Taiwan Cogeneration Corporation and Subsidiaries

Consolidated Financial Statements for the Six Months Ended June 30, 2023 and 2022 and Independent Auditors' Review Report

Emphasis of Matter

For details on Taiwan Power Company's filing of a civil lawsuit against the Group's associates, Sun Ba Power Corporation, Star Energy Power Corporation, Star Buck Power Corporation and Kuo Kuang Power Company Ltd., in connection with their alleged violation of the Fair Trade Act and request for compensation on the basis of claims for damages that it has suffered, refer to Note 38 (d). Our review conclusion is not modified in respect of this matter.

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

Deloitte & Touche

Taipei, Taiwan

Republic of China

August 9, 2023

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.

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

- 2 -

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

ASSETS

June 30, 2023

December 31, 2022

June 30, 2022

Amount

%

Amount

%

Amount

%

CURRENT ASSETS

Cash and cash equivalents (Note 6)

$

3,736,272

14

$

3,734,653

15

$

2,676,083

11

Financial assets at amortized cost (Notes 7, 8 and 37)

20,339

-

20,341

-

337

-

Contract assets (Notes 25, 27 and 36)

2,128,582

8

1,959,825

8

2,422,614

10

Notes receivable (Notes 9, 27 and 36)

-

-

-

-

652

-

Accounts receivable (Notes 9 and 27)

333,998

2

521,402

2

138,409

1

Accounts receivable from related parties (Notes 27 and 36)

321,344

1

151,212

1

75,973

-

Finance lease receivables (Notes 10 and 36)

10,375

-

10,324

-

10,319

-

Dividends receivable (Note 14)

330,985

1

-

-

383,376

2

Other receivables (Note 36)

15,842

-

36,885

-

11,754

-

Inventories (Note 11)

13,742

-

18,104

-

12,376

-

Prepaid construction costs (Note 25)

4,510

-

46,184

-

17,484

-

Prepaid value-added tax

120,021

1

102,751

1

97,563

1

Other current assets

52,783

-

34,523

-

36,072

-

Total current assets

7,088,793

27

6,636,204

27

5,883,012

25

NON-CURRENT ASSETS

Financial assets at fair value through other comprehensive income (Notes 12 and 35)

264,920

1

277,120

1

269,310

1

Financial assets at amortized cost (Notes 7, 8 and 37)

24,350

-

34,104

-

30,071

-

Investments accounted for using the equity method (Note 14)

13,779,389

52

13,004,719

52

12,343,566

52

Property, plant and equipment (Notes 15 and 37)

3,691,256

14

3,231,917

13

3,225,404

14

Right-of-use assets (Note 16)

413,436

2

417,718

2

432,807

2

Goodwill

141,014

-

141,014

-

141,014

1

Intangible assets (Notes 17 and 37)

910,282

3

937,452

4

874,879

4

Deferred income tax assets (Note 4)

191,353

1

188,007

1

196,759

1

Prepayments for equipment

-

-

7,149

-

2,364

-

Finance lease receivables (Notes 10 and 36)

6,125

-

11,325

-

16,576

-

Refundable deposits

66,191

-

69,134

-

78,503

-

Other non-current assets (Note 18)

20,009

-

20,537

-

21,066

-

Total non-current assets

19,508,325

73

18,340,196

73

17,632,319

75

TOTAL

$

26,597,118

100

$

24,976,400

100

$

23,515,331

100

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Short-term borrowings (Notes 19 and 37)

$

42,000

-

$

67,000

-

$

5,000

-

Short-term bills payable (Note 19)

999,725

4

999,276

4

999,699

4

Contract liabilities (Notes 25, 27 and 36)

284,012

1

583,082

3

153,735

1

Accounts payable

154,202

1

156,870

1

102,339

1

Construction costs payable

3,293,638

12

3,220,782

13

3,044,271

13

Accounts payable to related parties (Note 36)

2,382

-

2,045

-

2,665

-

Dividends payable (Note 26)

618,501

2

-

-

1,030,835

4

Other payables (Notes 21 and 36)

247,915

1

315,915

1

331,179

1

Current income tax liabilities (Note 4)

42,609

-

70,657

-

43,805

-

Provisions (Notes 23 and 25)

274,492

1

259,197

1

270,449

1

Lease liabilities (Notes 16 and 36)

65,672

-

53,315

-

45,420

-

Current portion of long-term borrowings (Notes 19 and 37)

166,938

1

947,393

4

145,038

1

Other current liabilities

15,916

-

24,905

-

6,790

-

Total current liabilities

6,208,002

23

6,700,437

27

6,181,225

26

NON-CURRENT LIABILITIES

Long-term borrowings (Notes 19 and 37)

1,723,562

7

3,127,031

13

2,992,400

13

Contract liabilities (Note 27)

151,475

1

122,188

1

90,159

-

Lease liabilities (Notes 16 and 36)

