Gowin New Energy Grp - Audited Annual Results for year 31 December 2019
04/06/2020 18:09
RNS Number : 0371P
Gowin New Energy Group Limited
04 June 2020
4 June 2020
Gowin New Energy Group Limited
("Gowin" or the "Company")
Audited Annual Results for the year ended 31 December 2019
Gowin New Energy Group Limited is delighted to report its audited annual results for the twelve months ended 31 December 2019.
Chairman's statement
Gowin New Energy Group Limited ("the Group") is pleased to release its 2019 Annual Report for the period 1 January 2019 to 31 December 2019. There have been no material financial outcomes changes to the LED and Tea businesses compared to that reported in the 2019 Interim Report.
As previously disclosed, management is working diligently on launching the new Tea business. The Group reported good news in that new preference shares were admitted to trading on the AQSE Growth Market on 7 February 2020. The Group has received GBP250,000 from an investor Mr Wen Sheng-Tung to issue 12,500,000 2% Preference Shares of GBP0.02 each. The Group is now preparing the next stage of the Tea business.
Shareholders may be feeling a level of impatience about the progress of the Tea business. Preparing to formally launch the Tea business pilot has been somewhat new and arduous. The board and management are determined to ensure all business processes and workflows are sustainable going forward and to achieve this in an orderly manner. This is an emerging new business model involving preference shares, tea sourcing, relationships with China suppliers and tea exchanges, financial processes related to earnings, interest payments and dividends in the trading company Goyoung International Company Limited and more. Accordingly, the Group had always intended to undertake a small pilot through the initial allotment of preference shares to Mr Wen. The Group is confident that upon the successful conclusion of the pilot, there can be rapid and sustainable growth of the Tea business beginning in the latter part of 2020, given positive global economic conditions. Additionally, the Tea business model lends itself to adaptation to other commodities, currently under consideration.
Though the US-China trade tensions and Covid-19 have not directly impacted upon the Group's business to date, future economic conditions after global lockdowns are uncertain. A recent "The Economist" magazine article is calling the economy ahead 'a 90% economy'. There are many uncertainties and risks to be endured concerning geopolitical conflicts, restoring full capacity factory production, consumer spending, oil prices, level of public debt and general financial hardships across the world, while the pursuit of a vaccine continues. We are in unchartered territory and the Group's board will be vigilant in its deliberations, risk management and decision making and adjust business plans as necessary.
On 24 April 2020, the Group announced that at the Company's Annual General Meeting ("AGM") held on that day, all of the resolutions proposed, as set out in the Notice of AGM, were duly passed.
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.
Garry Willinge
Non-Executive Chairman
31 May 2020
The directors of Gowin New Energy Group Limited accept responsibility for this announcement.
For further information please visit www.gowinyichia.com or contact the following:
Garry Willinge Gowin New Energy Group Limited +852 9100 9972
David Scott / James Dewhurst Alexander David Securities Limited +44 20 7448 9820
GOWIN NEW ENERGY GROUP LIMITED
NON-STATUTORY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
| 2019 | 2018 | ||
| Continuing Operations | Note | RMB'000 | RMB'000 |
| Revenue | 6 | 8 | 427 |
| Cost of sales | - | (368) | |
| Gross profit | 8 | 59 | |
| Administrative expenses | 9 | (4,096) | (4,018) |
| Selling expenses | (3) | - | |
| Operating loss | (4,091) | (3,959) | |
| Finance costs | 8 | (186) | (129) |
| Other income | 105 | 95 | |
| Impairment loss on investments Foreign exchange gain | 14 | (206) (292) | (2,325) (322) |
| Loss before tax from continuing operations | (4,670) | (6,640) | |
| Tax | 11 | - | - |
| Loss for the year from continuing operations | (4,670) | (6,640) | |
| Loss for the year attributed to equity holders of the parent entity | (4,670) | (6,640) | |
| Other Comprehensive Income | - | - | |
| Total Comprehensive Income for the year attributable to owners of the parent entity | (4,670) | (6,640) | |
| Earnings/ (Loss) per share expressed in RMB per share | |||
| Basic and diluted earnings / (Loss) per share for the year attributable to equity holders of the parent entity | 12 | (0.02) | (0.03) |
| Note | 31 December 2019 | 31 December 2018 | |
| RMB'000 | RMB'000 | ||
| ASSETS | |||
| NON-CURRENT ASSETS | |||
| Investments at fair value through profit or loss | 14 | 2,232 | 2,305 |
| TOTAL NON-CURRENT ASSETS | 2,232 | 2,305 | |
| CURRENT ASSETS | |||
| Trade and other receivables | 15 | 158 | 81 |
| Cash and cash equivalents | 16 | 2,747 | 330 |
| TOTAL CURRENT ASSETS | 2,905 | 411 | |
| TOTAL ASSETS | 5,137 | 2,716 | |
| LIABILITIES | |||
| CURRENT LIABILITIES | |||
| Trade and other payables | 17 | (21,354) | (14,263) |
| TOTAL CURRENT LIABILITIES | (21,354) | (14,263) | |
| TOTAL LIABILITIES | (21,354) | (14,263) | |
| NET LIABILITIES | (16,217) | (11,547) | |
| EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT ENTITY | |||
| Share capital | 18 | 29,000 | 29,000 |
| Retained earnings | (45,217) | (40,547) | |
| TOTAL EQUITY | (16,217) | (11,547) | |
| Attributable to owners of the parent entity | ||||
| Share capital | Share premium | Retained earnings | Total | |
| RMB'000 | RMB'000 | RMB'000 | RMB'000 | |
| Balance as at 1 January 2018 | 25,000 | - | (33,907) | (8,907) |
| Loss for the year | - | - | (6,640) | (6,640) |
| Total comprehensive income for the year | - | - | (6,640) | (6,640) |
| Total transactions with owners, recognised directly in equity | ||||
| Issue of shares (Note 18) | 4,000 | - | - | 4,000 |
| Balance as at 31 December 2018 | 29,000 | - | (40,547) | (11,547) |
| Loss for the year | - | - | (4,670) | (4,670) |
| Total comprehensive income for the year | - | - | (4,670) | (4,670) |
| Total transactions with owners, recognised directly in equity | ||||
| Issue of shares (Note 18) | ||||
| Balance as at 31 December 2019 | 29,000 | - | (45,217) | (16,217) |
| 2019 | 2018 | |
| RMB'000 | RMB'000 | |
| Cash Flows from Operating Activities | ||
| Loss before tax | (4,670) | (6,640) |
| Impairment loss on financial assets | 206 | 2,325 |
| Dividends in specie | (95) | (90) |
| Finance costs | 180 | 123 |
| Foreign currency loss | 413 | 46 |
| Decrease in trade and other receivables | - | 27 |
| Increase in trade and other payables | 1,689 | 2,319 |
| Net cash used in operating activities | (2,277) | (1,890) |
| Cash Flows from Investing Activities | ||
| Finance income | (11) | - |
| Net cash used in investing activities | (11) | - |
| Cash Flows from Financing Activities | ||
| Loans from equity holders | 4,228 | 5,054 |
| Loan to related party | 477 | (2) |
| Repayment of loans from equity holders | - | (3,213) |
| Net cash generated from financing activities | 4,705 | 1,839 |
| Net (decrease) in cash and cash equivalents | 2,417 | (51) |
| Cash and cash equivalents at beginning of the year | 330 | 381 |
| Cash and cash equivalents at end of the year (note 16) | 2,747 | 330 |