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Subsidiaries (Tables)
12 Months Ended
Dec. 31, 2019
Disclosure of subsidiaries [Line Items]  
Detail Information of Subsidiaries

The detail information of the subsidiaries at the end of reporting period was as follows:

 

 

 

 

 

 

 

Percentage of Ownership

 

 

 

 

 

 

 

 

 

December 31

 

 

 

Name of Investor

 

Name of Investee

 

Main Businesses and Products

 

2018

 

 

2019

 

 

Note

Chunghwa Telecom Co., Ltd.

 

Senao International Co., Ltd. (“SENAO”)

 

Handset and peripherals retailer, sales of CHT mobile phone plans as an agent

 

 

28

 

 

 

28

 

 

a)

 

 

Light Era Development Co., Ltd. (“LED”)

 

Planning and development of real estate and intelligent buildings, and property management

 

 

100

 

 

 

100

 

 

 

 

 

Donghwa Telecom Co., Ltd. (“DHT”)

 

International private leased circuit, IP VPN service, and IP transit services

 

 

100

 

 

 

100

 

 

 

 

 

Chunghwa Telecom Singapore Pte., Ltd. (“CHTS”)

 

International private leased circuit, IP VPN service, and IP transit services

 

 

100

 

 

 

100

 

 

 

 

 

Chunghwa System Integration Co., Ltd. (“CHSI”)

 

Providing system integration services and telecommunications equipment

 

 

100

 

 

 

100

 

 

 

 

 

Chunghwa Investment Co., Ltd. (“CHI”)

 

Investment

 

 

89

 

 

 

89

 

 

 

 

 

CHIEF Telecom Inc. (“CHIEF”)

 

Network integration, internet data center (“IDC”), communications integration and cloud application services

 

 

57

 

 

 

57

 

 

b)

 

 

CHYP Multimedia Marketing & Communications Co., Ltd. (“CHYP”)

 

Digital information supply services and advertisement services

 

 

100

 

 

 

100

 

 

 

 

 

Prime Asia Investments Group Ltd. (B.V.I.) (“Prime Asia”)

 

Investment

 

 

100

 

 

 

100

 

 

 

 

 

Spring House Entertainment Tech. Inc. (“SHE”)

 

Software design services, internet contents production and play, and motion picture production and distribution

 

 

56

 

 

 

56

 

 

c)

 

 

Chunghwa Telecom Global, Inc. (“CHTG”)

 

International private leased circuit, internet services, and transit services

 

 

100

 

 

 

100

 

 

 

 

 

Chunghwa Telecom Vietnam Co., Ltd. (“CHTV”)

 

Intelligent energy saving solutions, international circuit, and information and communication technology (“ICT”) services

 

 

100

 

 

 

100

 

 

 

 

 

Smartfun Digital Co., Ltd. (“SFD”)

 

Providing diversified family education digital services

 

 

65

 

 

 

65

 

 

 

 

 

Chunghwa Telecom Japan Co., Ltd. (“CHTJ”)

 

International private leased circuit, IP VPN service, and IP transit services

 

 

100

 

 

 

100

 

 

 

 

 

Chunghwa Sochamp Technology Inc. (“CHST”)

 

Design, development and production of Automatic License Plate Recognition software and hardware

 

 

51

 

 

 

51

 

 

 

 

 

Honghwa International Co., Ltd. (“HHI”)

 

Telecommunications engineering, sales agent of mobile phone plan application and other business services, etc.

 

 

100

 

 

 

100

 

 

 

 

 

Chunghwa Leading Photonics Tech Co., Ltd. (“CLPT”)

 

Production and sale of electronic components and finished products

 

 

75

 

 

 

75

 

 

 

 

 

Chunghwa Telecom (Thailand) Co., Ltd. (“CHTT”)

 

International private leased circuit, IP VPN service, ICT and cloud VAS services

 

 

100

 

 

 

100

 

 

d)

(Continued)

 

 

 

 

 

 

 

Percentage of Ownership

 

 

 

 

 

 

 

 

 

December 31

 

 

 

Name of Investor

 

Name of Investee

 

Main Businesses and Products

 

2018

 

 

2019

 

 

Note

 

 

CHT Security Co., Ltd. (“CHTSC”)

 

Computing equipment installation, wholesale of computing and business machinery equipment and software, management consulting services, data processing services, digital information supply services and internet identify services

 

 

80

 

 

 

80

 

 

 

Senao International Co., Ltd.

