Company Overview - Mitac

MiTAC
C O N T E N T S
International
Corporation
Annual
Report
Report To Shareholders 1
1 Company Overview 6
Company Pro f i l e 7
Company Milestones 8
O rganizational Stru c t u re 14
D i re c t o r, Superv i s o r, General Manager, Vice General Manager 17
Change in Share Ownership by Directors, Supervisors, Managers, and Major Share h o l d e r s 23
Consolidated Stock Holdings 24
Capital and Shares, Corporate Bonds, Special Shares, Global Depositary Receipts,
Employee Stock Subscription Vo u c h e r, and Merg e r s 25
Dividend Policy and Implementation 29
Employee Bonuses and Renumeration for Directors, Superv i s o r s 30
Employee Stock Opitons 34
2 Operations Overview 3 6
Business Scope 37
Technology and R&D 39
Market and Manufacturing Sales 42
Major Applications and Production Process for Main Pro d u c t s 48
Supply of Key Components 49
Ten Largest Customers and Suppliers for the Most Recent Two Ye a r s 49
Employed Staff 52
Expenses Incurred To Address Environmental Protection Issues 52
Labor/Management Relations 53
Major Agre e m e n t s 55
Litigation Pro c e e d i n g s 55
Acquisition or Disposition of Assets 56
Acquisition or Disposition of Assets 58
3 Financial Standing 6 0
Most Recent Five-Year Concise Financial Inform a t i o n 6 1
Financial Analysis for Most Recent Five Ye a r s 6 3
Balance Sheet 6 5
Statement of Changes in stockholders' Equity 6 7
Statement of Cash Flows 6 9
Statemen of Income 7 1
4 M i TAC International Corp.
Consolidated Financial Statements and
Report of Independent Accountants 7 2
R e p o rt of Independent Accountants 7 3
M i TAC International CorP. and Subsidiareds Consolidated Balance Sheet 7 5
M i TAC International CorP. and Subsidiareds Consolidated Statement of Changes in
Stockholders' Equity 7 7
M i TAC International CorP. and Subsidiareds Consolidated Statement of Cash Flows 7 9
M i TAC International CorP. and Subsidiareds Consolidated Statement of Income 8 1
5 Financial Condition and Business Re s u l t s-Analysis
and Risk Management 8 2
Balance Sheet 8 3
Analysis of Business Results 8 4
Cash Flow Analysis 8 6
Influence on Finances of Major Capital Expenditures in the Most Recent Ye a r 8 7
Risk Management 8 7
Other Important Events 9 0
6 Special Events of Re c o r d 9 1
2002

MiTAC
International
Corporation
Annual Report
2002
Report to Shareholders
Dear Share h o l d e r s ,
For any company, sustained development and profitability are the most important goals. Looking at
the business environment in which it is currently operating, it is apparent that MiTAC faces
changes and challenges stemming both from the industry's own developmental trends and wider
economic conditions.
After more than twenty years of development, the PC industry is confronting a period of stagnant
g rowth, and even decline. However, as the Internet and wireless technologies evolve, pro d u c t s
focused on mobile connectivity have entered a phase of high growth, even as desktop PCs re m a i n
the global industry's largest product category. In terms of economic conditions, sluggishness in the
global economy, price competition within the industry, rapid depreciation in the prices for new
p roducts after introduction, and weak consumer spending are all evident. Companies are facing
an era of razor-thin profit margins, where achieving profits will be difficult, and a proactive searc h
In response to these changes in the larger environment, MiTAC has taken aggressive action
t h rough its business and product strategies. Regarding business strategies, providing customers
with diff e rentiated, high value-added services has been the focus of MiTAC eff o rts. To develop
M i TAC strengths in areas outside of hard w a re design and manufacturing, MiTAC has set out thre e
d i rections where it will concentrate its eff o rt sp recision molding R&D, software design, and the
accumulation of intellectual pro p e rt y. Strengthening MiTAC's capabilities in these three areas will
enable us to increase our autonomy in precision molding technology, which is closely related to
h a rd w a re development and system design; use value-added software services to give MiTA C -
m a n u f a c t u red products a distinctive competitive advantage, and accommodate market tre n d s
t o w a rd more individualized products; and accumulate intellectual pro p e rty to strengthen MiTA C ' s
overall competitiveness and position within the industry.
R e g a rding product strategy, although MiTAC has consistently achieved excellent results in the
desktop PC business, for the sake of its long-term operations, MiTAC began quite early to develop
a second, and even third, product line. As a result, MiTAC was not only the first to begin
development and manufacture of small form factor PCs, but has also introduced various types of
embedded system products. More o v e r, as early as 1996, it commenced R&D for workstation
p roducts. In recent years, development has extended to servers, storage devices, and back-end
e q u i p m e n tand MiTAC has built up a substantial customer base in these markets. From a longt
e rm perspective, as Internet usage continues to expand, strong demand for network equipment
such as servers and storage equipment can be expected.
In addition, two years ago, MiTAC saw an opportunity in wireless communications, and
established a dedicated team for developing communications products. By integrating inform a t i o n
and communications technologies, we were able to successfully develop the Pocket PC that we
i n t roduced last year. With the Pocket PC, we re - e n t e red the brand-name business under the Mio
D i g i Walker brand. In the Greater China market (which includes Taiwan, Hong Kong, and
mainland China), we have achieved excellent results, becoming one of the top three brands in the
Asia-Pacific region after just six months. This year, in addition to continuing to launch new Pocket
PC models, we will also introduce a smart phone. Building on the strong foundation we have
a l ready established, we expect to get an excellent response from the market, in the pro c e s s
gaining another driver for gro w t h .
for strategic responses is called for.
1. Business Operations in 2002
(1) Operational results and financial analysis:
M i TAC's revenues for 2002 amounted to NT$25.178 billion, a decline of 11% from the
NT$28.448 billion we achieved in 2001. The chief reasons for the decline were poor global
economic conditions, sluggish corporate IT spending, and weak consumer demand. After- t a x
p rofits for 2002 were NT$865 million, or NT$0.84 per share. Despite price competition, with
dramatically increased pre s s u re from customer demand for lower prices, MiTAC was still able to
continue development of new products, introducing products and services with strong value-added
f e a t u res. There f o re, we were able to maintain overall profit margins of 8%, meeting our intern a l
t a rgets and equaling our perf o rmance in 2001. More o v e r, MiTAC's financial condition continues
to be solid, with a sound financial plan in place. Our debt-to-asset ratio in 2002 was 40%, with a
t u rnover ratio of 153%, further indications of MiTAC's financial health.
(2) Research and Development
M i TAC has maintained its steadfast commitment to continually strengthening its R&D capabilities,
and aggressively developing core technologies. This commitment has been reflected in the re s u l t s
we have achieved in the area of patents. More o v e r, after first receiving the National Invention
Aw a rds bronze medal in 1997, we went on in 2001 to win a silver medal, demonstrating the
1 Report to Shareholders
2

MiTAC
International
Corporation
Annual Report
2002
sustained pro g ress we are making in our R&D capabilities.
Looking at the number of patent approvals we have obtained, MiTAC ranked seventh in Ta i w a n
last year, advancing one place over our ranking (eighth) the previous year. The Institute for
I n f o rmation Industry's survey last year of one hundred leading vendors in the semiconductor,
o p t o e l e c t ronic, telecoms services, and information appliance industries cited six companies
with the richest portfolio of intellectual pro p e rty assets, and MiTAC was among these
exclusive few in 2002. This demonstrates that MiTAC has already established a
substantial lead over its rivals in overall capabilities and R&D innovation.
Sales of networking products will amount to 500,000 units. Wi reless communications pro d u c t s
should reach or exceed 800,000 units.
(2) Ongoing measure s :
1. Continue to pursue the implementation of e-commerce systems to raise efficiency and re d u c e
costs: In an era of razor-thin profits, efficiency and cost control will be critical areas for
businesses to focus on, and a comprehensive e-commerce system will play an important role in
achieving results in both these areas. MiTAC has always been committed to implementing
robust information systems and making associated investments. Not only were we the first
company in Taiwan to complete the application process for the Taiwanese government's B Plan
2. Highlights of MiTAC's Business Plan for 2003
M i TAC's development strategy encompasses two strands: (1) tandem development of software and
h a rd w a re, and (2) creation of complementary strengths in both the early (R&D, design) and late
( d e l i v e ry, after-sales service) phases of our operational workflow. As mentioned pre v i o u s l y, MiTA C
will integrate its software engineering re s o u rces, precision molding development capabilities, and
c u rrent hard w a re products, and then take advantage of an internal system of incentives for
encouraging patent proposals to accumulate intellectual pro p e rty rights. The aim of these eff o rts is
to give MiTAC a strong position in an environment where intellectual pro p e rty rights are
i n c reasingly prized. At the same time, in order to ensure the most effective use of intern a l
re s o u rces, MiTAC will focus on three core businesses(1) PC products (emphasizing small form
factor products) and various types of embedded systems devices currently under development; (2)
networking products, including workstations, servers, and data storage equipment; and (3)
w i reless communications product, including Pocket PC devices and smart phonesto create the
most competitive product combinations so customers will seek out MiTAC as a one-stop shop for
total solutions.
To ensure sustained enhancement of MiTAC's overall competitiveness, critical tasks include
e ffective institution of such projects as the development of e-commerce mechanisms, brand
management, and integration of Group re s o u rces. Following is a sales forecast, then a description
of measures that we will be pursuing, accompanied by explanatory notes:
(1) Forecasted sales volumes:
Judging by current market conditions, this year MiTAC will sell roughly 2.7 million desktop PCs.
(for business computerization), but we were cited by a member of the Plan's govern i n g
committee as the most exemplary company of all those implementing the Plan. At present, the
follow-up C, D, and E Plans are being implemented. MiTAC's leadership position in the are a s
that are the focus of these Planssupply chain management and material flow management
will solidify its competitive position moving forw a rd .
2. R e t u rn to the brand business, create new corporate value: For a company, a brand re p re s e n t s
m o re than just a means for achieving additional revenues. More import a n t l y, a brand offers a
channel for communication between a company, and the market and individual consumers,
c reating loyalty to and trust in the company and thereby becoming a source of value. MiTA C ' s
brand strategy is extremely clearto promote branded products only in specific markets and
specific product areas. After considering the three major factors of product characteristics,
market diff e rences, and growth potential, we have selected Pocket PCs and smart phones as our
main branded products, using Mio DigiWalker as the brand name for these products. (For
desktop PCs, servers, and data storage equipment, our business focus will remain on ODM
contract manufacturing.) Since the end of last year, since MiTAC launched its super-slim Mio
528 and Mio 338 in Taiwan, we have achieved a great deal of momentum, swiftly becoming
one of the three best-selling PDA brands in the Asia-Pacific region. This year, MiTAC will
continue to promote its brand business, with three or four new Pocket PC models slated for
release, and two new smart phone products also on tap. These new products will make the Mio
D i g i Walker product lineup more complete, and enable MiTAC to stake out new competitive
t e rr i t o ry and enhance its corporate image.
3. Integrate Group re s o u rces, invest in industry segments related to our core businesses: MiTA C ' s
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MiTAC
International
Corporation
Annual Report
2002
e ff o rts to combine its own and the Group's re s o u rces, as well as make strategic investments in
i n d u s t ry areas related to our core businesses, are gradually paying off. Last year, the addition
of a new member of the Gro u pTyan, a specialist in the design of motherboards for high-end
s e rvers and workstationsnot only enabled MiTAC to round out the high end of its pro d u c t
lineup, but also provided Tyan with ample support from the Group in the areas of pro d u c t i o n
and delivery. The result is that the competitiveness of both Tyan and the Group have benefited
e n o rm o u s l y. MiTAC Precision Te c h n o l o g y, another member of the MiTAC International Group, is
playing a critical role in the design and manufacture of precision molding, making it a critical
link in MiTAC's vertical integration strategy. By controlling precision molding technology,
M i TAC can more rapidly introduce products that meet customer re q u i rements while incre a s i n g
its design flexibility, thereby adding further to MiTAC's competitive advantage and winning it
new customers. In addition, MiTAC is also investing in the establishment of an independent
s o f t w a re development unitShanghai MiTAC Research Ltd. Its development eff o rts encompass
C O M P
A N Y
operating systems, applications, design testing, and production testing. Not only will MiTA C
itself take advantage of production testing software developed by Shanghai MiTAC Researc h
Ltd. in its own manufacturing operations, but it will utilize pro p r i e t a ry applications developed
by Shanghai MiTAC Research Ltd. for the Mio products. In the future, this process of integration
will continue to be a key focus.
O
V E R V I E W
Looking to the new year, we can anticipate that the industry will continue to change rapidly and
be characterized by intense competition. However, MiTAC is confident that through the
a p p roaches outlined above and by making a sustained eff o rt, we will continue to win customer
satisfaction, and to maintain excellent partnerships within the industry. MiTAC will take advantage
of the superb operational infrastru c t u re it has built up over many years, as well as its experienced
1
management team and flexible strategic planning, to achieve even better results going forw a rd .
M i TAC thanks all of its shareholders for their support, and looks forw a rd to their continued
encouragement and guidance during 2003.
With best wishes,
C h a i rm a n
P re s i d e n t
General Manager
Matthew Miau
Francis Ts a i
Billy Ho
5 Report to Shareholders
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MiTAC
International
Corporation
Annual Report
2002
Company Overview
Company Milestones
1 9 8 2 In November, the company's headquarters was established in the Hsinchu Science-Based
Industrial Park at 5-1 Technology Road, with re g i s t e red capital of NT$20 million, as a
designer and manufacturer of computers and associated hard w a re and software .
1 9 8 4 In July, the first capital increase was made, bringing total capital to NT$50 million.
1985 The company moved to 1 R&D 2nd Road in April.
To accommodate business growth and the first phase of factory expansion, profits were
reinvested, bringing capital to NT$70 million. After expansion, floor space at production
facility reached 5,398 square meters.
1986 To meet business needs, a second phase of factory and production equipment expansion
was commenced in July (adding a facility with a floor area of 4,937 square meters). For this
purpose, a cash infusion of NT$50 million was made, bringing total capital to NT$120
million. In addition, to accommodate business expansion, a Taipei office was established at
Company Pro f i l e
Date of Establishment August 12, 1982
Company Addresses and Telephone Numbers
Headquarters and Factory
1 R&D 2nd Road, Hsinchu Science-Based Industrial Park
Telephone: (03)577-9250
Linkou Branch Office
200 Wenhua 2nd Road, Kueishan Vi l l a g e
Telephone: (03)396-2888
Neihu Office
6th Floor, 187 Tiding Boulevard, Section 2, Neihu District, Ta i p e i
Telephone: (02) 2627-1188
8/F 585 Minsheng East Road for product display and sales meetings.
1986 P rofits were used to increase capitalization by NT$17 million in December, bringing total
paid-in capital to NT$137 million.
A cash infusion of NT$60 million was made in December, bringing total paid-in capital to
NT$197 million. The Company expanded its business scope, adding external investments
and trading in related pro d u c t s .
1988 Due to rapid business expansion, a cash infusion of NT$300 million and reinvestment of
NT$40.34 million was used to increase operating funds and finance a third phase of
f a c t o ry expansion (floor area of 2,074 square meters). After the increase, total paid-in
capital amounted to NT$540.34 million.
PC product series won four Outstanding Product Design awards at the Hannover IT
e x h i b i t i o n .
1989 Was the first Taiwanese manufacturer to adopt SMT technology, raising product quality and
reducing product sizes.
Selected as an Outstanding Vendor by the Ministry of Economic Aff a i r s .
Received Hsinchu Science-Based Industrial Park Product Outstanding Vendor Product
Innovation Aw a rd .
7 Company Overview
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MiTAC
International
Corporation
Annual Report
2002
Developed the world's fastest 80386-based personal computer.
Was the only vendor other than IBM able to field a complete PC product line with 286, 386,
and 486-based pro d u c t s
1990 In response to rapid business expansion, and to finance equipment purchases, the
establishment of MiTAC Technology Corporation, and the fourth phase of factory expansion
(with floor area of 33,884 square meters), a cash infusion of NT$297,558,000 and profit
reinvestment of NT$162,102,000 were made, bringing total paid-in capital to NT$1 billion.
To meet the need for additional funds to strengthen the Company's financial stru c t u re during
a period of rapid development of the Company's business, a cash infusion of
NT$123,229,250 was made, bringing paid-in capital to NT$1,123,229,250.
The Company's shares were publicly listed for sale on August 15.
To accommodate future business growth, and service medium- and long-term loans to finance
f a c t o ry expansion and equipment purchases, NT$224,645,850 from accumulated surpluses
was used for capitalization, bringing total paid-in capital to NT$1,347,875,100.
F o u rth phase of factory expansion completed.
Selected by the Ministry of Economic Affairs as an Outstanding Import / E x p o rt Vendor and
Outstanding Contribution to New Market Development Aw a rd .
1991 Surpluses were used to increase capitalization by NT$134,787,510. After doing so, total
paid-in capital amounted to NT$1,482,662,610.
The Company's first convertible debenture bonds, worth NT$450 million, were issued.
1992 The Company's first issue of convertible debenture bonds were publicly listed for sale.
Capital surplus of NT$148,266,260 was used to increase capital, bringing total paid-in
capital to NT$1,630,928,870.
Listed as an A-level outstanding vendor for environmental protection in an assessment of
Taiwan's 500 largest manufacturers by the Environmental Protection Agency.
Received award for outstanding import / e x p o rt perf o rmance from the Ministry of Economic
A ff a i r s .
M i TAC International quickened the pace of internationalization, expanding its production
facilities in the UK, in order meet demand in the European market.
1993 Aw a rded ISO9001 cert i f i c a t i o n .
A c q u i red American subsidiary and Compac (now Synnex Information Technologies, Inc.),
i n c reasing MiTAC International's competitiveness in the US market.
Established subsidiaries in Mexico and New Zealand.
M i TAC Shunde in China officially commenced operations, speeding MiTAC's move to
integrate its global sales and manufacturing re s o u rc e s .
1994 In finance business expansion and to strengthen the Company's operational and financial
s t ru c t u re, a cash infusion of NT$400 million was made, bringing total paid-in capital to
N T $ 2 , 101 , 066 , 210 .
M i TAC International's production arm in China, MiTAC Shunde, received ISO9002
c e rt i f i c a t i o n .
M i TAC International's computers won an award for export market diversification (Japan
region) and Bureau of Foreign Trade's Director's award .
M i TAC International's SuperGreen 4068 power-saving PC received a Taiwan Symbol of
Excellence award .
1995 M i TAC Group celebrated its 20th anniversary, embarking on a new era.
M i TAC International's 4023 notebook computer and 1766PD monitor received Taiwan
Symbol of Excellence award s .
M i TAC Internationalsigned a formal agreement with Compaq to establish a strategic
a l l i a n c e .
Cash infusion of NT$750 million was made, bringing total paid-in capital to
N T $ 1 , 852 , 485 , 000 .
Received Outstanding Vendor Aw a rd for 1995 from the Hsinchu Science-Based Industrial
Park (#3 in pro d u c t i v i t y, #5 in number of patents award e d ).
1996 M i TAC International made adjustments to its global organizational stru c t u re, creating the
Channel Business Group, Logistics Business Group, and Manufacturing Business Group, in
o rder to enhance utilization and integration of re s ro u c e s .
Cash infusion of NT$1,250,000,000 and capital surplus reinvestment of NT$285,248,540
made, bringing total paid-in capital to NT$4,387,734,020.
M i TAC International's notebook computers, desktop computers, monitors won Taiwan Symbol
of Excellence award s .
9 Company Overview
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MiTAC
International
Corporation
Annual Report
2002
Won Ministry of Economic Affairs' gold medal for applications of corporate EDI.
Received Ministry of Economic Affairs' gold medal award for 1996.
1997 M i TAC International's US subsidiary Synnex successfully acquired well-known American
distribution channel vendor Computer- L a n d .
M i TAC Internation's Hsinchu factory received ISO 14001 cert i f i c a t i o n .
Received bronze medal at sixth annual National Invention Aw a rds, demonstrating
recognition of re s e a rch capabilities in patentable technologies.
Essentia desktop and 5027 notebook computer won Best System and Best Portable prizes in
the Best of Computex awards organized by professional computer industry publication Byte
m a g a z i n e .
1784FDW monitor won a Taiwan Symbol of Excellence award .
M i TAC International marked the fifteenth anniversary of its founding, setting a corporate
d i rection summarized by its slogan "Global Resources Serving Individual Needs".
1998 M i TAC International issued its second series of unsecured convertible debenture bonds,
raising NT$2 billion.
LCD PC, Essential View LCD monitor, and 6031 notebook computer won Taiwan Symbol of
Excellence award s .
Listed by the Ministry of Economic Affairs' Bureau of Foreign Trade as #10 for import / e x p o rt
p e rf o rmance, and ranked #17 among the Top 20 Private Sector Manufacturers for 1998, as
published in the Ministry of Economic Affair's yearbook.
1999 Announced taking of a stake in well-known American computer mainboard design house
Tyan, thereby entering the market for high-end mainboard s
A cash infusion of NT$500,000,000 surplus reinvesment of NT$1,270,857,000 and
employee dividend recapitalization of NT$49,545,000 brought total paid-in capital to
N T $ 7 , 674 , 597 , 000 .
M i TAC International and its invested subsidiaries were integrated to create the MiTAC
I n t e rnational Group, setting a new objective of becoming one of the "Global Ten" business
g ro u p s .
The Essentia 6731 slim desktop won a Taiwan Symbol of Excellence award .
Received recognition from the Hsinchu County Government as an Outstanding Corporate
2000 Established MiTAC Computer (Shanghai) Ltd., MiTAC Computer (Kunshan) Ltd., and
Shanghai MiTAC Research Ltd. to expand production scale and respond to strategic
d e p l o y m e n t s .
Six products, including an LCD monitor, We b PAD, PDA, router won Taiwan Symbol of
Excellence award s .
Was ranked number 14 for number of patent applications in 2000.
Was chosen by the Ministry of Economic Affairs' Bureau of Foreign Trade as Outstanding
I m p o rt / E x p o rt Vendor for 2000.
2001 Received a silver medal at the tenth annual National Invention Aw a rds, the second time it
had been so honore d .
Ranked #7 among corporate entities in Taiwan for patent applications in 2001, a large
advance from its #14 ranking in 2000. It was ranked #8 in terms of patent appro v a l s .
M i TAC International's US subsidiary Synnex USA completed acquisition of all shares of
Merisel Canada, Inc.
Slim serv e r, home ro u t e r, CF card received Taiwan Symbol of Excellence award s .
2002 M i TAC International Group celebrated its twentieth anniversary, establishing its business
operations headquarters in Ta i w a n .
M i TAC International became the first domestic vendor in Taiwan to apply for and complete
c e rtification under the government's B Plan, and received an award from the Ministry of
Economic Affairs' Department of Industrial Te c h n o l o g y.
Received Supplier Meritorous Perf o rmance Aw a rd from Sun Microsystems, Inc. for the
second time.
Launched Pocket PC product, introducing the Mio DigiWalker brand for the entire product
series, re t u rning to the brand-name market. Within six months, Mio DigiWalker was among
the top three best-selling PDA brands in the Asia-Pacific re g i o n .
Mio DigiWalker Pocket PC products Mio 338 and Mio 728 won Taiwan Symbol of
Excellence award s .
Selected by the Institute for Information Industry as one of six companies in 2002 with
the richest portfolios of intellectual pro p e rty assets, and was ranked #7 for the number of
patent appro v a l s
Ta x p a y e r.
11 Company Overview
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MiTAC
International
Corporation
Annual Report
2002
Organizational Structure
O rganizational Chart
M i TAC International Group added a new memberTyan Computer, a specialist in the
design of high-end motherboards. Tyan formally established its business headquarters in
Chairman
Taiwan. The addition of Tyan's re s o u rces enabled MiTAC International's high-end product
line to be more comprehensive, and allowing both sides could work jointly to expand their
customer bases.
General Manager
Jointly established Y.S. Educational Foundation with member companies in the MiTAC
Incorporated Gro u p .
Audit Office
Public Relations Department
O t h e r
Finance Center
Resource Development
Center
In the most recent year and current year to the date of publication of this re p o rt, the Company has not
experienced the following:
System Architecture R&D Center
Project R&D and
Development Center
(1) Acquisition of another company.
(2) Major transfers or exchanges of stakes in the Company by directors, supervisors, or share h o l d e r s
with a greater than 10% share of the Company.
(3) Changes in executive-level management.
Technical Service Center
Brand Management Office
Legal Affairs Office
MIS Department
(4) Other relevant events that could affect stockholder equity or influence the Company.
Corporate Planning Office
Global Quality
Management Office
Desktop Product Business Unit
Professional System
Product Business Unit
Mobile Communication
Product Business Unit
Hsinchu Operations Unit
New Product Introduction Center
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MiTAC
International
Corporation
Annual Report
2002
Responsibilities of Major Depart m e n t s
Audit Off i c e
Examine and evaluate effectiveness of internal control mechanisms to ensure
they are intact, effective; provide analysis, evaluations, and re c o m m e n d a t i o n s .
P romote effective control of quality at reasonable cost and provide assessments
of quality levels
Global Product Quality
Management Off i c e
Desktop Product Business Unit
In charge of promoting product quality management system at global branches
and headquart e r s
In charge of R&D, sales, and promotion for desktop computer pro d u c t s
PR Depart m e n t
Finance Center
R e s o u rce
Development Center
Public re l a t i o n s
Financial operations and planning
Financial management and operations for overseas subsidiaries
R e s e a rch domestic and overseas investment opport u n i t i e s
Capital planning; handling of accounting and tax pro c e d u re s
C o o rdination of board and shareholder meetings
Strategic management of human re s o u rc e s
Management of domestic and overseas branch companies
P rofessional Systems
P roduct Business Unit
Mobile Communication
P roduct Business Unit
Hsinchu Operations Unit
In charge of R&D, sales, and promotion for professional systems pro d u c t s
Develop new-era multimedia computers, grasp OEM design dire c t i o n s
Take production of high profit margin products as its imperative
In charge of R&D, sales, and promotion for information appliance pro d u c t s
I m p o rt / E x p o rt management
I n v e n t o ry management for finished products and materials
Management and control of production materials
P roduct quality testing and contro l
System Arc h i t e c t u re s
R&D Cente
In charge of re s e a rch and development for future product technologies
Engineering Research and Development Center
P rovide safety certifications and PC engineering support for all types of pro d u c t s
New Product Intro d u c t i o n
R&D Center
In charge production process design and setting of product quality testing
s t a n d a rds for products from various business units before commencement of
mass pro d u c t i o n .
Technical Service Center
A f t e r-sales customer serv i c e
Overseas technical support
P roduct compatibility testing
Legal Affairs Off i c e
Draft and review contracts
P rovide legal consulting services and support; manage other legal aff a i r s
Brand Marketing Off i c e
MIS Depart m e n t
Responsible for global promotion of the MiTAC brand and marketing activities
P romotion of digitalization of operational system at global branches and
h e a d q u a rt e r s
Administration and maintenance of the Company's internal IT system and
network
Corporate Planning Off i c e
e - C o m m e rc e
I m p rovement of workflow
15 Company Organization
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MiTAC
International
Corporation
Annual Report
2002
D i r e c t o r, Supervisor, General Manager, Vice General Manager
D i rectors and Superv i s o r s
Units: Thousands of NT Dollars March 25, 2003
Ti t l e N a m e Date Elected Te rm S h a res Held Number of S h a res Currently S h a res Held Education and Experience Positions Currently Held at Spouse or Kin Within Tw o Remuneration in Most
( y e a r s ) D i rectly at Time S h a res HeldBy Spouse Under Other Other Companies D e g rees of Consanguinity Who Recent Year (See note.)
of Election C u rrently Held or Minor N a m e Is Executive, Dire c t o r, Superv i s o r Units: NT$1000s
# % To t a l # % To t a l # % Total # % To t a l Ti t l e N a m e R e l a t i o n
C h a i rm a n Matthew Miau 2001 . 05 . 25 3 9 , 963 , 892 1 . 12 12 , 136 , 073 1 . 17 0 0 0 0 Santa Clara University, EMBA M i TAC Inc Group, Chairm a n - - - 1 , 995
Vi c e Francis Ts a i 2001 . 05 . 25 3 1 , 530 , 788 0 . 17 2 , 020 , 578 0 . 19 243 , 630 0 . 02 0 0 C h i a o - Tung U, Computer/ M i TAC Te c h n o l o g y, Chairm a n - - - 1 , 947
C h a i rm a n
C o n t rol Eng Dept;
M i c ro Electronic Computer,
Vice GM; MiTAC Inc,
Vice GM for Operations
D i re c t o r Lienhwa Industrial 2001 . 05 . 25 3 63 , 559 , 320 7 . 12 72 , 711 , 862 6 . 98 0 0 0 0 Master's, General Manager BOC Lienhwa Industrial Co.,Ltd., - - - 1 , 322
Corp.
Vice GM; United Industrial
Rep: Jason Chou
Gases Co., Supervisor;Lienhwa
Commonwelth Corp., Supervisor
D i re c t o r M i TAC Inc 2001 . 05 . 25 3 84 , 946 , 578 9 . 52 97 , 178 , 884 9 . 33 0 0 0 0 Institute for Information M i TAC Inc ,Vice Chairm a n / G M - - - 1 , 322
Rep: Yun Kuo
I n d u s t ry, Vice Chairman &
CEO; Executive Yuan NII,
Exec Scty
D i re c t o r UPC Technology Corp. 2001 . 05 . 25 3 89 , 921 , 415 10 . 08 102 , 870 , 098 9 . 88 0 0 0 0 U of Dallas, MBA; UPC Technology Corp., Asst GM - - - 1 , 322
Rep: Simon Wu
Acer Group, CFO;
S u p e rv i s o r M i TAC Inc 2001 . 05 . 25 3 84 , 946 , 578 9 . 52 97 , 178 , 884 9 . 33 0 0 0 0 Washington U, MSEE Winbond Gro u p , P resident; - - - 1 , 322
Rep: Arthur Chiao
Winbond Electronic Co., Ltd.,
C h a i rm a n
S u p e rv i s o r Lienhwa Industrial Corp. 2001 . 05 . 25 3 63 , 559 , 320 7 . 12 72 , 711 , 862 6 . 98 0 0 0 0 Natl Taiwan U, Business Paohwa Industrial Co., Ltd., - - - 1 , 322
Rep: Sunny Sun A d m i n i s t r a t i o n C h a i rm a n
Note: Includes payment of travel expenses and salary for each director and superv i s o r. In cases where a director also serves as a manager, salary for each position is shown separately.
17 Company Organization
18

