Source - RNS
RNS Number : 3657L
Gowin New Energy Group Limited
30 September 2016
 

 

                                                                                                                        30 September 2016

 

 

Gowin New Energy Group Limited

("GNE" or the "Group")

(ISDX: GWIN)

 

Interim Results for the Six Months Ended 30 June 2016

 

Gowin New Energy Group Limited, the China-based group engaged in the research and development, outsourcing and sales of LED lighting products, today announces its unaudited financial results for the six months ended 30 June 2016.

 

Chairman's Statement

 

Business Overview

 

As previously reported, the Group terminated the Variable Interest Equity ("VIE") relationship with a PRC company Dongguan Yichia Optoelectronics Technology Co., Limited ("Yichia Opto") late last year. As a result of that termination between the Group and Yichia Opto, the Group's business turnover in the first half year of 2016 has significantly decreased, but has simultaneously enabled the Group to continue focusing on R&D progress and expand into other businesses with less working capital requirement. The Group has been exploring and implementing its expanding business base in the first half year of 2016 with minimal incremental business turnover in the six months ending 30 June 2016. In this period the Group has engaged with SOPHELIN BIOTECH CO., LTD and PLEASE BIOTECHNOLOGY CO., LTD developing an anti-allergy filter product which is close to completion. Additionally, the Group has engaged with XIANG-TENG ENTERTAINMENT LIMITED on entertainment sector game facility solutions which are expected to make meaningful profit contributions to the Group in the future. These two business development projects will commence sales in the second half year of 2016, driving expected strong sales and Group profit contribution. 

 

Since most of the Group's employees operate the business in Taiwan, the Group's representative office has been set up in Taoyuan city, in operation since June 2016. To support the Group's future development, the Group is arranging to set up two subsidiaries respectively located in Taiwan and China. The implementation of the two subsidiaries is currently in the project planning phase; the Group will disclose more information as they approach becoming operational.

 

Financial Position

 

The total cash balance of the Group as at 30 June 2016 is RMB 9,204,796, considered sufficient (along with conservative projected sales income) to meet its medium term working capital needs for R&D, business expansion and recurring operational expenses. In addition, as a safety measure, should there be any additional unforeseen costs, the Group's CEO Chen Chih Lung has signed a promissory agreement to maintain the Group's ongoing operations and liquidity posture as required. The Board will continue to monitor its cash flow projections on a monthly basis. 

 

Rosin Trading Limited ("Rosin", a subsidiary of the Group) lent US$890,000 to Choice Only International Ent. Co., Ltd. ("Choice") on 26 December 2015, due to be repaid by 26 June 2016. In order to ensure that Choice will redeem the loan in due course, the Group's CEO Chen Chih Lung deposited US$530,888 with the Group as security. As at 26 June 2016, Choice had an outstanding loan amount of US$340,880 which was settled out of the security deposit of US$530,888 provided by Chen Chih Lung. As a result, Choice has met its loan repayment obligations on 26 June 2016.

 

As described earlier in this report, the Group is proactively expanding its offerings in multiple markets. For example, the Group is evaluating a potential business partnership with TAIWAN THICK-FILM INDUSTRIES CORP. ("Tailon"). Tailon is a company mainly engaged in LED components and panels which they would potentially assemble for our Group's business and sales. Tailon currently has very strong business capital and profits, as revealed on its website and the Taiwan Stock Exchange. When the due diligence report is available the Board will meet to decide if, how and when to invest, at which time the Group will make an appropriate announcement.

 

Business Outlook

 

The main business projects which are under development by the Group in 2016 are (1) developing anti-allergy filter products (2) entertainment sector with game facility solutions (3) potential investment in Tailon. These projects, as they come to fruition, are expected to significantly enhance Group profitability beginning late in the second half year of 2016. Tailon, in particular, has broad scale and sustainable profits, with significant upside from a potential partnership with Gowin. In addition, the Group continues its focus on LED R&D and new innovations in indoor and outdoor lighting production which will enhance global commitment to new energy solutions, with features such as power saving function, wafers integration and power effectiveness.

 

Conclusion

 

The Board is confident about its business direction and expected growth in revenues and profits. Shareholders will be kept up to date on developments.

 

I really appreciate all the support from our shareholders. It's acknowledged that in the recent Group restructuring phase there has been little growth. However, with the continuous committed efforts of the Board and staff, a brighter future is anticipated with commensurate upward trends in shareholder value. Finally, on the behalf of the Board, I wish to thank our indispensable employees for their hard work and results.

