News Column

Gowin New Energy Group Profit Jumps As China Goes Green

June 30, 2014

Anthony Tshibangu

LONDON (Alliance News) - China-focused Gowin New Energy Group Ltd saw its shares soar Monday after reporting an increase in profit and revenue for 2013, boosted in part by the Chinese government's move to promote green energy.

The company shares were quoted up 91% at 5.011 pence Monday morning.

The company, which listed on AIM in November 2013, posted pretax profit of CNY22.0 million for 2013, up from CNY6.2 million a year earlier, as revenue rose CNY161.6 million from CNY71.9 million following an increase in demand for LED outdoor-lighting products in China.

It said that due to the Chinese government's promotion of green energy, domestic public sector LED work orders grew significantly in street lights, tunnel lights and lighting projects. In addition, the development of urban and rural construction, especially in some mountainous provinces, led to a high demand for highway and street lighting.

Looking ahead Gowin said its expects continued growth in profits and revenues this year. It said at the end of the first quarter 2014, total sales, gross margins and net pretax profit grew year-on-year, fuelled particularly by local government contracts.

Despite its performance, the company said it will not pay a dividend.

"In line with the group's residual theory dividend policy, where dividends will only be paid after business opportunities are financed, the board is recommending no dividend payment for the year," Gowin said.

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Source: Alliance News

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