 

Senao International (Samoa) Holding Ltd. (“SIS”)

 

International investment

 

 

100

 

 

 

100

 

 

 

 

 

Youth Co., Ltd. (“Youth”)

 

Sale of information and communication technologies products

 

 

93

 

 

 

93

 

 

e)

 

 

Aval Technologies Co., Ltd. (“Aval”)

 

Sale of information and communication technologies products

 

 

100

 

 

 

100

 

 

 

 

 

Senyoung Insurance Agent Co., Ltd. (“SENYOUNG”)

 

Property and liability insurance agency

 

 

100

 

 

 

100

 

 

 

Youth Co., Ltd.

 

ISPOT Co., Ltd. (“ISPOT”)

 

Sale of information and communication technologies products

 

 

100

 

 

 

100

 

 

 

 

 

Youyi Co., Ltd. (“Youyi”)

 

Maintenance of information and communication technologies products

 

 

100

 

 

 

100

 

 

 

Aval Technologies Co., Ltd. (“Aval”)

 

Wiin Technology Co., Ltd. (“Wiin”)

 

Sale of information and communication technologies products

 

 

 

 

 

100

 

 

f)

Senyoung Insurance Agent Co., Ltd.

 

Senaolife Insurance Agent Co., Ltd. (“Senaolife”)

 

Life insurance services

 

 

 

 

 

100

 

 

g)

Light Era Development Co., Ltd.

 

Taoyuan Asia Silicon Valley Innovation Co., Ltd. (“TASVI”)

 

Development of real estate

 

 

60

 

 

 

 

 

h)

CHIEF Telecom Inc.

 

Unigate Telecom Inc. (“Unigate”)

 

Telecommunications and internet service

 

 

100

 

 

 

100

 

 

 

 

 

Chief International Corp. (“CIC”)

 

Telecommunications and internet service

 

 

100

 

 

 

100

 

 

 

 

 

Shanghai Chief Telecom Co., Ltd. (“SCT”)

 

Telecommunications and internet service

 

 

49

 

 

 

49

 

 

 

Chunghwa System Integration Co., Ltd.

 

Concord Technology Co., Ltd. (“Concord”)

 

Investment

 

 

 

 

 

 

 

i)

Chunghwa Investment Co., Ltd.

 

Chunghwa Precision Test Tech. Co., Ltd. (“CHPT”)

 

Production and sale of semiconductor testing components and printed circuit board

 

 

34

 

 

 

34

 

 

j)

Chunghwa Precision Test Tech. Co., Ltd.

 

Chunghwa Precision Test Tech. USA Corporation (“CHPT (US)”)

 

Design and after-sale services of semiconductor testing components and printed circuit board

 

 

100

 

 

 

100

 

 

 

 

 

CHPT Japan Co., Ltd. (“CHPT (JP)”)

 

Related services of electronic parts, machinery processed products and printed circuit board

 

 

100

 

 

 

100

 

 

 

 

 

Chunghwa Precision Test Tech. International, Ltd. (“CHPT (International)”)

 

Wholesale and retail of electronic materials, and investment

 

 

100

 

 

 

100

 

 

 

Senao International (Samoa) Holding Ltd.

 

Senao International HK Limited (“SIHK”)

 

International investment

 

 

100

 

 

 

100

 

 

 

 

(Continued)

 

 

 

 

 

 

 

Percentage of Ownership

 

 

 

 

 

 

 

 

 

December 31

 

 

 

Name of Investor

 

Name of Investee

 

Main Businesses and Products

 

2018

 

 

2019

 

 

Note

Senao International HK Limited

 

Senao Trading (Fujian) Co., Ltd. (“STF”)

 

Sale of information and communication technologies products

 

 

100

 

 

 

 

 

k)

 

 

Senao International Trading (Shanghai) Co., Ltd. (“SITS”)

 

Sale of information and communication technologies products

 

 

100

 

 

 

100

 

 

 

 

 

Senao International Trading (Shanghai) Co., Ltd. (“SEITS”)

 

Maintenance of information and communication technologies products

 

 

 

 

 

 

 

l)

 

 

Senao International Trading (Jiangsu) Co., Ltd. (“SITJ”)

 

Sale of information and communication technologies products

 

 

100

 

 

 

 

 

m)

Prime Asia Investments Group Ltd. (B.V.I.)

