EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES AUDITOR S REPORT AND INTERIM FINANCIAL STATEMENT FOR THE SIX-MONTH PERIOD ENDED JUNE 30,

Transcription

1 EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES AUDITOR S REPORT AND INTERIM FINANCIAL STATEMENT FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2018

2

3 EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT JUNE 30, 2018 ASSETS Jun 30, 2018 Dec 31, 2017 Jan 1, 2017 Jun 30, 2018 Dec 31, 2017 (Unaudited) (Audited) (Audited) (Unaudited) (Audited) Note (Reviewed) (Restated) (Reviewed) CURRENT ASSETS Cash and cash equivalents 195,381, ,060, ,461, ,766, ,559, Temporary investments 7 23,199, ,010, ,984,913, Trade accounts and other current receivable - net 6.2, 8 337,952, ,579, ,597, ,594, ,532, Short-term loans to related parties , ,399,065, ,270,077, Current portion of Long-term loans to indirect associated companies ,776, ,776, Long-term loans to employees 2,081, ,180, ,317, ,081, ,168, Inventories - net 9 64,246, ,517, ,505, ,599, ,517, Construction in Progress Construction in Progress - finance lease ,120, ,040, Construction in Progress - installation service contract - 712, Other current assets 20,414, ,161, ,903, , , Total current assets 824,306, ,038, ,240,699, ,699,247, ,746,016, NON-CURRENT ASSETS Deposit at banks held on collateral ,184, ,679, Long-term investment 364, , , , , Investment in subsidiary ,049,960, ,049,960, Investment in joint entity ,391, Investment in associated companies 13 3,494,055, ,356,843, Long-term loans to employees - net 1,629, ,915, ,636, ,629, ,915, Property, plant and equipment - net 14 3,615,189, ,282,614, ,668,833, ,370, ,836, Intangible assets - net ,208, ,687, ,522, Deferred tax assets 16 6,617, ,199, ,837, ,031, ,697, Other non-current assets 162,608, ,351, ,087, ,381, ,371, Total non-current assets 8,047,859, ,541,712, ,689,679, ,338,739, ,349,203, TOTAL ASSETS 8,872,165, ,507,751, ,930,378, ,037,987, ,095,219, Condensed notes to the interim financial information are an integral part of these interim financial information. Page 1 of 38

4 EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION (Con't) AS AT JUNE 30, 2018 LIABILITIES AND SHAREHOLDERS' EQUITY Jun 30, 2018 Dec 31, 2017 Jan 1, 2017 Jun 30, 2018 Dec 31, 2017 (Unaudited) (Audited) (Audited) (Unaudited) (Audited) Note (Reviewed) (Restated) (Reviewed) CURRENT LIABILITIES Bank overdraft and short-term loans from financial institutions ,203, ,000, ,496, ,139, ,908, Discounted bills of exchange ,000, ,000, ,000, ,000, ,000, Trade accounts and other current payable 6.2, ,822, ,858, ,496, ,134, ,473, Short-term loans from persons and other company 128,826, ,896, Short-term loan from related party ,000, ,000, Current portion of Long-term loans from financial institutions ,389, ,159, ,705, ,200, ,250, Long-term loans from other company 29,151, ,195, Debentures 328,000, ,000, Finance lease liabilities , Provisions for employee benefit , , , , , Accrued corporate income tax 3,564, ,219, , ,666, Accrued dividend paid 1,153, , ,219, ,153, , Other current liabilities 28,476, ,001, ,191, ,490, ,202, Total current liabilities 1,682,840, ,311,491, ,616,412, ,020,913, ,868, NON-CURRENT LIABILITIES Long-term loans from financial institutions - net 20 1,724,922, ,412,611, ,495, ,048, ,000, Debentures 2,849,400, ,234,100, ,418,700, ,400, ,400, Provisions for employee benefit - net 21 31,292, ,166, ,302, ,187, ,469, Provision for liabilities from commitment 46,213, ,213, ,213, ,213, ,213, Other non-current liabilities 1,235, ,235, , Total non-current liabilities 4,653,062, ,723,326, ,122,712, ,911, ,083, TOTAL LIABILITIES 6,335,903, ,034,817, ,739,124, ,598,824, ,619,951, SHAREHOLDER'S EQUITY Share capital Authorized share capital 836,030,770 common shares in 2018 and 937,716,283 common shares in 2017 of Baht 1.00 each 836,030, ,716, ,283, ,030, ,716, Issued and paid-up share capital 836,030,770 common shares in 2018 and 2017 of Baht 1.00 each 836,030, ,030, ,585, ,030, ,030, Share premium - common shares 365,101, ,101, ,982, ,101, ,101, Share premium - treasury stock 6,017, ,017, ,017, ,017, ,017, Retained earnings Appropriated Legal reserve 83,603, ,603, ,558, ,603, ,603, Unappropriated 407,294, ,071, ,817, ,409, ,515, Other components of shareholders' equity 427,045, ,446, ,257, Total equity of the Company 2,125,092, ,108,271, ,896,218, ,439,162, ,475,268, Non-controlling interests 411,169, ,662, ,035, TOTAL SHAREHOLDERS' EQUITY 2,536,262, ,472,933, ,191,254, ,439,162, ,475,268, TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 8,872,165, ,507,751, ,930,378, ,037,987, ,095,219, Condensed notes to the interim financial information are an integral part of these interim financial information. Page 2 of 38

