Gowin New Energy Grp - Interim Results
26/09/2024 07:00
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RNS Number : 6520F Gowin New Energy Group Limited 26 September 2024
Gowin New Energy Group Limited
("GNE" or the "Group") (AQSE: GWIN)
Interim Results for the Six Months Ended 30 June 2024
London: Thursday, 26(th) September 2024: Gowin New Energy Group Limited,
engaged in the sale and investment of LED related products, tea trading and
agarwood trading businesses, today announces its unaudited financial results
for the six months ended 30 June 2024.
This announcement contains information which, prior to its disclosure, was
inside information as stipulated under Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310 (as amended).
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
2024 Interim Report Chairman's Statement
Gowin New Energy Group Limited (the "Group" or "Gowin") is pleased to release
its 2024 Interim Report, for the six months to 30 June 2024.
The Group is a minority investor in 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.
TTFI's main production base is in mainland China, where it owns two investment
companies there. Its customers mainly supply the backlight modules to Chinese
mainland automobile factories and electric vehicle assembly plants, with
annual revenues of more than NT$1.6 billion in 2023. Gowin has no plans to
dispose or buy additional TTFI shares at this time.
In the first half of 2024, the Group also bought and sold a small number of
LED lamps, through its Gowin Taiwan Branch. These were purchased from its
long-term supplier "Huayu Engineering Company", to whom services are provided
at a 10% profit margin.
As previously disclosed, given the decline of the LED industry, the Group has
no other plans for LED business development or investments at this time.
In relation to the tea business, Gowin had commenced cooperation with the
Pu'er Tea Association in Taiwan, but pandemic and economic problems in China
as well as the impact of cross-strait relations, caused many agricultural
products to be stalled in Customs. However, the situation is now improving,
and discussions are proceeding as to whether or to what extent to reinvigorate
the original plan with the Association.
There were two commodity tea trade transactions in the first half of 2024,
with Ruilong Gas Station, involving the purchase and sale of Taiwanese high
mountain tea. Ruilong is a related party to Gowin as disclosed in Gowin's
financial statements. CEO Mr Chen holds a 40% interest in Ruilong. Gowin has a
long-standing cooperation with the manufacturer "Junlin Tea Company" to
order goods. "Junlin Tea Company" cooperates exclusively with Gowin, at a 5%
profit margin.
Regarding its agarwood product initiatives, the Group continues working on
preliminary strategies for international sales development and as before the
agarwood business segment remains in focus for the Group.
As for new business development, the Group is actively exploring new
opportunities, together with assessing the means by which associated new
businesses could be integrated into the Group. The Board continues to be
focused on seeking solutions to establishing sustainable cashflows and a path
to profitability. The global economic and geopolitical environment are known
challenges, but Gowin is encouraged by its stakeholders and new business
introductions, who wish to see the Group successfully leverage its status as a
publicly quoted company in the UK. The Group will update the market on its
business developments as they arise.
The Company's 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. These loans continue to be 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 and lenders 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: 26 September 2024
REVIEW REPORT ON INTERIM FINANCIAL INFORMATION
INDEPENDENT AUDITOR'S REVIEW REPORT TO GOWIN NEW ENERGY GROUP LIMITED
Conclusion
We have reviewed the accompanying Condensed Consolidated Statement of
Financial Position of Gowin New Energy Group Limited as of 30 June 2024 and
the related Condensed Consolidated Statement of Comprehensive Income, Changes
in Equity and Cash Flows for the six-month period then ended and a summary of
significant accounting policies and other explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the accompanying set of condensed consolidated financial
statements in the half-yearly financial report for the six months ended 30
June 2024 is not prepared, in all material respects, in accordance with
International Accounting Standard 34 and the AQSE Rules for Issuers.
Basis of Conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410(UK), "Review of Interim financial Information Performed by
the Independent Auditor of the Entity". A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing, and consequently does
not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion
Material Uncertainty Related to Going Concern
We draw attention to note 3 to the condensed consolidated financial
statements, which identifies conditions that may cast material uncertainty to
the Group's ability to continue as a going concern. The Group reported a net
loss after tax of RMB 2,277,000 for the six months ended 30 June 2024 and has
net current liabilities as at 30 June 2024 of RMB 35,731,000. The Group's
financial projection carries uncertainty as to its revenue, profit and
cashflows in the 12 months from the date of the approval of this interim
financial information.
