First Day of Dealings on AIM

Gowin New Energy Group Limited

("GNE", the "Company" or the "Group")

First Day of Dealings on AIM

The Board of Gowin New Energy Group Limited (AIM: GWIN) is pleased to announce the commencement of dealings in its ordinary shares on the AIM market of the London Stock Exchange today.

The Company has raised £1.26 million by way of a pre-IPO placing of 21,025,000 new ordinary shares and £1.15 million (before expenses) by way of a placing of 16,461,800 new ordinary shares at 7 pence per share giving a market capitalisation of circa £24 million on admission to AIM.

The gross proceeds of the pre-IPO placing and the placing of £2.41 million will be used, inter alia, to fund working capital and continue expanding the business in China and overseas.

Cairn Financial Advisers LLPis the Company's Nominated Adviser and Alexander David Securities Limited is the Company's Lead Corporate Adviser and Broker.

The Group is engaged in the research and development, manufacturing and sales of LED lighting products, operating in the PRC. Its business was established in 2005 and since then the Group has grown sales within China and has been profitable for the past two years.

Garry Willinge, Non-Executive Chairman of GNE, said: "The Board is delighted with the Company's successful admission to AIM and believes that this will play a vital role in supporting its future growth strategy.

"The Board is confident that we can capitalise on the favourable market and industry conditions, in particular the popularity of energy saving concepts which, when combined with incentives from the PRC central government, improvements in LED technology and the decrease in prices of LED lighting solutions in the PRC, are making LED solutions more affordable and very attractive."

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For further information please visit www.gowinyichia.com or contact the following:

Further Information

Extracts from the GNE admission document published on 1 November 2013 are included below for information. All defined terms contained within the text below are as defined in the admission document, which can be downloaded from the Company's website at www.gowinyichia.com .

PLACING STATISTICS

BUSINESS AND OPERATIONS

Overview of the Company

Dongguan Yichia, the Group's operating entity, was founded by Juping Cao and Xinwei Wu in 2005. It is engaged in the research and development (R&D), manufacturing and sales of LED lighting products in the PRC.

Manufacturing and assembly of LED lighting products are undertaken in the Group's production base in Dongguan, Guangdong Province, PRC. The plant has a total area of 23,844m2. As at the date of this Document, the Group currently employs approximately 142 workers. The Directors believe that quality and technological innovation are key elements to the business' strategy. The plant has operated to ISO 9001 standards since 2008. R&D is also based in Dongguan and, as at the date of this Document, Dongguan Yichia has over 120 patents and approximately seven trademarks registered in PRC.

Although export sales have historically accounted for a small proportion of the Group's revenue, the Directors believe that overseas markets will become an increasingly important source of the Group's future growth. As a result of intense competition in Europe and North America, the Directors expect that export sales growth will be driven by increased demand from developing countries.

Products

Dongguan Yichia currently focuses on three product areas: indoor lighting and outdoor lighting (collectively known as general lighting) and backlighting:

Indoor lighting

Indoor LED lighting products consist of a range of light bulbs and tubes. The products are primarily used in shopping malls, commercial buildings and production factories.

Outdoor lighting

Outdoor LED lighting products include underground lamps, underwater lamps, hurdle lamps, digital tubes, cross starlight lamps, lawn lights, point light source series, strip lights, wall washers, high power street lamps, tunnel lamps, floodlights and spotlights.

Backlighting

Backlight LED products include single colour and full colour light sources in different sizes, from 1.5 ft to 7.1 ft. Backlighting products are mainly used in mobile phones, sound systems, electronic watches, air conditioners, refrigerators, refueling machines and industrial monitors.

The Directors believe that the Group's current success is, and will continue to be, based on its technical innovation and customisation, cost management and quality control, together with a strong reputation and many repeat customers. The Directors believe that larger enterprises either do not engage in customisation or have longer application and approval procedures for such customisation; the Group is able to develop bespoke, quality products designed specifically to meet customers' individual requirements.

Sales and Marketing

In 2012, 98% of the Company's sales were to domestic consumers within the PRC. The Group sells its outdoor products predominately to highway agencies, where the Group is typically a subcontractor to a main contractor or other intermediary.

In addition to its government contracts, the Group sells its outdoor products to Electricity Facilities Guangri Guangzhou Co., Ltd, Huizhou NVC Lighting Technology Co., Ltd, SVS Technology Co., Ltd and Dongguan Shilong Kyocera Co., Ltd.

The Directors believe that there is robust demand arising from the replacement of traditional lighting with LED, especially in government and commercial building sectors. This is mainly due to the decrease in the overall price of LED products and the popularity of the EMC business model in relation to LED projects.

