TIDMGWIN
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
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 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 30 June 2022
2023
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. D ividend
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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END
NEXEASNPAFLDEFA
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