![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Gowin New EN. | LSE:GWIN | London | Ordinary Share | KYG412151071 | ORD 1P (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.975 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMGWIN
RNS Number : 7150A
Gowin New Energy Group Limited
30 September 2015
30 September 2015
Gowin New Energy Group Limited
("GNE" or the "Group")
(ISDX: GWIN)
Interim Results for the Six Months Ended 30 June 2015
Gowin New Energy Group Limited, the China-based group engaged in the research and development, manufacturing and sales of LED lighting products, today announces its unaudited financial results for the six months ended 30 June 2015.
Chairman's Statement
2015 Year to Date Overview
The year began with the Group continuing its search for strategic investors to facilitate business growth and ensure sustainable relief from the working capital issues experienced in 2014.
On 28 January 2015, the Group announced a fund raising of GBP1.2 million, conditional upon the passing of resolutions at an extraordinary general meeting (EGM).
On 16 February 2015, the Group announced the passing of several resolutions at an EGM including the application of 60 million new shares at 2p per share to be admitted to AIM on 17 February, 2015. On 15 April 2015, a further GBP400,000 was raised through the issuance of 40 million new ordinary shares at 1p per share. Collectively, these proceeds provided short term working capital that would allow the Group to embark upon its planned transformation.
The Group announced on 26 February 2015 that its ordinary shares commenced trading on the ISDX Growth Market. On 27 March 2015 the Company announced that trading in its ordinary shares on AIM would be cancelled with effect from 30 March 2015.
On 29 May 2015, the Group announced the appointments of Mr. Chen Chih Lung as Chief Executive Officer (CEO) and Mr. Chou Huan Nan as Non-executive Director. Chen and Chou are key representatives of Choice Only International Ent Co Limited. On 10 June 2015, the Group announced the resignation of Executive Director Chinsen Hsieh from the Board.
Mr. Chen and Choice Only International Ent Co Limited were investors in the aggregate GBP1.6 million fund raising in early 2015. The Choice investment is strategic because it offers the Group a new sales channel for LED technologies within Choice's already successful and innovative consumer electronic products portfolio.
Financial Results
During the six months ended 30 June 2015, the Group recorded turnover of RMB 24.7 million (for six months ended 30 June 2014: RMB 51.4 million). This decline in revenue was due to the Group's overall focus on change management for a sustainable future, continuing preparation for its consumer products channel through strategic partner Choice and the decision not to pursue construction projects with long payment terms. The Group continues to implement better credit policies and tougher qualification criteria for government street lighting projects in relation to the Chinese market as well as investments and preparation for export growth in the near future. The Group's top customers for the first half of the year were primarily street lighting in Henan province (China) together with a domestic motor vehicles lighting project and indoor lighting solutions in domestic and overseas commercial properties.
The Group continues to prepare the way to address a trend internationally to indoor and home lighting products and has engaged selected international 'big name / high volume' retailers. Because of the Group's serious working capital constraints up until February 2015, penetration into prominent international retailers has been minimal to date. The Group remains optimistic about its development of these markets over the next six to twelve months.
The loss after tax for the six months ended 30 June 2015 amounted to RMB 12.6 million (for six months ended 30 June 2014: Profit of RMB 2.0 million). Gross margins have been partly affected by price cutting from competitors as well as payments to subcontractors in lieu of manufacturing in-house.
The Group's major operating expenses, comprising research and development and administration, amounted to RMB 13.3 million (for six months ended 30 June 2014: RMB 5.2 million). Such expenses mainly comprised (i) research and development expenses to the sum of RMB 0.4 million (for six months ended 30 June 2014: RMB 1.1 million) and (ii) total staff costs to the sum of RMB 4.2 million (for six months ended 30 June 2014: RMB 3.3 million).
The Group's Accounts Receivable ('AR') value in the first half of 2015 is RMB 101.6 million (31 December 2014: RMB 92.2 million). The 6-monthly increase is because of continuing slower than desired aged AR collections.
Progress has being slow due to the challenging Chinese economy.