MiTAC
International
Corporation
Annual Report
2002
Major Institutional Shareholders December 31, 2002
D i rectors and Supervisors
Name of Institutional Share h o l d e r s
UPC Technology Corp.
M i TAC Incorporated
Lienhwa Industrial Corp.
P r i m a ry Shareholders of Institutional Share h o l d e r s
Lienhwa Industrial Corp.
Synnex Technology International Corp., Lienhwa Industrial Corp.
UPC Technology Corp.
Te rm s Five-Plus Years of Work Meets Requirements for Independence Remarks:
N a m e Experience Require d (See note.)
for Business, Law, or
Corporate Operations 1 2 3 4 5 6 7
Matthew Miau D i re c t o r
Francis Ts a i D i re c t o r
Lienhwa Industrial Corp.
M i TAC Incorporated
UPC Technology Corp.
D i re c t o r, one seat
S u p e rv i s o r, one seat
D i re c t o r, one seat
S u p e rv i s o r, one seat
D i re c t o r, one seat
N o t e s :
A checkmark () is placed in the column for each condition met by a given director or superv i s o r.
1. Not an employee of the Company, nor a dire c t o r, superv i s o r, or employee of any of the Company's aff i l i a t e s .
2. Not an individual shareholder owning more than 1% of the Company's outstanding shares nor one of the Company's ten
l a rgest share h o l d e r s .
3. Not the spouse or relative within two degrees of lineal consanguinity with any person described by conditions (1) or (2).
4. Not a dire c t o r, superv i s o r, or employee of a institutional shareholder of the Company directly or indirectly owning more than
5% of the Company's outstanding shares or one of the Company's five largest institutional investors.
5. Not a dire c t o r, superv i s o r, or manager of, nor a shareholder owning more than 5% of the outstanding shares of, any
companies or institutions that have a financial or business relationship with the Company.
6 .Not an individual who has provided financial, business, or legal services or consultancy to the Company during the past
y e a r, nor the owner, part n e r, dire c t o r, superv i s o r, or manager (or spouse of any of the foregoing) of any sole pro p r i e t o r,
p a rt n e r, company, or institution that has provided financial, business, or legal services or consultancy to the Company during
the past year.
7 .Not a legal entity (instituition) or re p resentative as defined by Section 27 of the Company Law, Republic of China.
19 Company Organization
20

MiTAC
International
Corporation
Annual Report
2002
Key Managers December 31, 2002
Ti t l e N a m e Date To o k S h a res Held S h a res Held By S h a res Held Education and Experience Positions Currently Held at Other Spouse or Kin Within Two S a l a ry, Expense Option Vo u c h e r s
O ff i c e D i re c t l y Spouse or Minor By Agent C o m p a n i e s D e g rees of Consanguinity Account, Bonuses Obtained By
Who Is Executive, Dire c t o r, Received by GM or E x e c u t i v e s
To t a l % To t a l % To t a l % S u p e rv i s o r Vice GM in Most Units: Share s
Recent Year
Ti t l e N a m e R e l a t i o n Units: NT$1000s
C E O Matthew Miau 1998 . 09 . 01 12 , 136 , 073 1 . 17 0 0 0 0 Santa Clara University, EMBA M i TAC Inc Group, Chairm a n - - - 69 , 586 18 , 980 , 000
P re s i d e n t Francis Ts a i 2000 . 04 . 01 2 , 020 , 578 0 . 19 243 , 630 0 . 02 0 0 C h i a o - Tung U, Computer/Control Mitac Te c h n o l o g y, Chairm a n - - - (Use of automobile:
Eng Dept; Micro Electronic Computer, - - - 13 , 527 )
Vice GM; MiTAC Inc, Vice GM for
O p e r a t i o n s
General Billy Ho 2000 . 03 . 27 997,655 0 . 10 0 0 . 00 0 0 Farleigh-Dickinson U, Sinfotek Info. Tech. Co.,Dire c t o r ; - - -
M a n a g e r MS Computer Science; UCSD Master's M i TAC Precision Te c h n o l o g y, Director;
Harbinger Ve n t u re Mgmt., Dire c t o r
E x e c u t i v e C.J. Lin 2000 . 03 . 27 630,825 0 . 06 0 0 . 00 0 0 Natl Taiwan U, Dept of Computer Science; Tsu Fong Investment Co, Ltd., Dire c t o r - - -
Vice GM
Kui-mao Elec., Manager
Vice GM C.S. Chen 1996 . 03 . 27 191,797 0 . 02 27 0 . 00 0 0 Soochow U, Dept of Accounting; Tyan, Supervisor; 3Probe Tech. Inc, - - -
Price Wa t e rhouse Coopers D i rector; MiTAC Precision Te c h n o l o g y,
S u p e rvisor; Linpus Technologies, Inc.,
S u p e rvisor; Myoutlet Corp., Superv i s o r
Vice GM C.H. Wa n g 1997 . 03 . 20 446,314 0 . 04 0 0 . 00 0 0 Chengkong U, Dept of Eng Science; - - - -
Vice GM P e rcy Chen 1997 . 03 . 20 509,608 0 . 05 20,000 0 . 00 0 0 Taipei Inst Of Tech, Electronics Dept; Myoutlet Corp., Chairman; - - -
Mitac Inc, Manager
3 P robe Tech. Inc, Dire c t o r
Vice GM Gino Chang 1997 . 03 . 20 250,240 0 . 02 0 0 . 00 0 0 Chungyuan U, BSEE; Kui-mao Elec., Mgr; - - - -
AMPEX, Head;
Vice GM James Yu a n 1997 . 06 . 06 80,038 0 . 01 0 0 . 00 0 0 Rutgers U, JD; Baker & McKenzie - - - -
Vice GM Samuel Wa n g 1999 . 07 . 01 418,989 0 . 04 0 0 . 00 0 0 Natl Taiwan U, Dept of Computer Science; - - - -
Longshine Electronics Corp., Sen Engineer
Vice GM Tod Chang 1999 . 09 . 01 17 0 . 00 0 0 . 00 0 0 Chungyuan U, Dept of Med Eng; - - - -
Vice GM P.C. Wa n g 2002 . 07 . 01 132,060 0 . 01 0 0 . 00 0 0 Natl Taiwan U, MS Comp Sci; ITRI, Asst - - - -
Engineer; Clevo, Manager; OPTI, Manager
Vice GM Stone Chen 2002 . 07 . 01 198,056 0 . 02 0 0 . 00 0 0 C h i a o - Tung U, BSEE; Natl Chengchih U, - - - -
MBA; NEXCOM International Co., Ltd.,
O ffice Mgr; Te l e S y n e rgy Corp., Mgr
Vice GM Michael Lin 2002 . 07 . 01 326,398 0 . 03 41,064 0 . 00 0 0 Natl Taiwan U, BS Computer Science - - - -
Vice GM Stone Lin 2002 . 03 . 27 336,684 0 . 03 960 0 . 00 0 0 Ming-Hsin Institute of Te c h n o l o g y, - - - -
Industrial Mgmt Dept
Vice GM Raymond Lee 2002 . 03 . 27 142,080 0 . 01 0 0 . 00 0 0 Chungyuan U, Industrial Eng Dept; - - - -
Taiwan, US Wi reless Comms Mfg Engineer
Vice GM Jack Kuo 2002 . 03 . 27 114,880 0 . 01 0 0 . 00 0 0 Natl Taiwan Institute of Te c h n o l o g y, MSEE;
Clevo, Vice GM - - - -
21 Company Organization
22

MiTAC
International
Corporation
Annual Report
2002
Change in Share Ownership by Directors, Supervisors, Managers, and
Major Shareholders
Consolidated Stock Holdings As of December 31, 2002
Units: share ; %
Ti t l e N a m e 2002 2003 to March 31
I n c re a s e I n c re a s e I n c re a s e I n c re a s e
( D e c rease) of ( D e c rease) of ( D e c rease) of ( D e c rease) of
Number of Number of Number of Number of
S h a res Held S h a re s S h a res Held S h a re s
M o rt g a g e d
M o rt g a g e d
C h a i rm a n Matthew Miau 1,175,792 0 0 0
Vice Francis Ts a i 488,712 ( 400 , 000 ) 0 0
C h a i rm a n
(See note.)
D i re c t o r Jason Chou Lienhwa Industrial Corp. 2,796,610 0 0 0
S u p e rv i s o r Sunny Sun R e p re s e n t a t i v e
D i re c t o r Yun Kuo Mitac Incorporated 3 , 737 , 649 0 0 0
S u p e rv i s o r A rthur Chiao R e p re s e n t a t i v e
D i re c t o r UPC Technology Corp. 3,956,542 0 0 0
R e p resentative: Simon Wu
General Billy Ho 518,407 0 0 0
M a n a g e r
Note: Recipient of transfer was not re l a t e d .
Holdings of Dire c t o r s ,
Invested Companies
S u p e rvisors, Managers,
(See note.) The Company's Holdings and Others Directly or Consolidated Holdings
I n d i rectly Controlling
the Company
N u m b e r P e rc e n t a g e N u m b e r P e rc e n t a g e N u m b e r P e rcentage
of Share s of To t a l of Share s of To t a l of Share s of Total
S h a re s S h a re s S h a re s
Mitac Technology Corp. 84,933,099 38 . 78 % 12,946,098 5 . 91 % 97 , 879 , 197 44 . 69 %
Tyan Computer Co. 7,298,916 16 . 63 % 6,903,333 15 . 73 % 14 , 202 , 249 32 . 35 %
Tung Da Investment Co., Ltd. 29,998,480 49 . 99 % 1,010 0 . 002 % 29 , 999 , 490 49 . 999 %
Silver Star Developments Ltd. 122,425,404 100 . 00 % 0 0 % 122 , 425 , 404 100 %
Tsu Fong Investment Co., Ltd. 6,500,000 100 . 00 % 0 0 % 6 , 500 , 000 100 %
3 - P robe Technologies Co., Ltd. 1,080,000 23 . 13 % 6,000 0 . 13 % 1 , 086 , 000 23 . 25 %
M i TAC Precision Technology Corp. 30,446,500 50 . 27 % 5,547,052 9 . 16 % 35 , 993 , 552 59 . 43 %
P roconn Technology Co., Ltd. 2,566,666 39 . 49 % 100,000 1 . 54 % 2 , 666 , 666 41 . 03 %
Lian Jie Investment Co., Ltd. 4,975,000 49 . 95 % 0 0 % 4 , 975 , 000 49 . 95 %
Sinfotek Information 3,600,000 36 . 36 % 3,601,000 36 . 37 % 7 , 201 , 000 72 . 74 %
Technology Co.
Channel Overseas Corp. 5,500,000 5 . 00 % 3,850,000 3 . 50 % 9 , 350 , 000 8 . 50 %
Wyse Technology Co., Ltd. 838,050 0 . 25 % 586,375 0 . 17 % 1 , 424 , 425 0 . 42 %
Vate Technology Co., Ltd. 595,793 0 . 30 % 0 0 % 595 , 793 0 . 79 %
Mitac Inc. 24,825,752 9 . 01 % 70,980,861 25 . 77 % 95 , 806 , 613 34 . 78 %
Overseas Investment and 1,000,000 1 . 11 % 0 0 % 1 , 000 , 000 1 . 11 %
Development Corp.
Everskil Enterprise Co., Ltd. 1,502,882 1 . 74 % 158,963 0 . 18 % 1 , 661 , 845 1 . 93 %
Lien Hwa Industrial Corp. 21,475,398 3 . 25 % 73,980,460 11 . 19 % 95 , 455 , 858 14 . 43 %
UPC Technology Corp. 18,749,478 2 . 67 % 173,794,346 24 . 77 % 192 , 543 , 824 27 . 44 %
Gemtek Technology Co., Ltd. 2,662,233 3 . 63 % 3,091,080 4 . 21 % 5 , 753 , 313 7 . 84 %
Harbinger Ve n t u re Capital Corp. 26,099,000 13 . 05 % 32,401,000 16 . 20 % 58 , 500 , 000 29 . 25 %
Jon An Technology Co., Ltd. 186,000 3 . 72 % 0 0 % 186 , 000 3 . 72 %
Actrans System Inc. 4,000,000 9 . 38 % 0 0 % 4 , 000 , 000 9 . 38 %
Trumpion Micro e l e c t ronics Inc. 916,300 4 . 63 % 238,700 1 . 21 % 1 , 155 , 000 5 . 84 %
Note: Investees are accounted for as long-term investments.
23 Company Organization
24

MiTAC
International
Corporation
Annual Report
2002
Capital and Shares, Corporate Bonds, Special Shares, Global Depositary Receipts,
Employee Stock Subscription Vo u c h e r, and Mergers:
Capital Sourc e s
Units: New Taiwan Dollars
D a t e I s s u e Authorized Common Stock Outstanding Common Stock R e m a r k s :
Price Per Number of A m o u n t Number of A m o u n t P ro p e rty Other Date and Document Number
S h a re S h a re s S h a re s S o u rce of Capital than Cash Taken for Activation (Approval) of
for Investment C a p i t a l i z a t i o n
1998 . 08 10 900 , 000 , 000 9 , 000 , 000 , 000 577 , 578 , 648 5 , 775 , 786 , 480 Capitalization of capital re s e rve, retained earnings, and conversion of entitled - 1998 . 06 . 09
stock certificates for 497,723,730, 273,747,860, and 27,077,520, re s p e c t i v e l y. ( 87 )- Ta i - Ts a i - C h e n g -( 1 )- 49977
1998 . 09 10 900 , 000 , 000 9 , 000 , 000 , 000 585 , 428 , 580 5 , 854 , 285 , 800 Conversion of entitled stock certificates for 78,499,320 - -
1999 . 02 10 900 , 000 , 000 9 , 000 , 000 , 000 635 , 428 , 580 6 , 354 , 285 , 800 Capital injection in cash of 500,000,000 - 1998 . 11 . 06
( 87 )- Ta i - Tsai(1) -Cheng-93004
1999 . 08 10 1 , 360 , 000 , 000 13 , 600 , 000 , 000 767 , 459 , 721 7 , 674 , 597 , 210 Capitalization of profits, and employee dividend for 1,270,857,160 and 49,454,250, re s p e c t i v e l y - 1999 . 06 . 22
( 88 )- Ta i - Tsai(1) -Cheng-56780
2000 . 02 10 1 , 360 , 000 , 000 13 , 600 , 000 , 000 769 , 108 , 799 7 , 691 , 087 , 990 Conversion of entitled stock certificates for 16,490,780 - -
2000 . 07 10 1 , 360 , 000 , 000 13 , 600 , 000 , 000 892 , 427 , 727 8 , 924 , 277 , 270 Capitalization of profits, employee dividends, conversion of entitled stock certificates for - 2000 . 06 . 03
1,153,663,180, 78,956,480, and 569,620, re s p e c t i v e l y ( 89 )- Ta i - Tsai(1) -Cheng-47983
2001 . 07 10 1 , 710 , 000 , 000 17 , 100 , 000 , 000 994 , 513 , 299 9 , 945 , 132 , 990 Capitalization of profits, employee dividends for 892,427,720 and 128,428,000, re s p e c t i v e l y - 2001 . 06 . 07
( 90 )- Ta i - Tsai-Cheng- (1)-136070
2002 . 07 10 1 , 710 , 000 , 000 17 , 100 , 000 , 000 1 , 041 , 568 , 630 10 , 415 , 686 , 300 Capitalization of profits and employee dividend for397,729,310 and 72,824,000, re s p e c t i v e l y - 2002 . 06 . 18
Ta i - Tsai-Cheng- (1)-0910132851
S h a res by Categories Authorized Capital R e m a r k s
Outstanding Share s Unissued Share s To t a l
(See note)
Common Stock 1 , 041 , 568 , 630 668 , 431 , 370 1 , 710 , 000 , 000 Of authorized share s :
200,000,000 are re s e rved for company convertible bonds;
150,000,000 are re s e rved for employee stock options;
200,000,000 are re s e rved for company bonds with warr a n t .
Note: Outstanding shares, including 190,000 of tre a s u ry stock, are all listed.
25 Company Organization
26

MiTAC
International
Corporation
Annual Report
2002
S h a reholding Stru c t u re As of March 25, 2003
List of Major Shareholders
N u m b e r
G o v e rnment Financial Other In I n d i v i d u a l s Q u a l i f i e d R e s e rv e d To t a l
C a t e g o ry I n s t i t u t i o n s I n s t i t u t i o n s s t i t u t i o n s F o re i g n S h a re s
Institutional
and Individual
I n v e s t o r s
S h a re s Number of Shares Held P e rcentage of Total Share s
Name of Share h o l d e r
UPC Technology Corp. 102,870,098 9 . 88 %
Mitac Incorporated 97,178,884 9 . 33 %
Number of Share h o l d e r s 7 8 157 125,659 78 1 1 2 5 , 9 1 0
Lienhwa Industrial Corp. 72,711,862 6 . 9 8 %
Number of Shares Held 135,055 3,366,016 373,985,397 632,689,124 31,203,038 1 9 0 , 0 0 0 1 , 0 4 1 , 5 6 8 , 6 3 0
P e rcentage of Total Share s 0 . 0 1 % 0 . 3 2 % 3 5 . 9 1 % 6 0 . 7 4 % 3 . 0 0 % 0 . 0 2 % 1 0 0 %
Market Price, Net Value, Earnings, and Dividends for the Most Recent Two Years
Units: New Taiwan Dollars
Distribution of Shareholdings S h a re/Par Value of NT$10 As of March 25, 2003
Range of Shares Held Number of Share h o l d e r s Total Number of Shares Held P e rcentage of Total Share s
1 - 999 45,632 15,470,626 1 . 49 %
1 , 000 - 5 , 000 53,079 119,660,471 11 . 49 %
5 , 001 - 10 , 000 13,703 95,451,754 9 . 16 %
10 , 001 - 15 , 000 5,698 67,502,067 6 . 48 %
15 , 001 - 20 , 000 2,312 40,670,949 3 . 91 %
20 , 001 - 30 , 000 2,428 58,449,263 5 . 61 %
30 , 001 - 40 , 000 982 33,821,535 3 . 25 %
40 , 001 - 50 , 000 523 23,788,582 2 . 28 %
50 , 001 - 100 , 000 931 63,986,383 6 . 14 %
100 , 001 - 200 , 000 404 55,051,968 5 . 29 %
200 , 001 - 400 , 000 133 35,949,212 3 . 45 %
400 , 001 - 600 , 000 34 16,775,764 1 . 61 %
600 , 001 - 800 , 000 21 14,265,757 1 . 37 %
800 , 001 - 1 , 000 , 000 4 3,856,791 0 . 37 %
M o re than 1,000,000 26 396,867,508 38 . 10 %
Ye a r 2001 2002 M a rch 31, 2003
I t e m (See note 1.)
Market Price Per Share H i g h e s t 30 . 90 24 . 5 14 . 1
L o w e s t 8 . 45 11 . 4 11 . 65
Av e r a g e 18 . 34 16 . 5 12 . 81
Net Wo rth Per Share B e f o re Distribution 15 . 60 16 . 02 16 . 22
After Distribution 14 . 90 * -
E a rnings Per Share Weighted Average Number of Share s 994 , 497 1 , 024 , 966 1 , 023 , 420
in Thousand Share s
E a rnings B e f o re Adjustments 1 . 02 0 . 84 0 . 17
Per Share After Adjustments 0 . 97 * -
Dividend Per Share Cash Dividend 0 . 1 * -
Stock Dividend F rom Retained Earn i n g s 0 . 4 * -
F rom Capital Reserv e - - -
Accumulated Unpaid Dividends Declare d - - -
R e t u rn On Investment P r i c e / E a rnings Ratio (See note 2.) 17 . 98 19 . 64 -
Price/Dividend Ratio (See note 3.) 183 . 4 * -
Cash Dividend Yield Rate (See note 4.) 0 . 0055 * -
* The Company has not yet held a shareholder's meeting to determine allocation of earnings for 2002.
1. To the last quarter prior to publication of this re p o rt .
2. Price/Earnings Ratio = (Ye a r-End Share Price) / (Earnings Per Share )
3. Price/Dividend Ratio = (Ye a r-End Share Price) / (Cash Dividend Per Share )
4. Cash Dividend Yield Rate = (Cash Dividend Per Share) / (Average Closing Share Price for Ye a r )
To t a l 125,910 1,041,568,630 1 0 0 . 0 0 %
27 Company Organization
28

