TIDMGWIN
RNS Number : 0276A
Gowin New Energy Group Limited
21 September 2022
21 September 2022
Gowin New Energy Group Limited ("GNE" or the "Group")
(AQSE: GWIN)
Interim Results for the Six Months Ended 30 June 2022
Gowin New Energy Group Limited, engaged in the research and
development, outsourcing and sales of LED lighting products, and
the tea trading business, today announces its unaudited financial
results for the six months ended 30 June 2022.
2022 Interim Report Chairman's Statement
Gowin New Energy Group Limited (the "Group" or "Gowin") is
pleased to release its 2022 Interim Report period 1 January 2022 to
30 June 2022. There has been no material change to the financial
position of the Group since the 2021 Annual Report.
Gowin has historically been engaged in the sale and investment
of LED related products based in Taiwan. The Group's only LED
business in the year to date has been through its minority interest
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 look out for 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. It remains highly dependent on
China's zero-Covid policy environment, which has seen continuous
rolling lockdowns across the country, most recently affecting 21
million people in Chengdu and large populations in other cities. As
before, given China is the key to Gowin's tea business supply
chain, the Covid related impacts there are significant and means
the Group must continue to be patient before formally driving the
tea business forward. In the meantime, Covid restrictions have been
partially lifted in Taiwan improving the business environment
there; interestingly enough, there are only two places in the world
that have major trade surpluses with China - one is Australia and
the other Taiwan.
The Group announced the proposed launch of a new agarwood
trading business on 10 February 2022. The agarwood business will
focus on trading high-quality agarwood products, including agarwood
incense which is widely used in religious ceremonies in Taiwan and
essential oil which can be applied in many ways in daily life. The
Group has worked hard since February, to further its design and
preparations for this business; additionally, sales and
distribution agreements and other relevant agreements are being
finalised. For example, taking advantage of the improved Covid
mobility environment, the Group is proactively performing market
development and engaging with prospective clients in order to
secure their future business. The Group continues to work with a
stable supplier that provides products at competitive pricing. A
market survey has been conducted in conjunction with industry
partners that includes an e-commerce company and an artwork
merchant. The survey confirms key customer purchase intentions in
Gowin's agarwood addressable market. In addition, the Group is
being creative, designing and producing differentiated artwork and
gift boxes for the digital and physical environments; some of this
agarwood planning is expected to be replicable to the tea business
at the appropriate time. The Group looks forward to updating the
market on its agarwood initiatives in due course.
2022 Interim Report Chairman's Statement
The Group conducted its AGM on 16 September 2022, with all
resolutions passed unanimously.
As before, the Group continues to provide a safe working
environment for its workforce and introduced preventive measures to
reduce the spread of Covid-19 in the workplace, including working
from home. The Group will continue to prioritise occupation health
and safety and pay close attention to the ongoing and mutating
Covid-19 outbreak and respond to its impact, if any, on the
Group.
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 26 April 2022. These loans are 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 for their continued support
and to thank all staff members of the Group for their dedication
and contribution to the Group.
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/ Lucy Bowden
Tel: +44 (0)207 399 9400
REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION
INDEPENT 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 2022 which comprises the
Condensed Consolidated Balance Sheet, Condensed Consolidated
Statement 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 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 IFRSs as adopted by the European Union. 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.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2022 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
20 September 2022
Gowin New Energy Group Limited
Condensed consolidated statement of comprehensive income
For the six months ended 30 June 2022
Six months Six months
ended ended
30 June 30 June
2022 2021
RMB'000 RMB'000
Continuing Operations Note (Unaudited) (Unaudited)
Revenue 7 - -
Cost of sales - -
---------------- -----------------
Gross profit - -
Administrative expenses 10 (1,576) (1,852)
Operating loss (1,576) (1,852)
Finance costs 9 (160) (153)
Other income/ (loss) - 5
Investment gain/(loss) (1,018) 399
Foreign exchange gain/(loss) 714 (100)
Loss before tax (2,040) (1,701)
Tax 11 - -
---------------- -----------------
Loss from continuing operations (2,040) (1,701)
