Gowin New Energy Grp - Audited Annual Results year ended 31 December 2022
28/06/2023 10:31
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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 14 (936) 535
Foreign exchange gain 175 264
_____ _____
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 (4,407) (3,362)
parent entity
____ ____
Other Comprehensive Income - -
_____ _____
Total Comprehensive Loss for the year attributable (4,407) (3,362)
to owners of the parent entity
_____ _____
Loss per share expressed in RMB per share
Basic and diluted loss per share for the year 12 (0.02) (0.01)
attributable to owners of the parent entity
GOWIN NEW ENERGY GROUP LIMITED
NON-STATUTORY CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2022
Note 31 December 31 December
2022 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 Preference Accumulated losses Total
capital shares
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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