URE — Annual Report 2020

Nov 16, 2020

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Stock Code:3576

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2020 and 2019

Address: No.7, Lixing 3rd Road, Hsinchu Science Park, Hsinchu City 30078,Taiwan Telephone: (03)5780011

The independent auditors’ 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’ report and consolidated financial statements, the Chinese version shall prevail.

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Representation Letter 4. Independent Auditors’ Report 5. Consolidated Balance Sheets 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant contingent liabilities and unrecognized commitments (10) Losses due to major disasters (11) Subsequent Events (12) Others (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information

Page

1 2 3 4 5 6 7 8 9 9 9～10 11～27 28～29 29～67 67～72 73 73～74 74 74 74 75、79～ 86 75、87～ 90 75、91 75～76 76～78

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Representation Letter

The entities that are required to be included in the combined financial statements of United Renewable Energy Co., Ltd. as of and for the year ended December 31, 2020 under the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10 endorsed by the Financial Supervisory Commission, "Consolidated Financial Statements". In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, United Renewable Energy Co., Ltd. and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: United Renewable Energy Co., Ltd. Chairman: CHUM SAM HONG Date: March 25, 2021

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) Telephone 電話 + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, Fax 傳真 + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) Internet 網址 home.kpmg/tw

Independent Auditors’ Report

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

Opinion

We have audited the consolidated financial statements of United Renewable Energy Co., Ltd. and its subsidiaries (“ the Group” ), which comprise the consolidated balance sheets as of December 31, 2020, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (“ IFRSs” ), International Accounting Standards (“ IASs” ), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audit in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China (“ the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Based on our judgment, the key audit matters that should be disclosed in this audit report are as follows.

1. Revenue recognition

Please refer to note 4 (q) “ Revenue recognition” for accounting policy and note 6 (y) “ Revenue from contracts with customers” of the consolidated financial statements for further information.

Description of key audit matter:

The Group’ s revenues are derived from the sales of solar modules, power plant and cells. Revenue recognition is also dependent on whether the specified sales terms in each individual contract are met. In consideration of the high volume of sales transactions generated from world-wide operations, revenue recognition is one of the key areas our audit focused on.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

4-1

How the matter was addressed in our audit:

Our principal audit procedures included: understanding of revenue recognition policies and assessing whether revenue recognition policies are appropriate based on sales terms and revenue recognition criteria; understanding the design and process of implementation of internal controls and testing operating effectiveness; testing selected sales samples and agreeing to customer orders, delivery note and related documentation supporting sales recognition; testing sales cut-off, on a sample basis, for transactions incurred within a certain period before or after the balance sheet date by reviewing related sales terms, inspecting delivery documents, and other related supporting document to evaluate whether the revenue was recorded in proper period.

2. The valuation of power plants under construction

Please refer to note 4 (h) “Inventory” for accounting policy and note 5 “assumptions and judgments, and major sources of estimation uncertainty for valuation of power plants under construction” of the consolidated financial statements for further information.

Description of key audit matter:

The Group developed its power plants under construction and sold them to earn profits. Therefore, the project revenue of the power plants under construction and the estimated marketable price are deemed essential by the Group, the valuation of power plants under construction is one of the key areas our audit focused on.

How the matter was addressed in our audit:

Our principal audit procedures included: obtaining the comparative information of the total budget and actual accumulated expenditures of the projects currently under construction for the long-term equity investment and understanding the completion progress of each power plant project and additional costs needed to be invested as of the reporting date; reviewing the net realizable value of the power plants under construction as assessed by the management, including whether the evaluation method used complies with the International Financial Reporting Standards; checking the calculation of the net realizable value of the power plants under construction by the management, and evaluating the source of the estimated sales price.

1. Assessment of impairment of non-financial assets

Please refer to note 4 (o) “Impairment of non-financial assets” for accounting policy and note 5 “assumptions and judgments, and major sources of estimation uncertainty for impairment of non-financial assets” of the consolidated financial statements for further information.

Description of key audit matter:

The Group belongs to a high capital expenditure industry, and its production capacity relies on the customer needs. However, in an environment where market supply exceeds demand, product prices continue to decline. Therefore, the assessment of long-term non-financial asset impairment is important. The process of asset impairment assessment relies on the subjective judgment of the management. It is an accounting estimate with a high degree of uncertainty. Therefore, the assessment of impairment of non-financial assets is one of the key areas our audit focused on.

4-2

How the matter was addressed in our audit:

Our principal audit procedures included: assessing the cash-generating units recognized by the management that might have internal and external signs of impairment, and considering whether all assets that required annual impairment tests have been fully included in the assessment scope; evaluating whether the evaluation method used by the management to measure the recoverable amount of each cash-generating unit complies with the International Financial Reporting Standards, and reviewing its related calculations and various assumptions used, as well as conducting sensitivity analysis on important assumptions.

Other Matter

We did not audit the consolidated financial statements of the Group as of December 31, 2019. Those financial statements were audited by other auditors who expressed an unqualified opinion with emphasis of matter and other matter paragraphs on those statements dated March 26, 2020.

The Group has prepared its parent company only financial statements as of and for the years ended December 31, 2020 and 2019, on which we and other auditors expressed an unqualified opinion and an unqualified opinion with emphasis of matter and other matter paragraphs, respectively.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs, IASs, interpretation developed by IFRIC or SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Audit Committee) are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

4-3

As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

4-4

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Cheng Chien Chen and Yung Hua Huang.

KPMG

Taipei, Taiwan (Republic of China) March 25, 2021

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 audit such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’audit 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’audit report and consolidated financial statements, the Chinese version shall prevail.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2020 and 2019

(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 (note 6(c)) 1140 Contract assets - current (notes 6(y) and 7) 1170 Notes and accounts receivable, net (note 6(e)) 1180 Accounts receivable from related parties, net (notes 6(e) and 7) 1200 Other receivables 1210 Other receivables from related parties (note 7) 130X Inventories (notes 6(f) and 8) 1410 Prepayments (notes 7 and 9) 1476 Other financial assets (note 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 (o)) 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 (notes 6(g), 7 and 8) 1600 Property, plant and equipment (notes 6(i), 7 and 8) 1755 Right-of-use assets (note 6(j)) 1760 Investment property, net (note 6(k)) 1780 Intangible assets (note 6(l)) 1840 Deferred tax assets (note 6(u)) 1915 Prepayments - non-current (notes 7 and 9) 1920 Refundable deposits (note 8) 1942 Other receivables from related parties - non-current (note 7) 1990 Other non-current assets (note 8) Total non-current assets Total assets	December 31, 2020 Amount % $ 4,954,658 15 2,714 - 114,715 - 175,041 1 2,078,846 6 206,901 1 174,376 1 785,448 2 3,517,082 11 737,746 2 1,107,101 3 246,734 1 14,101,362 43 182,058 1 276,774 1 140,475 - 176,322 1 10,450,989 32 568,497 2 2,741,260 8 70,317 - 639,924 2 1,979,465 6 732,696 2 21,581 - 378,981 2 18,359,339 57 $ 32,460,701 100	December 31, 2019 Amount % 6,371,316 14 2,392 - 114,414 - 483,247 1 2,060,117 4 515,469 1 153,196 - 656,913 1 4,944,580 11 752,686 2 617,391 1 830,607 2 17,502,328 37 268,379 1 2,411,482 5 149,975 - 2,130,415 5 19,064,958 40 981,114 2 - - 115,357 - 1,056,550 2 2,184,811 5 911,486 2 23,041 - 426,588 1 29,724,156 63 47,226,484 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(m)) 2110 Short-term bills payable (note 6(n)) 2120 Financial liabilities at fair value through profit or loss - current (note 6(b)) 2130 Contract liabilities - current (notes 6(y) and 7) 2170 Notes and accounts payable 2280 Lease liability - current (note 6(q)) 2320 Current portion of long-term borrowings, preference share liabilities and bonds payable (notes 6(o) and (p)) 2399 Other current liabilities (note 6(r) and 7) Total current liabilities Non-Current liabilities: 2500 Financial liabilities at fair value through profit or loss - non-current (notes 6(b) and (o)) 2540 Long-term borrowings (note 6(o)) 2580 Lease liability - non-current (note 6(q)) 2635 Preference share liabilities - non-current (note 6(p)) 2670 Other non-current liabilities (notes 6(r) and (u)) Total non-current liabilities Total liabilities Equity attributable to owners of parent (notes 6(v) and (w)) 3110 Ordinary shares 3200 Capital surplus 3350 Accumulated deficit 3400 Other equity 3500 Treasury shares Total equity attributable to owners of parent 36XX Non-controlling interests Total equity Total liabilities and equity	December 31, 2020		December 31, 2019 Amount % 2,988,798 7 415,458 1 755 - 323,832 1 1,505,764 3 65,778 - 5,737,284 12 1,480,497 3 12,518,166 27 143,814 - 11,776,935 25 952,521 2 28,178 - 322,635 1 13,224,083 28 25,742,249 55 26,653,375 57 118,989 - (6,000,644) (13) (31,028) - (18,699) - 20,721,993 44 762,242 1 21,484,235 45 47,226,484 100
			Amount %
			$ 2,320,002 7 174,810 1 5,437 - 348,911 1 1,336,177 4 50,913 - 5,381,804 17 1,626,370 5 11,244,424 35 99,741 - 5,115,671 16 605,021 2 13,219 - 358,511 1 6,192,163 19 17,436,587 54 26,650,863 82 7,877 - (11,581,063) (36) (802,046) (2) (18,699) - 14,256,932 44 767,182 2 15,024,114 46 $ 32,460,701 100

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2020 and 2019

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

4000 Net operating revenues (notes 6(y) and 7) 5110 Operating costs (notes 6(f)(q)(t), 7 and 12) 5900 Gross loss from operations 5920 Add: Realized (unrealized) profit from sales 5950 Realized gross loss Operating expenses(notes 6(e)(q)(t) and 12): 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Impairment loss (reversal of impairment loss) on trade receivable Total operating expense 6500 Other income and expenses(note 6(i)) Loss from operations Non-operating income and expenses: 7010 Other income (notes 6(d)(s)(aa) and 7) 7020 Other gains and losses (notes 6(g)(h) and (aa)) 7050 Finance costs (note 6(q)) 7060 Share of gain (loss) of associates and joint ventures accounted for using equity method (note 6(g)) 7100 Interest income Loss before income tax 7950 Less: Income tax expense (note 6(u)) 8200 Net loss 8300 Other comprehensive income: 8310 Items that may not be reclassified subsequently to profit or loss: 8316 Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation of foreign statements 8300 Total other comprehensive income (loss) Total comprehensive income (loss) Net loss attributable to: Shareholders of the parent Non-controlling interests Total comprehensive income (loss) attributable to: Shareholders of the parent Non-controlling interests Loss per share 9750 Basic loss per share (NT dollars) (note 6(x))	2020 Amount % $ 12,511,034 100 13,443,714 107 (932,680) (7) 56,204 - (876,476) (7) 514,828 4 1,090,358 9 176,893 1 (22,405) - 1,759,674 14 (1,978,107) (16) (4,614,257) (37) 347,489 3 (802,967) (7) (651,941) (5) (31,686) - 17,930 - (1,121,175) (9) (5,735,432) (46) 426,875 3 (6,162,307) (49) 113,745 1 (422,528) (4) (308,783) (3) $ (6,471,090) (52) $ (6,139,015) (49) (23,292) - $ (6,162,307) (49) $ (6,398,838) (51) (72,252) (1) $ (6,471,090) (52) $ (2.31)	2019 Amount % 18,139,112 100 19,121,643 105 (982,531) (5) (1,792) - (984,323) (5) 1,090,967 6 1,167,887 7 218,674 1 (6,593) - 2,470,935 14 (1,766,692) (10) (5,221,950) (29) 241,234 1 282,582 2 (874,294) (5) (187,589) (1) 53,461 - (484,606) (3) (5,706,556) (32) 62,633 - (5,769,189) (32) 803,421 5 16,651 - 820,072 5 (4,949,117) (27) (5,686,065) (31) (83,124) (1) (5,769,189) (32) (4,848,665) (27) (100,452) - (4,949,117) (27) (2.26)

See accompanying notes to consolidated financial statements.

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(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 years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2019 Effect of retrospective application Balance at January 1, 2019 as restated Net loss for the year ended December 31, 2019 Other comprehensive income (loss) for the year ended December 31, 2019 Total comprehensive income (loss) for the year ended December 31, 2019 Other changes in capital surplus: Offset of deficit against capital surplus Issuance of new shares Distribution of restricted shares for employees Non-controlling interests Disposal of investments in equity instruments at fair value through other comprehensive income Compensation cost of restricted shares for employees Cancellation of restricted shares for employees Changes in equity of associates and joint ventures accounted for using equity method Compensation costs of employee shares options Balance at December 31, 2019 Net loss for the year ended December 31, 2020 Other comprehensive income (loss) for the year ended December 31, 2020 Total comprehensive income (loss) for the year ended December 31, 2020 Other changes in capital surplus: Changes in equity of associates and joint ventures accounted for using the equity method Offset of deficit against capital surplus Difference between consideration and carrying amount of subsidiaries acquired or disposed Changes in ownership interests in subsidiaries Non-controlling interests Distribution of restricted shares for employees Cancellation of restricted shares for employees Disposal of investments in equity instruments at fair value through other comprehensive income Adjustments to capital surplus and retained earnings for changes in subsidiaries’ equity Compensation cost of restricted shares for employees Balance at December 31, 2020			Attributable to ow	Attributable to ow	ners of parent			Total equity attributable to owners of parent 24,907,012 (307,369) 24,599,643 (5,686,065) 837,400 (4,848,665) - 978,000 - - - 8,816 (19,072) (367) 3,638 20,721,993 (6,139,015) (259,823) (6,398,838) 7,819 - (84,834) 473 - - (3,033) - 794 12,558 14,256,932	Non- controlling interest 897,999 (34,173) 863,826 (83,124) (17,328) (100,452) - - - (1,499) - - - 367 - 762,242 (23,292) (48,960) (72,252) - - 84,834 (473) (7,970) - - - 801 - 767,182	Total equity
	Share capital	Capital surplus 1,011,023 - 1,011,023 - - - (369,468) (522,000) (4,741) - - 333 204 - 3,638 118,989 - - - 7,819 (123,629) - 473 - 1,201 1,429 - 1,595 - 7,877	Accumulated deficits (369,468) (306,244) (675,712) (5,686,065) - (5,686,065) 369,468 - - - (7,968) - - (367) - (6,000,644) (6,139,015) - (6,139,015) - 123,629 (84,834) - - (1,591) - 522,193 (801) - (11,581,063)		Other equity	Unearned employees benefits (16,586) - (16,586) - - - - - (17,309) - - 8,483 6,998 - - (18,414) - - - - - - - - (7,560) 6,000 - - 12,558 (7,416)	Treasury shares (18,699) - (18,699) - - - - - - - - - - - - (18,699) - - - - - - - - - - - - - (18,699)
	Ordinary shares $ 25,157,599 - 25,157,599 - - - - 1,500,000 22,050 - - - (26,274) - - 26,653,375 - - - - - - - - 7,950 (10,462) - - - $ 26,650,863			Exchange differences on translation of foreign financial statements (328,960) (1,125) (330,085) - 33,979 33,979 - - - - - - - - - (296,106) - (373,568) (373,568) - - - - - - - - - - (669,674)	Unrealized gains (loss) on financial assets at fair value through other comprehensive income (527,897) - (527,897) - 803,421 803,421 - - - - 7,968 - - - - 283,492 - 113,745 113,745 - - - - - - - (522,193) - - (124,956)
										25,805,011 (341,542)
										25,463,469
										(5,769,189) 820,072
										(4,949,117)
										- 978,000 - (1,499) - 8,816 (19,072) - 3,638
										21,484,235
										(6,162,307) (308,783)
										(6,471,090)
										7,819 - - - (7,970) - (3,033) - 1,595 12,558
										15,024,114

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Loss before income tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Expected credit loss (gain) Net (gain) loss on financial assets or liabilities at fair value through profit or loss Finance cost Interest income Dividends income Compensation cost of restricted shares for employees Compensation cost of employee shares options Share of loss of associates and joint ventures accounted for using the equity method Loss (Gain) on disposal of property, plant and equipment and power facilities business held for sale Gain on disposal of investments Impairment loss on property, plant and equipment Impairment loss on intangible assets Impairment loss on prepayment Other Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Contract assets - current Notes and accounts receivable Accounts receivable from related parties Other receivables Other receivables from related parties Inventory Prepayments (including non-current) Other current assets Contract liabilities - current Notes and accounts payable (including related parties) Provisions Other current liabilities Total changes in operating assets and liabilities Cash inflow generated from (used in) operations Income taxes paid Net cash flows generated from (used in) operating activities Cash flows from investing activities: Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of investments accounted for using the equity method Proceeds from disposal of associates Proceeds from disposal of subsidiaries Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment and power facilities business held for sale Decrease in refundable deposits Increase in other receivables from related parties Acquisition of intangible assets Decrease (increase) in other financial assets Decrease (increase) in other non-current assets Interest received Dividends received Net cash flows generated from investing activities Cash flows from financing activities: Decrease in short-term loans Increase (decrease) in short-term bills payable Repayments of bonds payable Proceeds from long-term borrowings Repayments of long-term borrowings Repayments of preference share liabilities Payment of lease liabilities Proceeds from issuance of ordinary shares Interest paid Others Net cash used in financing activities Effect of exchange rate changes Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2020 $ (5,735,432) 2,058,233 8,900 (22,405) 5,508 651,941 (17,930) (89,028) 10,826 - 31,686 598,885 (204,861) 1,977,516 591 116,788 451,479 5,578,129 308,206 (49,122) 312,647 83,252 352,681 801,045 94,512 419,515 25,079 (148,907) 88,784 113,888 2,401,580 2,244,277 (25,660) 2,218,617 2,241,455 6,470 (30,000) 1,873,903 247,957 (254,697) 1,132,792 157,224 - - (504,920) (10,839) 13,300 95,577 4,968,222 (422,748) (241,200) - 1,768,160 (8,703,728) (17,978) (80,518) - (596,186) 54,732 (8,239,466) (364,031) (1,416,658) 6,371,316 $ 4,954,658	2019 (5,706,556) 3,348,315 22,933 23,504 (74,862) 874,294 (55,982) (75,153) (301) 3,638 187,589 11,988 (212,773) 1,617,369 137,904 1,766 (49,675) 5,760,554 (386,630) 521,608 24,373 123,076 390,026 (376,619) (43,799) (26,317) (21,420) (518,495) (128,904) (792,414) (1,235,515) (1,181,517) (43,209) (1,224,726) 6,755 - - - 747,551 (691,430) 8,580 97,448 (11,360) (564) 3,341,546 40,864 64,431 90,360 3,694,181 (3,843,502) 139,022 (3,728,400) 13,150,879 (11,406,920) (4,923) (59,470) 978,000 (846,638) 4,870 (5,617,082) (36,902) (3,184,529) 9,555,845 6,371,316

See accompanying notes to consolidated financial statements.