The Group's financial statements have been prepared on the going concern
basis. The ability of the Group to meet its expenditure requirements is
dependent on its ability to raise additional funds and the continued financial
support from directors and shareholders regarding non-repayment of existing
liabilities. As stated in note 3, these events or conditions, along with the
other matters as set forth in note 3, indicate that a material uncertainty
exists that may cast significant doubt on the Group's ability to continue as a
going concern. Our conclusion is not modified in respect of this matter.
Responsibilities of directors
Management is responsible for the preparation and fair presentation of this
half-yearly financial report in accordance with International Accounting
Standard 34 and the AQSE Rules for Issuers.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to the Company a conclusion on the condensed set of consolidated
financial statements in the half-yearly financial report. Our conclusion,
including our Material Uncertainty Related to Going Concern, are based on
procedures that are less extensive than audit procedures, as described in the
Basis for Conclusion paragraph of this report.
PKF Littlejohn LLP
15 Westferry Circus
Statutory
Auditor
Canary Wharf
London E14 4HD
26 September 2024
Gowin New Energy Group Limited
Condensed consolidated statement of comprehensive income
For the six months ended 30 June 2024
Six months Six months
ended ended
30 June 2024 30 June 2023
RMB'000 RMB'000
Continuing Operations Note (Unaudited) (Unaudited)
Revenue 7 75 -
Cost of sales (71) -
Gross profit 4 -
Administrative expenses 10 (1,706) (1,565)
Operating loss (1,702) (1,565)
Finance costs 9 (197) (173)
Other income - 25
Fair value gain/(loss) on financial assets at fair value through
profit lor loss 14 112 (265)
Foreign exchange loss (490) (1,287)
Loss before tax (2,277) (3,265)
Income tax 11 - -
Loss from continuing operations (2,277) (3,265)
Other comprehensive income - -
Total comprehensive loss for the period attributable to owners of the parent (2,277) (3,265)
Loss per share attributable to owners of the parent during the period
expressed in RMB per share
Basic and diluted loss per share 12 (0.008) (0.011)
Gowin New Energy Group Limited
Condensed consolidated statement of financial position
As at 30 June 2024
Note 30 June 30 June 31 December
2024 (Unaudited) 2023 (Unaudited) 2023(Audited)
RMB'000 RMB'000 RMB'000
ASSETS
NON-CURRENT ASSETS
Financial assets at fair value through
profit or loss 14 3,897 3,447 3,889
_____ _____ _____
TOTAL NON-CURRENT ASSETS
3,897 3,447 3,889
_____ _____ _____
CURRENT ASSETS
Trade and other receivables 15 559 1,792 593
Cash and cash equivalents 16 201 337 280
_____ _____ _____
TOTAL CURRENT ASSETS 760 2,129 873
_____ _____ _____
TOTAL ASSETS 4,657 5,576 4,762
_____ _____ _____
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 17 (16,992) (14,956) (15,899)
Loans from equity holders (19,499) (12,686) (18,420)
______ ______ ______
TOTAL CURRENT LIABILITIES (36,491) (27,642) (34,319)
______ ______ ______
NET CURRENT LIABILITIES (35,731) (25,513) (33,446)
______ ______ ______
NON-CURRENT LIABILITIES
Loans from equity holders - (5,179) -
______ ______ ______
TOTAL NON-CURRENT LIABILITIES - (5,179) -
______ ______ ______
TOTAL LIABILITIES (36,491) (32,821) (34,319)
______ ______ ______
NET LIABILITIES (31,834) (27,245) (29,557)
______ ______ ______
EQUITY ATTRIBUTABLE TO
OWNERS OF THE PARENT ENTITY
Share capital 18 29,000 29,000 29,000
Preference shares 2,195 2,195 2,195
Accumulated losses (63,029) (58,440) (60,752)
______ ______ ______
TOTAL DEFICIT (31,834) (27,245) (29,557)
______ ______ ______
Gowin New Energy Group Limited
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2024
Attributable to owners of the Company
Share capital Preference share Accumulated losses Total
RMB'000 RMB'000 RMB'000 RMB'000
29,000 2,195 (55,175) (23,980)
For the six months ended 30 June 2023 (Unaudited)
Balance as at 1 January 2023 (Audited)
