Sino Grandness

[CY09]

Reserving my comments until 31 May 2016*.

SFIG has to prepare an IPO before then and the question at what valuation too

[Stirling]

Nay sayers all wrong so far. Look like market is convinced that IPO will be taking place. Whenever price softening there will be big buys mopping up the shares. Will the next milestone of IPO come quicker than expected?

When a fundamentally good stock was sold off sharply followed by a long correction, the share price can rebound very sharply once market start to recognize its merit as most of the sellers and stale bulls are gone.  As the volume pick up, many will start to jump in and even sceptics will jump in.  

Caveat Emptor. 

[CityFarmer]

What I am keen to know is who are the sponsors and auditor for the IPO? Thanks

I am equally keen to know, who are the sponsors and auditor for the IPO. I have not managed to find an answer here, as well as in Google search. May be I have missed the info. Anyone to enlighten?

FYI, appointment of sponsors, is the very 1st step in HKSE listing procedure. The company should disclosure the appointment, since IPO is the most relevant event now. Based on HKSE website, here is the time-line expected.

"Appointment of a sponsor at least 2 months before submission of an application and to notify the Exchange in writing within five business days of its appointment"

https://www.hkex.com.hk/eng/listing/list...t_main.htm

(not vested, and monitoring, anyone to clear the doubt?)

[specuvestor]

Looks like CF beat me to it

Congrats to all who are long. The important dates should be end April for 1Q results which I wrote should be good with writebacks on liability.

May 31 is also important as the date they pay for the restructured straight bonds.

AGM is the date I guess we will still be asking about the IPO process

Valeant can be winners for both skeptics and supporters depending on execution which to me is half the battle. But fundamentals and psychology is to know your enemy as thyself

Hi all

There is an article published on nextinsight on repayment terms.
Have a read.

cheers
oldman9

Seems like an article written by a VB forumer

At least the status of the bonds are clear now: They are restructured and creditors effectively agreed to a partial redemption first. I am assuming it had been agreed after the auditors finalised their accounts as the auditors had assumed 31 Dec 2016 maturity for the whole lot.  

That means SinoG will have quite a substantial extraordinary profit for 1Q16 on accounting reversals for the 40% CB converted to straight bonds. I think there is also a bit of confusion on this restructuring: 60% of the CB remains as it is with maturity extended to ~ Dec 2016 and i/r of 20% and 25% but 40% is restructured into straight bonds of maturity 31 May and ~ Dec 2016

Based on the article the company has RMB143m cash on hand and paying RMB106.9m for the SB1 bondholders on May31. Reasonable guess is that the IPO won't happen before 31 May as exchange filing is probably not in time to lodge and I presume we yet to know who are the sponsor and auditor.

What is also interesting is that it revealed for the 1st time officially the main holders of the bonds as CDIB, GS and Hon Chuan. Hon Chuan interest is actually quite small at around $1m for 40%.

I think it is likely that we wil have to ask about the IPO again in AGM. Cashflow wise it is very disconcerting.

[Debronic]

I am not vested in this and I am not about to wade into the crossfire.

However, I did look seriously at Sino G when the Anonymous Analytics reports came out. Since I am not based in China and had no way of trying to verify if the products are flying off the shelves physically, I went to do a search online on the largest B2C site in China, Tmall, for clues as to its products' popularity. It was then I realized that I can't find 鲜绿园's tmall page. It could be of course that the company chose not to sell its products there or that I am looking at the wrong places.

But anyway for comparison purposes, I did a search on previously SGX listed Hsu Fu Chi: https://xufuji.world.tmall.com
Then on HK listed China Huiyuan: https://huiyuangf.world.tmall.com
And even on recently RTO-ed but currently suspended China Star Food Holdings' flagship brand: https://starpay.world.tmall.com

As you can see, all of them have their own online stores with their products listed. And for your info, you can see how many of each product they sell via tmall by looking at the bottom left of each product's listing. The 总销量 is a 30 day running sales figure. If you are diligent enough and do that every month, you could possible estimate the revenue they get from this platform as part of your homework. 

So maybe for you guys attending the next general meeting, a good question to post to management would be whether they are selling their products online. If they reply yes, then you follow up by asking if they are on tmall and why not. Would be interesting to observe how they answer. Just my 2 cents worth.

[crubs]

What I am keen to know is who are the sponsors and auditor for the IPO? Thanks

I am equally keen to know, who are the sponsors and auditor for the IPO. I have not managed to find an answer here, as well as in Google search. May be I have missed the info. Anyone to enlighten?

FYI, appointment of sponsors, is the very 1st step in HKSE listing procedure. The company should disclosure the appointment, since IPO is the most relevant event now. Based on HKSE website, here is the time-line expected.

"Appointment of a sponsor at least 2 months before submission of an application and to notify the Exchange in writing within five business days of its appointment"

https://www.hkex.com.hk/eng/listing/list...t_main.htm

(not vested, and monitoring, anyone to clear the doubt?)