9

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2020 and 2019

(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 March 25, 2021.

(3) New standards, amendments and interpretations adopted:

• (a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) 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 during 2020:

• ●Amendments to IFRS 3 “Definition of a Business”

• ●Amendments to IFRS 9, IAS39 and IFRS7 “Interest Rate Benchmark Reform”

• ●Amendments to IAS 1 and IAS 8 “Definition of Material”

• ●Amendments to IFRS 16 “COVID-19-Related Rent Concessions”

• (b) The impact of IFRS issued 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, 2021, would not have a significant impact on its consolidated financial statements:

• ●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”

• －

• ●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform Phase 2”

(Continued)

10

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (c) The impact of IFRS 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 Interpretations Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 37 “Onerous Contracts－Cost of Fulfilling a Contract”

Content of amendment Effective date per IASB The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of balance sheet, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments include clarifying the classification requirements for debt a company might settle by converting it into equity. January 1, 2023 The amendments clarify that the ‘ costs of fulfilling a contract’ comprises the costs that relate directly to the contract as follows: ●the incremental costs – e.g. direct labor and materials; and ●an allocation of other direct costs – e.g. an allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract. January 1, 2022

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• ●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

• －

• ●Amendments to IAS 16 “Property, Plant and Equipmentt Proceeds before Intended Use”

• ●Annual Improvements to IFRS Standards 2018-2020

• ●Amendments to IFRS 3 “Reference to the Conceptual Framework”

• ●Amendments to IAS 1 “Disclosure of Accounting Policies”

• ●Amendments to IAS 8 “Definition of Accounting Estimates”

(Continued)

11

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Summary of significant accounting policies

The significant accounting policies presented in the consolidated financial statements are summarized as follows. The following accounting policies were applied consistently throughout the periods presented in the consolidated financial statements.

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations” ) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C..

• (b) Basis of preparation

• (i) Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

• 1) Financial instruments at fair value through profit or loss are measured at fair value;

• 2) Financial assets at fair value through other comprehensive income are measured at fair value;

• (ii) Functional and presentation currency

The functional currency of each Group entity is determined based on the primary economic environment in which the entity operates. The consolidated financial statements are presented in New Taiwan Dollar (NTD), which is the Group’ s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

• (c) Basis of consolidation

• (i) Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

(Continued)

12

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group prepares consolidated financial statements using uniform accounting policies for alike transactions and other events in similar circumstances.

Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

When the Group loses control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any interest retained in the former subsidiary is measured at fair value when control is lost, with the resulting gain or loss being recognized in profit or loss. The Group recognizes as gain or loss in profit or loss the difference between (i) the fair value of the consideration received as well as any investment retained in the former subsidiary at its fair value at the date when control is lost ;and (ii) the assets (including any goodwill), liabilities of the subsidiary as well as any related non-controlling interests at their carrying amounts at the date when control is lost, as gain or loss in profit or loss. When the Group loses control of its subsidiary, it accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if it had directly disposed of the related assets or liabilities.

(ii) List of subsidiaries in the consolidated financial statements:

Please refer to Note 13 (b) for the details of subsidiaries, shareholding ratios and main businesses and products included in the consolidated financial report

(iii) Subsidiaries not included in the consolidated financial statements: None.

• (d) Foreign currencies

• (i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date.

Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies at the dates when the value was measured. Nonmonetary items denominated in foreign currencies measured at historical cost are translated into the functional currencies at the dates of transaction date.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

(Continued)

13

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to noncontrolling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

• (e) Classification of current and non-current assets and liabilities

An asset is classified as current under one of the following criteria, and all other assets are classified as non current.

• (i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is expected to be realized within twelve months after the reporting period; or

• (iv) The asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current under one of the following criteria, and all other liabilities

are classified as non current.

An entity shall classify a liability as current when:

• (i) It is expected to be settled in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is due to be settled within twelve months after the reporting period; or

• (iv) The Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

(Continued)

14

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(f) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting shortterm cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(g) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• ‧ it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• ‧ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

(Continued)

15

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Fair value through other comprehensive income (FVOCI)

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established (Usually on the ex-dividend date).

• 3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

• 4) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, notes and trade receivables, other receivable, leases receivable, guarantee deposit paid and other financial assets).

The Group measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

• ‧ debt securities that are determined to have low credit risk at the reporting date; and

• ‧ other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 month after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

(Continued)

16

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Corporation considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Corporation’s historical experience and informed credit assessment as well as forwardlooking information.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

5) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

Debt and equity instruments issued by the Group are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

(Continued)

17

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Treasury shares

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

4) Preference shares

The Group’s redeemable preference shares are classified as financial liabilities, because they bear non-discretionary dividends and are redeemable in cash by the holders. Nondiscretionary dividends thereon are recognized as interest expense in profit or loss as accrued. Non-redeemable preference shares are classified as equity, because they bear discretionary dividends, do not contain any obligations to deliver cash or other financial assets and do not require settlement in a variable number of the Group’ s equity instruments. Discretionary dividends thereon are recognized as equity distributions on approval by the Company’s shareholders.

5) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

6) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

(Continued)

18

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Derivative financial instruments and hedge accounting

The Group holds derivative financial instruments to hedge its foreign currency and interest rate exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met.

Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognized in profit or loss.

(h) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the weighted-average method and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(i) Investment in associates

Associates are those entities in which the Group has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The consolidated financial statements include the Group’ s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Group, from the date on which significant influence commences until the date on which significant influence ceases. The Group recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual significant influence.

Gains and losses resulting from transactions between the Group and an associate are recognized only to the extent of unrelated Group’s interests in the associate. When the Group’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

(Continued)

19

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Corporation discontinues the use of the equity method and measures the retained interest at fair value from the date when its investment ceases to be an associate. The difference between the fair value of retained interest and proceeds from disposing, and the carrying amount of the investment at the date the equity method was discontinued is recognized in profit or loss. The Corporation accounts for all the amounts previously recognized in other comprehensive income in relation to that investment on the same basis as would have been required if the associates had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in other comprehensive income would be reclassified to profit or loss ( or retained earnings) on the disposal of the related assets or liabilities, the Corporation reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) ( or retained earnings) when the equity method is discontinued. If the Corporation’s ownership interest in an associate is reduced while it continues to apply the equity method, the Corporation reclassifies the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest to profit or loss.

When the Corporation subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Corporation’ s proportionate interest in the net assets of the associate. The Corporation records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus. The aforesaid adjustment should first be adjusted under capital surplus. If the capital surplus resulting from changes in ownership interest is not sufficient, the remaining difference is debited to retained earnings. If the Corporation’s ownership interest is reduced due to the additional subscription to the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

(i) Joint Arrangements

A joint arrangement is an arrangement of which two or more parties have joint control. The IFRS classifies joint arrangements into two types — joint operations and joint ventures, which have the following characteristics: (a) the parties are bound by a contractual arrangement; and (b) the contractual arrangement gives two or more of those parties joint control of the arrangement. IFRS 11 “Joint Arrangements” defines joint control as the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (ie activities that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.

A joint venture is a joint arrangement whereby the Group has joint control of the arrangement (i.e. joint venturers) in which the Group has rights to the net assets of the arrangement , rather than rights to its assets and obligations for its liabilities. rather than rights to its assets and obligations for its liabilities. The Group recognizes its interest in a joint venture as an investment and accounts for that investment using the equity method in “ Investments in Associates and Joint Ventures”, unless the Group qualifies for exemption from that Standard.

When assessing the classification of a joint arrangement, the Group considers the structure and legal form of the arrangement, the terms in the contractual arrangement, and other facts and circumstances. When the facts and circumstances change, the Company reevaluates whether the classification of the joint arrangement has changed.

(Continued)

20

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services, or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. Depreciation expense is calculated based on the depreciation method, useful life, and residual value which are the same as those adopted for property, plant and equipment.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

Rental income from investment property is recognized as other revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

• (k) Property, plant and equipment

• (i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

• (iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

• 1) Buildings: 15~21 years

• 2) Machinery and equipment: 4~11 years

• 3) Other equipment: 3~25 years

(Continued)

21

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

• (iv) Reclassification to investment property

A property is reclassified to investment property at its carrying amount when the use of the property changes from owner-occupied to investment property.

(l) Leases

• (i) Identifying a lease

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether:

• 1) the contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; and

• 2) the customer has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and

• 3) the customer has the right to direct the use of the asset throughout the period of use only if either:

• the customer has the right to direct how and for what purpose the asset is used throughout the period of use; or

• the relevant decisions about how and for what purpose the asset is used are predetermined and:

  • － the customer has the right to operate the asset throughout the period of use, without the supplier having the right to change those operating instructions; or

  • － the customer designed the asset in a way that predetermines how and for what purpose it will be?used throughout the period of use.

(ii) As a leasee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

(Continued)

22

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• － fixed payments, including in-substance fixed payments;

• － variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• － amounts expected to be payable under a residual value guarantee; and

• － payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

• －

• there is a change in future lease payments arising from the change in an index or rate; or

• － there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or

• － there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or

• － there is a change of its assessment on whether it will exercise a extension or termination option; or

• －

• there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

(Continued)

23

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group has selected not to recognize right-of-use assets and lease liabilities for short-term leases of other equipmants, leases of low value lease object and staff dormitory leases of variable object. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(iii) As a leasor

When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Group applies IFRS15 to allocate the consideration in the contract.

The Group recognizes a finance lease receivable at an amount equal to its net investment in the lease. Initial direct costs, such as lessors to negotiate and arrange a lease, are included in the measurement of the net investment. The interest income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the net investment in the lease. The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other income’.

(m) Intangible assets

(i) Recognition and measurement

Goodwill arising on the acquisition of subsidiaries is measured at cost, less accumulated impairment losses.

Other intangible assets, including customer relationships, patents and trademarks, that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

(Continued)

24

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives for current and comparative periods are 1 to 15 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(n) Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, contract assets, deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss.They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(o) Provisions

A provision is recognized if, as a result of a past event, the Group has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

(Continued)

25

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Revenue recognition

• (i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

1) Sale of goods

The Group engages in the manufacturing of solar cells and modules, as well as in the development and sales of solar plant. The Group recognizes revenue when control of the products has been transferred, being when the products are delivered to the customer, and when the customer obtains control of the promised assets.

The Group provides a standard warranty for sale of goods and bears the obligation to refund defects, in which the Group recognizes a warranty liability provision for this obligation.

A receivable is recognized when the goods are delivered as this is the point in time that the Group has a right to an amount of consideration that is unconditional.

2) Construction contracts

Customers provide construction contracts with specifications while the solar plants are still under construction. Because the customer controls the asset during the construction period, the Group recognizes revenue over time on the basis of the construction costs incurred to date as a proportion of the total estimated costs of the contract. The customer pays the fixed amount according to payment schedule. If the Group has recognized revenue, but not issued a bill, then the entitlement to consideration is recognized as a contract asset. The contract asset is transferred to receivables when the entitlement to payment becomes unconditional. For some variable considerations, accumulated experience is used to estimate the amount of variable consideration, using the expected value method.

If the Group cannot reasonably measure its progress towards complete satisfaction of the performance obligation of a construction contract, the Group shall recognize revenue only to the extent of the costs expected to be recovered.

Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management.

• 3)

Power electric revenue

The Group recognized its power electric revenue based on the actual electric units and electric rate.

(Continued)

26

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

(q) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

(ii) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(r) Share-based payment

The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.

For share-based payment awards with non-vesting conditions, the grant-date fair value of the sharebased payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

(s) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

The Group has determined that interest and penalties related to income taxes, including uncertain tax treatment, do not meet the definition of income taxes, and therefore accounted for them under IAS37.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

• (i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;

(Continued)

27

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

• (iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

• (i) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and

• (ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

• 1) the same taxable entity; or

• 2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

(t) Earnings per share

The Group discloses the Group’ s basic and diluted earnings per share attributable to ordinary shareholders of the Group. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Group divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Group divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares.

(u) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

(Continued)

28

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

The preparation of the consolidated financial statements in conformity with the IFRSs endorsed by the FSC requires management to make judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the following period.

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is as follows:

• (a) Judgment of whether the Group has substantive control over its investees

The Group are not controlling shareholder to the associates and it also cannot obtain more than half of the voting rights at board of directors and a shareholders’ meeting. Therefore, it is determined that the Group has significant influence on its associates.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows:

• (a) Valuation of inventories-construction in progress

The Group evaluatde the completion progress of each power plant project and additional costs needed to be invested as of the reporting date and stated at the lower of cost or net realizable value. Due to market environment、 government policy and business strategy, there may be significantt changes in the net realizable value of inventories.

(b) Impairment of non-financial assets

In the process of evaluating the potential impairment of assets , the Group is required to make subjective judgments in determining the independent cash flows, useful lives, expected future income and expenses related to the specific asset groups considering of the nature of the industry. Any changes in these estimates based on changed economic conditions or business strategies could result in significant impairment losses or reversal in future years.

The Group’s accounting policies include measuring financial and non-financial assets and liabilities at fair value through profit or loss.The Group’ s financial instrument valuation group conducts independent verification on fair value by using data sources that are independent, reliable, and representative of exercise prices. This financial instrument valuation group also periodically adjusts valuation models, conducts back-testing, renews input data for valuation models, and makes all other necessary fair value adjustments to assure the rationality of fair value.

(Continued)

29

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group strives to use market observable inputs when measuring assets and liabilities. Different levels of the fair value hierarchy to be used in determining the fair value of financial instruments are as follows:

• (a) Level 1: quoted prices (unadjusted) in active markets for identifiable assets or liabilities.

• (b) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices).

• (c) Level 3: inputs for the assets or liability that are not based on observable market data.

For any transfer within the fair value hierarchy, the impact of the transfer is recognized on the reporting date. please refer to note 6(ac) for assumptions used in measuring fair value.

(6) Explanation of significant accounts:

• (a) Cash and cash equivalents

Cash on hand, checking accounts and demand deposits Time deposits Cash and cash equivalents listed in the consolidated cash flow statements	December 31, 2020 $ 4,927,839 26,819 $ 4,954,658	December 31, 2019
		6,368,716 2,600
		6,371,316

Please refer to note 6(ac) for the interest rate risk, and the fair value sensitivity analysis of the financial assets and liabilities of the Group.

• (b) Financial assets and liabilities at fair value through profit and loss

Financial assets mandatorily measured at fair value through profit or loss: Derivatives not used for hedging Foreign exchange swap contracts Long call options Put options Total Current Non-current Total	December 31, 2020 $ 2,714 182,058 - $ 184,772 $ 2,714 182,058 $ 184,772	December 31, 2019
		2,392 232,865 35,514
		270,771
		2,392 268,379
		270,771

(Continued)

30

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2020 Financial liabilities designated at fair value through profit or loss: Derivatives not used for hedging Forward exchange contracts $ 5,437 Short call options 99,741 Total $ 105,178 Current $ 5,437 Non-current 99,741 Total $ 105,178	December 31, 2019
	755 143,814
	144,569
	755 143,814
	144,569

(i) The short call options mentioned above derived from the loan contract signed with IMPA. Refer to note 6(o) for more details.

• (ii) The long call options listed above were derived from the issuance of preference shares by the Group, making an agreement with the preference shareholders that the Group has the right to buy back all shares on the specific date. Refer to note 6(p) for more details.

• (iii) The fair value of the derivatives mentioned above is estimated using the Black-Scholes options evaluation model, and the relevant parameters were as follows:

Shorting call options-MEGA 16 Estimated strike price Expected volatility Duration Discount rate Shorting call options-TEV II Estimated strike price Expected volatility Duration Discount rate	December 31, 2020 December 31, 2019 USD13,347 thousand dollars USD13,347 thousand dollars 33.0% 17.5% 2.00 years 3.00 years 7.2898% 6.50% USD13,822 thousand dollars USD13,822 thousand dollars 25% 18% 4.00 years 4.50 years 7.2898% 6.50%

(Continued)

31

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Longing call options-MEGA 16 Estimated strike price Expected volatility Duration Discount rate Longing call options-TEV II Estimated strike price Expected volatility Duration Discount rate	December 31, 2020 December 31, 2019 USD656 thousand dollars USD656 thousand dollars 33.0% 17.5% 2.00 years 3.00 years 7.2898% 6.50% USD704 thousand dollars USD704 thousand dollars 27% 18% 3.50 years 4.50 years 7.2898% 6.50%

• (iv) The put options derived from an agreement between the Group and associate company Clean Focus Yield Limited (CFY) stating that 100% of the shares held can be sold back to CFY under certain conditions. The Group has executed the option in January of 2020. Please refer to note 6(g) for more details.

• (v) The Group entered into such foreign exchange forward contracts and cross-currency swap contracts to mitigate risks that arises from exposure to exchange rate risk in business operations. The following derivative instruments, without the application of hedge accounting, were classified as mandatorily measured at fair value through profit or loss and held-fortrading financial liabilities:

December 31, 2020 Foreign exchange swap contracts Selling Forward exchange contracts December 31, 2019 Foreign exchange swap contracts Selling Forward exchange contracts	Currency USD/NTD EUR/USD USD/NTD EUR/USD	Maturity Date Contract Amount (in Thousands) February 9, 2021~ March 22, 2021 USD20,000/ EUR564,600 January 4, 2021~ April 6, 2021 EUR6,900/ USD8,313 January 21, 2020 USD22,000/ NTD661,573 January 17, 2020 NTD3,000/ USD3,339

• (vi) Financial instruments revalued at fair value through profit and loss were as follows:

Revaluation of derivatives listed in profit and loss

(Continued)

32

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (c) Financial assets at fair value through other comprehensive income

Equity instrument measured at fair value through other comprehensive income: Domestic investments Listed ordinary shares Unlisted ordinary shares Overseas investments - unlisted ordinary shares Total Current Non-current Total	December 31, 2020 $ 328,498 47,699 15,292 $ 391,489 $ 114,715 276,774 $ 391,489	December 31, 2019
		2,428,875 76,595 20,426
		2,525,896
		114,414 2,411,482
		2,525,896

• (i) The Group’s equity instruments are not held for trading, therefore has been designated at fair value through other comprehensive income.