5 EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE-MONTH PERIOD ENDED JUNE 30, Note (Classified) REVENUES Revenues from sales and services ,124, ,361, ,347, ,387, Other income Government grant 55,162, ,456, Interest income , , ,006, ,633, Other ,298, , , ,120, Total revenues 274,144, ,196, ,552, ,140, EXPENSES Cost of sales and services 134,563, ,438, ,935, ,656, Distibution Costs 3,132, ,386, ,073, ,282, Administrative expenses 30 40,011, ,200, ,124, ,262, Finance cost 30 58,357, ,460, ,108, ,880, Total expenses 236,064, ,485, ,242, ,082, Share of profit (loss) on investment in associated companies (27,606,301.48) 50,881, PROFIT BEFORE INCOME TAX 10,473, ,592, ,309, ,058, Income tax expenses 16.3 (2,436,776.99) (3,195,182.02) (2,462,165.36) (3,211,630.04) NET PROFIT FOR THE PERIOD 8,036, ,397, ,847, ,846, OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) to be reclassified to profit or loss in subsequent periods : Currency conversion differences of forign operation (46,493,645.79) 16,896, Total other comprehensive income (loss) for the period - net (46,493,645.79) 16,896, TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD (38,456,863.70) 92,293, ,847, ,846, Net income (loss) attributable to : Owners of the Company 8,619, ,067, Non-controlling interests (582,674.80) 13,330, Net income for the period 8,036, ,397, Comprehensive income (loss) attributable to : Owners of the Company (37,874,188.90) 78,963, Non-controlling interests (582,674.80) 13,330, Comprehensive income (loss) for the period (38,456,863.70) 92,293, Basic earnings Basic earnings per share Equity holders of the parent company Condensed notes to the interim financial information are an integral part of these interim financial information. Page 3 of 38

6 EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME (Con't) FOR THE SIX-MONTH PERIOD ENDED JUNE 30, Note (Classified) REVENUES Revenues from sales and services ,422, ,984, ,115, ,169, Other income Government grant 105,788, ,942, Interest income 6.1 1,043, ,081, ,398, ,728, Dividend income 23, , Other ,477, ,101, ,624, ,199, Total revenues 544,754, ,109, ,162, ,096, EXPENSES Cost of sales and services 272,303, ,738, ,506, ,433, Distibution Costs 6,160, ,609, ,042, ,505, Administrative expenses 30 71,824, ,708, ,817, ,402, Finance cost ,495, ,251, ,325, ,703, Total expenses 464,783, ,308, ,691, ,044, Share of profit on investment in associated companies ,495, ,032, PROFIT BEFORE INCOME TAX 212,466, ,834, ,471, ,051, Income tax expenses 16.3 (7,750,185.87) (8,459,952.93) (7,694,823.86) (8,610,517.41) NET PROFIT FOR THE PERIOD 204,716, ,374, ,776, ,441, OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) to be reclassified to profit or loss in subsequent periods : Currency conversion differences of forign operation (74,400,873.40) 13,211, Total other comprehensive income (loss) for the period - net (74,400,873.40) 13,211, TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 130,315, ,585, ,776, ,441, Net income attributable to : Owners of the Company 158,104, ,834, Non-controlling interests 46,611, ,539, Net income for the period 204,716, ,374, Comprehensive income attributable to : Owners of the Company 83,703, ,046, Non-controlling interests 46,611, ,539, Comprehensive income for the period 130,315, ,585, Basic earnings Basic earnings per share Equity holders of the parent company Condensed notes to the interim financial information are an integral part of these interim financial information. Page 4 of 38

