Sino Grandness

[specuvestor]

^^^A/R hides sales but cash and FA hides EARNINGS. It is incorrect to just use the asset to approximate the "fake sales".

If you clean them out your earnings will be affected. In fact thats why u see some dubious companies go for disastrous acquisitions for "one-time write offs"

Yes, Sino Grandness might have planned to “just raise RMB260m with 40% earmarked as working capital and RMB60m cash on hand is about nice to repay SHK, and with such coincidental timing to boot?”

It will take time for SGX to approve issue of new Sino placement shares, and Thai investors to subsequently apply for approval to remit funds to pay. Sino Grandness should have been aware of this, and could not have made the assumption that the placement money will be available for redemption in Oct.

On 6 Oct 14, Garden Fresh paid RMB 38m to bondholders who wanted their money before the maturity date of 19 Oct 14.

Payment doesn't necessarily be on the dot as long as debtor shows willingness and capacity to pay within a reasonable timeline. Approval from SGX is paperwork while i dont think approval from thai shareholders are needed? Nonetheless it is a risk if SGX for whatever reason disapprove the placement and the cascading effect will kick in.

They have already proactively shown willingness to settle some bond holders RMB38m using their cash at hand. That shows they are at least setting some agenda. Still the timing of the placement is too uncanny not to get skeptical.

The fat lady is going to sing in the next 9 months. This will be an interesting space to watch only because the Thais are involved.