MiTAC
International
Corporation
Annual Report
2002
Dividend Policy and Implementation
Employee Bonuses and Renumeration for Directors, Supervisors
Company Dividend Policy
The Company is part of an industry that is in a growth stage, and the Company it is growing along
with this industry. In consideration of the industry environment in which the Company operates, longt
e rm financial planning, and future financing re q u i rements, as well as to satisfy shareholder demand
for cash inflows, the Company shall, after payment of taxes and covering losses occurred in past
years, allocate 10% of earnings as a legal re s e rve. More o v e r, it shall after deducting interest paid
to shareholders allocate at least 5% as an employee dividend, with the distribution of the re m a i n d e r,
together with any undistributed earnings from the previous year, to be proposed by the Board of
D i rectors for approval at the shareholder's meeting.
Scale and Scope of Employee Bonuses and Renumeration for Directors and
S u p e rvisors As Set Forth in Company Regulations
(1) Employee Bonus: Where the Company has earnings at the end of the business year,
after paying all relevant taxes, deducting accumulated deficits from past years, and
setting aside a legal re s e rve of ten percent, it shall in accordance with the law
a p p ropriate a special earnings surplus. After payment of interest on stocks, a
minimum of 5% of the remainder shall be appropriated for employee bonuses.
(2) Scale and Scope of Renumeration for Directors and Supervisors: Not specified in
company re g u l a t i o n s .
If the employee dividend described above is distributed as stock shares, employees of subsidiaries of
the Company who meet specified conditions are also eligible to receive such shares. The Chairm a n
is authorized to set the relevant conditions.
The earnings allocations and shareholder cash dividend rates described above are to be set by the
B o a rd of Directors giving due consideration to the Company's financial condition, future financing
re q u i rements, and profit status, with cash dividends not less than 10% of total stock dividends, and
subject to adjustments approved at the shareholder's meeting.
P roposal for Dividend Distribution
In accordance with the above principles, the Company's Board of Directors on April 7, 2003 drafted
a proposal for dividend distribution for the current year (2003), with a cash dividend for each share
of NT$0.2. The proposal will be presented for approval at the shareholder's meeting on May 23,
2003 .
I n f o rmation on the Proposed Scheme for Distribution of Employee Bonuses as
Passed by the Board of Dire c t o r s
On April 7, 2003, the Board of Directors passed a resolution on the distribution of the
Company's earnings in 2002 as follows:
(1) Distribute to employees cash bonuses totaling NT$77,841,382, and re n u m e r a t i o n
totaling NT$4,000,000 to directors and superv i s o r s .
(2) P roposed number of shares to be distributed as employee stock bonuses: None.
S h a re of capitalized earnings: 0%.
(3) Consider using for discussion an after-tax basic earnings per share figure of
NT$0.76 after distribution of employee bonuses and renumeration for directors and
s u p e rv i s o r s .
Impact of Stock Dividend Proposed at Shareholder's Meeting
on the Company's Business Performance and Earnings Pe r
Share:Not applicable.
29 Company Organization
30

MiTAC
International
Corporation
Annual Report
2002
Resolution of Employee Bonuses and Renumeration to Directors and Supervisors Last Ye a r
Corporate Bond Issues April 8, 2003
Actual Figures Resolved Upon at 2001 Shareholder's
Meeting and by the Board of Dire c t o r s
(1) Dividend Distribution Employee cash bonus -
Employee stock bonus
A. Number of Share s 7,282,000 share s
B. Va l u e N T $ 72 , 824 , 000
C. Share of total shares in circulation at year- e n d 0 . 73 %
Remuneration to directors, superv i s o r s N T $ 10 , 000 , 000
(2) Information on Earnings Per Share Earnings Per
S h a re (See note 1.) N T $ 1 . 02
Set Earnings Per Share (See note 2.) N T $ 0 . 93
Note: 1. Calculation does not account for the portion of earnings utilized for capitalization in 2002.
2. Calculated based on the following formula: (Earnings Per Share) = ((Net Profit for the Period)
(Employee Bonus) (Renumeration for Directors and Supervisors)) / (Weighted Average Number of
S h a res in Circulation During That Ye a r )
C a t e g o ry U n s e c u red Convertible Debenture Bonds S e c u red Convertible Debenture Bonds
Second Series
First Series
Date of Issue May 13, 1998 F rom November 11, 2000 to
December 13, 2000
Par Va l u e N T $ 100 , 000 N T $ 1 , 000 , 000
Issue Price 100% at par value 100% at par value
Total Amount NT$2,000,000 thousand NT$2,500,000 thousand
I n t e rest Rate 0 % Annualized 5.82% at par value
D u r a t i o n Seven Ye a r s Five Ye a r s
Date of Maturity: May 12, 2005 Date of Maturity: November 11, 2005
~ December 13, 2005
G u a r a n t o r N o n e N o n e
Tru s t e e I n t e rnational Commercial Bank Of China, C h i n a t rust Commercial Bank,
Trust Division
Trust Division
U n d e rw r i t e r China Development Financial Holding Corp. N o n e
U n d e rwriting Attorn e y - A t - L a w G e o rge Lin G e o rge Lin and Weng Chin-Kun
Auditing CPA Chen Yong-Ching, Wen Fang-Yu Wen Fang-Yu
Treasury Stock April 8, 2003
S e q u e n c e
First (period)
P u r p o s e
To transfer to employees
P e r i o d September 7, 2001 to November 16, 2001
Price Range
Between NT$10and NT$13
Type and Quantity Bought Back
190,000 shares of common stock
Value of Shares Bought Back N T $ 2 , 212 , 143
S h a res Cancelled or Tr a n s f e rre d 0
Accumulated Share s
190,000 share s
Te rms of Repayment Excepting transfers, principal and interest Principal and interest paid upon
paid upon maturity
m a t u r i t y
Outstanding Principal NT$1,246,000 thousand NT$2,500,000 thousand
1.When the common stock price exceeds
Te rms of Redemption or the original conversion price by at least
Repayment in Advance 50% for 30 consecutive days -
2.When the total value of unconverted
bonds amount to less than NT$200 million
Restrictive Te rm s The value of disbursed cash dividends -
shall not exceed 15% of capital stock
C redit Assessing Results N o n e N o n e
Accumulated Held Shares As Percentage of Total Issued Share s 0 . 0 2 %
31 Company Organization
32

MiTAC
International
Corporation
Annual Report
2002
Corporate Bond Issues April 8, 2003
Employee Stock Options
C a t e g o ry U n s e c u red Convertible Debenture Bonds S e c u red Convertible Debenture Bonds
Second Series
First Series
Amount of common N T $ 754 , 000 , 000 Not applicable
s h a res, GDR, or other
securities as of the
publication date of
A u x i l i a ry the annual re p o rt .
R i g h t s Te rms of Issuance The holder shall during a period commencing Not applicable
and Conversion one month after issue of this convert i b l e
(swap or
d e b e n t u re bond and continuing to 10 days
s u b s c r i p t i o n s ) b e f o re its date of maturity, excepting periods
for legally permitted transfers of rights, make
a request of the Company to convert this
bond into a stock cert i f i c a t e .
Clauses of Issuance and Applying a conversion price of NT$24.43 Not applicable
Conversion, Swap or Stock to outstanding principal of
Subscription, Effect of Issuing NT$1,246,000,000, if the full amount is
Conditions on Possible Dilution c o n v e rted, the number of common stock
of Stock Rights and
s h a res will increase by appro x i m a t e l y
Stockholder's Current Rights 51,003,000 shares, re p resenting just 4.9%
and Intere s t s
of the current total number of shares, thus
having a limited effect on share h o l d e r
i n t e re s t s .
Name of Custodian or Subject Not applicable Not applicable
of Swap
Units: New Taiwan Dollars
C a t e g o ry of Corporate Bonds U n s e c u red Convertible Debenture BondsSecond Series
Ye a r 2001 2002 April 8, 2003
I t e m
Market Price of H i g h 133 143 144 . 5
C o n v e rtible Bond L o w 122 . 5 133 141
Av e r a g e 128 . 85 139 . 65 143 . 48
Conversion Price 1. 33.55 (1/1~7/8) 1. 25.59 (1/1~7/14) 1. 24.43 (1/1~4/8)
2. 25.59 (7/9~12/31) 2. 24.43 (7/15~12/31)
Issue Date and Conversion Price on Issued on May 13, 1998, on which date the conversion price was
Issue Date
NT$67.9 per share
O v e rview of Employee Stock Options April 8, 2003
C a t e g o ry
2001, First Issue of Employee Stock Options
Executive Approval Date September 13, 2001
Issuance Date October 18, 2001
Issuance Units 99 , 000
Number of Shares for Purchase as 9 . 50 %
P ro p o rtion of Total Shares Issued
S h a reholding Period
6 years
Method of Pro v i s i o n
Issuance of new share s
Period and Pro p o rtional Limitations Persons exercising stock options must do so in accordance with the
on Exercise of Options (%)
timing specified by item 2 under the Article 5 of these pro c e d u re s
e x e rcise these rights, and complete an application form for doing so,
p resenting this to the company's stock agency for processing, with
right to exercise suspended during a period commencing at least thre e
business days prior to a legal transfer or rights, the date of declaration
by the Company to the Taiwan Securities Exchange of intent to disburse
a stock dividend or cash interest on stock, until the day appointed for
disbursement of the same.
Number of Shares Already Acquire d 0
T h rough Exercised Options
Value of Stocks in Exercised Options 0
Number of Shares In Unexercised Options 99,000,000 share s
E x e rcise Price of Unexercised Options N T $ 9 . 5 / s h a re
Number of Shares In Unexerc i s e d 9 . 50 %
Options as Share of Total Issued Share s
Impact on Stockholder equity
Persons with stock option rights conferred by the Company may only
e x e rcise such rights in accordance with the timetable specified in these
regulations, and only after a period of two years has elapsed since the
option voucher was issued to the employee. There f o re, there will be no
significant dilution of earnings per share, nor compromises to
stockholder equity.
P rovision of Shares for Conversion
Issue new share s
Preferred Stock Issuance: None
Issuance of Global Depositary Receipts: None.
33 Company Organization
34

Names of Managers With Employee Stock Option Vouchers and Employees Among Top Ten In Te rms of Number of
S h a res For Which Options are Held and Whose Purchase Value is at Least NT$30 Million, Options Acquire d ,
Status of Options
April 8, 2003
Ti t l e N a m e No. of No. of A l ready Exerc i s e d Not Exerc i s e d
s h a res S h a res in No. of P r i c e A m o u n t No. of No. of P r i c e A m o u n t No. of
a c q u i re d A c q u i red S h a re s S h a res S h a re s S h a res
O p t i o n s Options as as % of as % of
P e rcentage Total Issued Total
of Total S h a re d I s s u e d
S h a re s
S h a re d
C E O Matthew 3,000,000 0 . 30 % 0 N / A 0 0 3 , 000 , 000 9 . 5 28 , 500 , 000 0 . 29 %
M i a u
Corporate Francis 3,000,000 0 . 30 % 0 N / A 0 0 3 , 000 , 000 9 . 5 28 , 500 , 000 0 . 29 %
P re s i d e n t Ts a i
Acquisitions or Issue of Other Companies' Equity as New Shares: None.
O P E R A
T I O N S
O
V E R V I E W
2
35 Company Organization
36

MiTAC
International
Corporation
Annual Report
2002
Business Scope
Main lines of business and pro d u c t s
S h a res of Revenue
Units: Thousands of NT Dollars
M i TAC International's three core businesses are: (1) desktop computer products; (2) network pro d u c t s ,
including workstations, servers, and data storage equipment; (3) wireless communications pro d u c t s ,
including Pocket PC products (including models with wireless communications capabilities), other mobile
devices with integrated wireless communications capabilities, and smart phones.
Following are descriptions of current pro d u c t s :
(1) Desktop Computer Pro d u c t s
C o n s u m e r-oriented multimedia computers
Ye a r
P ro d u c t 2002 S h a re
Desktop Computer Pro d u c t s 13 , 067 , 494 51 . 90 %
Networking Pro d u c t s 6 , 148 , 363 24 . 42 %
LCD Computer Pro d u c t s 3 , 879 , 699 15 . 41 %
Wi reless Communications Pro d u c t s 399 , 939 1 . 59 %
Peripherals and Other Pro d u c t s 1 , 682 , 067 6 . 68 %
To t a l 25 , 177 , 562 100 . 00 %
H i g h - p e rf o rmance business computers
H i g h - p e rf o rmance network computers
Small form factor multimedia personal computers
LCD computers
H i g h - resolution display card s
H i g h - p e rf o rmance computer mainboard s
E n t ry-level and midrange workstations
H i g h - p e rf o rmance power supplies
(2) Networking Pro d u c t s
H i g h - p e rf o rmance workstations
General-use serv e r s
Rack-mounted serv e r s
Ultra-dense serv e r s
Telecommunications serv e r s
Blade storage
(3) Wi reless Communications Pro d u c t s
Windows CE-based handheld computers (including products with wireless communications capabilities)
Mobile devices with integrated wireless communications capabilities, smart phones
Technical support and after-sales services for the above pro d u c t s .
New Products and Technologies Planned for Development
(1) Desktop Computer Pro d u c t s
Personal computers with integrated digital AV capabilities, diversified styling and applications
Personal computers integrating home electronics pro d u c t s
Personal computers integrating wired and wireless networking capabilities
H i g h - p e rf o rmance low-cost dual-processor workstations
(2) Networking Pro d u c t s
H i g h - p e rf o rmance workstations based on RISC/CISC pro c e s s o r s
Development of high-perf o rmance serv e r s
Development of ultra-dense serv e r s
Development of telecommunications serv e r s
Development of storage device technologies
(3) Wi reless Communications Pro d u c t s
Technologies for integrating computers and telecommunications
Integrate data retrieval, voice, and wireless broadband communications
Extensions of Internet-centric devices merging PCs and information appliances, with integrated
telecommunications and storage technologies
Technology related to multimedia applications
Development of wireless communications and networking technologies
37 B u s i n e s s
38

MiTAC
International
Corporation
Annual Report
2002
R e s e a rch in wireless communications equipment technology
R e s e a rch in the developments in new digital media, seeking in the process new business opportunities and
development of related pro d u c t s
R&D for operating systems and application software
Development and application of virtual reality software
(4) Other
Ultra-dense, high-frequency electronic arc h i t e c t u res and associated automated production and testing
t e c h n o l o g i e s .
D e f e c t - f ree manufacturing (DFM) product design.
P roduct design and manufacturing technologies for satisfying environmental protection re q u i rements and
ISO standard s .
High-speed PC arc h i t e c t u res and heat flow technologies.
Technologies and Products Successfully Developed in the Last Ye a r
To keep abreast of global market trends for wireless communications, mobile communications, and networking
p roducts, ensure timely development of new technologies and products, and coordinate R&D re s o u rces in
Taiwan, China, and the US to rapidly introduce technology pro d u c t sthis is MiTAC International's main R&D
s t r a t e g y. Adopting the product standards promoted by mainstream technology leaders such as Intel, Sun, and
M i c rosoft, while developing exclusive technologies, and then launching product at an opportune time to meet
market demand will allow MiTAC International to take advantage of business opportunities. Pro d u c t
diversification, comprehensive product lines, complete upstream and downstream supplier network, and
globalized production infrastru c t u re are our competitive stre n g t h s .
(1) Key Results:
A. Allied with world-leading vendors in servers, workstations, and storage equipment to develop and
m a n u f a c t u re servers, workstations based on high-peformance processors, allowing MiTAC Intern a t i o n a l
to achieve a leading position in the professional server and workstation segment.
B. Adopted Microsoft's wireless PDA software technology in developing wireless networking products, while
simultaneously purs int development of PDAs and Pocket PCs with large world-class vendors.
C. Took advantage of MiTAC International's development of globally integrated division of labor system, as
well as its overall engineering, production, and distribution logistical capabilities. Worked with worldleading
vendors to jointly develop leading-edge wireless networking and personal computer
Technology and R&D
technologies. Became a key personal computer supplier for individual and home-use computers that
integrate multiple capabilities such as video, audio, graphics, and wireless communications.
R&D Expenditures
Units: Thousands of NT$
(2) Pro d u c t s :
A. Desktop Computers
Business and home PCs: Designed a series of computers with a basic arc h i t e c u re utilizing CPUs with the
I t e m
Ye a r 2 0 0 2 2003 to March 31 (See note.)
R&D Expenditure s 8 7 7 , 0 7 4 2 4 7 , 1 8 2
newest technologies, AGP graphics cards, 3D sound capabilities, wireless networking, and a system
design providing superior heat dissipation.
E n t ry-level and midrange workstations: Single- and dual-processor Intel x86 pro c e s s o r- b a s e d .
Note: To the end of the last complete quarter prior to printing of this re p o rt .
39 B u s i n e s s
40

MiTAC
International
Corporation
Annual Report
2002
M a r ket and Manufacturing Sales
B. Networking Pro d u c t s
Workstations and related products: Expanded cooperation with world0-leading vendors to develop,
design, manufacture, and market high-perf o rmance single- and multiple-processor workstations, becoming
one of the few companies able to develop and provide both Unix and Windows NT workstations.
S e rvers: MiTAC International has accumulated many years of experience in developing multi-pro c e s s o r
Market Analysis
Sales Regions for Main Pro d u c t s
Please see page 87.
multi-function servers. In response to growing global market and strong demand for servers and data
storage equipment, MiTAC International 's R&D team has created single-, dual- and quad-pro c e s s o r
s e rvers, utilizing high-density system integration technologies to develop ultra-dense serv e r s .
Data Storage Devices: MiTAC International has responded to the increasing size of the data storage
device market by devoting R&D teams to the development of data storage device technologies and
p ro d u c t s .
Blade Storage
C. Wi reless Communications Pro d u c t s
Wi reless communications and networking products: Through strategic alliances and investments,
developed Bluetooth and IEEE 802.11b/a wireless communications computer interface cards and PDAs.
PDA products: Allied with Intel and Microsoft, using Intel's Dalhart CPU with Microsoft's Pocket PC
2002/2003 to develop the world's lightest and compact Pocket PDA pro d u c t s .
Mobile telecommunications modules: To meet demand for products with voice and data communications
capabilities, exploited the advantages of a world-class mobile telecommunications components vendor to
Market Share
Because of the diff e rent formulae used for calculation, and predominance of company's ODM/OEM in its
overall business, it is difficult to determine actual market share. MiTAC International debuted the Mio
D i g i Walker handheld computer in the second half of last year, and its ranking in this market is rapidly
advancing. Because its brand is a relative latecomer, there is a great deal of potential growth.
After several years of eff o rt, Taiwan's large IT vendors are now able to provide integrated global logistical
management. This capability allows these vendors to accommodate customer product launch timetables in
design, testing, manufacturing, assembly, and sales distributiont h e reby giving customers the best possible
competitive position in the market. As the continuing trend of large international brand vendors seeking
Taiwanese partners makes evident, an increasing quantity of non-PC products will be outsourced to Ta i w a n
for design and manufacturing. For most Taiwanese vendors, including MiTAC International, these alliances
will allow market competitiveness to be stre n g t h e n e d .
develop 2.5-G GSM/GPRS and CDMA 1X-RTT mobile telecommunications modules.
Handheld smart client devices: Allied with Intel and Microsoft, integrating PDA technologies and mobile
telecommunications module technologies to develop PDA products with mobile telecommnications
capabilities , and smart phones.
Telecommunications software: To meet demand for mobile telecommunications products, developed video
camera, phone book, MMS, Java applet and J2ME MIDP-compliant telecommunications application
s o f t w a re for bundling with handheld smart client devices.
F u t u re Supply and Demand, and Growth Prospects for the Market
(1) Desktop Computers
The global PC industry is now more than twenty years old. Products are largely in a mature phase of
development, with the major markets of the USA, Europe, and Japan quite saturated, limiting potential for
f u t u re growth. As for emerging markets such as China, India, and Latin America, due to the relatively level
of penetration for PCs compared to the previously mentioned markets, they present a much brighter picture
for strong growth in the future .
41 B u s i n e s s
42

MiTAC
International
Corporation
Annual Report
2002
(2) Networking Pro d u c t s
A c c o rding to a re p o rt from the Institute for Information Industry, due to the influence of factors such as the
slowing of growth in the global economy, corporate staff reductions, and conservative spending inform a t i o n
t e c h n o l o g y, worldwide market demand for servers has been weak. In 2002, the level of growth in Ta i w a n ' s
s e rver industry was lower than expected, negatively impacted by sluggish economic conditions and a
reduction in orders stemming from the HP/Compaq merg e r. However, there were other large intern a t i o n a l
vendors that took up the slack by outsourcing a greater quantity of manufacturing. There f o re, overall,
Taiwan's server shipments still managed to slightly exceed the unit volume achieved in 2001. Vo l u m e
shipments in 2002 were 1.468 milllion units, an increase of 6.4% over 201. The value of shipments rose by
a negligible 0.2%, as component prices continued to slide and Taiwanese vendors cut prices to win ord e r s .
As the computing environments faced by businesses becomes ever more complex, companies must purc h a s e
m o re servers to resolve associated problems. However, as servers become more numerous, administration
and security issues will arise. Additionally, space for network server equipment is limited, providing impetus
for the growth of the rack-mountable product segment, which is expected to account for half the serv e r
market in 2003. Furt h e rm o re, in order to save space and ease administration, as well as re d u c e
companies' overall cost-of-ownership, more compact products have emerg e dthe so-called blade serv e r s .
In the long term, this type of product will gradually replace bulky traditional tower form factor serv e r s .
Instead, these blade servers and rack-mounted servers will largely divide the market between them.
Looking to 2003, Wharton Economic Forecasting Associates (WEFA) and the IMF forecast respectively that
global GDP in 2003 will grow by 3.7% and 2.8%, gradually emerging from its recent lows. In additio,
major international brand vendors will gradually increase outsourcing the manufacture of their serv e r
p roducts in order to reduce costs. Taiwanese companies possess advantages such as low costs, high quality,
and excellent logistical infrastru c t u rethese will enable them to obtain additional orders. There f o re, the
Institute for Information Industry predicts that Taiwanese companies will see their server unit shipments
i n c rease by 12% in 2003, while attaining a global market share of close to 31%.
As for other products such as data storage equipment, these are expected to grow in tandem with
continuing development of the Internet. Once market conditions re c o v e r, businesses will begin expanding
their equipment purchases, making prospects for this segment very favorable.
(3) Wi reless Communications Pro d u c t s
With the continuing spread of Internet usage, market demand for various types of associated equipment has
been increasing rapidly, Although demand has been affected by the bursting of the dot.com bubble, in the
long term, growth potential is excellent, as Internet applications will become an important development
t rend. Additionally, because wireless communications technology is increasingly mature, driving consumer
demand for mobile communications, market prospects for wireless Internet access devices are excellent.
S u rvey results from several market re s e a rch firms all point to the growing popularity of inform a t i o n
appliance products. By 2005, production volume of these devices is expected to reach 170 million, with
p roduction value of over US$40 billionmaking it a huge potential market. Taking handheld companion
devices as an example, the rate of market growth thus far has been stunning. According to statistics fro m
IDC, in 2001, the global PDA market was 10 million units, while this figure increased to 15 million in
2002. It forecasts that shipments will grow to 33.62 million units in 2004, while its share of shipments for
handheld companions as a whole will grow to 94.62%, and achieve a compound annual growth rate of
38.1%. In terms of market value, the figure of US$3.65 billion in 2000 is set to increase to US$10.76
billion in 2004, a remarkable rate of growth. The Institute of Information Industry's Market Intelligence
Center and Ministry of Economic Affairs' ITIS Project point out that the eff o rts of Taiwanese vendors in the
development of PDAs is beginning to pay off. Beginning in 2003, total shipment volumes will achieve high
rates of growth, with unit shipments for this year reaching 6 million, an increase of 50% over the
comparable figure for 2002. With global shipments for 2003 forecast to reach 13 million units, Ta i w a n ' s
s h a re is close to 50%. In 2004, Taiwan's shipments are expected to reach 8 million unit, accounting for
50% of worldwide shipments of 16 million.
Tu rning to operating systems, III points out that although Pocket PC's share of the global PDA market in
2002 was around 35% (including WinCE products), this figure may surpass the 50% mark in 2003, while
achieving a compound annual growth rate of 70.9%. Shipments of devices using the Pocket PC operating
system are expected to grow to 1.3 million in 2004.
S m a rt phones, which combine computing capabilities with wireless telecommunications, should achieve a
compound annual growth rate of roughly 163.7%, with shipments of 480,000 units in 2000 growing to
2.319 million in 2004. Market value is expected to grow from 2000's US$269 million to 2004's US$8.44
billion, becoming the industry's next star pro d u c t .
43 M a r ket and Manufacturing Sales
44