7 EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2018 (Unaudited) (Reviewed) Owner of the Company Retained earnings Other components of shareholders' equity Currency Surplus Total equity Issued and Share premium conversion Surplus from the edge Total other attributable paid-up - common Share premium Appropriated differences from change share value companents of to shareholders' Note share capital shares - treasury shares Legal reserve Unappropriated foreign operation in equity interest of subsidiaries shareholders' equity equity Non-controlling interests Total shareholders equity Beginning balance as at January 1, 2017 (Restated) 765,585, ,982, ,017, ,558, ,817, ,268, (27,011,571.52) 450,000, ,257, ,896,218, ,035, ,191,254, Transactions with owners, recorded directly in shareholders' equity Contributions by and distributions to owners of the parent : Purchase of warrants 13, , , , Dividend paid 22 30,621, (61,246,832.48) (30,625,152.48) - (30,625,152.48) Changes in ownership interests in subsidiaries : Non-controlling interests in subsidiaries decreased Investments in subsidiaries ,556, ,556, Total transactions with owners, recorded directly in shareholders' equity 30,634, , (61,246,832.48) ,511, ,556, ,045, Comprehensive income for the period Profit ,834, ,834, ,539, ,374, Other comprehensive income ,211, ,211, ,211, ,211, Total comprehensive income for the period ,834, ,211, ,211, ,046, ,539, ,585, Legal reserve ,062, (3,062,168.00) Ending balance as at June 30, 2017 (Restated) 796,220, ,083, ,017, ,620, ,343, ,480, (27,011,571.52) 450,000, ,468, ,010,753, ,131, ,345,885, Beginning balance as at January 1, 2018 (Before restated) 836,030, ,101, ,017, ,603, ,588, ,397, (27,011,571.52) 450,000, ,385, ,109,726, ,169, ,474,896, Cumulative effect of correction of significant errors for : (1,516,466.45) 61, , (1,455,394.86) (507,332.07) (1,962,726.93) Ending balance as at January 1, 2018 (Restated) 836,030, ,101, ,017, ,603, ,071, ,458, (27,011,571.52) 450,000, ,446, ,108,271, ,662, ,472,933, Transactions with owners, recorded directly in shareholders' equity Contributions by and distributions to owners of the parent : Dividend paid (66,882,461.60) (66,882,461.60) (104,465.93) (66,986,927.53) Total transactions with owners, recorded directly in shareholders' equity (66,882,461.60) (66,882,461.60) (104,465.93) (66,986,927.53) Comprehensive income (loss) for the period - Profit ,104, ,104, ,611, ,716, Other comprehensive loss (74,400,873.40) - - (74,400,873.40) (74,400,873.40) - (74,400,873.40) Total comprehensive income (loss) for the period ,104, (74,400,873.40) - - (74,400,873.40) 83,703, ,611, ,315, Ending balance as at June 30, ,030, ,101, ,017, ,603, ,294, ,057, (27,011,571.52) 450,000, ,045, ,125,092, ,169, ,536,262, Condensed notes to the interim financial information are an integral part of these interim financial information Page 5 of 38

8 EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Con't) FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2018 (Unaudited) (Reviewed) Retained earnings Issued and Share premium - Share premium - Appropriated Note paid-up share capital common shares treasury shares Legal reserve Unappropriated Total shareholders' equity Beginning balance as at January 1, ,585, ,982, ,017, ,558, ,917, ,478,060, Transactions with owner,recorded directly in shareholders'equity Contributions by and distributions to owners of the company : Sale of warrants 13, , , Dividend paid 22 30,621, (61,246,832.48) (30,625,152.48) Total comprehensive income for the period ,441, ,441, Legal reserve ,062, (3,062,168.00) - Ending balance as at June 30, ,220, ,083, ,017, ,620, ,049, ,481,991, Beginning balance as at January 1, ,030, ,101, ,017, ,603, ,515, ,475,268, Transactions with owner,recorded directly in shareholders'equity Contributions by and distributions to owners of the company : Dividend paid (66,882,461.60) (66,882,461.60) Total comprehensive income for the period ,776, ,776, Ending balance as at June 30, ,030, ,101, ,017, ,603, ,409, ,439,162, Condensed notes to the interim financial information are an integral part of these interim financial information. Page 6 of 38

9 EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2018 (Unaudited) (Reviewed) Note (Restated) CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax 212,466, ,834, ,471, ,051, Reconciliation of net profit to net cash Provided by (used in) operating activities : Depreciation 14 70,655, ,957, ,295, ,956, Amortization of intangible assets 15 9,541, ,513, Provision for impairment of plant and equipment (reverse) 14 (165,113.48) (164,406.07) (165,113.48) (164,406.07) Written-off assets to expenses 258, , Loss (gain) on disposal of temporary investments (2,081.06) (11,872,465.51) (480.68) (4,809,225.75) Unrealized loss (gain) on investments incremental value 57, ,632, , ,720, Loss (gain) from disposal of fixed assets - (2,437,829.26) - (2,437,829.26) Unrealized loss (gain) from exchange rate 38,557, ,353, ,206, ,344, Share of loss (profit) on investment in associated company 13 (132,495,776.38) (64,032,603.57) - - Provision for employee benefits 21 2,292, ,098, ,873, ,723, Interest income (1,043,178.42) (1,081,659.16) (36,398,692.78) (6,728,157.44) Dividend income (23,000.00) - (23,000.00) Interest expenses 110,633, ,530, ,222, ,083, Profit provided by operating activities before changes in operating assets and liabilities 310,734, ,234, ,539, ,740, Decrease (increase) in operating assets :- Trade accounts and other current receivable 138,598, (30,688,659.04) 150,746, (82,301,571.15) Inventories 26,986, ,181, ,917, ,653, Construction in Progress - finance lease (4,080,312.83) (68,559,064.68) - - Construction in Progress - Installation service contract 712, Other current assets 14,747, ,669, , , Other non-current assets (40,539,283.57) (31,374,229.92) (4,685.70) (46,195.25) Increase (decrease) in operating liabilities :- Trade accounts and other current payable (7,399,497.64) (47,374,553.70) 3,841, (1,031,091.31) Other current liabilities 2,474, ,291, ,288, ,232, Employee benefit expenses 21 (110,910.00) - (110,910.00) - Other non-current liabilities , Cash provided by (used in) operating activities 442,123, ,380, ,303, (14,664,020.27) Income tax paid (15,594,059.09) (5,086,160.10) (5,368,242.52) (4,901,496.58) Net cash provided by (used in) operating activities 426,529, ,294, ,934, (19,565,516.85) Condensed notes to the interim financial information are an integral part of these interim financial information. Page 7 of 38