• (ii) Please refer to note 13(a) for details on the above mentioned equity instruments and fair value, among which the shares of ThinTech Materials Technology Co., Ltd. (“ TTMC” ) were privately placed and its ordinary shares are subject to transfer restrictions in accordance with Article 43-8 of the Securities and Exchange Act.

• (iii) The Group recognized dividend income of $89,028 thousand and $75,153 thousand for the years ended December 31, 2020 and 2019, respectively, from the financial assets designated at fair value through other comprehensive income.

• (iv) Due to the changes in strategic layout in 2020, the Group sold parts of financial assets at fair value through other comprehensive income for $2,241,455 thousand, and the accumulated disposal gain was $534,159 thousand. Therefore, the Group transferred this account from other equity to retained earnings. The Group did not dispose any strategic investments in 2019. During the period, the accumulated gains and losses were not transferred into equity.

• (v) For credit risk and market risk, please refer to note 6(ab).

• (vi) The financial assets mentioned above had been pledged as collateral for long-term borrowings; please refer to note 8.

(Continued)

33

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (d) Financial assets at amortized cost

Convertible preference shares - Phanes Holding Inc.	December 31, 2020 $ 140,475	December 31, 2019
		149,975

• (i) The Group assessed its expected cash flows until maturity, which covers the entirety of interests and principle, and therefore, measured at amortized costs.

• (ii) Phanes Holding Inc. a project developer, is an overseas unlisted company. In order to build a long-term cooperative strategic relationship with Phanes Holding Inc. the Group subscribed to the entire five-year callable preference shares (C-Shares III) for 24,000 shares, at par value, amounting to USD5,000 thousand.

• (iii) The above preference shares carried no voting rights and no dividend rights. Instead they carried preferential rights on dividends specified at 7% of the par value. The preference shares can be redeemed prior to, or later than, the maturity date under the agreement between the Group and Phanes Holding Inc. For the years ended December 31, 2020 and 2019, the interest income of convertible preference shares amounted to $8,180 thousand and $9,541 thousand, respectively. As of December 31, 2020 and 2019, the interest receivables, classified as other receivables from related parties, amounted to $29,176 thousand and $20,997 thousand, respectively.

• (iv) Credit risk

The Group considers the debtor’s current financial situation and the industry’s prospects to derive at the 12-months or lifetime Expected Credit Loss (ECL) of the debt instrument. The Group came to the conclusion that the debtor’s credit risk is low and has sufficient ability to pay off the contracted cash flow, and therefore, there was no ECL rate.

• (v) As of December 31, 2020 and 2019, financial assets at amortized cost had not been pledged as security.

• (e) Notes and accounts receivables

Notes and accounts receivable Accounts receivable from related parties Less: Loss Allowance	December 31, 2020 $ 2,654,828 206,908 (575,989) $ 2,285,747	December 31, 2019 2,653,904 523,933 (602,251)
		2,575,586

(Continued)

34

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, accounts receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provisions were determined as follows:

Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due 91 to 120 days past due 121 to 150 days past due 151 to 180 days past due More than 181 days past due Total Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due 91 to 120 days past due 121 to 150 days past due 151 to 180 days past due More than 181 days past due Signs of Counterparty Default Total	December 31, 2020	December 31, 2020
	Gross carrying amount Weighted- average loss rate $ 1,464,649 0%~0.09% 230,088 0%~0.49% 76,778 0%~1.52% 17,015 0%~2.83% 25,008 0%~7.91% 3,417 0%~17.05% 6,220 0%~54.55% 1,038,561 0%~100% $ 2,861,736 December 31, 2019		Loss allowance provision
			825 653 1,132 354 - - 1,092 571,933
			575,989
		Weighted- average loss rate 0%~0.22% 0%~4.09% 0%~4.10% 0%~11.53% 0%~19.89% 0%~27.55% 0%~26.35% 0%~100% 100%	Loss allowance provision
			938 6,451 2,443 3,466 3,789 589 845 5,669 578,061
			602,251

(Continued)

35

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The movement in the allowance for notes and trade receivables were as follows:

Balance at January 1 Impairment loss recognized (reversed) Amounts written off Foreign exchange gains (loss) Balance at December 31	For the years ended December 31, 2020 2019 $ 602,251 622,654 (23,661) (6,593) (2,531) (3,963) (70) (9,847) $ 575,989 602,251
	2020 $ 602,251 (23,661) (2,531) (70) $ 575,989

The aforementioned notes and accounts receivables of the Group had not been pledged as collateral as of December 31, 2020 and 2019.

• (f) Inventories

Construction in progress Finished goods and products Raw materials Work in progress	December 31, 2020 $ 1,965,203 1,093,257 386,667 71,955 $ 3,517,082	December 31, 2019
		2,533,566 1,769,145 606,876 34,993
		4,944,580

• (i) The construction in progress listed above is the construction cost incurred to build the power plant that the Group is intending to sell.

• (ii) The details of the cost of sales were as follows:

Cost of goods sold Unallocated production overheads Write-down and retirement of inventories Others Total	For the years ended December 31, 2020 2019 $ 11,974,478 17,284,075 692,238 1,767,618 488,716 77,179 288,282 (7,229) $ 13,443,714 19,121,643
	2020 $ 11,974,478 692,238 488,716 288,282 $ 13,443,714

(iii) The inventories of the Group had been pledged as collateral, please refer to note 8.

(Continued)

36

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Investments accounted for using the equity method

Associates Joint ventures	December 31, 2020 $ 172,944 3,378 $ 176,322	December 31, 2019
		2,126,807 3,608
		2,130,415

• (i) Please refer to note 13(b) for list of investments, percentage of ownership and main activities.

• (ii) Associates

• 1) The Group held 28.67% of the equity of Clean Yield Focus (CFY). Both parties agreed to sell back all of the shares to CFY under certain terms and conditions, and the Group has executed the option in the first quarter of 2020, with the proceeds and gains on disposal of $1,649,963 thousand and $217,826 thousand, respectively, classified as other gains and losses; please refer to note 7.

• 2) The Group sold the 40% shares of Neo Cathay. for $705,876 thousand, the gain of disposal was $80,408 thousand, which was classified as other gain and loss.

• 3) The Group’s financial information on investments in individually insignificant associates accounted for using the equity method at the reporting date was as follows. This financial information was included in the consolidated financial statements:

Carrying amount of individually insignificant associates’ equity Attributable to the Group Net income(loss) Other comprehensive income(loss) Comprehensive income(loss)	December 31, 2020 December 31, 2019 $ 172,944 2,126,807 For the years ended December 31, 2020 2019 $ (31,686) (124,151) (9,699) (1,099) $ (41,385) (125,250)	December 31, 2020 December 31, 2019 $ 172,944 2,126,807 For the years ended December 31, 2020 2019 $ (31,686) (124,151) (9,699) (1,099) $ (41,385) (125,250)
	2020 $ (31,686) (9,699) $ (41,385)	2020

• (iii) The Group’s financial information on investments in individually insignificant joint ventures accounted for using the equity method was as follows:

The carrying amount of investments in the individually insignificant associates	December 31, 2020 $ 3,378	December 31, 2019
		3,608

(Continued)

37

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Amount of individually insignificant associates’ interests attributable to the Group: Net income(loss) Other comprehensive income(loss) Comprehensive income(loss)	For the years ended December 31, 2020 2019 $ - (63,438) - - $ - (63,438)
	2020
	$ - - $ -

(iv) The investments accounted for using the equity method have been pledged as collateral for bank loans, refer to note 8.

(h) Loss of control of subsidiaries

For the years ended December 31, 2020 and 2019, the Group sold all of its shares in subsidiaries and loss control of them, with the considerations of $264,490 thousand and $747,551 thousand, the disposal gains (loss) are $(93,374) thousand and $212,773 thousand, respectively, which were included in other gains and losses.

Other current assets Property, plant and equipment (deducting unrealized profit) Right of use asset Other assets Long term loans Current liability Lease liability Non-current liability Carrying amount of subsidiary’s net assets	For the years ended December 31, 2020 2019 $ 163,339 5,653 189,416 719,242 154,196 - 30,957 - 21,566 19,458 - (192,767) (6,362) - (194,801) - (447) - $ 357,864 551,586	For the years ended December 31, 2020 2019 $ 163,339 5,653 189,416 719,242 154,196 - 30,957 - 21,566 19,458 - (192,767) (6,362) - (194,801) - (447) - $ 357,864 551,586
	2020 $ 163,339 189,416 154,196 30,957 21,566 - (6,362) (194,801) (447) $ 357,864
		551,586

(Continued)

38

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Property, plant and equipment

The movements of cost, depreciation and impairment loss of the property, plant and equipment of the Group were as follows:

Cost: Balance on January 1, 2020 Additions Disposals Reclassification Reclassify to investment property Reclassify to lease property Effect of changes in foreign exchange rates Balance on December 31, 2020 Balance on January 1, 2019 Additions Disposals Reclassification Effect of changes in foreign exchange rates Balance on December 31, 2019 Accumulated depreciation Balance on January 1, 2020 Additions Impairment loss Disposal Reclassification Reclassify to investment property Reclassify to lease property Effect of changes in foreign exchange rates Balance on December 31, 2020 Balance on January 1, 2019 Additions Impairment loss Disposal Effect of changes in foreign exchange rates Balance on December 31, 2019 Carrying amounts: Balance on December 31, 2020 Balance on January 1, 2019 Balance on December 31, 2019	Land $ 1,541,409 - - - (747,300) - (6,787) $ 787,322 $ 1,537,278 - - - 4,131 $ 1,541,409 $ - - - - - - - - $ - $ - - - - - $ - $ 787,322 $ 1,537,278 $ 1,541,409	Buildings 8,176,387 11,538 (1,420,357) 282,661 (2,510,319) - (26,735) 4,513,175 8,154,114 - - - 22,273 8,176,387 1,952,218 341,129 295,308 (535,678) 187,415 (586,275) - (2,169) 1,651,948 1,175,351 378,248 398,250 - 369 1,952,218 2,861,227 6,978,763 6,224,169	Machinery and equipment 21,497,167 169,905 (3,174,559) 878,878 - (106,962) (96,057) 19,168,372 20,796,539 214,093 (85,471) 568,001 4,005 21,497,167 16,886,978 1,222,099 1,043,862 (2,389,693) 739,004 - (106,962) (30,687) 17,364,601 13,379,415 2,423,116 1,202,159 (68,117) (49,595) 16,886,978 1,803,771 7,417,124 4,610,189	Other equipment 7,193,271 34,690 (541,707) 1,176,307 - (24,927) (318,476) 7,519,158 7,635,112 543,098 (1,123,335) 79,160 59,236 7,193,271 1,121,904 417,963 608,012 (300,215) 838,781 - (24,927) (63,054) 2,598,464 1,055,361 447,394 16,960 (401,213) 3,402 1,121,904 4,920,694 6,579,751 6,071,367	Equipment to be inspected and construction in progress 874,195 9,751 (135,994) (468,303) - - (57,008) 222,641 2,964,541 (123,337) (334) (1,955,790) (10,885) 874,195 256,371 - 30,334 (100,430) - - - (41,609) 144,666 257,949 - - - (1,578) 256,371 77,975 2,706,592 617,824	Total 39,282,429 225,884 (5,272,617) 1,869,543 (3,257,619) (131,889) (505,063)
						32,210,668
						41,087,584 633,854 (1,209,140) (1,308,629) 78,760
						39,282,429
						20,217,471 1,981,191 1,977,516 (3,326,016) 1,765,200 (586,275) (131,889) (137,519)
						21,759,679
						15,868,076 3,248,758 1,617,369 (469,330) (47,402)
						20,217,471
						10,450,989
						25,219,508
						19,064,958

(Continued)

39

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Impairment loss

The management implemented the regular impairment evaluating evaluation and testing on 2020 and 2019 December, considering the specific non-financial asset’ s business purpose, usage status, and usage methods, the assets are classified according to the cash-generating unit, and the expected recoverable amount is estimated based on the individual cash-generating unit.

The Group expects to recover the value of assets through selling the assets, which estimated on selling price minus the disposal cost, as the best estimate of the recoverable amount, and the rest assets are determined on the value in use. The value in use is calculated based on the pretax cash flow forecast of the financial budget, which approved by the management of each cash-generating unit. The pre-tax discount rate of estimated value in 2020 and 2019 were 7.2898%~8.15% and 9.04%, respectively. It is an after-tax ratio measured based on the interest rate of a Ten-year government bonds in the same currency as the cash flow, and the risk premium is adjusted to reflect the increased risk of general investment in equity and the specific systemic risk of cash-generating units.

According to the future annual financial forecasts of each cash-generating unit, the Group estimated the carrying amount of the property, plant and equipment to be higher than its recoverable amount, resulting in the recognition of impairment losses amounting to $1,977,516 thousand and $1,617,369 thousand, respectively, which were included in the non-operating income and expenses of the consolidated income statement.

(ii) Collateral

Property, plant and equipment were pledged as collateral for long term borrowings and shortterm borrowings. Please refer to note 8.

(iii) Reclassify to investment property

During 2020, some building was transferred to investment property, because it were no longer used by the Group and it was decided that the building would be leased to a third party. The valuation techniques and significant unobservable inputs used in measuring the fair value of the building at the date of transfer were the same as those applied to investment property at the reporting date, refer to note 6(k).

(j) Right-of-use assets

Cost: Balance at January 1, 2020 Additions Deductions Reclassification to investment property Effect of movement in exchange rates Balance at December 31, 2020	Land $ 790,905 1,135 (116,060) (75,293) 13 $ 600,700	Building 203,891 997 (152,301) - (7,537) 45,050	Machinery and equipment 46,958 564 (46,727) - (208) 587	Other equipment 35,710 7,645 (20,703) - 4,182 26,834	Total 1,077,464 10,341 (335,791) (75,293) (3,550) 673,171 (Continued)

40

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Land Balance at January 1, 2019 $ - Effects of retrospective application 790,930 Deductions - Effect of movement in exchange rates (25) Balance at December 31, 2019 $ 790,905 Accumulated depreciation and impairment losses: Balance at January 1, 2020 $ 44,832 Additions 44,570 Deductions (6,565) Reclassification to investment property (5,378) Effect of movements in exchange rates 1 Balance at December 31, 2020 $ 77,460 Balance at January 1, 2019 $ - Additions 44,832 Effect of movements in exchange rates - Balance at January 1, 2019 $ 44,832 Carrying amount: Balance at December 31, 2020 $ 523,240 Balance at December 31, 2019 $ 746,073	Building - 236,022 (25,359) (6,772) 203,891 38,717 22,660 (38,801) - (1,413) 21,163 - 41,490 (2,773) 38,717 23,887 165,174	Machinery and equipment - 48,774 - (1,816) 46,958 5,799 3,508 (8,760) - (25) 522 - 6,016 (217) 5,799 65 41,159	Other equipment - 35,710 - - 35,710 7,002 6,304 (7,997) - 220 5,529 - 7,219 (217) 7,002 21,305 28,708	Total - 1,111,436 (25,359) (8,613) 1,077,464 96,350 77,042 (62,123) (5,378) (1,217) 104,674 - 99,557 (3,207) 96,350 568,497 981,114

(k) Investment property

The investment property includes the property owned by the Group. The leases of investment properties contain an initial non-cancellable lease term of 3 to 10 years. Some leases provide the lessees with options to extend at the end of the term.

(Continued)

41

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The details of investment property are as follows:

Properties Land Buildings Cost or deemed cost: Balance at January 1, 2020 $ - - Reclassification from property, plant and equipment 747,300 2,510,319 Reclassify from right-of-use assets - - Balance at December 31, 2020 $ 747,300 2,510,319 Accumulated depreciation and impairment loss: Balance at January 1, 2020 $ - - Reclassification from property, plant and equipment - 586,275 Reclassify from right-of-use assets - - Balance at December 31, 2020 $ - 586,275 Carrying amount: Balance at December 31, 2020 $ 747,300 1,924,044 Fair value: Balance at December 31, 2020	Right-of-use asset Land Total - - - 3,257,619 75,293 75,293 75,293 3,332,912 - - - 586,275 5,378 5,378 5,378 591,653 69,915 2,741,259 $ 3,223,643	Total
		- 3,257,619 75,293
		3,332,912
		- 586,275 5,378
		591,653
		2,741,259

Since the investment property listed above lacks comparable market information, its fair value was determined by the management authority of the Company with reference to the latest transaction price in the neighboring area where the individual investment property is located, and is measured in accordance with the third-level fair value.

Investment property includes several commercial real estates leased to others. Each lease contract includes the original irrevocable period of three to ten years, and the subsequent lease period is negotiated with the lessee, and no contingent rent is collected. Please refer to note 6(p) for other related information.Investment property comprises a number of commercial properties that are leased to third parties. Each of the leases contains an initial non-cancellable period of three to ten years. Subsequent renewals are negotiated with the lessee and no contingent rents are charged. See note 6(s) for further information.

At December 31, 2020, the investment property had been pledged as collateral for long-term borrowings; please refer to note 8.

