Gowin New Energy Grp - Interim Results for Six Months Ended 30 June 2023
28/09/2023 16:15
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RNS Number : 0531O Gowin New Energy Group Limited 28 September 2023
Gowin New Energy Group Limited
("GNE" or the "Group") (AQSE: GWIN)
Interim Results for the Six Months Ended 30 June 2023
London: Thursday, 28 September 2023: 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 2023.
2023 Interim Report Chairman's Statement
Gowin New Energy Group Limited (the "Group" or "Gowin") is pleased to release
its Interim report for the period 1 January 2023 to 30 June 2023. There has
been little material change to the financial position of the Group since the
recently released 2022 Annual Report.
During the first half year in 2023, Gowin continued to focus on its agarwood
products' design as well as on market development. New products include
portable incense gift boxes and personal accessories made from raw agarwood
material and high quality essential oils as well as other aromatherapy
products, sourced for their therapeutic value, while maintaining aromatic
vibrancy, produced via four extraction methods. Taking advantage of the
improved environment as pandemic restrictions gradually eased, the Group has
been proactively engaging with new prospective clients to secure their future
business. The Group continues to cooperate with the supplier P&I
Enterprise Company Limited who is uniquely accredited to trade agarwood under
the "Convention on International Trade in Endangered Species of Wild Fauna and
Flora (CITES)", to ensure product sustainability and reflection of
contribution to the UN Sustainable Development Goals.
Like the rest of the world, Gowin is contending with economic uncertainty and
inflationary impacts, defensive consumer sentiment, geopolitical risk, policy
risk and the climate change & sustainability agenda. The Board has
committed itself to establishing a meaningful ESG, climate, and trust agenda
in all its current business interests. The Board is encouraged by the
opportunities ahead to establish future sustainable cashflows and a path to
profitability, step by step. Gowin will continue to leverage its status as a
publicly quoted company in the UK as well as its operations being adjacent to
one of the world's prominent industrial zones (Taoyuan) that hosts many global
technology firms. The Group will update the market on its business
developments as they arise.
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 14 August 2023. 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: 28 September 2023
INDEPENDENT REVIEW REPORT TO GOWIN NEW ENERGY GROUP LIMITED
Introduction
We have been engaged by the Group to review the condensed set of consolidated
financial statements in the half-yearly financial report for the six months
ended 30 June 2023 which comprises the Condensed Consolidated Balance Sheet,
Condensed Consolidated Statements of Comprehensive Income, Changes in Equity
and Cash Flows and related notes. We have read the other information contained
in the half-yearly financial report and considered whether it contains any
apparent misstatements or material inconsistencies with the information in the
condensed set of consolidated financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half-yearly financial report in accordance with the AQSE Rules for Issuers.
The annual financial statements of the Group are prepared in accordance with
International Financial Reporting Standards. The condensed set of financial
statements included in this half- yearly financial report has been prepared in
accordance with International Accounting Standard 34, "Interim Financial
Reporting".
Our responsibility
Our responsibility is to express to the Group a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
This report, including the conclusion, is made solely to the Group for the
purpose of the AQSE Rules for Issuers. We do not, in producing this report,
accept or assume responsibility to anyone, other than the Company, for our
work, for this report, or for the conclusion we have formed. This report may
not be provided to third parties without our prior written consent.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements. A review of interim financial information consists of making
enquiries, 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.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of consolidated financial statements in the
half-yearly financial report for the six months ended 30 June 2023 is not
prepared, in all material respects, in accordance with International
Accounting Standard 34 and the AQSE Rules for Issuers.