10 EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENT OF CASH FLOWS (Con't) FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2018 (Unaudited) (Reviewed) Note (Restated) CASH FLOWS FROM INVESTING ACTIVITIES Investment in indirect subsidiary - (1,987,111,321.34) - - Investment in associate (4,716,000.00) Short-term loans to subsidiary (169,187,970.65) (716,540,000.00) Receipt of short-term loans to subsidiary ,200, ,313, Short-term loan to related party 6.2 (200,000.00) Receipt of short-term loans to related party , Long-term loans to employees (1,142,000.00) (1,677,000.00) (1,142,000.00) (1,647,000.00) Receipt of long-term loans to employees 1,526, ,804, ,514, ,780, Cash paid for purchase of temporary investments (44,044,480.34) (1,641,511,126.92) (21,300,000.00) (1,423,490,000.00) Cash received from disposal of temporary investments 47,857, ,860,717, ,300, ,296,025, Cash paid for purchase of fixed assets 14 (406,205,531.25) (184,379,450.37) (2,664,737.08) (14,992,658.48) Cash received from disposal of fixed assets 155, ,465, ,465, Cash paid for purchase of intangible assets - (185,312,026.87) - - Dividend income 23, , Interest received 1,070, , ,590, ,627, Net cash provided by (used in) investing activities (405,608,146.76) (1,134,058,175.88) (94,666,361.12) (679,457,348.12) CASH FLOWS FROM FINANCING ACTIVITIES Bank overdraft and short-term loans from financial institutions - (15,584,984.98) (164,975,123.96) 45,252, Cash paid for short-term loans from related party - (14,865,112.65) - - Cash received from short-term loans from other party increase - 14,865, Cash received from debenture - 815,400, ,400, Cash paid from debenture (56,700,000.00) Deposit at banks held on collateral (4,505,106.93) Cash paid for short-term loans from financial institutions increase (35,303,191.35) Cash received from long-term loans from financial institutions ,283, ,500, ,248, ,000, Cash paid for long-term loans from financial institutions 20 (113,838,841.92) (93,781,204.76) (5,250,000.00) (20,100,000.00) Cash paid from loans from related party 6.2 (30,000,000.00) - (30,000,000.00) - Cash paid from loans from other company (69,764.87) Cash received from discounted bills of exchange ,000, ,000, ,000, ,000, Repayments of discounted bills of exchange 18 (480,000,000.00) - (480,000,000.00) - Cash paid for financial lease - (33,424.92) - - Cash received from capital increase - 30,735, ,735, Non-controlling interests (104,465.92) Dividend paid (66,691,117.28) (61,119,978.40) (66,680,463.04) (61,135,728.40) Interest paid (143,270,274.71) (78,532,613.83) (31,403,798.22) (9,446,300.73) Net cash provided by (used in) financing activities 89,800, ,583, (134,061,385.22) 825,706, Currency conversion differences (74,400,873.40) 13,211, Cash received from investment in subsidiaries - 1,665, Cash and cash equivalents increase (decrease) 36,321, (208,303,089.11) 1,207, ,683, Cash and cash equivalents as at beginning balance 159,060, ,461, ,559, ,299, Cash and cash equivalents as at ending balance 195,381, ,158, ,766, ,983, Condensed notes to the interim financial information are an integral part of these interim financial information. Page 8 of 38

11 EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENT OF CASH FLOWS (Con't) FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2018 (Unaudited) (Reviewed) Note (Restated) Supplemental disclosures of cash flows information (Unit : million baht) 1. Non - cash items Purchase of fixed assets on credit Unutilized credit facilities for future working capital 1, , Increased stock dividend Condensed notes to the interim financial information are an integral part of these interim financial information. Page 9 of 38

12 EASTERN PRINTING PUBLIC COMPANY LIMITED AND SUBSIDIARIES CONDENSED NOTES TO THE INTERIM FINANCIAL INFORMATION FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2018 (UNAUDITED BUT REVIEWED) 1. GENERAL INFORMATION The Company was incorporated as a limited company under law of Thailand on August 1, 1990, and transform to public company on August 13, The Head Office is located at 51/29 and 51/61, Soi Vibhavadi Rangsit 66 (Siamsamakee), Vibhavadi Rangsit Road, Talad Bangkhen, Laksi, Bangkok, Thailand. The Company is engaged in printing business and invesment in solar power energy business. The subsidiaries and associates in corporate in the Condensed Note to the interim financial information. 2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS 2.1 Basis of preparation of interim financial statements The statutory interim financial statements are prepared in the Thai language. This English translation of the financial statements has been prepared for the convenience of readers not conversant with the Thai language. The interim financial statements are presented on a condensed basis in accordance with Thai Accounting standard No. 34 (Revised 2017), Interim Financial Statements, including related interpretations and guidelines promulgated by the Federation of Accounting Professions and the Rules of the Stock Exchange of Thailand in connection with accounting. However, the Company and its subsidiaries have presented the statements of financial position, comprehensive income, changes in shareholders' equity, and cash flows in the same format as that used for the annual financial statements. The notes to interim financial information are prepared in a condensed format. The interim financial statements have been prepared in order to provide additional information of financial statements for the year ended December 31, The interim financial statements do not include all of the financial information required for full annual financial statements but focus on new activities, events and new situation and will not present information repeatedly from those has already been disclosed. Therefore, these interim financial statements shall be read collectively with the financial statements for the year ended December 31, The interim financial statements are presented in Thai Baht, which is the Company and its subsidiaries functional currency unless otherwise stated. 2.2 Basis of preparation of consolidated interim financial statements The consolidated interim financial statements include the financial statements of Eastern Printing Public Company Limited, subsidiaries and associates in corporate are prepared on the same basis as the consolidated financial statements for the year ended December 31, 2017, with no structural changes related to subsidiaries occurring during the current period. Page 10 of 38