 

Chunghwa Hsingta Co., Ltd. (“CHC”)

 

Investment

 

 

100

 

 

 

100

 

 

 

Chunghwa Hsingta Co., Ltd. (“CHC”)

 

Chunghwa Telecom (China) Co., Ltd. (“CTC”)

 

Integrated information and communication solution services for enterprise clients, and intelligent energy network service

 

 

100

 

 

 

100

 

 

 

 

 

Jiangsu Zhenhua Information Technology Company, LLC. (“JZIT”)

 

Providing intelligent energy saving solution and intelligent buildings services

 

 

 

 

 

 

 

n)

Chunghwa Precision Test Tech. International, Ltd.

 

Shanghai Taihua Electronic Technology Limited (“STET”)

 

Design of printed circuit board and related consultation service

 

 

100

 

 

 

100

 

 

 

 

 

Su Zhou Precision Test Tech. Ltd. (“SZPT”)

 

Assembly processed of circuit board, design of printed circuit board and related consultation service

 

 

 

 

 

100

 

 

o)

(Concluded)

 

a)

SENAO transferred its treasury stock to employees in June 2018 and the Company’s ownership interest in SENAO decreased to 28.18% as of December 31, 2018 and 2019.  As Chunghwa continues to control over half of the seats of the Board of Directors of SENAO (six out of eleven seats as of December 31, 2019) through the support of large beneficial stockholders, the accounts of SENAO are included in the consolidated financial statements.

 

b)

CHIEF issued new shares in March and November 2018, and March and November 2019, as its employees exercised their options.  In addition, Chunghwa and CHI disposed some shares of CHIEF in May 2018 before CHIEF traded its shares on the General Stock Market of the Taipei Exchange according to the local requirements.  Furthermore, Chunghwa and CHI did not participate in the capital increase of CHIEF in June 2018.  Therefore, the Company’s ownership interest in CHIEF decreased to 60.23% and 59.75% as of December 31, 2018 and 2019, respectively.

 

c)

SHE reduced 19.72% of its capital to offset accumulated deficits in December 2019 and the Company’s ownership interest in SHE remained the same.

 

d)

The Company increased its investment in CHTT proportionally in October 2019 and the Company’s ownership interest in CHTT remained the same.

 

e)

SENAO subscribed for all the shares in the capital increase of Youth in December 2018.  Therefore, the Company’s ownership interest in Youth increased from 89% to 93%.

 

f)

Aval invested 100% equity shares of Wiin Technology Co., Ltd. (“Wiin”) in September 2019.

 

g)

SENYOUNG invested 100% equity shares of Senaolife Insurance Agent Co., Ltd. (“Senaolife”) in November 2019.

 

h)

LED invested 60% equity shares of Taoyuan Asia Silicon Valley Innovation Co., Ltd. (“TASVI”) in March 2018.  TASVI completed its liquidation in September 2019.

 

i)

Concord completed its liquidation in January 2018.

 

j)

CHI disposed some shares of CHPT from April to August 2018.  Therefore, its ownership interest in CHPT decreased to 34.25% as of December 31, 2018 and 2019.  However, considering the absolute and relative size of ownership interest, and the dispersion of shares owned by the other stockholders, the management concluded that the Company has a sufficiently dominant voting interest to direct the relevant activities; hence, CHPT is deemed as a subsidiary of the Company.

 

k)

STF completed its liquidation in May 2019.

 

l)

SEITS completed its liquidation in March 2018.

 

m)

SITJ completed its liquidation in March 2019.

 

n)

JZIT completed its liquidation in December 2018.

 

o)

CHPT (International) invested 100% equity shares of Su Zhou Precision Test Tech. Ltd. (“SZPT”) in October 2019.

 

Detailed Information of Equity Transactions

The detailed information of the equity transactions for the years ended December 31, 2017, 2018 and 2019 was as follows:

 

 

Year Ended December 31

 

 

 

2017

 

 

 

CHI Did Not Participate in the Capital Increase of CHPT

 

 

SENAO Transferred its Treasury Stock

 

 

Chunghwa and CHI Disposed Some Shares of CHIEF

 

 

 

NT$

 

 

NT$

 

 

 

 

 

 

 

 

 

 

 

(In Millions)

 

Cash consideration received

   from (paid to)

   Noncontrolling interests

 

$

2,552

 

 

$

164

 

 

$

106

 

The proportionate share of

   the carrying amount of

   the net assets of the

   subsidiary transferred (to)

   from noncontrolling

   interests

 

 

(1,750

)

 

 

(137

)

 

 

