Audited Annual Results year ended 31 December 2022

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: [phone]

Novum Securities Limited

AQSE Corporate Adviser

David Coffman / George Duxberry

Tel: [phone]

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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