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DJ Gowin New Energy Group Limited Audited Annual Results for year 31 December 2019

TIDMGWIN

RNS Number : 0371P

Gowin New Energy Group Limited

04 June 2020

4 June 2020

Gowin New Energy Group Limited

("Gowin" or the "Company")

Audited Annual Results for the year ended 31 December 2019

Gowin New Energy Group Limited is delighted to report its audited annual results for the twelve months ended 31 December 2019.

Chairman's s tatement

Gowin New Energy Group Limited ("the Group") is pleased to release its 2019 Annual Report for the period 1 January 2019 to 31 December 2019. There have been no material financial outcomes changes to the LED and Tea businesses compared to that reported in the 2019 Interim Report.

As previously disclosed, management is working diligently on launching the new Tea business. The Group reported good news in that new preference shares were admitted to trading on the AQSE Growth Market on 7 February 2020. The Group has received GBP250,000 from an investor Mr Wen Sheng-Tung to issue 12,500,000 2% Preference Shares of GBP0.02 each. The Group is now preparing the next stage of the Tea business.

Shareholders may be feeling a level of impatience about the progress of the Tea business. Preparing to formally launch the Tea business pilot has been somewhat new and arduous. The board and management are determined to ensure all business processes and workflows are sustainable going forward and to achieve this in an orderly manner. This is an emerging new business model involving preference shares, tea sourcing, relationships with China suppliers and tea exchanges, financial processes related to earnings, interest payments and dividends in the trading company Goyoung International Company Limited and more. Accordingly, the Group had always intended to undertake a small pilot through the initial allotment of preference shares to Mr Wen. The Group is confident that upon the successful conclusion of the pilot, there can be rapid and sustainable growth of the Tea business beginning in the latter part of 2020, given positive global economic conditions. Additionally, the Tea business model lends itself to adaptation to other commodities, currently under consideration.

Though the US-China trade tensions and Covid-19 have not directly impacted upon the Group's business to date, future economic conditions after global lockdowns are uncertain. A recent "The Economist" magazine article is calling the economy ahead 'a 90% economy'. There are many uncertainties and risks to be endured concerning geopolitical conflicts, restoring full capacity factory production, consumer spending, oil prices, level of public debt and general financial hardships across the world, while the pursuit of a vaccine continues. We are in unchartered territory and the Group's board will be vigilant in its deliberations, risk management and decision making and adjust business plans as necessary.

On 24 April 2020, the Group announced that at the Company's Annual General Meeting ("AGM") held on that day, all of the resolutions proposed, as set out in the Notice of AGM, were duly passed.

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.

Garry Willinge

Non-Executive Chairman

31 May 2020

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 2019

 
 
 
                                                            2019       2018 
 Continuing Operations                           Note    RMB'000    RMB'000 
 Revenue                                          6            8        427 
 Cost of sales                                                 -      (368) 
                                                       ---------  --------- 
 Gross profit                                                  8         59 
 
 Administrative expenses                          9      (4,096)    (4,018) 
 Selling expenses                                            (3)          - 
                                                       ---------  --------- 
 Operating loss                                          (4,091)    (3,959) 
 
 Finance costs                                    8        (186)      (129) 
 Other income                                                105         95 
 Impairment loss on investments                   14       (206)    (2,325) 
  Foreign exchange gain                                    (292)      (322) 
 Loss before tax from continuing operations              (4,670)    (6,640) 
                                                  11           -          - 
   Tax 
                                                       ---------  --------- 
 Loss for the year from continuing operations            (4,670)    (6,640) 
                                                       ---------  --------- 
 
 Loss for the year attributed to equity 
  holders of the parent entity                           (4,670)    (6,640) 
                                                       ---------  --------- 
 
 Other Comprehensive Income                                    -          - 
                                                       ---------  --------- 
 Total Comprehensive Income for the year 
  attributable to owners of the parent 
  entity                                                 (4,670)    (6,640) 
                                                       =========  ========= 
 
 Earnings / (Loss) per share expressed 
  in RMB per share 
 Basic and diluted earnings / (Loss) 
  per share for the year attributable 
  to equity holders of the parent entity           12     (0.02)     (0.03) 
 
 
 

NON-STATUTORY CONSOLIDATED STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED 31 DECEMBER 2019

 
 