Intellectual Property

The Directors believe that the development and protection of intellectual property, including patents, trademarks, copyrights, trade names, trade secrets and other proprietary rights are very important to the Group's business and its ability to differentiate itself in the market place. The Group relies on a combination of patents, trademarks, fair trade practice, copyrights and trade secret protection laws in China to protect its intellectual property rights.

Research and Development

The Company is committed to researching, designing and developing solutions and products in order to meet the needs of its customers, now and in the future.

Dongguan Yichia's current R&D activities are focused on the following areas:

Raw Materials

Researching higher conductive and lighter manufacturing materials to enhance the products cooling effect.

Application Technology

More efficient lighting application technologies will be developed and applied in various environments including bridges, highways, tunnels and railways and product modularisation expected to be widely implemented.

New Emerging Markets

Developing new LED lighting products for emerging markets such as medical LED lighting systems, high power density LED spotlights for stadiums, golf courses and plant lighting in the agricultural sector.

Energy Control Systems

Intelligent power and lighting effects controlling systems such as automatic lighting controllers, switches and sensors. Improving the accuracy and effectiveness of controlling systems are factors resulting in more efficient use of energy.

Multi Energy driven Light Products

Developing LED lighting products that are powered by multi-energy sources such as solar energy, wind energy and geothermal power generation.

The Group's R&D facilities are located in Dongguan. The Group also cooperates with several universities in China, including Huazhong University of Science and Technology, China University of Geosciences and SUN YET-SEN University, in order to develop new industry technologies and to improve its R&D capabilities.

THE LED MARKET

Global LED Lighting Market

The global LED lighting market was worth US$16.5 billion in 2012 and is expected to grow to US$44.2 billion by 2015.

Increased competition, steady cost reductions and improved technology performance are putting the global LED lighting industry on a path to securing an 80 per cent market share of the global lighting market by 2020. The industry's market share was just under 12 per cent in 2012 and is expected to reach 25 per cent by 2014.

Chinese LED lighting Market

In 2013, the Chinese LED lighting market is expected to be worth 32.4 billion RMB (US$5.3 billion) and the annual growth rate is expected to be 36%. LED lighting is expected to account for 46 per cent of China's overall general lighting industry by 2016.

China's LED lighting industry is based in four major regions: Pearl River Delta, Yangtze River Delta, Fujian and Jiangxi region and the northern region with seven large-scale bases in Dalian, Shanghai, Shenzhen, Nanchang, Xiamen, Yangzhou and Shijiazhuang. The manufacturing zones in the north include Shandong, Liaoning, Shanxi, Shaanxi, Hebei, Jilin, Beijing and Inner Mongolia.

The Chinese LED lighting industry has developed rapidly over the last two years due to a government policy on solid-state lighting and the inclusion of the LED industry as one of the key areas of industry for development within the Ministry of Science and Technology's 12th Five Year Plan (2011-15) (the ''Plan'').

The Plan also targets a 30% share of the domestic general lighting market by LEDs by 2015, which is more than triple the current market share in the PRC. According to official estimates, this would cut annual coal use by 35 million tonnes. While the LED market is growing quickly in the commercial sector, it is still some distance from becoming a household application. Chinese households have been slow to switch to LED lighting because it is still more expensive than conventional lightning and quality issues have affected consumer confidence.

The Plan also lays out the government's intention to build 20 state-level industrial bases and 50 pilot cities under the ''10,000 LED Lamps in 10 Cities'' program. This program has been expanded to the ''2 Million Lamps in 50 Cities'' program and is in place in order to further expand the application of LED street lamps.

In November 2011, the National Development and Reform Commission announced plans to phase out incandescent lights over five stages in order to safeguard the development of the LED lighting industry in the PRC and incandescent lamps are due to be completely phased out of the lighting market by October 2016.

The Directors believe that the government initiatives described above will stimulate LED lighting demand in the PRC and strengthen the LED lighting market.

Trends and Competition

There are approximately 4,000 companies in China producing LED lighting products. It is a fragmented market which is expected to undergo industry consolidation. It is anticipated that this will lead to a stronger Chinese LED industry and better quality products.

Multinational competitors include Philips, Osram, and General Electric. Relatively new lighting entrants such as Cree are cited as successfully competing against the likes of Philips by focusing on high manufacturing output and being a low cost producer. Cree now has 10% market share within China. In addition, other LED manufacturers like Samsung and LG are investing heavily in the lighting sector, further eroding the market share of traditional companies like General Electric, Osram and Philips.

Chinese competitors include Kingsun, Foshan Electrical and Lighting Co Ltd, NVC Lighting Holding Ltd, Elec-Tech International Co Ltd, Shenzhen Unilumin and Shenzhen Refond Optoelectronics Co Ltd.

BUSINESS STRATEGY

The Directors intend to continue to leverage the domestic market in Dongguan, as they have for the past eight years, and to use this as a platform to expand across China and eventually overseas. Within these markets the Directors believe that there is demand for its indoor lighting, outdoor lighting and backlighting products.