13 2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS (Con t) 2.2 Basis of preparation of consolidated interim financial statements (Con t) The details of subsidiaries as and assosciates follows : Subsidiary held by company : Eastern Power Group Public Company Limited Indirect subsidiaries held by subsidiary : RPV Energy Co., Ltd. Solar Power Management (Thailand) Co., Ltd. Epco Energy Co., Ltd. That Siri Co., Ltd. STC Energy Co., Ltd. APEX Energy Solution Co., Ltd. Epco Engineering Co., Ltd. Indirect subsidiaries held by indirect subsidiary : Epco Green Power Plus Co., Ltd. Operation Percentage of Holdings Type of business Location Jun 30, 2018 Dec 31, 2017 Investment in other companies and solar power energy Investment in other companies and solar power energy Investment in other companies and development in energy project in Japan Investment in development in energy project in Japan Investment in other companies and cogen power energy Investment in other companies and cogen power energy Investment in other companies and cogen power energy Maintenance and installation service contract in solar power energy Thai Thai Thai Thai Thai Thai Thai Thai Solar power energy and installation service Thai and rental power plants system JKR Energy Co., Ltd. Solar power energy Thai Aquatist Energy Co., Ltd. Investment in other companies and solar Thai power energy Lopburi Solar Co., Ltd. Solar power energy Thai Prachin Solar Co., Ltd.* Solar power energy Thai Alternative Energies Kabushiki Kaisha (Jpn Co.) Investment in other companies and Japan development in energy project in Japan Kurihara Godo Kaisha (Jpn Co.) Development in energy project in Japan Japan AE Power Godo Kaisha (Jpn Co.) Development in energy project in Japan Japan Higashi Nihon Mega Solar 3 Godo Kaisha (Jpn Co.) Development in energy project in Japan Japan Kyotemba Solar Godo Kaisha (Jpn Co.)* Development in energy project in Japan Japan - - Associate held by direct subsidiary and indirect associate: PPTC Co., Ltd.** Cogen power energy Thai Associate held by indirect subsidiary and indirect associate : SSUT Co., Ltd.*** Cogen power energy Thai Assosiate held by indirect subsidiaries : TAC Energy Co., Ltd.**** Investment in other companies and cogen power energy Thai Page 11 of 38

14 2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS (Con t) 2.2 Basis of preparation of consolidated interim financial statements (Con t) The details of subsidiaries as and assosciate follows : (Con t) * The Company and its subsidiary participates in controlling power, thus it is considered as subsidiary under the definition specified in Thai Accounting Standard. ** An associate company in Eastern Power Group Plc and TAC Energy Co., Ltd. *** An associate company in That Siri Co., Ltd. and TAC Energy Co., Ltd. **** Eastern Power Group Plc does not have control because it indirectly holds shares through 2 subsidiaries (SSUT Co., Ltd and APEX Energy Solution Co., Ltd.) and have 2 representative as authorized director from 4 authorized directors 2.3 Principles of separate financial statements The separate financial statement, which present investment in subsidiaries under the cost method, have been prepared solely for the benefit of the public. 3. Correction of an error The subsidiary in Japan corrected error in recording a loan from a company account. On purchasing Higashi Nihon Mega Solar 3 G.K. ( HNMS3 G.K. ) in January 2017, the subsidiary incorrectly offset a loan of Yen 96 million from Nishi Nihon Mega Solar 5 G.K. ( NNMS5 G.K. ) to HNMS3 G.K. against the FIT purchased. During the first quarter of 2018, NNMS5 G.K. had reguested the subsidiary for a repayment of the loan including interest incurred at a rate of 14% per annum. The subsidiary in Japan thereby discovered that it did not record this loan. The error has been corrected by increasing intangible assets and loans payable by Yen 96 million and recording the related interest expense and accrued interest in July For the year ended 31 December 2017, accrued interest payable and accumulated deficit increased by Yen 6,701, (Baht 1,994,059.54), equal. The error did not have an impact on profit and loss, comprehensive income or cash flows for the sixmonths ended June 30, ADOPTION OF NEW ACCOUNTING STANDARDS 4.1 Adoption of new accounting standards effective in the current period In current period, the Company and its subsidiaries have applied the revised Thai Accounting Standards (TAS), Thai Financial Reporting Standard (TFRS) and Interpretations (SIC and TFRIC) (revised 2017) as announced by the Federation of Accounting Professions which the Company and its subsidiaries disclosed in the notes to the financial statements for the year ended December 31, The above-mentioned standards were aimed at alignment with the corresponding International Financial Reporting Standards, with most of the changes directed towards revision of wording and terminology, provision of interpretations and accounting guidance to users of accounting standards and clarifications directed towards disclosures in the notes to financial statements. The adoption of these financial reporting standards does not have any significant impact on the financial statements of the Company and its subsidiaries. Page 12 of 38

