Gowin New Energy Grp - Annual Financial Report
RNS Number : 8091A
Gowin New Energy Group Limited
31 May 2019
 

31 May 2019

 

Gowin New Energy Group Limited

("Gowin" or the "Company")

 

Audited Annual Results for the year ended 31 December 2018

 

Gowin New Energy Group Limited is delighted to report its audited annual results for the twelve months ended 31 December 2018.

 

Chairman's statement

Business Overview

 

It is often said that business is a journey, not a destination. Our loyal shareholders understand this. It's been five years since the IPO of Gowin New Energy Group Limited ("the Group") and within a year of that event, accounts receivable and cash flow challenges emerged within the Group's China subsidiary. Ultimately towards the end of 2015, the Group terminated its contractual arrangements with the China subsidiary. New investors and shareholders joined the Group armed with LED industry experience, new ideas, capital and ambition to create shareholder value. Since that time the Group's CEO and some shareholders have committed human and financial capital in order to ensure the Group's going concern during its restructure.

Traditionally, the Group has focused on the LED sector, particularly the production and sales of back light modules. But in 2018 the sector has somewhat unexpectedly declined significantly and all LED companies, including the interests of the Group, have struggled to adapt and transform. Our expectation is that the LED industry and the Group's opportunities within will continue to struggle from 2019 to 2021. The Group is facing global issues it cannot control. The Group holds 1,040,000 shares of TAIWAN THICK-FILM INDUSTRIES CORP ("TTFI"), a public company in Taiwan, devoted to the LED business. Previously, the share price of TTFI dropped resulting in commensurate impairment charges in 2018. From January to April 2019, the share price has recovered somewhat, and the Group looks forward to receiving a dividend in 2019.

Financial Position and Business Outlook

 

On 18 September 2017, a general meeting of shareholders passed resolutions related to the proposed launch of a new Tea trading business. In 2018, some minimal tea commodity trading transactions were processed. Tea transactions are conducted by the Group's subsidiary Rosin Trading Ltd involving Pu'er tea transactions. In August 2018, the Group bought 2 different kinds of tea from CEO Mr. Chen Chih-Lung: 5 pieces of "Ta Tong Great Harmony" and 1841 pieces of "Yunnan 1889" for a total value of RMB 663,660. However, apart from this purchase, much of the year was spent shoring up the Tea business supply chain from vintage and high grade Pu'er tea growers in China provinces such as Yunnan through to warehouses, tea exchanges and auction houses. This has involved a lot of work and investment as well as creativity and innovation. Now the Group is ready to admit and allot preference shares to the first round of investors. Promising tea product sales and cash flows are anticipated in the near to midterm.

With the cooperation of Mo Xing Zhai and other Pu'er tea suppliers with their extensive experience and expertise in the Chinese tea industry and relevant connections with various tea related corporations, the Board looks forward to its Tea business developing in the next financial year. In the meantime, CEO Mr. Chen Chih-Lung will continue to support the financial needs of the Group by way of loans and guarantees, as required. Mr. Chen Chih-Lung has signed a pledge letter promising to support the Group's working capital needs as necessary, such that the Group does not anticipate any working capital or going concern issues in the foreseeable future.

Events after Reporting Date

On 25 February and 25 April 2019, the Group announced that it had entered into a Loan Agreement (the "Loan Agreement") with Mr Chen Chih-Lung, the Chief Executive Officer, pursuant to which Mr Chen has made available a loan of GBP40,000 twice to the Company. Under the terms of the Loan Agreement, the interest rate is 2% per annum and repayable by the Company in twelve months, extendable by mutual consent. The purpose of the loan is to provide short term liquidity to allow the Company to satisfy its payment obligations. Mr Chen will continue to support the Company's working capital requirements as and when required.

 

On 27 March 2019, Mr Hsu I-Hsan stepped down from his role as Director of Gowin New Energy Group Limited.

On 17 May 2019, the Group announced extensions of repayment dates of unsecured Loan Agreements with four shareholders who have supported the Group's development by providing funding for its general working capital purposes. The terms of those Loan Agreements remain unchanged with the exception of the extension of the repayment dates.