(Continued)

42

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(l) Intangible assets

(i) The Group intangible costs, accumulated amortization and impairments loss were as follows:

Cost: Balance at January 1, 2020 Disposals Effect of movement in exchange rates Balance at December 31, 2020 Balance at December 31, 2019 Additions Reclassification Effect of movement in exchange rates Balance at December 31, 2019 Accumulated amortization and impairment losses: Balance at January 1, 2020 Disposals Impairment loss Amortization for the year Effect of movement in exchange rates Balance at December 31, 2020 Balance at January 1, 2019 Amortization for the year Impairment loss Effect of movement in exchange rates Balance at December 31, 2019 Carrying value: Balance at December 31, 2020 Balance at December 31, 2019	Contract with Consultants $ 154,384 - (9,779) $ 144,605 $ 158,219 - - (3,835) $ 154,384 $ 154,384 - - - (9,779) $ 144,605 $ 22,613 10,495 125,866 (4,590) $ 154,384 $ - $ -	Contract with Customers 111,352 (34,483) (3,473) 73,396 39,952 - 74,232 (2,832) 111,352 7,640 (3,448) - 3,457 771 8,420 2,587 5,246 - (193) 7,640 64,976 103,712	Other 76,712 - (2,137) 74,575 76,146 564 - 2 76,712 65,067 - 591 5,443 (1,867) 69,234 46,155 7,192 12,038 (318) 65,067 5,341 11,645	Total 342,448 (34,483) (15,389) 292,576 274,317 564 74,232 (6,665) 342,448 227,091 (3,448) 591 8,900 (10,875) 222,259 71,355 22,933 137,904 (5,101) 227,091 70,317 115,357

(Continued)

43

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (ii) Contract with consultants are the long-term maintenance and management of power plants.

• (iii) Contracts with customers are long term electricity sales contracts signed with different local power companies, wherein they are expected to generate revenue from electricity sales in the next 20 years.

• (iv) The Group assessed the future requirements on certain parts of its intangible assets, wherein the carrying value is greater than the recoverable amount; therefore, the Group recognized the impairment losses of $591 thousand and $137,904 thousand, recognized as other income and expense in 2020 and 2019, respectively.

• (v) The intangible assets of the Group had not been pledged as collateral as of December 31, 2020 and 2019.

• (m) Short-term borrowings

Secured bank loans Unsecured bank loans Total Unused credit lines Range of interest rates	December 31, 2020 $ 93,837 2,226,165 $ 2,320,002 $ 2,974,000 0.95%~1.86%	December 31, 2019
		244,459 2,744,339
		2,988,798
		2,700,284
		1.73%~6.27%

Please refer to Note 8 for details of the guarantee situation of the consolidated company using assets to set mortgage for bank loans.

• (n) Short-term notes and bills payable

Commercial paper payable Less: discounts on commercial paper payable	December 31, 2020 $ 174,900 (90) $ 174,810	December 31, 2019 416,100 (642) 415,458

(Continued)

44

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Long-term liabilities

• (i) Long-term borrowings

Secured bank loans 10.13 billion syndicated loan from First Bank 4.5 billion syndicated loan from First Bank FMO & DEG Bank Cathay Bank KGI Bank Loan CTBC bank loan IMPA Machinery and equipment financing from EQUVO Pte. Ltd., Taiwan Branch (Singapore) Other financing loan Unsecured bank loans King’s Town Bank 0.5 billion syndicated loan from First Bank Chailease International Financial Service. Co., Ltd. Inventories repurchase financing loans Other financing loan Less: Current portion Total Unused credit lines Range of interest rates	December 31, 2020 $ 4,562,171 2,267,560 953,376 605,254 250,000 - 598,541 - 424,595 430,587 112,500 85,959 69,069 122,800 10,482,412 (5,366,741) $ 5,115,671 $ 1,276,100 0.90%~7.82%	December 31, 2019 9,803,460 2,327,560 1,071,422 678,119 250,000 171,374 620,998 488,134 517,778 904,916 225,000 143,061 168,837 127,478 17,498,137 (5,721,202) 11,776,935 506,040 1.49%~7.82%

• 1) The long-term loan contracts listed above will expire in November 2043.

• 2) Compliance with loan contracts

• a) The Group entered into a syndicated loan contract with FMO Bank and DEG Bank. According to the terms and conditions on the contract, it requires the borrower, Electronic J.R.C Srl (JCR), to maintains certain financial ratios based on their annual and semiannual consolidated financial reports, wherein the balance of the special reserve account should not be below USD$3,000 thousand.

(Continued)

45

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• b) The Group entered into a middle-to-long-term guaranteed loan from Cathay Bank. According to the terms and conditions of the contract, it requires that the borrower, GES USA, to maintain certain financial ratios during the credit period.

• c) The Group entered into a long-term loan agreement with Far Eastern International Bank. According to the terms and conditions on the contract, it requires the borrower, Yong Liang, to maintain certain financial ratios based on their annual and semiannual financial reports.

As of December 31, 2020 and 2019, the Group did not breach any of the terms stated above.

• d) The Group entered into $10.13 billion and $500 million syndicated loans with First Bank. According to the terms and conditions on the contract, it requires the Group to maintain certain financial ratios based on its annual and semiannual consolidated financial reports during the credit period. Although the Interest Protection Multiples (IPM) and the net tangible assets did not meet the above requirements, no breach of contract was committed. Instead, the Group will only have to the pay compensation fees to all joint credit banks each month until the next utilization date or the base date of interest rate adjusted to improve the financial ratio.

• e) The Group entered into a $4.5 billion syndicated loan with First Bank. According to the terms and conditions on the contract, it requires Utech’s to maintain certain financial ratios based on its annual financial reports during the credit period. The abovementioned syndicated loans will expire on September 30, 2021. The financial ratio before the loan due date need not be reviewed.

• f) The Group entered into a syndicated loan with CTBC Bank, wherein the Group is a joint guarantor. According to the terms and conditions of the contract, it requires Gintech (Thailand) Limited (Gintech (Thailand)) and the Group to maintain certain financial ratios. The Group failed to comply with the relevant regulations on December 31, 2019 and June 30, 2019. However, it was still in the improvement period, therefore, no breach of contract was committed. Instead, the Group will only need to pay the additional interest in accordance with the contract. The loan had already repaid in the second quarter of 2020.

• g) The Group entered into middle-to-long-term guaranteed loan with CATHAY BANK. According to the terms and conditions on the contract, it requires the borrower, MEGAEIGHT and MEGATWELVE to maintain certain financial ratios based on its annual financial reports during the credit period. Although the ratios did not meet the above requirements, the Group has increased the compensation fund in accordance to the terms, and no breach of contract was committed.

(Continued)

46

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Other loan agreements

The Group signed two long term contracts, with a duration of 25 year, with IMPA in December of 2017 and June of 2018. According to the terms and conditions of the loan, IMPA has the right to purchase all the shares of both GES AC, a company owned by the Group through MEGA 16, and AC GES, a company owned by the Group through TEV Solar, starting from December 2022 to June 2024. Therefore, the contract includes an embedded derivative (selling a call option) that is not closely related to the main contract and is recognized as a financial liability designated at fair value through profit and loss; please refer to note 6(b) and (ab). According to the contracts, it restricts part of the consolidated entities to transfer the shares before the derivatives instrument expires; please refer to note 13(b).

The interest rates of MEGA 16 and TEV II borrowing from IMPA were 4.25% and 4.75% respectively. After separating the short call option from the host contract, the adjusted loan interest rates became 11.08% and 11.38%, respectively.

(ii) For the collateral for borrowings, please refer to note 8.

(p) Preference share liabilities

Preference share liabilities
Class A preference shares Less: Current portion Total	December 31, 2020 $ 28,282 (15,063) $ 13,219	December 31, 2019 44,260 (16,082)
		28,178

The Group’s subsidiaries, MEGA 16 and TEV II, have issued Class A preference shares through GES USA and GES AC respectively. Relevant information was as follows:

Issuance date Total amount issued percentages of Class A preference shares held by shareholders Issuance terms - Voting rights - Dividend rights

issued by MEGA 16 issued by TEV II 2017.12 2018.12 USD11,920 thousand dollars USD10,051 thousand dollars 32.41% 33.81% Yes Yes Shareholders will be given priority to receive cumulative cash dividend of 0.65% with a monthly fixed Asset Management Fee each quarter and are entitled to 99% of profits sharing before expiration date December 2022. Shareholders will be given priority to receive cumulative cash dividend of 0.675% with a monthly fixed Asset Management Fee each quarter and are entitled to 99% of sharing earned before expiration date June 2024.

(Continued)

47

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

- Others	issued by MEGA 16 issued by TEV II Starting from December 2022, the Group would be able to repurchase the entirety of Class A shares at contract price. Starting from June 2024, the Group would be able to repurchase the entirety of Class A shares at contract price.

According to the above clauses, the Group has the financial obligation to make regular fixed payments to Class A preference shares shareholders. Therefore, the liabilities are separated and recognized as preference shares liabilities at the time of initial recognition.

In addition, the Group has the right to purchase all the Class A preference shares from the shareholders on a specified date. The above right is an embedded derivative call option, which is a financial asset designated at fair value through profit and loss at initial recognition, that is not closely related to the host contract. Please refer to note 6 (b) and (ab) for more details.

(q) Lease liabilities

The Group leases certain land, buildings and transportation equipment for operating with lease terms of 3 to 20 years. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms. Therefore, some of these arrangements contain renewal options.

Carrying amount of the lease liabilities of the Group were as follows:

Current Non-current	December 31, 2020 $ 50,913 $ 605,021	December 31, 2019
		65,778
		952,521

For the maturity analysis, please refer to note 6(ab) financial instruments.

The amounts recognized in profit or loss were as follows:

		For the years ended	For the years ended
		December 31,
		2020	2019
Interest on lease liabilities	$	28,198	34,104
Variable lease payments not included in the measurement of lease	$	14,285	6,440
liabilities
Expenses relating to short-term leases	$	17,742	20,725
Expenses relating to leases of low-value assets, excluding short-
term leases of low-value assets	$	2,708	7,909

(Continued)

48

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The amounts recognized in the statement of cash flows for the Group was as follows:

Total cash outflow for leases (r) Provisions Balance at January 1, 2020 Provisions made during the year Provisions reversed during the year Effect of exchange rate changes Balance at December 31, 2020 Balance at January 1, 2019 Provisions made during the year Provisions used during the year Provisions reversed during the year Effect of exchange rate changes Balance at December 31, 2019	2020 $ 115,253 Warranties Onerous contract $ 176,069 - 17,699 175,916 (104,831) - 18 - $ 88,955 175,916 $ 305,138 - 50,384 - (52) - (179,236) - (165) - $ 176,069 -	2019
		94,544 Total 176,069 193,615 (104,831) 18 264,871 305,138 50,384 (52) (179,236) (165) 176,069

(i) The Group’s provision is mainly related to product sales, wherein the estimate was based on historical warranty trends and may vary as a result of the entry of new materials, altered manufacturing processes or other events affecting the product quality.

(ii) Onerous contract

The Group’s provision for onerous contract liabilities was due to the signing of a long term purchase contract with the silicon raw material supplier. According to the contract, the Group purchases material at a fixed price and deducts the advance payment. In response to fluctuations in the spot market price, the Group has recognized the relevant liabilities, accounted as operating cost.

(s) Operating lease

The Group leases out its investment property. The Group has classified these leases as operating leases, because it does not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Please refer to note 6(k) sets out information about the operating leases of investment property.

(Continued)

49

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date are as follows:

Less than one year One to five years More than five years Total undiscounted lease payments	December 31, 2020
	$ 242,060 676,275 14,363 $ 932,698

Rental income from investment properties was 48,303 thousand in 2020.

(t) Employee benefits

The Group allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. The total periodic pension costs of other subsidiaries were recognized as current expenses in accordance with the local regulations of their respective jurisdictions where they are domiciled.

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $52,734 and $76,693 for the years ended December 31, 2020 and 2019, respectively.

(u) Income Taxes

(i) Components of income tax of the Group were as follows:

Current tax expense Deferred tax expense Income tax expense	For the years ended December 31,	For the years ended December 31,
	2020 $ 11,651 415,224 $ 426,875	2019
		58,809 3,824
		62,633

(ii) For the years ended December 31, 2020 and 2019, there was no income tax recognized in other comprehensive income.

(Continued)

50

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Reconciliation of income tax and profit before tax for 2020 and 2019 was as follows:

Profit excluding income tax Income tax using the Company’s domestic tax rate Effect of tax rates in foreign jurisdiction Tax effect of permanent differences Change in unrecognized deferred tax asset Temporary differences (recognized)reversed Others Total	For the years ended December 31, 2020 2019 $ (5,735,432) (5,706,556) $ (1,736,488) (1,141,312) 33,413 11,138 246,947 212,350 1,881,004 703,968 - 275,213 1,999 1,276 $ 426,875 62,633
	2020 $ (5,735,432) $ (1,736,488) 33,413 246,947 1,881,004 - 1,999 $ 426,875

(iv) Deferred tax assets and liabilities

• 1) Unrecognized deferred tax assets and liabilities

Deferred tax assets have not been recognized in respect of the following items:

Unrecognized deferred tax assets Tax losses Tax effect of deductible Temporary Differences Total	December 31, 2020 $ 3,069,427 2,070,789 $ 5,140,216	December 31, 2019
		3,200,744 1,846,213
		5,046,957

The Group have not recognized any deferred tax liabilities in December 31, 2020 and 2019.

Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom.

(Continued)

51

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for 2020 and 2019 were as follows:

Deferred tax asset Balance on January 1, 2020 Recognized in profit or loss Balance on December 31, 2020 Balance on January 1, 2019 Recognized in profit or loss Balance on December 31, 2019 Deferred tax liabilities Balance on January 1, 2020 Recognized in profit or loss Balance on December 31, 2020 Balance on January 1, 2019 Recognized in profit or loss Balance on December 31, 2019	Investment credits $ 11,773 (11,773) $ - 11,773 - $ 11,773 Unrealized exchange gain or loss	Allowance for inventory valuation loss 1,398 (1,398) - 1,756 (358) 1,398 Unrealized gains on financial instruments at fair value through profit or loss 35,156 (871) 34,285 29,605 5,551 35,156	Depreciation and impairment loss of property, plant and equipment 5,516 (5,516) - 8,602 (3,086) 5,516 Gain on disposal of subsidiaries at a percentage different from its existing ownership percentage 7,670 2,606 10,276 6,206 1,464 7,670	Loss carryforwards and other 1,037,863 (397,939) 639,924 1,054,238 (16,375) 1,037,863 Other 4,906 (3,137) 1,769 8,116 (3,210) 4,906	Total 1,056,550 (416,626) 639,924 1,076,369 (19,819) 1,056,550 Total 47,732 (1,402) 46,330 63,727 (15,995) 47,732
	$ - - $ - 19,800 (19,800) $ -

The Group’s tax returns for the years through 2018 were assessed by the National Tax Bureau.

• (v) Capital and other equity

• (i) Ordinary shares

Authorized share capital Issued share capital Total shares issued	December 31, 2020 $ 36,000,000 $ 26,650,863 $ 2,665,086	December 31, 2019
		32,000,000
		26,653,375
		2,665,338

Of the Group’s authorized shares, 80,000 thousand shares had been reserved for the issuance of employee share options.

(Continued)

52

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

A resolution was passed during the board meeting held on June 14, 2019 for the issuance of 150,000 thousand ordinary shares for cash under public subscription, with par value of $10 per share, issued at a discount of $6.52. The Group has received the approval from the Financial Supervisory Commission for its capital increase on August 13, 2019, with December 10, 2019 as the base date.

To meet the strategy of the Group, a resolution was passed during the general meeting of shareholders held on June 22, 2020 for a $4,000,000 thousand capital increase for cash. After the capital increase, the Group’s capital amounted to $36,000,000 thousand, with 3,600,000 ordinary shares, at a par value of $10 per share.

(ii) Information on capital surplus of the Group were as follows:

Share premium Changes in equity of the invested company accounted for using equity method Movements of additional paid-in capital arising from changes in equities of subsidiaries Difference between the consideration and carring amount of the subsidiaries that has not been increased in proportion to shareholding Restricted shares for employees	December 31, 2020 $ - 7,819 473 1,595 (2,010) $ 7,877	December 31, 2019 123,629 - - - (4,640) 118,989

Both resolutions were approved during the general meetings of the shareholders held on June 22, 2020 and June 17, 2019 to offset the deficit against the capital surplus of $123,629 thousand and $369,468 thousand, respectively.

(iii) Retained Earnings

According to the Articles of Incorporation, after tax earnings are initially used to offset cumulative losses, and 10% of the remainder is set aside as a legal reserve, except when the legal reserve of the Group reaches its paid in capital, setting aside or reversing special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Group’s board of directors as the basis for proposing a distribution plan, which will be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders.

In accordance with the Group Law, two thirds of authorized board of directors must be present, and more than half of the directors present will reach an agreement to distribute the dividends and bonuses or all or a portion of the legal reserve and capital reserve as stipulated in Item 11 of Article 241 of the Group Law in the form of cash, which is reported to the meeting of shareholders.

(Continued)

53

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Articles of Incorporation of the Group also stipulate a dividend policy that the issuance of share dividends takes precedence over the payment of cash dividends. In principle, cash dividends should be not less than 10% of total dividends distributed.

On June 22, 2020 and June 17, 2019, the Group has accumulated deficit and the Group’s board of directors resolved not to appropriate the earnings. Related information can be found on the Market Observation Post System website of the Taiwan Stock Exchange.

(iv) Treasury shares

The Group acquired treasury shares as result of merging Gintech Energy on October 1, 2018. Related information was as follows:

Related information was as follows:
Balance at December 31, 2020 Balance at December 31, 2019	Number of shares held (in thousands of shares) $ 1,883 $ 1,883	Carrying Amount 18,699 18,699	Market Price
			26,839
			14,427

The shares of the Group held by Utech has been treated as treasury shares. They were same as general shareholders except for the rights of cash injection and the rights of voting.

