URE Board of Directors Approved Disposal of Jhunan Kebei Manufacturing Facility And Sale of Shares of Neo Cathay Power, The Gain on Disposals Expected To Be Around NT$240 Million and NT$110 Million Respectively

United Renewable Energy (“URE”, or “the Company”, 3576 TT), announced that Board of Directors approved disposal of Jhunan Kebei manufacturing facility in order to further consolidate production, the deal is expected to be around NT$1.04 billion, and transfer will be complete before end of the year. URE will continue to produce solar cell and module in other production sites in Taiwan, and module production will adjust to meet market demand. At same time, Board also approved sale of shares of Neo Cathay Power to Cathay Insurance or affiliate, the deal is expected to be around NT$710 million, and deal is expected to be complete in third quarter of 2020.

URE transforms to focus on own-brand module and solar system business, the solar cell production was adjusted according to changes in the market. In order to further consolidate production and fully utilize assets, Board approved disposal of Jhunan Kebei manufacturing facility, the buyer is Taiwan Mask Corporation, the deal is expected to be around NT$1.04 billion and gain on disposal is around NT$240 million. This deal will be completed before end of the year, and it could lower the debt ratio, depreciation and interest expenses, strengthen financial structure.

URE’s Board of Directors also approved sale of shares of Neo Cathay Power to Cathay Insurance or affiliate for NT$710 million, the gain on disposal is around NT$110 million, it is expected to be completed by third quarter of 2020. Neo Cathay Power was established in 2016, total capital amount to NT$1.5 billion, it focus on investment, construction and operation management of domestic solar projects, it currently holds around 98 solar projects. As URE planned to invest and develop more domestic solar projects, URE decided to sale shares of Neo Cathay Power to Cathay Insurance or affiliate. In the future, URE will co-operate with Cathay Insurance to invest and develop more solar projects, URE will also continued to manage operation of solar projects hold by Neo Cathay Power. At same time, URE is working with other insurance companies to develop large solar projects, accelerate development of Taiwan renewable energy, and assisting Taiwan in playing an important role in Asia’s renewable energy sector.