Key Developments
As previously communicated, the Group's future sales and marketing emphasis will be on export business growth, including sales to global retail stores requiring indoor lighting solutions, jointly developing and selling all types of household and commercial lighting. Additionally, the Group will continue to pursue selective Chinese government and commercial outdoor lighting solutions, where they meets the Group's recently adopted tighter customer qualification guidelines.
The Group continues its commitment to research and development; a critical success factor for sustainable business success. The R&D team is experienced and working on a number of indoor and outdoor lighting innovations across the value chain including power supply, integrated chips, energy efficiency and WIFI control solutions. A number of special purpose lighting solutions are also in development, where competition is limited and value creation broad.
Corporate Governance
There have been a number of changes to the Board including the appointment of a new CEO, departure of one Executive Director and the replacement of a Non-executive Director. The Board is considering the addition of another independent Non-Executive Director and expects to make an announcement in due course.
In the Group's 2013 and 2014 Annual Reports, the Board committed itself to a strong agenda on Business Strategy, aimed at ensuring the Group genuinely creates differentiation in the market place, enhancing export sales and increasing the quality and scale of its clients and eco-system of partners along with its products and service delivery. The goals and planned focus areas remain the same albeit working capital constraints prior to February 2015 have delayed implementation.
The Board continues to focus on enhancing corporate governance in line with the UK Quoted Companies Alliance (QCA) code. Furthermore, all directors attended a special training session on ISDX Listing Rules on 29 June 2015.
Current Trading and Outlook
The Group has previously communicated its transformation agenda for 2015. It affects all parts of the business under the leadership of new CEO Mr Chen. With the recent alleviation of working capital constraints, this agenda can be accelerated. A new permanent Chief Financial Officer (CFO), whose role will be to drive financial reforms in the Group as well as give oversight to new strategic developments, should be appointed in 4(th) quarter 2015.
Accounts Receivable management will continue to be a very key focus of the Group. Initiatives previously announced remain relevant.
The Group will continue to leverage its inherent strength in exploiting its own R&D and innovation advantages, which reflect the heritage of the Group since its inception.
The Group has emerged from its near-death experience and looks forward to the future. New market development and business strategies take time to implement. The Board is evaluating various options for growth and looks forward to announcing specific initiatives when they materialise. Repetition of restrictive working capital constraints is not envisaged. ISDX remains a suitable platform for GNE shares.
Notes of Appreciation
I wish to once again thank our shareholders, customers and business partners for their support of the Group in 2015. During the restructuring process revenue growth may be relatively slow. However, the Board is confident about the future prospects of the Group's business and believes shareholder patience will be rewarded. Finally, on behalf of the Board and senior management, I would like to extend our sincere appreciation to all our indispensable staff for their ongoing hard work and business contribution in 2015.
Garry Willinge
Non-Executive Chairman
30 September 2015
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 2015
Six months Six months ended ended 30 June 30 June 2015 2014 RMB'000 RMB'000 Continuing Operations Note (Unaudited) (Unaudited) Revenue 7 24,677 51,403 Cost of sales (24,297) (39,941) ----------- ----------- Gross profit 380 11,462 Operating expenses Research and development expense (351) (1,120) Provision for doubtful debts (3,800) -
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 05:54 ET (09:54 GMT)
Administrative expenses (9,132) (4,097) Other income 8 784 70 ----------- ----------- Operating (loss)/profit (12,119) 6,315 Finance income 9 - 346 Finance costs 9 (444) (442) ----------- ----------- (Loss)/profit before tax 10 (12,563) 6,219 Tax 11 - (4,219) ----------- ----------- (Loss)/profit for the period (12,563) 2,000 Other comprehensive income - - ----------- ----------- Total comprehensive (loss)/income for the period (12,563) 2,000 =========== =========== Attributable to: Owners of the parent (12,563) 2,000 Non-controlling interest - - ----------- ----------- Total comprehensive income for the period (12,563) 2,000 =========== =========== (Loss)/earnings per share attributable to owners of the parent during the period expressed in RMB cents per share Basic and diluted (loss)/earnings per share 12 (0.03) 0.85 =========== ===========
Gowin New Energy Group Limited