Loss for the period - - (3,265) (3,265)
Total comprehensive loss for the period - - (3,265) (3,265)
Total transactions with owners, recognized directly in equity - - - -
Balance as at 30 June 2023 29,000 2,195 (58,440) (27,245)
29,000 2,195 (60,752) (29,557)
For the six months ended 30 June 2024 (Unaudited)
Balance as at 1 January 2024 (Audited)
Loss for the period - - (2,277) (2,277)
Total comprehensive loss for the period - - (2,277) (2,277)
Total transactions with owners, recognized directly in equity - -
- -
Balance as at 30 June 2024 29,000 2,195 (63,029) (31,834)
Gowin New Energy Group Limited
Condensed consolidated statement of cash flows
For the six months ended 30 June 2024
Six months Six months
ended ended
30 June 2024 30 June 2023
RMB'000 RMB'000
((Unaudited) (Unaudited)
Cash Flows used in Operating Activities
Loss before tax (2,277) (3,265)
Finance costs 197 173
Fair value (gain)/loss on financial assets (112) 265
Foreign exchange loss 381 727
Reversal of impairment loss on trade receivables (38) -
Decrease/(Increase) in trade and other receivables 72 (13)
Increase in trade and other payables 1,093 1,293
Net cash used in operating activities (684) (820)
Cash Flows used in from Investing Activities
Finance costs (2) (1)
Net cash used in Investing activities (2) (1)
Cash Flows generated from Financing Activities
Loans from equity holders 607 343
Net cash generated from financing activities 607 343
Net decrease in cash and cash equivalents (79) (478)
Cash and cash equivalents at beginning of period 280 815
Cash and cash equivalents at end of period 201 337
Non-cash transactions:
The fair value gain on financial assets was RMB 112,000 (six months ended 30
June 2023: fair value loss on financial assets: RMB 265,000)
During the period, finance costs of RMB 195,000 (six months ended 30 June
2023: RMB 172,000) incurred was credited to loans from equity holders.
Gowin New Energy Group Limited
Notes to the condensed consolidated financial statements
For the six months ended 30 June 2024
1. General information
Gowin New Energy Group Limited ("the Company") was incorporated in the Cayman
Islands. The registered office of the Company is located at Cricket Square,
Hutchins Drive, PO Box 2681, Grand Cayman, KY1-1111, Cayman Islands and the
main business office is located at 4F., No. 5, Ln. 332, Siyuan Rd., Xinzhuang
Dist., New Taipei City, Taiwan (R.O.C.).
The principal activity of Gowin New Energy Group Limited and its subsidiaries
("the Group'') has been business developments. In the last reporting period,
the Group was engaged in the agarwood trading business. The Group will
continue to invest in businesses in related or different fields.
During the period, the CEO, Mr. Chen Chih Lung, has supported the Group
financially by way of loans and guarantees.
The Company's shares are listed on the AQUIS Stock Exchange (AQSE).
The condensed interim consolidated financial information is presented in
Renminbi ("RMB"), which is the presentational and functional currency of the
Group, and all values are rounded to the nearest thousand except where
indicated otherwise.
2. Basis of Preparation
The non-statutory condensed interim consolidated financial statements have
been prepared in accordance with the valuation and measurement principles
under International Financial Reporting Standards (IFRS) and IFRS
Interpretations Committee (IFRS IC) Interpretations, together with
International Accounting Standard 34.
The condensed interim consolidated financial statements have been prepared
under the historical cost convention, except for equity investments held at
fair value through profit or loss.
The preparation of the condensed interim consolidated financial statements in
conformity with IFRS requires the use of certain critical accounting
estimates. It also requires Management to exercise its judgement in the
process of applying the Group's accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the condensed interim consolidated financial
statements, are disclosed in Note 5.
