Gowin New Energy Group Limited

Earnings Release • Jun 20, 2022

National Storage Mechanism | Additional information

RNS Number : 5167P

Gowin New Energy Group Limited

20 June 2022

20 June 2022

Gowin New Energy Group Limited

("Gowin" or the "Company")

Audited Annual Results for the year ended 31 December 2021

Gowin New Energy Group Limited is delighted to report its audited annual results for the twelve months ended 31 December 2021.

Chairman's Statement

Gowin New Energy Group Limited (the "Group" or "Gowin") is pleased to release its 2021 Annual Report for the period 1 January 2021 to 31 December 2021. There has been no material change to the financial position of the Group since the 2021 Interim Report.

Gowin has historically been engaged in the sale and investment of LED related products based in Taiwan. With the global decline of the LED industry, the Group's revenue generated from the LED business is limited. However, the Group still retains the business capability and continues to seek opportunities which are profitable in this sector. The Group has a minority interest in a Taiwan-based company, Taiwan Thick-Film Industries Corp. (TTFI), listed on the Taipei Stock Exchange, which is principally engaged in the manufacture and sales of LED backlight modules and components distributed primarily in the Asia market.

The Group has been working on launching a new tea trading business, focused on the collection, distribution and sale (including auction market) of high-quality Chinese Pu-erh tea and Taiwan high-mountain tea. The initial stage of the business was completed, including the establishment of its new subsidiary company and the initial fundraising for the business; however, the planned launch was delayed due to the COVID-19 restrictions in both China and Taiwan. The Group has been frustrated by Covid setbacks in Taiwan and the well-publicised restrictions and border closings in China, due to its Covid Zero policy, resulting in whole city lockdowns including Shenzhen, Shanghai and Beijing. Given China is the key to Gowin's tea business supply chain, these impacts matter and mean the Group must continue to bide its time before formally launching the tea business.

Hence, with the continued impact caused by the ongoing pandemic, a new business project, the agarwood trading, was announced on 10 February 2022. The agarwood trading focuses on trading high-quality agarwood products, including agarwood incense which is widely used in religious ceremonies in Taiwan and essential oil which can be applied in many ways in daily life. The initial trial of the agarwood activity is in advanced stages of preparation. Should the trial be successful, the Group intends to develop a sustainable agarwood trading business.

The Group has continued to provide a safe working environment for its workforce and introduced preventive measures to reduce the spread of COVID-19 in the workplace, including working from home. The Group will continue to impose appropriate measures to minimise the adverse impact on its people and the business operation of the Group; it will as always pay close attention to the ongoing and mutating COVID-19 outbreak and respond to its impact, if any, on the Group.

A previously reported, the Group announced that Mr. Wang Huai Chun, the Group's Chief Financial Officer, had stepped down from his role, and Mr. Shu Yi How was appointed as the new CFO with effect from 3 August 2021. His appointment provides the Group with strong in-house corporate finance and deal making skills, which hopefully will benefit the longer-term success for the Group. Together with the Directors, he is assisting with business strategy development, assessing various potential opportunities that current global disruptive factors may bring. 

CEO Mr Chen Chih-Lung has committed to continue to fund short term liquidity to support the Group's working capital requirements as and when required. His most recent working capital loan was announced on 26 April 2022. These loans are a measure of his determination and commitment to the Group. 

The Directors would like to take this opportunity to express sincere gratitude to all shareholders for their continued support and to thank all staff members of the Group for their dedication and contribution to the Group.

Garry Willinge

Non-Executive Chairman

The directors of Gowin New Energy Group Limited accept responsibility for this announcement.

For further information please visit company's website at www.gowingrp.com or contact the following:

Gowin New Energy Group Limited 

Garry Willinge

Tel: +852 9100 9972

Novum Securities Limited

AQSE Corporate Adviser

David Coffman / Lucy Bowden

Tel: +44 (0)207 399 9400

GOWIN NEW ENERGY GROUP LIMITED

NON-STATUTORY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021

	2021	2020
Continuing Operations	RMB'000	RMB'000
Revenue	-	-
Cost of sales	-	-
	_____	_____
Gross profit	-	-
Administrative expenses	(3,866)	(3,755)
	_____	_____
Operating loss	(3,866)	(3,755)
Finance costs	(309)	(210)
Other income	14	13
Fair value gain on investments at fair value through   profit or loss Foreign exchange gain	535 264	1,614 138
	_____	_____
Loss before tax from continuing operations	(3,362)	(2,200)
Tax	-	-
	_____	_____
Loss for the year from continuing operations	(3,362)	(2,200)
	_____	_____
Loss for the year attributed to equity holders of the   parent entity	(3,362)	(2,200)
	____	____
Other Comprehensive Income	-	-
	_____	_____
Total Comprehensive Income for the year attributable to owners of the parent entity	(3,362)	(2,200)
	_____	_____
Earnings per share expressed in RMB per share
Basic and diluted loss per share for the year attributable to equity holders of the parent entity	(0.01)	(0.01)

