Sino Grandness

[leeeta]

For those who bought
the
at feeling now

36 - 40 Euphoria
41 - 45 Thrill
46 -50 Excitement
51 - 55 optimism
56 - 60 Relief
60 - 65 Hope
> 65 Depression

lol

[Wildreamz]

For those who bought
the
at feeling now

36 - 40 Euphoria
41 - 45 Thrill
46 -50 Excitement
51 - 55 optimism
56 - 60 Relief
60 - 65 Hope
> 65 Depression

lol

I don't deny that our mood will be greatly dependent on the price differential between our entry price and the market price.

But as investors, shouldn't we be more concerned about the actual fundamentals of the company? I am relieved that the placement went smoothly as planned, not because of the cash it brings in, but because of the financial backing, and the strategic synergy of this new shareholder.

Lets hope that the coming years are fruitful.

(vested)

[specuvestor]

Bounce post placement is not unexpected. Nonetheless it is a positive development but VBs should remember that the fat lady sings later in June/July which is still a binary event so strategise carefully

Looks like EGM is required and with lower placement proceed without increasing size to compensate, seems company short term cashflow is not an issue ie no pressure from bondholders as of now. Trading stock now until confirmation of "show me the money" from the Thais before January. EGM will also allow vested parties to ask more questions.

[portuser]

http://www.nextinsight.net/index.php/sto...estors-etc

Reply by Sino Grandness to question posed by Nextinsight on options in the event of IPO of Garden Fresh not materialising: .

Question: If Garden Fresh gets listed, bondholders will take a 23.4% stake in Garden Fresh.
After booking RMB 1,492m in revenue in the first 9 months, Garden Fresh may end 2014 with sales of RMB 1,900m, and a profit of RMB 342m. A conservative 12 times value will amount to RMB 4,104m.
If the proposed IPO does not materialise, will you look for an investor willing to pay RMB 960m (RMB 4,104m * 23.4%) for the 23.4% stake in Garden Fresh?

(This amount will be more than the maximum amount of RMB 650m to redeem the bonds, leaving a tidy sum for a special dividend to shareholders of Sino Grandness. If IPO professionals submit the application, the redemption amount will be much smaller.)

Answer: We are not able to speculate on the valuation at this point in time. But hypothetically speaking, based on the figures you provided, if a company has a net profit of RMB342m and is valued at 12x PE, then its market cap will be RMB4.1 billion and 23.4% of that is worth RMB960m and this amount is more than the RMB650m bond redemption amount you pointed out.
As a listed company, we are constantly engaged in various discussions with potential business partners and investors. The company shall provide updates as and when there are material developments.
If its numbers are real, then Garden Fresh is a valuable business likely to attract suitors.


If its numbers are real, then Garden Fresh is a valuable business likely to attract suitors.

Earlier, the company has expressed confidence in securing bank loans for possible bond redemption, as it has no significant borrowings other than the bonds.

Reply to question on what PM Group will bring to the table:

Question: Sino Grandness has issued 86m placement shares to two Thai companies controlled by Mr Prayudh Mahagitsiri. One of the companies, PM Group, is known for its partnership with Nestle as the sole supplier of Nescafe since 1989. The background of PM Group is taken from its website http://www.pm-groups.com/pmgroups/consumer.php

What benefits will PM Group bring to Sino Grandness, and vice versa?

Answer: Both parties shall work on the development of new products and new markets. Additionally, PM Group Chairman Mr Prayudh Mahagitsiri has become Honorary Chairman of Sino Grandness. Our company can leverage on his business contacts and global network, such as his partnership with Nestle, in order to expand our business beyond the PRC market.

For PM Group, it represents an opportunity to invest in an industry with a positive outlook. These were Mr Mahagitsiri's comments in a previous announcement:

“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. I believe the future remains bright for Sino Grandness and I am pleased to assist them in their future journey.”

[CY09]

Pro rating SFIG's 9Months cash flow statement, one can say the current business generates about RMB 880M operating cashflow before working capital changes and needs about 100M CAPEX and 170M for Income taxes. Furthermore with the knowledge SFIG will not be doing any massive expansion in the near term, it is reasonable to estimate the business will generate RMB 600M cash annually. If bondholder's redemption is RMB 650M and SFIG has set aside about RMB 70M cash from the thai tycoon placement as working capital + RMB 111M of its current cash, SFIG should not have problems paying out bondholders.

If SFIG does go on the unfortunate road of redeeming bondholder's proceeds on June 15, I would not want to see SFIG drawing down RMB 350M of loans or more to fund the redemption. If they do so, it will signal a high danger that something is wrong

[specuvestor]

Agree, cashflow is going to be even bigger than king for this one. Monitoring where the cash is going or coming from will be more important than PnL

[leeeta]

http://www.nextinsight.net/index.php/sto...estors-etc

Reply by Sino Grandness to question posed by Nextinsight on options in the event of IPO of Garden Fresh not materialising: .

Question: If Garden Fresh gets listed, bondholders will take a 23.4% stake in Garden Fresh.
After booking RMB 1,492m in revenue in the first 9 months, Garden Fresh may end 2014 with sales of RMB 1,900m, and a profit of RMB 342m. A conservative 12 times value will amount to RMB 4,104m.
If the proposed IPO does not materialise, will you look for an investor willing to pay RMB 960m (RMB 4,104m * 23.4%) for the 23.4% stake in Garden Fresh?

(This amount will be more than the maximum amount of RMB 650m to redeem the bonds, leaving a tidy sum for a special dividend to shareholders of Sino Grandness. If IPO professionals submit the application, the redemption amount will be much smaller.)

