Contents - MiTAC

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3) The Company leased certain land (from 1987 to 2008), factories and offices (to September 2005) under operating leases. Annual rental payments are approximately $16,967. 8. SIGNIFICANT DISASTER LOSS None. 9.SIGNIFICANT SUBSEQUENT EVENT The Company has resolved to purchase 5,000 and 10,000 thousand of its outstanding common stocks for transferring to its employees at the meetings of the board of directors on February 24 and March 11, 2004 respectively. The planned acquisition periods are from February 25 to April 24, 2004, and from March 12 to May 11, 2004. The acquisition prices ranged from $15 to $17 and from $15 to $17.5, respectively, to the date of this report before March 15, 2004, the Company had bought back 5,000 and 1,500 thousand shares, and the total costs were $84,065 and $25,415, respectively. 10. OTHER INFORMATION 1) FAIR VALUE OF FINANCIAL INSTRUMENTS December 31, 2003 December 31, 2002 Financial Assets Book value Fair value Book value Fair value Short-term financial assets with fair value equal to book value $ 11,508,412 $ 11,508,412 $ 8,548,536 $ 8,548,536 Marketable securities 1,749,607 1,749,777 183,518 183,597 Long-term investments 9,735,303 10,140,152 9,282,515 10,188,596 $ 22,993,322 $ 23,398,341 $ 18,014,569 $ 18,920,729 Sale of forward foreign exchange $ 20,704 $ 20,704 $ 790 $ 790 Buy US$ Put option $ 38,839 $ 38,839 $ 59,209 $ 59,209 Buy US$ SWAP $ - $ - $ 8,543 $ 8,543 December 31, 2003 December 31, 2002 Financial Liabilities Financial liabilities with fair value equal Book value Fair value Book value Fair value to book value $ 20,162,803 - 69 - $ 20,162,803 $ 13,318,614 $ 13,318,614 Bonds payable 2,500,000 2,608,983 4,281,739 4,414,797 $ 22,662,803 $ 22,771,786 $ 17,600,353 $ 17,733,411 Purchase of forward foreign exchange $ 24,583 $ 24,583 $ 24,324 $ 24,324 Sell US$ Swap $ 4,319 $ 4,319 $ 8,720 $ 8,720 Sell Interest rate Swap $ 808 $ 808 $ 1,670 $ 1,670 The methods and assumptions used to measure the fair value of financial instruments are as follows: A. The carrying amounts of short-term financial assets and liabilities: approximate fair values due to their short maturities. B. The fair values of marketable securities and long-term investments are based on the market value of the securities or, if market value is unavailable, the net equity of the investee companies are used as fair value. C. Fair value of bonds payable is estimated by the market value. D. The book value of long-term loans is used as fair value as the loans bear floating interest rates. E. Derivative financial instruments: The estimated fair values are the expected cash flow (using rates quoted by financial institutions) if the contracts are terminated at the balance sheet date, including unrealized gains or losses generally. The quotes from financial institutions are available for most of the Company’s derivate financial instruments. 2) Inter-company eliminate transactions: Eliminate transactions Transaction parties 2003 2002 1.Write-off of long-term investments and MITAC $ 7,721,679 $ 6,974,554 stockholders’ equity International Corp. and its subsidiaries 2.Write-off of inter-company AR and AP " 1,895,672 2,314,213 3.Write-off of inter-company purchases and sales " 17,737,525 9,882,377 4.Write-off of inter-company unrealized gain " 57,778 11,482 5.Write-off of other inter-company transactions " 785,768 512,872
11. SPECIAL DISCLOSURE ITEMS A. Information of Significant Transactions: (1) Loans to others attributed to financial activities as of December 31, 2003: None. (2) The endorsements and guarantees provided by the Company to others as of December 31, 2003: Guarantor company Company being guaranteed Name Name MITAC International Corp. 〃〃 Relationship with the Company MITAC Inc. Business relationship MITAC Technology Corp. So Fung Investment Co., Ltd. 〃 Tsu Fung Investment Co. 〃〃〃 MITAC Precision Technology Co., Ltd. Silver Star Developments Ltd. MITAC Japan Corp. The limit of guarantee for such party The highest outstanding guarantee amount during 2003 - 70 - The outstanding guarantee amount at Dec.31, 2003 The amount of guarantee with collateral placed The ratio of accumulated guarantee amount to net asset value of the Company The ceiling of the outstanding guarantee for the respective party $ 12 $ 1,828,666 $1,828,521 - 11.12% $16,443,699 〃 200,262 14,266 9,667 - 0.06% 〃 Subsidiary 8,221,850 290,000 220,000 - 1.34% 〃〃 8,221,850 470,000 420,000 - 2.55% 〃 Business relationship 451,017 1,190,000 400,000 - 2.43% 〃 Subsidiary 8,221,850 848,325 848,325 - 5.16% 〃〃 8,221,850 146,000 116,000 - 0.71% 〃〃 MITAC U.S.A Inc. 〃 8,221,850 59,093 59,093 - 0.36% 〃〃 MITAC U.K. Ltd. 〃 8,221,850 477,570 - - - 〃〃 MITAC Computer (Shunde) Corp. 〃 8,221,850 20,100 - - - 〃〃 Top Wisdom Corp. Joint venture investee Company 8,221,850 149,779 120,700 - 0.73% 〃
Page 1 and 2:
Contents A.Report To Shareholders..
