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Gowin New Energy Group Limited
Interim / Quarterly Report • Jun 28, 2023
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Interim / Quarterly Report
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National Storage Mechanism | Additional information 
RNS Number : 2391E
Gowin New Energy Group Limited
28 June 2023
28 June 2023
Gowin New Energy Group Limited
("Gowin" or the "Company")
Audited Annual Results for the year ended 31 December 2022
Gowin New Energy Group Limited is delighted to report its audited annual results for the twelve months ended 31 December 2022.
Chairman's Statement
Gowin New Energy Group Limited (the "Group" or "Gowin") is pleased to announce its annual results for the year ended 31 December 2022 including early sales success in its agarwood project.
Gowin has historically been engaged in the sale and investment of LED related products based in Taiwan. The Group has an investment 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 continues to assess the opportunity to relaunch its 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. Given China is the key to Gowin's tea business supply chain, the well publicised and highly impactful Covid-19 related lockdowns in 2022 (affecting the whole economy and every industry sector) meant the Group has had to wait before driving the tea business forward. The good news is that the People's Republic of China ("PRC") government completely lifted its Covid Zero policy at the end of 2022 and borders opened more freely in February 2023. The Group is now assessing the tea trading environment and any hangover commercial restrictions from the three years of Covid lockdowns in China and expects to make a business decision later in 2023 as to how and when it may tentatively relaunch the tea trading business.
The Group announced the proposed launch of a new agarwood trading business on 10 February 2022 and provided a trading update on 7 November 2022. The agarwood business has its focus on trading high-quality agarwood products, including agarwood incense which is widely used in religious ceremonies in Taiwan and essential oils which can be applied in many ways in daily life. Contracts were signed with Gowin's supplier P&I Enterprise Company Limited ("P&I") and its sales and distribution partner Nine Angel Limited Company ("Nine Angel") on 4 November 2022. As at 31 December 2022, the incense powder sales achieved was 1.2 million CNY, a most encouraging start. In addition, the Group established a Gowin New Energy Limited Taiwan Branch ("Taiwan Branch") on 22 December 2022, in preparation for ending its temporary related party arrangement with Fonyu Investment Consultants Company Limited ("Fonyu"). This transaction is yet to complete, so Fonyu retains its role for the time being, after which future trading will be undertaken by the Taiwan Branch. The Group continues to work hard on product design and expansion (e.g., essential oils) as well as on market development and, taking advantage of the improved environment after pandemic restrictions gradually ease, the Group is proactively engaging with new prospective clients in order to secure their future business. The Group will update the market on its agarwood business developments as they arise.
The Group always strives to provide a safe working environment for its workforce and stakeholders and for some time has implemented preventive measures to reduce the spread of Covid-19 in the workplace, including working from home or half-paid sick leave within five days of Covid-19 positive. The Group has also reviewed its compliance and performance in the context of the broad Taiwan government Occupational Safety and Health Act and is satisfied with its overall performance and will pay close attention to new Covid-19 and other risks should they arise.
The Directors pay close attention to financial, non-financial and the well understood geopolitical risks associated with Taiwan and the PRC. In relation to going concern risk, CEO Mr Chen Chih-Lung continues his commitment 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 8 June 2023. These loans are a measure of his determination and commitment to the Group.
The Directors are committed to achieving sustainable profitability, step by step. They 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
Date: 28 June 2023
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
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 / George Duxberry
Tel: +44 (0)207 399 9400
GOWIN NEW ENERGY GROUP LIMITED
NON-STATUTORY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022
| 2022 | 2021 | ||
| Continuing Operations | Note | RMB'000 | RMB'000 |
| Revenue | 6 | 1,216 | - |
| Cost of sales | (1,076) | - | |
| _____ | _____ | ||
| Gross profit | 140 | - | |
| Administrative expenses | 9 | (3,467) | (3,866) |
| _____ | _____ | ||
| Operating loss | (3,327) | (3,866) | |
| Finance costs | 8 | (325) | (309) |
| Other income | 6 | 14 | |
| Fair value (loss)/gain on financial assets at fair value through profit or loss Foreign exchange gain |
14 | (936) 175 |
535 264 |
