Consolidated - CHUNGHWA PICTURE TUBES, LTD.

Report of Independent Auditors
To the Board of Directors and Stockholders of
Chunghwa Picture Tubes, Ltd.
We have audited the accompanying consolidated balance sheets of Chunghwa Picture Tubes, Ltd. (the
“Company”) and its subsidiaries as of December 31, 2003 and 2004, and the related consolidated statements of
operations, changes in stockholders' equity and cash flows for the years ended December 31, 2003 and 2004.
These consolidated financial statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these financial statements based on our audits. We did not audit the
financial statements of Toppan Chunghwa Electronics Co., Ltd. and Makolin Electronics (M) Sdn. Bhd., equity
investees accounted for under the equity method, as of and for the year ended December 31, 2003, Those
statements were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as
it related to the amounts included for such said investee, is based solely on the report of the other auditors. These
aggregate investment balance of these investees amounted to $905,662 thousand (0.64% of total assets) as of
December 31, 2003, and related investment income recognized was $145,928 thousand (10.06% of income
before income tax and minority interests) for the year then ended.
We conducted our audits in accordance with “Rules Governing Auditing and Certification of Financial
Statements by Certified Public Accountants” and auditing standards generally accepted in the Republic of China.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits and the report of other auditors provide a
reasonable basis for our opinion.
In our opinion, based on our audits and the report of other auditors, the consolidated financial statements
referred to in the first paragraph present fairly, in all material respects, the consolidated financial position of
Chunghwa Picture Tubes, Ltd. and its subsidiaries as of December 31, 2003 and 2004, and the consolidated
results of their operations and their cash flows for the years ended December 31, 2003 and 2004, in conformity
with the “Guidelines Governing the Preparation of Financial Report by Securities Issuers” and accounting
principles generally accepted in the Republic of China.
Diwan, Ernst & Young
Taipei, Taiwan
Republic of China
March 28, 2005
Notice to Readers
The accompanying financial statements are intended only to present the financial position and results of
operations and cash flows in accordance with accounting principles and practices generally accepted in the
Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit
such financial statements are those generally accepted and applied in the Republic of China.
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