 

 

Garry Willinge

Non-Executive Chairman

 

30 September 2016

 

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

Condensed consolidated statement of comprehensive income

For the six months ended 30 June 2016

 

 




 

Six months


Restated

Six months





ended


ended





30 June 2016


30 June 2015





RMB'000


RMB'000


Continuing Operations

Note


(Unaudited)


(Unaudited)









Revenue

7


24


-


Cost of sales



(23

)

-


Gross profit



1


-









Administrative expenses

9


(3,410

)

(5,679

)

Operating loss



(3,409

)

(5,679

)








Finance income

8


349


-









Loss before tax



(3,060

)

(5,679

)








Tax

10


-


-









Loss from continuing operations



(3,060

)

(5,679

)








Discontinued operations







Loss from discontinued operations



-


(6,884

)








Loss for the period



(3,060

)

(12,563

)








Other comprehensive income



-


-


 

 

 

 

 







Total comprehensive loss for the period attributable to owners of the parent



(3,060

)

(12,563

)















Loss per share attributable to owners of the parent during the period expressed in RMB per share







Basic and diluted loss per share

11


(0.004)


(0.030

)

 



Gowin New Energy Group Limited

Condensed consolidated statement of financial position

As at 30 June 2016

 




As at


Restated as at


As at



Note


30 June

 2016


30 June

2015


31 December 2015





RMB'000


RMB'000


RMB'000





(Unaudited)


(Unaudited)


(Audited)


Assets









Current assets









Trade and other receivables

13


27,168


20


6,532


Cash in bank



9,204


5,988


1,309





36,372


6,008


7,841











Assets directly associated with the discontinued operations



-


140,903


-


Total assets



36,372


     146,911


7,841











Current liabilities


















Trade and other payables

15


(16,144)


(13,575

)

(17,052)





(16,144)


(13,575

)



Liabilities directly associated with the discontinued operations



-


(101,611

)

-


Total  liabilities



(16,144)


(115,186

)

(17,052)











Net assets



20,228


31,725


(9,211)




















Equity attributable to owners of the Company









Share capital

16


77,071


44,571


44,571


Share premium



19,988


19,988


19,989


Retained loss



(76,831

)

(32,834

)

(73,771)


Total equity



20,228


31,725


(9,211)











 

 









 

 

 

Gowin New Energy Group Limited

Condensed consolidated statement of changes in equity

For the six months ended 30 June 2016

 


Attributable to owners of the Company



Share capital

Share premium

Reverse acquisition reserve

Retained losses

Total


RMB'000

RMB'000

RMB'000

RMB'000

RMB'000

For the six months ended 30 June 2015 (Unaudited)

 

Balance at 1 January 2015 (Audited)

34,571

14,677

(10,049)

(10,222)

28,977

Loss for the period

-

-

-

(12,563)

(12,563)

Other comprehensive income for the period

-

-

-

-

-

Total comprehensive income for the period

-

-

-

(12,563)

(12,563)

Total transactions with owners, recognized directly in equity

Issue of shares

10,000

5,311

-

-

15,311

Reallocation

-

-

10,049

(10,049)

-

Restated balance as at 30 June 2015

44,571

19,988

-

(32,834)

31,725

 

 

For the six months ended 30 June 2016 (Unaudited)

 

Balance as at 1 January 2016 (Audited)

44,571

19,988

-

(73,771)

(9,212)

Loss for the period

-

-

-

(3,060)

(3,060)

Other comprehensive income for the period

-

-

-

-

-

Total comprehensive income    for the period

-

-

-

(3,060)

(3,060)

Total transactions with owners, recognized directly in equity






Issue of shares

32,500

-

-

 

-

 

32,500

Balance as at 30 June 2016

77,071

19,988

-

(76,831)

20,228



Gowin New Energy Group Limited

Condensed consolidated statement of cash flows

For the six months ended 30 June 2016

 

 

 


 

Six months


Restated

Six months



ended


ended



30 June 2016


30 June

2015



RMB'000


RMB'000



(Unaudited)


(Unaudited)







Cash Flows used in Operating Activities





Loss before tax

(3,060

)

(5,679

)

Finance income

(349

)

-


Decrease/(increase) in trade and other receivables

621


(1,877

)

Increase in trade and other payables

1,553


9,437


Net cash used in operating activities by discontinued operations

-


(10,781

)






Net cash used in operating activities

(1,235

)

(8,900

)











Cash Flows generated from Financing Activities





Issue of shares

3,810


15,311


Repayment of loan made to related party

5,321


-


Net cash used by discontinued operations

-


(435

)






Net cash generated from financing activities

9,131


14,876












Net increase in cash and cash equivalents

7,895


5,976


 

Cash and cash equivalents at beginning of period

 

1,309


 

12







Cash and cash equivalents at end of period

9,204


5,988







 

 


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