| _____ | _____ | ||
| Loss before tax from continuing operations | (4,407) | (3,362) | |
| Tax | 11 | - | - |
| _____ | _____ | ||
| Loss for the year from continuing operations | (4,407) | (3,362) | |
| _____ | _____ | ||
| Loss for the year attributed to owners of the parent entity |
(4,407) | (3,362) | |
| ____ | ____ | ||
| Other Comprehensive Income | - | - | |
| _____ | _____ | ||
| Total Comprehensive Loss for the year attributable to owners of the parent entity |
(4,407) | (3,362) | |
| _____ | _____ | ||
| Loss per share expressed in RMB per share | |||
| Basic and diluted loss per share for the year attributable to owners of the parent entity |
12 | (0.02) | (0.01) |
GOWIN NEW ENERGY GROUP LIMITED
NON-STATUTORY CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2022
| Note | 31 December 2022 |
31 December 2021 |
|
| RMB'000 | RMB'000 | ||
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Investments at fair value through profit or loss | 14 | 3,407 | 4,395 |
| _____ | _____ | ||
| TOTAL NON-CURRENT ASSETS | 3,407 | 4,395 | |
| _____ | _____ | ||
| CURRENT ASSETS | |||
| Trade and other receivables | 15 | 1,779 | 74 |
| Cash and cash equivalents | 16 | 815 | 2,330 |
| _____ | _____ | ||
| TOTAL CURRENT ASSETS | 2,594 | 2,404 | |
| _____ | _____ | ||
| TOTAL ASSETS | 6,001 | 6,799 | |
| _____ | _____ | ||
| LIABILITIES | |||
| CURRENT LIABILITIES | |||
| Trade and other payables | 17 | (13,663) | (11,812) |
| Loans from equity holders | 18 | (11,330) | (14,560) |
| ______ | ______ | ||
| TOTAL CURRENT LIABILITIES | (24,993) | (26,372) | |
| ______ | ______ | ||
| NET CURRENT LIABILITIES | (22,399) | (26,372) | |
| ______ | ______ | ||
| NON-CURRENT LIABILITIES | |||
| Loans from equity holders | 18 | (4,988) | - |
| ______ | ______ | ||
| TOTAL NON-CURRENT LIABILITIES | (4,988) | - | |
| ______ | ______ | ||
| TOTAL LIABILITIES | (29,981) | (26,372) | |
| ______ | ______ | ||
| NET LIABILITIES | (23,980) | (19,573) | |
| ______ | ______ | ||
| EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT ENTITY | |||
| Share capital | 19 | 29,000 | 29,000 |
| Preference shares | 2,195 | 2,195 | |
| Retained earnings | (55,175) | (50,768) | |
| ______ | ______ | ||
| TOTAL DEFICIT | (23,980) | (19,573) | |
| ______ | ______ |
The Consolidated Financial Statements were approved by the board of Directors and authorised for issue on 28 June 2023 and were signed on its behalf by:
Garry Willinge Chen Chih-Lung
Director Director
GOWIN NEW ENERGY GROUP LIMITED
NON-STATUTORY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022
| Attributable to owners of the parent entity | ||||
| Share capital |
Preference shares |
Accumulated losses | Total | |
| RMB'000 | RMB'000 | RMB'000 | RMB'000 | |
| Balance as at 1 January 2021 | 29,000 | 2,195 | (47,406) | (16,211) |
| _____ | _____ | _____ | ______ | |
| Loss for the year | - | - | (3,362) | (3,362) |
| _____ | _____ | _____ | ______ | |
| Total comprehensive loss 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) |
| _____ | _____ | _____ | ______ | |
| Loss for the year | - | - | (4,407) | (4,407) |
| _____ | _____ | _____ | ______ | |
| Total comprehensive loss for the year | - | - | (4,407) | (4,407) |
| _____ | _____ | _____ | ______ | |
| Total transactions with owners, recognised directly in equity |
- | - | - | - |
| _____ | _____ | _____ | ______ | |
| Balance as at 31 December 2022 | 29,000 | 2,195 | (55,175) | (23,980) |
| _____ | ______ | _____ | ______ | |
GOWIN NEW ENERGY GROUP LIMITED
NON-STATUTORY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022
| 2022 | 2021 | |
| RMB'000 | RMB'000 | |
| Cash Flows from Operating Activities | ||
| Loss before tax | (4,407) | (3,362) |
| Fair value loss/(gain) on financial assets | 936 | (535) |
| Finance costs | 325 | 309 |
| Foreign currency gain | (488) | (26) |
| (Increase)/Decrease in trade and other receivables | (1,705) | 21 |
| Increase in trade and other payables | 1,851 | 1,558 |
| _____ | _____ | |
| Net cash used in operating activities | (3,488) | (2,035) |
| _____ | _____ | |
| Cash Flows from Investing Activities | ||
| Finance costs | (4) | (4) |
| _____ | _____ | |
| Net cash used in investing activities | (4) | (4) |
| _____ | _____ | |
| Cash Flows from Financing Activities | ||
| Loans from equity holders | 1,977 | 2,024 |
| _____ | _____ | |
| Net cash generated from financing activities | 1,977 | 2,024 |
| _____ | _____ | |
| Net decrease in cash and cash equivalents | (1,515) | (15) |
| Cash and cash equivalents at beginning of the year | 2,330 | 2,345 |
| _____ | _____ | |
| Cash and cash equivalents at end of the year (note 16) | 815 | 2,330 |
| _____ | _____ | |
Non-cash transactions:
The fair value loss on financial assets was RMB 936,000 (2021: gain of RMB 535,000).
During the year, finance cost of RMB 321,000 (2021: RMB 305,000) incurred was credited to the loans from equity holders.
This financial information has been extracted from the audited financial statements of the Company for the year ended 31 December 2022. The financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS).
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