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190 United Microelectronics Corporation Annual Report 2004
Consolidated Statements of Income
For the years ended December 31,
In thousands
Contents 2004 2003
NTD USD NTD
Operating revenues
Sales revenues 126,837,616 3,996,144 93,695,738
Less : Sales returns and discounts (1,486,938) (46,847) (1,009,836)
Net Sales 125,350,678 3,949,297 92,685,902
Other operating revenues 3,840,062 120,985 3,017,830
Net operating revenues 129,190,740 4,070,282 95,703,732
Operating costs
Cost of goods sold (89,455,182) (2,818,374) (71,363,227)
Other operating costs (2,892,643) (91,136) (2,536,442)
Operating costs (92,347,825) (2,909,510) (73,899,669)
Gross profit 36,842,915 1,160,772 21,804,063
Unrealized intercompany profit (151,192) (4,763) (106,702)
Realized intercompany profit 106,702 3,362 68,558
Net 36,798,425 1,159,371 21,765,919
Operating expenses
Selling and marketing expenses (2,775,289) (87,438) (2,170,897)
General and administrative expenses (4,853,119) (152,903) (3,996,466)
Research and development expenses (7,363,620) (231,998) (5,858,629)
Subtotal (14,992,028) (472,339) (12,025,992)
Operating income 21,806,397 687,032 9,739,927
Non-operating income
Interest revenue 1,040,652 32,787 1,141,264
Investment income accounted for under the equity method, net 551,779 17,385 300,724
Dividend income 1,163,438 36,655 837,696
Gain on disposal of property, plant and equipment 139,951 4,409 216,992
Gain on disposal of investments 12,868,569 405,437 6,885,374
Exchange gain, net – – 256,452
Recovery on decline in market value of marketable securities – – 10,806
Other income 635,092 20,009 764,190
Subtotal 16,399,481 516,682 10,413,498
Non-operating expenses
Interest expense (1,434,823) (45,205) (1,326,155)
Other investment loss (473,529) (14,919) (1,866,454)
Loss on disposal of property, plant and equipment (230,609) (7,266) (170,576)
Exchange loss, net (928,891) (29,266) –
Loss on decline in market value and obsolescence of inventories (1,884,466) (59,372) (1,443,565)
Financial expenses (396,909) (12,505) (387,916)
Other losses (1,112,082) (35,037) (263,054)
Subtotal (6,461,309) (203,570) (5,457,720)
Income before income tax and minority interests 31,744,569 1,000,144 14,695,705
Income tax expense (373,800) (11,777) (979,469)
Income before minority interests 31,370,769 988,367 13,716,236
Minority interests 472,612 14,890 304,021
Net income (as reported under ROC GAAP) 31,843,381 1,003,257 14,020,257
US GAAP Adjustments:
Compensation (3,540,050) (111,533) (2,914,994)
Equity investments (771,323) (24,301) (531,785)
Change in fair value of marketable securities (483,461) (15,232) 504,386
Difference in application of equity accounting 861,303 27,136 464,555
Impairment loss on marketable securities (3,050,065) (96,095) 1,477,618
Adjustments due to change in interests of investee companies (37,966) (1,196) (278,721)
Convertible / Exchangeable bonds 226,457 7,135 (725,225)
Embedded derivatives in exchangeable bonds 817,959 25,771 (1,852,268)
Goodwill 21,206 668 –
Impairment loss on goodwill (31,719,607) (999,357) –
Gain on reacquisition of bonds 600,466 18,918 106,416
Income tax effect 493,595 15,551 242,000
Credit-linked deposits / repackage bonds (10,585) (334) (36,328)
Net income (as reported under US GAAP) (4,748,690) (149,612) 10,475,911
Notes (1) The USD amounts are presented solely for the convenience of the readers and were translated at the noon buying rate of NTD 31.74 to USD 1.00 in effect
on December 31, 2004 at the Federal Reserve, the central bank of the United States. (2) Certain comparative amounts have been reclassified to conform to the
current year’s presentation.