(w) Share-based payment

(i) Restricted stock

As of December 31, 2020, the Group's restricted share plan for employees are as follows:

Restricted share plan for employees

Grant date Number of shares granted (in thousand shares) Contract term Recipients Vested conditions Other conditions

Issued in 2017 Issued in 2019 Issued in 2020 Issued by the original Gintech Energy Issued by the original Solartech Energy September 15, 2017 November 11, 2019 August 11, 2020 October 1, 2018 October 1, 2018 1,855 2,205 795 1,225 4,896 2 years 2 years 2 years 0.5 years 2 years Employees of the former Neo Solar Power Corporation Employees of the Company Employees of the Company Employees of former Gintech Energy Employees of former Solartech Energy Still in service two years after the grant date Still in service two years after the grant date Still in service two years after the grant date Still in service two years after the grant date Still in service three years after the grant date - - - Taken on by the Group after the merging, with the outstanding amount of shares adjusted according to the exchange ratio on the merge date Taken on by the Group after the merging, with the outstanding amount of shares adjusted according to the exchange ratio on the merge date

(Continued)

54

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Relevant information of the new restricted employee shares of the Group is as follows:

Expressed in Thousands of shares

Outstanding at 1 January (number) Issued during the year (number) Vested during the year (number) Forfeited during the year (number) Outstanding at 31 December (number)	For the years ended December 31, 2020 2019 3,212 5,252 795 2,205 (1,475) (1,619) (1,046) (2,626) 1,486 3,212
	2020 3,212 795 (1,475) (1,046) 1,486

(ii) Information for the cost of share-based payment

Wages expense	For the years ended December 31, 2020 2019 $ 10,826 (301)
	2020 $ 10,826

(iii) Cash capital increase to retain employee stock options

A resolution was passed during the board meeting held on June 14, 2019 for the issuance of 150,000 thousand ordinary shares for cash under public subscription, with par value of $10 per share. The Group has received the approval from the Financial Supervisory Commission for its capital increase on August 13, 2019, with November 29, 2019 as the given date and December 10, 2019 as the base date.

Cash capital increase to retain employee stock options using the Black-Scholes model as follow:

Share price at grant date Exercise price Expected volatility (%) Expected life Expected dividend Risk-free interest rate (%)	Cash-settled
	$ 7.18 $ 6.52 % 34.35 21 days - % 0.45

Expected volatility is based on the Group’ s historical stock price information. The remuneration costs recognized by the Group in 2019 were 3,638 thousand.

(Continued)

55

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (x) Loss per share

Calculations on loss per share of the Group were as follow:

Calculations on loss per share of the Group were as follow:
		For the years ended
		December 31,
		2020	2019
Basic loss per share:
Loss attributable to ordinary shareholders of the Company	$	(6,139,015)	(5,686,065)
Weighted average number of ordinary shares outstanding (in
thousands of shares)		2,660,510	2,511,855
Loss per share	$	(2.31)	(2.26)

The ordinary share equivalents of the Company were not included in this calculation due to their anti-dilutive effects.

• (y) Revenue from contracts with customers

• (i) Disaggregation of revenue:

Revenue from contract with customers Revenue from sale of products Other revenues Revenue from contract with customers Revenue from sale of products Other revenues	For the years ended December 31, 2020	For the years ended December 31, 2020	For the years ended December 31, 2020	For the years ended December 31, 2020
	Solar energy System Other Total $ 10,480,454 - 19,779 10,500,233 550,531 1,459,465 805 2,010,801 $ 11,030,985 1,459,465 20,584 12,511,034 For the years ended December 31, 2019			Total
				10,500,233 2,010,801
				12,511,034
		System 1,815 2,519,447 2,521,262	Other 1,943 - 1,943	Total
				15,210,238 2,928,874
				18,139,112

• (ii) Contract balance

Contract balance
Notes and accounts receivable	December 31, 2020 $ 2,285,747	December 31, 2019 2,575,586	January 1, 2019
			3,134,295

(Continued)

56

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Contract assets Power plant construction contract Less: allowance for impairment Contract liabilities Sales of products Power plant construction contract Power plant sales contract	December 31, 2020 $ 175,041 - $ 175,041 $ 313,883 35,028 - $ 348,911	December 31, 2019 483,247 - 483,247 253,899 42,777 27,156 323,832	January 1, 2019
			96,617 -
			96,617
			201,876 102,876 40,500
			345,252

• 1) The details on accounts receivable and allowance for impairment, please refer to note 6(e).

• 2) The beginning balance of contract liabilities recognized as revenue at January 1 to December 31, 2020 and 2019 were $214,893 thousand and $274,822 thousand respectively.

• (z) Employee compensation and directors’ remuneration

According to the Articles of Association, once the Group has annual profit, it should appropriate no less than 3% of the profit to its employees and 2% or less to its directors and supervisors as remuneration. However, if the Group has accumulated deficits, the profit should be reserved to offset the deficit.

The recipients of above-mentioned remuneration may include employees of controlling or affiliated companies who meet certain conditions, and the relevant conditions and methods are authorized by the board of directors or by persons authorized by them.

Due to net loss for the years ended December 31, 2020 and 2019, the Group did not estimate its employees’, directors’ and supervisors’ remuneration.

• (aa) Non-operating Income and Expenses

• (i) Other income

Lease income Dividend income Other income	For the years ended December 31, 2020 2019 $ 103,569 27,277 89,028 75,153 154,892 138,804 $ 347,489 241,234	For the years ended December 31, 2020 2019 $ 103,569 27,277 89,028 75,153 154,892 138,804 $ 347,489 241,234
		2019
		27,277 75,153 138,804
		241,234

(Continued)

57

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Other gains and losses

Gain (loss) on foreign currency exchange Loss on disposal of property, plant and equipment and power facilities business Gain on disposals of investments Contract compensation losses Other	For the years ended December 31,	For the years ended December 31,
	2020 $ (16,639) (598,885) 204,861 (385,438) (6,866) $ (802,967)	2019
		25,950 - 212,773 - 43,859
		282,582

The Group failed to fulfill the procurement contract obligations with Supplier K. Therefore, Supplier K filed a lawsuit against the Group in the Hsin Chu District Court, requesting for the compensation of $500,000 thousand. On October 13, 2017, the Hsin Chu District Court ruled in favor of Supplier K, wherein the Group has to pay for the damages caused to Supplier K with interest. The Group disagreed with the decision made by the Hsin Chu District Court; therefore, filed an appeal to the Taiwan High Court. On January 27, 2021, Taiwan High Court ruled against the Group, in which the Group disagreed with this decision. Hence, the Group filed an appeal, wherein the case is still in progress. In order to protect the legal rights and interests of the Group, a lawyer has been appointed to settle the case. In addition, the Group has evaluated and recognized all the possible losses.

• (ab) Financial Instruments

(i) Credit risk

1) Credit risk exposure

The carrying amount of financial assets and contract assets represents the maximum amount exposed to credit risk

2) Concentration of credit risk

The Group has a large customer base, and is diversified across different industries and geographical locations, not related to each other, therefore, the concentration of credit risk is not large.

3) Credit risk of receivables and debt securities

The Group’s financial assets at amortized cost, accounts receivable and other receivables are all with low risk on the reporting date. Therefore, the Group measures the allowance for impairment based on the 12 months expected credit loss. Please refer to note 6(d) and (e) for relevant credit risk information.

(Continued)

58

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

December 31, 2020 Non-derivative financial liabilities Bank borrowings Short-term notes and bills payable Lease liabilities Non-interest bearing liabilities Derivative financial liabilities (Note) Inflow Outflow December 31, 2019 Non-derivative financial liabilities Bank borrowing Short-term notes and bills payable Lease liabilities Non-interest bearing liabilities	Contractual cash flows $13,980,834 174,900 869,451 2,510,349 (798,127) 800,849 $17,538,256 $22,233,975 416,100 1,429,016 2,594,319 $26,673,410	Within 1 year 7,944,618 174,900 68,040 2,510,349 (798,127) 800,849 10,700,629 8,963,705 416,100 88,037 2,594,319 12,062,161	1-2 years 3,421,963 - 65,233 - - - 3,487,196 3,906,722 - 110,353 - 4,017,075	2-3 years 270,403 - 63,938 - - - 334,341 6,453,209 - 106,241 - 6,559,450	Over 3 years
					2,343,850 - 672,240 - - -
					3,016,090
					2,910,339 - 1,124,385 -
					4,034,724

Note: The call option sold derives from the loan contract signed by the Group and IMPA (please refer to note 6(o) for more details). This financial liability is recognized at fair value (please refer to note 6(b)), and has been adjusted according to the real interest rate of the contract. The relevant cash flow also reflects the contractual cash flow of the bank loan, therefore it is not to be included in the cash flow from derivative financial instruments.

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(iii) Market risk

1) Currency risk

The Group’s significant exposure to foreign currency risk was as follows:

Financial assets Monetary items USD EUR CNY Non-Monetary items MYR	D	ecember 31, 2020	NTD 3,920,854 305,679 17,102 72,842	De	cember 31, 2019
	Foreign currency (in thousands)	Exchange rate 28.0950 34.5400 4.3220 6.7015		Foreign currency (in thousands) 191,455 4,183 11,007 12,310	Exchange rate NTD 29.9950 5,742,693 33.6200 140,632 4.3000 47,330 7.0380 86,638
	$ 139,557 8,850 3,957 10,870

(Continued)

59

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial liabilities Monetary items USD JPY	D	ecember 31, 2020	NTD 4,037,589 27,816	D	ecember 31, 2019
	Foreign currency (in thousands) 143,712 102,113	Exchange rate 28.0950 0.2724		Foreign currency (in thousands) 169,121 1,540,794	Exchange rate NTD 29.9950 5,072,784 0.2760 425,259

The Group’s exposure to currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts and other receivables, and accounts and other payables that are denominated in foreign currency. The weakening or strengthening of 1% on the above mentioned foreign currency against the New Taiwan Dollars would have decrease or increase the net profit (loss) before tax for the years ended 2020 and 2019 by $1,782 thousand and $4,326 thousand, respectively. The analysis assumes that all other variables remain constant. The analysis is performed on the same basis for the two periods.

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the years ended 2020 and 2019, foreign exchange gain (loss) (including realized and unrealized portions), please refer to note 6 (aa).

2) Interest rate risk

Please refer to the notes on liquidity risk management and interest rate exposure of the Group’s financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding liabilities with variable interest rates, the analysis is based on the assumption that the amount of liabilities outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 0.25% when reporting to management internally, which also represents the Group management’ s assessment of the reasonably possible interest rate change.

If the interest rate had increased / decreased by 0.25%, the Group’s net income would have decreased / increased by $18,983 thousand and $19,983 thousand for the years ended December 31, 2020 and 2019 with all other variable factors remaining constant. This is mainly due to the exposure of the fair value interest rate risk of the Group’ s variable interest rate deposit and loans.

In addition, the Group’ s financial assets and liabilities with fixed interest rate are measured at amortized cost. The profit and loss of financial instruments are unaffected by fluctuations in interest rate on the reporting date, therefore, no sensitivity analysis has been disclosed.

(Continued)

60

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Other market price risk

The Group’ s exposure to price risk on equity investments mainly arises from the investment of financial assets measured at fair value through other comprehensive income. If the price of the securities fluctuates on the reporting date (the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss), the impact on the consolidated income items are as follow:

Prices of securities at the reporting date Increasing 5% Decreasing 5%	For the years ended December 31, 2020 2019 $ 16,425 121,444 $ (16,425) (121,444)
	2020 $ 16,425 $ (16,425)

• 4) Fair value of financial instruments

• a) Fair value hierarchy

The Group’s financial assets and liabilities measured at fair value through profit and loss, financial assets and liabilities for hedging and financial assets measured at fair value through other comprehensive income are measured at fair value on a recurring basis. The carrying amount and fair value of various types of financial assets and liabilities (including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required) are listed as follows:

Financial assets at fair value through profit and loss Derivative financial assets Financial assets at fair value through other comprehensive income Listed domestic stocks Non-quoted equity instruments measured at fair value Subtotal		December 31, 2020	December 31, 2020	December 31, 2020
	Book value $ 184,772 $ 328,498 62,991 $ 391,489		Fair Value
		Level 1 - 169,038 - 169,038	Level 2 2,714 159,460 - 159,460	Level 3 182,058 - 62,991 62,991	Total 184,772
					328,498 62,991
					391,489

(Continued)

61

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets measured at amortized cost Cash and cash equivalent Accounts receivable (including related parties) Other receivables (including receivables from related parties) Financial assets measured at amortized cost Other financial assets Refundable deposits Financial liabilities at fair value through profit and loss Derivative financial liabilities Financial liabilities measured at amortized cost Long-term and short-term borrowings Short-term notes payable Accounts payable (including related parties) Lease liabilities Preference share liabilities Other financial liabilities			December 31, 2020	December 31, 2020	December 31, 2020
				Fair Value
			Level 1 -	Level 2 5,437	Level 3 99,741	Total 105,178

Financial assets at fair value through profit or loss Derivative financial assets Financial assets at fair value through other comprehensive income Listed domestic stocks Non-quoted equity instruments measured at fair value Subtotal		December 31, 2019	December 31, 2019	December 31, 2019
	Book value $ 270,771 $ 2,428,875 97,021 $ 2,525,896		Fair Value
		Level 1 - 2,287,336 - 2,287,336	Level 2 2,392 141,539 - 141,539	Level 3 268,379 - 97,021 97,021	Total 270,771
					2,428,875 97,021
					2,525,896

(Continued)

62

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets measured at amortized cost Cash and cash equivalent Accounts receivable (including related parties) Other receivables (including related parties) Financial assets measured at amortized cost Other financial assets Refundable deposits Financial liabilities at fair value through profit and loss Derivative financial liabilities Financial liabilities measured at amortized cost Long-term and short-term borrowings Short-term notes payable Accounts payable (including related parties) Lease liabilities Preference share liabilities Other financial liabilities			December 31, 2019	December 31, 2019	December 31, 2019
				Fair Value
			Level 1 -	Level 2 755	Level 3 143,814	Total 144,569

• b) Valuation techniques for financial instruments not measured at fair value

The Group’s valuation techniques and assumptions used for financial instruments not measured at fair value are as follows:

• i) Financial assets measured at amortized cost

If the quoted prices in active markets are available, the market price is established as the fair value. However, if quoted prices in active markets are not available, the estimated valuation or prices used by competitors are adopted.

• ii) Financial liabilities measured at amortized cost

If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

(Continued)

63

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• c) Valuation techniques for financial instruments measured at fair value

• i) Non-derivative financial instruments

If the financial instruments have a quoted price in an active market, the fair value should be determined on that price. The price quoted in major exchanges and over-the-counter trading are all considered basis for fair value determination for listed equity instruments.

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’ s- length basis. Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide.

The financial instruments held by the Group are distinguished according to the evaluation sources used to determine its fair value as follows:

• Financial instruments with an active market: including listed company stocks and fund beneficiary certificates, etc. The fair value of these instruments is determined by reference to their respective market quotes.

• Financial instruments without active market: Fair value is based on valuation techniques or reference counterparty quotes. The fair value obtained through evaluation techniques can refer to the current fair value of other financial instruments with similar conditions and characteristics, discounted cash flow method or other evaluation techniques, including calculations based on market information available on the date of the consolidated balance sheet.

ii) Derivative financial instruments

Measurement of the fair value of derivative instruments is based on the valuation techniques generally accepted by market participants such as the discounted cash flow or option pricing models; forward foreign exchange contracts are usually evaluated based on the current forward exchange rate, and the fair value of other types of derivative financial instruments are determined based on appropriate option pricing models (such as the BlackScholes model) or other evaluation methods.

(Continued)

64

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

d) Reconciliation of Level 3 fair values

The changes in Level 3 fair values for the years ended December 31, 2020 and 2019 are as follow:

Opening balance Total gains and losses recognized in profit and loss Total gains and losses recognized in other comprehensive income Reclassified Disposal/Redemption Effect of exchange rate changes Ending balance	Derivative instrument - Net of fair value measured through profit and loss	Derivative instrument - Net of fair value measured through profit and loss		Non quoted equity instrument - fair value through other comprehensive income	Non quoted equity instrument - fair value through other comprehensive income
	2020 $ 124,565 (1,148) - - (35,654) (5,446) $ 82,317	2019		2020 97,021 - 1,711 (28,896) (6,845) - 62,991	2019
		51,340 75,659 - - - (2,434) 124,565			135,751 - (38,730) - - -
					97,021

As of December 31, 2020 and 2019, the total gains and losses were included in “other gains and losses” and “unrealized gains and losses of financial assets at fair value through other comprehensive income”. The relevant assets were as follow:

2020 Total gains and losses recognized: In gains and losses, and presented in “other gains and losses” $ (1,148) In other comprehensive income, and presented in “unrealized gains and losses from financial assets at fair value through other comprehensive income” $ 1,711	2019 75,659 (38,730)

• e) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s financial instruments that use Level 3 inputs to measure fair value include “financial assets measured at fair value through profit or loss – derivative instruments” and “ fair value through other comprehensive income – equity investments”.

Most of the fair value classified as Level 3 are singular significant unobservable input value, except for equity investments without an active market, which has multiple significant unobservable input data. The significant unobservable input values of equity instruments without an active market are independent of each other, thus there are no correlation between them.

(Continued)

65

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item Financial assets measured at fair value through profit and loss - derivative instruments (put options) Financial assets measured at fair value through profit and loss - derivatives instruments (long call options and short call options) Financial assets measured at fair value through other comprehensive income - equity instruments without an active market	Valuation technique Black-Scholes options pricing model Option pricing model Black-Scholes options pricing model	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurements ‧Stock price volatility (38.58% for December 31, 2019) ‧The higher the volatility of the stock price, the higher the fair value ‧Stock price volatility (25%~33% and 17.5%~18% for December 31, 2020 and December 31, 2019 respectively) ˙The higher the volatility of the stock price, the higher the fair value of longing the call option and lower the fair value of shorting the call option ‧Value multiplier (1.63 for December 31, 2019) ‧Stock price volatility (38.22% for December 31, 2019) ‧The higher the value multiplier, the higher the fair value ‧The higher the volatility, the lower the fair value

f) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

Financial assets measured at fair value through profit and loss - derivatives instruments (long call options) Financial assets measured at fair value through profit and loss - derivatives instruments (short call options)	Input value 27%~33% 27%~33% 25%~33% 25%~33%	Increase(+) or decrease(-)	The effect of fair value fluctuations in profit and loss Favorable Unfavorable - - - - - (2,396) 2,397 -
		+0.5% -0.5% +0.5% -0.5%

(Continued)

66

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The favorable and unfavorable effects represent the changes in fair value, which is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

• (ac) Financial risk management

• (i) Overview

The Group is exposed to the following risks arising from financial instruments:

• 1) Credit risk

• 2) Liquidity risk

• 3) Market risk

Note 6(ab) presents detailed information on exposure to each of the above risks and on the objectives, policies, and processes for measuring and managing risk.

• (ii) The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect the changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Group Audit Committee ensures that the supervision of the management is in compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group Audit Committee is assisted in its oversight role by an Internal Audit.The Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

(ad) Capital management

The Group’ s objectives for managing capital to safeguard its capacity to continue to operate, to continue to provide a return for shareholders, to maintain the interest of other related parties, and to maintain an optimal capital structure to reduce the cost of capital.

