Taiwan Cogeneration CorporationTWSE: 8926

2024YearsQ3 Consolidated Financial Statements

· Issued by Taiwan Cogeneration Corporation

Taiwan Cogeneration Corporation and Subsidiaries

Consolidated Financial Statements for the

Nine Months Ended September 30, 2024 and 2023 and Independent Auditors' Review Report

Emphasis of Matter

For details on Taiwan Power Company's filing of a civil lawsuit against the Group's associates, Sun Ba Power Corporation, Star Energy Power Corporation, Star Buck Power Corporation and Kuo Kuang Power Company Ltd., in connection with their alleged violation of the Fair Trade Act and request for compensation on the basis of claims for damages which it has suffered, refer to Note 41 (d). Our review conclusion is not modified in respect of this matter.

The engagement partners on the reviews resulting in this independent auditors' review report are Chao-Mei Chen and Cheng-Chuan Yu.

Deloitte & Touche

Taipei, Taiwan

Republic of China

November 11, 2024

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with 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 applied in the Republic of China.

For the convenience of readers, the independent auditors' review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' review report and consolidated financial statements shall prevail.

- 2 -

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

September 30, 2024

December 31, 2023

September 30, 2023

ASSETS

Amount

%

Amount

%

Amount

%

CURRENT ASSETS

Cash and cash equivalents (Note 6)

$

1,670,426

6

$

1,922,822

7

$

2,304,032

9

Financial assets at amortized cost (Notes 7, 8 and 40)

436,833

2

734,293

3

408,951

2

Contract assets (Notes 5, 27, 29 and 39)

3,551,235

13

2,121,745

8

2,452,268

10

Notes receivable (Notes 9 and 29)

2,600

-

-

-

-

-

Accounts receivable (Notes 9 and 29)

1,271,024

5

755,728

3

204,715

1

Accounts receivable from related parties (Notes 29 and 39)

128,758

1

90,450

-

77,351

-

Finance lease receivables (Notes 10 and 39)

3,346

-

9,941

-

10,400

-

Other receivables (Note 39)

62,300

-

30,896

-

36,561

-

Inventories (Note 11)

10,248

-

7,951

-

10,443

-

Prepaid value-added tax

64,964

-

118,697

1

149,696

-

Other current assets

89,518

-

38,478

-

38,601

-

Total current assets

7,291,252

27

5,831,001

22

5,693,018

22

NON-CURRENT ASSETS

Financial assets at fair value through other comprehensive income (Notes 12 and 38)

267,854

1

270,054

1

266,520

1

Financial assets at amortized cost (Notes 7, 8 and 40)

6,500

-

32,631

-

28,817

-

Investments accounted for using the equity method (Note 15)

13,841,447

52

14,000,694

54

13,843,889

54

Property, plant and equipment (Notes 16 and 40)

4,060,529

15

4,286,965

17

3,846,260

15

Right-of-use assets (Note 17)

378,794

2

420,234

2

438,662

2

Goodwill (Note 18)

96,370

1

96,370

-

141,014

1

Intangible assets (Notes 19 and 40)

304,379

1

879,838

3

894,203

4

Deferred income tax assets (Note 4)

244,318

1

232,304

1

222,563

1

Prepayments for equipment

15,057

-

-

-

-

-

Refundable deposits

88,054

-

84,590

-

83,539

-

Finance lease receivables (Notes 10 and 39)

-

-

852

-

3,516

-

Other non-current assets (Note 20)

18,686

-

19,480

-

20,385

-

Total non-current assets

19,321,988

73

20,324,012

78

19,789,368

78

TOTAL

$

26,613,240

100

$

26,155,013

100

$

25,482,386

100

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Short-term borrowings (Notes 21 and 40)

$

35,000

-

$

55,000

-

$

40,000

-

Short-term bills payable (Note 21)

499,754

2

999,130

4

999,744

4

Contract liabilities (Notes 5, 27 and 29)

114

-

113,264

1

131

-

Accounts payable

130,908

1

105,244

-

104,367

-

Construction costs payable

4,425,941

17

2,959,261

11

2,930,608

12

Accounts payable to related parties (Note 39)