MiTAC
International
Corporation
Annual Report
2002
WinCE OS ( Pocket PC ) Annual Growth Rates
(2) Development Pro s p e c t sPositive Factors
A. Integrate supply chain for basic Internet equipment
2000 2001 2002 2003 2004
WinCE (Pocket PC) devices shipped (1000s of units) 1 , 481 3 , 385 6 , 301 9 , 480 13 , 000
G rowth rate (%) 197 % 129 % 86 % 50 % 35 %
S o u rce: IDC, III-MIC, the Ministry of Economic Affair's ITIS Project, 2003
The development and implementation of distribution and sales model with global e-commerc e
mechanisms, along with MiTAC International's having already developed high-end products for dire c t
p roduction and sales approach have allowed it to dramatically increase eff i c i e n c y, while also re d u c i n g
costs and increasing customer satisfaction.
B. Global e-Manufacturing Model
Competitive Advantage and Development Pro s p e c t sPositive and Negative Factors, Strategic Responses
In order to overcome the effects of global economic stagnation, MiTAC International shall take advantage of
the Joint Development Manufacturing (JDM) approach. JDM integrates global R&D, engineering, manufacturing
design, engineering design, sales and technology, and after-sales service in a new operational model that
achieves higher customer satisfaction and delivers a competitive advantage.
(1) Competitive Advantage
Competitive advantage in the wireless communications industry and products lies chiefly in: sales development,
R&D capabilities, cost control, stable product quality and high-yield production process, rapid ramp-up to mass
p roduction, inventory management and components purchasing, strong back-end operational support, and
solid financials. MiTAC International's competitive advantages are as follows:
A. Grasp of customer re q u i rements and market conditions: With the growth of the market for wire l e s s
communications-enabled handheld devices, MiTAC Internaitonal is working with customers to develop the
market. In addition, it is negotiating joint projects with world-class IT vendors, in the process attaining a
grasp of market trends and developing new products in re s p o n s e .
B. Work with the world's first-rank software and hard w a re vendors to ensure supply: Includes support fro m
s o f t w a re vendors for software development, as well as sources for key components.
C. R&D innovation: Numerous products have continued to win various awards and establish a sterling
re c o rd .
D. Continuing advance in product quality and production capacity: Many years of accumulated experience
in PC and embedded systems product technologies are a big advantage in design and manufacturing.
With the benefit of several years' experience with a globalized logistical model, MiTAC International's e-
manufacturing infrastru c t u re is nearing completion. Operations in Taiwan and the USA handling R&D and
design, while facilities in China and Taiwan produce modules and assembly kits. BTO/CTO assembly
centers in the USA, Australia, and UK complete a global manufacturing model based on a coord i n a t e d
division of labor. Based chiefly on the sophistication of the product's underlying technology, pro d u c t i o n
costs, transport times, and tax considerations, a determination will be made as to the manufacturing
network system that best accommodates delivery re q u i rements specified by the ord e r. Taiwan is larg e l y
responsible for high-end motherboards, workstations, servers, and storage devices. Components and
systems that are less sophisticated technologically and are less time-sensitive are manufactured in China.
High-priced key components are sourced at the location of global production sites. This globally
integrated division of labor has already enabled MiTAC International to grow from a local org a n i z a t i o n
into a internationalized e-manufacturing company with global R&D, engineering, manufacturing, and
sales distribution infrastru c t u re .
C. Expand development of high value-added pro d u c t s :
In response to emerging development trends favoring the integration of wireless Internet access
capabilities in computers, MiTAC International will continue to ally with world-leading vendors to jointly
develop markets. MiTAC International will pursue development of several products in this category, such
as Windows CE-based handheld computer products (including products with wireless communications
capabilities), and smart phones.
In addition, in view of the Internet's future development and growth in market demand for servrs and data
storage equipment, MiTAC International will cotinue to develop Intel arc h i t e c t u re-based servers and data
storage devices.
P roduction capacity has increased in tandem.
45 M a r ket and Manufacturing Sales
46

MiTAC
International
Corporation
Annual Report
2002
Major Applications and Production
Process for Main Products
Besides continuing to develop the key North American and European markets, China and Japan will be
the focus of market development eff o rt s .
D. Total digitialization of the supply chain
In view of MiTAC International's global production re q u i rements, and in response to the pro d u c t
localization needs, MiTAC has not only modularized design of key components, but has also integrated
the e-commerce capabilities of upstream vendors to achieve global real-time delivery. It can there b y
reduce operational risks, reduce inventories, and provide customers with on-time delivery of ord e r s .
(3) Development Pro s p e c t sNegative Factors
A .Intense competition: After the entry of major vendors into the development and manufacturing of handheld
computer products, it can be expected that products will become more diversified and product life cycles
s h o rtened, with industry competition even fierc e r.
Strategic Response
(a) S t ress R&D innovation, strengthen R&D capabilities, shorten product development cycles, maintain the
ability to launch new models. Use product diff e rentiation, manufacturing scale to maintain pro d u c t
compeititiveness and pro f i t s .
(b) I n c rease levels of customer satisfaction in areas from upstream design, mass manufacturing, and
followup support. Seek strategic alliances with world-leading vendors.
(c) Take strong advantage of the global logistics and manufacturing sales approach to cre a t e
c o m p rehensive material planning, value chain, and followup support capabilities.
Major Product Applications
P roduct Ty p e Major Applications and Functionalities
Wo r k s t a t i o n s Graphical computing tool needed by
d e s i g n e r s
S e rv e r s
Data handling for businesses
Data Storage Data storage for businesses
E q u i p m e n t
Desktop PCs P ro d u c t i v i t y, educational, entertainment
tool for individuals, families, schools,
and businesses
Handheld Personal and business applications for
Computers individuals, business users, enterprises,
(including products families, schools, etc. (PIM applications
with wireless such as scheduling, business card
communications management, meeting notes, sending
c a p a b i l i t i e s ) and receiving e-mail, communications,
multimedia, entertainment tools, etc)
PIM, wireless data connectivity,
multimedia applications as needed by
the user.
S m a rt Phone Wi reless data connectivity, voice, video,
multimedia applications
P roduction Pro c e s s
Electronic
SMTAutomated
ICTTesting
Manual Assembly
Substrate
Substrate Touch-Up
Substrate Burn
ATEAutomated
Functional Tesitng
B. Key Components Remain Under the Control of Foreign Ve n d o r s
Strategic Response
(a) Diversify key component supply channels: Seek additional suppliers to ensure adequate supply and
competitive pricing. In addition, establish good working relationship with domestic vendors that have
a l ready or are planning to produce key components in order to increase flexibility.
(b) Use scale to obtain support advantage: Deliver strong-selling products to obtain further orders fro m
l a rge OEM/ODM customers, and use the pricing leverage provided by large purchases to re d u c e
overall costs.
System Assembly
Functional Testing
Packging
Random Testing
Finished Product
47 M a r ket and Manufacturing Sales
48

MiTAC
International
Corporation
Annual Report
2002
Supply of Key Components
O r i g i n
S u p p l i e r
Listing of Major Suppliers
Units: Thousands of NT Dollars
C P U U S A Original Manufacture r
H a rd Disk Drive USA, Japan, Kore a Original Manufacture r
D R A M USA, Japan, Germ a n y, Kore a Original Manufacture r
Printed Circuit Board Taiwan, Korea, USA Original Manufacture r
LCD Monitor K o rea, Japan, Ta i w a n Original Manufacture r
C h i p s e t USA, Ta i w a n Original Manufacture r
CD-ROM Drive K o rea, Taiwan, Japan Original Manufacture r
M o d e m Ta i w a n Original Manufacture r
Ten Largest Customers and Suppliers for the Most Recent Two Ye a r s
I t e m 2001 2002
S u p p l i e r Va l u e Net Purc h a s e S u p p l i e r Va l u e Net Purc h a s e s
as Percentage
as Perc e n t a g e
of Total Sales
of Total Sales
(%) (%)
1 M i TAC Pacific (HK) 14 , 137 , 112 44 . 14 M i TAC Computer (ShunDe) 18 , 600 , 087 50 . 74
2 H P 2 , 188 , 404 6 . 83 M i TAC Computer (KinShan) 1 , 668 , 837 4 . 55
3 N v i d i a 1 , 381 , 373 4 . 31 I n t e l 1 , 466 , 796 4 . 00
4 Sunrise Mold & 1 , 255 , 818 3 . 92 Texas Instru m e n t s 1 , 119 , 583 3 . 05
P l a s t i c
5 Hynix Ta i w a n 960 , 179 3 . 00 Chi Mei Optoelectro n i c s 1 , 103 , 419 3 . 01
6 C o m p a q 905 , 325 2 . 83 M i TAC Japan 1 , 024 , 561 2 . 79
Listing of Major Customers
Units: Thousands of NT Dollars
7 Texas Instru m e n t s 6 2 7 , 4 7 2 1 . 9 6 S e a g a t e 7 3 2 , 0 8 6 2 . 0 0
8 M i c ro n 5 5 4 , 4 8 6 1 . 7 3 Sunrise Mold & Plastic 6 9 9 , 0 0 2 1 . 9 1
I t e m 2001 2002
C u s t o m e r Va l u e Net Purchases C u s t o m e r Va l u e Net Purc h a s e s
as Percentage
as Perc e n t a g e
of Total Sales (%) of Total Sales (%)
1 Customer D 4 , 784 , 759 16 . 82 Customer F 5 , 468 , 085 21 . 72
2 S y n n e x 4 , 408 , 775 15 . 50 Customer E 3 , 380 , 332 13 . 43
3 Customer C 3 , 421 , 100 12 . 03 S y n n e x 3 , 095 , 247 12 . 29
9 S e a g a t e 453 , 875 1 . 42 N v i d i a 642 , 658 1 . 75
10 Wintech 408 , 135 1 . 27 M i c ro n 513 , 342 1 . 40
M i c ro e l e c t ro n i c s
O t h e r 9 , 157 , 490 28 . 59 O t h e r 9 , 093 , 259 24 . 80
To t a l 32 , 029 , 669 100 . 00 To t a l 36 , 663 , 630 100 . 00
I n c reases and decreases in purchase amounts reflect the Company's considerations of yearly sales strategy, material
re q u i rements, vendor supply prices, delivery terms, and product quality.
4 SYNNEX U.K. 2 , 164 , 190 7 . 61 M i TAC U.K. 1 , 772 , 022 7 . 04
5 Customer F 1 , 764 , 330 6 . 20 Synnex U.K. 1 , 488 , 950 5 . 91
6 Customer G 1 , 552 , 371 5 . 46 Customer H 1 , 144 , 845 4 . 55
7 Customer H 1 , 589 , 815 5 . 59 Customer C 1 , 009 , 949 4 . 01
8 Customer I 1 , 523 , 080 5 . 35 Customer D 674 , 766 2 . 68
9 M i TAC U.K. 1 , 125 . 251 3 . 96 Customer A 644 , 250 2 . 56
10 Customer J 485 , 618 1 . 71 Customer B 630 , 950 2 . 51
O t h e r 5 , 628 , 418 19 . 77 O t h e r 5 , 868 , 166 23 . 30
To t a l 28 , 447 , 707 100 . 00 To t a l 25 , 177 , 562 100 . 00
Note: I n c reases and decreases in purchase amounts reflect the Company's considerations of market trends, pro d u c t
demand, business prospects, R&D technology, sales profits, and customer contracts.
49 M a r ket and Manufacturing Sales
50

MiTAC
International
Corporation
Annual Report
2002
Employed Staff
P roduction Volumes and Value for the Last Two Years
Units: Thousands of NT Dollars, Units
Ye a r 2 0 0 1 2 0 0 2 2003 toApril 8
Major Pro d u c t s 2001 Pro d u c t i o n 2002 Pro d u c t i o n
C a p a c i t y Vo l u m e Va l u e C a p a c i t y Vo l u m e Va l u e
Desktop Computers 6 , 600 , 000 2 , 471 , 662 13 , 193 , 459 5 , 000 , 000 1 , 835 , 754 12 , 142 , 649
Networking Pro d u c t s 400 , 000 170 , 955 5 , 551 , 976 630 , 000 203 , 309 5 , 334 , 850
LCD PCs 799 , 000 439 , 839 5 , 137 , 727 800 , 000 417 , 325 3 , 974 , 079
Wi re l e s s 1 , 000 222 1 , 812 70 , 000 53 , 137 378 , 794
Communications Pro d u c t s
Peripherals and Other Pro d u c t s 1 , 239 , 096 1 , 161 , 659
To t a l 25 , 124 , 070 22 , 992 , 031
Note: The production capacity figures listed above include overseas processing work
I n d i re c t 1094 1077 1075
Number of Employees D i re c t 204 195 199
To t a l 1298 1272 1274
Average Age 34 . 36 35 . 93 34 . 78
Average Years of Employment 4 . 75 5 . 56 5 . 01
Level of Education P h D 6 5 5
M a s t e r ' s 157 181 182
C o l l e g e 876 850 846
High School 140 135 136
Less than High School 119 101 105
Sales Volumes and Value for the Last Two Years
Units: Thousands of NT Dollars/Units
Expenses Incurred To Address Environmental Protection Issues
Major Pro d u c t s 2001 2002
Domestic Sales F o reign Sales Domestic Sales F o reign Sales
Vo l u m e Va l u e Vo l u m e Va l u e Vo l u m e Va l u e Vo l u m e Va l u e
Desktop Computers 14 , 980 87 , 336 2 , 470 , 748 14 , 404 , 587 832 5 , 792 1 , 821 , 538 13 , 061 , 702
Networking Pro d u c t s 0 0 169 , 455 6 , 866 , 548 0 0 203 , 309 6 , 148 , 363
LCD PCs 48 , 729 606 , 298 390 , 418 4 , 857 , 662 58 , 552 616 , 796 358 , 773 3 , 262 , 903
Wi reless Comms 0 0 222 1 , 764 4 , 016 36 , 622 49 , 121 363 , 317
P ro d u c t s
Peripherals and Other 157 , 179 1 , 466 , 333 13 , 596 1 , 668 , 471
P ro d u c t s
To t a l 850 , 813 27 , 596 , 894 672 , 806 24 , 504 , 756
In the last year to the publication date of this re p o rt, the company has not suff e red losses or subjected to any
fines stemming from environmental contamination. The company's policy re g a rding environment protection are
as follows:
As a professional computer assembly vendor, the production process consists of assembly operations.
T h e re f o re, the production process does not give rise to any regulated air pollution, water pollution, or toxic
wastes. In addition, in 1992 the company received recognition from the Environmental Protection Agency as an
outstanding vendor in the Agency's first environmental protection assessment. It achieved ISO14000
c e rtification in 1997, and maintains a commitment to preventing pollution. In 1999, it won a two-year mark of
distinction after passing an safety and hygiene system evaluation conducted by the Council of Labor Aff a i r s .
The Company shall continue to promote environmental protection and worker safety, with the aim of attaining
sustained zero-pollution, zero - i n j u ry business operations.
51 M a r ket and Manufacturing Sales
52

MiTAC
International
Corporation
Annual Report
2002
Labor/Management Re l a t i o n s
The company is an information technology company, and its staff is suitably composed. In order to pursue a
business philosophy based on humane management principles, the company has actively sought to cre a t e
various communication channels, and respects the views of its employees. Employees are able to actively
p a rticipate in affairs related to labor/management relations. Following is an overview of the company's policy
in the are a :
Communication and Incentives
The Company greatly values the views of its employees, and has designated a dedicated staff members to be
in charge of employee relations. It has also created a post office box, encouraging employees to provide their
opinions and respond to problems. Each year, an employee meeting is held, better allowing employees to
d i rectly communicate with executives. In the hope that employee needs could be better met, every six months,
d e p a rtmental satisfaction surveys are conducted, as well as a comprhensive exectuvie surv e y. At the end of
each year, an employee satisfaction survey is conducted in order to ensure that employee concerns are
u n d e r s t o o d .
The Company has spared no eff o rt to establish internal communication channels. At present, the e-mail system
is already in general use by employees, reducing paper waste and a proliferation of re p o rt sand incre a s i n g
communication eff i c i e n c y. At the same time, the Company has created an internal "speak-out mailbox" e-mail
a d d ress where employees can directly express their views. In addition, in consideraton of employees, the
Company invested more than NT$4 million to set up a videoconferencing system linking offices in Hsinchu,
Linkou, and Taipei, thereby reducing the need to travel between these locations for work purposes. Since this
system was implemented, employees in Hsinchu, Linkou, and Taipei can not hold inter- o ffice meetings without
needing to leave their own offices, but the company's internal communications have been greatly enhanced.
The company has also implemented an electronic bulletin board to regularly promulgate the Company's
business ideals, announce business perf o rmance, and publish useful information from the outside world. In
o rder to provide an effective encouragement to employees and enhance morale, the Company selected an
outstanding employee at the end of each year, and also honors senior employees who have completed five,
ten, fifteen, and twenty years of service. At the Company's year-end weiya part y, the chairman and pre s i d e n t
p resent gold commemorative plaques and monetary prizes. The company's main business unit in the Ta i p e i
suburb of Linkou was moved to the Hwa-Ya Technology Park during August 2001. In order to minimize any
inconvenience for employees during the moving process, a shuttle bus was provided to transport them between
the Park and Taipei. At the new location, a sufficient number of spaces in a parking garage were allotted to
c o m f o rtable working enviro n m e n t .
Benefits and Tr a i n i n g
The Company considers its employees to be one of its most important assets. In addition to providing employee
insurance in conformance with relevant labor laws, the Company has also joined group life and overseas travel
insurance plans, with the Company covering the full amount of insurance fees.
A well-organized employee benefits committee with members selected by individual departments not only holds
regular meetings to coordinate the Company's worker benefits measures and programs, but also org a n i z e s
intra-company clubs to promote leisure and re c reational activities that can build camaraderie among
e m p l o y e e s .
The Company has established a re f e rence library that is open to employees all day, stocking it with materials
on CD-ROM and participating in the Sci-Tech Interlibrary Cooperation Association so that employees can easily
access information pertinent to their work. The Company also provides comprehensive training programs to
stimulate employees' potential and allow them to
continuously learn and grow as they workm a k i n g
work a home and a school. Each year, the Company
disburses substantial funds for employee education.
S e v e real years of eff o rt in this area, have yielded
re s u l t s .
Labor/Management Disputes
The Company has negotiated a As curre n t
labor/management relations at the Company are
h a rmonious, the possibility of losses stemming fro m
disputes in this area are exceedingly low. The
Compnay will remain faithful to principles of humane
management and continuing building a system of
multiple channels of communication, not only to
maintain the current harmonious state of re l a t i o n s
between labor and management, but also in the hope
of advancing these relations even furt h e r.
those employees driving to work. These measures were undertaken to give employees a more convenient and
53 Labor/Management Re l a t i o n s
54

MiTAC
International
Corporation
Annual Report
2002
Major Agreements
Acquisition or Disposition of Assets
Ty p e P a rt y Period of Va l i d i t y Main Te rm s L i m i t a t i o n s
Major Asset Acquisitions
As of December 31, 2002 Units: Thousands of NT Dollars
Patent License I B M J a n u a ry 1, 1999 to License related to personal Licensed rights cannot
C o n t r a c t December 31, 2005 i n f o rmation management system be transferred or
and its components
f o rfeited to a third
Rights to worldwide manufacturing p a rt y.
and sales
Fees and other payable items as
negotiated by the two part i e s
Computer Software P h o e n i x F rom June 29, 1991 S o f t w a re license for technology Licensed rights cannot
License Contract related to PC BIOS be transferred or
f o rfeited to a third
p a rt y.
A c q u i red Acquiring R e l a t i o n s h i p Conditions
A s s e t i n P r i c e S e l l e r with Of Use
C o m p a n y
M i TAC International Corporation:
Grand Cathay Bond Fund 2002 . 1 ~ 12 418 , 000 Grand Cathay Securities N o n e S h o rt - Te rm
I n v e s t m e n t
The First Global Investment 2002 . 1 ~ 12 745 , 000 Yuanta Core Pacific N o n e D i t t o
Trust Duo Li Bond Fund
Securities Co., Ltd.
The First Global Investment 2002 . 1 ~ 12 959 , 000 Yuanta Core Pacific N o n e D i t t o
Trust Duo Li-2 Bond Fund
Securities Co., Ltd.
The First Global Investment 2002 . 1 ~ 12 303 , 000 Yuanta Core Pacific N o n e D i t t o
Trust Wan Tai Bond Fund
Securities Co., Ltd.
Jin Sun Bond Fund 2002 . 1 ~ 12 904 , 000 Jih Sun Securities Investment N o n e D i t t o
Trust Co., Ltd.
Litigation Proceedings
The Company has not been involved in any ligitation proceedings in the most recent two years or the curre n t
year to the date of publication of this annual re p o rt .
No directors, supervisors, general managers, authorized re p resentatives, or large shareholders owning 10% of
total shares or companies under shareholders' control have been involed in any ligitation proceedings in the
most recent two years or the current year to the date of publication of this annual re p o rt .
Investco GP ROC Bond Fund 2002 . 1 ~ 12 920 , 000 Invesco Taiwan Limited N o n e D i t t o
P rudential Bond Fund 2002 . 1 ~ 12 1 , 276 , 000 P rudential Securities N o n e D i t t o
Investment Trust Co., Ltd.
P rudential Well Pool Fund 2002 . 1 ~ 12 1 , 764 , 000 P rudential Securities N o n e D i t t o
Investment Trust Co., Ltd.
The Wan Pao Fund 2002 . 1 ~ 12 624 , 353 I n t e rnational Investment N o n e D i t t o
Trust Co., Ltd.
ABN AMRO Bond Fund 2002 . 1 ~ 12 750 , 000 ABN AMRO Asset N o n e D i t t o
Management Taiwan Ltd.
ABN AMRO Select Bond 2002 . 1 ~ 12 1 , 239 , 000 ABN AMRO Asset N o n e D i t t o
F u n d
Management Taiwan Ltd.
NITC Bond Fund 2002 . 1 ~ 12 838 , 000 National Investment Trust Co., Ltd. N o n e D i t t o
P resident Home Run Bond 2002 . 1 ~ 12 1 , 299 , 000 P resident Investment Trust N o n e D i t t o
F u n d
C o r p o r a t i o n
James Bond Fund 2002 . 1 ~ 12 893 , 000 P resident Investment Trust N o n e D i t t o
C o r p o r a t i o n
CITC Safe Income Fund 2002 . 1 ~ 12 808 , 000 Capital Securities Corporation N o n e D i t t o
JF (Taiwan) Bond Fund 2002 . 1 ~ 12 1 , 115 , 000 J a rdine Fleming Taiwan N o n e D i t t o
Investment Management Ltd.
55 Major Agreements / Litigation Proceedings
56

MiTAC
International
Corporation
Annual Report
2002
Infornation on Disposition of Major Assets
As of March 31, 2003 Units: Thousands of NT Dollars
As of December 31, 2002 Units: Thousands of NT Dollars
Date P u rchase R e l a t i o n s h i p Conditions
A s s e t A c q u i re d P r i c e S e l l e r with Of Use
C o m p a n y
M i TAC International Corporation:
Grand Cathay Bond Fund 2003 . 1 ~ 3 363 , 000 Grand Cathay Securities N o n e S h o rt - Te rm
Investment Trust Co., Ltd.
I n v e s t m e n t
Jin Sun Bond Fund 2003 . 1 ~ 3 569 , 000 Jih Sun Securities Investment Trust N o n e D i t t o
Co., Ltd.
P rudential Well Pool Fund 2003 . 1 ~ 3 587 , 000 P rudential Securities Investment N o n e D i t t o
Trust Co., Ltd.
Far Eastern Alliance Taiwan 2003 . 1 ~ 3 631 , 500 Far Eastern Alliance Asset N o n e D i t t o
Bond Fund
Management Co., Ltd.
Fubon Ju-I Fund 2003 . 1 ~ 3 306 , 000 Fubon Asset Management Co., Ltd. N o n e D i t t o
N O T E S :
1 .Assets listed have an acquistion price exceeding 20% of total paid-in capital or NT$300 million. Acquired funds are
shown in consolidated form .
2 . To the last quarter prior to publication of this re p o rt .
Name of Asset A c q u i re d D i s p o s e d O u t s t a n d i n g P r i c e G a i n Buyer R e l a t i o n s h i p
i n i n B a l a n c e or Loss w i t h
C o m p a n y
M i TAC International Corporation:
Mitac Technology 1998 . 4 2002 . 1 ~ 2 - 409 , 702 224 , 833 Public Off e r i n g N o n e
Corporation share s
Grand Cathay Bond 2002 . 1 ~ 12 2002 . 1 ~ 12 - 418 , 267 267 Grand Cathay Securities N o n e
F u n d
Investment Trust Co., Ltd.
The First Global 2002 . 1 ~ 12 2002 . 1 ~ 12 - 745 , 484 484 Yuanta Core Pacific N o n e
Investment Trust Duo Li
Securities Co., Ltd.
Bond Fund
The First Global 2001 . 12 ~ 2002 . 1 ~ 12 - 978 , 839 609 Yuanta Core Pacific N o n e
Investment Trust Duo 2002 . 12 Securities Co., Ltd.
Li-2 Bond Fund
The First Global 2001 . 12 ~ 2002 . 1 ~ 12 - 357 , 231 231 Yuanta Core Pacific N o n e
Investment Trust Wan 2002 . 12 Securities Co., Ltd.
Tai Bond Fund
Jin Sun Bond Fund 2002 . 1 ~ 12 2002 . 1 ~ 12 - 839 , 820 1 , 099 Jih Sun Securities N o n e
Investment Trust Co., Ltd.
Investco GP ROC 2002 . 1 ~ 12 2002 . 1 ~ 12 - 920 , 651 651 Invesco Taiwan Limited N o n e
Bond Fund
P rudential Bond Fund 2002 . 1 ~ 12 2002 . 1 ~ 12 - 1 , 253 , 397 1 , 468 P rudential Securities N o n e
Investment Trust Co., Ltd.
P rudential Well Pool 2002 . 1 ~ 12 2002 . 1 ~ 12 - 1 , 765 , 311 1 , 311 P rudential Securities N o n e
F u n d
Investment Trust Co., Ltd.
The Wan Pao Fund 2001.12~ 2002 . 1 ~ 12 - 675 , 164 811 I n t e rnational Investment N o n e
2002 . 12 Trust Co., Ltd.
ABN AMRO 2002 . 1 ~ 12 2002 . 1 ~ 12 - 750 , 777 777 ABN AMRO Asset N o n e
Bond Fund
Management Taiwan Ltd.
ABN AMRO Select 2002 . 1 ~ 12 - 1 , 239 , 612 612 ABN AMRO Asset N o n e
Bond Fund
Management Taiwan Ltd.
NITC Bond Fund 2002 . 1 ~ 12 - 838 , 353 353 National Investment N o n e
Trust Co., Ltd.
P resident Home Run 2002 . 1 ~ 12 - 1 , 299 , 885 885 P resident Investment N o n e
Bond Fund
Trust Corporation
James Bond Fund 2002 . 1 ~ 12 - 893 , 675 675 P resident Investment N o n e
Trust Corporation
Fubon Ju-I Fund 2001.12 ~ 2002 . 1 ~ 12 - 910 , 335 2 , 335 Capital Securities N o n e
2002 . 12 C o r p o r a t i o n
JF (Taiwan) Bond Fund 2002 . 1 ~ 12 2002 . 1 ~ 12 - 1 , 115 , 673 673 J a rdine Fleming Taiwan N o n e
Investment Management
L t d .
57
Acquisition or Disposition of Assets
58

