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Gowin New Energy Grp - Audited Annual Results year ended 31 December 2016


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Gowin New Energy Group Limited · GWIN

31/05/2017 13:58

Gowin New Energy Grp - Audited Annual Results year ended 31 December 2016 London Stock Exchange
RNS Number : 7169G
Gowin New Energy Group Limited
31 May 2017
 

31 May 2017

 

Gowin New Energy Group Limited

("Gowin" or the "Company")

 

Audited Annual Results for the year ended 31 December 2016

 

Gowin New Energy Group Limited is delighted to report its audited annual results for the twelve months ended 31 December 2016.

 

Chairman's statement

Business Overview

The principal activity of Gowin New Energy Group Limited ("the Group') is research and development, outsourcing production and sales of LED lighting products in China and abroad, with focus on general lighting and backlighting. The financial year 2016 for the Group including its subsidiaries was a year of continued restructuring and business development with long term sustainability in mind. The results clearly show the ordinary course of LED lighting sales continued to be very slow. Since the Variable Interest Equity ("VIE") contracts were terminated with Yichia Optoelectronics Technology Co., Ltd ("Yichia Opto") in 2015, the subsidiary Gowin New Energy Holdings Limited ("Holdings") serves no purpose. Consequently, the winding-up process of Holdings was approved by the Board in 2016 and is currently being completed. Upon completion of both the winding-up processes of Holdings and Yichia Opto, the Group's investments in those entities also cease providing for simpler management and the elimination of the losses that had accumulated over a number of years.

 

Regarding the Group's business strategy, its focus has consistently been on LED operations and sales, including after the VIE contract termination with Yichia Opto in 2015, but it is evidential that sales performance has been below target for reasons to do with the market and lack of human and financial resources to engage effectively.  Therefore, the Board has been working diligently reviewing its investment opportunity options, for the benefit of the long term. The Group continues to value its position as a publicly listed company on NEX. The Directors continue to evaluate business opportunities for the Group aiming to increase value for shareholders, announcements about which will be made when preparations are complete. As explained in the Group's Interim Results for the six months ended 30 June 2016, one of the opportunities being evaluated is a relationship with TAIWAN THICK-FILM INDUSTRIES CORP. ("TTFI"). TTFI's principal activity is production and sales of LED and Back Light Module products, a similar business to the Group. TTFI is listed on the Taipei Stock Exchange and is profitable.

 

Financial Position

 

The Group will concentrate on achieving returns through its LED business subsidiaries and from associated investment returns. The Group intends to attract capital and make cash investments in other businesses. CEO 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.         

 

Business Outlook and Conclusion

 

The Board will continue to examine opportunities to grow in the LED industry in 2017. As already expressed, CEO Mr. Chen Chih-Lung has made a commitment to the Group to provide financial assistance for any additional working capital requirements needed, thus providing for a brighter future for the Group. 

 

The Directors look forward to the coming year with confidence.

 

Events After Reporting Date

 

On 7 February 2017, the Group conducted an AGM. Six ordinary resolutions and three special resolutions were passed unanimously. In particular, special resolution 9 provided for the approval of the Capital Reduction of Gowin New Energy Group Limited, as explained in the Notice of the Annual General Meeting published for all shareholders on 15 January, 2017.  

 

 

 

The Board highly appreciates all the support from our shareholders. Though the post VIE restructuring period has been difficult, the Board is confident it is taking the right actions to prepare for a sustainable future. Additionally, on the behalf of the Board, I wish to sincerely thank our hard working employees for their efforts and results.

