United Renewable Energy Co., Ltd.TWSE: 3576

2Q24 consolidated financial statement

Oct 23, 2024 at 8:05 AM UTC · Issued by United Renewable Energy Co., Ltd.

Stock Code:3576

UNITED RENEWABLE ENERGY CO., LTD.

AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors' Review Report

For the Six Months Ended June 30, 2024 and 2023

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.

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		8～10
	(4)	Summary of material accounting policies		10～14
	(5)	Significant accounting assumptions and judgments, and major sources	14
		of estimation uncertainty
	(6)	Explanation of significant accounts		14～48
	(7)	Related-party transactions		49～51
	(8)	Pledged assets	51
	(9)	Significant contingent liabilities and unrecognized commitments		51～54
	(10)	Losses due to major disasters	54
	(11)	Subsequent Events	54
	(12)	Others	55
	(13)	Other disclosures
		(a) Information on significant transactions		55～56,
				58～63
		(b) Information on investees		56, 64～66
		(c) Information on investment in mainland China	56, 67
		(d) Major shareholders	56
	(14)	Segment information	57

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 June 30, 2024 and 2023, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2024 and 2023, as well as the changes in equity and cash flows for the six months ended June 30, 2024 and 2023, 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 $6,186,675 thousand and $4,758,877 thousand, constituting 20% and 14% of consolidated total assets as of June 30, 2024 and 2023; total liabilities amounting to $4,816,154 thousand and $2,771,282 thousand, constituting 26% and 17% of consolidated total liabilities as of June 30, 2024 and 2023; total comprehensive income amounting to $(312,159) thousand, $44,930 thousand, $(373,125) thousand and $89,106 thousand, constituting 42%, (16)%, 41% and (117)% of consolidated total comprehensive income for the three months and six months ended June 30, 2024 and 2023.

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 $272,286 thousand and $236,442 thousand as of June 30, 2024 and 2023, and its shares of profit of associates accounted for using the equity method amounting to $(6,677) thousand, $4,191 thousand, $(9,777) thousand and $5,046 thousand for the three months and six months ended June 30, 2024 and 2023, 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 June 30, 2024 and 2023, and of its consolidated financial performance for the three months and six months ended June 30, 2024 and 2023, and its consolidated cash flows for the six months ended June 30, 2024 and 2023 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 Huang, Yung- Hua and Yu, Sheng-Ho.

KPMG

Taipei, Taiwan (Republic of China)

August 6, 2024

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.

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

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2024, December 31, 2023, and June 30, 2023

(Expressed in Thousands of New Taiwan Dollars)

	Assets
	Current assets:
1100	Cash and cash equivalents (note 6(a))	$
1110	Financial assets at fair value through profit or loss -
	current (note 6(b))
1120	Financial assets at fair value through other
	comprehensive income - current (notes 6(c) and 8)
1140	Contract assets - current (notes 6(z) and 7)
1170	Notes and accounts receivable, net (note 6(e))
1180	Accounts receivable from related parties (notes 6(e)
	and 7)
130X	Inventories (notes 6(f) and 9)
1410	Prepayments (note 9)
1460	Non-current assets held for sale (note 6(g))
1476	Other financial assets (notes 7 and 8)
1479	Other current assets
	Total current assets
	Non-current assets:
1510	Financial assets at fair value through profit or loss -
	non-current (notes 6(b) and (r))
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
	6(d))
1550	Investments accounted for using the equity method
	(note 6(h))
1600	Property, plant and equipment (notes 6(j), 7 and 8)
1755	Right-of-use assets (note 6(k))
1760	Investment property, net (notes 6(l) and 8)
1780	Intangible assets (note 6(m))
1840	Deferred tax assets
1915	Prepayments - non-current (note 9)
1920	Refundable deposits (note 8)
1990	Other non-current assets (notes 7 and 8)
	Total non-current assets
	Total assets	$