As of M a rch 31, 2003 Units: Thousands of NT Dollars
Name of Asset A c q u i re d D i s p o s e d O u t s t a n d i n g P r i c e G a i n Buyer R e l a t i o n s h i p
i n i n B a l a n c e or Loss w i t h
C o m p a n y
M i TAC International Corporation:
Grand Cathay Bond 2003 . 1 ~ 3 2003 . 1 ~ 2 - 363 , 224 224 Grand Cathay Securities N o n e
F u n d
Investment Trust Co., Ltd.
Jin Sun Bond Fund 2002 . 12 2003 . 1 ~ 3 - 495 , 664 385 Jih Sun Securities N o n e
- 2003 . 3 Investment Trust Co., Ltd.
P rudential Well 2003 . 1 ~ 3 2003 . 1 ~ 3 - 508 , 270 298 P rudential Securities N o n e
Pool Fund
Investment Trust Co., Ltd.
Far Eastern Alliance 2002 . 12 2003 . 1 ~ 3 - 638 , 063 563 Far Eastern Alliance Asset N o n e
Taiwan Bond Fund - 2003 . 3 Management Co., Ltd.
F I N A N C I A L
Fubon Ju-I Fund 2003 . 1 ~ 3 2003 . 1 ~ 3 - 306 , 216 216 Fubon Asset N o n e
Management Co., Ltd.
N o t e :
1. Assets listed are those who disposition price was at least 20% of total paid-in capital of NT$300 million. Funds are shown
in consolidated form .
2. To the last quarter prior to publication of this re p o rt .
Implementation of Capital Utilization Plans: None
3
S T
A N D I N G
59
Acquisition or Disposition of Assets
60

MiTAC
International
Corporation
Annual Report
2002
Most Recent Five-Year Concise Financial Information
Most Recent Five-Year Balance Sheet
Units:Thousands of NT Dollars
Concise Profit/Loss Statment
Units:Thousands of NT Dollars
Ye a r Most Recent Five-Year Financial Inform a t i o n M a rch 31, 2003
I t e m 1998 1999 2000 2001 2002 (Unaudited
by CPA )
C u rrent Assets 10,584,766 13,102,826 17,457,550 9,530,651 11,866,398 11 , 579 , 124
Fund and Long-Te rm Equity 3,999,209 5,887,927 8,460,554 10,454,496 11,193,389 11 , 129 , 438
I n v e s t m e n t s
Net Pro p e rt y, Plant and Equipment 2,571,781 3,651,997 3,912,890 3,158,165 2,788,135 2 , 739 , 342
Intangible Assets - - - - - -
Other Assets 385,500 371,522 799,107 1,253,624 1,325,485 1 , 240 , 889
Total Assets 17,541,256 23,014,272 30,630,101 24,396,936 27,173,407 26 , 688 , 793
C u rrent B e f o re Distribution 5,962,669 7,875,288 12,803,922 4,303,710 7,761,752 7 , 101 , 709
L i a b i l i t i e s After Distribution 6,290,383 8,269,842 13,260,136 4,413,142 Not distributed Not distributed
L o n g - Te rm Liabilities 1,666,435 1,741,753 2,662,500 4,149,758 2,500,000 2 , 500 , 000
Other Liabilities 12,587 148,032 430,831 425,570 491,924 491 , 924
Total Liabilities B e f o re Distribution 7,641,691 9,765,073 15,897,253 8,879,038 10,753,676 10 , 093 , 633
After Distribution 7,969,405 10,159,627 16,353,467 8,988,470 Not distributed Not distributed
Common Stock 5,963,060 7,675,922 8,924,277 9,945,133 10,415,686 10 , 415 , 686
Capital re s e rv e 1,529,434 3,175,857 3,381,120 3,339,293 3,110,806 3 , 110 , 806
Ye a r Financial Data for the Most Recent Five Ye a r s M a rch 31, 2003
I t e m 1998 1999 2000 2001 2002 (Unaudited
by CPA )
Operating Revenues 36,798,923 30,260,023 47,311,663 28,447,707 25,177,562 8 , 813 , 043
G ross Pro f i t s 3,494,556 2,792,327 3,462,283 2,199,047 2,055,723 622 , 939
Operating Pro f i t 1,592,012 1,056,904 1,051,226 222,073 278,468 108 , 015
Non-Operating Revenue 669,669 1,182,021 1,507,138 1,238,231 1,154,129 159 , 373
Non-Operating Expenses ( 253 , 143 ) ( 193 , 163 ) ( 433 , 757 ) ( 409 , 483 ) ( 555 , 013 ) 91 , 957
P re - Tax Profit for Continuing 2,008,538 2,045,762 2,124,607 1,050,821 877,584 175 , 431
O p e r a t i o n s
P rofit for Continuing Operations 1,808,490 1,734,943 1,803,419 1,010,821 864,904 175 , 431
P rofit for Discontinued Operations - - - - - -
E x t r a o rd i n a ry Pro f i t a b i l i t y - - - - - -
Influence of change in - - - - - -
Accounting Principles
Net Pro f i t 1,808,490 1,734,943 1,803,419 1,010,821 864,904 175 , 431
E a rnings P re - re t ro s p e c t i o n 3 . 14 2 . 27 2 . 02 1 . 02 0 . 84 0 . 17
per Share P o s t - re t ro s p e c t i o n 1 . 93 1 . 67 1 . 73 0 . 97 0 . 84 0 . 17
Retained B e f o re Distribution 2,110,738 2,194,572 2,351,114 1,885,493 2,374,734 2 , 5 2 7 , 5 6 6
E a rn i n g s After Distribution 462,713 567,398 874,044 1,305,508 Not distributed Not distributed
U n realized Loss on Long-Te rm ( 2 , 8 6 9 ) - ( 3 5 2 , 0 7 2 ) ( 4 3 1 , 1 7 8 ) ( 4 , 0 8 1 ) ( 4 , 0 8 1 )
I n v e s t m e n t s
Names of Certifying Accountants and Their Recommendations for the Most Recent Five Ye a r s
Translation Adjustments 299,202 202,848 428,409 781,369 771,092 7 7 1 , 0 9 2
S t o c k h o l d e r B e f o re Distribution 9,899,565 13,249,199 14,732,848 15,517,898 16,419,731 1 6 , 5 9 5 , 1 6 0
E q u i t y After Distribution 9,571,851 12,854,645 14,276,634 15,408,466 Not distributed Not distributed
Ye a r Name of Accounting Firm Name of Certifying Accountant O p i n i o n
2 0 0 2 Price Wa t e rhouse Coopers Chen Yong-Ching, Wen Fang-Yu U n q u a l i f i e d
2001 Price Wa t e rhouse Coopers Chen Yong-Ching, Wen Fang-Yu U n q u a l i f i e d
2000 Price Wa t e rhouse Coopers Chen Yong-Ching, Wen Fang-Yu U n q u a l i f i e d
1999 Price Wa t e rhouse Coopers Chen Yong-Ching, Wen Fang-Yu U n q u a l i f i e d
1998 Price Wa t e rhouse Coopers Chen Yong-Ching, Wen Fang-Yu U n q u a l i f i e d
61 Most Recent Five-Year Concise Financial Information
62

MiTAC
International
Corporation
Annual Report
2002
Financial Analysis for Most Recent Five Ye a r s
Ye a r Financial Analysis for Most Recent Five Ye a r s M a rch 31,
P a rticulars of Analysis 1998 1999 2000 2001 2002 2003
Financial Debt ratio 43 . 56 42 . 43 51 . 90 36 . 39 39 . 57 37 . 82
S t ru c t u re (%) Ratio of long-term funds to pro p e rty 449 . 73 410 . 49 444 . 57 622 . 76 678 . 58 697 . 07
and equipment
C u rrent Ratio 177 . 52 166 . 38 136 . 35 221 . 45 152 . 88 163 . 05
Solvency (%) Quick Ratio 140 . 01 114 . 12 91 . 50 175 . 85 113 . 36 119 . 23
Ti m e s - I n t e re s t - e a rned Ratio 9 . 04 12 . 01 6 . 16 3 . 72 3 . 83 3 . 17
Tu rnover rate of receivables (times) 6 . 13 5 . 18 5 . 88 3 . 54 3 . 73 4 . 83
Days sales in re c e i v a b l e 60 . 00 70 . 00 62 . 00 103 . 00 98 . 00 76 . 00
O p e r a t i o n a l I n v e n t o ry Tu rnover (times) 12 . 71 10 . 25 11 . 09 7 . 65 9 . 38 10 . 76
A b i l i t y Tu rnover rate of payables (times) 10 . 16 7 . 25 10 . 51 8 . 54 10 . 54 14 . 01
Days to sell inventories 29 . 00 36 . 00 33 . 00 48 . 00 39 . 00 34 . 00
Tu rnover rate of pro p e rty and equipment 19 . 20 9 . 72 12 . 51 8 . 05 8 . 47 12 . 76
( t i m e s )
Tu rnover rate of overall assets (times) 2 . 32 1 . 49 1 . 76 1 . 03 0 . 98 1 . 31
R e t u rn on assets 12 . 80 9 . 40 7 . 87 4 . 73 4 . 26 0 . 88
R e t u rn on shareholders' equity 20 . 92 14 . 99 12 . 89 6 . 68 5 . 42 1 . 06
P ro f i t a b i l i t y % of paid-in capital Operating pro f i t 27 . 19 13 . 77 11 . 78 2 . 23 2 . 67 1 . 04
Net profit before tax 34 . 31 26 . 66 23 . 81 10 . 57 8 . 43 1 . 68
Net profit rate (%) 4 . 91 5 . 73 3 . 81 3 . 55 3 . 44 1 . 99
E P S B e f o re distribution 3 . 14 2 . 27 2 . 02 1 . 02 0 . 84 0 . 17
After distribution 1 . 93 1 . 67 1 . 73 0 . 97 0 . 84 0 . 17
Cash Flow Cash flow ratio (%) 73 . 87 2 . 11 - 130 . 32 - -
Cash flow adequacy ratio (%) 25 . 43 28 . 77 1 . 45 37 . 63 63 . 70 -
Cash reinvestment ratio (%) 36 . 00 - - 24 . 00 - -
L e v e r a g e Operating Leverage 9 . 43 13 . 52 26 . 53 95 . 03 73 . 91 65 . 32
Financial Leverage 1 . 19 1 . 21 1 . 64 - - 3 . 99
Financial Stru c t u re
(1) Debt ratio = Total liabilities / Total assets
(2) Ratio of long-term funds to pro p e rty and equipment = (Net share h o l d e r sequity +
L o n g - t e rm debts) / Net fixed assets
S o l v e n c y
(1) Current ratio = Current assets / Current liabilities
(2) Quick ratio = (Current assets I n v e n t o ry P repaid expenses) / Current liabilities
(3) Ti m e s - I n t e re s t - e a rned Ratio = Net income before income tax and interest expenses /
I n t e rest expenses
Operational Ability
(1) Tu rnover rate of receivables (including accounts receivable and notes re c e i v a b l e
f rom operations) = Net sales / Average receivables balance (including accounts
receivable and notes receivable from operations) in various term s
(2) Days sales in receivable = 365 / Tu rnover rate of re c e i v a b l e s
(3) I n v e n t o ry turnover = Cost of goods sold / Average value of inventory
(4) Tu rnver rate of payables (including accounts payable and notes payable fro m
operations) = Cost of goods sold / Average accounts payable balance (including
accounts payable and notes payable from operations) in various term s
(5) Days to sell inventories = 365 / Inventory turn o v e r
(6) Tu rnover rate of pro p e rty and equipment = Net sales) / Net fixed assets
(7) Tu rnover rate of overall assets = Net sales / Total assets
Notes:
1. To the last quarter prior to publication of this re p o rt .
2. Based on business perf o rmance for the first quarter of 2003, with figures annualized for convenience in comparisons.
P ro f i t a b i l i t y
(1) R e t u rn on assets = [Profit after tax + (Interest expenses) x (1 (tax rate)] / Av e r a g e
of total assets
(2) R e t u rn on shareholders' equity = Profit after tax / Average net equity
(3) Net profit rate = Profit after tax / Net sales
(4) EPS = (Profit after tax Dividend from pre f e rred stock) / Weighted average of
outstanding share s
63 Financial Analysis for Most Recent Five Ye a r s
64

MiTAC
International
Corporation
Annual Report
2002
Cash Flow
(1) Cash flow ratio = Cash flow from operations /
C u rrent liabilities
(2) Cash flow adequacy ratio = Most recent fiveyear
cash flow from operations / Most re c e n t
five-year sum of capital expenditure s ,
i n c reases in inventory, cash dividends
(3) Cash reinvestment ratio = (Cash flow fro m
operating activities Cash dividend) / (Gro s s
fixed assets + Long-term investment + Other
assets + Working capital)
L e v e r a g e
(1) Operating leverage = (Net revenue
Variable cost of goods sold and operating
expenses) / Operating income
( 2 )Financial leverage = Operating income /
(Operating income I n t e rest expenses)
A S S E T S
C u rrent Assets
M I TAC INTERNATIONAL CORP.
BALANCE SHEET
DECEMBER 31, 2002 AND 2001
2 0 0 2 2 0 0 1 2 0 0 2 2 0 0 1
LIABILITIES AND STOCKHOLDERS' EQUITY
C u rrent Liabilities
Cash and cash equivalents $ 3 2 9 , 7 4 0 $ 8 1 3 , 8 6 4 S h o rt - t e rm loans $ 1 , 6 0 5 , 3 9 8 $ 5 0 0 , 0 0 0
Marketable securities 1 7 9 , 3 5 0 2 2 3 , 2 3 0 Notes payable - 1 8 , 0 9 0
Notes receivable n e t 7 0 2 9 0 , 2 3 9 Accounts payable 2 , 5 4 4 , 0 4 1 1 , 8 2 7 , 1 0 7
Accounts receivable n e t 7 , 5 4 3 , 7 8 1 5 , 8 3 5 , 0 4 1 Income tax payable 3 , 5 5 8 4 5 , 7 7 3
Other re c e i v a b l e s 5 1 1 , 7 7 7 4 2 0 , 3 0 8 A c c rued expenses 8 5 6 , 8 5 3 7 7 9 , 2 4 0
Inventories n e t 2 , 8 0 2 , 6 1 1 1 , 7 2 7 , 5 5 9 Other payables 2 4 7 , 3 6 1 1 3 6 , 8 2 4
P repayments 2 6 4 , 7 6 1 2 3 4 , 8 6 3 Receipts in advance 7 1 8 , 5 2 8 9 8 1 , 3 5 5
Other current assets 2 3 3 , 6 7 6 1 8 5 , 5 4 7 C u rrent portion of long-term debts 1 , 7 8 1 , 7 3 9 -
L o n g - t e rm investments
L o n g - t e rm investments 1 1 , 1 9 3 , 3 8 9 1 0 , 8 4 5 , 6 4 5 L o n g - t e rm Liabilities
1 1 , 8 6 6 , 3 9 8 9 , 5 3 0 , 6 5 1 Other current liabilities 4 , 2 7 4 1 5 , 3 2 1
7 , 7 6 1 , 7 5 2 4 , 3 0 3 , 7 1 0
Less: Unrealized long-term investment loss - ( 3 9 1 , 1 4 9 ) Bonds payable 2 , 5 0 0 , 0 0 0 4 , 1 4 9 , 7 5 8
P ro p e rt y, plant and equipment
1 1 , 1 9 3 , 3 8 9 1 0 , 4 5 4 , 4 9 6 2 , 5 0 0 , 0 0 0 4 , 1 4 9 , 7 5 8
Other Liabilities
C o s t Deposit in 8 0 8 0
L a n d 1 , 1 1 0 , 0 5 5 1 , 1 0 1 , 0 4 6 D e f e rred income tax liability 4 9 1 , 8 4 4 4 2 5 , 4 9 0
B u i l d i n g s 1 , 5 0 7 , 1 2 0 1 , 5 8 1 , 4 1 9 4 9 1 , 9 2 4 4 2 5 , 5 7 0
M a c h i n e ry 5 8 4 , 5 1 6 8 5 7 , 5 8 6 Total Liabilities 1 0 , 7 5 3 , 6 7 6 8 , 8 7 9 , 0 3 8
Computer and communication equipment 4 6 9 , 5 5 2 4 7 2 , 8 1 6
Tr a n s p o rtation equipment 5 4 , 0 6 0 5 2 , 9 3 5
F u rn i t u re and fixture s 6 0 , 8 0 9 5 9 , 9 5 5 Stockholders' Equity
Leasehold impro v e m e n t s - 1 8 , 8 7 4 C a p i t a l
Other equipment 2 5 , 3 9 5 2 5 , 4 7 7 Common stock 1 0 , 4 1 5 , 6 8 6 9 , 9 4 5 , 1 3 3
3 , 8 1 1 , 5 0 7 4 , 1 7 0 , 1 0 8 Capital re s e rv e
Less: Accumulated depre c i a t i o n ( 1 , 0 6 8 , 4 7 2 ) ( 1 , 0 2 7 , 1 8 3 ) P remium on paid-in capital on issued common stock 2 , 8 2 9 , 0 0 3 2 , 8 2 9 , 0 0 3
C o n s t ruction in pro g ress and prepayments for equipment 4 5 , 1 0 0 1 5 , 2 4 0 Tre a s u ry stock 1 , 0 1 9 -
Other Assets
2 , 7 8 8 , 1 3 5 3 , 1 5 8 , 1 6 5 Gain on disposal of pro p e rt y, plant and equipment - 2 0 4 , 3 2 2
L o n g - t e rm investment 2 8 0 , 7 8 4 3 0 5 , 9 6 8
Retained earn i n g s
Refundable deposits 5 , 5 6 0 9 , 9 1 0 Legal re s e rv e 7 0 2 , 2 3 2 6 0 1 , 0 8 7
D e f e rred charges 1 8 6 , 8 2 5 9 2 , 6 8 3 U n a p p ropriated earn i n g s 1 , 6 7 2 , 5 0 2 1 , 2 8 4 , 4 0 6
Other assets 1 , 1 3 3 , 1 0 0 1 , 1 5 1 , 0 3 1 Other adjusment
1 , 3 2 5 , 4 8 5 1 , 2 5 3 , 6 2 4 U n realized long-term investment loss ( 4 , 0 8 1 ) ( 4 3 1 , 1 7 8 )
Cumulative translation adjustments 7 7 1 , 0 9 2 7 8 1 , 3 6 9
Tre a s u ry stock ( 2 4 8 , 5 0 6 ) ( 2 , 2 1 2 )
Commitments and Contingent Liabilities
(EXPRESSED IN THOUSANDS OF NEW TA I WAN DOLLARS)
1 6 , 4 1 9 , 7 3 1 1 5 , 5 1 7 , 8 9 8
T O TAL ASSETS $ 2 7 , 1 7 3 , 4 0 7 $ 2 4 , 3 9 6 , 9 3 6 T O TAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2 7 , 1 7 3 , 4 0 7 $ 2 4 , 3 9 6 , 9 3 6
65 Most Recent Five-Year Concise Financial Information
66

MiTAC
International
Corporation
Annual Report
2002
M I TAC INTERNATIONAL CORP.
S TATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
(EXPRESSED IN THOUSANDS OF NEW TA I WAN DOLLARS)
Retained Earn i n g s
U n re a l i z e d C u m u l a t i v e
C o m m o n C a p i t a l L e g a l U n a p p ro p r i a t e d L o n g - t e rm Tr a n s l a t i o n Tre a s u ry
2001 S t o c k R e s e rv e R e s e rv e E a rn i n g s nvestment Loss A d j u s t m e n t s S t o c k To t a l
Balance at January 1, 2001 $ 8 , 924 , 277 $ 3 , 381 , 120 $ 422 , 715 $ 1 , 928 , 399 ( $ 352 , 072 ) $ 428 , 409 $ - $ 14 , 732 , 848
Distribution of 2000 earn i n g s :
A p p ropriation for legal re s e rv e - - 178 , 372 ( 178 , 372 ) - - - -
Employee bonuses 128 , 428 - - ( 128 , 428 ) - - - -
Issuance of stock dividends 892 , 428 - - ( 892 , 428 ) - - - -
Cash dividends declare d - - - ( 446 , 214 ) - - - ( 446 , 214 )
D i rectors' and supervisors' re m u n e r a t i o n - - - ( 10 , 000 ) - - - ( 10 , 000 )
Net income in 2001 - - - 1 , 010 , 821 - - - 1 , 010 , 821
Capital re s e rve adjustment due to disposal of long-term investments - ( 19 , 065 ) - 628 - - - ( 18 , 437 )
Capital re s e rve due to investeeschange in ownership of long-term investments - ( 11 , 483 ) - - - - - ( 11 , 483 )
Capital re s e rve due to change in ownership of long-term investments - ( 11 , 279 ) - - - - - ( 11 , 279 )
U n realized loss on market value decline of long-term investments - - - - ( 55 , 658 ) - - ( 55 , 658 )
U n realized loss on market value decline of long-term investments of investees - - - - ( 23 , 448 ) - - ( 23 , 448 )
Translation adjustment for 2001 - - - - - 352 , 960 - 352 , 960
Tre a s u ry stock purchased - net - - - - - - ( 2,212 ) ( 2 , 212 )
Balance at December 31, 2001 $ 9 , 945 , 133 $ 3 , 339 , 293 $ 601 , 087 $ 1 , 284 , 406 ( $ 431 , 178 ) $ 781 , 369 ( $ 2 , 212 ) $ 15 , 517 , 898
2002
Balance at January 1, 2002 $ 9 , 945 , 133 $ 3 , 339 , 293 $ 601 , 087 $ 1 , 284 , 406 ( $ 431 , 178 ) $ 781 , 369 ( $ 2 , 212 ) $ 15 , 517 , 898
Distribution of 2001 earn i n g s :
A p p ropriation for legal re s e rv e - - 101 , 145 ( 101 , 145 ) - - - -
Employee bonuses 72 , 824 - - ( 72 , 824 ) - - - -
Issuance of stock dividends 397 , 729 - - ( 397 , 729 ) - - - -
Cash dividends declare d - - - ( 99 , 432 ) - - - ( 99 , 432 )
D i rectors' and supervisors' re m u n e r a t i o n - - - ( 10 , 000 ) - - - ( 10 , 000 )
Net income in 2002 - - - 864 , 904 - - - 864 , 904
Transfer capital re s e rve resulted from gain on disposal of fixed assets to
u n a p p ropriated earn i n g s - ( 204 , 322 ) - 204 , 322 - - - -
Capital re s e rve due to change in ownership of long-term investments - ( 13 , 712 ) - - - - - ( 13 , 712 )
Capital re s e rve adjustment due to disposal of long-term investments - ( 11 , 472 ) - - - - - ( 11 , 472 )
Transfer of gain on disposal of the Company's stock traded by subsidiaries to
capital re s e rv e - 1 , 019 - - - - - 1 , 019
Reversal of unrealized loss on market value decline of long-term investments - - - - 391 , 149 - - 391 , 149
Reversal of investees' unrealized loss on market value decline of long-term investments - - - - 35 , 948 - - 35 , 948
Translation adjustment for 2002 - - - - - ( 10 , 277 )
- ( 10 , 277 )
Tre a s u ry stock purc h a s e d - n e t - - - - - - ( 246 , 294 ) ( 246 , 294 )
Balance at December 31, 2002 $ 10 , 415 , 686 $ 3 , 110 , 806 $ 702 , 232 $ 1 , 672 , 502 ( $ 4 , 081 ) $ 771 , 092 ( $ 248 , 506 ) $ 16 , 419 , 731
67 Most Recent Five-Year Concise Financial Information
68