PKF Littlejohn LLP 15 Westferry Circus
Statutory Auditor Canary Wharf
London E14 4HD
28 September 2023
Condensed consolidated statement of comprehensive income
For the six months ended 30 June 2023
Six months Six months
ended ended
30 June 2023 30 June 2022
RMB'000 RMB'000
Continuing Operations Note (Unaudited) (Unaudited)
Revenue 7 - -
Cost of sales - -
Gross profit - -
Administrative expenses 10 (1,565) (1,576)
Operating loss (1,565) (1,576)
Finance costs 9 (173) (160)
Other income 25 -
Fair value loss on financial assets at fair value through
profit lor loss 14 (265) (1,018)
Foreign exchange (loss)/gain (1,287) 714
Loss before tax (3,265) (2,040)
Income tax 11 - -
Loss from continuing operations (3,265) (2,040)
Other comprehensive income - -
Total comprehensive loss for the period attributable to owners of the parent
(3,265) (2,040)
Loss per share attributable to owners of the parent during the period
expressed in RMB per share
Basic and diluted loss per share 12 (0.011) (0.007)
Condensed consolidated statement of financial position
As at 30 June 2023
30 June 30 June 31 December
Note 2023 (Unaudited) 2022 (Unaudited) 2022 (Audited)
RMB'000 RMB'000 RMB'000
ASSETS
NON-CURRENT ASSETS
Financial assets at fair value through
profit or loss 14 3,447 3,283 3,407
TOTAL NON-CURRENT ASSETS
3,447 3,283 3,407
CURRENT ASSETS
Trade and other receivables 15 1,792 106 1,779
Cash and cash equivalents 16 337 2,418 815
TOTAL CURRENT ASSETS 2,129 2,524 2,594
TOTAL ASSETS 5,576 5,807 6,001
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 17 (14,956) (14,915) (13,663)
Loans from equity holders (12,686) (12,505) (11,330)
TOTAL CURRENT LIABILITIES (27,642) (27,420) (24,993)
NET CURRENT LIABILITIES (25,513) (24,896) (22,399)
NON-CURRENT LIABILITIES
Loans from equity holders (5,179) - (4,988)
TOTAL NON-CURRENT LIABILITIES (5,179) - (4,988)
TOTAL LIABILITIES (32,821) (27,420) (29,981)
NET LIABILITIES (27,245) (21,613) (23,980)
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
Retained earnings (58,440) (52,808) (55,175)
TOTAL DEFICIT (27,245) (21,613) (23,980)
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2023
Attributable to owners of the Company
Share capital Preference Retained
share losses Total
RMB'000 RMB'000 RMB'000 RMB'000
For the six months ended 30 June 2022 (Unaudited)
Balance as at 1 January 2022 (Audited)
29,000 2,195 (50,768) (19,573)
Loss for the period
- - (2,040) (2,040)
Total comprehensive loss for the period - - (2,040) (2,040)
Total transactions with owners, recognized directly in equity
- - - -
Balance as at 30 June 2022 29,000 2,195 (52,808) (21,613)
For the six months ended 30 June 2023 (Unaudited)
Balance as at 1 January 2023 (Audited)
29,000 2,195 (55,175) (23,980)
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)
Condensed consolidated statement of cash flows
For the six months ended 30 June 2023
Six months Six months
ended ended
30 June 30 June
2023 2022
RMB'000 RMB'000
(Unaudited) (Unaudited)
Cash Flows used in Operating Activities
Loss before tax (3,265) (2,040)
Finance cost 173 160
Fair value loss on financial assets 265 1,018
Foreign exchange loss/(gain) 727 (777)
(Increase)/Decrease in trade and other receivables (13) 7
Increase in trade and other payables 1,293 877
Net cash used in operating activities (820) (755)
Cash Flows generated from Financing Activities
Loans from equity holders 342 843
Net cash generated from financing activities 342 843
Net (decrease)/increase in cash and cash equivalents (478) 88
Cash and cash equivalents at beginning of period 815 2,330
Cash and cash equivalents at end of period 337 2,418
Non-cash transactions:
The fair value loss on financial assets was RMB 265,000 (2022: RMB 1,018,000)
During the period, finance costs of RMB 173,000 (2022: RMB 160,000) incurred
was credited to loans from equity holders.
Notes to the condensed consolidated interim financial information
For the six months ended 30 June 2023
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 product research and development. In the last year,
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 consolidated interim 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 of
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 Consolidated non-statutory Financial
Statements, are disclosed in Note 5.
