Gowin New Energy Grp - Annual Results

20 June 2022

Gowin New Energy Group Limited

("Gowin" or the "Company")

Audited Annual Results for the year ended 31 December 2021

Gowin New Energy Group Limited is delighted to report its audited annual results for the twelve months ended 31 December 2021.

Chairman's Statement

Gowin New Energy Group Limited (the "Group" or "Gowin") is pleased to release its 2021 Annual Report for the period 1 January 2021 to 31 December 2021. There has been no material change to the financial position of the Group since the 2021 Interim Report.

Gowin has historically been engaged in the sale and investment of LED related products based in Taiwan. With the global decline of the LED industry, the Group's revenue generated from the LED business is limited. However, the Group still retains the business capability and continues to seek opportunities which are profitable in this sector. The Group has a 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 has been working on launching a new 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. The initial stage of the business was completed, including the establishment of its new subsidiary company and the initial fundraising for the business; however, the planned launch was delayed due to the COVID-19 restrictions in both China and Taiwan. The Group has been frustrated by Covid setbacks in Taiwan and the well-publicised restrictions and border closings in China, due to its Covid Zero policy, resulting in whole city lockdowns including Shenzhen, Shanghai and Beijing. Given China is the key to Gowin's tea business supply chain, these impacts matter and mean the Group must continue to bide its time before formally launching the tea business.

Hence, with the continued impact caused by the ongoing pandemic, a new business project, the agarwood trading, was announced on 10 February 2022. The agarwood trading focuses 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 initial trial of the agarwood activity is in advanced stages of preparation. Should the trial be successful, the Group intends to develop a sustainable agarwood trading business.

The Group has continued 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 impose appropriate measures to minimise the adverse impact on its people and the business operation of the Group; it will as always pay close attention to the ongoing and mutating COVID-19 outbreak and respond to its impact, if any, on the Group.

A previously reported, the Group announced that Mr. Wang Huai Chun, the Group's Chief Financial Officer, had stepped down from his role, and Mr. Shu Yi How was appointed as the new CFO with effect from 3 August 2021. His appointment provides the Group with strong in-house corporate finance and deal making skills, which hopefully will benefit the longer-term success for the Group. Together with the Directors, he is assisting with business strategy development, assessing various potential opportunities that current global disruptive factors may bring. 

CEO Mr Chen Chih-Lung has committed to continue 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.

Garry Willinge

Non-Executive Chairman

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

GOWIN NEW ENERGY GROUP LIMITED

NON-STATUTORY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021