(29

)

Differences arising from

   equity transactions

 

$

802

 

 

$

27

 

 

$

77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Line items for equity

   transaction adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital -

   difference between

   consideration received or

   paid and the carrying

   amount of the subsidiaries’

   net assets upon actual

   disposal or acquisition

 

$

 

 

$

 

 

$

77

 

Additional paid-in capital -

   arising from changes in

   equities of subsidiaries

 

$

802

 

 

$

27

 

 

$

 

 

 

 

Year Ended December 31

 

 

 

2018

 

 

 

SENAO not Proportionately participating in the Capital Increase of Youth

 

 

SENAO Transferred its Treasury Stock

 

 

CHI Disposed Some Shares of CHPT

 

 

Chunghwa and CHI Did Not Participate in the Capital Increase of CHIEF

 

 

Chunghwa and CHI Disposed Some Shares of CHIEF

 

 

Share-Based Payment of CHIEF

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

NT$

 

 

 

(In Millions)

 

Cash consideration received

   from noncontrolling interests

 

$

 

 

$

327

 

 

$

1,042

 

 

$

1,477

 

 

$

133

 

 

$

35

 

The proportionate share of

   the carrying amount of

   the net assets of the

   subsidiary transferred to

   noncontrolling interests

 

 

 

 

 

(272

)

 

 

(330

)

 

 

(700

)

 

 

(19

)

 

 

(24

)

Differences arising from

   equity transactions

 

$

 

 

$

55

 

 

$

712

 

 

$

777

 

 

$

114

 

 

$

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Line items for equity

   transaction adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital -

   difference between

   consideration received or

   paid and the carrying

   amount of the subsidiaries’

   net assets upon actual

   disposal or acquisition

 

$

 

 

$

 

 

$

712

 

 

$

 

 

$

114

 

 

$

 

Additional paid-in capital -

   arising from changes in

   equities of subsidiaries

 

$

 

 

$

55

 

 

$

 

 

$

777

 

 

$

 

 

$

11

 

 

 

 

Year Ended December 31

 

 

 

2019

 

 

 

CHIEF Share-Based Payment

 

 

 

NT$

 

 

 

(In Millions)

 

Cash consideration received

   from noncontrolling interests

 

$

19

 

The proportionate share of

   the carrying amount of

   the net assets of the

   subsidiary transferred to

   noncontrolling interests

 

 

(20

)

Differences arising from

   equity transactions

 

$

(1

)

 

 

 

 

 

Line items for equity

   transaction adjustments

 

 

 

 

Additional paid-in capital -

   arising from changes in

   equities of subsidiaries

 

$

(1

)

Less than wholly owned subsidiaries that have material noncontrolling interests [Member]  
Disclosure of subsidiaries [Line Items]  
Detail Information of Subsidiaries

The table below shows details of less than wholly owned subsidiaries of the Company that have material noncontrolling interests:

 

 

 

Place of Incorporation

 

Proportion of Ownership

Interests and Voting Rights

Held by Noncontrolling Interests

 

 

 

and Principal

 

December 31

 

Subsidiaries

 

Place of Business

 

2018

 

 

2019

 

SENAO

 

Taiwan

 

72%

 

 

72%

 

CHPT

 

Taiwan

 

66%

 

 

66%

 

 

 

 

Profit Allocated to

Noncontrolling Interests

 

 

Accumulated

Noncontrolling Interests

 

 

 

Year Ended December 31

 

 

December 31

 

 

 

2017

 

 

2018

 

 

2019

 

 

2018

 

 

2019

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

 

(In Millions)

 

 

 

 

 

 

 

 

 

SENAO

 

$

592

 

 

$

326

 

 

$

291

 

 

$

4,108

 

 

$

4,146

 

CHPT

 

$

431

 

 

$

477

 

 

$

414

 

 

 

4,022

 

 

 

4,217

 

Individually immaterial subsidiaries with

   noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,727

 

 

 

1,752

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

9,857

 

 

$

10,115

 

 

Summarized Financial Information Before Intercompany Eliminations The summarized financial information below represents amounts before intercompany eliminations. 