Condensed consolidated statement of financial position
As at 30 June 2015
As at As at As at Note 30 June 30 June 31 December 2015 2014 2014 RMB'000 RMB'000 RMB'000 (Unaudited) (Unaudited) (Audited) Assets Non-current assets Property, plant and equipment 14,748 17,655 16,126 Deferred tax assets 194 194 194 ------------ ----------- ------------ Total non-current assets 14,942 17,849 16,320 ------------ ----------- ------------ Current assets Inventories 5,085 18,086 13,780 Trade and other receivables 14 120,288 146,189 114,118 Cash and cash equivalents 15 6,596 292 89 ------------ ----------- ------------ Total current assets 131,969 164,567 127,987 ------------ ----------- ------------ Total assets 146,911 182,416 144,307 ============ =========== ============ Equity and liabilities Equity attributable to owners of the Company Share capital 18 44,571 34,571 34,571 Share premium 19,988 14,677 14,677 Reverse acquisition reserve (10,049 ) (10,049 ) (10,049 ) (Accumulated losses)/retained earnings (22,785 ) 25,325 (10,222 ) ------------ ----------- ------------ Total equity 31,725 64,524 28,977 ------------ ----------- ------------ Liabilities Current liabilities Trade and other payables 16 107,497 110,203 95,182 Bank borrowings 17 7,689 7,689 7,689 ------------ ----------- ------------ Total current liabilities 115,186 117,892 102,871 ------------ ----------- ------------ Non-current liabilities Non-current trade payables - - 12,459 Total liabilities 115,186 117,892 115,330 ------------ ----------- ------------ Total equity and liabilities 146,911 182,416 144,307 ============ =========== ============ Net current assets 16,783 46,675 25,116 ============ =========== ============ Total assets less current liabilities 31,725 64,524 41,436 ============ =========== ============
Gowin New Energy Group Limited
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2015
Attributable to owners of the Company ------------------------------------------------------------------------------ Reverse acquisition Retained earnings/ Share capital Share premium reserve (accumulated losses) Total RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 For the six months ended 30 June 2014 (Unaudited) Balance at 1 January 2014 (Audited) 34,571 14,677 (10,049) 23,325 62,524 Profit for the period - - - 2,000 2,000 Other comprehensive income for the period - - - - - -------------- -------------- ---------------------- ---------------------- -------------- Total comprehensive income for the period - - - 2,000 2,000 Balance as at 30 June 2014 34,571 14,677 (10,049) 25,325 64,524 -------------- -------------- ---------------------- ---------------------- -------------- For the six months ended 30 June 2015 (Unaudited) Balance as 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, recognised directly in equity Issue of shares 10,000 5,311 - - 15,311 -------------- -------------- ---------------------- ---------------------- -------------- Balance as at 30 June 2015 44,571 19,988 (10,049) (22,785) 31,725 ============== ============== ====================== ====================== ==============
Gowin New Energy Group Limited
Condensed consolidated statement of cash flows
For the six months ended 30 June 2015
Six months Six months ended ended 30 June 30 June 2015 2014 RMB'000 RMB'000 (Unaudited) (Unaudited) Cash Flows from Operating Activities (Loss)/profit before tax (12,563) 6,219 Depreciation 1,378 1,299 Finance costs 435 435 Finance income - (346) Decrease in inventories 8,695 15,312 Increase in trade and other receivables (6,170) (38,823) (Decrease)/increase in trade and other payables (144) 15,866 ----------- -----------
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 05:54 ET (09:54 GMT)
Net cash used in operating activities (8,369) (384) Cash Flows from Investing Activities Purchase of property, plant and equipment - (2,550) Deposit paid in respect of leasehold improvement - 2,231 Net cash used in investing activities - (319) ----------- ----------- Cash Flows from Financing Activities Issue of shares 15,311 - Finance costs (435) (435) Net cash generated from/(used in) financing activities 14,876 (435) Net increase/(decrease) in cash and cash equivalents 6,507 (792) Cash and cash equivalents at beginning of period 89 1,084 ----------- ----------- Cash and cash equivalents at end of period 6,596 292 =========== ===========
Gowin New Energy Group Limited
Notes to the condensed consolidated interim financial information
For the six months ended 30 June 2015
1. General information
Gowin New Energy Group Limited ("Gowin") 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 principal place business is located at Xiakeng Village, Tangjiano Management Zone, ChaShan Town, DongGuan, GuangDong, China
The principal activity of the Company is investment holding. The principal activity of the Company's subsidiaries (together with the Company referred as to the "Group") is engaged in the research and development (R&D), manufacturing and sales of LED lighting products in the People's Republic of China (the "PRC"). There is no seasonality or cyclicality of the Group's operations.
