) they have very good long suffering shareholders including OPMI looking at the AGM vs the tone of other AGMs... cheering when stock up 20-40% (pick a number) forgetting and forgiving it's still down 40-90% (pick a number) from cost... where to find

[brattzz]

I want to know who actually throw away 6.8 milos..! 😂😂 JW asset mgmt, HK based

[dreamybear]

I wld find it weird if SGX allows this latest placement to go thru' and I am not even referring to the red flags valuebuddies had previously pointed out.

Even a non-finance person like me feels it's a bit strange.

According to the latest FY2018 results, the Co has lots of cash, and yet they are doing a placement at such a depressed price, diluting the existing shareholders further. The outstanding letter of demand from the Thais has no concrete updates to shareholders.  

Surely, there shd at least be some govt agencies somewhere doing some common sense checks on the Co right ? Afterall, we are supposed to be a world class financial hub.  

I am not vested, just that I find the Co seems to be able to "function blatantly".

[brattzz]

Why gov should give step in? It’s buyer aware! 😂😂😂 we cannot stop people from throwing money away!

[CY09]

SFIG recently released its full year 2018 Financial statement. On its balance sheet, it reported RMB 621,793,000 (s$124 million) of cash, this is equivalent to RMB0.78 of cash per share or about 15.7 Singapore cents per share. A cash injection of only 4 cents per share will erode the cash per share currently in SFIG. This dilutes the value of existing shares of shareholders. Furthermore, with such a high amount of cash reported, SFIG could have repaid the entire Soleado loan and interest (S$28million) - It does not need to raise money at all from a placement agent to repay Soleado.

Hence I do not understand the rationale of why SFIG needs to raise another s$2.7million for working capital when it already has so much cash in China. It would have been more plausible if SFIG has only raised s$4.05million to repay loans only.

Why is Soleado not Accepting shares but Asking for Straight Cash?

In addition, with SFIG reporting a high net asset value (NAV: 70 Singapore cents per share) and a huge amount of cash per share during the recent financial results, it raises questions as to why did SFIG and Soleado not accept SFIG shares for its repayment of $4.05 million.

Soleado's owner, is related to TTA, that is a recent major shareholder of SFIG and is privy to SFIG's financial results. TTA holds the chairman position in SFIG and holds one non-executive Director position in SFIG. Given that TTA has insider knowledge of SFIG and SFIG has reported a high NAV and Cash per share in its latest financial results; why is Soleado not accepting shares from SFIG for repayment but instead asking for cash? To the extent, that SFIG has to raise capital by issuing new shares to another party which will also erode TTA's equity value in SFIG.


Red Flags are showing

[brattzz]

TTA doesn’t care, they only want their cash back! 😅😅

[daiwa888]

From what I understand about China companies, especially those with majority or all of their operations in China, that would mean that their cash flows are mainly within China.

If the holding company is listed overseas such as in Hong Kong or Singapore exchange, those offshore cashflow requirements have to be funded by overseas income. However, if the Group has little or no overseas income, then the overseas cashflow/expenses will need to be funded either through offshore fund raising exercise (overseas loan or placement) or the PRC subsidiaries will need to apply to the PRC authorities to remit cashflow offshore.

In Sino Grandness case, I believe the placement proceeds are meant for their overseas cashflow requirement since they have sufficient cash balance within China.

[brattzz]

so the cash is there in China, but cannot use overseas, so must dilute by selling at 4cts??? Gosh!!