1,592

-

1,329

-

1,627

-

Other payables (Notes 23 and 39)

420,176

2

618,700

2

220,042

1

Current income tax liabilities (Note 4)

18,103

-

74,121

-

63,493

-

Provisions (Notes 4, 25 and 27)

562,892

2

465,448

2

431,705

2

Lease liabilities (Notes 17 and 39)

49,284

-

63,743

-

65,912

-

Current portion of long-term borrowings (Notes 21 and 40)

123,971

-

161,471

1

167,393

1

Current portion of bonds payable (Note 22)

1,899,516

7

-

-

-

-

Other current liabilities

2,556

-

4,019

-

5,414

-

Total current liabilities

8,169,807

31

5,620,730

21

5,030,436

20

NON-CURRENT LIABILITIES

Long-term borrowings (Notes 21 and 40)

2,012,554

8

1,590,437

6

1,668,797

6

Contract liabilities (Note 29)

130,540

1

168,845

1

158,356

1

Lease liabilities (Notes 17 and 39)

395,271

2

419,328

2

434,587

2

Bonds payable (Note 22)

599,481

2

2,498,517

10

2,498,358

10

Provisions (Note 25)

14,855

-

14,613

-

14,533

-

Deferred income tax liabilities (Note 4)

59,530

-

63,284

-

65,044

-

Net defined benefit liabilities (Notes 4 and 26)

123,155

-

121,842

-

113,637

-

Guarantee deposits received

90,324

-

53,732

-

47,636

-

Other liabilities (Note 24)

14,447

-

16,019

-

15,981

-

Total non-current liabilities

3,440,157

13

4,946,617

19

5,016,929

19

Total liabilities

11,609,964

44

10,567,347

40

10,047,365

39

EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Notes 4, 28 and 33)

Share capital

Ordinary shares

7,302,820

27

7,302,820

28

7,302,820

29

Capital surplus

2,621,919

10

2,621,919

10

2,627,120

10

Retained earnings

Legal reserve

1,954,986

7

1,828,961

7

1,828,961

7

Special reserve

2,148,332

8

2,435,361

9

2,435,361

10

Unappropriated earnings

988,263

4

1,269,700

5

1,083,648

4

Total retained earnings

5,091,581

19

5,534,022

21

5,347,970

21

Other equity

(13,044)

-

(9,189)

-

807

-

Total equity attributable to owners of the Corporation

15,003,276

56

15,449,572

59

15,278,717

60

NON-CONTROLLING INTERESTS

-

-

138,094

1

156,304

1

Total equity

15,003,276

56

15,587,666

60

15,435,021

61

TOTAL

$

26,613,240

100

$

26,155,013

100

$

25,482,386

100

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated November 11, 2024)

- 3 -

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

For the Three Months Ended September 30

For the Nine Months Ended September 30

2023

2023

2024

(Restated)

2024

(Restated)

Amount

%

Amount

%

Amount

%

Amount

%

OPERATING REVENUE

(Notes 5, 29 and 39)

Sales

$ 398,902

19

$ 352,510

26

$ 1,142,779

17

$ 1,119,375

29

Construction services

1,684,686

79

939,274

69

5,210,401

80

2,574,548

66

Operations, maintenance and

consulting services

55,200

2

72,220

5

194,925

3

188,350

5

Total operating revenues

2,138,788

100

1,364,004

100

6,548,105

100

3,882,273

100

OPERATING COSTS (Notes 5,

26, 30 and 39)

Cost of sales

314,246

15

306,843

22

912,289

14

974,204

25

Construction services

1,601,078

75

820,493

60

4,946,163

75

2,321,678

60

Operations, maintenance and

consulting services

45,152

2

61,720

5

171,855

3

172,499

4

Total operating costs

1,960,476

92

1,189,056

87

6,030,307

92

3,468,381

89

GROSS PROFIT

178,312

8

174,948

13

517,798

8

413,892

11

REALIZED (UNREALIZED)

GAIN ON TRANSACTIONS

WITH ASSOCIATES

8,061

1

(24,893)

(2)

24,187

-

(29,178)