The Company's shares are listed on the ICAP Securities & Derivatives Exchange (ISDX) Growth Market.
The condensed consolidated interim financial information are presented in Renminbi ("RMB"), which is the functional currency of the Group, and all values are rounded to the nearest thousand except when indicated otherwise.
2. Basis of preparation
The condensed consolidated interim financial information have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard 34 Interim Financial Reporting. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2014, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
The condensed interim financial information set out above do not constitute statutory accounts. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS). Statutory financial statements for the year ended 31 December 2014 were approved by the Board of Directors on 27 June 2015. The report of the auditors on those financial statements was unqualified.
The condensed consolidated interim financial information of the Company have not been audited but have been reviewed by the Company's auditor, PKF Littlejohn LLP.
3. Going Concern
The Group meets its day-to-day working capital requirements through its bank facilities and operational cash flows. The current economic conditions continue to create uncertainty, particularly over (a) the delays in receiving payments from its trading counter-parties; (b) the availability of existing or new bank finance on acceptable terms; (c) whether the expired bank loan will be called for re-payment by the lending institution; and (d) whether the Group's suppliers will continue to provide extended payment terms.
Note 14 details the amounts due from trade receivables and the ageing of those trade receivables. Cash collections from these counter-parties have not been in accordance with the agreed terms of trade although significant progress has been made in the last six months in obtaining payments from customers. A number of the trade receivables are related to government building projects, and there have been significant delays in contractors receiving payment for such projects from the government, which has in turn led to delays in the Group receiving payments. However, Management remains confident, after discussions with the counter-parties, that payment will eventually be received by the counter-parties who will then be able to meet their obligations to the Group.
Note 17 details the bank borrowings of the Group. Certain loans are past their agreed redemption date, but the lender has not formally sought repayment of these sums and a higher rate of interest continues to be charged. General conditions in the PRC banking sector have been constrained over recent months.
3. Going Concern (continued)
The PRC government has made it harder for banks to lend to SMEs which has had an impact on both competitors and customers, has led to the above-mentioned increase in accounts receivable and the availability of new or additional borrowing to the Group. These factors may have a bearing on whether existing borrowings will be renewed or renewed on terms acceptable to the Group. Partly to counter the lack of bank finance the Company has raised RMB 15m in new equity during the period. The directors are in discussion with shareholders that may result in additional equity being issued.
The Directors have prepared cash flow forecasts for the Group which reflect reasonably possible changes in trading performance. These show that the Group should be able to operate within its current cash balances and prudent assumptions as to future changes in working capital.
The Directors therefore have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its condensed consolidated interim financial information.
4. Risks and uncertainties
The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2014 Annual Report and Financial Statements, a copy of which is available on the Group's website: www.gowinyichia.com. The key financial risks are credit risk; interest rate risk; liquidity risk and foreign exchange risk.
5. Critical accounting estimates and judgements
The preparation of condensed consolidated interim financial information requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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 2014 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 have been prepared under the historical cost convention.
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 2014 annual accounts, except for the adoption of the amendments and interpretations issued by the International Accounting Standards Board that are mandatory for accounting periods beginning 1 January 2015.
The effect of the adoption of these amendments and interpretations was not material to the Group's results or financial position.
7. Revenue and segment information
Revenue represents the invoiced value of goods sold and is net of value-added tax and sales return. There is no seasonality or cyclicality of the Group's operations.
