IN SEPT 2014, all the relevant permits and approvals were finally secured by Sino Grandness to operate its new plant in Hubei. (See press release)

It officially commenced production in October 2014 which some readers have pointed out was long after short-seller 'newman9'  or his associates spent two days observing the plant from outside.

Their report was dated 4 Sept 2014, implying that the legwork and analysis were done in the preceding weeks and months.

The report said: "Our researchers found no sign of production within the Hubei factory, which was supposed to be operational in 4Q13 and have up to 200,000 tonnes capacity this year. During the first day, there were no wagons or trucks entering or exiting the main gate. On the second day, an empty truck entered the complex at 9am and remained idle while workers loaded small red boxes onto the vehicle. We do not know what was in the boxes, but we doubt it was juice products. The truck remained at the factory that evening."

For 'newman9', it was a case of wrong timing and wrong conclusion.

The plant, which has a maximum production capacity of 240,000 tons of juice per annum, is the second beverage plant built by Sino Grandness, the first being in Sichuan. A third will be built in Anhui.

Sino Grandness has another three plants in Shandong, Shanxi and Yunnan for canning vegetables mainly for export to Europe.

Sino Grandness also relies on six external suppliers to produce beverages. These third parties have a combined production capacity of more than 600,000 tons per annum, and, of course, serve other customers as well.  

As production is ramped up at the Hubei plant, Sino Grandness' reliance on third parties will decrease, with positive implications for its gross profit margins.

Video clips of the workings of the Hubei plant were first shown at the 3Q results briefing on Nov 14. The clips were subsequently amalgamated and the resultant video has just been uploaded to YouTube.

Take note of the highly-automated production processes -- and the production of PET bottles for own use (which the Sichuan plant does not do and instead buys from third-party suppliers).

Here's another video --- a 25-minute micro-film produced by Sino Grandness last year. It's a moving human-interest story and its loquat drinks are subtly weaved into the fabric of the story.


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#1 niwman 2014-11-24 17:35
Wah, impressive. So highly automated --- I didn't see any worker from start of video till almost the end at the auto-packing of bottles into the boxes.

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