United Renewable Energy (“URE”, or “the Company”, 3576 TT), announced December 2019 revenue of NT$1,678 million, a significant growth of 38.4% MoM, and growth of 8% compare to same period last year. The increase is due to strong growth in system business which reaches its peak in revenue contribution in 2019. The developed PV projects on hand are about 300MW, with another 500MW-600MW in pipeline. URE sold system project in central of Taiwan to an International Energy Investment Fund, URE continued to develop second phase of that project with size around 50MW, which expected to be complete this year. At same time, URE continued to construct system projects all over Taiwan, which include rooftop, ground and pond system projects. After construction, URE will continued to provide and responsible for operation and maintenance service for 20 years after the sale.
The Year-to-Date cumulative revenue reached NT$18,282 million as of December 2019, a 40.8% increase in YoY terms as opposed to NT$12,984 million of year 2018. The increase was a result of strategy shift that lead to stronger module and system business. As the large system projects faces difficulties such as acquire land ownership and related restrictions, it also involved much effort in completing preliminary work for those projects, therefore we see delay in construction of large PV system projects in 2019. According to Energy Trend, the accumulated installed PV capacities only reach 955MW in 2019. The outlook for 2020, the Feed-In Tariff only slightly decline by 3%, and Ministry of Economic Affairs plan to push accumulated PV installed capacity to reach 6.5GW, this means about 550MW of PV capacity will be install every quarter according to Energy Trend, this stimulus will increase the speed of development for large PV projects, this will increase growth of module shipment and revenue, URE will maintain our number 1 position in the market, with over 50% of market shares in terms of module shipment, the market growth potential will drive URE module’s explosive growth momentum.