Chunghwa Telecom : Q4 2023 Consolidated Financial Statements (Fully IFRSs)

2022

2023

2022

2023

ASSETS

Notes

NT$

NT$

US$ (Note 6)

LIABILITIES AND EQUITY

Notes

NT$

NT$

US$ (Note 6)

CURRENT ASSETS

CURRENT LIABILITIES

Cash and cash equivalents

3, 7, 39

$

50,193

$

33,824

$

1,105

Short-term loans

22

$

722

$

585

$

19

Financial assets at fair value through profit or loss

3, 4, 8

4

1

-

Hedging financial liabilities

3, 21

-

-

-

Hedging financial assets

3, 21

13

-

-

Contract liabilities

3, 30, 39

13,390

14,088

460

Contract assets

3, 30

6,056

6,713

219

Trade notes and accounts payable

25

16,429

14,396

470

Trade notes and accounts receivable, net

3, 4, 10, 30

24,672

24,842

811

Payables to related parties

39

539

385

13

Receivables from related parties

39

75

78

3

Current tax liabilities

3, 32

6,999

6,613

216

Inventories

3, 4, 11

11,316

11,521

376

Lease liabilities

3, 4, 17, 35, 39

3,339

3,505

115

Prepayments

12

2,398

2,840

93

Other payables

26, 35

25,080

25,257

825

Other current monetary assets

13, 28, 35, 39

3,619

20,352

665

Provisions

3, 27

226

337

11

Incremental costs of obtaining contracts

3, 30

-

211

7

Current portion of long-term loans

22, 40

-

1,600

52

Other current assets

19, 20, 32, 40

3,555

2,822

92

Other current liabilities

1,016

984

32

Total current assets

101,901

103,204

3,371

Total current liabilities

67,740

67,750

2,213

NONCURRENT ASSETS

NONCURRENT LIABILITIES

Financial assets at fair value through profit or loss

3, 4, 8

1,020

1,036

34

Long-term loans

23, 40

1,600

-

-

Financial assets at fair value through other comprehensive income

3, 4, 9, 35

3,491

4,412

144

Bonds payable

24

30,477

30,483

996

Investments accounted for using equity method

3, 15, 35

6,949

8,252

269

Contract liabilities

3, 30

7,674

7,560

247

Contract assets

3, 30

3,137

3,769

123

Deferred income tax liabilities

3, 32

2,301

2,461

80

Property, plant and equipment

3, 4, 16, 35, 39, 40

291,528

292,338

9,547

Provisions

3, 27

173

485

16

Right-of-use assets

3, 4, 17, 39

11,103

11,238

367

Lease liabilities

3, 4, 17, 35, 39

7,334

7,470

244

Investment properties

3, 4, 18, 39

9,804

9,805

320

Customers' deposits

39

5,157

5,309

173

Intangible assets

3, 4, 19, 39

79,187

72,727

2,375

Net defined benefit liabilities

3, 4, 28

2,285

2,098

69

Deferred income tax assets

3, 32

2,197

2,099

69

Other noncurrent liabilities

6,726

7,406

241

Incremental costs of obtaining a contract

3, 30

980

939

31

Net defined benefit assets

3, 4, 28

5,266

5,963

195

Total noncurrent liabilities

63,727

63,272

2,066

Prepayments

12, 41

1,728

3,330

109

Other noncurrent assets

20, 40, 41

4,705

4,629

151

Total liabilities

131,467

131,022

4,279

Total noncurrent assets

421,095

420,537

13,734

EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE

PARENT

Common stocks

77,574

77,574

2,533

Additional paid-in capital

149,844

149,828

4,893

Retained earnings

Legal reserve

77,574

77,574

2,533

Special reserve

3,084

2,899

96

Unappropriated earnings

71,268

72,059

2,353

Total retained earnings

151,926

152,532

4,982

Others

(223)

353

12

Total equity attributable to stockholders of the parent

14, 29

379,121

380,287

12,420

NONCONTROLLING INTERESTS

14, 29

12,408

12,432

406

Total equity

391,529

392,719

12,826

TOTAL

$

522,996

$

523,741

$

17,105

TOTAL

$

522,996

$

523,741

$

17,105

2021

2022

2023

Notes

NT$

NT$

NT$

US$ (Note 6)

REVENUES

3, 30, 39, 42

$ 210,478

$ 216,739

$ 223,199

$ 7,289

OPERATING COSTS

3, 11, 28, 30,

31, 39

135,111

136,717

141,767

4,630

GROSS PROFIT

75,367

80,022

81,432

2,659

OPERATING EXPENSES

Marketing

20,944

22,819

23,599

771

General and administrative

5,293

6,580

6,801

222

Research and development

3,688

3,774

3,892

127

Expected credit loss

143

117

152

5

Total operating expenses

3, 10, 28, 31, 39

30,068

33,290

34,444

1,125

OTHER INCOME AND EXPENSES

16, 17, 18,

19, 31, 42

(369)

93

(635)

(20)