The Directors believe that the Group can benefit from China's commitment to LED lighting solutions, particularly in the general lighting macro-segment. In addition, the Directors expect opportunities to arise for overseas expansion as well as for joint ventures, strategic alliances as well as mergers and acquisitions. The Directors also expect that the Group's business will expand by nurturing relationships with OEMs and ODMs and licensing its technology to relevant sectors of the lighting industry and other niche industries. In parallel, the Group is expected to continue to derive business from the backlighting industry segment.

The Group intends to focus on the following areas:

- Enhanced custom solutions capabilities by strengthening its ability to provide customised lighting products and solutions to public infrastructure and other large projects. The Directors believe that this capability will distinguish the Group from its competitors.

- Expand the production scale for standardised products. A significant portion of the Group's products are relatively standardised, including lamps, lighting electronics as well as certain luminaire products such as battens and lighting louvers. With respect to these products, the Group intends to significantly increase its production capacity and volume to increase economies of scale and lower production costs and product prices.

- Diversify the product offerings. In an effort to become a one-stop destination for its customers' lighting needs, the Group plans to diversify into lighting products for specialised applications, such as outdoor lighting and construction lighting. A number of new LED based lamps and luminaire products are also expected in 2013/14, directly as a result of the Group's R&D. Additional resources for the development of these products will be allocated accordingly.

Other areas targeted for expansion include energetically modified cement highways and toll-ways, solar generated lighting products and semi-conductors.

The Group's other strategic goals are:

- To continue to develop its investments in its intellectual property through investment in R&D. The focus will be on reducing total cost of production and developing specific chips and other key input materials.

- To further improve productivity and quality and drive manufacturing costs down by upgrading existing production facilities and LED lighting processes, thus increasing capacity in the supply chain.

- On product development and innovative design. The Group intends to establish an alternative LED lighting standardised product system to replace most of the existing traditional functional lighting products.

- Establishing a Regional Operations Management Centre and to gradually extend it into each of the provinces and autonomous regions as well as municipalities directly under the Chinese Government to provide development, service and management facility for dealers of LED products.

- Pursuing appropriate acquisition and investment opportunities in China and abroad, where there are strong synergies with its existing product lines and business lines, seeking to maximise utilisation of its distribution network.

The Directors believe that the Group's emphasis on customer satisfaction, R&D, marketing, new sales and distributions channel development, customer service, improving LED lighting application technology, developing new energy product applications and its commitment to product quality and cost management, makes it well positioned to exploit opportunities to grow its business in the LED lighting market in China and to establish it abroad.

KEY FINANCIAL INFORMATION

The income statement for the past three years and the first six months of 2013 is summarised below.

DIRECTORS, MANAGEMENT and employees

The board of directors of the Company and senior management of the Group are comprised as follows:

Directors

Garry Willinge, Non-Executive Chairman, aged 64

Garry is a Fellow of the Australian Institute of Company Directors and a Fellow of the Hong Kong Institute of Directors. He is also an Adjunct Professor with the Curtin Business School at Curtin University. Garry has been an experienced company director in public listed, unlisted and not for profit companies in Australia, London and Hong Kong for over 10 years. He is currently an Independent Non-Executive Director of China Properties Group Limited listed on the Hong Kong Exchange Main Board and of Globe Capital Limited listed on the London ISDX Growth Market and GXG Main Quote. Prior to starting his management services firm Cbridge Limited in Hong Kong in 2005, he served 30 years, mostly in senior executive roles, with IBM Corporation. His last role at IBM was Director of Global Services for IBM China/Hong Kong Limited. His academic qualifications are a BSc. the University of Melbourne, Graduate Diploma of Applied Finance and Investment from the Securities Institute of Australia and a Graduate Diploma of Corporate Governance from the University of New England / Australian Institute of Company Directors. He also graduated from the INSEAD Asian International Executive Program in 2004 and has attended a number of Harvard short management courses.

Juping Cao, President, aged 35

Juping co-founded Dongguan Yichia in 2005. Previously, she was the assistant to the general manager at Jiangmen Happy Electronics Co., Ltd, before becoming general manager and legal representative for Yikais Electronics Co.Ltd. Juping has an MBA from the University of Northern Virginia and has completed an executive business administration course at the Qinghua University of China. She is currently the legal representative of Dongguan Yichia and oversees the finance department of the Group.

Chin Lung Hsieh, Managing Director, aged 50

Chin Lung has over 30 years of experience in the electronics industry. He has been involved with LED digital display and application technology since 1986 starting at JarJung International Co. Ltd. Between 1993 to 1999, he was the manager of ExpressElectronics Co Ltd and vice general manager of Happy Electronics Co. Ltd. Chin Lung is in charge of the Group's overall management. He completed a master of business administration degree at the University of Northern Virginia in June 2007.