For the periods presented, the Group as a whole is an operating segment since the Group is only engaged in optoelectronic products and related business. No Group's geographical information has been disclosed as the majority of the Group's operating activities are carried out in the PRC (for the purpose of preparing the financial statements, the PRC refers to the Mainland China and Hong Kong) and the Group's assets are all located in the PRC.
8. Other income Six months Six months ended ended 30 June 2015 30 June 2014 RMB'000 RMB'000 (Unaudited) (Unaudited) Government grant - 70 Gain on miscellaneous sales 784 - ------------ ----------- 784 70 ============ =========== 9. Finance income and finance costs Six months Six months ended ended 30 June 2015 30 June 2014 RMB'000 RMB'000 (Unaudited) (Unaudited) Interest income on loan to third party - 346
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 05:54 ET (09:54 GMT)
------------ ----------- Finance income - 346 ============ =========== Bank charges (9) (7) Bank borrowing interest expenses (435) (435) ------------ ----------- Finance costs (444) (442) ============ =========== Net finance costs (444) (96) ============ =========== 10. Expense by nature Six months Six months ended ended 30 June 2015 30 June 2014 RMB'000 RMB'000 (Unaudited) (Unaudited) Depreciation 1,378 1,299 Provision for impairment on receivables - - Cost of materials consumed -Research and development expenses 110 561 -Cost of sales 21,360 37,427 ------------ ----------- 21,470 37,988 Minimum lease payments for leases -Total lease payments 515 484 -Portion paid by an equity holder - (124) ------------ ----------- 515 360 Staff costs 4,231 3,395 Other operating expenses 6,186 2,116 ------------ ----------- Total cost of sales, research and development expenses and administrative expenses 33,780 45,158 ============ =========== 11. Income tax Six months Six months ended ended 30 June 30 June 2015 2014 RMB'000 RMB'000 (Unaudited) (Unaudited) Current income tax for the period - 1,888 Under provision for prior year - 2,331 ----------- ----------- - 4,219 =========== ===========
The Group is not subject to taxation in the Cayman Islands and British Virgin Islands.
No provision for Hong Kong profits tax has been made as the Group did not generate any assessable profits arising in Hong Kong during the six months ended 30 June 2015 (six months ended 30 June 2014: nil).
Under the law of the PRC on Enterprise Income Tax (the "EIT Law") and Implementation Regulation of the EIT Law, the tax rate of the PRC subsidiaries is 25% from 1 January 2008 onwards.
No provision of PRC Enterprise Income Tax was provided as the Group incurred losses in current period.
12. (Loss)/earnings per share
(a) Basic (loss)/earnings per share
Loss per share for the period ended 30 June 2015 is calculated by dividing RMB12,563,000 loss for the period attributable to the equity holders of the Company by the weighted number of shares of 413,778,474 of 2015 for the purpose of comparison. Earnings per share for the period ended 30 June 2014 is calculated by dividing RMB 2,000,000 profit for the period attributable to the equity holders of the Company by the weighted number of shares of 233,346,681 of 2014 for the purpose of comparison.
Six months Six months ended ended 30 June 2015 30 June 2014 RMB'000 RMB'000 (Unaudited) (Unaudited) Basic (loss)/earnings per share (RMB cents) (0.03) 0.85 ============ ===========
(b) Diluted (loss)/earnings per share
No diluted (loss)/earnings per share are presented as there are no potential ordinary shares outstanding for the six months ended 30 June 2015 and 2014.
13. DIVIDEND
No dividends were proposed during the reporting period and the Directors do not recommend the payment of an interim dividend for the six months ended 30 June 2015.
14. Trade and other receivables As at As at 30 June 31 December 2015 2014 RMB'000 RMB'000 (Unaudited) (Audited) Trade receivables 101,603 92,230 Prepayment 11,142 13,733 Deposits and other receivables 7,543 7,544 Amounts due from related parties - 611 ------------ --------------- 120,288 114,118 ============ ===============
The aging analysis of the Group's trade receivables after impairment based on delivery date is as follows:-
As at As at 30 June 31 December 2015 2014 RMB'000 RMB'000 (Unaudited) (Audited) Current trade receivables 0 to 180 days 31,096 54,560 181 to 365 days 51,945 37,670 Over 365 days 18,562 - ----------- ----------- 101,603 92,230 =========== =========== As at As at 30 June 31 December 2015 2014 RMB'000 RMB'000 (Unaudited) (Audited) Trade receivables 130,130 116,957 Less: Provision for doubtful debts (28,527 ) (24,727 ) ----------- ----------- 101,603 92,230 =========== ===========
The amounts due from related parties were unsecured, interest-free and repayable on demand. The related parties are controlled by a Director of the Group.