(1)

REALIZED GROSS PROFIT

186,373

9

150,055

11

541,985

8

384,714

10

OPERATING EXPENSES

(Notes 26, 30, 33 and 39)

101,989

5

119,101

9

307,029

4

424,122

11

PROFIT (LOSS) FROM

OPERATIONS

84,384

4

30,954

2

234,956

4

(39,408)

(1)

NON-OPERATING INCOME

AND EXPENSES

Interest income

5,386

-

5,420

-

18,873

-

17,321

-

Other income (Notes 30

and 39)

3,192

-

3,205

-

19,966

1

18,718

-

Other gains and losses

(Notes 30 and 34)

(2,648)

-

7,118

-

2,689

-

20,738

1

Finance costs (Note 30)

(18,420)

(1)

(19,884)

(1)

(56,056)

(1)

(73,345)

(2)

Share of profit of associates

accounted for using the

equity method (Note 15)

187,513

9

92,599

7

791,714

12

1,166,699

30

Total non-operating

income and expenses

175,023

8

88,458

6

777,186

12

1,150,131

29

INCOME BEFORE TAX FROM

CONTINUING OPERATIONS

259,407

12

119,412

8

1,012,142

16

1,110,723

28

INCOME TAX EXPENSE

(Notes 4 and 31)

(7,306)

-

(16,836)

(1)

(40,801)

(1)

(50,549)

(1)

INCOME FROM CONTINUING

OPERATIONS

252,101

12

102,576

7

971,341

15

1,060,174

27

(LOSS) PROFIT FROM

DISCONTINUED

OPERATIONS (Notes 13, 29,

30 and 31)

-

-

(5,022)

-

(7,200)

-

745

-

NET PROFIT

252,101

12

97,554

7

964,141

15

1,060,919

27

(Continued)

- 4 -

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

For the Three Months Ended September 30

For the Nine Months Ended September 30

2023

2023

2024

(Restated)

2024

(Restated)

Amount

%

Amount

%

Amount

%

Amount

%

OTHER COMPREHENSIVE

(LOSS) INCOME

Items that will not be

reclassified subsequently to

profit or loss:

Unrealized gain (loss) on

investments in equity

instruments at fair value

through other

comprehensive income

(Note 38)

$

1,200

-

$

1,600

-

$

(2,200)

-

$

(10,600)

-

Share of other

comprehensive (loss)

income of associate

accounted for using the

equity method

(15,207)

(1)

(14,655)

(1)

(18,941)

-

2,018

-

(14,007)

(1)

(13,055)

(1)

(21,141)

-

(8,582)

-

Items that may be reclassified

subsequently to profit or

loss:

Exchange differences on

translation of the financial

statements of foreign

operations

2,105

-

1,247

-

1,884

-

5,707

-

Share of the other

comprehensive (loss)

income of associate

accounted for using the

equity method

(5,266)

-

10,399

1

15,402

-

17,812

1

(3,161)

-

11,646

1

17,286

-

23,519

1

Other comprehensive

(loss) income for the

period, net of income

tax

(17,168)

(1)

(1,409)

-

(3,855)

-

14,937

1

TOTAL COMPREHENSIVE

INCOME FOR THE PERIOD

$

234,933

11

$

96,145

7

$

960,286

15

$

1,075,856

28

NET PROFIT (LOSS)

ATTRIBUTABLE TO:

Owners of the Corporation

$

252,101

12

$

100,312

7

$

967,003

15

$

1,061,446

27

Non-controlling interests

-

-

(2,758)

-

(2,862)

-

(527)

-

$

252,101

12

$

97,554

7

$

964,141

15

$

1,060,919

27

TOTAL COMPREHENSIVE

INCOME (LOSS)

ATTRIBUTABLE TO:

Owners of the Corporation

$

234,933

11

$

98,903

7

$

963,148

15

$

1,076,383

28

Non-controlling interests

-

-

(2,758)

-

(2,862)

-

(527)

-

$

234,933

11

$

96,145

7

$

960,286

15

$

1,075,856

28

(Continued)

- 5 -

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

For the Three Months Ended September 30

For the Nine Months Ended September 30

2023

2023

2024

(Restated)