15 4. ADOPTION OF NEW ACCOUNTING STANDARDS (Con t) 4.1 Adoption of new accounting standards effective in the current period (Con t) The above-mentioned the revised Thai Accounting Standards (TAS), Thai Financial Reporting Standard (TFRS) and Interpretations (SIC and TFRIC) (revised 2017) do not have any significant impact on the Company's financial statements in this period of initial application. 4.2 New Thai Accounting Standards announce during the period not yet adopted In current period, the Federation of Accounting Professions has issued Notification regarding the newly TFRS 15 Revenue from Contracts with Customers which were announced and these have been published in the Royal Gazette and which will become effective for the financial statements for the fiscal years beginning on or after January 1, The Company and its subsidiaries have not applied such standards before the effective period. Key principles of this standard are summarized below. TFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognized. Revenue should be recognized when (or as) an entity transfers control over goods or services to a customer, measured at the amount to which the entity expects to be entitled. Entities are to apply this standard to all contracts with customers unless those contracts fall within the scope of other standards. The standard establishes a five-step model to account for revenue arising from contracts with customers, with revenue being recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. It replaces existing revenue recognition standards as follows: Thai Accounting Standards ( TAS ) TAS 11 (revised 2017) Construction contracts TAS 18 (revised 2017) Revenue Thai Accounting Standards Interpretation ( TSIC ) TSIC 31 (revised 2017) Revenue - barter transactions involving advertising services Thai Financial Reporting Standard Interpretations ( TFRIC ) TFRIC 13 (revised 2017) Customer loyalty programmes TFRIC 15 (revised 2017) Agreements for the construction of real estate TFRIC 18 (revised 2017) Transfers of assets from customers The management of the Company and its subsidiaries are still evaluating the possible impact on the financial statements in the year in which this standard will be applied. 5. SIGNIFICANT ACCOUNTING POLICIES The interim financial statements are prepared using the same accounting policies and methods of computation as were used for the Financial statements for the year ended December 31, Page 13 of 38

16 6. RELATED PARTY TRANSACTIONS The Company has certain transactions with subsidiaries, associates and related parties. Part of assets, liabilities, income and expenses are incurred from such related transactions. These companies are related through common shareholdings and/or directorships as follows.- Relationship of related parties other than subsidiaries and associates as disclosed in Note to the financial information consisted of.- Operation Percentage of Holdings Relationship Type of business Location Jun 30, 2018 Dec 31, 2017 Aqua Corporation Plc. 1 Finance lease Thai - - Shonan Build Service Co., Ltd. (Jpn Co.) 2 Building service Japan - - Seikosha Co., Ltd. (Jpn Co.) 3 Building service Japan - - Glombox Co., Ltd. 4 Printing and advertising agent Thai - - Manager Media Group Plc. 5 Production and distribution of Thai - - newspapers and publications Thansettakij Multimedia Co., Ltd. 5 All product and service Thai - - advertisement on printing media and daily newspaper sale Spring news Co.,Ltd. 5 Advertisement Media Thai - - News network Cotporation Plc. 5 Computer Software and equipment service, development and maintenance Thai - - The nature of relationship between the Company and its related parties are as follows.- 1. A major shareholder and having management in common 2. A shareholder in a subsidiary [Alternative Energies Kabushiki Kaisha (Jpn Co.)] 3. A parent company in Shonan Build Service Co., Ltd. 4. A direcetor of this company is a closed member of the Company s director 5. A director of management in common 6.1 The significant transactions with related parties are as follows.- For the three-month period ended June 30, Pricing policies Subsidiary Interest income ,925, ,531, Rental income , , Other income , Management income ,619, Indirect subsidiary Rental income , , Other income , Page 14 of 38

17 6. RELATED PARTY TRANSACTIONS (Con t) 6.1 The significant transactions with related parties are as follows.- (Con t) For the three-month period ended June 30, Pricing policies Indirect assosiate Management income 3 421, Related companies Sales and services income 1, 2 4,030, ,481, ,030, ,481, Rental income 3 39, , Related person Interest income 5 2, For the six-month period ended June 30, Pricing policies Subsidiary Interest income ,240, ,531, Rental income , , Other income , Management income ,619, Indirect subsidiary Rental income , , Other income , Indirect assosiate Management income 3 843, Related companies Sales and services income 1, 2 8,103, ,705, ,103, ,705, Rental income 3 97, , Related person Interest income 5 2, Page 15 of 38