Answer: We are not able to speculate on the valuation at this point in time. But hypothetically speaking, based on the figures you provided, if a company has a net profit of RMB342m and is valued at 12x PE, then its market cap will be RMB4.1 billion and 23.4% of that is worth RMB960m and this amount is more than the RMB650m bond redemption amount you pointed out.
As a listed company, we are constantly engaged in various discussions with potential business partners and investors. The company shall provide updates as and when there are material developments.
If its numbers are real, then Garden Fresh is a valuable business likely to attract suitors.


If its numbers are real, then Garden Fresh is a valuable business likely to attract suitors.

Earlier, the company has expressed confidence in securing bank loans for possible bond redemption, as it has no significant borrowings other than the bonds.

Reply to question on what PM Group will bring to the table:

Question: Sino Grandness has issued 86m placement shares to two Thai companies controlled by Mr Prayudh Mahagitsiri. One of the companies, PM Group, is known for its partnership with Nestle as the sole supplier of Nescafe since 1989. The background of PM Group is taken from its website http://www.pm-groups.com/pmgroups/consumer.php

What benefits will PM Group bring to Sino Grandness, and vice versa?

Answer: Both parties shall work on the development of new products and new markets. Additionally, PM Group Chairman Mr Prayudh Mahagitsiri has become Honorary Chairman of Sino Grandness. Our company can leverage on his business contacts and global network, such as his partnership with Nestle, in order to expand our business beyond the PRC market.

For PM Group, it represents an opportunity to invest in an industry with a positive outlook. These were Mr Mahagitsiri's comments in a previous announcement:

“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. I believe the future remains bright for Sino Grandness and I am pleased to assist them in their future journey.”

Hi Portuser,

The rpt did not mention "If its numbers are real, then Garden fresh is a valuable business."' Is this your personal opinion?

Thanks.

[portuser]

Leeeta

Thank you for pointing out.

"If its numbers are real, then Garden Fresh is a valuable business likely to attract suitors." is certainly not part of the reply by the company.

Unable to recall why the sentence appeared twice, with the one in italic ending up as part company's reply.

Glasses are due for replacement.

[leeeta]

Sinog made two announcements ..setting up two subsidiaries - one in HK and another in Cayman islands.. Something interesting coming..

SINO GRANDNESS FOOD INDUSTRY GROUP LIMITED
(Company Registration No. 200706801H)
(Incorporated in the Republic of Singapore)
INCORPORATION OF A NEW SUBSIDIARY
- GARDEN FRESH GROUP CO., LIMITED
The Board of Directors of Sino Grandness Food Industry Group Limited (the &ldquo Company&rdquo ) wishes to
announce that it has incorporated a wholly-owned subsidiary, Garden Fresh Group Co., Limited (鲜 绿
园 集 团 股 份 有 限 公 司 ) in Hong Kong, a company with a registered capital of HKD1.00 (the
&ldquo Transaction&rdquo )



and another one

SINO GRANDNESS FOOD INDUSTRY GROUP LIMITED
(Company Registration No. 200706801H)
(Incorporated in the Republic of Singapore)
INCORPORATION OF A NEW SUBSIDIARY
- GARDEN FRESH GROUP HOLDING CO., LTD
The Board of Directors of Sino Grandness Food Industry Group Limited (the &ldquo Company&rdquo ) wishes to
announce that it has incorporated a wholly-owned subsidiary, Garden Fresh Group Holding Co., Ltd (
鲜 绿 园 集 团 控 股 有 限 公 司 ) in Cayman Islands, a company with a issued and paid-up capital of
HKD380,000.00 (the &ldquo Transaction&rdquo ).
The Company&rsquo s wholly-owned subsidiary, Grandness (HK) Industry Co., Limited, owns 100% equity
interest in Garden Fresh Group Holding Co., Ltd.
The principal activity of Garden Fresh Group Holding Co., Ltd is that of an investment holding
company


Anyone could read into this?

[portuser]

Garden Fresh (HK) is currently the business owner of beverage business. It is wholly owned by Sino Grandness through Grandness (HK) Industry, an intermediate company:


.....................................Sino Grandness (incorporated in Singapore)
.............................................................*
.................................................100%.....*
..............................................................*
.................................Grandness (HK) Industry (incorporated in HK)
..............................................................*
................................................100%......*
..............................................................*
....................................Garden Fresh (HK) (incorporated in HK)
........................................*.....................................................*
.........................100%.....*...........*................................100%.....*
....................................*.............................................................*
...............Garden Fresh (Shenzhen)................................Garden Fresh (Hubei)
...................(incorporated in PRC) .................................(incorporated i n PRC)
..................................*............................................................*
............................90%..*.................................................10%*
.......................................*.................................................*
................................................Garden Fresh (Sichuan)
..................................................(incorporated in PRC)


The announcements on 19 Jan 15 on the incorporation of Garden Fresh Group Holdings in Cayman Islands as well as the incorporation of Garden Fresh Group in HK, resulting in the following structure, were made in a routine manner:


...............................Sino Grandness (incorporated in Singapore)
...............................................*.........................*
................................100%.....*.................100%.....*
...........................................*...................................*
.........................................*........Grandness (HK) Industry (incorporated in HK)
.......................................*...........................................*
.....................................*..................................100%....*
..................................*.................................................*
Garden Fresh Group Holding Co Ltd........................Garden Fresh Group Co Ltd
..(incorporated in Cayman Islands)...........................(incorporated in HK)

Where will Garden Fresh (HK) be in ultimately?
Garden Fresh(HK), the issuer of the two convertible bonds, is aiming for listing on an established stock exchange.