Sino Grandness

[portuser]

Oldman9

You have asked whether sales growth of Garden Fresh juices will stagnate. 


As a new product with therapeutic value, loquat juice should have ample scope to grow in China if loquat supply is not short. (After Garden Fresh made juice from loquat, demand for the fruit has risen as a significant portion of the supply is diverted for juice production.).

Besides pure loquat juice, Garden Fresh has blended loquat with pear, peach, strawberry, mango, kamquat and lemon to appeal to a broader group of consumers. Other fruits may also be added to expand the range of blend juices.  

The China National Research Institute of Food & Fermentation is involved in product development, and is being represented on Sino's board by Dr Liu Ling (刘凌), its director of hi-tech food engineering. (Dr Liu studied agriculture in Tokyo University and has written extensively on matters on food production.) 

Product development is therefore not done according to whims and fancies.  

By the way, Dr Liu's predecessor on Sino's board, Mr Zeng Ming, resigned from the Institute to join Sino Grandness to spearhead sales.  

Garden Fresh plans to go beyond China, with Southeast Asia as its first destination. 

Thoresen Thai Agencies (TTA), controlled by Mr Prayudh Mahagitsiri, seemed keen to distribute Garden Fresh products in Thailand (as well as sell Thai food products in China through Sino's distribution channels).  

Mr. Kamolsut Dabbaransi, Prayudh's son-in-law, is now heading the newly-created F&B division in TTA. He should be knowledgeable having worked several years in Green Spot, one of the leading beverage companies in Thailand.

[BlueDogMeow]

cost of capital in china is very low.

Cost of capital in China is very low? This is not as observed with many China-based companies.

The effective interest rate for RMB loan, is the highest among EUR, SGD, USD, and HKD, at about 4-6%, for YZJ

CMP has re-financed their RMB loan, to reduce its cost of capital.

The statement is misleading, at best

(not vested)

cost of capital cannot be seen in silo as an absolute but put in context of the country's inflation. 4-6% interest rate for a company in china is very low because inflation inflate the debt away.

[crubs]

cost of capital in china is very low.

Cost of capital in China is very low? This is not as observed with many China-based companies.

The effective interest rate for RMB loan, is the highest among EUR, SGD, USD, and HKD, at about 4-6%, for YZJ

CMP has re-financed their RMB loan, to reduce its cost of capital.

The statement is misleading, at best

(not vested)

cost of capital cannot be seen in silo as an absolute but put in context of the country's inflation. 4-6% interest rate for a company in china is very low because inflation inflate the debt away.

Another misleading statement by BDM. Inflation rate in China was below 2% in 2014 and is expected to be meaningfully lower in 2015.

[CityFarmer]

cost of capital in china is very low.

Cost of capital in China is very low? This is not as observed with many China-based companies.

The effective interest rate for RMB loan, is the highest among EUR, SGD, USD, and HKD, at about 4-6%, for YZJ

CMP has re-financed their RMB loan, to reduce its cost of capital.

The statement is misleading, at best

(not vested)

cost of capital cannot be seen in silo as an absolute but put in context of the country's inflation. 4-6% interest rate for a company in china is very low because inflation inflate the debt away.

Let's touch on the inflation of the currencies concerned, in 2014

China : 2.0%
USA : 1.6%
H.K. : 4.4%

Source: Worldbank data (http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG)
* I opt out Euro, since the above should be sufficient to make a point

The cost of capital in China is higher among them, mainly due to inefficiency of the credit eco-system, rather than the "perceived inflation" of China, IMO

[BlueDogMeow]

cost of capital in china is very low.

Cost of capital in China is very low? This is not as observed with many China-based companies.

The effective interest rate for RMB loan, is the highest among EUR, SGD, USD, and HKD, at about 4-6%, for YZJ

CMP has re-financed their RMB loan, to reduce its cost of capital.

The statement is misleading, at best

(not vested)

cost of capital cannot be seen in silo as an absolute but put in context of the country's inflation. 4-6% interest rate for a company in china is very low because inflation inflate the debt away.

Let's touch on the inflation of the currencies concerned, in 2014

China : 2.0%
USA : 1.6%
H.K. : 4.4%

Source: Worldbank data (http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG)
* I opt out Euro, since the above should be sufficient to make a point

The cost of capital in China is higher among them, mainly due to inefficiency of the credit eco-system, rather than the "perceived inflation" of China, IMO

consumer price inflation is not very relevant because it is not indicative of the effects of household financial repression. but i get what you mean.

[Young Investor]

BDM,
When Cityfarmer pointed out that you were wrong in stating that cost of capital in China is low, you responded that "cost of capital cannot be seen in silo as an absolute but put in context of the country's inflation. 4-6% interest rate for a company in china is very low because inflation inflate the debt away."

When Cityfarmer cited China's low inflation rate of 2%, you replied that "consumer price inflation is not very relevant because it is not indicative of the effects of household financial repression."

When you first made the point on low cost of capital in China, what inflation rate you had in mind, and where is the source.

Thank you.

[BlueDogMeow]

BDM,
When Cityfarmer pointed out that you were wrong in stating that cost of capital in China is low, you responded that "cost of capital cannot be seen in silo as an absolute but put in context of the country's inflation. 4-6% interest rate for a company in china is very low because inflation inflate the debt away."

When Cityfarmer cited China's low inflation rate of 2%, you replied that "consumer price inflation is not very relevant because it is not indicative of the effects of household financial repression."

When you first made the point on low cost of capital in China, what inflation rate you had in mind, and where is the source.

Thank you.

http://blog.mpettis.com/2013/12/monetary...epression/

http://www.amazon.com/The-Great-Rebalanc...1491531339

[Young Investor]

BDM,
Can you pl highlight the parts in the articles which provide the numerical value of inflation rate that lead you to say that "cost of capital cannot be seen in silo as an absolute but put in context of the country's inflation. 4-6% interest rate for a company in china is very low because inflation inflate the debt away."

Thank you.

[leeeta]

suggest admin to move/create a special thread to discuss cost of capital ...so that other experts can contribute as well. thanks.

[CityFarmer]

suggest admin to move/create a special thread to discuss cost of capital ...so that other experts can contribute as well. thanks.

I will monitor it and no new thread as-of-now. The cost of capital discussion, is within the context of the company. Once the discussion goes way beyond that, I will do as suggested.

My intention to clarify on the view, is to make sure all buddies here, get no misleading info. Once clarified, we should move on, to other more fruitful discussions, rather than hang-on with the topic, as a mean to pin down anyone.

Let's move on.

Regards
Moderator