10 February 2022
Gowin New Energy Group Limited
("Gowin" or the "Company")
Trading Update
The Directors of Gowin are pleased to provide the following update on trading:
Gowin has historically been engaged in the sale and investment of LED related products based in Taiwan. Whilst the Company still retains the ability to service this industry, it is in decline globally and will now only take on contracts which are profitable. The Company continues to hold a minority interest in a Taiwan-based company, Taiwan Thick-Film Industries Corp., 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.
In view of the declining LED industry, the Directors began to seek other business opportunities and in 2017 began working on launching a new 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. Whilst the initial phase of this plan was completed, including the establishment of a new group company, Goyoung International Company Limited, to engage in the tea business, COVID-19 restrictions in both China and Taiwan have impacted the supply chain, delaying the formal launch of the tea business.
Consequently, the ongoing pandemic has continued to impact on the performance of Gowin and so the directors have explored alternative ways to create value for shareholders. They have recently been presented with the opportunity to commence trading in high quality agarwood products, including agarwood incense which is widely used in religious ceremonies in Taiwan and essential oil which can be applied in many ways in daily life.
Gowin intends to launch an initial trial phase to coincide with the upcoming traditional Chinese festivals. This trial will commence in mid-February in order to target the Qingming Festival at the beginning of the April with its increased level of gifting and religious ceremonies. Should the trial be successful, Gowin intends to develop a sustainable agarwood trading business.
The agarwood activities will be carried out by Rosin Trading Limited, a 100% subsidiary of Gowin. According to Taiwanese trading regulations, sales of agarwood to the end user must be made by a Taiwanese company and so Gowin will engage Fonyu Investment Consultants Company Limited ("Fonyu") for this purpose and Fonyu will be paid a low commission on all sales just to cover the taxes that Fonyu will have to pay. Fonyu is a Taiwan company controlled by the Gowin's CEO Mr Chen and therefore sales of agarwood products will be deemed as related party transactions under the AQSE Growth Market Access Rulebook. Full details of the related party transactions will be disclosed in the Company's annual financial statements.
This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
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 / Lucy Bowden
Tel: +44 (0)207 399 9400
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