Letter To Shareholders - Mitac

Company Name
Name of the counterparty
Transaction
Relationship with the
counterparty (Note 1) General Ledger Account Amount Transaction terms
Percentage of consolidated total operating
revenue or total assets (Note 2)
" " (1) Accounts payable 2,000,440 Note 4 3.79%
" " (1) Warranty expense 1,260,237 Note 4 1.94%
" " (1) Accrued expenses / Other payables 526,813 Note 4 1.00%
" " (1) Endorsements and guarantees 734,819 1.39%
" " (1) Other receivables 170,168 Note 3 0.32%
" Tsu Fung Investment Corp. and
its subsidiaries
(1) Sales 159,902 Note 3 0.25%
" " (1) Endorsement and guarantees 160,000 0.30%
" Foreground Technology Ltd. and
its subsidiaries
(1) Sales 1,250,246 Note 3 1.93%
" " (1) Purchases 401,240 Note 4 0.62%
Silver Star Developments Ltd.
(SSDL) and its subsidiaries
MiTAC International Corp. (2) Sales 17,359,253 Note 3 26.82%
" " (2) Accounts receivable 2,000,440 Note 3 3.79%
" " (2) Purchases 9,924,934 Note 4 15.33%
" " (2) Accounts payable 4,601,723 Note 4 8.72%
" " (2) Accounts receivable 526,813 Note 3 1.00%
" " (2) Other payables 170,168 Note 4 0.32%
" " (2) Other revenues 1,260,237 Note 3 1.95%
Foreground Technology Ltd. and
its subsidiaries
MiTAC International Corp. (2) Purchases 1,250,246 Note 4 1.93%
" " (2) Sales 401,240 Note 3 0.62%
Tsu Fung Investment Corp. and its
subsidiaries
MiTAC International Corp. (2) Purchases 159,902 Note 4 0.25%
Note 1: The relationship with the transaction parties are as follows:
(1) The Company to the consolidated subsidiary.
(2) The consolidated subsidiary to the Company.
(3) The consolidated subsidiary to the consolidated subsidiary.
Note 2: Ratio of asset/liability is divided by consolidated total assets, and ratio of profit/loss accounts is divided by consolidated sales revenue.
Note 3: The collection period is 150 days after offsetting certain receivables and payables according to collection terms to overseas related parties. The sales price to related parties is
based on market value.
Note 4: The payment period is 150 days after offsetting certain receivables and payables according to payment terms to overseas related parties. The purchase price from related parties
is based on market value.
Note 5: The standard of disclosure is the transantion amounts exceeding $100,000 or 20 percent of the Company’s capital.
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