Other comprehensive income - -
---------------- -----------------
Total comprehensive loss for the
period attributable to owners of the
parent (2,040) (1,701)
================ =================
Loss per share attributable to owners
of the parent during the period expressed
in RMB per share
Basic and diluted loss per share 12 (0.007) (0.006)
================ =================
Gowin New Energy Group Limited
Condensed consolidated statement of financial position
As at 30 June 2022
As at As at As at
Note 30 June 30 June 31 December
2022 2021 2021
RMB'000 RMB'000 RMB'000
(Unaudited) (Unaudited) (Audited)
Assets
Non-Current Assets
Long-term investments 14 3,283 4,292 4,395
Current assets
Trade and other receivables 15 106 43 74
Cash in bank 16 2,418 2,609 2,330
2,524 2,652 2,404
Total assets 5,807 6,944 6,799
---------------
Current Liabilities
Loans from equity holders 17 (14,915) (14,199) (14,560)
Trade and other payables 17 (12,505) (10,657) (11,812)
Total liabilities (27,420) (24,856) (26,372)
-------------------- --------------- ------------
Net liabilities (21,613) (17,912) (19,573)
Equity attributable to
owners of the Company
Share capital 18 29,000 29,000 29,000
Preference share 18 2,195 2,195 2,195
Retained losses (52,808) (49,107 ) (50,768)
Total equity (21,613) (17,912) (19,573)
-------------------- --------------- ------------
Gowin New Energy Group Limited
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2022
Attributable to owners of the Company
---------------------------------------------------
Preference Retained
Share capital share losses Total
RMB'000 RMB'000 RMB'000 RMB'000
For the six months ended
30 June 2021 (Unaudited)
Balance as at 1 January
2021 (Audited) 29,000 2,195 (47,406) (16,211)
Loss for the period - - (1,701) (1,701)
Total comprehensive income
for the period - - (1,701) (1,701)
Balance as at 30 June
2021 29,000 2,195 (49,107) (17,912)
-------------- ----------- --------- ---------
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 income
for the period - - (2,040) (2,040)
Balance as at 30 June
2022 29,000 2,195 (52,808) (21,613)
============== =========== ========= =========
Gowin New Energy Group Limited
Condensed consolidated statement of cash flows
For the six months ended 30 June 2022
Six months Six months
ended ended
30 June 30 June
2022 2021
RMB'000 RMB'000
((Unaudited) (Unaudited)
Cash Flows used in Operating Activities
Loss before tax (2,040) (1,701)
Finance cost 159 150
Investment loss/(gain) 1,018 (399)
Foreign currency (gain)/loss (777) 162
Decrease/(Increase) in trade and other receivables 7 53
(Decrease)/I ncrease in trade and other payables 878 665
Net cash used in operating activities (755) (1,070)
Cash Flows generated from Financing Activities
Shareholders' loans 843 1,334
Net cash generated from financing activities 843 1,334
------------------------ ------------------------
Net increase/(decrease) in cash and cash
equivalents 88 264
------------------------ ------------------------
Cash and cash equivalents at beginning of
period 2,330 2,345
------------------------ ------------------------
Cash and cash equivalents at end of period 2,418 2,609
======================== ========================
Gowin New Energy Group Limited
Notes to the condensed consolidated interim financial
information
For the six months ended 30 June 2022
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 historically been the research and
development, outsourcing and sales of LED lighting products, and
the tea trading business. The Group is continuing with its
corporate restructuring including investing in businesses in
related fields.
During this period of corporate restructuring, 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 International
Financial Reporting Standards (IFRS) and IFRS Interpretations
Committee (IFRS IC) Interpretations.
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.
-New and amended accounting standards adopted by the Group
Effective during the period
There are no new standards or amendments to standards adopted in
the period which have a material impact on the financial position
or performance of the Group.
Not yet effective
At the date of authorisation of these non-statutory condensed
interim consolidated financial statements, the following Standards,
amendments and interpretations were not yet effective:
--IAS 1 The amendments of disclosure of accounting policies will
take effect on 1 January 2023.
--IAS 8 The amendments of definition of accounting estimates
will take effect on 1 January 2023.
--IAS 12 The amendments of deferred tax related to assets and
liabilities arising from a single transaction will take effect on 1
January 2023.
--IFRS 10 & IAS 28 The amendments of asset sales or
investment between investors and their affiliates or joint ventures
are subject to the decision of the international accounting
standards board.
--IAS 1 The amendments of classification of liabilities as
current or non-current are effective on 1 January 2023.
The Group is evaluating the impact of the new and amended
standards above. The Directors do not expect that these new and
amended standards will have a material impact on the Group's
results or shareholders' funds.