INCOME FROM OPERATIONS

44,930

46,825

46,353

1,514

NON-OPERATING INCOME AND

EXPENSES

Interest income

39, 42

95

249

618

20

Other income

9, 31, 39

378

369

382

12

Other gains and losses

15, 31, 39

461

(418)

(279)

(9)

Interest expense

17, 31, 39, 42

(218)

(263)

(319)

(10)

Share of profits of associates and joint

ventures accounted for using equity

method

15, 42

421

442

253

8

Total non-operating income and

expenses

1,137

379

655

21

INCOME BEFORE INCOME TAX

46,067

47,204

47,008

1,535

INCOME TAX EXPENSE

3, 32

9,020

9,335

8,947

292

NET INCOME

37,047

37,869

38,061

1,243

TOTAL OTHER COMPREHENSIVE

INCOME (LOSS)

Items that will not be reclassified to

profit or loss:

Remeasurements of defined benefit

pension plans

28

390

1,154

157

5

Unrealized gain or loss on

investments in equity instruments

at fair value through other

comprehensive income

3, 29, 37

(1,186)

(137)

619

20

Gain or loss on hedging instruments

subject to basis adjustment

3, 21

(10)

21

(13)

-

(Continued)

2021

2022

2023

Notes

NT$

NT$

NT$

US$ (Note 6)

The accompanying notes are an integral part of the consolidated financial statements.

(Concluded)

Equity Attributable to Stockholders of the Parent

Others

Unrealized Gain

or Loss on

Exchange

Financial Assets

Differences

at Fair Value

Total Equity

Retained Earnings

Arising from the

through Other

Attributable to

Additional

Unappropriated

Total Retained

Translation of the

Comprehensive

Gain or Loss on

Stockholders

Noncontrolling

Common Stocks

Paid-in Capital

Legal Reserve

Special Reserve

Earnings

Earnings

Foreign Operations

Income

Hedging Instruments

Total Others

of the Parent

Interests

Total Equity

NT$

NT$

NT$

NT$

NT$

NT$

NT$

NT$

NT$

NT$

NT$

NT$

NT$

BALANCE, JANUARY 1, 2021

$

77,574

$

149,790

$

77,574

$

2,676

$

67,574

$

147,824

$

(315 )

$

1,240

$

2

$

927

$

376,115

$

11,158

$

387,273

Appropriation of 2020 earnings

Cash dividends distributed by Chunghwa

-

-

-

-

(33,404 )

(33,404 )

-

-

-

-

(33,404 )

-

(33,404 )

Cash dividends distributed by subsidiaries

-

-

-

-

-

-

-

-

-

-

-

(896 )

(896 )

Unclaimed dividend

-

2

-

-

-

-

-

-

-

-

2

-

2

Change in additional paid-in capital from investments in associates and joint

ventures accounted for using equity method

-

1

-

-

-

-

-

-

-

-

1

-

1

Net income for the year ended December 31, 2021

-

-

-

-

35,616

35,616

-

-

-

-

35,616

1,431

37,047

Other comprehensive income (loss) for the year ended December 31, 2021

-

-

-

-

311

311

(77 )

(1,188 )

(10 )

(1,275 )

(964 )

(2 )

(966 )

Total comprehensive income (loss) for the year ended December 31, 2021

-

-

-

-

35,927

35,927

(77 )

(1,188 )

(10 )

(1,275 )

34,652

1,429

36,081

Disposal of investments in equity instruments at fair value through other

comprehensive income

-

-

-

-

60

60

-

(60 )

-

(60 )

-

-

-

Share-based payment transactions of subsidiaries

-

17

-

-

-

-

-

-

-

-

17

56

73

BALANCE, DECEMBER 31, 2021

77,574

149,810

77,574

2,676

70,157

150,407

(392 )

(8 )

(8 )

(408 )

377,383

11,747

389,130

Appropriation of 2021 earnings

Special reserve

-

-

-

408

(408 )

-

-

-

-

-

-

-

-

Cash dividends distributed by Chunghwa

-

-

-

-

(35,746 )

(35,746 )

-

-

-

-

(35,746 )

-

(35,746 )

Cash dividends distributed by subsidiaries

-

-

-

-

-

-

-

-

-

-

-

(1,053 )

(1,053 )

Unclaimed dividend

-

2

-

-

-

-

-

-

-

-

2

-

2

Change in additional paid-in capital for not proportionately participating in the

capital increase of subsidiaries

-

5

-

-

-

-

-

-

-

-

5

10

15

Net income for the year ended December 31, 2022

-

-

-

-

36,358

36,358

-

-

-

-

36,358

1,511

37,869

Other comprehensive income (loss) for the year ended December 31, 2022

-

-

-

-

907

907

281

(117 )

21

185

1,092

20

1,112

Total comprehensive income (loss) for the year ended December 31, 2022

-

-

-

-

37,265

37,265

281

(117 )

