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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, 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.
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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 |
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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.
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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.
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(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.