Download Full Version - UMC
Download Full Version - UMC
Download Full Version - UMC
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Financial Review Unconsolidated<br />
95<br />
(2) Significant Related Party Transactions<br />
a. Operating revenues<br />
For the year<br />
ended December<br />
31,<br />
2004 2003<br />
Amount Percentage Amount Percentage<br />
<strong>UMC</strong>-USA $53,751,976 46 $35,062,132 41<br />
UME BV 19,685,139 17 6,447,584 7<br />
MediaTek 7,692,163 6 8,185,306 10<br />
Others 12,938,569 11 9,155,048 11<br />
Total $94,067,847 80 $58,850,070 69<br />
The sales price to the above related parties was determined<br />
through mutual agreement based on the market<br />
conditions. The collection period for overseas sales was<br />
net 45 ~ 60 days for the related parties and 30 ~ 60 days<br />
for third-party customers, while the terms for domestic<br />
sales were month-end 45 ~ 60 days for the related parties<br />
and 30 ~ 60 days for the third-party customers.<br />
b. Purchases<br />
For the year<br />
ended December<br />
31,<br />
2004 2003<br />
Amount Percentage Amount Percentage<br />
Shin-Etsu $3,952,085 14 $2,698,980 15<br />
<strong>UMC</strong>i 2,987,721 11 1,756 –<br />
Others 116,452 – 185,004 1<br />
Total $7,056,258 25 $2,885,740 16<br />
The purchases from the above related parties were dealt<br />
with in the ordinary course of business similar to those<br />
from third-party suppliers. The payment terms for purchase<br />
from overseas were net 60 days for the related parties<br />
and net 30 ~ 90 days for the third-party suppliers,<br />
while the terms for domestic purchases were month-end<br />
60 days for the related parties and month-end 30 ~ 90<br />
days for the third-party suppliers.<br />
c. Notes receivable<br />
As of December<br />
31,<br />
2004 2003<br />
Amount Percentage Amount Percentage<br />
Holtek $39,034 96 $101,203 92<br />
Others – – 550 –<br />
Total $39,034 96 $101,753 92<br />
d. Accounts receivable, net<br />
As of December<br />
31,<br />
2004 2003<br />
Amount Percentage Amount Percentage<br />
<strong>UMC</strong>-USA $4,389,514 36 $4,366,183 31<br />
UME BV 1,875,964 16 1,406,079 10<br />
MediaTek 784,279 7 1,713,842 12<br />
Others 2,222,280 18 1,894,019 14<br />
Total 9,272,037 77 9,380,123 67<br />
Less: Allowance<br />
for sales returns<br />
and discounts<br />
Less: Allowance<br />
for doubtful<br />
accounts<br />
(841,500) (283,420)<br />
(207,034) (100,853)<br />
Net $8,223,503 $8,995,850<br />
e. Accounts payable<br />
As of December<br />
31,<br />
2004 2003<br />
Amount Percentage Amount Percentage<br />
<strong>UMC</strong>i $800,805 18 $– –<br />
Shin-Etsu 628,641 14 754,354 18<br />
Others 20,856 – 35,634 1<br />
Total $1,450,302 32 $789,988 19<br />
f. Loans<br />
For the<br />
year ended<br />
December 31,<br />
2004<br />
Maximum Balance<br />
Amount<br />
Month<br />
Ending<br />
Balance<br />
Interest<br />
Rate<br />
Chiao Tung $282,547 January $– 1.83% ~<br />
2.53%<br />
For the<br />
year ended<br />
December 31,<br />
2003<br />
Maximum Balance<br />
Amount<br />
Month<br />
Ending<br />
Balance<br />
Interest<br />
Rate<br />
Chiao Tung $865,796 January $282,557 1.66% ~<br />
2.68%<br />
IBT 783,296 January – 2.54% ~<br />
2.89%<br />
Interest<br />
Expense<br />
$2,453<br />
Interest<br />
Expense<br />
$15,840<br />
2,535<br />
Total $282,557 $18,375<br />
Note 5
Change language