The main management of the Group regularly reviews the Group's capital structure, including the cost of various capital and related risks. In order to maintain or adjust the capital structure, the Group may adjust the dividend payment to the shareholders, reduce the capital for redistribution to shareholders, issue new shares, or sell assets to settle any liabilities. There were no such significant changes in the debt ratio at December 31, 2020 and 2019.

(Continued)

67

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (ae) Investing and financing activities not affecting current cash flow

The Group’s investing and financing activities which did not affect the current cash flow in the years ended December 31, 2020 and 2019, were as follows:

• (i) Acquisition of Right-of-use assets by lease, please refer to note 6(j).

• (ii) Reconciliation of liabilities arising from financing activities were as follows:

Long-term borrowings Short-term borrowings Shor-term notes paybale Lease liabilities Preference share liabilities Total liabilities from financing activities Long-term borrowings Short-term borrowings Shor-term notes paybale Lease liabilities Preference share liabilities Total liabilities from financing activities	January 1, 2020 $ 17,498,137 2,988,798 415,458 1,018,299 44,260 $ 21,964,952 January 1, 2019 $ 15,804,007 6,869,628 276,436 1,085,503 60,694 $ 24,096,268	Cash flows (6,935,568) (422,748) (241,200) (80,518) (17,978) (7,698,012) Cash flows 1,743,959 (3,843,502) 139,022 (59,470) (4,923) (2,024,914)	Foreign exchange movements and others December 31, 2020 (80,157) 10,482,412 (246,048) 2,320,002 552 174,810 (281,847) 655,934 2,000 28,282 (605,500) 13,661,440 Foreign exchange movements and others December 31, 2019 (49,829) 17,498,137 (37,328) 2,988,798 - 415,458 (7,734) 1,018,299 (11,511) 44,260 (106,402) 21,964,952	Foreign exchange movements and others December 31, 2020 (80,157) 10,482,412 (246,048) 2,320,002 552 174,810 (281,847) 655,934 2,000 28,282 (605,500) 13,661,440 Foreign exchange movements and others December 31, 2019 (49,829) 17,498,137 (37,328) 2,988,798 - 415,458 (7,734) 1,018,299 (11,511) 44,260 (106,402) 21,964,952
				17,498,137 2,988,798 415,458 1,018,299 44,260
				21,964,952

(7) Related-party transactions:

• (a) Name and relationship with related parties

Name of related party Relationship with the Group Phanes FZ LLC Other related party Phanes Holding Inc. Other related party Oryx Solar System Solutions LLC Other related party ThinTech Materials Technology Co., Ltd. Other related party Sino-American Silicon Products Inc. (“SAS”) Other related party (Note 3) Taiwan Speciality Chemicals Corporation Other related party (Note 3) Top Green Energy Technologies Inc. Other related party Clean Focus Management Acquisition LLC (“CFM”) Other related party

(Continued)

68

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of related party	Relationship with the Group
Neo Cathay Power Corp. (“Neo Cathay”)	Associate (Note 4)
Neo Cathay Electric Power Corp.	Associate (Note 4)
DS Energy Technology Co., Ltd.	Associate
Si One Corp. (“Si One”)	Associate (Note 4)
Da Li Energy Co., Ltd. (“Da Li Energy”)	Associate (Note 4)
Yong Han Ltd.	Associate (Note 4)
Yun Yeh Energy Inc.	Associate (Note 4)
Solarbright energy Co., Ltd.	Associate
Clean Focus Yield Limited (“CFY”)	Other related party (Note 1)
Clean Focus Corporation (“CFC”)	Other related party (Note 1)
CF Gainesville Owner One, LLC	Other related party (Note 1)
CF SBC Owner One LLC	Other related party (Note 1)
CF Lessee LOB LLC	Other related party (Note 1)
Verde Solar Inc.	Other related party (Note 1)
V5 Technologies Co., Ltd.	Associate
Gintung energy Corporation	Associate
Sunshine PV Corporation (“Sunshine PV”)	Associate (Note 2)
CF MN DevCo One LLC (“DevCo One”)	Joint venture
CF MN DevCo Two LLC	Joint venture
NSP ET CAP MN HOLDINGS LLC	Joint venture

• Note 1: Former associates of the Group, wherein the Group disposed all of CFY’s shares in January 2020. In addition, due to the fact that the directors of CFY are the same as those of the Company, therefore, the Group has significant control over CFY; hence CFY and its subsidiaries were listed as other related parties of the Group.

• Note 2: The Company resigned from the board of directors of Sunshine PV in May 2019, and no longer has significant control over it. Therefore, only show the transactions as of May 2019.

• Note 3: The Company did not serve as director of SAS in June 2020, and no longer has significant control over it. Therefore, only show the transactions as of June 2020.

• Note 4: The Company disposed Neo Cathay’ s shares in September 2020, and no longer has significant control over it and its subsidiaries. Therefore, only show the transactions as of September 2020.

(Continued)

69

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Significant transactions with related parties

• (i) Sales, accounts receivable and contract assets

Details of sales (discount) by the Group to related parties were as follows:

Associates Other related parties		For the years ended December 31,	For the years ended December 31,
			2019
			1,487,725 11,210
			1,498,935

The terms of sale between the Group and related parties are negotiated by both parties based on the market conditions of the relevant products. The details of the accounts receivable and contract assets from the above transactions were as follows:

Associates CFC Verde Solar Inc. Da Li Energy Si One Others Other related parties CFC Verde Solar Inc. Less: Impairment allowance	December	31, 2020 Contract Assets - - - - - - - - -	December 31, 2019	December 31, 2019
	Accounts Receivable $ - - - - - 129,183 77,725 (7) $ 206,901		Accounts Receivable 280,111 82,981 119,371 25,559 15,911 - - (8,464) 515,469	Contract Assets
				- - 50,967 364,151 45,940 - - -
				461,058

(ii) Purchases, accounts payable, contract liabilities and prepayments

Details of purchases by the Group to related parties were as follows:

Associates Other related parties		For the years ended December 31,	For the years ended December 31,
			2019
			- 11,620
			11,620

(Continued)

70

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The terms of the purchase between the Group and related parties are based on conditions agreed upon by both parties. The details of the accounts payable and contract liabilities from the above transactions were as follows:

the above transactions were as follows:
Associates Si One Others Other related parties	December 31, 2020 Accounts Payable Contract Liabilities $ - - - - - - $ - -	December 31, 2019 Accounts Payable Contract Liabilities - 32,588 - 7,083 6,652 11 6,652 39,682
	Accounts Payable $ - - - $ -		Contract Liabilities
			32,588 7,083 11
			39,682

In addition, the details of prepayments made by the Group related to purchase were as follows:

Other related parties SAS	December 31, 2020 $ -	December 31, 2019
		1,117,975

• (iii) The following are mainly generated from mutual advance payments for building power facilities between the Group and related parties, which were including in other receivables and other current liabilities:

Associates CFC Others Joint ventures DevCo One Others Other related parties CFC CFM Others Less: Impairment allowance	Other receivables December 31, 2020 December 31, 2019 $ - 320,566 840 1,470 35,880 153,166 10,676 11,398 297,451 - - 183,755 29,176 20,997 (10,676) (11,398) $ 363,347 679,954
	December 31, 2020 $ - 840 35,880 10,676 297,451 - 29,176 (10,676) $ 363,347

(Continued)

71

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Associates Joint ventures Other related parties		Other current liabilities	Other current liabilities
			December 31, 2019 600 138,960 4,229
			143,789

(iv) Purchase of property, plant and equipment

Other related parties	For the years ended December 31, 2020 2019 $ 10,617 80,035	Payables on equipment (classified as other current liabilities)	Payables on equipment (classified as other current liabilities)
	2020 $ 10,617	December 31, 2020 1,981	December 31, 2019
			964

(v) Loaning of funds and interest income

Details of loaning of funds between the Group and related parties from January 1 to December 31, 2019 were as follows. There were no such loans from January 1 to December 31, 2020.

Associates CFY Sunshine PV	Maximum balance of the current period $ 107,590 200,000	Ending balance Interest rate - % 5 - % 1.608 -

Details on interest income received by the Group due to the above-mentioned loaning of funds and investments in convertible preference shares issued by other related parties were as follows:

Other related parties Phanes Holding Inc. Associates Joint ventures		For the years ended December 31,	For the years ended December 31,
			2019
			9,541 4,145 390
			14,076

(Continued)

72

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(vi) Disposal of associates

The Group invested in 28.67% of CFY’s shares, with the right of redemption. Both parties agreed the Group require CFY to redeem all of its shares with certain conditions. The right has been executed by the Group in the first quarter of 2020, with the execution price of $1,649,963 thousand and the profit of $253,480 thousand, which includes the put option valuation gain of $35,514 thousand, recognized in 2019; and also a gain on disposal of investments of $217,826 thousand, as well as an impact of exchange rate differences of $140 thousand, both recognized in the first quarter of 2020. Please refer to note 6(g) for more details. In addition, as of December 31, 2020, the remaining balance on the above disposal amounting to $443,682 thousand, which has not yet to be collected, accounted for as other receivables from related parties.

(vii) Other income

Associates Other related parties		For the years ended December 31,	For the years ended December 31,
			2019
			14,715 5,446
			20,161

(viii) Dividend income

Other related parties SAS Others		For the years ended December 31,	For the years ended December 31,
			2019
			65,581 2,800
			68,381

(c) Key management personnel compensation

Short-term employee benefits Post-employment benefits Share-based payments Total		For the years ended December 31,	For the years ended December 31,
	2020 $ 78,109 1,604 3,645 $ 83,358		2019
			95,720 2,076 1,686
			99,482

Please refer to note 6(w) for further explanations related to share-based payments.

(Continued)

73

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(8) Pledged assets:

The carrying amounts of pledged assets were as follows:

Pledged assets	December 31, 2020 $ 6,572,006 2,671,322 - 1,453,667 - 273,442 732,696 32,415 $ 11,735,548	December 31, 2019
Property, plant and equipment Investment property Financial assets at fair value through other comprehensive income Restricted bank deposit (accounted for as other financial assets and other non-current assets) Investments accounted for using the equity method Inventory Refundable deposit Lease receivables (accounted for as other current assets and other non-current assets)		13,226,082 - 2,172,922 947,105 559,639 290,734 911,486 35,140
		18,143,108

(9) Significant contingent liabilities and unrecognized commitments:

• (a) Unrecognized contract commitments

• (i) Unrecognized contract commitments

Unused letter of credit (in USD thousand) Bank guarantee (Note 13(a))	December 31, 2020 $ 4,211 $ 3,567,818	December 31, 2019
		3,411
		4,024,226

• (ii) The Group have obtained orders for power facility construction and contracted the projects out to contractors. The Group entered into construction and materials contract with several contractors, and the unpaid amounts were as follow:

Unpaid amount	December 31, 2020 $ 643,249	December 31, 2019
		907,301

• (iii) The Group agreed to buy back the Class A preference shares issued by GES AC and AC GES on specific dates; please see note 6 (p) for more details. In addition, the Group and IMPA agreed to sell all the shares of GES AC and AC GES; please see note 6 (o) for more details.

• (iv) The Group signed an electricity purchase contract with several companies. According to the contract, the Group can sell its own power plant to these companies, who are not allowed to resell electricity without authorization from the Group. The contracts are irrevocable, with contract periods ranging from 20-25 years.

(Continued)

74

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (v) The Group entered into separate long-term purchase agreements with several different silicon wafer suppliers. The Group has to make advance payments as guarantee and the suppliers shall meet the supply of materials in accordance with the contract terms. The advance payment may not be used for any other purposes than to deduct the payables arising from the purchase which is decided by both parties according to market price. In addition, the Group will recognize the impairments on the prepaid amounts according to the suppliers’ operations as follows:

Advance payment Accumulated impairment loss	December 31, 2020 $ 2,160,495 $ 164,853	December 31, 2019 2,213,188 51,732

• (vi) As of December 31, 2020, the Group issued guarantee for Directorate General of Customs and sales Project, amounting to $926,350 thousand.

(10) Losses due to major disasters: None

(11) Subsequent Events:

• (a) A resolution was decided during the board meeting held on March 25, 2021 for the Group to reduce its capital to cover for its deficit 11,571,176 thousand. The above resolution is subject for approval during the shareholders’ meeting, and agreed by the relevant securities authority. Please see the Market Observation Post System for more details.

• (b) Judgment of damages litigation between the Group and the supplier, please refer to note 6 (aa).

• (c) To expand the scale of operations and increase the use asset efficiently, the Group expects to issue ordinary shares or/and global depositary receipts or/and private shares in cash, with the maximum limit of 250,000 thousand ordinary shares. The above transaction will be submitted for discussion in the shareholders’ meeting to be held in May 2021

(12) Others:

Employee benefits, depreciation and amortization expense are summarized based on functions as follows:

Functions Nature	For the years ended December 31, 2020	For the years ended December 31, 2020	For the years ended December 31, 2020	For the years ended December 31, 2019	For the years ended December 31, 2019	For the years ended December 31, 2019
	Operating cost	Operating expenses	Total	Operating cost	Operating expenses	Total
Employee benefit expense Depreciation expense Amortization expense	1,011,119 1,755,939 3,485	582,756 302,294 5,415	1,593,875 2,058,233 8,900	1,625,089 3,071,168 5,885	774,385 277,147 17,048	2,399,474 3,348,315 22,933

(Continued)

75

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(13) Other disclosures:

• (a) Information on significant transactions:

The followings were the information on significant transactions required by the “ Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the years ended December 31, 2020:

• (i) Lending to other parties: Please see Table 1 attached.

• (ii) Guarantee and Endorsement for other parties: Please see Table 2 attached.

• (iii) Information regarding securities held at the reporting date (subsidiaries, associates and joint ventures not included): Please see Table 3 attached.

• (iv) Information regarding purchase or sale of securities for the period exceeding 300 million or 20% of the Group’s paid-in capital: Please see Table 4 attached.

• (v) Information on acquisition of real estate with purchase amount exceeding 300 million or 20% of the Group’s paid-in capital: None.

• (vi) Information regarding receivables from disposal of real estate exceeding 300 million or 20% of the Group’s paid-in capital: Please see Table 5 attached.

• (vii) Information regarding related-parties purchases and/or sales exceeding 100 million or 20% of the Group’s paid-in capital: Please see Table 6 attached.

• (viii) Information regarding receivables from related-parties exceeding 100 million or 20% of the Company’s paid-in capital: Please see Table 7 attached.

• (ix) Information regarding trading in derivative financial instruments: Please refer to Note 6(b) for related information.

• (x) Significant transactions and business relationship between the parent company and its subsidiaries: Please see Table 8 attached.

• (b) Information on investees:

The followings are the information on investees for the years ended December 31, 2020: Please see Table 9 attached.

• (c) Information on investment in Mainland China: Please see Table 10 attached.

• (d) Major shareholders:

Shareholding Shareholder’s Name	Shares	Percentage
National Development Fund,Executive Yuan	175,119,300	% 6.57
Management Committee of Yaohua Glass Corporation Ltd.	167,145,851	% 6.27

(Continued)

76

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• Note 1: This Table provides the information of number of ordinary shares and special shares which were delivered through non-physical registration (including treasury shares) owned by major shareholders with ownership of 5% or greater and was calculated by Taiwan Depository & Clearing Corporation using the last business day at the end of the quarter. There might be a difference between the share capital listed on the Group’ s financial statements and the actual number of shares delivered through non-physical registration due to different basis of calculation.

• Note 2: If the shareholder delivered the shares to the trust, the above information would be revealed by the individual trust account under fiduciary account opened by the trustee. As for the shareholders handled the insider ownership declarations with shareholdings over 10% in accordance with the Securities and Exchange Act, their shareholdings include the shares owned by themselves plus the shares delivered to the trust which they have the right on allocating the trust properties, please refer to the Market Observation Post System website for information about insider ownership declaration.

(14) Segment information:

• (a) General information

For the purpose of resource allocation and performance measurement, the Group distinguishes its operating departments based on the business it operates, and the Group operating decision-makers regularly supervise and manage the operating results of each business unit. The reportable departments of the Group is the solar energy department, the system department and the others department.

The profit or loss of each operating department of the Group is based on the profit earned by each department, excluding the apportionable operating expenses, non-operating income and expenditure. This measurement amount is provided to the chief operating decision maker for the allocation of resources to the department and for evaluation.

• (b) Information about reportable segments and their measurement and reconciliations

The Group uses the internal management report that the chief operating decision maker reviews as the basis to determine its resource allocation and make a performance evaluation. The internal management report includes profit before taxation, but excluding any extraordinary activity and foreign exchange gain or losses because taxation, extraordinary activity, and foreign exchange gain or losses are managed on a group basis, and hence, they are not able to be allocated to each reportable segment. In addition, not all reportable segments include the depreciation and amortization of significant non-cash items. The reportable amount is similar to that of in the report used by the chief operating decision maker.

The operating segment accounting policies are similar to those described in note o “ Significant accounting policies” except for the recognition and measurement of pension cost, which is paid on a cash basis.

The Group deemed the treated intersegment sales and transfers as third-party transactions, in which they are measured at market price.

(Continued)

77

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group’s operating segment information and reconciliation are as follows:

For the years ended December 31, 2020	Solar energy $ 11,030,985 84,479 $ 11,115,464 $ (861,584) Solar energy $ 15,615,907 224,234 $ 15,840,141 $ (1,202,297)	System 1,459,465 - 1,459,465 (76,512) System 2,521,262 - 2,521,262 218,444	Others 20,584 - 20,584 5,416 Others 1,943 - 1,943 1,322	Reconciliation and elimination	Total 12,511,034 - 12,511,034 (876,476) Total 18,139,112 - 18,139,112 (984,323)
				- (84,479) (84,479) 56,204 Reconciliation and elimination
Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the years ended December 31, 2019
				- (224,234) (224,234) (1,792)
Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss

(c) Product and service information

The Group’s product revenues from external customers were as follows:

Products and services Solar energy System Others	2020 $ 10,487,565 1,459,465 564,004 $ 12,511,034	2019
		15,203,565 2,521,262 414,285
		18,139,112

(d) Geographic information

In presenting information on the basis of geography, segment revenue is based on the geographical location of customers .