Chinsen Hsieh, Executive Director, aged 45

Chinsen graduated from Taiwan East South Industrial Mechanical School in 1992 and has been involved in the electronics industry for over 20 years. He previously worked for the Kunshan JarJung Optoelectronics Technology Co. Ltd as manager, followed by nine years as vice general manager of Dongguan Yichia. He joined the Group in 2005 and is responsible for the Group's R&D and sales divisions.

Luke Joseph Webster, Non-Executive Director, aged 35

Luke is an experienced solicitor/corporate finance professional. Luke qualified as a solicitor in 2004 with Nabarro before moving into corporate finance with Oriel Securities. In 2009 Luke joined the London Stock Exchange as a senior regulator in charge of the AIM market where he was responsible for the regulation of 1,600 listed companies and 70 investment banks. Luke is also the commercial director of Proton Invest (Asia) Ltd an asset management business based in Shenzhen, China and is an executive director of AIM quoted Green China Holdings Limited.

Senior Management

Meihua Chan, Assistant to Managing Director

Meihua graduated from National Cheung Kung University and has over 30 years' experience in the electronics industry. She began working in the quality control department of UNICAP Electronics Industry Corporation Limited in 1984 and subsequently joined a Taiwan listed company, Chin-Poon Industrial Co., Ltd, as an engineer in the pre-production department for five years and in the quality assurance department as assistant manager for eight years between 1990 to 2003. She was the manager of Taiwan Yunzeng Technology Corporation Ltd and was responsible for quality assurance and production affairs until 2011.

Calvin Sin Hang Chan, Chief Financial Officer & Company Secretary

Calvin holds a bachelor degree in business (accounting) from the Australian Catholic University. Mr Chan is a full member of the CPA Australia. Mr Chan has been an auditor in CPA firms in Hong Kong, and an accountant and a company secretary of a financial services company based in Hong Kong and China. Mr Chan has more than five years of experience in the accounting field, and was the financial controller (China) of LZYE Limited, a company listed on AIM. Mr Chan is also independent non-executive director of Hybrid Kinetic Group Limited, a company listed on the Hong Kong Stock Exchange.

Kaifeng Lan, Research & Development Manager

Kaifeng graduated from Jiangxi Nanchang University and has over 15 years of experience in the electronics industry. Kaifeng began his career in 1997 as a production technician in Zhongshan Subor Electronic Industry Co., Ltd and jointed Shunde Cat Eye Traffic Products Co., Ltd as R&D vicemanager in 1999. Kaifeng joined Dongguan Yichia in 2007 as a manager in the R&D department, he is responsible for developing new LED application lighting products.

Jianghai Yan, Manufacturing Division Manager

Jianghai has over 14 years of experience in the electronics industry and he is currently in charge of the backlight product manufacturing division. Before joining the Group in 2006, he worked for Dongguan XinJie Electronic Co., Ltd as manager and was in charge of product design and development.

Fengzhang Wang, Senior Accountant

Fengzhang has 10 years of experience in the electronics industry. She graduated from Dongguan Agricultural Technical College. Fengzhang joined Dongguan Yichia in 2007 as an accountant in the Accountant department. She is responsible for daily accounting affairs.

Consultants

Tao Shen

Tao is a director of the Shanghai Illumination Engineering Society and the Shanghai Lighting Research Institution. As the deputy editor of the magazine ''Light Source And Lighting'', Mr Shen has published a number of papers covering the lighting industry which have been published in the magazine. In 2003 Tao graduated from Macau University Of Science & Technology with an MBA.

Hu-chun Huang

Hu-chun graduated from the Department of Mechanical Engineering at Taiwan University with a bachelor degree in 1975. During 2007-2009, he was the R&D department Manager of Dongguan Yuyu Optoelectronics Technology Co., Ltd. He subsequently jointed Anhui Zhaoli Optoelectronics Technology Co., Ltd as General Manager until 2011. From 2011-2012 he was the R&D department manager and vice general manager of Huizhou Fu Energy Saving Lighting Co., Ltd. Hu-chun has developed a number of patents for himself.

REASONS FOR ADMISSION AND USE OF PROCEEDS

The Directors are seeking Admission for the following reasons:

- raise the profile of the Company and enhance its status with existing and future business partners and customers;

- allow access to equity capital to accelerate organic growth;

- reduce borrowing;

- improve liquidity in its share base;

- enable the Group to access capital outside of China;

- enable the Company to use its quoted ordinary shares as a form of currency for selective acquisitions; and

- enhance the Group's ability to exploit growth opportunities, particularly in China.

The proceeds of the Pre-IPO Placing and the Placing of approximately £2,413,826 will be used to support the Group's business strategy, as set out in paragraph 4 of this Part I, for loan repayment and for general working capital purposes.

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