2. Basis of Preparation (continued) New/revised IFRSs adopted by the Group
Amendments to IAS 1 Disclosure of Accounting Policies
Amendments to IAS 8 Definition of Accounting Estimates
Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising
from a Single Transaction
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 3,265,000 for the six months
ended 30 June 2023 (six months ended 30 June 2022: loss of RMB 2,040,000) and
has net current liabilities as at 30 June 2023 of RMB 25,513,000. 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 condensed interim 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 repayment and securing new funding from existing shareholders and / or new
investors.
Based on the above, the Directors consider there are reasonable grounds to
believe that the Group will be able to fund the Group's future operating
expenses. Should the Group not be able to continue trading, 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 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 2022 Annual
Report and Financial Statements. The nature and amounts of such estimates have
not changed significantly during the interim period.
6. Significant accounting policies
The condensed consolidated interim financial information has been prepared
under the historical cost convention as modified by the revaluation of
financial assets at fair value through profit or loss.
The accounting policies and methods of computation used in the preparation of
these condensed consolidated interim financial information are consistent with
those used in the Group's 2022 Annual Report and Financial Statements.
7. Segment information
The business of the Group is primarily focused on the procurement, sales and
distribution of agarwood 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
consolidated statement of comprehensive income, the consolidated statement of
financial position, the consolidated statement of changes in equity and the
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 consolidated income statement.
9. Finance cost
Six months Six months
ended ended
30 June 2023 30 June 2022
RMB'000 RMB'000
(Unaudited) (Unaudited)
Interest expense on borrowings 172 159
Bank charges 1 1
173 160
10. Expense by nature Six months Six months
ended Ended
30 June 2023 30 June 2022
RMB'000 RMB'000
(Unaudited) (Unaudited)
Staff costs 464 470
Directors' remuneration 757 748
Auditors' remuneration - 4
Other professional fees 271 281
Other operating expenses 73 73
Total administrative expenses 1,565 1,576
11. Income tax
Six months Six months
ended ended
30 June 30 June
2023 2022
RMB'000 RMB'000
(Unaudited) (Unaudited)
Current income tax for the period - -
- -
No provision for Hong Kong or Chinese taxation has been made as the Group has
not generated any taxable profit in Hong Kong, Taiwan or China.
12. Loss per share
Loss per share for the period ended 30 June 2023 is calculated by dividing
loss of 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 2022
RMB RMB
(Unaudited) (Unaudited)
Basic and diluted loss per share (RMB) (0.011) (0.007)
There were no potential dilutive ordinary shares outstanding for the six
months ended 30 June 2023 and 2022.
13. Dividend
No dividends were proposed/paid during the reporting period and the Directors
do not recommend the payment of an interim dividend for the six months ended
30 June 2023.
14. Financial assets through profit or loss
Quoted equity securities RMB'000
As at 1 January 2023 Fair value loss 3,407
(265)
Foreign exchange gain 305
As at 30 June 2023 3,447
The Company holds 1,081,600 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
2023 2022
RMB'000 RMB'000
(Unaudited) (Unaudited)
Trade receivables - related party 1,266 -
Guarantee deposits paid 16 16
Prepayments 463 29
Loans to related party 13 52
Amounts due from related party 34 9
1,792 106
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
2023 2022
RMB'000 RMB'000
(Unaudited) (Unaudited)
Cash on hand Cash at bank 9 9
328 2,409
337 2,418
17. Trade and other payables As at As at
30 June 30 June
2023 2022
RMB'000 RMB'000
(Unaudited) (Unaudited)
Trade payables 368 368
Accruals and other payables 304 311
Loans from equity holders 17,865 14,915
Amount due to key management personnel 14,284 11,826
32,821 27,420
18. Share capital
Number
of shares RMB'000
Ordinary Shares 290,000,533 290,000
Preference Shares 2,195,000 2,195
As at 30 June 2023 292,195,533 292,195
19. Related party transactions
The ultimate controlling party of the Group is the CEO Mr Chen Chih Lung.
20. Approval of interim financial information
1. On 14 August 2023, the Group announced that it had entered into a Loan
Agreement (the "Loan Agreement") with Mr Chen Chih-Lung, the Chief Executive
Officer. The amount of the loan is GBP 15,000 and is used for working capital
purposes.
2. The condensed consolidated interim financial information was approved by
the Board of Directors on 28 September 2023.
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