Geographical information Revenue from external customers: Taiwan United States India Germany Other countries Total	Revenue from external customers 2020 2019 $ 6,262,093 6,031,214 1,071,460 2,810,770 928,885 2,404,830 870,374 2,319,921 3,378,222 4,572,377 $ 12,511,034 18,139,112	Non-current asset	Non-current asset
		2019 9,465,615 1,592,385 - - 2,134,249 13,192,249	2019
			12,506,476 2,415,878 - - 4,142,604
			19,064,958

(Continued)

78

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Non-current assets exclude investments accounted for using the equity method, prepaid investments in shares, financial instruments, deferred tax assets, goodwill, brands and other assets.

(e) Major customers

The details of the Group’s customers whose individual sales income accounted for more than 10% of the net operating income on the consolidated income statement for the years ended December 31, 2020 and 2019 are as follow:

2020 and 2019 are as follow:
EZ Company	2020 $ 1,898,907	2019
		Note

Note : The amount of income failed to reach 10% of the consolidated income.

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES FINANCING PROVIDED TO OTHERS

FOR THE YEAR ENDED December 31, 2020

TABLE 1

(In Thousands of New Taiwan Dollars)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Borrowing Amount	Interest Rate (%)	Nature of Financing (Note 1)	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
1 2 3	GES JAPAN DelSolar Wu Jiang NSP Indygen UK Ltd	GES UK NSP Nanchang UNITED RENEWABLE ENERGY CO.,LTD.	Other receivables from related party Other receivables from related party Other receivables from related party	Y Y Y	252,900 194,760 76,940	- - -	- - -	- - -	2 2 2	- - -	Operating capital Operating capital Operating capital	- - -	- - -	- - -	268,080 198,129 109,073	268,080 198,129 109,073

Note 1: The nature of financing purposes:

• 1) Represents entities with business transaction with the Group;

• 2) Represents where an inter-company or inter-firm short-term financing facility is necessary.

Note 2: The financing company’s total financing amount for one counterparty should not exceed 40% of the financing company’s net asset value. The net asset value of GES JAPAN and DelSolar Wu Jiang is based on the latest settlement financial statement.

Note 3: The financing company’s total financing should not exceed 20% of its net asset value. A single financing should not exceed the transaction amount between the financing company and counterparty within one year and should not exceed the highest amount of purchases or sales.

Note 4: The Company’s total amount of financing for short-term financing should not exceed 20% of its net asset value and the financing for a counterparty should not exceed 10% of its net asset value.

Note 5: Overseas subsidiaries wholly-owned directly or indirectly by the Company are not subjected to Note 2. The financing company’s total financing should not exceed three years and the total amount of financing and the financing for a counterparty should not exceed 100% of its net asset value.

Note 6: The aforementioned inter-company transactions have been eliminated in the consolidated financial statements.

(Continued)

~ 79 ~

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED December 31, 2020

TABLE 2

(In Thousands of New Taiwan Dollars)

No.	Endorser/Guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limit on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements(%)	Maximum amount for guarantees and endorsements	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship with the Company
0 0 0 0 0 0 0 0 0 1 1 1	The Company The Company The Company The Company The Company The Company The Company The Company The Company GES USA GES USA GES USA	Nevada NSP Indygen Apex Gintech (Thailand) GES USA NSP NEVADA GES UK Yong Liang The Company(Note4) TEV Solar Alpha 18 MEGA16 Munisol	(2) (2) (2) (2) (2) (2) (2) (2) (2) (4) (4) (4)	2,851,386 2,851,386 2,851,386 2,851,386 2,851,386 2,851,386 2,851,386 2,851,386 2,851,386 635,748 635,748 635,748	46,110 356,220 263,000 897,510 559,176 500,000 604,600 1,017,250 51,120 304,415 257,465 134,488	- - 263,000 283,080 421,425 500,000 561,900 1,017,250 - 282,355 238,808 -	- - 261,000 - 421,425 136,400 85,971 76,887 - 282,355 238,808 -	- - - - - - - - - - - -	- - 1.84 1.99 2.96 3.51 3.94 7.14 - 44.41 37.56 -	7,128,466 7,128,466 7,128,466 7,128,466 7,128,466 7,128,466 7,128,466 7,128,466 7,128,466 1,271,496 1,271,496 1,271,496	Y Y Y Y Y Y Y Y N Y Y Y	N N N N N N N N N N N N	N N N N N N N N N N N N

Note 1: The relation between guarantor and guarantee �

• (1)Ordinary business relationship.

• (2)Subsidiary which owned more than 50 percent by the guarantor.

• (3)An investee owned more than 50 percent in total by both the guarantor and its subsidiary.

• (4)An investee owned more than 90 percent by the guarantor or its subsidiary.

• (5)Fulfillment of contractual obligations by providing mutual endorsements and guarantees for peer or joint builders in order to undertake a construction project.

• (6) An entity that is guaranteed and endorsed by all capital contributing shareholders in proportion to their shareholding percentages.

• �����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

Note 2: In accordance with the “Rules of Guarantees by the Company,” the ceiling for the total guaranteed amount was 50% of the Company’s net asset value, and the limit on the guaranteed amount for a single party was 20% of the Company’s net asset value. But for business purposes, the limit of the guaranteed amount was the total of the purchases from or sales to the Company within the most recent year.

Note 3: Based on the “Rules of Guarantees by GES USA,” the ceiling for the total guaranteed amount was 200% of GES USA’s net asset value, and the limit of the guaranteed amount for a single party was 100% of GES USA’s net asset value. But for business purposes, the limit on the guaranteed amount was the total of the purchases from or sales to GES USA within the most recent year. GES USA’s net asset value is based on its latest settlement financial statement.

Note 4: In accordance with the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies” Article 4.1.1. (3), although, the guaranteed party is the Company, the Company issued a separate promissory note to a non-financial enterprise to meet the financing needs, which is still in accordance with the term "endorsements/guarantees" under Article 4 of the regulations.

(Continued)

~ 80 ~

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

FOR THE YEAR ENDED December 31, 2020

TABLE 3

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

TABLE 3				(In Thousands of New Taiwan Dollars, Unless Stated Ot	(In Thousands of New Taiwan Dollars, Unless Stated Ot	(In Thousands of New Taiwan Dollars, Unless Stated Ot	(In Thousands of New Taiwan Dollars, Unless Stated Ot	herwise)
Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	2020.12.31				Note
				Number of Shares	Carrying Amount	Percentage of Ownership	Fair Value
The Company Apex	Shares CTCI Corporation ThinTech Materials Technology Co., Ltd. GIGA SOLAR MATERIALS CORPORATION Taiwan Speciality Chemicals Corporation NTNU Innovation Investment Holding Company ASIA GLOBAL VENTURE CAPITAL II CO., LTD SUN APPENNINO CORPORATION FICUS CAPITAL CORPORATION Convertible preference shares-Phanes Holding Inc. Shares Top Green Energy Technologies Inc.	- Other related party - - - - - - Other related party Other related party	Financial assets at fair value through other comprehensive income- current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at amortized cost- non-current Financial assets at fair value through other comprehensive income- non-current	3,003 7,000 266 1,691 200 770 - - 24 8,889	114,715 159,460 54,323 18,601 2,000 15,292 - - 140,475 27,098	0.39% 9.52% 0.44% 0.58% 2.00% 10.00% 26.09% 28.07% 100.00% 7.11%	114,715 159,460 54,323 18,601 2,000 15,292 - - 140,475 27,098	1

Note 1 � Private placement ordinary shares, subjected to transfer restrictions in accordance with Article 43-8 of the Securities and Exchange Act.

(Continued)

~ 81 ~

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED AND DISPOSED AT COSTS OR PRICES OF AT LEAST $300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED December 31, 2020

TABLE 4

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

TABLE 4									(In Thousands of New Taiwan Dollars, U	(In Thousands of New Taiwan Dollars, U	(In Thousands of New Taiwan Dollars, U	(In Thousands of New Taiwan Dollars, U	nless Stated Otherwise)	nless Stated Otherwise)
Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	Beginning Balance		Acquisition		Disposal				Ending Balance
					Shares	Amount	Shares	Amount	Shares	Amount	Carrying Amount	Gain (Loss) on Disposal	Shares (thousands)	Amount
The Company The Company The Company The Company NSP BVI DelSolar Wu Jiang and Desolar HK GES UK The Company	Shares NSP BVI JRC Neo Cathay Shares-Utech CFY NSP Nanchang Shares-GES JAPAN Shares-SAS	Investment accounted for using the equity method Investment accounted for using the equity method Investment accounted for using the equity method Investment accounted for using the equity method Investment accounted for using the equity method Investment accounted for using the equity method Investment accounted for using the equity method Financial assets at fair value through other comprehensive income- non-current	(Note1) (Note3) San Ching Engineering (Note3) CFY(Note2) (Note3) (Note1) (Note5)	Subsidiary Subsidiary Non-related party Subsidiary Other related party Subsidiary Subsidiary (Note6)	50,050 1 60,000 39,324 9,672 - 276 21,860	1,411,425 466 608,967 (264,541) 1,169,805 (561,223) 714,485 2,172,922	- 144 - 37,996 - - - -	- 427,680 (Note3) - 379,152 (Note3) - 675,321 (Note3) - -	31,700 - 60,000 (26,962) 9,672 - - 21,860	955,755 - 705,876 - 1,649,963 12,769 448,573 2,241,455	955,755 - 625,468 - 1,396,483 (Note2) 107,091 448,573 1,707,296	193,123 (Note4) (215,725) (Note4) 80,408 (Note8) (1,392,703) (Note4) 253,480 (Note2) (94,322) (Note7) 2,168 (Note4) 534,159	18,350 145 - 50,358 - - 276 -	648,793 212,421 - (1,278,092) - - 268,080 -

Note 1 � Cash capital reduction.

Note 2 � The Group executed put option and recognized call option valuation gains of $35,514 thousand recognized in the year 2019, impact of exchange rate differences of $140 thousand, and gains on disposal of investments of $217,826 thousand recognized in the first and second quarter of 2020.Please refer to note6(h) and 7.In addition, carrying amount includes financial assets measured at fair value through profit or loss-the right to sell �

Note 3 � Issuance of common stock for cash and difference between consideration and carrying amount of subsidiaries's net assets due to the amount of the Group’s proportionate interest.

Note 4 � Included share of loss (gains) of associates accounted for using equity method and cumulative translation adjustment.

Note 5�Securities sold on the open market of stock exchange.

Note 6�Originally was other related party of the Group, the Company didn’t serve as a director of SAS since the end of June 2020, and no longer has a significant influence over it. Therefore, SAS is non-related parties since July 2020.

Note 7�The Group disposed of all the equity shares of NSP Nanchang in the third quarter of 2020. Please refer to Note 6(h).

Note 8�The Group disposed of all the equity shares of Neo Cathay in the third quarter of 2020. Please refer to Note 6(g)and 7.

Note 9�The aforementioned inter-company transactions have been eliminated in the consolidated financial statements.

(Continued)

~ 82 ~

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

DISPOSAL PROPERTIES, PLANTS AND ERUIPMENT AT COSTS OR PRICES OF AT LEAST $300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED December 31, 2020

TABLE 5

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

TABLE 5									(In	Thousands o	f New Taiwan Dollars, Unless State	d Otherwise)
Company Name	Property name	Date of Transaction	Original acquisition date	Book value	Transaction amount	Price collection situation	Disposal gain	Trading partner	Relationship with the Holding Company	Purpose of disposal	Reference for price determination	Other agreement terms
The Company	Jhunan Science Park Jhunan plant A	109/7/9	97/3/1~100/8/25	789,380	1,038,306	As shown in the contract	248,926	Taiwan Mask Corporation	Non-related party	Increase asset use efficiency	Refer to the actual transaction prices, market conditions of neighboring real estate, and the appraisal report.	N

(Continued)

~ 83 ~

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED December 31, 2020

TABLE 6

(In Thousands of New Taiwan Dollars)

TABLE 6							(In Th	(In Th	ousands of New Taiwan D	ousands of New Taiwan D	ollars)
Buyer/Seller	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)		Note
			Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
The Company The Company The Company NSP System NSP System	Utech Gintech(Tailand) Gintech(Tailand) Si One Da Li Energy	Subsidiary Subsidiary Subsidiary Associate Associate	Purchase Purchase Sale Sale Sale	565,527 573,180 (148,988) (290,693) (152,310)	7% 7% 1% 2% 1%	OA 14 days after receipt 60 days from the invoice date 60 days from the invoice date 15 days from the invoice date 15 days from the invoice date	- - - - -	- - - - -	(137,335) (28,845) 149,964 (�1) (�1)	(10.32%) (2.17%) 6.51% - -	2 2 2 1 1

Note 1: Originally was an associate of the Group. However, the Group disposed of all the shares in September 2020, it no longer has the significant influence on the company, which became non-related party to the Group since September 2020.

Note 2�The aforementioned inter-company transactions have been eliminated in the consolidated financial statements.

(Continued)

~ 84 ~

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED December 31, 2020

TABLE 7

(In Thousands of New Taiwan Dollars)

TABLE 7					(In Th	(In Th	ousands of New T	aiwan Dollars)
Company Name	Related Party	Relationship	Ending Balance	Turnover Rate (Note1)	Overdue		Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
The Company The Company The Company The Company The Company TEV II GES USA DelSolar US NSP NEVADA USD1 Beryl TEV II Utech NSP BVI NSP BVI	DelSolar US GES ME NSP NEVADA GES USA Gintech (Thailand) TEV Solar MUNISOL Beryl GES USA Beryl CFC TEV Solar The Company The Company CFY	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Grandson company Subsidiary Subsidiary Associate Associate Subsidiary Parent company Parent company Other relatedparty	753,690 592,455 495,011 247,419 149,964 552,773 815,060 707,670 228,342 107,292 408,045 552,773 137,629 205,092 443,682	- - - - 0.9 - - - - - - - - - -	753,690 592,455 495,011 120,991 57,361 - - - - - - - - - -	Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable according to the financial situation Receivable accordingto the schedule of signingcontracts	- 1,066 - - - - - - - - - - - - -	- - - - - - - - - - - - - - -

Note 1�Receivables arising from the payment of power plant construction payments or procurement transactions don’t apply to turnover rate. Note 2 � The aforementioned inter-company transactions have been eliminated in the consolidated financial statements.

~ 85 ~

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES BUSINESS RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED December 31, 2020

TABLE 8

(In Thousands of New Taiwan Dollars)

TABLE 8				(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
No (Note 1)	Company Name	Related Party	Relationship(Note 2)	Intercompanytransactions
				Financial Statement Account	Amount	Trading Terms	Percentage of the consolidated net revenue or total assets
0 0 0 0 0 0 1 2 3	The Company The Company The Company The Company The Company The Company DeSolar US GES USA TEV II	DelSolar US NSP NEVADA GES ME Gintech(Thailand) Gintech(Thailand) Utech Beryl MUNISOL TEV Solar	1 1 1 1 1 1 3 3 3	Other receivable Other receivable Other receivable Purchase Sales Purchase Other receivable Other receivable Other receivable	753,690 495,011 592,455 573,180 148,988 565,527 707,670 815,060 552,773	Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3	2% 2% 2% 5% 1% 5% 2% 3% 2%

Note 1: fill in of numbers :

1. 0 represents the parent company.

2. The subsidiaries start with number 1.

Note 2: Relationship with counterparty are represented below :

1. Transactions from parent company to subsidiary.

2. Transactions from subsidiary to parent company.

3. Transactions between subsidiaries.

Note 3: Based on general trading conditions and prices.

Note 4: The aforementioned inter-company transactions have been eliminated in the consolidated financial statements. Note 5: If other transactions do not reach 1% of the combined total revenue or total assets ratio will not be disclosed.