Garry Willinge

Non-Executive Chairman

31 May 2019

 

 

 

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 2018

 

 

 

 

 

 

2018

 

 

2017

Continuing Operations

Note

RMB'000

 

RMB'000

Revenue

6

427

26

Cost of sales

 

(368)

(21)

Gross profit

 

59

5

 

 

 

 

Administrative expenses

10

(4,018)

(5,580)

Gain on disposal of subsidiary

 

-

322

Operating loss

 

(3,959)

(5,253)

 

 

 

 

Finance costs

9

(129)

(83)

Other income

 

95

1,667

Impairment loss on investments

Foreign exchange gain

15

 

(2,325)

(322)

(1,603)

-

Loss before tax from continuing operations

 

(6,640)

(5,272)

 

Tax

12

-

-

Loss for the year from continuing operations

 

(6,640)

(5,272)

 

 

 

 

Loss for the year attributed to equity holders of the parent entity

 

(6,640)

(5,272)

 

 

 

 

Other Comprehensive Income

 

-

-

Total Comprehensive Income for the year attributable to owners of the parent entity

 

(6,640)

(5,272)

 

 

 

 

Earnings per share expressed in RMB per share

 

 

 

Basic and diluted earnings per share for the year attributable to equity holders of the parent entity

 

13

 

(0.03)

 

(0.02)

 

 

 

 

 

 

 

 

 

 

 

 

GOWIN NEW ENERGY GROUP LIMITED

NON-STATUTORY CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 DECEMBER 2018

 

 

 

 

 

Note

31 December 2018

31 December 2017

 

 

RMB'000

RMB'000

ASSETS

 

 

 

 

NON-CURRENT ASSETS

 

 

 

Investments at fair value through profit or loss

15

2,305

4,540

TOTAL NON-CURRENT ASSETS

 

2,305

4,540

 

 

 

 

CURRENT ASSETS

 

 

 

Trade and other receivables

16

81

581

Cash and cash equivalents

17

330

381

TOTAL CURRENT ASSETS

 

411

962

TOTAL ASSETS

 

2,716

5,502

 

 

 

 

LIABILITIES

 

 

 

CURRENT LIABILITIES

 

 

 

Trade and other payables

18

(14,263)

(14,409)

TOTAL CURRENT LIABILITIES

 

(14,263)

(14,409)

TOTAL LIABILITIES

 

(14,263)

(14,409)

NET LIABILITIES

 

(11,547)

(8,907)

 

 

 

 

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT ENTITY

 

 

 

Share capital

19

29,000

25,000

Retained earnings

 

(40,547)

(33,907)

TOTAL EQUITY

 

(11,547)

(8,907)

 

 

 

 

 

 

 

 

The Consolidated Financial Statements were approved by the board of Directors and authorised for issue on 31 May 2019 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 2018

 

 

 

 

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 2017

77,071

19,989

(80,706)

16,354

Loss for the year

-

-

(5,272)

(5,272)

 

Other comprehensive income for the year

-

-

-

-

 

Total comprehensive income for the year

-

-

(5,272)

(5,272)

Total transactions with owners, recognised directly in equity

 

 

 

 

 

Capital reduction

(52,071)

(19,989)

52,071

(19,989)

Balance as at 31 December 2017

25,000

-

(33,907)

(8,907)

 

 

 

 

 

Loss for the year

-

-

(6,640)

(6,640)

 

Other comprehensive income for the year

 -

-

-

-

 

Total comprehensive income for the year

-

-

(6,640)

(6,640)

Total transactions with owners, recognised directly in equity

 

 

 

 

 

Issue of shares (Note 19)

4,000

-

-

4,000

Balance as at 31 December 2018

29,000

-

(40,547)

(11,547)

 

 

 

 

GOWIN NEW ENERGY GROUP LIMITED

NON-STATUTORY CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2018

 

 

 

2018

 

2017

 

RMB'000

RMB'000

Cash Flows from Operating Activities

 

 

Loss before tax

(6,640)

(5,272)

Impairment loss on financial assets

2,325

1,603

Dividends in specie

(90)

-

Finance costs

123

71

Foreign currency loss

46

-

Decrease/(increase) in trade and other receivables

27

143

Increase/(decrease) in trade and other payables

2,319

(688)

 

 

 

Cash Flows from Investing Activities

 

 

Finance income

-

-

Net cash used in investing activities

-

-

 

 

 

Cash Flows from Financing Activities

 

 

Loans from equity holders

5,054

9,249

Loan to related party

(2)

-

Repayment of loans from equity holders

(3,213)

(6,804)

Net cash generated from financing activities

1,839

2,445

 

 

 

Net (decrease) in cash and cash equivalents

(51)

(1,698)

 

 

 

Cash and cash equivalents at beginning of the year

381

2,079

Cash and cash equivalents at end of the year (note 17)

330

381

 

 

Non-cash transactions:

 

Investment assets have been impaired by RMB 2,325,000 (see note 15).

 

On 3 April 2018, the RMB 3,855,000 convertible loan due to Mr Chen Chih-Lung was converted into 40,000,000 ordinary shares (see note 19).

 

 


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