Sino Grandness CEO Huang Yupeng (left) with the visiting chairman of AGV Products Corporation, Mr. Chen Zhe Fang.
» TAIWAN: AGV Products
On 24 July 2015, Sino Grandness announced on its Weibo account that the company had hosted a visit by the chairman of AGV Products Corporation, Mr. Chen Zhe Fang, and the vice chairman of China Development Industrial Bank, Dr. Chen Xin.
AGV Products Corporation is one of Taiwan’s top 500 big companies, and is listed on the Taiwan Stock Exchange with a market cap of about S$170 million currently. The company was founded in 1971.
According to Euromonitor, AGV Products Corporation has the 7th largest market share (4.4%) by value in the soft drinks market in Taiwan.
During Mr Chen's visit, possible cooperation between the two companies was discussed and some preliminary consensus has been reached, according to the narrative on Sino Grandness' Weibo account.
Interestingly, a check on China Development Industrial Bank shows that it's the holder of the 2011 convertible bonds issued by Sino Grandness. If the bank was the one who introduced AGV Products Corporation to Sino Grandness, then it suggests that the bank is keen on a developing a longer-term relationship with Sino Grandness.
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In 2014, Hin Sang was appointed the distributor of Garden Fresh products in Hong Kong. Hin Sang, which is listed in Hong Kong, is a reputable distributor that has expertise in developing markets for new products and is currently distributing many renowned and promising brands from China. On top of distribution, Hin Sang also develops and sells its own branded products. It is currently the No.1 brand for pediatric and dietary supplements in Hong Kong. Given its reputation and access to major retailers, it is reasonable to conclude that Hin Sang would only select popular products with potential after going through a rigorous screening process. In its IPO prospectus, Hin Sang’s approach towards brand selection was described as follows:
2) Whether the brand’s business is in the same industry and/or complementary 3) Profitability and sustainability of the brand’s business 4) The brand’s reputation in the industry 5) The prospect of the brand being able to increase Hin Sang’s market share
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» THAILAND: Thoresen Thai Agencies (TTA) and PM Group
Flashback: Agreement signing ceremony in Oct 2014 to invest in Sino Grandness.
L-R: Ausana Mahagitsiri (MD of PM Group) | Chalermchai Mahagitsiri (CEO, Thoresen Thai Agencies) | Huang Yupeng (CEO, Sino Grandness) | Huang Yushan (Executive Director, Sino Grandness). Photo: Sino Grandness.
The investment in Sino Grandness by TTA & PM Group has been widely discussed. The Mahagitsiri family, headed by Prayudh Mahagitsiri, is one of the richest families in Thailand. They have deep knowledge and experience in F&B. A JV between PM Group and Nestle is the sole producer of 3-in-1 Nescafe in Thailand.
The business collaboration between Sino Grandness and the Mahagitsiri family includes introducing loquat juice to Thailand in 2H 2015, new product development and consultation. In turn, TTA & PM benefit from Sino Grandness’ growing network of distributors in China.
Since their investment, the Thai investors have displayed support for Sino Grandness in several ways. They have promised to lock up 47 m of their Sino Grandness shares for 10 years, they have accumulated Sino Grandness shares from the open market, and they have even appeared in the media speaking on behalf of Sino Grandness.
TTA, which is listed on the Thai Exchange, has classified Sino as an associate company even though its stake (9.3%) is below the 20% threshold.
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