18 6. RELATED PARTY TRANSACTIONS (Con t) 6.1 The significant transactions with related parties are as follows.- (Con t) Pricing policies 1. Selling price is lower than selling price for general customer group by approximately 1% to 5%. 2. Selling price is lower than selling price for prime customer group by approximately 3% to 10%, based on risk-free on debt collection consideration 3. Mutually agreed rate 4. As stipulated in promissory note (at rate 5.5% per annum) 5. As stipulated in loan agreement (at rate 7.75% per annum) Management benefit expenses The Company and its subsidiaries had salaries, bonuses, social security contributions, contributions to provident fund, other welfare, meeting allowances for directors and management and retirement benefit recognized as expenses are as follows.- For the three-month period ended June 30, Short-term benefits 8,086, ,450, ,359, ,967, Post - employment benefits 336, , , , Total 8,423, ,746, ,533, ,126, For the six-month period ended June 30, Short-term benefits 14,680, ,596, ,874, ,338, Post - employment benefits 673, , , , Total 15,353, ,188, ,224, ,655, Page 16 of 38

19 6. RELATED PARTY TRANSACTIONS (Con t) 6.2 The outstanding balance of account with related parties are as follows.- Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Trade account receivable Related companies 16,260, ,409, ,260, ,409, Less Allowance for doubtful debt (12,464,005.35) (12,464,005.35) (12,464,005.35) (12,464,005.35) Net 3,796, ,945, ,796, ,945, Other account receivable Subsidiary ,064, Indirect subsidiary , , Associated company 151, ,250, Total 151, ,250, , ,085, Other payable Indirect subsidiary , Related company 20, , , , Total 20, , , , Other non-current liability Indirect subsidiary , Short-term loans to related parties The movement of short-term loans to related parties is as follows.- Movement for the period Jan 1, 2018 Increase Decrease Jun 30, 2018 Director - 200, (65,928.27) 134, The abovementioned loans were granted to directior of indirect subsidiary in respect of loan agreement due within 6 months from the agreement date bearing interest at rate of 7.75% per annum. Page 17 of 38

20 6. RELATED PARTY TRANSACTIONS (Con t) 6.2 The outstanding balance of account with related parties are as follows.- (Con t) Short-term loans to related parties (Con t) The movement of short-term loans to related parties is as follows.- (Con t) Movement for the period Jan 1, 2018 Increase Decrease Jun 30, 2018 Subsidiary 1,270,077, ,187, (40,200,000.00) 1,399,065, The abovementioned loans were granted to subsidiary without collateral by issuing on demand promissory notes bearing interest at rate of 5.5% per annum. Current portion of Long-term loans to indirect associated companies Significant movement of current portion of long-term loans to indirect associated companies are as follows.- Movement for the period Jan 1, 2018 Increase Decrease Jun 30, 2018 Indirect associated companies 75,776, ,776, The abovementioned loan was granted to two indirect associated companies proportionate to its shareholding for purchase of land in respect of loan agreement due within 3 years from the agreement date (due in 2017). The loan was an unsecured and on an interest-free basis. Short-term loans from related party The movement of short-term loans from related party is as follows.- / Movement for the period Jan 1, 2018 Increase Decrease Jun 30, 2018 Director 30,000, (30,000,000.00) - The abovementioned loans from directior of the Company without collateral by issuing on demand promissory notes and on an interest-free basis. Page 18 of 38

21 6. RELATED PARTY TRANSACTIONS (Con t) 6.3 Other The Company and related companies had guaranteed credit facilities from financial institutions among one another as follows.- Unit : Million Yen Unit : Million Baht Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Credit facilities guaranteed by the Company for indirect subsidiaries Credit facilities guaranteed by the Company and indirect subsidiaries for direct subsidiary Credit facilities guaranteed by the Company and indirect subsidiary for indirect subsidiary Credit facilities guaranteed by the direct and indirect subsidiary for indirect subsidiary TEMPORARY INVESTEMENTS Temporary investments consist of.- Jun 30, 2018 Dec 31, 2017 Temporary investments in opened - end fund 125, ,423, Fixed deposits 23,073, ,586, Total 23,199, ,010, The temporary investments in opened - end fund are investment of its subsidiary for short-term profit-taking purpose. In June 30, 2018 and December 31, 2017, its subsidiaries had investments in fixed deposits for period 3 to 12 months at rate of 0.9% % and 1.125% - 2.6% per annum respectively. 8. TRADE ACCOUNTS AND OTHER CURRENT RECEIVABLE - NET Trade accounts and other current receivable - net are consist of.- Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31,2017 Trade accounts receivable Related companies 16,260, ,409, ,260, ,409, Other companies 319,672, ,470, ,214, ,353, Less Allowance for doubtful debts (23,875,397.65) (23,875,397.65) (23,875,397.65) (23,875,397.65) Trade accounts receivable - net 312,057, ,004, ,599, ,887, Page 19 of 38