2024

(Restated)

Amount

%

Amount

%

Amount

%

Amount

%

EARNINGS PER SHARE

(Note 32)

From continuing and

discontinued operations

Basic

$

0.35

$

0.14

$

1.32

$

1.58

Diluted

$

0.34

$

0.14

$

1.32

$

1.58

From continuing operations

Basic

$

0.35

$

0.14

$

1.33

$

1.58

Diluted

$

0.34

$

0.14

$

1.33

$

1.58

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated November 11, 2024)

(Concluded)

- 6 -

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars)

Equity Attributable to Owners of the Corporation

Other Equity

Unrealized Gain

Exchange

(Loss) on Financial

Differences on

Assets at Fair

Translation of the

Value through

Retained Earnings

Financial

Other

Gain (Loss) on

Unappropriated

Statements of

Comprehensive

Hedging

Non-controlling

Ordinary Shares

Capital Surplus

Legal Reserve

Special Reserve

Earnings

Foreign Operations

Income

Instruments

Interests

Total Equity

BALANCE AT JANUARY 1, 2023

$

5,890,486

$

499,694

$

1,737,133

$

2,621,945

$

958,281

$

(71,626)

$

66,882

$

(9,386)

$

156,831

$ 11,850,240

Appropriation of 2022 earnings

Legal reserve

-

-

91,828

-

(91,828)

-

-

-

-

-

Special reserve

-

-

-

14,130

(14,130)

-

-

-

-

-

Reversal of special reserve

-

-

-

(200,714)

200,714

-

-

-

-

-

Cash dividends

-

-

-

-

(618,501)

-

-

-

-

(618,501)

Share dividends

412,334

-

-

-

(412,334)

-

-

-

-

-

412,334

-

91,828

(186,584)

(936,079)

-

-

-

-

(618,501)

Net profit (loss) for the nine months ended September 30, 2023

-

-

-

-

1,061,446

-

-

-

(527)

1,060,919

Other comprehensive income (loss) for the nine months ended

September 30, 2023

-

-

-

-

-

5,707

(8,582)

17,812

-

14,937

Total comprehensive income (loss) for the nine months ended

September 30, 2023

-

-

-

-

1,061,446

5,707

(8,582)

17,812

(527)

1,075,856

Issuance of ordinary shares for cash (Note 28)

1,000,000

2,031,000

-

-

-

-

-

-

-

3,031,000

Compensation cost recognized from the issuance of ordinary

shares for cash to employees (Note 33)

-

96,426

-

-

-

-

-

-

-

96,426

BALANCE AT SEPTEMBER 30, 2023

$

7,302,820

$

2,627,120

$

1,828,961

$

2,435,361

$

1,083,648

$

(65,919)

$

58,300

$

8,426

$

156,304

$ 15,435,021

BALANCE AT JANUARY 1, 2024

$

7,302,820

$

2,621,919

$

1,828,961

$

2,435,361

$

1,269,700

$

(67,906)

$

65,071

$

(6,354)

$

138,094

$ 15,587,666

Appropriation of 2023 earnings

Legal reserve

-

-

126,025

-

(126,025)

-

-

-

-

-

Reversal of special reserve

-

-

-

(287,029)

287,029

-

-

-

-

-

Cash dividends

-

-

-

-

(1,409,444)

-

-

-

-

(1,409,444)

-

-

126,025

(287,029)

(1,248,440)

-

-

-

-

(1,409,444)

Net profit (loss) for the nine months ended September 30, 2024

-

-

-

-

967,003

-

-

-

(2,862)

964,141

Other comprehensive income (loss) for the nine months ended

September 30, 2024

-

-

-

-

-

1,884

(21,141)

15,402

-

(3,855)

Total comprehensive income (loss) for the nine months ended

September 30, 2024

-

-

-

-

967,003

1,884

(21,141)

15,402

(2,862)

960,286

Change on disposal of interests in subsidiaries (Notes 4 and 34)

-

-

-

-

-

-

-

-

(135,232)

(135,232)

