1

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, 2023 and 2022

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

10～14

(5)

Significant accounting assumptions and judgments, and major sources

14

of estimation uncertainty

(6)

Explanation of significant accounts

14～49

(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

55, 57～60

(b) Information on investees

55, 61～63

(c) Information on investment in mainland China

55, 64

(d) Major shareholders

55～56

(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, 2023 and 2022, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2023 and 2022, 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 the Standard on Review Engagements 2410, " 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 $4,535,850 thousand and $5,626,848 thousand, constituting 14% and 18% of consolidated total assets as of March 31, 2023 and 2022; total liabilities amounting to $2,769,383 thousand and $3,939,390 thousand, constituting 17% and 27% of consolidated total liabilities as of March 31, 2023 and 2022; total comprehensive income amounting to $44,176 thousand and $77,021 thousand, constituting 21% and 10% of consolidated total comprehensive income for the three months ended March 31, 2023 and 2022.

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 $234,071 thousand and $219,009 thousand as of March 31, 2023 and 2022, and its shares of profit of associates accounted for using the equity method amounting to $855 thousand and $1,203 thousand for the three months ended March 31, 2023 and 2022, 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, 2023 and 2022, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2023 and 2022 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 Yung-Hua Huang and Pao-Lian Chou.

KPMG

Taipei, Taiwan (Republic of China)

May 11, 2023

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 Standards on Auditing as of March 31, 2023 and 2022

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2023, December 31, 2022, and March 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

December 31, 2022

March 31, 2022

March 31, 2023

(After Restatement)

(After Restatement)

Assets

Amount

%

Amount

%

Amount

%

Current assets:

1100

Cash and cash equivalents (note 6(a))

$

4,921,450

15

4,755,068

14

4,755,545

15

1110

Financial assets at fair value through profit or loss -

401

-

-

-

69,348

-

current (note 6(b))

1120

Financial assets at fair value through other

156,316

-

152,171

-

139,189

-

comprehensive income - current (notes 6(c) and 8)

1140

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

237,430

1

339,307

1

440,325

2

1170

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

1,870,257

6

2,416,503

7

1,965,855

6

1180

Accounts receivable from related parties (notes 6(e)

121,495

-

126,959

-

213,822

1

and 7)

1200

Other receivables

161,875

-

139,892

-

105,885

-

1210

Other receivables from related parties (note 7)

307,910

1

311,000

1

421,876

1

130X

Inventories (note 6(f))

3,963,619

12

4,377,410

13

2,961,747

10

1410

Prepayments (note 9)

1,033,358

3

1,662,780

5

876,700

3

1460

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

515,704

2

530,209

2

1,432,367

5

1476

Other financial assets (note 8)

728,187

2

629,432

2

797,367

3

1479

Other current assets

424,329

2

424,192

1

252,342

1

Total current assets

14,442,331

44

15,864,923

46

14,432,368

47

Non-current assets:

1510

Financial assets at fair value through profit or loss -

69,979

-

71,287

-

99,200

-

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

1517

Financial assets at fair value through other

562,925

2

520,559

2

410,420

1

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

and 8)

1535

Financial assets at amortized cost - non-current (note

-

-

-

-

-

-

6(d))

1550

Investments accounted for using the equity method

234,071

1

235,382

1

219,009

1

(note 6(h))

1600

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

10,215,608

31

10,188,315

30

8,683,967

28

1755

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

1,433,920

4

1,344,837

4

423,805

1

1760

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

2,690,731

8

2,722,066

8

2,816,090

10

1780

Intangible assets (note 6(m))

3,593

-

3,250

-

4,878

-

1840

Deferred tax assets

649,027

2

649,096

2

630,109

2

1915

Prepayments - non-current (note 9)

2,237,699

7

2,051,077

6

2,157,022

7

1920

Refundable deposits (note 8)

158,234

-

156,092

-

674,291

2

1942

Other receivables from related parties - non-current

23,371

-

23,605

-

21,981

-

(note 7)

December 31, 2022

March 31, 2022

March 31, 2023

(After Restatement)

(After Restatement)

Liabilities and Equity

Amount

%

Amount

%

Amount

%

Current liabilities:

2100

Short-term borrowings (note 6(n))

$

1,032,770

3

1,895,215

6

307,615

1

2110

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

-

-

99,931

-

106,579

-

2120

Financial liabilities at fair value through profit or loss

- current (note 6(b))

3,951

-

4,504

-

10,212

-

2130

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

541,287

2

381,104

1

557,211

2

2170

Notes and accounts payable (note 7)

753,160

2

1,194,056

4

1,178,711

4

2216

Dividends payable (note 6(x))

162,779

-

-

-

-

-

2260

Liabilities related to non-current assets held for sale

-

-

-

-

1,027,841

3

(note 6(g))

2280

Lease liability - current (note 6(s))

104,680

-

95,525

-

56,104

-

2320

Current portion of long-term borrowings and

3,068,989

9

2,846,541

8

2,385,095

8

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

2399

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

1,534,621

5

1,829,246

5

1,767,855

6

Total current liabilities

7,202,237

21

8,346,122

24

7,397,223

24

Non-Current liabilities:

2500

Financial liabilities at fair value through profit or loss

18,385

-

21,775

-

51,848

-

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

2530

Bonds payable (note 6(q))

2,973,432

9

2,969,315

9

2,956,667

10

2540

Long-term borrowings (note 6(p))

3,738,533

11

3,993,300

12

3,132,434

10

2580

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

1,461,301

4

1,376,919

4

554,260

2

2635

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

-

-

-

-

3,230

-

2670

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

474,970

2

448,940

1

302,402

1

Total non-current liabilities

8,666,621

26

8,810,249

26

7,000,841

23

Total liabilities

15,868,858

47

17,156,371

50

14,398,064

47

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

and (y))

3110

Ordinary shares

16,277,954

49

16,277,905

48

16,278,140

53

3200

Capital surplus

187,749

1

187,699

-

1,000,985

3

3350

Accumulated profit or loss

249,013

1

354,726

1

(861,074)

(3)

3400

Other equity

(175,205)

-

(345,028)

(1)

(511,847)

(2)

3500

Treasury shares

(18,699)

-

(18,699)

-

(18,699)

-

Total equity attributable to owners of parent

16,520,812

51

16,456,603

48

15,887,505

51

36XX

Non-controlling interests

622,413

2

639,816

2

699,424

2

Total equity

17,143,225

53

17,096,419

50

16,586,929

53

1990

Other non-current assets (note 8)

290,594

1

422,301

1

411,853

1

Total non-current assets

18,569,752

56

18,387,867

54

16,552,625

53

Total assets

$

33,012,083

100

34,252,790

100

30,984,993

100

Total liabilities and equity

$

33,012,083 100

34,252,790 100

30,984,993 100

See accompanying notes to consolidated financial statements.

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United Renewable Energy Co. Ltd. published this content on 30 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 June 2023 09:34:06 UTC.