Gowin New Energy Grp - Annual Results for the year ended 31 December 2023

Announcement provided by

Gowin New Energy Group Limited · GWIN

25/06/2024 07:00

RNS Number : 6425T

Gowin New Energy Group Limited

25 June 2024

Gowin New Energy Group Limited

("Gowin" or the "Company")

Audited Annual Results for the year ended 31 December 2023

Gowin New Energy Group Limited is delighted to report its audited annual results for the twelve months ended 31 December 2023.

Chairman's Statement

Gowin New Energy Group Limited (the "Group" or "Gowin") is pleased to release its Annual Report year ended 31 December 2023. The Group's financial position is essentially unchanged since the 2023 Interim Report. The Group achieved dividend income and booked capital gains on its investment in 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. There are no current plans to dispose or buy additional TTFI shares. Given the decline of the LED industry, there are no other plans for LED business development or investments at this time.

In relation to the tea business, a small amount of sales of Taiwanese native old tea was achieved in the period. Stakeholder relationships are being maintained and new opportunities are being assessed.

In the Gowin 2023 Interim Report, a variety of agarwood product initiatives were outlined. Due to a serious illness of the key executive in Gowin's original customer, the future prospects of that company are in doubt and the Group is now working on preliminary strategies for international sales development. The agarwood business segment remains in focus for the Group.

Regarding new business development, the Group is actively exploring new opportunities, together with assessing the means by which associated new businesses could be integrated into the Group along with the financial reengineering that would result. The Board continues to be focused on seeking solutions to establishing sustainable cashflows and a path to profitability, step by step. The global economic and geopolitical environment are real challenges, but Gowin is encouraged by its stakeholders and new business introductions, who wish to see the Group successfully leverage its status as a publicly quoted company in the UK. 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 24 May 2024. 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

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 / George Duxberry

Tel: +44 (0)207 399 9400

NON-STATUTORY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023

	2023	2022
Continuing Operations	RMB'000	RMB'000

Revenue	65	1,216
Cost of sales	(61)	(1,076)
	_____	_____

Gross profit	4	140

Administrative expenses	(4,648)	(3,467)
	_____	_____

Operating loss	(4,644)	(3,327)

Finance costs	(357)	(325)
Other income	32	6
Gain/(loss) on fair value change and stock dividend on financial assets at fair value through profit or loss Foreign exchange (loss)/gain	209 (817)	(936) 175
	_____	_____

Loss before tax from continuing operations	(5,577)	(4,407)

Tax	-	-
	_____	_____

Loss for the year from continuing operations	(5,577)	(4,407)
	_____	_____
Loss for the year attributed to owners of the parent entity	(5,577)	(4,407)
	____	____

Other Comprehensive Income	-	-
	_____	_____
Total Comprehensive Loss for the year attributable to owners of the parent entity	(5,577)	(4,407)
	_____	_____
Loss per share expressed in RMB per share

Basic and diluted loss per share for the year attributable to owners of the parent entity	(0.02)	(0.02)

NON-STATUTORY CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2023

	31 December 2023	31 December 2022
	RMB'000	RMB'000
ASSETS
NON-CURRENT ASSETS
Investments at fair value through profit or loss	3,889	3,407
	_____	_____

TOTAL NON-CURRENT ASSETS	3,889	3,407
	_____	_____
CURRENT ASSETS
Trade and other receivables	593	1,779
Cash and cash equivalents	280	815
	_____	_____

TOTAL CURRENT ASSETS	873	2,594
	_____	_____

TOTAL ASSETS	4,762	6,001
	_____	_____
LIABILITIES

CURRENT LIABILITIES
Trade and other payables	(15,899)	(13,663)
Loans from equity holders	(18,420)	(11,330)
	______	______

TOTAL CURRENT LIABILITIES	(34,319)	(24,993)
	______	______

NET CURRENT LIABILITIES	(33,446)	(22,399)
	______	______

NON-CURRENT LIABILITIES
Loans from equity holders	-	(4,988)
	______	______

TOTAL NON-CURRENT LIABILITIES	-	(4,988)
	______	______

TOTAL LIABILITIES	(34,319)	(29,981)
	______	______

NET LIABILITIES	(29,557)	(23,980)
	______	______
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT ENTITY
Share capital	29,000	29,000
Preference shares	2,195	2,195
Retained earnings	(60,752)	(55,175)
	______	______

TOTAL DEFICIT	(29,557)	(23,980)
	______	______

The Consolidated Financial Statements were approved by the board of Directors and authorised for issue on 24 June 2024 and were signed on its behalf by:

Garry Willinge Chen Chih-Lung

Director Director

NON-STATUTORY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023

	Attributable to owners of the parent entity
	Share capital	Preference shares	Accumulated losses	Total
	RMB'000	RMB'000	RMB'000	RMB'000
Balance as at 1 January 2022	29,000	2,195	(50,768)	(19,573)
	_____	_____	_____	______

Loss for the year	-	-	(4,407)	(4,407)
	_____	_____	_____	______

Total comprehensive loss for the year	-	-	(4,407)	(4,407)
	_____	_____	_____	______
Total transactions with owners, recognised directly in equity	-	-	-	-
	_____	_____	_____	______

Balance as at 31 December 2022	29,000	2,195	(55,175)	(23,980)
	_____	_____	_____	______

Loss for the year	-	-	(5,577)	(5,577)
	_____	_____	_____	______

Total comprehensive loss for the year	-	-	(5,577)	(5,577)
	_____	_____	_____	______
Total transactions with owners, recognised directly in equity	-	-	-	-
	_____	_____	_____	______
Balance as at 31 December 2023	29,000	2,195	(60,752)	(29,557)
	_____	______	_____	______

NON-STATUTORY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

	2023	2022
	RMB'000	RMB'000
Cash Flows from Operating Activities

Loss before tax	(5,577)	(4,407)

(Gain)/loss on fair value change and stock dividend on financial assets	(209)	936
Finance costs	357	325
Foreign currency gain	496	(488)
Impairment loss on trade receivables	1,152	-
Decrease/(Increase) in trade and other receivables	34	(1,705)
Increase in trade and other payables	2,236	1,851
	_____	_____

Net cash used in operating activities	(1,511)	(3,488)
	_____	_____

Cash Flows from Investing Activities
Finance costs	(4)	(4)
	_____	_____

Net cash used in investing activities	(4)	(4)
	_____	_____
Cash Flows from Financing Activities

Loans from equity holders	980	1,977
	_____	_____

Net cash generated from financing activities	980	1,977
	_____	_____

Net decrease in cash and cash equivalents	(535)	(1,515)

Cash and cash equivalents at beginning of the year	815	2,330
	_____	_____

Cash and cash equivalents at end of the year (note 16)	280	815
	_____	_____

Non-cash transactions:

The Gain on fair value change and stock dividend on financial assets was RMB 209,000 (2022: loss on fair value change on financial assets of RMB 936,000).

During the year, finance cost of RMB 353,000 (2022: RMB 321,000) incurred was credited to the loans from equity holders.

The notes contained in the Annual Report and Consolidated Financial Statements form part of these financial statements.

This financial information has been extracted from the audited financial statements of the Company for the year ended 31 December 2023. The financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS). The Annual Report is available from the Company's website at www.gowingrp.com.

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