15. Cash and cash equivalents As at As at 30 June 31 December 2015 2014 RMB'000 RMB'000 (Unaudited) (Audited) Cash at bank and in hand 6,596 89 =========== =========== 16. T Trade and other payables As at As at 30 June 31 December 2015 2014 RMB'000 RMB'000 (Unaudited) (Audited) Trade payables 34,348 43,329 Accruals and other payables 40,887 34,139 Income tax payable 6,675 6,675 Amounts due to equity holders 25,587 23,498 ----------- ----------- 107,497 107,641 =========== ===========
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 05:54 ET (09:54 GMT)
An ageing analysis of the Group's trade payables based on the invoice date is as follows:-
As at As at 30 June 31 December 2015 2014 RMB'000 RMB'000 (Unaudited) (Audited) Current trade payables 0 to 30 days 15,214 17,993 31 to 60 days 10,283 12,877 Over 365 days 8,851 12,459 ----------- ----------- 34,348 43,329 =========== ===========
The amounts due to equity holders were unsecured, interest-free and repayable on demand.
17. Bank borrowings
The short term bank borrowings are denominated in RMB and are repayable within one year. The ranges of annual interest rates are as follows:
As at As at 30 June 31 December 2015 2014 RMB'000 RMB'000 (Unaudited) (Audited) Fixed-rate borrowings 6.372% -11.316% 6.372% -11.316% =============== ===============
As at 31 December 2014 and 30 June 2015, the Group's bank borrowings were supported by: (i) the personal guarantees put up by an equity holder and a key management personnel of the Group; and (ii) properties owned by an equity holder of the Group.
The bank borrowings as at 30 June 2015 represent a one-year loan of RMB 12,000,000 from China Construction Bank ("CCB") advanced on 5 January 2012 which was supported by the guarantee issued by a guarantee company, Dongguan Yin Tong Financial Guarantee Limited. The Group then sub-lent RMB 6,200,000 to Dongguan Hehe Shizheng Construction Co., Limited related to the guarantee company with terms including maturity date, interest and overdue interest which mirrored the terms between the Group and CCB.
The loan from CCB was due for repayment on 5 January 2013. The Group did not fully repay the loan and the outstanding amount was RMB 7,689,000 as at 30 June 2015. The Group was charged overdue interest at the annual rate of 11.316% instead of the original rate of 7.54%. The outstanding interest was approximately RMB 1,435,000 up to 30 June 2015. The Group did not obtain any renewal agreement from CCB at the approval date of these condensed consolidated interim financial information.
17. Bank borrowings (continued)
The loan to the Dongguan Hehe Shizheng Construction Co., Limited was also due to be repaid on 5 January 2013 but neither the Dongguan Hehe Shizheng Construction Co., Limited nor the guarantee company repaid the principal, interest and overdue interest. The principal and interest outstanding at 30 June 2015 were RMB 6,100,000 and RMB 1,068,000 respectively.
CCB is aware of these sub-lending arrangements such that CCB would seek repayment of its debt directly from the guarantee company and the Group would only be liable for RMB 1,600,000 of the total RMB 7,689,000. The Directors have no reason to believe that the Group will become liable for the results of the sub-lending.
Bank borrowings at approximately RMB 7,689,000 carried loan covenant which required the borrowing company to maintain a liability to assets ratio determined under local accounting standards of below 60% at all times. Management continually evaluates compliance with the loan covenant and has concluded that there has been no breach to such covenant.