June 30, 2024			December 31, 2023		June 30, 2023
Amount	%		Amount		%		Amount		%
6,616,370		21	4,474,941	15		5,711,965	17
268,977		1	80,691	-		70,883	-
159,159		1	150,676	-		152,230	-
256,300		1	163,256	1		181,728	1
631,497		2	1,067,568	4		894,167	3
2,090		-	-	-		20,067	-
1,265,664		4	1,679,838	6		3,567,079	11
125,048		-	143,975	1		783,044	2
-		-	-	-		527,315	2
2,864,364		9	2,228,561	8		1,042,994	3
351,020		1		335,592		1		465,842		2
12,540,489		40		10,325,098		36		13,417,314		41
-		-	-	-		-	-
787,575		3	610,925	2		558,711	2
-		-	-	-		-	-
272,286		1	256,302	1		236,442	1
10,945,352		35	11,125,753	39		11,195,779	34
1,844,021		6	1,681,614	6		1,505,141	4
2,533,696		8	2,596,726	9		2,659,396	8
47,883		-	2,964	-		3,193	-
415,595		1	414,183	1		649,183	2
1,095,141		4	1,215,978	4		1,947,114	6
158,387		1	175,340	1		160,399	-
309,539		1		334,991		1		616,863		2
18,409,475		60		18,414,776		64		19,532,221		59
30,949,964		100	28,739,874	100		32,949,535	100

	Liabilities and Equity		June 30, 2024		December 31, 2023		June 30, 2023
		Amount	%		Amount	%				Amount	%
	Current liabilities:
2100	Short-term borrowings (note 6(n))	$	84,121		-		434,223		2		774,932			2
2110	Short-term bills payable (note 6(o))		49,864		-		-		-			-			-
2120	Financial liabilities at fair value through profit or loss
	- current (note 6(b))		3		-		331		-			13,791			-
2130	Contract liabilities - current (notes 6(z) and 7)		637,147		2		580,676		2		509,312			2
2170	Notes and accounts payable		465,063		2		668,796		2		819,011			3
2216	Dividends payable (note 6(x))		-		-		-		-			162,779			-
2280	Lease liability - current (note 6(s))		114,841		-		114,019		-			109,642			-
2320	Current portion of long-term borrowings, preference		6,162,858		20		5,878,968		20		3,114,314			9
	share liabilities and bonds payable (notes 6(p), (q)
	and (r))
2399	Other current liabilities (note 7)		2,597,053		8			1,600,638			6			1,855,586		6
	Total current liabilities		10,110,950		32		9,277,651		32		7,359,367			22
	Non-Current liabilities:
2500	Financial liabilities at fair value through profit or loss		9,806		-		11,643		-			16,367			-
	- non-current (notes 6(b) and (p))
2530	Bonds payable (note 6(q))		-		-		-		-			2,977,648			9
2540	Long-term borrowings (note 6(p))		6,236,943		20		4,098,246		14		3,665,030			11
2580	Lease liability - non-current (note 6(s))		1,863,751		6		1,716,006		6		1,531,935			5
2670	Other non-current liabilities (note 6(t))		582,438		2			531,058			2			533,785		2
	Total non-current liabilities		8,692,938		28			6,356,953			22			8,724,765		27
	Total liabilities		18,803,888		60		15,634,604		54		16,084,132			49
	Equity attributable to owners of parent (note 6(x))
3110	Ordinary shares		16,277,954		52		16,277,954		57		16,277,954			49
3200	Capital surplus		178,540		1		211,412		1		195,446			1
3310	Legal reserve		-		-		35,473		-			35,473			-
3350	Accumulated profit or loss		(4,767,646)	(15)	(3,707,474)	(13)	(181,325)		(1)
3400	Other equity		161,751		1		(47,659)	-			(78,421)		-
3500	Treasury shares		(18,699)	-		(18,699)	-			(18,699)		-
	Total equity attributable to owners of parent		11,831,900		39			12,751,007			45			16,230,428		49
36XX	Non-controlling interests		314,176		1			354,263			1			634,975		2
	Total equity		12,146,076		40			13,105,270			46			16,865,403		51
	Total liabilities and equity	$	30,949,964		100		28,739,874		100		32,949,535			100

See accompanying notes to consolidated financial statements.