MiTAC
International
Corporation
Annual Report
2002
M I TAC INTERNATIONAL CORP.
S TATEMENT OF CASH FLO W S
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
(EXPRESSED IN THOUSANDS OF NEW TA I WAN DOLLARS)
2002 2001
Cash flows from operating activities:
Net income $ 864 , 904 $ 1 , 010 , 821
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
D e p re c i a t i o n 302 , 515 382 , 391
A m o rt i z a t i o n 139 , 494 58 , 123
L o n g - t e rm investment income accounted for under equity method ( 583 , 493 ) ( 798 , 156 )
Loss on impairment of long-term investments 12 , 559 570
Transfer of gain on disposal of the Company's stock traded by
subsidiaries to capital re s e rv e 1 , 019 -
Gain on disposal of investments ( 400 , 574 ) ( 40 , 797 )
Cash dividends from long-term investments accounted for under
the equity method 114 , 818 58 , 607
Loss (Gain) on disposal of pro p e rt y, plant and equipment, net ( 7 , 281 ) ( 6 , 357 )
Changes in assets and liabilities
( I n c rease) decrease in:
Notes re c e i v a b l e 89 , 537 ( 10 , 859 )
Accounts re c e i v a b l e ( 1 , 708 , 740 ) 4 , 191 , 382
Other re c e i v a b l e s ( 81 , 422 ) 4 , 960
Receivable on forw a rd exchange contracts, net ( 10 , 047 ) ( 55 , 185 )
I n v e n t o r i e s ( 1 , 075 , 052 ) 3 , 005 , 360
P re p a y m e n t s ( 29 , 898 ) 774 , 170
D e f e rred income tax assets ( 48 , 129 ) ( 1 , 992 )
I n c rease (decrease) in:
Notes payable ( 18 , 090 ) ( 4 , 136 )
Accounts payable 716 , 934 ( 2 , 450 , 210 )
Income tax payable ( 42 , 215 ) 45 , 746
A c c rued expenses 77 , 613 ( 907 , 825 )
Payable on forw a rd exchange contracts, net 33 , 044 -
Other payables 82 , 719 33 , 957
Receivable in advance ( 262 , 827 ) 141 , 000
Other current liabilities ( 11 , 047 ) ( 40 , 681 )
Compensation interest payable 131 , 981 167 , 875
D e f e rred income tax liabilities 66 , 354 ( 5 , 262 )
Net cash (used in) provided by operating activities ( 1 , 645 , 324 ) 5 , 553 , 502
2002 2001
Cash flows from operating activities:
D e c rease (Increase) in marketable securities, net $ 57 , 296 ( $ 214 , 028 )
P roceeds from disposal of long-term investments 681 , 150 290 , 993
I n c rease in long-term investments ( 431 , 427 ) ( 1 , 281 , 707 )
Acquisition of pro p e rt y, plant and equipment ( 136 , 207 ) ( 198 , 459 )
P roceeds from disposal of pro p e rt y, plant and equipment 190 , 669 87 , 842
I n c rease in deferred charg e s ( 233 , 636 ) ( 40 , 465 )
D e c rease in refundable deposits, net 4 , 350 26 , 388
I n c rease in other assets, net - ( 11 , 706 )
D e c reased in restricted assets 33 , 000 7 , 350
Net cash (used in) provided by investing activities 165 , 195 ( 1 , 333 , 792 )
Cash flows from financing activities:
D e c rease in short - t e rm debts, net 1 , 105 , 398 ( 3 , 526 , 426 )
I n c rease (decrease) in commercial paper payable, net - ( 198 , 088 )
Repayments of long-term loans - ( 200 , 000 )
Cash dividends paid ( 99 , 393 ) ( 446 , 203 )
D i rectors' and supervisors' re m u n e r a t i o n ( 10 , 000 ) ( 10 , 000 )
Redemption of convertible bonds payable - ( 79 , 074 )
Acquisition of tre a s u ry stock - ( 2 , 212 )
Net cash (used in) provided by financing activities 996 , 005 ( 4 , 462 , 003 )
Net decrease in cash and cash equivalents ( 484 , 124 ) ( 242 , 293 )
Cash and cash equivalents at beginning of year 813 , 864 1 , 056 , 157
Cash and cash equivalents at end of year $ 329 , 740 $ 813 , 864
Supplemental disclosures of cash flow inform a t i o n :
Cash paid for intere s t $ 175 , 046 $ 269 , 349
Cash paid for income tax $ 36 , 671 $ 1 , 507
( C O N T I N U E D )
69 Most Recent Five-Year Concise Financial Information
70

M I TAC INTERNATIONAL CORP.
S TATEMENT OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
(EXPRESSED IN THOUSANDS OF NEW TA I WAN DOLLARS, EXCEPT EARNINGS PER SHARE)
2002 2001
Operating Revenues-net $ 25 , 177 , 562 $ 28 , 447 , 707
Operating Cost ( 23 , 121 , 839 ) ( 26 , 248 , 660 )
G ross Pro f i t 2 , 055 , 723 2 , 199 , 047
Operating Expenses
Selling expenses ( 435 , 492 ) ( 612 , 664 )
Administrative expenses ( 464 , 689 ) ( 501 , 902 )
R e s e a rch and development expenses ( 877 , 074 ) ( 862 , 408 )
( 1 , 777 , 255 ) ( 1 , 976 , 974 )
Operating Income 278 , 468 222 , 073
Non-operating Income
I n t e rest income 6 , 687 21 , 587
Investment income 602 , 717 801 , 797
Gain on disposal of pro p e rt y, plant and equipment 7 , 281 6 , 691
Gain on disposal of investment 400 , 574 40 , 797
Exchange gain, net 93 , 945 299 , 713
Other income 42 , 925 67 , 646
1 , 154 , 129 1 , 238 , 231
Non-operating Expenses
I n t e rest expenses ( 309 , 561 ) ( 385 , 672 )
Loss on disposal of pro p e rt y, plant and equipment - ( 334 )
Loss on physical count of inventories ( 372 ) ( 696 )
Other losses ( 245 , 080 ) ( 22 , 781 )
( 555 , 013 ) ( 409 , 483 )
Income Before Income Ta x 877 , 584 1 , 050 , 821
Income Tax Expense ( 12 , 680 ) ( 40 , 000 )
Net Income $ 864 , 904 $ 1 , 010 , 821
B e f o re A f t e r B e f o re A f t e r
income tax income tax income tax income tax
Basic Earnings Per Share (in dollars)
Net income $ 0 . 86 $ 0 . 84 $ 1 . 01 $ 0 . 98
C O N S O L I D A T E D F I N A N C I A L
S T A T E M E N T S A N D R E P O R T
O F I N D E P E N D I N T
A C C O U N T A N T S
DECEMBER 31, 2002 AND 2001
4
Diluted Earnings Per Share (in dollars)
Net income $ 0 . 7 8 $ 0 . 7 8 $ 0 . 9 6 $ 0 . 9 3
P ro forma information of net income and earnings per
s h a re disclosed as if the Company's stock held by
subsidiaries was not re c o rded as tre a s u ry stock
Net income $ 960 , 550 $ 947 , 870 $1 , 050 , 821 $1 , 010 , 821
Basic earnings per share (in dollars) $ 0 . 92 $ 0 . 91 $ 1 . 01 $ 0 . 97
Diluted earnings per share (in dollars) $ 0 . 84 $ 0 . 84 $ 0 . 96 $ 0 . 93
These English financial statements were translated from the financial statements originally pre p a red in Chinese.
R e p o rt of Independent Accountants
71
Most Recent Five-Year Concise Financial Information
72

MiTAC
International
Corporation
Annual Report
2002
Report of Independent Accountants
To MITAC International Corp.
As described in Note 3 (3) to the consolidated financial statements, MITAC Precision Technology Co., Ltd.
and its subsidiaries that were excluded from the consolidated financial statements in 2001, met the criteria
We have audited the consolidated balance sheet of MITAC International Corp. and its subsidiaries as of
December 31, 2002 and 2001, and the related consolidated statements of income, of changes in
stockholders' equity and of cash flows for the years then ended. These consolidated financial statements are
the responsibility of the Companys management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.
to be included in the consolidated financial statements in 2002 as their operating revenues over 10% of the
C o m p a n ys non-consolidated operating revenue. Additionally, in 2002, the ownership in MITA C
Technology Corp., a consolidated entity in 2001, had declined to below 50%, and MITAC Te c h n o l o g y
Corp. was accordingly excluded from consolidated financial statements in 2002. For the changes in
consolidated entities, financial statements for 2001 have been restated to be comparable to the 2002
consolidated financial statements.
We conducted our audits in accordance with theRules Governing the Examination of Financial Statements
by Certified Public Accountantsand generally accepted auditing standards in the Republic of China.
Those standards re q u i re that we plan and perf o rm the audit to obtain reasonable assurance about whether
the consolidated financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
M a rch 14, 2003
management, as well as evaluating the overall consolidated financial statement presentation. We believe
that our audits provide a reasonable basis for opinion.
In our opinion, the accompanying consolidated financial statements audited by us present fairly, in all
material respects, the consolidated financial position of MITAC International Corp. and its subsidiaries as of
December 31, 2002 and 2001, and the results of their operations and their cash flows for the years then
ended in conformity with the Rules Governing the Preparation of Financial Statements of Securities
I s s u e r sand generally accepted accounting principles in the Republic of China.
As described in Note 3 (1) to the consolidated financial statements, effective January 1, 2002, the
Company adopted R.O.C. Financial Accounting Standards (FA S) No.30Accounting Standard for
Tre a s u ry Stock. R.O.C. FAS No.30 re q u i res that the Companys stock held by subsidiaries should be
re c o rded as tre a s u ry stock, and no gain or loss can be recognized into profit and loss accounts. As a re s u l t
of this change of accounting principle, total assets decreased $182,371 as of December 31, 2002 and net
income decreased $82,966 for the year ended December 31, 2002.
The accompanying consolidated financial statements are not intended to present the financial position and
results of operations and cash flows in accordance with accounting principles generally accepted in
countries and jurisdictions other than the Republic of China. The standards, pro c e d u res and practices in the
Republic of China governing the audit of such consolidated financial statements may differ from those
generally accepted in countries and jurisdictions other than the Republic of China. Accord i n g l y, the
accompanying consolidated financial statement and re p o rt of the independent accountants are not intended
for use by those who are not informed about the accounting principles or auditing standards generally
accepted in the Republic of China, and their applications in practice.
73 Consolidated Financial Statements And Report of Independint Accountants
74

M I TAC INTERNATIONAL CORP. AND SUBSIDIARIES
C O N S O L I DATED BALANCE SHEET
DECEMBER 31, 2002 AND 2001
(EXPRESSED IN THOUSANDS OF NEW TA I WAN DOLLARS)
MiTAC
International
Corporation
Annual Report
2002
2002 2001 2002 2001
A S S E T S
LIABILITIES AND STOCKHOLDERS' EQUITY
C u rrent Assets
C u rrent Liabilities
Cash and cash equivalents (Note 4(1)) $ 1 , 480 , 822 $ 2 , 495 , 271 S h o rt - t e rm loans (Notes 4(8) and 6) $ 4 , 522 , 059 $ 1 , 728 , 687
Marketable securities (Note 4(2)) 386 , 612 517 , 767 C o m m e rcial paper payable (Note 4(9)) 274 , 286 179 , 704
Notes receivable net (Note 5) 11 , 368 94 , 113 Notes payable - 18 , 090
Accounts receivable - net (Notes 4(3) and 5) 13 , 979 , 616 9 , 576 , 770 Accounts payable (Note 5) 18 , 832 , 613 13 , 887 , 529
Other re c e i v a b l e s 1 , 761 , 886 1 , 219 , 446 Income tax payable (Note 4(17)) 58 , 744 99 , 817
Inventories - net (Note 4(4)) 17 , 522 , 030 13 , 676 , 082 A c c rued expenses 1 , 893 , 173 1 , 752 , 537
P re p a y m e n t s 606 , 923 419 , 305 Other payables 2 , 029 , 013 1 , 036 , 244
Other current assets (Notes 4(17) and 6) 1 , 288 , 874 874 , 438 Receipts in advance 818 , 537 981 , 797
37 , 038 , 131 28 , 873 , 192 C u rrent portion of long-term debts (Notes 4(10) and 6) 1 , 802 , 689 9 , 856
Other current liabilities 307 , 600 54 , 135
L o n g - t e rm investments (Note 4(5)) 4 , 813 , 500 4 , 322 , 113 30 , 538 , 714 19 , 748 , 396
L o n g - t e rm Liabilities
Bonds payable (Notes 4 (11)and 6) 2 , 500 , 000 4 , 149 , 758
P ro p e rt y, plant and equipment - net L o n g - t e rm debts (Notes 4(10) and 6) 1 , 359 , 401 1 , 732 , 967
(Notes 4(6) and 6) 10 , 945 , 311 9 , 294 , 780 Other long-term payable 53 , 348 -
3 , 912 , 749 5 , 882 , 725
Intangible Assets
Other Liabilities
Other intangible assets 990 , 826 831 , 142 Deposit in 80 80
D e f e rred income tax liability (Note 4 (17)) 495 , 607 432 , 563
Other Assets O t h e r s 99 , 863 106 , 334
Refundable deposits 130 , 132 82 , 054 595 , 550 538 , 977
D e f e rred charg e s 279 , 065 105 , 171
Other assets (Notes 4(7) and 6) 1 , 376 , 816 1 , 212 , 821 Minority Intere s t 4 , 107 , 037 3 , 156 , 550
1 , 786 , 013 1 , 400 , 046
Total Liabilities 39 , 154 , 050 29 , 326 , 648
Stockholders' Equity
Common stock (Note 4 (13)) 10 , 415 , 686 9 , 945 , 133
Capital re s e rve (Note 4(14)) 3 , 110 , 806 3 , 339 , 293
Retained earnings (Note 4(15))
Legal re s e rv e 702 , 232 601 , 087
U n a p p ropriated earn i n g s 1 , 672 , 502 1 , 284 , 406
U n realized long-term investment loss ( 4 , 081 ) ( 431 , 178 )
Cumulative translation adjustments 771 , 092 781 , 369
Tre a s u ry stock (Note 4 (16)) ( 248 , 506 ) ( 125 , 485 )
Total Stockholders' Equity 16 , 419 , 731 15 , 394 , 625
Commitments and Contingent Liabilities (Note 7)
T O TAL ASSETS $ 55 , 573 , 781 $ 44 , 721 , 273 T O TAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 55 , 573 , 781 $ 44 , 721 , 273
The accompanying notes are an integral part of the consolidated financial statements.
See re p o rt of independent accountants dated March 14, 2003.
75 Consolidated Financial Statements And Report of Independint Accountants
76

MiTAC
International
Corporation
Annual Report
2002
M I TAC INTERNATIONAL CORP. AND SUBSIDIARIES
C O N S O L I DATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
(EXPRESSED IN THOUSANDS OF NEW TA I WAN DOLLARS)
Retained Earn i n g s
U n re a l i z e d C u m u l a t i v e
C o m m o n C a p i t a l L e g a l U n a p p ro p r i a t e d L o n g - t e rm Tr a n s l a t i o n Tre a s u ry
2001 S t o c k R e s e rv e R e s e rv e E a rn i n g s nvestment Loss A d j u s t m e n t s S t o c k To t a l
Balance at January 1, 2001 $ 8 , 924 , 277 $ 3 , 381 , 120 $ 422 , 715 $ 1 , 928 , 399 ( $ 352 , 072 ) $ 428 , 409 ( $ 153 , 440 ) $ 14 , 579 , 408
Distribution of 2000 earn i n g s :
A p p ropriation for legal re s e rv e - - 178 , 372 ( 178 , 372 ) - - - -
Employee bonuses 128 , 428 - - ( 128 , 428 ) - - - -
Issuance of stock dividends 892 , 428 - - ( 892 , 428 ) - - - -
Cash dividends declare d - - - ( 446 , 214 ) - - - ( 446 , 214 )
D i rectors' and supervisors' re m u n e r a t i o n - - - ( 10 , 000 ) - - - ( 10 , 000 )
Net income in 2001 - - - 1 , 010 , 821 - - - 1 , 010 , 821
Capital re s e rve adjustment due to disposal of long-term investments - ( 19 , 065 ) - 628 - - - ( 18 , 437 )
Capital re s e rve due to change in ownership of long-term investments - ( 22 , 762 ) - - - - - ( 22 , 762 )
U n realized loss on market value decline of long-term investments - - - - ( 79 , 106 ) - - ( 79 , 106 )
Translation adjustment for 2001 - - - - - 352 , 960 - 352 , 960
Tre a s u ry stock sold-net - - - - - - 27 , 955 27 , 955
Balance at December 31, 2001 $ 9 , 945 , 133 $ 3 , 339 , 293 $ 601 , 087 $ 1 , 284 , 406 ( $ 431 , 178 ) $ 781 , 369 ( $ 125 , 485 ) $ 15 , 394 , 625
2002
Distribution of 2001 earn i n g s :
A p p ropriation for legal re s e rv e - - 101 , 145 ( 101 , 145 ) - - - -
Employee bonuses 72 , 824 - - ( 72 , 824 ) - - - -
Issuance of stock dividends 397 , 729 - - ( 397 , 729 ) - - - -
Cash dividends declare d - - - ( 99 , 432 ) - - - ( 99 , 432 )
D i rectors' and supervisors' re m u n e r a t i o n - - - ( 10 , 000 ) - - - ( 10 , 000 )
Net income in 2002 - - - 864 , 904 - - - 864 , 904
Transfer capital re s e rve resulted from gain on disposal of fixed assets to
u n a p p ropriated earn i n g s - ( 204 , 322 ) - 204 , 322 - - - -
Capital re s e rve due to change in ownership of long-term investments - ( 13 , 712 ) - - - - - ( 13 , 712 )
Capital re s e rve adjustment due to disposal of long-term investments - ( 11 , 472 ) - - - - - ( 11 , 472 )
Translation adjustment for 2002 - - - - - ( 10 , 277 )
- ( 10 , 277 )
Transfer of gain on disposal of the Company's
stock traded by subsidiaries to capital re s e rv e - 1 , 019 - - - - - 1 , 019
Reversal of unrealized loss on market value decline of long-term investments - - - - 427 , 097 - - 427 , 097
Tre a s u ry stock purc h a s e d - n e t - - - - - - ( 123 , 021 ) ( 123 , 021 )
Balance at December 31, 2002 $ 10 , 415 , 686 $ 3 , 110 , 806 $ 702 , 232 $ 1 , 672 , 502 ( $ 4 , 081 ) $ 771 , 092 ( $ 248 , 506 ) $ 16 , 419 , 731
The accompanying notes are an integral part of the consolidated financial statements.
See re p o rt of independent accountants dated March 14, 2003.
77 Consolidated Financial Statements And Report of Independint Accountants
78

MiTAC
International
Corporation
Annual Report
2002
M I TAC INTERNATIONAL CORP. AND SUBSIDIARIES
C O N S O L I DATED STATEMENT OF CASH FLO W S
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
(EXPRESSED IN THOUSANDS OF NEW TA I WAN DOLLARS)
2002 2001
Cash flows from operating activities:
Net income $ 864 , 904 $ 1 , 010 , 821
Adjustments to reconcile net income to net cash
(Used in) provided by operating activities:
D e p re c i a t i o n 1 , 054 , 907 1 , 497 , 690
A m o rt i z a t i o n 236 , 756 125 , 926
Bad debt expenses - 504 , 755
P rovision (Reversal of provision) for market value decline and
obsolete inventories 160 , 372 ( 9 , 029 )
Loss on decline of market value of marketable securities 3 , 305 41 , 670
L o n g - t e rm investment income accounted for under equity method ( 368 , 150 ) ( 244 , 919 )
Loss on impairment of long-term investments 122 , 458 118 , 921
Transfer of gain on disposal of the Company's stock traded by
subsidiaries to capital re s e rv e 1 , 019 -
Gain on disposal of investments ( 466 , 060 ) ( 56 , 572 )
Cash dividends from long-term investments accounted for
under the equity method 84,371 58 , 607
Loss (Gain) on disposal of pro p e rt y, plant and equipment, net 46 , 130 ( 6 , 685 )
Minority interest in net income of consolidated subsidiaries 475 , 240 420 , 770
E ffects of change in exchange rates 22 , 414 122 , 464
Changes in assets and liabilities
( I n c rease) decrease in:
Notes re c e i v a b l e 82 , 745 ( 14 , 729 )
Accounts re c e i v a b l e ( 4 , 402 , 846 ) 245 , 807
Other re c e i v a b l e s ( 631 , 917 ) 895 , 172
Receivable on forw a rd exchange contracts, net 89 , 477 55 , 185
I n v e n t o r i e s ( 4 , 006 , 320 ) 2 , 787 , 195
P re p a y m e n t s ( 187 , 618 ) 628 , 052
Other current assets ( 233 , 342 ) ( 88 , 366 )
D e f e rred income tax assets ( 59 , 888 ) 15 , 241
I n c rease (decrease) in:
Notes payable ( 18 , 090 ) ( 4 , 136 )
Accounts payable 4 , 945 , 084 ( 301 , 844 )
Income tax payable ( 41 , 073 ) ( 153 , 499 )
A c c rued expenses 140 , 636 ( 847 , 412 )
Other payables 876 , 341 ( 839 , 328 )
Payable on forw a rd exchange contracts, net 121 , 654 -
Receivable in advance ( 163 , 260 ) 141 , 442
Other current liabilities 253 , 465 ( 8 , 487 )
Compensation interest payable 131 , 981 167 , 875
D e f e rred income tax liabilities 61 , 759 ( 19 , 339 )
Net cash (used in) provided by operating activities ( 803 , 546 ) 6 , 243 , 248
2002 2001
Cash flows from investing activities:
D e c rease (Increase) in marketable securities, net $ 207 , 929 ( $ 242 , 668 )
I n c rease in long-term investments ( 354 , 743 ) ( 426 , 341 )
P roceeds from disposal of long-term investments 681 , 150 329 , 626
Acquisition of pro p e rt y, plant and equipment ( 3 , 627 , 983 ) ( 2 , 655 , 915 )
P roceeds from disposal of pro p e rt y, plant and equipment 826 , 880 173 , 479
I n c rease in other intangible assets ( 261 , 903 ) ( 145 , 732 )
I n c rease in deferred charg e s ( 313 , 061 ) ( 35 , 716 )
( I n c rease) decrease in refundable deposits, net ( 48 , 078 ) 29 , 646
I n c rease in pledged time deposit ( 121 , 970 ) ( 61 , 077 )
I n c rease in other assets, net ( 149 , 076 ) ( 65 , 736 )
Net cash used in investing activities ( 3 , 160 , 855 ) ( 3 , 100 , 434 )
Cash flows from financing activities:
I n c rease (decrease) in commercial paper payable, net 94 , 582 ( 152 , 211 )
I n c rease (decrease) in short - t e rm debts, net 2 , 793 , 372 ( 3 , 969 , 997 )
P roceeds from long-term loans 21 , 305 , 117 13 , 059 , 320
Repayments of long-term loans ( 21 , 664 , 924 ) ( 11 , 665 , 057 )
I n c rease in other long-term payable 53 , 348 -
D i rectors' and supervisors' re m u n e r a t i o n ( 10 , 000 ) ( 10 , 000 )
Cash dividends paid ( 99 , 393 ) ( 446 , 204 )
Redemption of convertible bonds payable - ( 79 , 074 )
Acquisition of tre a s u ry stock ( 22 , 597 ) ( 2 , 212 )
I n c rease in minority intere s t 500 , 447 17 , 673
Net cash provided by (used in) financing activities 2 , 949 , 952 ( 3 , 247 , 762 )
Net decrease in cash and cash equivalents ( 1 , 014 , 449 ) ( 104 , 948 )
Cash and cash equivalents at beginning of year 2 , 495 , 271 2 , 600 , 219
Cash and cash equivalents at end of year $ 1 , 480 , 822 $ 2 , 495 , 271
Supplemental disclosures of cash flow inform a t i o n :
Cash paid for intere s t $ 300 , 364 $ 503 , 874
Cash paid for income tax $ 640 , 229 $ 847 , 080
The accompanying notes are an integral part of the consolidated financial statements.
See re p o rt of independent accountants dated March 14, 2003.
79 Consolidated Financial Statements And Report of Independint Accountants
80

M I TAC INTERNATIONAL CORP. AND SUBSIDIARIES
C O N S O L I DATED STATEMENT OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001
(EXPRESSED IN THOUSANDS OF NEW TA I WAN DOLLARS, EXCEPT EARNINGS PER SHARE)
2002 2001
Operating Revenues-net $ 159 , 590 , 950 $ 137 , 003 , 457
Operating Cost ( 150 , 412 , 860 ) ( 127 , 429 , 452 )
G ross Pro f i t 9 , 178 , 090 9 , 574 , 005
Operating Expenses
Selling expenses ( 769 , 226 ) ( 657 , 040 )
Administrative expenses ( 5 , 440 , 516 ) ( 5 , 676 , 428 )
R e s e a rch and development expenses ( 917 , 704 ) ( 865 , 455 )
( 7 , 127 , 446 ) ( 7 , 198 , 923 )
Operating Income 2 , 050 , 644 2 , 375 , 082
Non-operating Income
I n t e rest income 46 , 422 61 , 371
Investment income 282 , 075 93 , 008
Gain on disposal of pro p e rt y, plant and equipment 12 , 649 7 , 938
Gain on disposal of investment 466 , 060 56 , 572
Exchange gain, net 86 , 157 199 , 196
Other income 174 , 392 236 , 420
1 , 067 , 755 654 , 505
Non-operating Expenses
I n t e rest expenses ( 435 , 474 ) ( 590 , 756 )
Loss on disposal of pro p e rt y, plant and equipment ( 58 , 779 ) ( 1 , 253 )
Loss on physical count of inventories ( 2 , 229 ) ( 696 )
Loss on market value decline and obsolescence of inventories ( 160 , 372 ) -
Other losses ( 466 , 662 ) ( 324 , 694 )
( 1 , 123 , 516 ) ( 917 , 399 )
Income Before Income Tax and minority intere s t 1 , 994 , 883 2 , 112 , 188
Income Tax Expense (Note 4 (17)) ( 654 , 739 ) ( 680 , 597 )
Minority intere s t ( 475 , 240 ) ( 420 , 770 )
Net Income $ 864 , 904 $ 1 , 010 , 821
B e f o re A f t e r B e f o re A f t e r
income tax income tax income tax income tax
Basic Earnings Per Share (in dollars)
Income before income tax and minority intere s t $ 1 . 94 $ 1 . 30 $ 2 . 04 $ 1 . 39
Minority intere s t ( 0 . 46 ) ( 0 . 46 ) ( 0 . 41 ) ( 0 . 41 )
Net income $ 1 . 48 $ 0 . 84 $ 1 . 63 $ 0 . 98
Diluted Earnings Per Share (in dollars)
Income before income tax and minority intere s t 1 . 83 1 . 23 1 . 99 1 . 35
Minority Intere s t ( 0 . 45 ) ( 0 . 45 ) ( 0 . 41 ) ( 0 . 41 )
Net income $ 1 . 38 $ 0 . 78 $ 1 . 58 $ 0 . 94
P ro forma information of net income and earnings per share
disclosed as if the Company's stock held by subsidiaries was
not re c o rded as tre a s u ry stock
Net income $1 , 602 , 609 $ 947 , 870 $1 , 691 , 418 $1 , 010 , 821
Basic earnings per share (in dollars) $ 1 . 54 $ 0 . 91 $ 1 . 64 $ 0 . 98
Diluted earnings per share (in dollars) $ 1 . 44 $ 0 . 84 $ 1 . 58 $ 0 . 94
F I N A N C I A L C O N D I T I O N
A N D B U S I N E S S R E S U L T S -
A N A L Y S I S A N D R I S K
M A N A G E M E N T
5
The accompanying notes are an integral part of the consolidated financial statements.
See re p o rt of independent accountants dated March 14, 2003.
81 Consolidated Financial Statements And Report of Independint Accountants
82

