Audited Annual Results year ended 31 December 2022

28 June 2023

Gowin New Energy Group Limited

("Gowin" or the "Company")

Audited Annual Results for the year ended 31 December 2022

Gowin New Energy Group Limited is delighted to report its audited annual results for the twelve months ended 31 December 2022.

Chairman's Statement

Gowin New Energy Group Limited (the "Group" or "Gowin") is pleased to announce its annual results for the year ended 31 December 2022 including early sales success in its agarwood project.

Gowin has historically been engaged in the sale and investment of LED related products based in Taiwan. The Group has an investment 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 continues to assess the opportunity to relaunch its 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. Given China is the key to Gowin's tea business supply chain, the well publicised and highly impactful Covid-19 related lockdowns in 2022 (affecting the whole economy and every industry sector) meant the Group has had to wait before driving the tea business forward. The good news is that the People's Republic of China ("PRC") government completely lifted its Covid Zero policy at the end of 2022 and borders opened more freely in February 2023. The Group is now assessing the tea trading environment and any hangover commercial restrictions from the three years of Covid lockdowns in China and expects to make a business decision later in 2023 as to how and when it may tentatively relaunch the tea trading business.

The Group announced the proposed launch of a new agarwood trading business on 10 February 2022 and provided a trading update on 7 November 2022. The agarwood business has its focus on trading high-quality agarwood products, including agarwood incense which is widely used in religious ceremonies in Taiwan and essential oils which can be applied in many ways in daily life. Contracts were signed with Gowin's supplier P&I Enterprise Company Limited ("P&I") and its sales and distribution partner Nine Angel Limited Company ("Nine Angel") on 4 November 2022. As at 31 December 2022, the incense powder sales achieved was 1.2 million CNY, a most encouraging start. In addition, the Group established a Gowin New Energy Limited Taiwan Branch ("Taiwan Branch") on 22 December 2022, in preparation for ending its temporary related party arrangement with Fonyu Investment Consultants Company Limited ("Fonyu"). This transaction is yet to complete, so Fonyu retains its role for the time being, after which future trading will be undertaken by the Taiwan Branch. The Group continues to work hard on product design and expansion (e.g., essential oils) as well as on market development and, taking advantage of the improved environment after pandemic restrictions gradually ease, the Group is proactively engaging with new prospective clients in order to secure their future business. The Group will update the market on its agarwood business developments as they arise. 

The Group always strives to provide a safe working environment for its workforce and stakeholders and for some time has implemented preventive measures to reduce the spread of Covid-19 in the workplace, including working from home or half-paid sick leave within five days of Covid-19 positive. The Group has also reviewed its compliance and performance in the context of the broad Taiwan government Occupational Safety and Health Act and is satisfied with its overall performance and will pay close attention to new Covid-19 and other risks should they arise.

The Directors pay close attention to financial, non-financial and the well understood geopolitical risks associated with Taiwan and the PRC. 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 8 June 2023. These loans are a measure of his determination and commitment to the Group. 

The Directors are committed to achieving sustainable profitability, step by step. They 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

Date: 28 June 2023

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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

GOWIN NEW ENERGY GROUP LIMITED

NON-STATUTORY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022

GOWIN NEW ENERGY GROUP LIMITED

NON-STATUTORY CONSOLIDATED STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2022

The Consolidated Financial Statements were approved by the board of Directors and authorised for issue  on 28 June 2023 and were signed on its behalf by:

Garry Willinge                                                                          Chen Chih-Lung

Director                                                                                      Director

GOWIN NEW ENERGY GROUP LIMITED

NON-STATUTORY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2022

GOWIN NEW ENERGY GROUP LIMITED

NON-STATUTORY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

 

Non-cash transactions:

The fair value loss on financial assets was RMB 936,000 (2021: gain of RMB 535,000).

During the year, finance cost of RMB 321,000 (2021: RMB 305,000) incurred was credited to the loans from equity holders.

This financial information has been extracted from the audited financial statements of the Company for the year ended 31 December 2022.  The financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS).