Much has been said about trade receivables of Sino Grandness reaching crisis proportions.
There are two different methods to calculate trade receivable turnover. One takes trade receivable balance at end of financial year. The other takes the average trade receivable balance for the financial year.
The first, adopted by Huiyuan, an industry leader, yields the following trade receivable turnovers:
……………………………..2012…..…...2013…………..increase
Huiyuan……………...73 days.……91 days…………18 days
Sino Grandness…..95 days….102 days……….….7 days
Difference…………...22 days…….11 days
(It should be noted that the deterioration at Huiyuan in 2013 was partly caused by sales of concentrates that started that year. Buyers of concentrates take longer to settle.)
The second way, adopted by Sino Grandness, yields the following:
……………………………..2012…..…..2013………………increase
Huiyuan……………..65 days.……78 days……………13 days
Sino Grandness….71 days….…86 days……………15 days
Difference………….….6 days………8 days
For a company with rising sales as well as rising trade receivables, the second way gives rise to a lower trade receivable turnover.
On this basis, the gap (6 days in 2012 and 8 days in 2013) between Sino Grandness and Huiyuan was not large.
It should also be noted that generally trade receivables turnover is trending up in China, because of cascading effects of property sector woes, as well as uncertainty in global economy.
Sunsine Chemical, who is noted for its tight credit management, also feels the heat. You may want to read AnFraser's 28 Oct 14 initiation report on the company. Page 9 reads:
“From fig 11, one can easily see that the rise in average trade receivables every year is also accompanied with an increase in sales. Although trade receivable days have been creeping up, hitting a high of 62 days (or about two months) in FY13, we believe it is still in a healthy range.”
(01-11-2014, 09:06 AM)portuser Wrote: [ -> ]Much has been said about trade receivables of Sino Grandness reaching crisis proportions.
There are two different methods to calculate trade receivable turnover. One takes trade receivable balance at end of financial year. The other takes the average trade receivable balance for the financial year.
The first, adopted by Huiyuan, an industry leader, yields the following trade receivable turnovers:
……………………………..2012…..…...2013…………..increase
Huiyuan……………...73 days.……91 days…………18 days
Sino Grandness…..95 days….102 days……….….7 days
Difference…………...22 days…….11 days
(It should be noted that the deterioration at Huiyuan in 2013 was partly caused by sales of concentrates that started that year. Buyers of concentrates take longer to settle.)
The second way, adopted by Sino Grandness, yields the following:
……………………………..2012…..…..2013………………increase
Huiyuan……………..65 days.……78 days……………13 days
Sino Grandness….71 days….…86 days……………15 days
Difference………….….6 days………8 days
For a company with rising sales as well as rising trade receivables, the second way gives rise to a lower trade receivable turnover.
On this basis, the gap (6 days in 2012 and 8 days in 2013) between Sino Grandness and Huiyuan was not large.
It should also be noted that generally trade receivables turnover is trending up in China, because of cascading effects of property sector woes, as well as uncertainty in global economy.
Sunsine Chemical, who is noted for its tight credit management, also feels the heat. You may want to read AnFraser's 28 Oct 14 initiation report on the company. Page 9 reads:
“From fig 11, one can easily see that the rise in average trade receivables every year is also accompanied with an increase in sales. Although trade receivable days have been creeping up, hitting a high of 62 days (or about two months) in FY13, we believe it is still in a healthy range.”
in the huiyuan latest report, trade receivable days also increase to 110days and trade receivable had 1.8b.
Minzhong’s 1 Q FY 15 (3 months ended 30 Sep 14) results announcement reported the following:
…………………………….1 Q FY 15…….….1Q FY 14
Beverage sales……RMB 112.3m…..RMB 33.6m
Beverage GPM………..47.7%..............14.9%
(
http://infopub.sgx.com/FileOpen/1Q2015%2...eID=321213)
If Minzhong has not fudged its figures, then Garden Fresh’s 40% gpm is believable.