MiTAC
International
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Annual Report
2002
Balance Sheet
Units:Thousands of NT Dollars
Ye a r
D i ff e re n t i a l
I t e m 2001 2002 A m o u n t %
C u rrent Assets 9 , 530 , 651 11,866,398 2,335,747 25
Fixed Assets 3 , 158 , 165 2,788,135 ( 370 , 030 ) ( 12 )
Other Assets 1 , 253 , 624 1,325,485 71,861 6
Total Assets 24 , 396 , 936 27,173,407 2,776,471 11
Changes in the Last Two Years in Current Liabilities and Long-Te rm Debt Coming Due Within One Ye a rC h i e f
Reasons for, Influence of, and Strategic Responses to Changes
Holders of the Companys convertible debenture bonds may exercise the redemption right in the first half
of 2003, changing the classification the convertible bonds from long-term liability to current liability. The
Company has already negotatiated long-term loans with other financial institutions, and there will be no
e ffect of the Company's financial condition.
C u rrent Liabilities 4 , 303 , 710 7 , 761 , 752 3,458,042 80
L o n g - Te rm Debt 4 , 149 , 758 2 , 500 , 000 ( 1 , 649 , 758 ) ( 40 )
Total Liabilities 8 , 879 , 038 10 , 753 , 676 1,874,638 21
C a p i t a l 9 , 945 , 133 10 , 415 , 686 470,553 5
Analysis of Business Re s u l t s
Units:Thousands of NT Dollars
Capital re s e rv e 3 , 3 3 9 , 2 9 3 3 , 1 1 0 , 8 0 6 ( 2 2 8 , 4 8 7 ) ( 7 )
Retained Earn i n g s 1 , 8 8 5 , 4 9 3 2 , 3 7 4 , 7 3 4 489,241 2 6
Total Stockholder Equity 1 5 , 5 1 7 , 8 9 8 1 6 , 4 1 9 , 7 3 1 901,833 6
Ye a r Amount of Incre a s e P e rc e n t a g e
I t e m 2 0 0 1 2 0 0 2 ( D e c re a s e ) C h a n g e
Operating Revenue 2 9 , 0 7 4 , 8 3 9 2 5 , 5 9 8 , 9 7 8 ( 3 , 4 7 5 , 8 6 1 ) ( 1 2 )
Less: Sales Return and Allowance ( 6 2 7 , 1 3 2 ) ( 4 2 1 , 4 1 6 ) ( 2 0 5 , 7 1 6 ) ( 3 3 )
Notes on Diff e re n t i a l
C u rrent Assets
In the current year, larger sales are generated in the second half, increasing accounts receivable and
i n v e n t o ry.
C u rrent Liabilities
Holders of the Companys convertible debenture bonds may exercise their redemption rights in the first
half of 2003, so the Company reclassify the convertible bonds from long-term liability to current liability.
A d d i t i o n a l l y, because larger sales are generated in the second half of the year, short - t e rm loans and
accounts payable incre a s e .
L o n g - Te rm Debt
Net Operating Revenue 28 , 447 , 707 25 , 177 , 562 ( 3 , 270 , 145 ) ( 11 )
Operating Costs ( 26 , 248 , 660 ) ( 23 , 121 , 839 ) ( 3 , 126 , 821 ) ( 12 )
G ross Pro f i t 2 , 199 , 047 2 , 055 , 723 ( 143 , 324 ) ( 7 )
Operating Expenses ( 1 , 976 , 974 ) ( 1 , 777 , 255 ) ( 199 , 719 ) ( 10 )
Operating Income 222 , 073 278 , 468 56 , 395 25
Non-Operating Income and Gains 1 , 238 , 231 1 , 154 , 129 ( 84 , 102 ) ( 7 )
Non-Operating Expenses and Losses ( 409 , 483 ) ( 555 , 013 ) 145 , 530 36
Net Income Before Ta x 1 , 050 , 821 877 , 584 ( 173 , 237 ) ( 16 )
Income Ta x ( 40 , 000 ) ( 12 , 680 ) ( 27 , 320 ) ( 68 )
Net Income 1 , 010 , 821 864 , 904 ( 145 , 917 ) ( 14 )
See 1.1.2 above.
Retained Earn i n g s
Distributed earning for 2001 and the current year's pro f i t .
83 Financial Condition and Business Re s u l t s-Analysis and Risk Management
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MiTAC
International
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Annual Report
2002
Analysis and interpretation of pro p o rtional increases and decreases year- t o - y e a r
Sales Return and Allowance
Cash Flow Analysis
Units:Thousands of NT
Due to decreases in revenues, a corresponding decrease in these items occurre d .
Net Gains
Although revenues declined, during this periods, tight controls were implemented on operating expenses,
enabling the gain in this category.
Non-operating Expenses and Losses
For this period, expenses related to unutilized production capacity were accounted for as non-operating
expenses, causing this incre a s e .
Income Ta x
As pre-tax net income decreased, expenses in this category also declined.
Reasons for Changes in the Companys Lines of Business
The Company did not change its main lines of business.
Main Factors Influencing Forecast Sales Volume for the Succeeding Year and the Basis of this
F o recast; the Companys Forecast of Growth or Decline in Sales Vo l u m e s
Based on appraisals of current market conditions, forecast sales volumes for various products in 2003 are
as follows:
Initial Cash Net Cash Flow C a s h Cash Surplus M e a s u res for Remedying
B a l a n c e f rom Operations O u t f l o w s ( S h o rt a g e ) Cash Short a g e
Investment Plans Financial
Management Plans
813 , 864 ( 1 , 645 , 324 ) ( 484 , 124 ) 329 , 740 165 , 195 996 , 005
Analysis of Cash Flow for the Current Ye a r
O p e r a t i o n s
During this period, due to increases in inventories and accounts receivable, operations resulted in a net
cash outflow.
Investment Activities
During this period, due to influence of the disposition of long-term investments and fixed assets, a net cash
inflow resulted from investment activities.
Financing Activities
During this period, an increase in short - t e rm loans resulted in a net cash inflow from financing activities.
Remedy For Cash Short f a l l s
By disposal of long-term investments and taking loans from banks.
P roduct Ty p e
Units: Thousands of units
Sales Vo l u m e
Analysis Of Cash Flow For The Next Ye a r
Units:Thousands of NT Dollors
Desktop Computers 2 , 7 5 1
N e t w o r k i n g 5 1 2
Wi reless Communications 8 1 9
Initial Cash P rojected net P rojected net P rojected cash M e a s u res for Remedying Cash Short a g e
Balance cash flow from cash outflows s u r p l u s Investment Financial
A operations B C A + B + C P l a n s Management Plans
329 , 740 1 , 543 , 191 ( 872 , 931 1 , 000 , 000 0 0
85 Financial Condition and Business Re s u l t s-Analysis and Risk Management
86

MiTAC
International
Corporation
Annual Report
2002
Influence on Finances of Major Capital Expenditures in the Most
Recent Ye a r
Units:Thousands of NT
Planned Actual or Actual or Total Amount Actual or Forecast Amounts By Ye a r
I t e m P rojected Source P rojected Date of Funds
of Funding of Completion R e q u i re d 1998 1989 2000 2001 2002
Investment Own funds M a rch 2002 1 , 966 , 783 14 , 833 192 , 376 502 , 884 1 , 011 , 707 244 , 983
in SSDL
F u t u re Responses
In order to reduce the impact of exchange rate fluctuations on the Company's profit/loss perf o rmance, the
Company has agreed with vendors and customers to as far as possible use US dollars for sales and purc h a s e s .
M o re o v e r, the Company pursues foreign exchange derivatives to hedge risks from foreign currency fluctations,
in accordance with P ro c e d u res of Trading in the Derivatives Pro d u c t s. In addition, the Company re g u l a r l y
evaluates interest rates on bank loans, working closely with banks in order to obtain favorable terms of loan
i n t e rest, lessening the potential impact of interest rate fluctuations on the Company's profit/loss perf o rm a n c e .
For The Most Recent Ye a r, Policies Regarding Participation In High-Risk, Highly Leveraged Investments,
Loans To Other Parties; Endorsements, Guarantees, and Derivatives; Major Reasons For Gains Or
Losses, And Future Responsive Measure s
Investment Policy in the Most Recent Ye a r, Major Reasons for Gains or
Losses, Plans for Improvement, and Investment Plans for the Nex t
Ye a r
Not applicable. In the current year, there has been no investment exceeding 5% of total paid-in capital
In 2002, the Company did not pursue high-risk, highly leveraged investments, nor provide loans to other parties. In
compliance with regulations, the Company have already established P ro c e d u re for Lending Money to Other
P a rt y.
Endorsements and guarantees provided by the Company in 2002 were in conformance with P ro c e d u res of
Guaranty for Other Person. The upper limit for endorsements and guarantees by the Company is
NT$15,517,898. As of December 31, 2002, the Company's balance of endorsements or guarantees amounted to
Risk Management
Influence of Interest Rates in the Most Recent Ye a r, Exchange Rate Fluctuations, Inflation on the Company's
P rofits or Losses, and Future Responses
Influence Of Interest Rates, Exchange Rate Fluctuations, And Inflation On The Company's Profits Or Losses In 2002
I t e m Amount for2002 As Percentage of
Thousands of NT Dollars Operating Revenues(%)
I n t e rest Expenses 309 , 561 1 . 23
F o reign Exchange Gains 93 , 945 0 . 37
T h e re was no significant inflation in 2002.
N T $ 5 , 2 3 8 , 2 6 3 .
Derivatives transaction during 2002 were conducted according to P ro c e d u re of Trading in the Derivatives
P ro d u c t s.
P rojects in the Last Ye a r, Current Status of R&D Projects in Pro g ress, Additional R&D Expenditure s
R e q u i red, Projected Time to Mass Production, Key Factors Affecting Success of R&D Eff o rt s
Desktop PCs
F u t u re products slated for development will integrate digital audiovisual applications and the Intern e tf o r
example, high-resolution digital televisions, personal digital camcorders, optical storage devices, home serv e r s ,
w i reless networking products. It is projected that these products will enter mass production in the third quart e r
of 2004. The key to the success of this R&D eff o rt will be whether relevant industry standards are unified.
On another front, due to the rapid increase in the speed of CPUs, demands stemming from heat dissipation
designs and safety regulations will become more important. Beginning in 2002, development of small form
factor chassis commenced, as well the development of system arc h i t e c t u res for personal computers with
superior thermal characteristics. Products have been introduced beginning in 2003. The key to the success of
87 Financial Condition and Business Re s u l t s-Analysis and Risk Management
88

MiTAC
International
Corporation
Annual Report
2002
these R&D eff o rts is lowering material costs.
C o o rdinating with the eff o rts of major vendors of high-perf o rmance chips for workstations, the company has
initiated development and manufacture of high-end low-cost workstations. Beginning in 2003, it has alre a d y
begun mass producing these workstation models, with full ramp-up expected in the third quarter of 2003. The
key to the success of these R&D eff o rts will be broad availability and maturity of the chips for low-cost
w o r k s t a t i o n s .
Networking Pro d u c t s
Development of ultra-dense blade servers has commenced, with mass production set to begin by the end of this
y e a r. Development of high-perf o rmance servers is also in pro g ress, with mass production slated to start midy
e a r. The main factor influencing the success of this R&D eff o rt is the capabilities of the R&D team. In re s p o n s e ,
R&D staffers in Shanghai and the USA have joined product development work.
Wi reless Communications Pro d u c t s
The wireless communications products under development this year include two major categories: Pocket PCs
and smart phones. Three to four new Pocket PC models are slated for development, with shipments to begin in
the third quarter of this year. For smart phones, two or three new products will be introduced. The first model
will enter mass production in the second quarter of this year, with the second set to follow in the third quart e r.
Because these eff o rts involved the new development of several new products, an additional 80 or more
engineers will need to be deployed in order to complete the designs.
A d d i t i o n a l l y, because wireless-enabled Pocket PCs and smart phones entail complicated process of cert i f i c a t i o n
for compliance with RF design and telecommunications regulations. In order to successfully complete design
work, technical assistance from wireless communications module vendors will be re q u i red, as well as design
collaboration with Microsoft and Intel in order to ensure the phone product's design quality. However, since
M i TAC International is the first company to adopt Microsoft and Intel's smart phone re f e rence design, it can
v i rtually guarantee the process of obtaining assistance will be uneventful, and there f o re, product development
Technology Changes in the Most Recent Ye a rTheir Influence on the Company's Finances and Sales,
and the Company's Responses
Desktop Computer Pro d u c t s :
Due to rapid price declines and intense competition in computer hard w a re products, profits are being
squeezed despite growth in unit sales. The appropriate response is develop lower-cost products and speed up
their development and ramp-up to mass pro d u c t i o n .
Networking Pro d u c t s
Due to the effects of an unfavorable economic environment, companies are investing less in technology. As a
result, the revenues that a single new product can contribute are correspondingly diminished. In addition,
vendors are cutting prices in order to obtain orders, putting pre s s u re on profit margins. There f o re, a gre a t e r
number of R&D workers must be assigned to a greater number of new development projects in order to achieve
the same level of revenues and profits. The appearance of Ultra-dense serv e r s p roduct should increase average
p e r-unit prices and production value.
Wi reless Communications Pro d u c t s
The product technology development trend embedded systems devices that play an important role in handheld
p roducts is toward lower power consumption and greater functional integration in a single chip. The trend for
wirless communications products, besides lower power consumption, is toward ever faster speeds for data
communications. MiTAC International is able to keep abreast of these trends due to its strategic alliances with
Intel, Microsoft, and world-famous telecommunications companies. This has enabled MiTAC International to
develop a new generation of PDA products and handheld smart client products. Receiving a favorable re s p o n s e
f rom the broader market, MiTAC's eff o rts in this area have contributed to sales and pro f i t s .
Corporate Image Changes in the Most Recent Ye a rTheir Influence on the Company's Crisis
Management Capabilities, and the Company's Response
N o n e .
risks have been greatly re d u c e d .
Major Changes in Governmental Policy and LawsE ffects on the Company's Financial Status and
Business, Strategic Responses
C u rrently under planning in accordance with the Company's governance principles. The Company will conform
Other Important Events
N o n e .
to the law with a spirit of stregthening the systematization and transparency of its operations as the guiding
p r i n c i p l e .
89 Financial Condition and Business Re s u l t s-Analysis and Risk Management
90

MiTAC
International
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Annual Report
2002
Information on Affiliates
O rganization Chart of Aff i l i a t e s
S P E C I A L
E V E N T S O F
R E C O R D
Tsu Fong
Investment Corp.
MiTAC International Corporation
100% 50.27% 100%
Mitac Precision
Technology Co., Ltd.
Silver Star
Developments Ltd.
Please see next page.
100% 100% 50%
So Fong
Investment Co., Ltd.
Hot Link Technoloty Ltd.
Etergris Precision
Technology Ltd.
100%
100%
49%
6
My Outlet Co., Ltd.
Master China Ltd.
MiTAC Precision
Techonlogy
(KunShan) Ltd.
100%
Pacific Metal
Developments Ltd.
MiTAC Precision
Techonlogy
(ShunDe) Ltd.
100%
91
92

MiTAC
International
Corporation
Annual Report
2002
MiTAC International Corporation
100%
Silver Star Developments Ltd
55.24% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Synnex
Information
Technologies,
Inc.
Mitac
U.S.A.
Inc.
Mitac
Japan
Corp.
Mitac
Benelux N.V.
MS
Hardware
Service
GmbH
Mitac
System
(Asia) Ltd.
Mitac U.K.
Ltd.
ECland Ltd.
Mitac Star
Service Ltd.
Pacific China
Corp.
System
Glory
International
Ltd.
Mitac Pacific
(H.K.) Ltd.
SYNNEX MUSA MJC MBN MSM
MSA MUK Ecland MSS PCC
SG
MHK
50.51%
51%
100%
100%
100%
51%
Start Well
Technology
Ltd.
Pacific Metal
Developments
Ltd.
Mitac Service
(ShangHai)
Co., Ltd.
MiTAC
Computer
(ShunDe) Ltd.
MiTAC
Computer
(ShunDe) Ltd.
MiTAC
Computer
(ShangHai) Ltd.
MiTAC
Computer
(Shenzhen) Ltd.
SWT
PMD
MDS MSL SIL
MSH
MST
100%
100%
90%
MiTAC Precision
Technology
(KunShan) Ltd.
MiTAC Precision
Technology
(ShunDe) Ltd.
MiTAC Research
(ShangHai) Ltd.
MKL
MPTS
MRS
100% 74% 80.13% 100% 100% 100% 100%
Synnex
Information
Technologies
(China), Ltd.
Synnex
K.K.
(Japan)
Mitac de
Mexico,
S.A. de
C.V.
Synnex
Information
Technologies
(U.K.) Ltd.
Mitac
Industrial
Corp.
Synnex
Canada Inc.
Sennex
Enterprises
Ltd.
93 Special Events of Re c o r d
94

MiTAC
International
Corporation
Annual Report
2002
Affiliated Companies-Basic Data
Units: Thousands of NT Dollars
Company Name Establishm ent Date A d d re s s Paid-In Capital Main Business or Manufactured Items
Tsu Fong Investment Corp. F e b ru a ry 16, 1998 10 / F, 77 Minsheng East Road, Section 3, Taipei, Ta i w a n N T $ 65 , 000 Investment activities
M i TAC Precision Technology Corporation June 17, 2000 202 Wenhua 2nd Road, Kueishan Hsiang, Taoyuan County, Ta i w a n NT$605,610 M a n u f a c t u re, wholesale distribution, and retail sales of precision molds; manufacture
of electronic components
Silver Star Developments Ltd. Jun. 05, 1990 P.O. Box 71, Craigmuir Chambers, Road Town, To rtola, British Vi rgin Islands U S $ 122 , 425 Investment activities
Synnex Information Technologies, Inc. N o v. 18, 1980 3797 Spinnaker Court, Fremont, CA 94538, U.S.A. US$78,520 Computer peripherals, software and hard w a re, and related pro d u c t
M i TAC U.S.A. Inc. M a r. 15, 1993 42001 Christy Street, Fremont, CA 94538, U.S.A. US$2,750 computer peripherals, software and hard w a re, and related pro d u c t
M i TAC Japan Corp. A p r. 30, 1983 1-2-8 Showajima, Ohta-Ku, Tokyo, Japan 143-0004 YEN 249,000 computer peripherals, software and hard w a re, and related pro d u c t
MS Hard w a re Service GmbH Sept. 23, 1993 Ungelsheimer Weg 3, 40472 Dusseldorf, Germ a n y EUR 31 computer peripherals, software and hard w a re, and related pro d u c t
M i TAC Benelux N.V. Sept. 13, 1993 B russelsesteenweg 307B, 1785 Brussegem, Belgium EUR 1,618 computer peripherals, software and hard w a re, and related pro d u c t
M i TAC (UK) Ltd. N o v. 21, 2000 Synnex House, Nedge Hill, Te l f o rd, Shro p s h i re TF3 3AH, U.K. $500 computer peripherals, software and hard w a re, and related pro d u c t
ECLand Ltd. Jul. 10, 2000 Synnex House, Nedge Hill, Te l f o rd, Shro p s h i re TF3 3AH, U.K. $0 computer peripherals, software and hard w a re, and related pro d u c t
M i TAC Pacific (H.K.) Ltd. Jun. 13, 1991 Units 5-6, 11/F, Westlands Center, 20 Westlands Road, Quarry Bay, Hong Kong US$10 computer peripherals, software and hard w a re, and related pro d u c t
M i TAC System (Asia) Ltd. M a y. 14, 1992 Units 5-6, 11/F, Westlands Center, 20 Westlands Road, Quarry Bay, Hong Kong HKD 25,156 computer peripherals, software and hard w a re, and related pro d u c t
System Glory International Ltd. Oct. 25, 1995 P.O. Box 957, Off s h o re Incorporations Centre, Road Town, To rtola, British Vi rgin Islands US$0 Investment activities
Pacific China Corp. Dec. 27, 1996 P.O. Box 957, Off s h o re Incorporations Centre, Road Town, To rtola, British Vi rgin Islands US$0 Investment activities
M i TAC Star Service Ltd. Jan. 12, 2001 P.O. Box 957, Off s h o re Incorporations Centre, Road Town, To rtola, British Vi rgin Islands US$0 P rovision and sales of repair technical serv i c e
Synnex de Mexico, S.A. DE C.V. Feb. 23, 1993 Bahia De Todos Los Santos No. 149, Col. Ve ronica Anzures 11300 Mexico D.F. US$0 computer peripherals, software and hard w a re, and related pro d u c t
Synnex K.K. Japan A p r. 26, 1995 3-2-5 Ueno, Taito-Ku, Tokyo, 110, Japan YEN 314,300 computer peripherals, software and hard w a re, and related pro d u c t
Synnex Information Technologies (China) Ltd. Dec. 02, 1999 Unit 06-12, Level 7, China World Tower 2, No. 1 Jian Guo Men Wai Ave., Beijing, PRC RMB 45,494 Wholesale distribution of software, retail sales, services; digital information ser v i c e s ;
business management consultancy
Synnex Information Technologies (U.K.) Ltd. Sept. 16, 1988 Synnex House, Nedge Hill, Te l f o rd, Shro p s h i re TF3 3AH, U.K. $3,000 computer peripherals, software and hard w a re, and related pro d u c t
M i TAC Industrial Corp. A p r. 12, 1994 41968 Christy Street Fremont, CA 94538 U.S.A. US$5,534 computer peripherals, software and hard w a re, and related pro d u c t
Synnex Canada Ltd. Jul. 29, 1990 200 Ronson Drive, Etobicoke ON Canada M9W 5Z9 CDN 79,239 computer peripherals, software and hard w a re, and related pro d u c t
Sennex Enterprises Ltd. Aug. 21, 2000 The Lee Gardens, 33 Hysan Avenue, Causeway Bay, Hong Kong HKD 0 computer peripherals, software and hard w a re, and related pro d u c t
S o f t w a re Insights Ltd. Jul. 08, 2000 P.O. Box 957, Off s h o re Incorporations Centre, Road Town, To rtola, British Vi rgin Islands US$900 Investment activities
M i TAC Computer (ShenZhen) Ltd. Sept. 24, 2001 6Fl, Industry Park, Shenfubao Building, No.3 Huang Huai Road, Fu Tian Fre e Trade Zone, HKD 3,000 Computers, monitors, and peripheral products, warehousing and trade in electro n i c s
Shenzhen, Guangdong Province, China
m a t e r i a l s
M i TAC Computer (KunShan) Co., Ltd. N o v. 01, 2000 Kunshan Export Processing Zone, Jiangsu Province, China RMB 81,944 P roduces computers and peripheral equipment, hard w a re and software and related
p roduct; sales of own manufactured pro d u c t
95 Special Events of Re c o r d
96