-New/revised IFRSs adopted by the Group
Amendments to IAS 1 Classification of Liabilities as Current or Non-current
Amendments to IAS 1 Non-current Liabilities with Covenants
Amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements
Amendments to IFRS 16 Lease Liability in a Sale and Leaseback
The adoption of these new/revised IFRSs did not result in material changes to
the Group's accounting policies and/or amounts reported for the current and
prior periods.
3. Going Concern
The non-statutory condensed interim consolidated financial statements have
been prepared on a going concern basis.
The Group reported a net loss after tax of RMB 2,277,000 for the six months
ended 30 June 2024 (six months ended 30 June 2023: loss of RMB 3,265,000) and
has net current liabilities as at 30 June 2024 of RMB 35,731,000. Management's
assessment of the ability of the Group to continue as a going concern has
considered cashflow forecasts, including assumptions regarding the Group's
activities, funds raising from existing shareholders and the open market, and
the Group's ability to settle liabilities as and when they fall due.
Mr Chen has recommitted his personal financial support to provide loans for
business operations as and when required for a period of no less than 12
months from the date of the approval of the condensed interim consolidated
financial statements.
Management has also taken certain measures including negotiation with certain
directors and equity holders to obtain their undertaking not to demand
repayment of amounts owed to them until there are sufficient funds available
for repayments and securing new funding from existing shareholders and/or new
investors.
Based on the above, the Group will be required to rely on the financial
support from the equity holders and the directors. The directors consider
there are reasonable grounds to believe that the Group will be able to fund
the Group's future operating expenses, yet the directors also consider that
there are no obligations for the directors to provide their financial support
to the Group. It is therefore assessed by the directors that there is a
material uncertainty over the going concern. Should the Group not be able to
continue as going concern, adjustments would have to be made to reduce the
value of assets to their recoverable amounts, to provide for further
liabilities which might arise and to re-classify non-currents assets and
liabilities as current. The non-statutory condensed interim consolidated
financial statements do not include any adjustments that may be required
should the Group be unable to continue as a going concern.
4. Risks and uncertainties
The activities planned for the Group will add new challenges, risks and
uncertainties. The Board is actively reviewing the impact of its plans but
does not immediately see any variations in the key financial risks other than
the valuation of investments.
5. Critical accounting estimates and judgements
The preparation of the condensed consolidated interim financial information
requires Management to make estimates and assumptions which would affect the
reported amounts of assets and liabilities and/or disclosure of contingent
assets and liabilities at the end of the reporting period. Significant items
subject to such estimates are set out in Note 5 of the Group's 2023 Annual
Report and Financial Statements. The nature and amounts in respect of such
estimates have not changed significantly during the interim period.
6. Significant accounting policies
The condensed interim consolidated financial statements have been prepared
under the historical cost convention as modified by the valuation of financial
assets at fair value through profit or loss.
The accounting policies and methods of computation used in the preparation of
these condensed interim consolidated financial statements are consistent with
those used in the Group's 2023 Annual Report and Financial Statements.
7. Segment information
The business of the Group is primarily focused on the sales of products for
the current and prior period. For the purpose of IFRS 8, the chief operating
decision makers are the Group's executive directors. All of the Group's income
is primarily derived from Taiwan. Internal and external reporting is on a
consolidated basis, with transactions between Group companies eliminated on
consolidation. Therefore, the financial information of the single segment is
the same as that set out in the condensed consolidated statement of
comprehensive income, the condensed consolidated statement of financial
position, the condensed consolidated statement of changes in equity and the
condensed consolidated statement of cash flows.
8. Financial assets
All financial assets are recognised and de-recognised on a trade date basis
where the purchase or sale of an investment is under a contract whose terms
require delivery of the investment within the timeframe established by the
market concerned, and are initially measured at fair value plus transaction
costs, except for those financial assets classified as at fair value through
profit or loss which are initially measured at fair value.