NON-STATUTORY CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 DECEMBER 2021

	31 December                       2021	31 December                       2020
	RMB'000	RMB'000
ASSETS
NON-CURRENT ASSETS
Investments at fair value through profit or loss	4,395	3,834
	_____	_____
TOTAL NON-CURRENT ASSETS	4,395	3,834
	_____	_____
CURRENT ASSETS
Trade and other receivables	74	95
Cash and cash equivalents	2,330	2,345
	_____	_____
TOTAL CURRENT ASSETS	2,404	2,440
	_____	_____
TOTAL ASSETS	6,799	6,274
	_____	_____
LIABILITIES
CURRENT LIABILITIES
Trade and other payables	(26,372)	(22,485)
	______	______
TOTAL CURRENT LIABILITIES	(26,372)	(22,485)
	______	______
TOTAL LIABILITIES	(26,372)	(22,485)
	______	______
NET LIABILITIES	(19,573)	(16,211)
	______	______
EQUITY ATTRIBUTABLE TO OWNERS OF THE  PARENT ENTITY
Share capital	29,000	29,000
Preference shares	2,195	2,195
Retained earnings	(50,768)	(47,406)
	______	______
TOTAL EQUITY	(19,573)	(16,211)
	______	______

The Consolidated Financial Statements were approved by the board of Directors and authorised for issue on 20 June 2022 and were signed on its behalf by:

Garry Willinge                                                    Chen Chih-Lung

Director                                                               Director

NON-STATUTORY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2021

	Attributable to owners of the parent entity
	Share capital	Preference shares	Retained earnings	Total
	RMB'000	RMB'000	RMB'000	RMB'000
Balance as at 1 January 2020	29,000	-	(45,206)	(16,206)
Loss for the year	_____	_____	(2,200)	(2,200)
Total comprehensive income for the year	-	-	(2,200)	(2,200)
	_____	_____	_____	______
Issue of shares Total transactions with owners,  recognised directly in equity	- _____ -	2,195 _____ 2,195	- ______ -	2,195 ______ 2,195
	_____	_____	_____	______
Balance as at 31 December 2020	29,000	2,195	(47,406)	(16,211)
	_____	_____	_____	______
Loss for the year	-		(3,362)	(3,362)
	_____	_____	_____	______
Total comprehensive income for the year	-	-	(3,362)	(3,362)
	_____	_____	_____	______
Total transactions with owners,  recognised directly in equity
	_____	_____	_____	______
Balance as at 31 December 2021	29,000	2,195	(50,768)	(19,573)
	_____	_____	_____	______

NON-STATUTORY CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

	2021	2020
	RMB'000	RMB'000
Cash Flows from Operating Activities
Loss before tax	(3,362)	(2,200)
Impairment (gain) on financial assets	(535)	(1,614)
Finance costs	305	204
Foreign currency (gain)	(350)	(277)
Decrease in trade and other receivables	21	26
Increase in trade and other payables	1,949	1,765
	_____	_____
Net cash used in operating activities	(1,972)	(2,096)
	_____	_____
Cash Flows from Investing Activities
Finance costs	-	(4)
	_____	_____
Net cash used in investing activities	-	(4)
	_____	_____
Cash Flows from Financing Activities
Loans from equity holders	-	127
Loan from related party	1,958	1,571
	_____	_____
Net cash generated from financing activities	1,958	1,698
	_____	_____
Net (decrease) in cash and cash equivalents	(15)	(402)
Cash and cash equivalents at beginning of the year	2,345	2,747
	_____	_____
Cash and cash equivalents at end of the year	2,330	2,345
	_____	_____

Non-cash transactions:

The fair value gain on financial assets was RMB 535,000 (2020: RMB 1,614,000).

This financial information has been extracted from the audited financial statements of the Company for the year ended 31 December 2021.  The financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS).

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