MiTAC
International
Corporation
Annual Report
2002
Company Name Establishm ent Date A d d re s s Paid-In Capital Main Business or Manufactured Items
M i TAC Service (ShangHai) Co., Ltd. Oct. 11, 2001 2 Fl, No. 129 Fute Rd. (N.), Waigaoqiao Free Trade Zone, Shanghai, China RMB1,655 M a n u f a c t u res and assembles computers, computer components; warehousing,
distribution, testing, repairs, displays of same; technical support and after- s a l e s
s e rvice for related pro d u c t s
M i TAC Computer (ShunDe) Ltd. Jan. 18, 1993 No. 1 ShunDa Rd., Lunjiao Town, Shunde City, Guangdong Province, China RMB379,909 M a n u f a c t u res computer mainboards, interface cards, monitors, power supplies,
k e y b o a rds, related pressed metal parts, plastic
M i TAC Research (ShangHai) Ltd. M a r. 10, 2000 Bldg. 2, No. 1486, Nan Jing Rd. (W.), Shanghai, China RMB8,279 R&D and manufacture of computer software; sales of own manufactured product and
p rovision of related technical support serv i c e .
M i TAC Computers (ShangHai) Ltd. Jul. 12, 2000 4560 Cao An Rd., Shanghai 201804 RMB51,000 R&D, production of high-end PC servers, notebook computers, motherboards, add-on
c a rds and other hard w a re products; software R&D; sales of own manufactured
p roducts and provision of after-sales serv i c e .
M i TAC Precision Technology (ShunDe) Ltd. Dec. 12, 1995 No. 1 Shunde Rd., Lunjiao Town, Shunde City, Guangdong Province, China RMB82,861 Computer cases and their components, precision injection molds, mold components,
stamping part, mold processing, design repair services, .steel sheet shearing
So Fong Investment Co., Ltd. April 8, 1999 10 / F, 77 Minsheng East Road, Section 3, Taipei, Ta i w a n NT$260,000 Investment activities
My Outlet Corp.. J a n u a ry 15, 2000 11/F-1, 9 Chunghwa Road Section 3, Hsinchu City, Ta i w a n NT$5,000 Data processing services, Wholesale distribution of software, retail sales
Hot Link Technology Ltd. M a y. 10, 2000 P.O. Box 957, Off s h o re Incorporations Centre, Road Town, To rtola, British Vi rgin Islands US$5,350 Investment activities
Pacific Metal Developments Ltd. M a r. 31, 2000 P.O. Box 957, Off s h o re Incorporations Centre, Road Town, To rtola, British Vi rgin Islands US$10,000 Investment activities
S t a rt Well Technology Ltd. A p r. 20, 2000 P.O. Box 957, Off s h o re Incorporations Centre, Road Town, To rtola, British Vi rgin Islands US$9,900 Investment activities
Master China Ltd. N o v. 28, 2001 P.O. Box 957, Off s h o re Incorporations Centre, Road Town, To rtola, British Vi rgin Islands US$0 Investment activities
M i TAC Precision Te c h n o l o g y Jan. 28, 2002 Kunshan Export Processing Zone, Jiangsu Province, China US$450 P roduce computer cases and their components, precision injection molds, mold
(Kunshan) Co., Ltd.
components, mold processing and design
E n t e rgris Precision Technology Corp. Jul. 31, 2002 10 / F, 77 Minsheng East Road, Section 3, Taipei, Ta i w a n NT$130,000 Manufacturing, wholesale distribution and retail sales of precision molds;
manufacturing of electronic components
Shareholders Designated as Having the Same Controlling or Subservient Relationship: None.
97 Special Events of Re c o r d
98

MiTAC
International
Corporation
Annual Report
2002
Business and Inter- Relationships of Affiliates
Units: Thousands of NT Dollars
B u s i n e s s A ffiliate Name Relationship to Businesses of Other Affiliated Companies
Computer Manufacturing and Sales Synnex Information Technologies, Inc. M a n u f a c t u res, sells MiTAC International products; provides after-sales serv i c e
M i TAC U.S.A. Inc.
M i TAC Japan Corp.
M i TAC Benelux N.V.
M i TAC (UK) Ltd.
Synnex Information Technologies, (U.K.) Ltd.
M i TAC Industrial Corp.
M i TAC Computer (KunShan) Co., Ltd.
M i TAC Computer (ShunDe) Ltd.
M i TAC Computer (Shanghai) Ltd.
M i TAC Precision Technology (ShunDe) Ltd.
M i TAC Precision Technology (Kunshan) Co., Ltd.
E n t e rgris Precision Technology Corp.
M a n u f a c t u res, sells MiTAC International products; provides after-sales serv i c e
M a n u f a c t u res, sells MiTAC International products; provides after-sales serv i c e
M a n u f a c t u res, sells MiTAC International products; provides after-sales serv i c e
M a n u f a c t u res, sells MiTAC International products; provides after-sales serv i c e
M a n u f a c t u res, sells MiTAC International products; provides after-sales serv i c e
Sells computer- related pro d u c t s
M a n u f a c t u res, sells MiTAC International products; provides after-sales serv i c e
M a n u f a c t u res, sells MiTAC International products; provides after-sales serv i c e
M a n u f a c t u res, sells MiTAC International products; provides after-sales serv i c e
M a n u f a c t u res, sells MiTAC Precision Technology products; provides after-sales serv i c e
M a n u f a c t u res, sells MiTAC Precision Technology products; provides after-sales serv i c e
M a n u f a c t u res computer- related products; provides after-sales serv i c e
Holding Company Silver Star Developments Ltd. Invests in overseas subsidiaries; manufactures, sells MiTAC International products; provides after-sales serv i c e
System Glory Int'l Ltd.
Pacific China Corp.
S o f t w a re Insights Ltd.
Hot Link Technology Ltd.
Pacific Metal Developments Ltd.
S t a rt Well Technology Ltd.
Master China Ltd.
Invests in overseas subsidiaries; manufactures, sells MiTAC International products; provides after-sales serv i c e
Invested in Software Insights Ltd. and several Chinese companies; Manufactures, sells MiTAC International products; provides after-sales ser v i c e
Invested in MiTAC Research (ShangHai) Ltd; manufactures, sells MiTAC International products; provides after-sales serv i c e
Invests in overseas subsidiaries; manufactures, sells MiTAC Precision Technology products; provides after-sales serv i c e
Invested in MiTAC Precision Technology (ShunDe) Ltd; manufactures, sells MiTAC International and MiTAC Precision Technology products;
p rovides after-sales serv i c e
Investment in overseas subsidiaries; manufactures and sellsMiTAC International products; provides after-sales serv i c e
Investment in overseas subsidiaries; manufactures and sells MiTAC Precision Technology products; provides after-sales serv i c e
Investment Companies Tsu Fong Investment Corp.Investment activities
So Fong Investment Co., Ltd.
Investment activities
99 Special Events of Re c o r d
100

MiTAC
International
Corporation
Annual Report
2002
B u s i n e s s A ffiliate Name Relationship to Businesses of Other Affiliated Companies
P recision Mold Manufacturing M i TAC Precision Technology Corp. M a n u f a c t u res, perf o rms wholesale distribution, retails precision molds
M e rchandise Tr a d e MS Hard w a re Service GmbH Sales of MiTAC International products and provision of after-sales serv i c e
M i TAC Star Service Ltd.
Synnex de Mexico, S.A. DE C.V.
Synnex K.K. Japan
Synnex Canada Ltd.
M i TAC Computer (ShenZhen) Ltd.
M i TAC Service (ShangHai) Co., Ltd.
ECLand Ltd.
M i TAC Pacific (H.K.) Ltd.
M i TAC System (Asia) Ltd.
My Outlet Corp.
Sales of MiTAC International products and provision of after-sales serv i c e
Sales of MiTAC International products and provision of after-sales serv i c e
M a n u f a c t u res, sells MiTAC International products; provides after-sales serv i c e
M a n u f a c t u res, sells MiTAC International products; provides after-sales serv i c e
Sales of MiTAC International products and provision of after-sales serv i c e
Sales of MiTAC International products and provision of after-sales serv i c e
Sales of MiTAC International pro d u c t s
Sales of MiTAC International pro d u c t s
Sales of MiTAC International pro d u c t s
Data processing services, wholesale distribution of software, retail sales
Technical Serv i c e Synnex Information Technologies (China) Ltd. Wholesale distribution of software, retail sales, services; digital information serv i c e s
Sennex Enterprises Ltd.
M i TAC Research (ShangHai) Ltd.
Wholesale distribution of software, retail sales, services; digital information serv i c e s
R&D, production of computer software, sales of own manufactured product, and supply of related technical support serv i c e s
101 Special Events of Re c o r d
102

MiTAC
International
Corporation
Annual Report
2002
Directors, Supervisors, General Managers of Affiliated Companies Units: Thousands of NT Dollars, shares, %
Company name Ti t l e Name Of Repre s e n t a t i v e Number of Share s P e rcentage of Total Share s
Tsu Fong Investment Corp. C h a i rm a n M i TAC International Corporation Representative: Francis Ts a i 6,500,000 100 . 0000 %
D i re c t o r M i TAC International Corporation Representative: Matthew Miau 6,500,000 100 . 0000 %
D i re c t o r M i TAC International Corporation Representative: C.J. Lin 6,500,000 100 . 0000 %
S u p e rv i s o r M i TAC International Corporation Representative: C.S. Chen 6,500,000 100 . 0000 %
General Manager Francis Ts a i 0 0 . 00000 %
M i TAC Precision Technology Corporation C h a i rm a n M i TAC International Corporation Representative: Francis Ts a i 30,446,500 50 . 27 %
D i re c t o r M i TAC International Corporation Representative: Billy Ho 30,446,500 50 . 27 %
D i re c t o r M i TAC International Corporation Representative: James Hwang 30,446,500 50 . 27 %
S u p e rv i s o r M i TAC International Corporation Representative: C.S. Chen 30,446,500 50 . 27 %
General Manager Francis Ts a i 345,000 0 . 570 %
Silver Star Developments Ltd. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 0 0 . 00 %
D i re c t o r Billy Ho 0 0 . 00 %
D i re c t o r James Yu a n 0 0 . 00 %
Synnex Information Technologies, Inc. C O B Matthew Miau 0 0 . 00 %
D i re c t o r Dwight Steff e n s e n 0 0 . 00 %
D i re c t o r / C E O R o b e rt Huang 300,000 0 . 68 %
D i re c t o r Young Sohn 0 0 . 00 %
D i re c t o r F red A. Bre i d e n b a c h 0 0 . 00 %
M i TAC U.S.A. Inc. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 0 0 . 00 %
M i TAC Japan Corp. D i re c t o r Matthew Miau N / A 0 . 00 %
D i re c t o r Francis Ts a i N / A 0 . 00 %
D i re c t o r I i d a N / A 0 . 00 %
D i re c t o r S a t o N / A 0 . 00 %
MS Hard w a re Service GmbH D i re c t o r Matthew Miau N / A 0 . 00 %
D i re c t o r Francis Ts a i N / A 0 . 00 %
M i TAC Benelux N.V. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 1 0 . 0015 %
M i TAC (UK) Ltd. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 0 0 . 00 %
ECLand Ltd. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 0 0 . 00 %
M i TAC Pacific (H.K.) Ltd. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 0 0 . 00 %
103 Special Events of Re c o r d
104

MiTAC
International
Corporation
Annual Report
2002
Company name Ti t l e Name Of Repre s e n t a t i v e Number of Share s P e rcentage of Total Share s
M i TAC System (Asia) Ltd. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 1 0 . 000004 %
System Glory International Ltd. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 0 0 . 00 %
D i re c t o r Billy Ho 0 0 . 00 %
D i re c t o r James Yu a n 0 0 . 00 %
Pacific China Corp. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 0 0 . 00 %
D i re c t o r Billy Ho 0 0 . 00 %
D i re c t o r James Yu a n 0 0 . 00 %
M i TAC Star Service Ltd. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 0 0 . 00 %
D i re c t o r Billy Ho 0 0 . 00 %
D i re c t o r James Yu a n 0 0 . 00 %
Synnex de Mexico, S.A. DE C.V. D i re c t o r R o b e rt Huang 0 0 . 00 %
D i re c t o r Simon Leung 0 0 . 00 %
Synnex K.K. Japan D i re c t o r R o b e rt Huang 80,000 1 . 52 %
D i re c t o r Matthew Miau 80,000 1 . 52 %
D i re c t o r Akira Nakamura 60,000 1 . 14 %
D i re c t o r Ryuzo Nagata 5,000 0 . 09 %
D i re c t o r / C E O Akio Sekido 300,000 5 . 69 %
D i re c t o r Katsumi Nakamura 13,000 0 . 25 %
Synnex Information Technologies (China), Ltd. C O B R o b e rt Huang 0 0 . 00 %
D i rector Simon Leung 0 0 . 00 %
D i re c t o r Zhang Jih 0 0 . 00 %
Synnex Information Technologies (U.K.) Ltd. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 0 0 . 00 %
D i re c t o r / P re s i d e n t R o b e rt Huang 0 0 . 00 %
M i TAC Industrial Corp. D i re c t o r / P re s i d e n t R o b e rt Huang 0 0 . 00 %
Synnex Canada Ltd. D i re c t o r / P re s i d e n t R o b e rt Huang 0 0 . 00 %
D i rector Mitchell P. Mart i n 0 0 . 00 %
Sennex Enterprises Ltd. D i rector R o b e rt Huang 0 0 . 00 %
D i rector Simon Leung 0 0 . 00 %
105 Special Events of Re c o r d
106

MiTAC
International
Corporation
Annual Report
2002
Company name Ti t l e Name Of Repre s e n t a t i v e Number of Share s P e rcentage of Total Share s
S o f t w a re Insights Ltd. D i re c t o r Matthew Miau 0 0 . 00 %
D i re c t o r Francis Ts a i 0 0 . 00 %
D i re c t o r Billy Ho 0 0 . 00 %
D i re c t o r James Yu a n 0 0 . 00 %
M i TAC Computer (ShenZhen) Ltd. C h a i rm a n M i TAC Pacific (H.K.) Ltd. Representative Francis Ts a i N / A 100 . 00 %
Vice Chairman/General Manager M i TAC Pacific (H.K.) Ltd. Representative Percy Chen N / A 100 . 00 %
D i re c t o r M i TAC Pacific (H.K.) Ltd. Representative C. S. Chen N / A 100 . 00 %
M i TAC Computer (KunShan) Co., Ltd. C h a i rm a n Pacific China Corp. Representative Francis Ts a i N / A 100 . 00 %
D i re c t o r Pacific China Corp. Representative James Hwang N / A 100 . 00 %
D i rector/General Manager Pacific China Corp. Representative C. P. Li N / A 100 . 00 %
M i TAC Service (ShangHai) Co., Ltd. C h a i rm a n Pacific China Corp. Representative Francis Ts a i N / A 100 . 00 %
General/General Manager Pacific China Corp. Representative Percy Chen N / A 100 . 00 %
D i re c t o r Pacific China Corp. Representative C. P. Li N / A 100 . 00 %
M i TAC Computer (ShunDe) Ltd. C h a i rm a n Pacific China Corp. Representative Francis Ts a i N / A 100 . 00 %
Vice Chairm a n N / A 0 . 00 %
General/General Manager Pacific China Corp. Repre s e n t a t i v e N / A 100 . 00 %
D i re c t o r Pacific China Corp. Representative Matthew Miau N / A 100 . 00 %
D i re c t o r Pacific China Corp. Repre s e n t a t i v e N / A 100 . 00 %
D i re c t o r Pacific China Corp. Representative James Yu a n N / A 100 . 00 %
D i re c t o r N / A 0 . 00 %
M i TAC Research (ShangHai) Ltd. C h a i rm a n S o f t w a re Insights Ltd. Representative N. Y. Ye h N / A 90 . 00 %
D i re c t o r S o f t w a re Insights Ltd. Representative Francis Ts a i N / A 90 . 00 %
D i re c t o r S o f t w a re Insights Ltd. Representative C. S. Chen N / A 90 . 00 %
D i re c t o r N / A 0 . 00 %
D i re c t o r S o f t w a re Insights Ltd. N / A 0 . 00 %
M i TAC Computers (ShangHai) Ltd. C h a i rm a n Pacific China Corp. Representative Francis Ts a i N / A 51 . 00 %
Vice Chairm a n N / A 0 . 00 %
D i re c t o r Pacific China Corp. Representative Billy Ho N / A 51 . 00 %
D i re c t o r Pacific China Corp. Repre s e n t a t i v e N / A 51 . 00 %
D i re c t o r N / A 0 . 00 %
General Manager N / A 0 . 00 %
Vice General Manager N / A 0 . 00 %
M i TAC Precision Technology (ShunDe) Ltd. C h a i rm a n Pacific Metal Developments Ltd. Representative Francis Ts a i N / A 100 . 00 %
Vice Chairm a n Pacific Metal Developments Ltd. Representative Billy Ho N / A 100 . 00 %
D i rector/General Manager Pacific Metal Developments Ltd. Representative Raymon Lee N / A 100 . 00 %
So Fong Investment Co., Ltd. C h a i rm a n Tsu Fong Investment Corp. Representative Francis Ts a i 26,000,000 100 . 0000 %
D i re c t o r Tsu Fong Investment Corp. Representative Matthew Miau 26 , 000 , 000 100 . 0000 %
D i re c t o r Tsu Fong Investment Corp. Representative Vicky Hsieh 26,000,000 100 . 0000 %
S u p e rv i s o r Tsu Fong Investment Corp. Representative C. S. Chen 26,000,000 100 . 0000 %
107 Special Events of Re c o r d
108

MiTAC
International
Corporation
Annual Report
2002
Company name Ti t l e Name Of Repre s e n t a t i v e Number of Share s P e rcentage of Total Share s
My Outlet Corp.. C h a i rm a n So Fong Investment Co., Ltd. Representative Pre rcy Chen 500,000 1 0 0 . 0 0 0 0 %
D i re c t o r So Fong Investment Co., Ltd. Representative Francis Ts a i 500,000 1 0 0 . 0 0 0 0 %
D i re c t o r So Fong Investment Co., Ltd. Representative Billy Ho 500,000 1 0 0 . 0 0 0 0 %
S u p e rv i s o r So Fong Investment Co., Ltd. Representative C. S. Chen 500,000 1 0 0 . 0 0 0 0 %
General Manager 0 0 . 0 0 0 0 %
Hot Link Technology Ltd. D i re c t o r Francis Ts a i 0 0 . 0 0 %
D i re c t o r Billy Ho 0 0 . 0 0 %
D i re c t o r Tim Wu 0 0 . 0 0 %
D i re c t o r James Yu a n 0 0 . 0 0 % 1 0 0 . 0 0 %
Pacific Metal Developments Ltd. D i rector Francis Ts a i 0 0 . 0 0 %
D i re c t o r Billy Ho 0 0 . 0 0 %
D i re c t o r Tim Wu 0 0 . 0 0 %
D i re c t o r James Yu a n 0 0 . 0 0 %
S t a rt Well Technology Ltd. D i re c t o r Matthew Miau 0 0 . 0 0 %
D i re c t o r Francis Ts a i 0 0 . 0 0 %
D i re c t o r James Hwang 0 0 . 0 0 %
D i re c t o r James Yu a n 0 0 . 0 0 %
Master China Ltd. D i rector Francis Ts a i 0 0 . 0 0 %
D i re c t o r Billy Ho 0 0 . 0 0 %
D i re c t o r Tim Wu 0 0 . 0 0 %
D i re c t o r James Yu a n 0 0 . 0 0 %
M i TAC Precision Technology (Kunshan) Co., Ltd. C h a i rm a n Master China Ltd. Representative Francis Ts a i N / A 1 0 0 . 0 0 %
Vice Chairm a n Master China Ltd. Representative Tim Wu N / A 1 0 0 . 0 0 %
D i rector/General Manager Master China Ltd. Representative C.P. Li N / A 1 0 0 . 0 0 %
E n t e rgris Precision Technology Corp. C h a i rm a n
R e p resentative Francis Ts a i 6,500,000 50 . 00 %
D i re c t o r
R e p resentative Tim Wu 6,500,000 50 . 00 %
D i re c t o r Entegris Repre s e n t a t i v e 6,500,000 5 0 . 0 0 %
D i re c t o r Entegris Repre s e n t a t i v e 6,500,000 5 0 . 0 0 %
S u p e rv i s o r
R e p resentative Vicky Hsieh 6,500,000 50 . 00 %
S u p e rv i s o r Entegris Repre s e n t a t i v e 6,500,000 5 0 . 0 0 %
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110

MiTAC
International
Corporation
Annual Report
2002
Operations Overview of Affliated Companies
Units: Thousands of NT Dollars
Company Name C a p i t a l Total Assets Total Liabilities Net Va l u e Operating Revenues Operating Pro f i t P rofit/Loss (after tax) EPS (NT$) (after tax)
Tsu Fong Investment Corp. 65,000 602,474 290,976 311,498 147,812 129,039 128,448 19.76
M i TAC Precision Technology Co., Ltd. 605 , 610 2,346,424 1,434,755 911,669 3,682,109 260,884 188,091 3.11
Silver Star Developments Ltd. 4,254,636 36,324,496 29,327,362 6,997,134 163,323,378 1,487,799 ( 3 , 206 , 824 ) ( 26 . 19 )
(See note 1.) (See note 2.)
Synnex Information Technologies, Inc. 2,728,806 21,862,243 14,452,278 7,409,965 130,229,306 1,744,809 968,870 21.94
(See note 1.) (See note 2.)
M i TAC U.S.A. Inc. 46,307 216,129 177,796 38,333 303,740 ( 15 , 588 ) ( 16 , 625 ) ( 12 . 48 )
M i TAC Japan Corp. 66,461 603,104 606,822 ( 3 , 719 ) 1,848,118 ( 28 , 238 ) 1,521 N / A
MS Hard w a re Service GmbH 1,112 369,529 302,455 67,073 157,296 14,897 17,835 N / A
M i TAC Benelux N.V. 58,872 150,133 67,629 82,504 205,408 ( 2 , 661 ) ( 5 , 876 ) ( 90 . 05 )
M i TA CU KL t d . 27,837 922,727 954,456 ( 31 , 729 ) 2,220,223 ( 105 , 175 ) ( 68 , 400 ) ( 136 . 80 )
ECLand Ltd. 5 5 0 5 0 0 0 0.00
M i TAC Pacific (H.K.) Ltd. 348 262,385 308,363 ( 45 , 978 ) 7,234,278 ( 2 , 730 ) ( 2 , 143 ) ( 214 . 29 )
M i TAC System (Asia) Ltd. 112,157 6,256 0 6,256 0 0 ( 3 , 958 ) ( 0 . 16 )
System Glory Int'l Ltd. 0 125,007 51,261 73,746 0 ( 26 , 302 ) ( 9 , 505 ) ( 9 , 504 , 825 )
Pacific China Corp. 0 2,083,616 2,124,972 ( 41 , 356 ) 0 ( 35 ) 0 0
M i TAC Star Service Ltd. 0 59,358 58,976 382 318,705 0 0 0
Synnex de Mexico, S.A. DE C.V. 0 1,262,959 1,282,247 ( 19 , 288 ) 1,518,802 ( 4 , 908 ) ( 8 , 295 ) ( 138 . 36 )
Synnex K.K. Japan 92,964 1,925,142 1,609,272 315,870 5,931,564 33,284 5,426 1.03
Synnex Information Technologies (China) Ltd. 191,142 460,964 238,267 222,697 291,090 15,173 13,238 N / A
Synnex Information Te c h n o l o g i e sU . K .L t d . 145,824 685,399 327,895 357,504 2,330,479 16,383 12,615 4.21
M i TAC Industrial Corp. 192,330 0 0 0 0 0 0 0.00
Synnex Canada Ltd. 1,778,471 3,941,338 2,783,611 1,157,727 17,065,689 145,787 96,016 96,016.01
Sennex Enterprises Ltd. 0 0 0 0 0 0 0 0.00
S o f t w a re Insights Ltd. 31,278 2,954 243 2,711 0 0 ( 17 , 074 ) ( 18 . 97 )
M i TAC Intern a t i o n a l ( S h e n z h e n 13,369 92,547 82,955 9,592 89,173 415 69 N / A
M i TAC Computer (KunShan) Co., Ltd. 344,055 2,310,171 2,050,253 259,918 1,730,397 ( 77 , 698 ) ( 82 , 778 ) N / A
M i TAC Service (ShangHai) Co., Ltd. 6,953 104,572 99,498 5,074 122,318 484 207 N / A
M i TAC Computer (ShunDe) Ltd. 1,591,687 8,938,124 7,225,670 1,712,454 38,577,320 30,865 16,556 N / A
111 Special Events of Re c o r d
112

MiTAC
International
Corporation
Annual Report
2002
Company Name C a p i t a l Total Assets Total Liabilities Net Va l u e Operating Revenues Operating Pro f i t P rofit/Loss (after tax) EPS (NT$) (after tax)
M i TAC Research (ShangHai) Ltd. 34,753 94,285 87,404 6,881 123,113 ( 17 , 247 ) ( 17 , 005 ) N / A
M i TAC Computers (ShangHai) Ltd. 214,214 334,706 217,693 117,013 877,140 ( 27 , 823 ) ( 80 , 947 ) N / A
M i TAC Precision Technology (ShunDe) Ltd. 348,018 1,955,558 1,617,386 338,171 2,891,540 19,048 29,946 N / A
So Fong Investment Co., Ltd. 260,000 499,451 190,238 309,213 129,011 110,626 110,140 4.24
My Outlet Corp.. 5,000 15,525 6,960 8,565 17,343 2,594 2,207 4.41
Hot Link Technology Ltd. 185,929 186,102 174 185,929 0 ( 10 ) ( 10 ) ( 0 . 00 )
Pacific Metal Developments Ltd. 347,530 357,956 10,426 347,530 594,069 ( 173 ) 241 0.02
S t a rt Well Technology Ltd. 344,055 411,128 67,073 344,055 0 0 0 0.00
Master China Ltd. 0 20,678 20,678 0 0 0 0 0
M i TAC Precision Technology (Kunshan) Co., Ltd. 15,645 319,418 325,601 ( 6 , 182 ) 10,676 ( 21 , 823 ) ( 21 , 827 ) N / A
E n t e rgris Precision Technology Corp. 130,000 132,915 739 132,176 0 ( 149 ) 2,175 13,000
Note 1. Includes a small amount of equity.
Note 2. Minus a small amount of equity.
Note 3. If the affiliated enterprise is a foreign company, relevant figures are quoted in NT Dollars and are calculated based on the exchange rate on the day they were re p o rted.
Note 4: Based on exchange rates at end of 2002
M o n t h - e n d
Av e r a g e
US Dollars: 34 . 753 34 . 563
British Pounds: 55 . 7 52 . 13
E u ro s : 36 . 39 32 . 83
Japanese Ye n : 0 . 293 0 . 2778
People's Republic of China Renminbi 4 . 2 4 . 18
113 Special Events of Re c o r d
114