Letter To Shareholders - Mitac

7 Assessment of financial conditions, operational result,
and potential risks
7.1. Financial status, discussion, and analysis
Unit: NT$ Thousand
Years
Differential
2008 2009
Items
Amount %
Current assets 23,797,940 24,961,531 1,163,591 4.89
Fixed assets 2,196,827 1,782,672 (414,155) (18.85)
Intangible assets 613,095 1,894,511 1,281,416 209.01
Other assets 1,257,969 1,372,991 115,022 9.14
Total assets 50,119,319 52,608,813 2,489,494 4.97
Current liabilities 18,244,889 19,353,409 1,108,520 6.08
Long-term debt 240,500 1,500,000 1,259,500 523.70
Total liabilities 18,993,357 21,004,633 2,011,276 10.59
Capital 15,354,393 15,361,724 7,331 0.05
Capital reserves 4,169,505 4,153,640 (15,865) (0.38)
Retained earnings 10,968,317 10,952,275 (16,042) (0.15)
Total shareholder equity 31,125,962 31,604,180 478,218 1.54
1. Analysis of changes in assets, liabilities, and shareholders’ equity in the most recent two
years (changes over 20% and NT$10 million):
(1) Intangible assets: the increase of intangible assets was mainly due to the trademark and
patent acquired from the brand Magellan during the year.
(2) Long-term liabilities: the increase of long-term liabilities was mainly due to the
additional long-term borrowings taken during the year
2. The aforementioned changes did not have a significant impact on the company’s operation.
7.2. Analysis of business results
Years
2008 2009
Unit: NT$ Thousand
Amount
changed
Change in
percentage %
Items
Gross operating revenue 65,271,859 60,760,648 (4,511,211) (6.91)
Minus: Sales return and allowance (4,462,434) (2,721,233) (1,741,201) (39.02)
Net operating revenue 60,809,425 58,039,415 (2,770,010) (4.56)
Operating costs (56,091,211) (53,931,648) (2,159,563) (3.85)
Gross profit 4,718,214 4,107,767 (610,447) (12.94)
Operating expenses (5,306,699) (4,141,680) (1,165,019) (21.95)
Operating income (losses) (588,485) (33,913) 554,572 94.24
Non-operating income and gains 1,433,674 465,950 (967,724) (67.50)
Non-operating expenses and
losses (209,745) (55,927)
(153,818) (73.34)
Income before income tax from
continuing operations 635,444 376,110
(259,334) (40.81)
Income tax expense (176,155) (86,948) (89,207) (50.64)
Cumulative effect of changes in
accounting principles - -
- -
Net income from continuing
operations 459,289 289,162
(170,127) (37.04)
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