21

185

37,450

1,531

38,981

Disposal of investments in equity instruments at fair value through other

comprehensive income

-

-

-

-

-

-

-

-

-

-

-

-

-

Share-based payment transactions of subsidiaries

-

27

-

-

-

-

-

-

-

-

27

62

89

Net increase in noncontrolling interests

-

-

-

-

-

-

-

-

-

-

-

111

111

BALANCE, DECEMBER 31, 2022

77,574

149,844

77,574

3,084

71,268

151,926

(111 )

(125 )

13

(223 )

379,121

12,408

391,529

Appropriation of 2022 earnings

Special reserve

-

-

-

(185 )

185

-

-

-

-

-

-

-

-

Cash dividends distributed by Chunghwa

-

-

-

-

(36,476 )

(36,476 )

-

-

-

-

(36,476 )

-

(36,476 )

Cash dividends distributed by subsidiaries

-

-

-

-

-

-

-

-

-

-

-

(1,092 )

(1,092 )

Unclaimed dividend

-

2

-

-

-

-

-

-

-

-

2

-

2

Change in additional paid-in capital from investments in associates and joint

ventures accounted for using equity method

-

(26 )

-

-

-

-

-

-

-

-

(26 )

-

(26 )

Actual acquisition of interests in subsidiaries

-

-

-

-

-

-

-

-

-

-

-

-

-

Net income for the year ended December 31, 2023

-

-

-

-

36,958

36,958

-

-

-

-

36,958

1,103

38,061

Other comprehensive income (loss) for the year ended December 31, 2023

-

-

-

-

124

124

(57 )

646

(13 )

576

700

(31 )

669

Total comprehensive income (loss) for the year ended December 31, 2023

-

-

-

-

37,082

37,082

(57 )

646

(13 )

576

37,658

1,072

38,730

Share-based payment transactions of subsidiaries

-

8

-

-

-

-

-

-

-

-

8

25

33

Net increase in noncontrolling interests

-

-

-

-

-

-

-

-

-

-

-

19

19

BALANCE, DECEMBER 31, 2023

$

77,574

$

149,828

$

77,574

$

2,899

$

72,059

$

152,532

$

(168 )

$

521

$

-

$

353

$

380,287

$

12,432

$

392,719

BALANCE, DECEMBER 31, 2023 (IN MILLIONS OF US$ - Note 6)

$

2,533

$

4,893

$

2,533

$

96

$

2,353

$

4,982

$

(5 )

$

17

$

-

$

12

$

12,420

$

406

$

12,826

2021

2022

2023

NT$

NT$

NT$

US$ (Note 6)

CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax

$ 46,067

$ 47,204

$ 47,008

$

1,535

Adjustments for:

Depreciation

31,832

32,786

32,956

1,076

Amortization

6,569

6,643

6,699

219

Amortization of incremental costs of obtaining

contracts

815

841

856

28

Expected credit loss

143

117

152

5

Interest expense

218

263

319

10

Interest income

(95)

(249)

(618)

(20)

Dividend income

(154)

(157)

(167)

(5)

Compensation cost of share-based payment

transactions

19

16

8

-

Share of profits of associates and joint ventures

accounted for using equity method

(421)

(442)

(253)

(8)

Loss on disposal of property, plant and equipment

3

5

-

-

Gain on disposal of financial instruments

-

(1)

-

-

Loss (gain) on disposal of investments accounted for

using equity method

(4)

14

(6)

-

Provision for impairment loss and obsolescence of

inventory

207

34

23

1

Impairment loss on property, plant and equipment

-

-

299

10

Impairment loss on right-of-use assets

420

-

-

-

Impairment loss (reversal of impairment loss) on

investment properties

(83)

(107)

336

10

Impairment loss on intangible assets

29

9

-

-

Valuation loss (gain) on financial assets and

liabilities at fair value through profit or loss, net

(243)

206

98

3

Others

(133)

254

(60)

(2)

Changes in operating assets and liabilities:

Decrease (increase) in:

Contract assets

(336)

(1,031)

(1,291)

(42)

Trade notes and accounts receivable

(1,339)

(785)

(287)

(9)

Receivables from related parties

189

(34)

(3)

-

Inventories

875

(23)

(178)

(6)

Prepayments

392

2

(315)

(9)

Other current monetary assets

(386)

(165)

107

3

Other current assets

(630)

(576)

733

24

Incremental cost of obtaining contracts

(803)

(833)

(1,026)

(34)

Increase (decrease) in:

Contract liabilities

(1,652)

1,990

584

19

Trade notes and accounts payable

2,468

(1,631)

(2,033)

(66)

Payables to related parties

(255)

147

(154)

(5)

Other payables

248

782

562

18

Provisions

13

(28)

373

12

Other current liabilities

(12)

60

(14)

-

Net defined benefit plans

(756)

(724)

(728)

(24)

Cash generated from operations

83,205

84,587

83,980

2,743

Interests paid

(192)

(239)

(314)

(10)

Income taxes paid

(8,155)

(8,397)

(9,107)

(297)

Net cash provided by operating activities

74,858

75,951

74,559

2,436