 

 

 

December 31

 

 

 

2018

 

 

2019

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Current assets

 

$

7,041

 

 

$

6,751

 

Noncurrent assets

 

$

2,527

 

 

$

3,173

 

Current liabilities

 

$

3,757

 

 

$

3,637

 

Noncurrent liabilities

 

$

164

 

 

$

590

 

Equity attributable to the parent

 

$

1,539

 

 

$

1,551

 

Equity attributable to noncontrolling interests

 

$

4,108

 

 

$

4,146

 

 

 

 

 

 

Year Ended December 31

 

 

 

2017

 

 

2018

 

 

2019

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

 

(In Millions)

 

 

 

 

 

Revenue and income

 

$

36,038

 

 

$

31,540

 

 

$

29,131

 

Costs and expenses

 

 

35,200

 

 

 

31,081

 

 

 

28,725

 

Profit for the year

 

$

838

 

 

$

459

 

 

$

406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to the parent

 

$

246

 

 

$

133

 

 

$

115

 

Profit attributable to noncontrolling interests

 

 

592

 

 

 

326

 

 

 

291

 

Profit for the year

 

$

838

 

 

$

459

 

 

$

406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) attributable

   to the parent

 

$

3

 

 

$

(2

)

 

$

(7

)

Other comprehensive income (loss) attributable to

   noncontrolling interests

 

 

(17

)

 

 

(10

)

 

 

22

 

Other comprehensive income (loss) for the year

 

$

(14

)

 

$

(12

)

 

$

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income attributable to the

   parent

 

$

249

 

 

$

131

 

 

$

108

 

Total comprehensive income attributable to

   noncontrolling interests

 

 

575

 

 

 

316

 

 

 

313

 

Total comprehensive income for the year

 

$

824

 

 

$

447

 

 

$

421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flow from operating activities

 

$

1,081

 

 

$

696

 

 

$

538

 

Net cash flow from investing activities

 

 

(57

)

 

 

(13

)

 

 

235

 

Net cash flow from financing activities

 

 

(897

)

 

 

(491

)

 

 

(718

)

Effect of exchange rate changes on cash and cash

   equivalents

 

 

(2

)

 

 

1

 

 

 

 

Net cash inflow

 

$

125

 

 

$

193

 

 

$

55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid to noncontrolling interests

 

$

703

 

 

$

587

 

 

$

269

 

The summarized financial information below represents amounts before intercompany eliminations.

 

 

 

December 31

 

 

 

2018

 

 

2019

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Current assets

 

$

4,417

 

 

$

3,710

 

Noncurrent assets

 

$

2,779

 

 

$

4,044

 

Current liabilities

 

$

1,076

 

 

$

1,316

 

Noncurrent liabilities

 

$

1

 

 

$

22

 

Equity attributable to CHI

 

$

2,097

 

 

$

2,199

 

Equity attributable to noncontrolling interests

 

$

4,022

 

 

$

4,217

 

 

 

 

 

Year Ended December 31

 

 

 

2017

 

 

2018

 

 

2019

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

 

(In Millions)

 

 

 

 

 

Revenue and income

 

$

3,127

 

 

$

3,299

 

 

$

3,404

 

Costs and expenses

 

 

2,402

 

 

 

2,549

 

 

 

2,775

 

Profit for the year

 

$

725

 

 

$

750

 

 

$

629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to CHI

 

$

294

 

 

$

273

 

 

$

215

 

Profit attributable to noncontrolling interests

 

 

431

 

 

 

477

 

 

 

414

 

Profit for the year

 

$

725

 

 

$

750

 

 

$

629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss attributable

   to CHI

 

$

(1

)

 

$

 

 

$

(1

)

Other comprehensive loss attributable to

   noncontrolling interests

 

 

(2

)

 

 

 

 

 

(2

)

Other comprehensive loss for the year

 

$

(3

)

 

$

 

 

$

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income attributable

   to CHI

 

$

293

 

 

$

273

 

 

$

214

 

Total comprehensive income attributable to

   noncontrolling interests

 

 

429

 

 

 

477

 

 

 

412

 

Total comprehensive income for the year

 

$

722

 

 

$

750

 

 

$

626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flow from operating activities

 

$

1,052

 

 

$

862

 

 

$

507

 

Net cash flow from investing activities

 

 

(639

)

 

 

(733

)

 

 

(1,426

)

Net cash flow from financing activities

 

 

2,306

 

 

 

(328

)

 

 

(349

)

Effect of exchange rate changes on cash and cash

   equivalents

 

 

(4

)

 

 

1

 

 

 

(5

)

Net cash inflow (outflow)

 

$

2,715

 

 

$

(198

)

 

$

(1,273

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid to noncontrolling interests

 

$

146

 

 

$

210

 

 

$

216