Itinerary: Visit factory in Danyang, attend F&B fair in Nanjing, check out stores in HK. Map: GoogleNEXTINSIGHT AND SEVERAL analysts will soon be visiting Sino Grandness' year-old beverage manufacturing plant in Danyang in Hubei province.
Over a four-day period, starting this Friday, we will also attend a F&B trade show in Nanjing which Sino Grandness is taking part in.
From Nanjing, we will fly a domestic airline to Hong Kong to catch a SIA flight home. There will be a couple of hours for us in HK to check out some city stores which carry beverages of Sino Grandness.
Our visit to the factory in Danyang is of particular interest. It officially started operations in Oct 2014 after securing all the necessary permits.
CEO Huang Yupeng @ a previous F&B trade fair.
Company photo.The lack of factory activity in periods prior to Oct 2014 led 'researchers' hired by a short-seller, 'newman9', to conclude that the factory is just "sitting idle".
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."
The short-seller's report was dated 4 Sept 2014, which implies that his field work was carried out in August, if not earlier -- ie, the timing was premature.
Well, what would you like to know? Please put down your questions below, so we can try to find answers as we walk the grounds, observe the F&B fair and visit stores in HK.
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Comments
1) what is the company head count and how many are in sales, admin, production
2) how many tonnes per anum is the hubei plant producing and how many lines are there ?
to be honest, I won't care more abt the cb or ipo if the business is genuinely doing very well. ipo only dilutes my share of the good business!
2) Sales of beverage to thailand update
3) Euromonitor report update
4) Improvement of investor relations to inform shareholders on non-material business updates regularly
It has been 2.5 months since the Convertible Bonds have matured and while management informed that there are some legalities to be sorted out in the new agreement with the convertible bond holders, there has been a lack of information since.
I am appealing to the management to provide shareholders, especially minority shareholders, with an update on the status surrounding the Convertible Bonds.
2) Garden Fresh IPO
It has been more than 2 years since the company announced the proposed spin-off of Garden Fresh. If my memory did not fail me, Chairman and CEO Huang seemed confident that the necessary due processes for the IPO of Garden Fresh in the HKSE would be completed before the expiry of the Convertible Bonds on 25 July 2015.
It would certainly give shareholders a boost if management can provide a business update similar to the ones released on 9 March 2015 and 23 October 2014.
More timely updates from the management will benefit shareholders and give us the confidence to continue supporting the company.
"On completion, the plant will have two juice production lines with an annual production capacity of 200k tonnes. The first juice production line (with a capacity of 100k tonnes/year) is ready for installation, and the management expects production to start by the end of 2013.....actual ly it was Kim Eng report that was pre-mature . not the short-seller's report of 4th Sep 2014
Thnx and much obliged!