Sino Grandness

[heifien91]

Quite surprised that the news appeared on reuters already, yet management has not announced it.

http://www.reuters.com/article/2014/10/0...2020141001

(not vested)

[Wildreamz]

http://infopub.sgx.com/FileOpen/Sino_Gra...eID=316875

Placement at 8% Discount to last closed price and a huge discount to intrinsic value... (if their books are true, of course, of course)

I guess they had no choice due to their poor share performance over the past year.

Personally, private placement like this give me added confidence on the legitimacy of their accounting.

5 Dividend Policy
Pursuant to the Subscription Agreements, for as long as certain shareholding requirements as
set out in the respective Subscriptions Agreement are satisfied, the Company shall have the
following dividend policy, which will be announced by the Company, that, whenever feasible,
the Company will declare and pay dividends to the Shareholders in an amount of at least 10%
of the consolidated net profits of the Company as reflected in the audited accounts of the

Curious, does that applies to ordinary share holders like us too?

(Vested)

[edragon]

Still playing in a cinema near you...saw the show and exited in 2012 with some spare change of course. IMO, the best way for this type of wayang.

[specuvestor]

Strange placement... does this mean Garden Fresh IPO is no more and they are raising cash to pay Goldman?

[LLS]

now HK is in a mess, I wonder how they are gonna IPO in a weak market

[greengiraffe]

http://www.businesstimes.com.sg/premium/...s-20141003

PUBLISHED OCTOBER 03, 2014
Two Thai firms to invest in Sino Grandness
BYMALMINDERJIT SINGH
msingh@sph.com.sg @MalminderjitBT

MAINBOARD-LISTED Sino Grandness Food Industry Group announced on Thursday that Thai conglomerates Thoresen Thai Agencies (TTA) and PM Group will take stakes of 9 per cent and 3.77 per cent respectively in the company through a private placement of newly issued shares.
The Shenzhen-based producer and distributor of food and beverage (F&B) products said that it had entered into two subscription agreements with the Thai entities to issue a total of 86 million new ordinary shares of the company to both subscribers at the placement price of S$0.61 per share.
Upon completion of the placement exercise, TTA shall become the second-largest shareholder of Sino Grandness with a 9 per cent stake and one board seat. Prayudh Mahagitsiri, honorary chairman of TTA and the founder and chairman of PM Group, who is known as "the Coffee King of Thailand", shall be appointed as honorary chairman of Sino Grandness.
"The F&B industry in China continues to fuel exciting growth and offers growth opportunities for companies like Sino Grandness that has established a strong competitive edge. I am particularly impressed with Sino Grandness' beverage products positioning targeting increasingly health-conscious consumers through offering juices with mid-high juice content which are perceived to be more nutritional and comprising unique fruits such as loquats and hawthorns," Mr Mahagitsiri explained.

[Wildreamz]

now HK is in a mess, I wonder how they are gonna IPO in a weak market

Agree it is going to be a problem, but whether the IPO succeed or not, is technically not the most critical of issues. Especially with the added share capital.

[portuser]

now HK is in a mess, I wonder how they are gonna IPO in a weak market

Agree it is going to be a problem, but whether the IPO succeed or not, is technically not the most critical of issues. Especially with the added share capital.

The terms of the convertible bonds require Sino Grandness to give up a quarter of Garden Fresh to bondholders, prior to Garden Fresh being listed.

In 2013, Sino Grandness recorded a 18% net profit margin (RMB 400m profit on sales of RMB 2,261m). As beverage (produced by Garden Fresh) has a much higher margin than exported canned vegetables, profit belonging to Garden Fresh might amount to RMB 276m (with a 20% net margin on beverage sales of RMB 1,382m).

Garden Fresh sales surged 50% (to RMB 869m) in the first half of this year. In particular, 2Q sales reached a record of RMB 534m following the successful Chengdu trade fair in March.

If Garden Fresh ends up with sales of RMB 1,740m this year, a profit of RMB 348m can be expected. 15 times of this will give rise to a valuation of RMB 5,220m, and a quarter of it will be RMB 1,305m.

This is much higher than the sum payable to bondholders in the event of IPO not getting through.

A failed IPO does not spell doom if Garden Fresh is a valuable concern. It seems that the Thai investors think well of Garden Fresh and want to help it grow further.

[[DY]]

Why does the private placement give you added confidence in the accounting?

and yes, the dividend policy would apply equally to everyone.

http://infopub.sgx.com/FileOpen/Sino_Gra...eID=316875

Placement at 8% Discount to last closed price and a huge discount to intrinsic value... (if their books are true, of course, of course)

I guess they had no choice due to their poor share performance over the past year.

Personally, private placement like this give me added confidence on the legitimacy of their accounting.

5 Dividend Policy
Pursuant to the Subscription Agreements, for as long as certain shareholding requirements as
set out in the respective Subscriptions Agreement are satisfied, the Company shall have the
following dividend policy, which will be announced by the Company, that, whenever feasible,
the Company will declare and pay dividends to the Shareholders in an amount of at least 10%
of the consolidated net profits of the Company as reflected in the audited accounts of the

Curious, does that applies to ordinary share holders like us too?

(Vested)

[Wildreamz]

Why does the private placement give you added confidence in the accounting?

and yes, the dividend policy would apply equally to everyone.

Thanks. Because buy-side analysts that private investors employ usually do more thorough research, due to their own stake in the investment.