409,364

2

424,382

2

445,530

2

Bonds payable (Note 20)

2,498,200

9

2,497,884

10

2,497,568

11

Provisions (Note 23)

14,452

-

14,296

-

14,138

-

Deferred income tax liabilities (Note 4)

68,614

-

70,691

-

71,626

-

Net defined benefit liabilities (Notes 4 and 24)

113,105

-

112,088

-

124,999

1

Guarantee deposits received

55,525

-

41,297

-

39,612

-

Other liabilities (Note 22)

15,943

-

15,866

-

15,782

-

Total non-current liabilities

5,050,240

19

6,425,723

26

6,291,814

27

Total liabilities

11,258,242

42

13,126,160

53

12,473,039

53

EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Notes 4, 26 and 31)

Share capital

Ordinary shares

6,890,486

26

5,890,486

24

5,890,486

25

Share dividends to be distributed

412,334

1

-

-

-

-

Total share capital

7,302,820

27

5,890,486

24

5,890,486

25

Capital surplus

2,627,120

10

499,694

2

499,694

2

Retained earnings

Legal reserve

1,828,961

7

1,737,133

7

1,737,133

7

Special reserve

2,435,361

9

2,621,945

10

2,621,945

11

Unappropriated earnings

983,336

4

958,281

4

156,263

1

Total retained earnings

5,247,658

20

5,317,359

21

4,515,341

19

Other equity

2,216

-

(14,130)

-

(18,038)

-

Total equity attributable to owners of the Corporation

15,179,814

57

11,693,409

47

10,887,483

46

NON-CONTROLLING INTERESTS

159,062

1

156,831

-

154,809

1

Total equity

15,338,876

58

11,850,240

47

11,042,292

47

TOTAL

$

26,597,118

100

$

24,976,400

100

$

23,515,331

100

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated August 9, 2023)

- 3 -

TAIWAN COGENERATION CORPORATION AND SUBSIDIARIES

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

For the Three Months Ended June 30

For the Six Months Ended June 30

2023

2022

2023

2022

Amount

%

Amount

%

Amount

%

Amount

%

OPERATING REVENUE (Notes 27

and 36)

Sales

$ 346,467

23

$ 305,748

32

$ 808,751

32

$ 633,604

34

Construction services

1,044,966

71

622,497

64

1,635,274

64

1,145,216

62

Operations, maintenance and

6

42,937

4

116,130

4

82,559

4

consulting services

84,510

Total operating revenues

1,475,943

100

971,182

100

2,560,155

100

1,861,379

100

OPERATING COSTS (Notes 24, 28

and 36)

Cost of sales

351,780

24

297,264

31

696,691

27

573,147

31

Construction services

959,831

65

510,798

52

1,501,185

59

998,655

54

Operations, maintenance and

consulting services

80,081

5

41,684

4

110,779

4

81,128

4

Total operating costs

1,391,692

94

849,746

87

2,308,655

90

1,652,930

89

GROSS PROFIT

84,251

6

121,436

13

251,500

10

208,449

11

(UNREALIZED) REALIZED GAIN

ON TRANSACTIONS WITH

ASSOCIATES

(9,143)

(1)

3,208

-

(4,285)

-

5,673

1

REALIZED GROSS PROFIT

75,108

5

124,644

13

247,215

10

214,122

12

OPERATING EXPENSES (Notes 4,

24, 28 and 36)

198,342

13

86,906

9

305,815

12

176,800

10

(LOSS) PROFIT FROM

OPERATIONS

(123,234)

(8)

37,738

4

(58,600)

(2)

37,322

2

NON-OPERATING INCOME AND

EXPENSES

Interest income

9,216

1

719

-

12,265

-

795

-

Other income (Notes 28 and 36)

10,643

1

10,127

1

15,513

1

14,724

1

Other gains and losses (Note 28)

9,000

-

(8,817)

(1)

12,621

-

16,205

1

Finance costs (Note 28)

(28,127)

(2)

(18,225)

(2)

(57,326)

(2)

(36,037)

(2)

Share of profit of associates

accounted for using the equity

method (Note 14)

419,122

28

(164,532)

(17)

1,074,100

42

130,140

7

Total non-operating income

and expenses

419,854

28

(180,728)

(19)

1,057,173

41

125,827

7

PROFIT (LOSS) BEFORE INCOME

TAX

296,620

20

(142,990)

(15)

998,573

39

163,149

9

INCOME TAX EXPENSE (Notes 4

and 29)

(13,326)

(1)

(19,709)

(2)

(35,208)

(2)

(38,669)

(2)

NET PROFIT (LOSS)

283,294

19

(162,699)

(17)

963,365

37

124,480

7

(Continued)

- 4 -

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TCC – Taiwan Cogeneration Corp. published this content on 13 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 October 2023 06:07:11 UTC.