22 8. TRADE ACCOUNTS AND OTHER CURRENT RECEIVABLE - NET (Con t) Trade accounts and other current receivable - net are consist of.- (Con t) Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31,2017 Other current receivable Subsidiary ,064, Indirect subsidiary , , Indirect associates 151, ,250, Other companies * 25,743, ,324, ,974, ,559, Other current receivable 25,895, ,574, ,995, ,645, Total trade accounts and other current receivable - net 337,952, ,579, ,594, ,532, * 2017 Other current receivable - other companies was receivable from the seller for the compensation for not being able to find new solar power plants with capacity not less than 12 Magawatts to sell to the plaintiff or the plaintiff s subsidiary within December 15, 2017, as proposed by the plaintiff in order to negotiate to end the court case as described in Condensed Note 26 to the interim financial information amounting to Yen 690 million (Baht million). The Company, subsequent to the reporting period, gradually received compensation amount in full in January and February The Company have outstanding balance of account receivables aged by number of days as follows.- Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31,2017 Account receivable not yet due 185,557, ,620, ,099, ,503, Account receivable over due Less than 3 months 77,188, ,349, ,188, ,349, Over 3 months to 6 months 11,476, ,688, ,476, ,688, Over 6 months to 12 months 33,898, ,753, ,898, ,753, Over 12 months 27,811, ,468, ,811, ,468, Total 335,933, ,879, ,474, ,762, Less Allowance for doubtful debts (23,875,397.65) (23,875,397.65) (23,875,397.65) (23,875,397.65) Trade accounts receivable - net 312,057, ,004, ,599, ,887, Page 20 of 38

23 9. INVENTORIES - NET Inventiories - net are as follows.- Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Raw materials 48,177, ,537, ,177, ,537, Raw materials-in-transit 2,431, ,791, ,431, ,791, Work-in-process 5,045, ,725, ,045, ,725, Supplies 1,144, ,349, ,144, ,349, Spare parts 213, , , , Finished goods 7,890, ,525, ,243, ,525, Total 64,904, ,175, ,257, ,175, Less Allowance for diminution in value of inventories (657,980.57) (657,980.57) (657,980.57) (657,980.57) Total inventories - net 64,246, ,517, ,599, ,517, CONSTRUCTION IN PROGRESS - FINANCE LEASES Construction in Progress - finance lease was solar cells and related equipment under installation under finance lease agreement which an indirect subsidiary had with three other companies. 11. DEPOSITS AT BANKS HELD ON COLLATERAL Deposits at banks held on collateral consist of : Interest rate Consolidate Type of deposits Collateral for (per annum) Jun 30, 2018 Dec 31, 2017 Saving account Indirect subsidiary s ,256, ,866, credit facilities 3-6 months fixed account Associated companies s ,202, ,087, letter of guarantee 12 months fixed account Indirect subsidiary s , , letter of guarantee Total 133,184, ,679, Page 21 of 38

24 12. INVESTMENTS IN SUBSIDIARY Investments in subsidiary are as follows.- As at Jun 30, 2018 and Dec 31, 2017 Paid-up share capital Percentage of (Million Baht) holding (%) Jun 30, Dec 31, Jun 30, Dec 31, Unit : Million Baht Dividend received for the Cost method six-month period ended Jun 30, Dec 31, Jun 30, Jun 30, Eastern Power Group Plc. 1, , , , INVESTMENTS IN ASSOCIATED COMPANIES Investments in associated companies are as follows.- As at Jun 31, 2018 and Dec 31, 2017 Paid-up share capital Percentage of (Million Baht) holding (%) Dec 31, Jun 30, Jun 30, 2018 Dec 31, 2017 Unit : Million Baht Share of profit (loss) for the six-month Cost method period ended Jun 30, Dec 31, Jun 30, Jun 30, Held by direct subsidiary and indirect associated company PPTC Co.,Ltd. 1, , Held by indirect subsidiaries TAC Energy Co.,Ltd. 1, , , , (0.40) Held by indirect subsidiary and indirect associated company SSUT Co.,Ltd. 2, , , , Total 3, , PROPERTY, PLANT AND EQUIPMENT - NET The movement of property, plant and equipment - net for the six-month period ended June 30, 2018 are as follows: Net book value as at January 1, ,282,614, ,836, Acquistion during the period at cost 406,205, ,664, Transferred in from other non-current asset 52, Transferred out during the period (2,778,422.68) - Disposed/written-off during the period at net book value at disposed/written-off date (413,628.83) - Depreciation for the period (70,655,872.65) (13,295,658.60) Reverse for impairment loss for the period 165, , Net book value as at June 30, ,615,189, ,370, Page 22 of 38

25 15. INTANGIBLE ASSETS - NET The movements of the intangible assets - net for the six-month period ended June 30, 2018 are as follows: Net book value as at January 1, 2018 (Restated) 643,687, Transferred from property plant and equipment 62, Amortization for the period (9,541,474.33) Net book value as at June 30, ,208, DEFERRED TAX ASSETS 16.1 Deferred tax assets are consist of.- Jun 30, 2018 Dec 31, 2017 Jun 30, 2018 Dec 31, 2017 Deferred tax assets 6,617, ,206, ,031, ,704, Deferred tax liabilities - (7,358.00) - (7,358.00) Net 6,617, ,199, ,031, ,697, Movements in deferred tax assets and liabilities during the period are as follows.- Jan 1, 2018 (Charged) Credited for the period to profit or loss Jun 30, 2018 Jan 1, 2018 (Charged) Credited for the period to profit or loss Jun 30, 2018 Deferred tax assets Inventories 131, , , , Long-term invesment - 4, , , , Property, plant and equipment 271, (25,167.29) 246, , (30,066.69) 232, Employees benefit obligations 5,803, , ,235, ,310, , ,662, Total 6,206, , ,617, ,704, , ,031, Deferred tax liabilities Long-term investment (7,358.00) 7, (7,358.00) 7, Net 6,199, , ,617, ,697, , ,031, Page 23 of 38