Page 3 and 4:
Innovations in product R&D and work
Page 5 and 6:
4.Integrate Group resources, contin
Page 7 and 8:
1990 - In response to rapid busines
Page 9 and 10:
MiTAC International's US subsidiary
Page 11 and 12:
2.1.2 Responsibilities of Major Dep
Page 13 and 14:
Major Institutional Shareholders Ap
Page 15 and 16:
Title Name Date Took Office Shares
Page 17 and 18:
3. Capital and Shares, Corporate Bo
Page 19 and 20: 3.5 Market Price, Net Value, Earnin
Page 21 and 22: 3.8 Treasury Stock Aapril 1, 2004 S
Page 23 and 24: 3.10 Employee Stock Options 3.10.1
Page 25 and 26: 1.1.3 New Products and Technologies
Page 27 and 28: this platform are being aggressivel
Page 29 and 30: 1.3.2 Technologies and Products Suc
Page 31 and 32: 1.4.3. Wireless communications prod
Page 33 and 34: (3) Wireless Communications Product
Page 35 and 36: C.Expand development of high value-
Page 37 and 38: 2.3 Supply of Key Components Compon
Page 39 and 40: As a professional computer assembly
Page 41 and 42: 8. Acquisition or Disposition of As
Page 43 and 44: 1.2 Concise Profit/Loss Statment Un
Page 45 and 46: 2.1 Financial Structure (1) Debt ra
Page 47 and 48: MITAC INTERNATIONAL CORP. AND SUBSI
Page 53 and 54: combined total assets or operating
Page 55 and 56: 11) Deferred charges A. Telephone i
Page 57 and 58: 3) Mitac Precision Technology Co.,
Page 59 and 60: D. Tsu Fung Investment Corp. was no
Page 61 and 62: 11) OTHER LIABILITIES December 31,
Page 63 and 64: B. Undistributed earnings (a) In ac
Page 65 and 66: C. Components of deferred income ta
Page 67 and 68: 19) PERSONNEL EXPENSES, DEPRECIATIO
Page 69: E. Accounts payable December 31, 20
Page 73 and 74: Investor Types Name of marketable s
Page 75 and 76: The company buying /selling product
Page 77 and 78: Item Sales of forward foreign excha
Page 79 and 80: Investor Investee Company 〃 Proco
Page 81 and 82: (4) The detail of marketable securi
Page 83 and 84: (8) Purchases or sales transactions
Page 85 and 86: C. Relevant Information Regarding I
Page 87 and 88: The prices that the Company and thi
Page 89 and 90: In order to reconcile the amounts o
Page 91 and 92: 2. Analysis of Business Results Yea
Page 93 and 94: 6. Risk Management 6.1 Influence of
Page 95 and 96: 6.5.2 Server Product Series: Due to
Page 97 and 98: Item Status 3. Designation of super
Page 99 and 100: 1. Information on Affiliates 1.1 Co
Page 101 and 102: 1.1.2 Affiliated Companies—Basic
Page 103 and 104: 1.1.3 Business and Inter-Relationsh
Page 105 and 106: 1.1.4 Directors, Supervisors, Gener
Page 107 and 108: Company Name Title Name or Represen
Page 109: 1.1.5 Operations Overview of Afflia
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Contents - MiTAC

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