Hi CityFarmer,

The sponsor and auditor of the IPO have been appointed long ago. Based on listing regulations, they only have to notify the Exchange. Neither the Exchange nor the Company is obliged to make a public announcement so I don't see why the company "should disclose". 

Dali Food, which IPOed, recently did not make any announcement regarding their sponsor or auditor prior to the submission of their A1 form.

[butcher]

The auditor is Foo Kon Tan right?
Does the auditors matters?
I have interaction with a Big 4, D. Their auditors are also very noob. Big 4 doesn't mean anything.

[CityFarmer]

What I am keen to know is who are the sponsors and auditor for the IPO? Thanks

I am equally keen to know, who are the sponsors and auditor for the IPO. I have not managed to find an answer here, as well as in Google search. May be I have missed the info. Anyone to enlighten?

FYI, appointment of sponsors, is the very 1st step in HKSE listing procedure. The company should disclosure the appointment, since IPO is the most relevant event now. Based on HKSE website, here is the time-line expected.

"Appointment of a sponsor at least 2 months before submission of an application and to notify the Exchange in writing within five business days of its appointment"

https://www.hkex.com.hk/eng/listing/list...t_main.htm

(not vested, and monitoring, anyone to clear the doubt?)

Hi CityFarmer,

The sponsor and auditor of the IPO have been appointed long ago. Based on listing regulations, they only have to notify the Exchange. Neither the Exchange nor the Company is obliged to make a public announcement so I don't see why the company "should disclose". 

Dali Food, which IPOed, recently did not make any announcement regarding their sponsor or auditor prior to the submission of their A1 form.

The new regulation in SEHK has made the sponsor matter to me, since sponsors are having more liabilities now. May be not to you due to your high conviction.

Anyway, based on general principle of disclosure, a "should" isn't a very demanding assumption, with the high profile IPO. Dali Food is also listing its subsidiary? Any direct reference?

BTW, do you know who are the sponsors?

(not vested)

[crubs]

What I am keen to know is who are the sponsors and auditor for the IPO? Thanks

I am equally keen to know, who are the sponsors and auditor for the IPO. I have not managed to find an answer here, as well as in Google search. May be I have missed the info. Anyone to enlighten?

FYI, appointment of sponsors, is the very 1st step in HKSE listing procedure. The company should disclosure the appointment, since IPO is the most relevant event now. Based on HKSE website, here is the time-line expected.

"Appointment of a sponsor at least 2 months before submission of an application and to notify the Exchange in writing within five business days of its appointment"

https://www.hkex.com.hk/eng/listing/list...t_main.htm

(not vested, and monitoring, anyone to clear the doubt?)

Hi CityFarmer,

The sponsor and auditor of the IPO have been appointed long ago. Based on listing regulations, they only have to notify the Exchange. Neither the Exchange nor the Company is obliged to make a public announcement so I don't see why the company "should disclose". 

Dali Food, which IPOed, recently did not make any announcement regarding their sponsor or auditor prior to the submission of their A1 form.

The new regulation in SEHK has made the sponsor matter to me, since sponsors are having more liabilities now. May be not to you due to your high conviction.

Anyway, based on general principle of disclosure, a "should" isn't a very demanding assumption, with the high profile IPO. Dali Food is also listing its subsidiary? Any direct reference?

BTW, do you know who are the sponsors?

(not vested)

I do not know who the sponsors are.

I agree, sponsors have more liabilities now due to the new regulations and thus play an important role. However, I'm just pointing out the fact that Sino Grandness is not required to disclose who the sponsors are prior to submission of the prospectus. 

There are no companies in an identical situation to GF. But another comparison would be Eindec, which recently spun off from Weiye Holdings and listed on the SGX. They did not disclose the sponsor until the prospectus was published.

I don't think there are any separate rules for "high" or "low" profile listings.

I'm puzzled as to why investors seem to demand more from Sino Grandness than what is required.

Anyway, we will find out soon when the draft prospectus gets submitted.

[specuvestor]

The auditor is Foo Kon Tan right?
Does the auditors matters?
I have interaction with a Big 4, D.  Their auditors are also very noob.  Big 4 doesn't mean anything.

We have already discussed this almost a year ago:
http://www.valuebuddies.com/thread-3371-...#pid110886
http://www.valuebuddies.com/thread-3371-...#pid110967
http://www.valuebuddies.com/thread-3371-...#pid111581

Objectively speaking, besides the CB being restructured early this month, what changed in past year? like i mentioned in my first post of the year: when facts change i change my view. I was cautiously optimistic with SinoG until they missed the rescheduled CB redemption last June / July which the chairman said would be at least partially done during the AGM

I'm beginning to suspect if the recent spike catalyst is the 40% CB hedge unwinding when it was converted to straight bonds

PS crubs we are keen to know who the IPO sponsor and auditor are because the IPO is pivotal for SinoG unlike other companies