Financial Statement ： Income Statement Provided by: AAEON Technology Inc. Financial year: Yearly Unit:NT$ thousand 2006/12/31 Accounting Title Sales Sales returns Sales discounts and allowances Amount 2005/12/31 % 1,515,918.00 Amount % 100.83 1,176,851.00 100.66 11,142.00 0.74 5,162.00 0.44 1,355.00 0.09 2,555.00 0.21 Sales 1,503,421.00 100 1,169,134.00 100 Operating income 1,503,421.00 100 1,169,134.00 100 Cost of sales 969,767.00 64.5 792,073.00 67.74 Operating costs 969,767.00 64.5 792,073.00 67.74 Gross profit (loss) from operations 533,654.00 35.49 377,061.00 32.25 Unrealized gains on intercompany transactions 36,349.00 2.41 27,914.00 2.38 Realized gains on intercompany transactions 27,914.00 1.85 24,327.00 2.08 Selling expense 98,016.00 6.51 82,892.00 7.09 General and administrative expenses 57,902.00 3.85 55,250.00 4.72 Research and development expenses 125,796.00 8.36 112,602.00 9.63 Operating expenses 281,714.00 18.73 250,744.00 21.44 Operating income (loss) 243,505.00 16.19 122,730.00 10.49 Interest income 1,949.00 0.12 1,232.00 0.1 Dividends 1,832.00 0.12 1,049.00 0.08 Investment income 1,832.00 0.12 1,049.00 0.08 221 0.01 68 0 3,619.00 0.24 4,056.00 0.34 21 0 0 0 3,703.00 0.24 3,557.00 0.3 908 0.06 0 0 Non-Operating Income Gains on disposal of fixed assets Gains on sale of investments Foreign exchange gains Rent income Revaluation gain on financial assets Miscellaneous income 8,396.00 0.55 3,830.00 0.32 20,649.00 1.37 13,792.00 1.17 2,531.00 0.16 5,555.00 0.47 32,827.00 2.18 32,756.00 2.8 32,827.00 2.18 32,756.00 2.8 4 0 92 0 205 0.01 140 0.01 0 0 218 0.01 Loss on inventory valuation and obsolescence 7,700.00 0.51 8,200.00 0.7 Impairment loss on assets 8,638.00 0.57 0 0 0 0 3,556.00 0.3 843 0.05 921 0.07 Non-operating revenues and gains Non-Operating Expenses Interest expense Losses from long-term equity investments under the equity method Investment loss Loss on disposal of fixed assets Loss on physical inventory Foreign exchange losses Revaluation loss on financial assets Revaluation loss on financial liabilities Miscellaneous disbursements Non-operating expenses and losses Income from continuing operations before income tax Income tax expense (benefit) Income from continuing operations Cumulative effect of changes in accounting principle Net income (loss) 1,834.00 0.12 2,299.00 0.19 54,582.00 3.63 53,737.00 4.59 209,572.00 13.93 82,785.00 7.08 34,441.00 2.29 2,096.00 0.17 175,131.00 11.64 80,689.00 6.9 4,229.00 0.28 0 0 179,360.00 11.93 80,689.00 6.9 2.36 0 1.07 0 2.29 0 1.03 0 Primary Earnings per Share Primary earnings per share Diluted earnings per share Diluted earnings per share