Portuser,
Thank you for letting us know that for the 3 months ended 31 Sep 14, gross profit margin of Minzhong juice was 47.7%.
I have taken a look at Minzhong full year results, and am surprised that for the year ended 30 June 2014, beverage GPM was already 39.4% for sales of just RMB 132.2m.
Earlier many echoed Newman9's assertion that it is just impossible for Garden Fresh to have GPM of around 40%.
If Minzhong high beverage GPM were made known earlier, Newman9's would not have any followers.
(Vested)
Let's continue to focus on topics related to the company, instead on person.
Thank you
Regards
Moderator
(31-10-2014, 09:46 PM)leeeta Wrote: [ -> ] (31-10-2014, 03:36 PM)chinafarmer Wrote: [ -> ] (31-10-2014, 02:02 PM)Young Investor Wrote: [ -> ]Quite interesting developments.
When the announcement of Thais intending to invest in Sino, there was no comments at all.
When the majority extended their 2011 bonds that expired in Oct to Jun next year, there was also no reaction.
When Sino is going to sell Garden Fresh juice in HK largest supermarket chain and largest convenience store chain, no reaction again.
When the shortseller’s report surfaced, it was taken to be true, and many forumers concluded that Sino’s days are numbered as the scam is too large to hide.
Now some forumers are condemning Thai investors for lowering the placement share price.
I thought the central issue here is whether Sino is a fake. Unfortunately, this is not being discussed now.
Vested.
Loquat supporters still have not addressed the issues i raised in my earlier post about
1. if Goldman is the beneficiary owner of the CB
2. why trade receivables grew faster than revenue
3. whether slotting fees were paid to supermarket distributors and how much
4. what is percentage of sales done at trade fairs
5 . why didnt they use bank borrowings in first place when they claim they can obtain them now to pay off bond holders if needed
6. 900m of trade receivables can be collected back to pay the bondholders. Why not do it?
7. Who introduced the Thai? Is he vested in the loquat?
The recent placement saga only adds more confusion and shock.
Not vested. Not short.
Bro,
Either you are shorting this stock or a competitor of sinoG. Dont see you posting anywhere else but in this thread and taking every opportunity to knock this stock down. If you are are shorting then let us know, we are fine having different views and opinions. We can trade arguments for and against. But since you say you are neither long nor short , I am puzzled by your constant interest and jab on this counter. You sure you are not newman9 or bluedogmeow?
By the way I am vested.
You insinuated lies about me. I am neither shorting the stock nor a competitor.
Based on your ridiculous argument that I am newman9 because of me raising issues about the loquat, one may also (wrongly) point out that forumers who defend the loquat are either the likes of loquat chairman or IR VP. That is not true too.
[Edited by Moderator due to abusive words]
Not vested not short.
Let's focus on the company's issue, rather on any individual.
A fact remains a fact, regardless of the agenda behind. Of course, we might discount an opinion, from an interested party, either declared or perceived.
I will remove all post that focus on any individual, after this post.
Thank
Regards
Moderator
The production plants of Sino should be buzzing with activity. Are they, or are they close to idle as Newman claims? That is to me a key test to whether this is a fraud or not. The desciptions in the report and the pictures seem real. Anyone here who can confim the observation by Newman?
(03-11-2014, 06:52 PM)Anconia Wrote: [ -> ]The production plants of Sino should be buzzing with activity. Are they, or are they close to idle as Newman claims? That is to me a key test to whether this is a fraud or not. The desciptions in the report and the pictures seem real. Anyone here who can confim the observation by Newman?
Idle? If so, how to fill up the shelfs of HK wellcome store chains and those in China?
Garden Fresh has been promoting its 鲜绿园 loquat juice as a throat soothing agent during haze.
Minzhong is doing the same for its 真田 loquat juice:
http://ai.taobao.com/auction/edetail.htm...fba807ca51
Minzhong is saying that its loquat juice helps those affected by PM2.5 haze.
(vested)