(Continued)

~ 86 ~

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES

INVESTEES(EXCLUDING INFORMATION ON INVESTEES IN MAINLAND CHINA)

FOR THE YEAR ENDED December 31, 2020

TABLE 9

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

TABLE 9						(In Tho	(In Tho	(In Tho	usands of Ne	w Taiwan Dollars, Unless Stated	w Taiwan Dollars, Unless Stated	Otherwise)
Investor Company	Investee Company	Location	Main Businesses and Products	Investment Amount		Balance as of December 31, 2020			Highest % of Ownership during 2020	Investee recognized		Note
				December 31, 2020	December 31, 2019	Shares (Thousands)	% of Ownership	Carrying Value		Net Income (Loss) of the Investee	Investment Gain (Loss)
The Company UES RES	UES DelSolar Cayman NSP BVI GES ME Apex NSP UK NSP System Prime Energy New Ray Investment Zhongyang Huiyang UREE DelSolar Singapore BPS SMC Utech Yong Liang Yong Zhou Ever Lite Yong Shun JRC GES UK Neo Cathay TSST V5 Technology Gintung DSET Solar PV Dashiangying Shinkai Shanshang Jiangung Dungshr Yanshan Hemvan RES Gintech Thailand	Independent State of Samoa Cayman Islands British Virgin Islands The United Arab Emirates Taiwan UK Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Singapore Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Dominican UK Taiwan Malaysia Taiwan Taiwan Taiwan Cayman Islands Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Independent State of Samoa Thailand	Investment company Investment company Investment company Solar related business Solar related business Investment company Solar related business Electronic component manufacturing and selling Investment company Solar related business Solar related business Solar related business Investment company Solar related business Solar related business Electronic component manufacturing Solar related business Solar related business Electronic component selling Solar related business Solar related business Investment company Investment company Solar related business Electronic component manufacturing and selling Electronic component manufacturing Solar related business Investment company Agriculture related business Agriculture related business Solar related business Agriculture related business Electronic component Agriculture related business Solar related business Investment company Solar related business	NTD 1,918,131 NTD 4,906,789 NTD 470,424 NTD 418,805 NTD 165,994 NTD 71,881 NTD 144,200 NTD - NTD 115,000 NTD 24,121 NTD - NTD 25,300 NTD 29,743 NTD 6,000 NTD 9,720 NTD 717,070 NTD 249,000 NTD 46,500 NTD - NTD - NTD 431,397 NTD 2,943,653 NTD - NTD 417,692 NTD 114,084 NTD 34,341 NTD 10,500 NTD - NTD 100 NTD 100 NTD 20,100 NTD 100 NTD 2,100 NTD 100 NTD 30,000 USD 64,406 USD 64,155	NTD 1,910,636 NTD 4,906,789 NTD 1,426,179 NTD 418,805 NTD 165,994 NTD 138,967 NTD 144,200 NTD 90,000 NTD 115,000 NTD 24,121 NTD 30,427 NTD 20,000 NTD 29,743 NTD 6,000 NTD 9,720 NTD 337,114 NTD 249,000 NTD 46,500 NTD - NTD 2,000 NTD 3,717 NTD 3,170,893 NTD 600,000 NTD 417,692 NTD 114,084 NTD 34,341 NTD 10,500 NTD - NTD 100 NTD 100 NTD 100 NTD 100 NTD 100 NTD 100 NTD - USD 64,148 USD 63,897	62,188 155,126 18,350 4 36,379 1,780 14,420 - 11,500 3,500 - 2,530 1,250 600 1,000 50,356 24,900 - - - 145 95,890 - 97,701 7,789 13,460 1,050 - 10 10 2,010 10 210 10 3,000 62,188 20,920	100% 100% 100% 100% 100% 100% 100% -% 100% 100% -% 100% 100% 60.00% 100% 99.87% 100% 100% -% -% 59.69% 100% - 42.12% 32.73% 36.38% 29.17% -% 100% 100% 100% 100% 100% 100% 30% 100% 100%	739,862 604,644 648,793 182,811 197,084 157,915 92,183 - 59,478 26,824 - 1,372 16,634 15,277 9,850 (1,278,092) 268,875 (1,781) - - 212,421 1,394,413 - 72,842 65,420 - 2,043 - 67 67 20,059 67 144 67 29,828 739,862 732,946	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% -% 100% 100% 60.00% 100% 99.87% 100% 100% -% -% 59.69% 100% 40% 42.12% 41.43% 36.38% 35% -% 100% 100% 100% 100% 100% 100% 30% 100% 100%	(1,098,294) (292,433) 214,343 (152,564) 6,194 49,184 (53,235) (17) (6) (8,386) - (18,417) (1,630) 9,873 6 (1,393,646) 18,993 (7,610) - (1) (28,329) (773,159) 57,626 (9,726) (12,878) 12,637 (9,295) - (4) (4) (12) (4) (1,927) (4) (572) (1,098,294) (1,097,076)	(1,134,337) (292,080) 214,343 (152,564) 6,194 49,184 (3,907) (17) (6) (8,386) - (18,417) (1,630) 5,924 6 (1,392,703) 18,993 (7,610) - (1) (7,956) (797,232) 23,050 (4,097) (9,168) - (3,156) - (4) (4) (12) (4) (1,927) (4) (172) - -	Note 7 Note 7 Note 7 Note 7 Note 1,12 Note 1 Note 1 Note 1 Note 1 Note 1,7 Note 10 Note 10
										(Continued)

~ 87 ~

Investor Company	Investee Company	Location	Main Businesses and Products	Investment Amount	Investment Amount	Balance as of December 31, 2020	Balance as of December 31, 2020	Balance as of December 31, 2020	Highest % of Ownership during 2020	Investee recognized	Investee recognized	Note
				December 31, 2020	December 31, 2019	Shares (Thousands)	% of Ownership	Carrying Value		Net Income (Loss) of the Investee	Investment Gain (Loss)
GES UK GES USA	GES-USA NSP Germany NCH Solar1 GES_Solar2 GES_Solar3 GES CANADA GES JAPAN MEGATWO MEGATHREE MEGAFIVE MEGASIX MEGAEIGHT MEGATWELVE MEGATHIRTEEN MEGASIXTEEN MEGASEVENTEEN MEGA NINIETEEN MEGATWENTY ASSET ONE ASSET TWO ASSET THREE CENERGY SH4 CEDAR FALLS Schenectady VOC SEG KINECT RER CT 57 TEV II Illini Power LLC PS CS LLC HEYWOOD Energy Group NY 63 MP Solar Ventura	US Germany UK UK UK Canada Japan US US US US US US US US US US US US US US US US US US US US US US US US US US US US US	Investment company Solar related business Solar related business Solar related business Solar related business Investment company Investment company Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business	USD 52,180 EUR 23 GBP 6,947 GBP 1,022 GBP 67 USD 12,025 JPY 1,184,330 USD 19,274 USD 1,284 USD 635 USD 2,627 USD 748 USD 168 USD 2,000 USD 11,981 USD - USD 132 USD 124 USD - USD - USD 2,839 USD - USD 619 USD 2,237 USD - USD 2,393 USD 800 USD 266 USD 1,931 USD 100 USD - USD - USD 1,770 USD - USD 3,251 USD 3,013	USD 52,180 EUR - GBP 7,447 GBP 1,022 GBP 67 USD 12,025 JPY 2,764,330 USD 17,723 USD 1,284 USD 635 USD 2,627 USD 760 USD 168 USD 2,000 USD 11,981 USD 51 USD 132 USD 124 USD 1,060 USD - USD 2,839 USD - USD 619 USD 2,287 USD - USD - USD 800 USD 266 USD 2,031 USD 100 USD - USD - USD 1,770 USD - USD 3,251 USD 3,013	53,416 23 6,947 1,022 67 10,540 276 19,274 1,284 635 2,627 748 168 2,000 11,981 - 132 124 - - 2,839 - 619 2,237 - 2,393 800 266 1,931 0.2 - - - - - 3,013	100% 90% 100% 100% 100% 100% 100% 100% 40% 100% 100% 100% 100% 100% 100% -% 100% 100% -% -% 100% -% 100% 100% -% -% 100% 100% 100% 100% -% -% 55% -% 55% 55%	635,748 1,654 291,453 27,908 (3,891) 196,648 268,080 79,729 2,810 18,608 11,950 3,563 415 53,593 289,536 - (2,735) 1,432 - (300) 17,839 - 10,473 42,459 (19,914) 32,183 13,496 8,829 35,875 (109,729) (70) (69) 20,774 - 90,725 84,263	100% 90% 100% 100% 100% 100% 100% 100% 40% 100% 100% 100% 100% 100% 100% 100% 100% 100% -% -% 100% -% 100% 100% -% -% 100% 100% 100% 100% -% -% 55% -% 55% 55%	(682,197) 230 7,278 876 (290) (52,160) (6,804) (325,744) (1,254) 711 (35,802) (15,352) (2,094) 489 (15,254) - (5,042) (2,952) (2,393) (24) (36,072) - (6,434) (15,035) (15,260) (35,332) (6,566) 258 (16,566) (5,617) (51) (50) (10,825) (1) (529) (327)	- - - - - - - - (31,268) - - - - - - - - - - - - - - - - - - - - - - - - - - -	Note 10 Note 9,10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 1,10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note3,7,10 Note 10 Note 10 Note 7,10 Note 3,10 Note 10 Note3,7,10 Note 10 Note 10 Note 3,10 Note 3,10 Note 10 Note 10 Note 10 Note 4,10 Note 3,10 Note 3,10 Note 10 Note 3,10 Note 10 Note 10
										(Continued)

~ 88 ~

Investor Company	Investee Company	Location	Main Businesses and Products	Investment Amount	Investment Amount	Balance as of December 31, 2020	Balance as of December 31, 2020	Balance as of December 31, 2020	Highest % of Ownership during 2020	Investee recognized	Investee recognized	Note
				December 31, 2020	December 31, 2019	Shares (Thousands)	% of Ownership	Carrying Value		Net Income (Loss) of the Investee	Investment Gain (Loss)
NSP NEVADA GES JAPAN GES CANADA MEGATWO ASSET THREE MEGASIXTEEN GES AC TEV II TEV Solar AC GES Solar NSP BVI DelSolar Cayman DelSolar Singapore NSP UK NSP System	HEYWOOD MP Solar Ventura Livermore Industrial Park Hillsboro Hashimoto JRC MUNISOL SHIMA’S WAIMEA HONOKAWAI ELEELE HANALEI KAPAA KOLOA GES AC ANDERSON N. ANDERSON S. Flora Greenfield Spiceland TEV Solar AC GES Solar Richmond Rensselaer Advance CFY CFGP NSP Stars NSP HK DelSolar HK DelSolar US NSP NEVADA URE NSP NSP Malaysia NSP Vietnam NSP Germany PV Power Park NSP Indygen Hsin Jin Optoelectronics Hsin Jin Solar Energy Si Two	US US US US US US Japan Dominican Mexico US US US US US US US US US US US US US US US US US US Cayman Islands British Virgin Islands British Virgin Islands Hong Kong Hong Kong US US US Malaysia Vietnam Germany Germany UK Taiwan Taiwan Taiwan	Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Investment company Solar operation management services Trust company Solar related business Investment company Investment company Solar related business Solar related business Technical management services Technical management services Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business	USD 1,448 USD 2,660 USD 2,465 USD 150 USD 3,100 USD 1,862 JPY - USD 9,842 USD 18,490 USD 153 USD 526 USD 418 USD 637 USD 280 USD 761 USD 569 USD 24,942 USD 13,507 USD 11,454 USD 1,915 USD 8,631 USD 1,275 USD 100 USD 19,674 USD 19,259 USD 9,933 USD 534 USD - USD - USD - USD - USD 125,200 USD 24,800 USD 5,125 USD 500 USD - USD 160 GBP - GBP 20 GBP - NTD 10,647 NTD 13,981 NTD 20,000	USD 1,448 USD 2,660 USD 2,465 USD 150 USD 400 USD 1,862 JPY 238,450 USD 7,511 USD 16,840 USD 153 USD 526 USD 418 USD 637 USD 280 USD 761 USD 569 USD 24,942 USD 13,507 USD 11,454 USD 1,915 USD 8,631 USD 1,275 USD 100 USD 19,674 USD 19,259 USD 9,933 USD 534 USD 39,000 USD 6,000 USD - USD - USD 125,200 USD 24,800 USD 5,125 USD 500 USD 760 USD 160 GBP 17 GBP 20 GBP - NTD 10,647 NTD 13,981 NTD 20,000	- - - - - - - 97 347,071 153 526 418 637 280 761 569 0 13,507 11,454 1,915 8,631 1,275 100 0 19,259 9,933 534 - - - - 125,200 3 5,125 500 - - - - - - - 2,000	45% 45% 45% 100% 100% 100% -% 40.31% 100% 100% 100% 100% 100% 100% 100% 100% 68% 100% 100% 100% 100% 100% 100% 66% 100% 100% 100% -% -% -% 100% 100% 100% 100% 100% -% 100% -% 100% 100% 80% 60% 100%	35,066 74,230 68,943 (39,547) 33,031 41,443 - 234,916 99,098 (1,440) 12,411 12,400 15,546 2,398 12,903 10,314 700,312 363,679 308,361 52,247 232,823 34,525 2,613 552,676 536,987 277,961 14,879 - - - - 210,376 334,834 57,620 14,189 - (604) - 413 109,073 11,525 15,111 19,165	45% 45% 45% 100% 100% 100% 100% 99% 100% 100% 100% 100% 100% 100% 100% 100% 68% 100% 100% 100% 100% 100% 100% 66% 100% 100% 100% -% 60% -% 100% 100% 100% 100% 100% 100% 100% 90% 100% 100% 80% 60% 100%	(10,825) (529) (327) (43,587) (56,667) (11,245) 4,476 (30,226) (325,716) (5,438) (3,166) (179) (3,497) (5,029) (8,300) (6,666) (14,378) (5,559) (4,905) (492) (2,781) (410) (22) (1,321) (1,178) 93 (6) - - - - (103,169) (85,413) (96,484) (7,366) (22) (555) 230 (299) 50,164 1,554 2,680 (271)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10,13 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 8,10 Note 8,10 Note 8,10 Note 8,10 Note 8,10 Note 8,10 Note 8,10 Note 8,10 Note 8,10 Note 8,10 Note 8,10 Note 1,5,10 Note 7,10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 9,10 Note 10 Note 10 Note 10 Note 10 Note 10
										(Continued)

~ 89 ~

Investor Company	Investee Company	Location	Main Businesses and Products	Investment Amount	Investment Amount	Balance as of December 31, 2020	Balance as of December 31, 2020	Balance as of December 31, 2020	Highest % of Ownership during 2020	Investee recognized	Investee recognized	Note
				December 31, 2020	December 31, 2019	Shares (Thousands)	% of Ownership	Carrying Value		Net Income (Loss) of the Investee	Investment Gain (Loss)
NSP System NSP HK UREE CFGP DelSolar HK DelSolar US DelSolar Wu Jiang DelSolar Development CFR USD1 CFGP (HK) NSP Stars	Tienyang Deyang Shanyang Jeyang Lianzhang Lianxi Liancheng Feng Yang XYH Suzhou UAE CFGP (HK) DelSolar Wu Jiang NSP JAPAN NSP Nanchang DelSolar Development CFR USD1 JV2 Beryl NSP Nanchang DSS-USF PHX LLC DSS-RAL LLC Rugged solar LLC DevCo One DevCo Two CFGP (Shanghai) CFY	Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan China Taiwan Hong Kong China Japan China US US US US US China US US US US US China Cayman Islands	Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Agriculture related business Solar operation management services Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar related business Solar operation management services Investment company	NTD 100 NTD 100 NTD 100 NTD 100 NTD 100 NTD 100 NTD 100 NTD 100 USD - NTD 100 USD - USD 120,000 USD - USD - USD 2,200 USD 14,370 USD 3,582 USD 830 USD - USD - USD 370 USD 835 USD - USD 444 USD 444 USD - USD -	NTD 100 NTD 100 NTD 100 NTD 100 NTD 100 NTD 100 NTD 100 NTD - USD - NTD 100 USD 530 USD 120,000 USD 97 USD 5,000 USD 4,850 USD 14,370 USD 3,582 USD 830 USD - USD 39,000 USD 1,370 USD 2,555 USD 2,784 USD 444 USD 444 USD 530 USD -	10 10 10 10 10 10 10 10 - 10 - - - - - 14,370 - - - - - - - - - - -	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% -% 100% -% -% 100% 100% 100% 67% 100% -% 100% 100% -% 40% 40% -% -%	(299) (292) (292) (292) 108 68 68 60 - 67 - 198,129 - - 20,545 (68,352) 184,523 - 144,873 - 9,883 9,553 - 1,689 1,689 - -	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 11.36% 100% 100% 100% 67% 100% 92.53% 100% 100% -% 40% 40% 100% -%	87 87 87 87 26 (13) (14) (14) - (4) - (91,463) - - (9,987) (75,114) (608) - (747) - (3,164) (7,461) - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - -	Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 10 Note 7,10 Note 10,13 Note 10 Note 10 Note 10 Note 1,2,10 Note 10 Note 10,13 Note 10 Note 10 Note 3,10 Note 1,10 Note 1,10 Note 10 Note 6,10

Note1 � It is an investments accounted for using equity method and is an affiliated enterprise or a joint venture. Except for these entities, the remaining entities are all subsidiaries of the consolidated entity.The aforementioned inter-company transactions have been eliminated in the consolidated financial statements.

Note 2�Although the Group holds more than half of JV2’s equity, according to the joint venture contract, all major management decisions of JV2 must be agreed by all directors. Therefore, the Group assess no control over JV2.

Note 3�The Group’s structured entities.

Note 4�GES USA and Telamon Enterprise Ventures (Telamon), non-related parties, established TEV II and obtained 50% of each of TEV II’s equity in the contract agreement. According to the contract, GES USA was responsible for all related projects led by TEV II and assume the risk of variable remuneration. Therefore, GES USA has control over TEV II. Additionally,GES USA purchased a 50% stake in TEV II held by Telamon in August 2020.

Note 5�The Group had executed the call option of CFY share in the first quarter of 2020, please refer to the note6(g).

Note 6�Before reaching specific conditions, NSP Stars could not adopt surplus distribution rights to CFY share �

Note 7�As of December 31 2020, the company had liquidated and dissolved.

Note 8�According to the loan contract between the Group and IMPA, the Group cannot transfer the equity of the companies before the specified date. Please refer to note6(o) for details.

Note 9�Due to organization reorganization on May 2020, NSP Germany was recognized under NSP UK before May, and its shares have been transferred to GES UK since June, becoming a 90% owned subsidiary.

Note 10�The investor disclosed the profits and losses of the investment, which include the profits and losses of the investee; therefore, no disclosure is needed from the Company.

Note 11�The abovementioned subsidiaries included in the consolidated financial report are all non-significant subsidiaries.

Note 12 � As of December 31 2020, the Group disposed of all the equity shares. Please refer to note 6(g) for details.

Note 13 � As of December 31 2020, the Group disposed of all the equity shares. Please refer to note 6(h) for details.

(Continued)

~ 90 ~

UNITED RENEWABLE ENERGY CO., LTD. AND SUBSIDIARIES INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED December 31, 2020

TABLE 10

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

TABLE 10										(In Thousands of	New Taiwan	Dollars, Unless S	tated Otherwise)
Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2020	Investment flows		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2020	Net Income (Loss) of the Investee (Note 2)	% Ownership of Direct or Indirect Investment	Highest % of Ownership during 2020	Investment Gain (Loss)	Carrying Amount as of December 31, 2020	Accumulated Repatriation of Investment Income as of December 31, 2020
					Outflow	Inflow
DelSolar Wu Jiang	Solar related business	USD 120,000 $3,371,400	Note 1	USD 120,000 $3,371,400	-	-	USD 120,000 $3,371,400	(91,463)	100%	100%	(91,463)	198,129	-
NSP Nanchang	Solar related business	USD 0 $-	Note 3	USD 5,000 $140,475	-	-	USD 5,000 $140,475	�3	-	100%	(1,395)	-	-

Accumulated Outward Remittance for Investments in Mainland China as of September 30, 2020 (US$ in Thousands)	Investment Amount Authorized by the Investment Commission, MOEA (US$ in Thousands)	Upper Limit on the Amount of Investment Stipulated by the Investment Commission, MOEA
USD 143,450 4,030,228	USD 149,618 4,203,518	8,554,159

Note 1�Investments Mainland China through a third region.

Note 2 � Subsidiaries mentioned above were recognized on the basis of unaudited financial statements as September 30, 2020. Note 3�The Group disposed of all the shares of NSP Nanchang in the third quarter of 2020. Note 4 � The exchange rate used is the rate on December 31, 2020.

~ 91 ~