BALANCE AT SEPTEMBER 30, 2024

$

7,302,820

$

2,621,919

$

1,954,986

$

2,148,332

$

988,263

$

(66,022)

$

43,930

$

9,048

$

-

$ 15,003,276

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated November 11, 2024)

- 7 -

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

For the Nine Months Ended

September 30

2023

2024

(Restated)

CASH FLOWS FROM OPERATING ACTIVITIES

Income before tax from continuing operations

$ 1,012,142

$ 1,110,723

(Loss) profit from discontinued operations before tax

(8,450)

890

Income before income tax

1,003,692

1,111,613

Adjustments for:

Depreciation expense

319,908

265,871

Amortization expense

37,116

48,587

Finance costs

58,865

79,097

Interest income

(18,903)

(17,742)

Dividend income

(10,000)

(8,000)

Compensation cost of employee share options (Note 33)

-

96,426

Share of profit of associates accounted for using the equity method

(791,714)

(1,166,699)

Loss on disposal of property, plant and equipment

-

40

Gain on disposal of investment accounted for using the equity

method

(586)

-

Write-down of inventories

-

497

Loss (gain) on lease modification

47

(3,286)

(Realized) unrealized gain on transactions with associates

(24,187)

29,178

Net unrealized loss on foreign currency exchange

132

3,973

Changes in operating assets and liabilities

Contract assets

(1,429,490)

(492,443)

Notes receivable

(2,600)

-

Accounts receivable

(515,296)

316,687

Accounts receivable from related parties

(45,208)

73,861

Other receivables

(19,322)

15,013

Inventories

(2,297)

7,164

Prepaid construction costs

-

46,184

Other current assets

(52,508)

(4,078)

Prepaid value-added tax

33,798

(46,945)

Contract liabilities

(91,926)

(546,783)

Accounts payable

25,664

(52,503)

Construction costs payable

1,468,746

(290,174)

Accounts payable to related parties

263

(418)

Other payables

19,040

(68,583)

Provisions

97,444

172,508

Other current liabilities

(1,368)

(19,491)

Net defined benefit liabilities

1,313

1,549

Other liabilities

(1,674)

-

Cash generated from operations

58,949

(448,897)

Interest received

17,588

12,935

Dividends received

982,851

330,985

(Continued)

- 8 -

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

For the Nine Months Ended

September 30

2023

2024

(Restated)

Interest paid

$

(60,944)

$

(82,457)

Income tax paid

(130,883)

(107,943)

Net cash generated from (used in) operating activities

867,561

(295,377)

CASH FLOWS FROM INVESTING ACTIVITIES

Increase in financial assets at amortized cost

-

(383,323)

Decrease in financial assets at amortized cost

313,591

-

Proceeds from disposal of subsidiaries (Note 34)

85,657

-

Payments for property, plant and equipment (Note 35)

(256,798)

(850,398)

Increase in refundable deposits

(3,541)

(14,405)

Acquisition of intangible assets

(4,484)

(4,542)

Decrease in finance lease receivables

7,447

7,733

Increase other non-current assets

-

(644)

Increase in prepayments for equipment

(15,057)

-

Net cash generated from (used in) investing activities

126,815

(1,245,579)

CASH FLOWS FROM FINANCING ACTIVITIES

Decrease in short-term borrowings

(20,000)

(27,000)

Decrease in short-term bills payable

(500,000)

-

Proceeds from long-term borrowings

800,000

2,920,000

Repayments of long-term borrowings

(115,383)

(5,158,234)

Increase in guarantee deposits received

38,615

6,339

Repayments of the principal portion of lease liabilities

(41,070)

(40,199)

Dividends paid to owners of the Corporation

(1,409,444)

(618,501)

Issue of Corporation's new shares

-

3,031,000

Net cash (used in) generated from financing activities

(1,247,282)

113,405

EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE

OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN

CURRENCIES

510

(3,070)

NET DECREASE IN CASH AND CASH EQUIVALENTS

(252,396)

(1,430,621)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE

PERIOD

1,922,822

3,734,653

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

$

1,670,426

$

2,304,032

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated November 11, 2024)

(Concluded)

- 9 -

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