18. Share capital No. of 1p ordinary shares RMB'000 -------------- --------- At 1 January 2014 and 31 December 2014 345,712,176 34,571 Shares issued on 28 January 2015 (note (i)) 60,000,000 6,000 Shares issued on 15 April 2015 (note (ii)) 40,000,000 4,000 -------------- --------- At 30 June 2015 445,712,176 44,571 ============== =========
(i) On 28 January 2015, 60,000,000 new ordinary shares were issued at a placing price of GBP 0.02 per ordinary share for cash to increase the working capital of the Group.
(ii) On 15 April 2015, 40,000,000 new ordinary shares were issued at a placing price of GBP 0.01 per ordinary share for cash to increase the working capital of the Group.
19. Operating leases
At the end of each financial period/year, the Group's future aggregate minimum lease payments under non-cancellable operating leases in respect of its factory premises are as following:
As at As at 30 June 31 December 2015 2014 RMB'000 RMB'000 (Unaudited) (Audited) Within 1 year 967 967 Over 1 year and within 5 years 1,934 2,418 2,901 3,385 =========== =========== 20. Related party transactions
The ultimate controlling party of the Group is Mr Chen Chih Lung.
(a) Apart from the balances with related parties disclosed in the condensed consolidated statement of financial position and the transactions disclosed in notes 14 and 16 to the condensed consolidated interim financial information, the Group had no other material transactions with its related parties during the six months ended 30 June 2015 and 2014.
(b) Key management compensation
Key management includes directors and other key management personnel of the Company.
The compensation paid or payable to key management for employee services is shown below:-
Six months Six months ended ended 30 June 30 June 2015 2014 RMB'000 RMB'000 (Unaudited) (Unaudited) Salaries and other short-term employee benefits 1,521 261 Contributions to defined contribution - - retirement plan ----------- ----------- 21. Contingent liabilities
Pursuant to judgment in two actions brought by China Guangfa Bank ("CGB") against Dongguan Yichia Optoelectronics Technology Co., Limited ("Yichia") and others for liability under guarantees provided by Yichia and others in connection with loans made by CGB to third parties. The third parties and/or guarantors (including Yichia) are required to pay CGB the sum of RMB 4.3m plus interest, default interest and compound interest.
No provision in respect of the liability under the guarantee provided by Group has been recognized in the condensed consolidated financial information as Management considers the borrowers and guarantors are jointly and severally liable and the amount of the Yichia's part of the obligation cannot be reliably estimated.
Pursuant to a deed of indemnity dated 1 November 2013, Juping Cao, the sole shareholder of Yichia, has agreed to indemnify the Group for all liability incurred in connection with this judgment. In the event that Juping Cao defaults on her indemnity, Yichia will be liable to pay the entire amount of its obligation.
A third party has brought an action against a subsidiary of the Group in the Jiangxi Province Yingtan City People's Court, alleging the subsidiary was a guarantor to a loan of RMB13,910,000 advanced to a shareholder of the Company. The matter was brought to Qingyuan Arbitration Commission on 3 December 2014 and the Commission issued the Conciliation Agreement directing the parties come to an agreement out of court. Since then the lender and borrower have agreed terms which place no liability on the subsidiary or the Company. However, this agreement is yet to be formally recorded by the parties.
22. Approval of interim financial information
The condensed consolidated interim financial information was approved by the Board of Directors on 30 September 2015.
INDEPENDENT REVIEW REPORT TO GOWIN NEW ENERGY GROUP LIMITED
Introduction
We have been engaged by the Company to review the condensed consolidated interim financial information for the six months ended 30 June 2015 which comprise the condensed consolidated statement of comprehensive income, condensed consolidated statement of financial position, condensed statement of changes in shareholders' equity, consolidated statement of cash flows and related notes. We have read the other information contained in the interim financial information and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated interim financial information.
Directors' Responsibilities
The interim financial information is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the interim financial information in accordance with International Accounting Standard 34 "Interim Financial Reporting" ("IAS 34") and the ISDX Rules for Issuers.
Our Responsibility
(MORE TO FOLLOW) Dow Jones Newswires
September 30, 2015 05:54 ET (09:54 GMT)
1 Year Gowin New EN. Chart |
1 Month Gowin New EN. Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions