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Stock Code:3576

UNITED RENEWABLE ENERGY CO., LTD.

AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report

For the Three Months Ended March 31, 2022 and 2021

Address:

No.7, Lixing 3rd Road, Hsinchu Science Park, Hsinchu City 30078,Taiwan

Telephone:

(03)5780011

The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.

2

Table of contents

Contents

Page

1.

Cover Page

1

2.

Table of Contents

2

3.

Independent Auditors' Review Report

3

4.

Consolidated Balance Sheets

4

5.

Consolidated Statements of Comprehensive Income

5

6.

Consolidated Statements of Changes in Equity

6

7.

Consolidated Statements of Cash Flows

7

8.

Notes to the Consolidated Financial Statements

(1)

Company history

8

(2)

Approval date and procedures of the consolidated financial statements

8

(3)

New standards, amendments and interpretations adopted

8～9

(4)

Summary of significant accounting policies

9～14

(5)

Significant accounting assumptions and judgments, and major sources

14

of estimation uncertainty

(6)

Explanation of significant accounts

14～48

(7)

Related-party transactions

49～52

(8)

Pledged assets

52

(9)

Significant contingent liabilities and unrecognized commitments

52～54

(10)

Losses due to major disasters

54

(11)

Subsequent Events

54

(12)

Others

54

(13)

Other disclosures

(a) Information on significant transactions

54～55,

57～61

(b) Information on investees

55, 62～64

(c) Information on investment in mainland China

55, 65

(d) Major shareholders

55

(14)

Segment information

56

3

Independent Auditors' Review Report

To the Board of Directors of United Renewable Energy Co., Ltd.:

Introduction

We have reviewed the accompanying consolidated balance sheets of United Renewable Energy Co., Ltd. and its subsidiaries as of March 31, 2022 and 2021, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2022 and 2021, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, " Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standards 65, " Review of Financial Information Performed by the Independent Auditor of the Entity". A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4(b) and 13(b), the consolidated financial statements included the financial statements of certain non-significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $5,626,848 thousand and $6,253,212 thousand, constituting 18% and 20% of consolidated total assets as of March 31, 2022 and 2021; total liabilities amounting to $3,939,390 thousand and $3,751,051 thousand, constituting 27% and 22% of consolidated total liabilities as of March 31, 2022 and 2021; total comprehensive income (loss) amounting to $77,021 thousand and $(170,021) thousand, constituting 10% and 28% of consolidated total comprehensive income (loss) for the three months ended March 31, 2022 and 2021.

Furthermore, as stated in Note 6(h), the investments accounted for using the equity method of United Renewable Energy Co., Ltd. and its subsidiaries amounting to $219,009 thousand and $162,252 thousand as of March 31, 2022 and 2021, and its shares of profit (loss) of associates accounted for using the equity method amounting to $1,203 thousand and $(9,366) thousand for the three months ended March 31, 2022 and 2021, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

3-1

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of United Renewable Energy Co., Ltd. and its subsidiaries as of March 31, 2022 and 2021, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2022 and 2021 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors' review report are Cheng-Chien Chen and Yung-Hua Huang.

KPMG

Taipei, Taiwan (Republic of China)

May 10, 2022

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.

4

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Reviewed only, not audited in accordance with the generally accepted auditing standards as of March 31, 2022 and 2021

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2022, December 31, 2021, and March 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

March 31, 2022

December 31, 2021

March 31, 2021

Assets

Amount

%

Amount

%

Amount

%

Current assets:

1100

Cash and cash equivalents (note 6(a))

$

4,755,545

15

5,254,173

17

4,903,644

16

1110

Financial assets at fair value through profit or loss -

69,348

-

74,255

-

4,921

-

current (note 6(b))

1120

Financial assets at fair value through other

139,189

-

111,712

-

113,814

-

comprehensive income - current (note 6(c))

1140

Contract assets - current (notes 6(aa) and 7)

440,325

2

215,187

1

63,269

-

1170

Notes and accounts receivable, net (note 6(e))

1,965,855

6

1,871,520

6

2,356,954

7

1180

Accounts receivable from related parties (notes 6(e)

213,822

1

225,389

1

210,006

1

and 7)

1200

Other receivables

105,885

-

141,706

-

180,801

-

1210

Other receivables from related parties (note 7)

421,876

1

407,956

1

513,720

2

130X

Inventories (notes 6(f) and 8)

2,961,747

10

2,653,595

9

3,274,867

10

1410

Prepayments (notes 7 and 9)

876,700

3

1,149,948

4

751,782

2

1460

Non-current assets held for sale (notes 6(g) and 8)

1,432,367

5

2,145,372

7

1,764,580

6

1476

Other financial assets (notes 8)

797,367

3

924,036

3

581,716

2

1479

Other current assets

252,342

1

211,531

1

232,625

1

Total current assets

14,432,368

47

15,386,380

50

14,952,699

47

Non-current assets:

1510

Financial assets at fair value through profit or loss -

99,200

-

97,096

-

180,394

1

non-current (notes 6(b), (q) and (r))

410,420

1

333,791

1

264,592

1

1517

Financial assets at fair value through other

comprehensive income - non-current (notes 6(c)

and 8)

1535

Financial assets at amortized cost - non-current (note

-

-

-

-

142,525

-

6(d))

1550

Investments accounted for using the equity method

219,009

1

211,473

1

162,252

1

(notes 6(h) and 7)

1600

Property, plant and equipment (notes 6(j), 7 and 8)

8,683,967

28

8,213,695

26

8,910,568

28

1755

Right-of-use assets (note 6(k))

423,805

1

431,008

2

571,866

2

1760

Investment property, net (note 6(l) and 8)

2,816,090

10

2,844,125

9

2,715,250

9

1780

Intangible assets (note 6(m))

4,878

-

4,803

-

2,931

-

1840

Deferred tax assets

628,585

2

629,448

2

639,907

2

1915

Prepayments - non-current (notes 9)

2,157,022

7

1,934,036

6

1,968,594

6

1920

Refundable deposits (note 8)

674,291

2

654,938

2

739,542

2

1942

Other receivables from related parties - non-current

21,981

-

21,255

-

21,896

-

(note 7)

1990

Other non-current assets (note 8)

411,853

1

453,208

1

332,742

1

Total non-current assets

16,551,101

53

15,828,876

50

16,653,059

53

Total assets

$

30,983,469

100

31,215,256

100

31,605,758

100

Liabilities and Equity

March 31, 2022

December 31, 2021

March 31, 2021

Amount

%

Amount

%

Amount

%

Current liabilities:

2100

Short-term borrowings (note 6(n))

$

307,615

1

50,389

-

2,262,426

7

2110

Short-term bills payable (note 6(o))

106,579

-

221,253

1

237,595

1

2120

Financial liabilities at fair value through profit or loss

- current (note 6(b))

10,212

-

1,924

-

793

-

2130

Contract liabilities - current (notes 6(aa) and 7)

557,211

2

506,666

2

611,507

2

2170

Notes and accounts payable

1,178,711

4

1,355,764

4

1,315,394

4

2260

Liabilities related to non-current assets held for sale

1,027,841

3

1,607,188

5

1,025,715

3

(note 6(g))

2280

Lease liability - current (note 6(s))

56,104

-

59,058

-

59,473

-

2320

Current portion of long-term borrowings and

2,385,095

8

2,446,656

8

4,544,186

15

preference share liabilities (notes 6(p) and (r))

6

1,727,778

6

1,574,383

5

2399

Other current liabilities (note 6(t) and 7)

1,767,855

Total current liabilities

7,397,223

24

7,976,676

26

11,631,472

37

Non-Current liabilities:

2500

Financial liabilities at fair value through profit or loss

51,848

-

49,896

-

87,044

-

- non-current (notes 6(b) and (p))

2530

Total bonds payable (note 6(q))

2,956,667

10

2,952,450

10

-

-

2540

Long-term borrowings (note 6(p))

3,132,434

10

3,525,712

11

4,506,176

14

2580

Lease liability - non-current (note 6(s))

554,260

2

560,061

2

596,247

2

2635

Preference share liabilities - non-current (note 6(r))

3,230

-

4,377

-

10,488

-

2670

Other non-current liabilities (note 6(t))

300,878

1

313,704

1

345,897

1

Total non-current liabilities

6,999,317

23

7,406,200

24

5,545,852

17

Total liabilities

14,396,540

47

15,382,876

50

17,177,324

54

Equity attributable to owners of parent (notes 6(x)

and (y))

3110

Ordinary shares

16,278,140

53

16,278,140

52

26,650,178

84

3200

Capital surplus

1,000,985

3

999,749

3

7,956

-

3350

Accumulated deficit

(861,074)

(3)

(1,461,427)

(5)

(12,114,100)

(38)

3400

Other equity

(511,847)

(2)

(667,163)

(2)

(853,408)

(3)

3500

Treasury shares

(18,699)

-

(18,699)

-

(18,699)

-

Total equity attributable to owners of parent

15,887,505

51

15,130,600

48

13,671,927

43

36XX

Non-controlling interests

699,424

2

701,780

2

756,507

3

Total equity

16,586,929

53

15,832,380

50

14,428,434

46

Total liabilities and equity

$

30,983,469 100

31,215,256 100

31,605,758 100

See accompanying notes to consolidated financial statements.

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United Renewable Energy Co. Ltd. published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 07:51:06 UTC.