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

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and six months ended June 30, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

			For the three months ended					For the six months ended
						June 30										June 30
			2024						2023						2024					2023
			Amount			%			Amount			%			Amount			%		Amount		%
4000	Net operating revenues (notes 6(z) and 7)	$	1,369,596		100			2,961,840		100			2,860,410		100		7,639,320		100
5110	Operating costs (notes 6(f), (s), (v), (aa) and 12)		1,297,973			95			2,943,321			99			2,856,340			100		7,266,765		95
5900	Gross profit (loss) from operations		71,623		5			18,519		1			4,070		-		372,555		5
	Operating expenses (notes 6(e), (s), (v), (aa) and 12):
6100	Selling expenses		56,841		4			112,826		4			130,719		5		238,808		3
6200	General and administrative expenses		131,752		10			192,545		6			278,000		10		339,783		4
6300	Research and development expenses		19,049		1			18,584		1			39,093		1		35,663		1
6450	Impairment losses (Reversal of impairment losses)
	on trade receivable		1,725			-			(1,669)	-			5,903		-		(5,418)	-
	Total operating expense		209,367			15			322,286			11			453,715			16		608,836		8
	Income (Loss) from operations		(137,744)	(10)		(303,767)	(10)	(449,645)	(16)	(236,281)	(3)
	Non-operating income and expenses:
7010	Other income (note 6(ab))		60,753		4			47,817		2			129,451		5		123,113		2
7020	Other gains and losses (note 6(ab))		(683,718)	(50)		(85,347)	(3)	(640,173)	(22)	(110,509)	(2)
7050	Finance costs (notes 6(q) and (s))		(107,171)	(8)		(82,460)	(3)	(197,133)	(7)	(168,392)	(2)
7060	Share of gain (loss) of associates and joint ventures
	accounted for using equity method (note 6(h))		(6,677)	-			4,191		-			(9,777)	-		5,046		-
7100	Interest income		30,700			2			14,057			-			40,360			1		15,082		-
			(706,113)	(52)		(101,742)	(4)	(677,272)	(23)	(135,660)	(2)
	Income (Loss) before income tax
		(843,857)	(62)		(405,509)	(14)	(1,126,917)	(39)	(371,941)	(5)
7950	Less: income tax expense (note 6(w))		668			-			684			-			724			-		3,018		-
8200	Net income (loss)		(844,525)	(62)		(406,193)	(14)	(1,127,641)	(39)	(374,959)	(5)
8300	Other comprehensive income :
8310	Items that may not be reclassified subsequently to
	profit or loss:
8316	Unrealized gain on investments in equity instruments
	at fair value through other comprehensive income		88,620		6			16,760		1			184,915		6		110,494		2
8360	Items that may be reclassified subsequently to profit
	or loss:
8361	Exchange differences on translation of foreign
	statements		11,322			1			103,910			3			28,643			1		188,428		2
8300	Total other comprehensive income		99,942			7			120,670			4			213,558			7		298,922		4
	Total comprehensive income (loss)	$	(744,583)	(55)		(285,523)	(10)	(914,083)	(32)	(76,037)	(1)
	Net income (loss) attributable to:

	Shareholders of the parent	$	(841,878)	(62)		(405,435)	(14)	(1,116,025)	(39)	(362,832)	(5)
	Non-controlling interests		(2,647)	-			(758)	-			(11,616)	-		(12,127)	-

		$	(844,525)	(62)		(406,193)	(14)	(1,127,641)	(39)	(374,959)	(5)
	Total comprehensive income (loss) attributable to:

	Shareholders of the parent	$	(747,125)	(55)		(298,081)	(10)	(920,439)	(32)	(71,192)	(1)
	Non-controlling interests		2,542			-			12,558			-			6,356			-		(4,845)	-

		$	(744,583)	(55)		(285,523)	(10)	(914,083)	(32)	(76,037)	(1)
	Loss per share

9750	Basic loss per share (NT dollars)	$			(0.52)				(0.25)			(0.69)			(0.22)
	(note 6(y))

See accompanying notes to consolidated financial statements.