The Group assesses at the end of each reporting period whether there is
objective evidence that a financial asset, or a group of financial assets, is
impaired. For equity investments classified as financial assets at fair value
through profit or loss, a significant or prolonged decline in the fair value
of the security below its cost is evidence that the assets are impaired. Fair
value loss is recognised in the condensed consolidated income statement.
9. Finance cost
Six months Six months
ended ended
30 June 2024 30 June 2023
RMB'000 RMB'000
(Unaudited) (Unaudited)
Interest expense on borrowings 195 172
Bank charges 2 1
197 173
10.
Expense by nature Six months Six months
ended ended
30 June 2024 30 June 2023
RMB'000 RMB'000
(Unaudited) (Unaudited)
Staff costs 483 464
Directors' remuneration 765 757
Auditors' remuneration 40 -
Other professional fees 387 271
Reversal of impairment loss on trade receivables (38) -
Other operating expenses 69 73
Total administrative expenses 1,706 1,565
11. Income tax
Six months Six months
ended ended
30 June 30 June
2024 2023
RMB'000 RMB'000
(Unaudited) (Unaudited)
Current income tax for the period - -
- -
No provision for Taiwan taxation has been made as the Group has not generated
any taxable profit in Taiwan.
12. Loss per share
Loss per share for the six months ended 30 June 2024 is calculated by dividing
loss of RMB 2,277,119 (six months ended 30 June 2023: RMB 3,265,128) for the
period attributable to the equity holders of the Company by the average number
of shares, of 290,000,533.
Six months Six months
ended ended
30 June 30 June 2023
2024
RMB RMB
(Unaudited) (Unaudited)
Basic and diluted loss per share (RMB) (0.008) (0.011)
There were no potential dilutive ordinary shares outstanding for the six
months ended 30 June 2024 and 2023.
13. Dividend
No dividends were proposed/paid during the reporting period and the Directors
do not recommend interim dividends for the six months ended 30 June 2024.
14. Financial assets through profit or loss
Quoted equity securities RMB'000
As at 1 January 2024 3,889
Fair value gain 112
Foreign exchange loss (104)
As at 30 June 2024 3,897
As at 30 June 2024 and 31 December 2023, the Company holds 1,103,232 shares in
TAIWAN THICK-FILM INDUSTRIES CORP. ("TTFI"), a company listed on Taipei Stock
Exchange.
15. Trade and other receivables As at As at
30 June 30 June
2024 2023
RMB'000 RMB'000
(Unaudited) (Unaudited)
Trade receivables - related party - 1,266
Guarantee deposits paid 16 16
Prepayments 462 463
Loans to related party 13 13
Amount due from related party 68 34
559 1,792
The amount due from related party is unsecured, interest free and has no fixed
repayment term. The related party is controlled by a director of the Group.
16. Cash and cash equivalents As at As at
30 June 30 June
2024 2023
RMB'000 RMB'000
(Unaudited) (Unaudited)
Cash on hand 9 9
Cash at bank 192 328
201 337
17. T Trade/other payables and loans from equity holders As at As at
30 June 30 June
2024 2023
RMB'000 RMB'000
(Unaudited) (Unaudited)
368
Trade payables 368
Accruals and other payables 329 304
Loans from equity holders 19,499 17,865
Amount due to key management personnel 16,295 14,284
36,491 32,821
18. Share capital
RMB'000
Number of shares
Ordinary Shares 290,000,533 29,000
Preference Shares 12,500,000 2,195
As at 30 June 2024 302,500,533 31,195
19. Related party transactions
For the six months ended 30 June 2024, the Company sold tea to a related party
controlled by Mr Chen Chih Lung, the Chief Executive Officer and ultimate
controlling party of the Group, of approximately RMB75,000 (six months ended
30 June 2023: Nil).
On 16 July 2024, the Group announced that it had entered into a Loan Agreement
(the "Loan Agreement") with Mr Chen Chih-Lung, the Chief Executive Officer and
ultimate controlling party of the Group. The amount of the loan is GBP 50,000,
and is used for working capital purposes.
20. Approval of interim financial information
The condensed consolidated interim financial information was approved by the
Board of Directors on 26 September 2024.
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