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 2,040,000 for the
six months ended 30 June 2022 (six months ended 30 June 2021: loss
of RMB 1,701,000). 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,
raising funds 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.
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 additional activities planned for the Group will add new
challenges, risks and uncertainties. The Board is activity
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 condensed consolidated interim financial
information requires Management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
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 2021 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 and financial liabilities 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 2021
Annual Report and Financial Statements.
7. Segment information
The business of the Group is primarily focused on the
procurement, sales and distribution of tea products. For the
purpose of IFRS 8, the chief operating decision makers are the
Directors. All of the Group's activities is derived from Taiwan and
China. 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, a
significant or prolonged decline in the fair value of the security
below its cost is also evidence that the assets are impaired. If
any such evidence exists the cumulative loss - measured as the
difference between the acquisition cost and the current fair value,
less any impairment loss on that financial asset previously
recognised in profit or loss - is removed from equity and
recognised in profit or loss. Impairment losses recognised in the
consolidated income statement on equity instruments are not
reversed through the consolidated income statement.
9. Finance cost
Six months Six months
ended ended
30 June 30 June
2022 2021
RMB'000 RMB'000
(Unaudited) (Unaudited)
Interest cost 159 150
Bank charges 1 3
Total finance cost 160 153
============ ============
10. Expense by nature
Six months Six months
ended ended
30 June 2022 30 June
2021
RMB'000 RMB'000
(Unaudited) (Unaudited)
Staff costs 470 522
Directors' remuneration 748 750
Auditors' remuneration 4 179
Other professional fees 281 327
Other operating expenses 73 74
------------ ------------
Total administrative expenses 1,576 1,852
============ ============
11. Income tax
Six months Six months
ended ended
30 June 30 June
2022 2021
RMB'000 RMB'000
(Unaudited) (Unaudited)
Current income tax for the period - -
- -
============ ============
The Group is not subject to taxation in the Cayman Islands,
British Virgin Islands or Samoa Islands.
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 2022 is calculated
by dividing RMB 2,040,000 loss 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
2022 2021
RMB RMB
(Unaudited) (Unaudited)
Basic and diluted loss per share (RMB) (0.007) (0.006)
============ ============
No diluted loss per share are presented as there are no
potential ordinary shares outstanding for the six months ended 30
June 2022 and 2021.
13. Dividend
No dividends were proposed during the reporting period and the
Directors do not recommend the payment of an interim dividend for
the six months ended 30 June 2022.
14. Long term investments
Quoted equity securities RMB'000
---------
As at 1 January 2022 4,395
Investment gain(loss) (1,018)
Foreign exchange gain(loss) (94)
As at 30 June 2022 3,283
=========
The Company holds 1,081,600 shares in Taiwan Thick-Film
Industries Corp., a company listed on Taipei Stock Exchange.
15. Trade and other receivables As at As at
30 June 30 June
2022 2021
RMB'000 RMB'000
(Unaudited) (Unaudited)
Guarantee deposits paid 16 16
Prepayment 29 4
Loans to related party 52 13
Amounts due from related party 9 10
----------- -----------
106 43
=========== ===========
The amounts due from related party and the loans to related
party were unsecured, interest-free and repayable on demand. The
related party is controlled by a director of the Group.
16. Cash and cash equivalents As at As at
30 June 30 June
2022 2021
RMB'000 RMB'000
(Unaudited) (Unaudited)
Cash on hand 9 9
Cash at bank and in hand 2,409 2,600
----------- -----------
2,418 2,609
=========== ===========
17. Trade and other payables As at As at
30 June 30 June
2022 2021
RMB'000 RMB'000
(Unaudited) (Unaudited)
Trade payables 368 368
Accruals and other payables 311 92
Loans from equity holders 14,915 14,199
Amount due to key management personnel 11,826 10,197
Receipt in advance - -
27,420 24,856
===================== ======================
18. Share capital
Share capital RMB'000
---------------- --------
Ordinary Shares at GBP0.01 29,000,065.89 29,000
Preference Shares at GBP0.02 2,195,400 2,195
As at 30 June 2022 31,195,465.89 31,195
================ ========
19. Related party transactions
The ultimate controlling party of the Group is the CEO Mr Chen
Chih Lung.
20. Approval of interim financial information
The condensed consolidated interim financial information was
approved by the Board of Directors on 20 September 2022.
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