                                                       Note   31 December 2019   31 December 2018 
                                                                       RMB'000            RMB'000 
 ASSETS 
 NON-CURRENT ASSETS 
 Investments at fair value through profit or loss      14                2,232              2,305 
                                                             -----------------  ----------------- 
 TOTAL NON-CURRENT ASSETS                                                2,232              2,305 
                                                             -----------------  ----------------- 
 
 CURRENT ASSETS 
 Trade and other receivables                           15                  158                 81 
 Cash and cash equivalents                             16                2,747                330 
                                                             -----------------  ----------------- 
 TOTAL CURRENT ASSETS                                                    2,905                411 
                                                             -----------------  ----------------- 
 TOTAL ASSETS                                                            5,137              2,716 
                                                             -----------------  ----------------- 
 
 LIABILITIES 
 CURRENT LIABILITIES 
 Trade and other payables                              17             (21,354)           (14,263) 
 TOTAL CURRENT LIABILITIES                                            (21,354)           (14,263) 
 TOTAL LIABILITIES                                                    (21,354)           (14,263) 
                                                             -----------------  ----------------- 
 NET LIABILITIES                                                      (16,217)           (11,547) 
                                                             =================  ================= 
 
 EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT ENTITY 
 Share capital                                         18               29,000             29,000 
 Retained earnings                                                  (45 ,217 )         (40 ,547 ) 
                                                             -----------------  ----------------- 
 TOTAL EQUITY                                                         (16,217)           (11,547) 
                                                             =================  ================= 
 

The Consolidated Financial Statements were approved by the board of Directors and authorised for issue on 31 May 2020 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 2019

 
 
                                                                 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 20 18                                   25,000               -            (33,907)    (8,907) 
 Loss for the year                                                    -               -             (6,640)    (6,640) 
 
 
   Total comprehensive income for the year                            -               -             (6,640)    (6,640) 
                                                       ----------------  --------------  ------------------  --------- 
 Total transactions with owners, recognised directly 
 in equity 
 

(MORE TO FOLLOW) Dow Jones Newswires

June 04, 2020 13:09 ET (17:09 GMT)

DJ Gowin New Energy Group Limited Audited Annual -2-

   Issue of shares (Note 18)                                      4,000               -                   -      4,000 
                                                       ----------------  --------------  ------------------  --------- 
 Balance as at 31 December 2018                                  29,000               -            (40,547)   (11,547) 
                                                       ----------------  --------------  ------------------  --------- 
 
 Loss for the year                                                    -               -             (4,670)    (4,670) 
 
 
   Total comprehensive income for the year                            -               -             (4,670)    (4,670) 
                                                       ----------------  --------------  ------------------  --------- 
 Total transactions with owners, recognised directly 
 in equity 
 
   Issue of shares (Note 18) 
 Balance as at 31 December 2019                                  29,000               -            (45,217)   (16,217) 
                                                       ================  ==============  ==================  ========= 
 

NON-STATUTORY CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2019

 
 
                                                                2019        2018 
                                                            RMB '000    RMB '000 
 Cash Flows from Operating Activities 
 Loss before tax                                             (4,670)     (6,640) 
 Impairment loss on financial assets                             206       2,325 
 Dividends in specie                                            (95)        (90) 
 Finance costs                                                   180         123 
 Foreign currency loss                                           413          46 
 Decrease in trade and other receivables                           -          27 
 Increase in trade and other payables                          1,689       2,319 
 Net cash used in operating activities                     ( 2 ,277)   ( 1 ,890) 
                                                          ----------  ---------- 
 
 Cash Flows from Investing Activities 
 Finance income                                                 (11)           - 
 Net cash used in investing activities                          (11)           - 
                                                          ----------  ---------- 
 
 Cash Flows from Financing Activities 
 Loans from equity holders                                     4,228       5,054 
 Loan to related party                                           477         (2) 
 Repayment of loans from equity holders                            -     (3,213) 
                                                          ----------  ---------- 
 Net cash generated from financing activities                 4 ,705      1 ,839 
                                                          ----------  ---------- 
 
 Net (decrease) in cash and cash equivalents                   2,417        (51) 
 
 Cash and cash equivalents at beginning of the year              330         381 
 Cash and cash equivalents at end of the year (note 16)        2,747         330 
                                                          ==========  ========== 
 

Non-cash transactions:

Investment assets have been impaired by RMB 206,000 (see note 14).

GBP250,000 preference shares funds collected in advance

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June 04, 2020 13:09 ET (17:09 GMT)