 

Garry Willinge

Non-Executive Chairman

31 May 2017

 

 

 

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2016

 


Note




 

2016

 

2015

Continuing Operations


RMB'000

RMB'000

Revenue

 6

28

652

Cost of sales

10

(26)

(632)

Gross profit


2

20





Administrative expenses

10

(7,232)

(9,248)

Impairment of trade receivables

15

-

(410)

Other income

  9

-

105

Operating loss


(7,230)

(9,533)





Finance income

  8

354

-

Finance cost

  9

(59)

(15)

Provision on amount due from equity holder

15

-

(20,941)





Loss before tax from continuing operations


(6,935)

(30,489)

Tax

11

-

-

Loss for the year from continuing operations


(6,935)

(30,489)





Discontinued operations




Loss from discontinued operations

 

 

-

 

(23,011)

Loss for the year attributed to equity holders of the parent


(6,935)

(53,500)





Other Comprehensive Income


-

-

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


(6,935)

(53,500)





Earnings per share expressed in RMB per share




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

12

(0.01)

(0.12)





Earnings per share for continuing operations expressed in RMB per share




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

12

(0.01)

(0.07)

 

 

 

 

 

 

 

 

GOWIN NEW ENERGY GROUP LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 DECEMBER 2016

 


Note




 

31 December 2016

 

31 December 2015



RMB'000

RMB'000

ASSETS




CURRENT ASSETS




Trade and other receivables

15

33,096

6,532

Cash and cash equivalents

16

2,079

1,309



35,175

7,841

TOTAL ASSETS


35,175

7,841





LIABILITIES




CURRENT LIABILITIES




Trade and other payables

17

(18,821)

(17,052)



(18,821)

(17,052)

TOTAL LIABILITIES




NET ASSETS


16,354

(9,211)





EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT




Share capital

18

77,071

44,571

Share premium


19,989

19,989

Retained earnings


(80,706)

(73,771)



16,354

(9,211)

 

 

The Consolidated Financial Statements were approved by the board of Directors and authorised for issue on 31 May 2017 and were signed on its behalf by:

 

Garry Willinge                            Chen Chih-Lung

Director                                     Director

 

 

 

GOWIN NEW ENERGY GROUP LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2016

 


Attributable to owners of the parent


Share capital (Note 18)

Share premium

Reverse acquisition reserve

Retained earnings

Total


RMB'000

RMB'000

RMB'000

RMB'000

RMB'000

Balance at 1 January 2015

34,571

14,677

(10,049)

(10,222)

28,977

Loss for the year

-

-

-

(53,500)

(53,500)

Other comprehensive income for the year

-

-

-

-

-

Total comprehensive income for the year

-

-

-

(53,500)

(53,500)

Total transactions with owners, recognised directly in equity






Issue of shares

10,000

5,312

-

-

15,312

Reallocation

-

-

10,049

(10,049)

-

Balance as at 31 December 2015

44,571

19,989

-

(73,771)

(9,211)

Loss for the year

-

-

-

(6,935)

(6,935)

Other comprehensive income for the year

 -

-

-

-

-

Total comprehensive income for the year

 

-

-

-

(6,935)

(6,935)

Total transactions with owners, recognised directly in equity






Issue of shares

32,500

-

-

-

32,500

Balance as at 31 December 2016

77,071

19,989

-

(80,706)

16,354

 

 

 

 

 

 

GOWIN NEW ENERGY GROUP LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2016


2016

2015


RMB'000

RMB'000

Cash Flows from Operating Activities


Loss Before Tax

(6,935)

(9,533)

Finance income

(354)

(15)

Finance cost

40

-

(Increase)/Decrease in trade and other receivables

(5,582)

327

Increase/(Decrease) in trade and other payables

383

(1,464)

Net cash used by discontinued operations

-

(10,250)

Net cash used in operating activities

(12,448)

(20,935)

Cash Flows from Investing Activities



Finance income

354

-

Net cash used in investing activities

354

-

Cash Flows from Financing Activities



Proceeds from issue of shares

3,810

15,312

Loan made to related party

(527)

(5,775)

Repayment of loan from related party

5,775

-

Shareholders' loans

3,846

 12,618

Finance cost

(40)

-

Net cash generated from financing activities

12,864

22,155

Net Increase in cash and cash equivalents

770

1,220

Cash and cash equivalents at the beginning of the year

1,309

89

Cash and cash equivalents at the end of the year

2,079

1,309

 

Non-cash transactions:

As explained in note 17 Trade and Other Payables, RMB3,855,000 of the amount due to Mr Chen Chih-Lung has been converted into convertible loan during the year.

As explained in note 18 Share Capital, certain convertible loans where capitalized during the year by the issue of Ordinary Shares.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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