Sino Grandness

[Young Investor]

If Sino G is not a fake company, it should be able to borrow money from the banks to pay the convertible bonds even if IPO is not successful.

If Sino G is not a fake company, sales figures are then real which means receivables are real too. As such, a better test would be its ability to pay off the convertible bonds from its receivables.

In the FY14 results, Trade Receivables amounted to RMB 1,110,207 m. Isn't this amount more than enough to pay off the bondholders?

The first CB will be expired in Jun 15 and second CB in Jul 15. The trade receivables can be used as contingency to pay off the bondholders by then. Sino G mentioned that Garden Fresh has 230 distributors and credit terms and credits limits to customers will be based on the duration of the relationships with the company. Customers with longer and better payment record, will be given longer credit terms.