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

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity For the six months ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

										Attributable to owners of parent
							Retained earnings			Other equity
																		Unrealized
															Exchange	gains (loss) on
															differences on	financial assets
	Share capital													translation of	at fair value				Total equity
													foreign	through other				attributable to	Non-
		Ordinary								Accumulated			financial	comprehensive	Treasury	owners of	controlling
Balance at January 1, 2023		shares		Capital surplus	Legal reserve	profit or loss			statements	income	shares	parent	interest		Total equity
$	16,277,905		187,699			-			354,726					(447,440)		102,412		(18,699)		16,456,603			639,816			17,096,419

Net loss for the six months ended June 30, 2023		-		-			-			(362,832)	-			-		-			(362,832)	(12,127)	(374,959)
Other comprehensive income (loss) for the six months ended June 30, 2023		-		-			-			-				181,146			110,494		-			291,640			7,282		298,922
Total comprehensive income (loss) for the six months ended June 30, 2023		-		-			-			(362,832)	181,146			110,494		-			(71,192)	(4,845)	(76,037)

Legal reserve appropriated		-		-			35,473			(35,473)	-			-		-			-			-			-
Cash dividends of ordinary share		-	-		-			(162,779)	-			-		-			(162,779)	-			(162,779)
Changes in equity of associates and joint ventures accounted for using the equity		-	7,701		-			-			-			-		-			7,701			-			7,701
method
Conversion of convertible bonds		49	50		-			-			-			-		-			99			-			99
Disposal of investments in equity instruments at fair value through other		-	-		-			25,033			-			(25,033)	-			-			-			-
comprehensive income
Difference between the price that has not been increased in proportion to		-	(4)	-			-			-			-		-			(4)	4			-
shareholding and net value
Balance at June 30, 2023	$	16,277,954		195,446			35,473			(181,325)	(266,294)	187,873		(18,699)	16,230,428			634,975			16,865,403
Balance at January 1, 2024
$	16,277,954	211,412		35,473			(3,707,474)	(275,092)	227,433		(18,699)	12,751,007			354,263			13,105,270
Net Loss for the six months ended June 30, 2024		-		-			-			(1,116,025)			-			-		-			(1,116,025)		(11,616)			(1,127,641)
Other comprehensive income (loss) for the six months ended June 30, 2024		-		-			-			-				10,671			184,915		-			195,586			17,972		213,558
Total comprehensive income (loss) for the six months ended June 30, 2024		-		-			-			(1,116,025)	10,671			184,915		-			(920,439)	6,356			(914,083)

Legal reserve used to offset accumulated deficits		-		-			(35,473)	35,473			-			-		-			-			-			-
Offset of deficit against capital surplus		-	(34,204)	-			34,204			-			-		-			-			-			-
Changes in equity of associates and joint ventures accounted for using the equity		-	1,332		-			-			-			-		-			1,332			-			1,332
method
Disposal of investments in equity instruments at fair value through other
comprehensive income		-	-		-			(13,824)	-			13,824		-			-			-			-
Non-controlling interests		-		-			-			-				-			-		-			-			(46,443)	(46,443)

Balance at June 30, 2024	$	16,277,954		178,540			-			(4,767,646)	(264,421)	426,172		(18,699)	11,831,900			314,176			12,146,076

See accompanying notes to consolidated financial statements.

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

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six months ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

		For the six months ended June 30
		2024		2023
Cash flows from operating activities:

Loss before income tax	$	(1,126,917)	(371,941)
Adjustments:
Adjustments to reconcile profit (loss):
Depreciation expense		604,871		598,253
Amortization expense		1,938		1,101
Expected credit loss (gain)		26,484		(5,418)
Net loss on financial assets or liabilities at fair value through profit or loss		9,771		5,120
Interest expense		150,578		133,523
Interest income		(40,360)	(15,082)
Dividends income		(10,052)	(1,201)
Share of loss (profit) of associates and joint ventures accounted for using the equity method		9,777		(5,046)
Gain on disposal of property, plant and equipment and power facilities business held for sale		(12,947)	(774)
Impairment loss on property, plant and equipment		269,354		-
Reversal of inventories		(360,842)	(10,204)
Others		389,916		39,679
Total adjustments to reconcile profit (loss)		1,038,488		739,951
Changes in operating assets and liabilities:
Contract assets - current		(93,044)	157,579
Notes and accounts receivable		455,446		1,541,060
Accounts receivable from related parties		(2,090)	8,556
Inventory		652,609		926,003
Prepayments (including non-current)		14,649		876,396
Other current assets		1,751		(41,110)
Increase in financial assets at fair value through profit or loss		(265,192)	-
Contract liabilities - current		39,577		128,208
Notes and accounts payable (including related parties)		(226,866)	(365,930)
Provisions		885		15,722
Other current liabilities		634,146		(112,811)
Total changes in operating assets and liabilities		1,211,871		3,133,673
Cash flows generated from operations		1,123,442		3,501,683
Income taxes paid		(8,186)	(4,934)
Net cash flows generated from operating activities		1,115,256		3,496,749
Cash flows from investing activities:
Acquisition of financial assets at fair value through other comprehensive income		(51,095)	-
Proceeds from disposal of financial assets at fair value through other comprehensive income		35,652		72,283
Acquisition of investments accounted for using the equity method		(18,719)	-
Acquisition of property, plant and equipment		(935,115)	(1,203,554)
Proceeds from disposal of property, plant and equipment and power facilities business		514,858		10,110
Decrease (increase) in refundable deposits		25,004		(4,307)
Acquisition of intangible assets		(4,598)	(1,044)
Increase in other financial assets		(623,281)	(70,409)
Decrease in other non-current assets		123,924		107,719
Net cash outflows resulting from business combination		(25,412)	-
Interest received		42,131		15,712
Dividends received		10,052		3,328
Net cash flows used in investing activities		(906,599)		(1,070,162)
Cash flows from financing activities:
Decrease in short-term loans		(350,102)	(1,111,333)
Increase (decrease) in short-term bills payable		50,000		(100,000)
Proceeds from long-term borrowings		2,568,042		313,350
Repayments of long-term borrowings		(248,049)	(408,413)
Repayments of preference share liabilities		(4,449)	(4,261)
Payment of lease liabilities		(53,845)	(29,464)
Interest paid		(149,575)	(134,470)
Others		26,032		48,187
Net cash flows generated from (used in) financing activities		1,838,054		(1,426,404)
Effect of exchange rate changes on cash and cash equivalents		94,718		(43,286)
Net increase in cash and cash equivalents		2,141,429		956,897
Cash and cash equivalents at beginning of period		4,474,941		4,755,068
Cash and cash equivalents at end of period	$	6,616,370		5,711,965

See accompanying notes to consolidated financial statements.

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

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

United Renewable Energy Co., Ltd., formerly Neo Solar Power Corp., (the "Group") was incorporated in the Republic of China on August 26, 2005. It specializes in manufacturing high-quality solar cells, solar cell modules and wafers. The Group's main business activities include researching, developing, designing, manufacturing and selling solar cells, as well as participating in other solar-related businesses. Its ordinary shares have been listed on the Taiwan Stock Exchange (TWSE) since January 2009.

On October 1, 2018, the Group merged with former Gintech Energy Corporation (" Gintech" ) and Solartech Energy Corporation ("Solartech"), with the Group as the sole surviving company. On March 31, 2019, the Group merged with former General Energy Solutions Inc. (GES), with the Group as the surviving company and GES as the dissolved entity.

(2) Approval date and procedures of the consolidated financial statements

The consolidated financial statements were approved and released by the Group's Board of Directors on August 6, 2024.

New standards, amendments and interpretations adopted:
1. The impact of the IFRS Accounting Standards endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.
  The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2024:
2. - Amendments to IAS 1 "Classification of Liabilities as Current or Non-current"
  - Amendments to IAS 1 "Non-current Liabilities with Covenants"
  - Amendments to IAS 7 and IFRS 7 "Supplier Finance Arrangements"
  - Amendments to IFRS 16 "Lease Liability in a Sale and Leaseback"
3. The impact of IFRS endorsed by the FSC but not yet effective
  The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2025, would not have a significant impact on its consolidated financial statements:
4. - Amendments to IAS21 "Lack of Exchangeability"

(Continued)

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The impact of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or							Effective date per
Interpretations		Content of amendment			IASB
IFRS 18 "Presentation and	The	new	standard introduces	three		January 1, 2027
Disclosure in Financial	categories of income and expenses, two
Statements"	income statement subtotals and one single
	note	on	management	performance
	measures.	The	three	amendments,
	combined with enhanced guidance on how
	to disaggregate information,	set the	stage

for better and more consistent information for users, and will affect all the entities.

A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ' operating profit' subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company' s main business activities.
Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.
Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

(Continued)

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