1934 Act Registration No. 1-31731
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Dated April 30, 2012
Chunghwa Telecom Co., Ltd.
(Translation of Registrants Name into English)
21-3 Hsinyi Road Sec. 1,
Taipei, Taiwan, 100 R.O.C.
(Address of Principal Executive Office)
(Indicate by check mark whether the registrant files or will file annual reports under cover of form 20-F or Form 40-F.)
Form 20-F x Form 40-F o
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes o No x
(If Yes is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable )
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant Chunghwa Telecom Co., Ltd. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: 2012/04/30 |
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Chunghwa Telecom Co., Ltd. | |
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By: |
/s/ Shu Yeh |
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Name: |
Shu Yeh |
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Title: Senior Vice President CFO |
Exhibit
Exhibit |
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Description |
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1 |
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Press Release to Report Impact on Chunghwa Telecoms Financials after the adoption of IFRS |
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2 |
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Press Release to Report Operating Results for the first quarter of 2012 |
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3 |
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Financial Statements for the Three Months Ended March 31, 2012 and 2011 and Independent Accountants Review Report (Stand Alone) |
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4 |
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Consolidated Financial Statements for the Three Months Ended March 31, 2012 and 2011 and Independent Accountants Review Report |
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5 |
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GAAP Reconciliations of Consolidated Financial Statements for the Three Months Ended March 31, 2012 and 2011 |
Exhibit 1
Impact on Chunghwa Telecoms Financials after the adoption of IFRS
Taipei, Taiwan, R.O.C. April 29, 2012 - Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) (Chunghwa or the Company) today announced a material information that the board of directors have approved the impact analysis of its consolidated financial statements due to the transition from accounting principles generally accepted in the Republic of China (ROC GAAP) to International Financial Reporting Standards (IFRS). As a company listed on the Taiwan Stock Exchange (the TSE), Chunghwa is required under ROC laws to prepare its financial statements in accordance with IFRS starting from fiscal year 2013. The TSE further requires the Company to disclose its analysis of certain line items that would have a material difference as a result of the change in accounting principles as of January 1, 2012 and as of March 31, 2012.
As of January 1, 2012, the major differences in Chunghwas consolidated financials due to the transition from ROC GAAP to IFRS include a decrease of NT$18,050,922 thousand in retained earnings, an increase of NT$20,621,248 thousand in paid-in capital, a decrease of NT$5,762,753 thousand in unrealized revaluation increment, a decrease of NT$3,200,558 thousand in shareholders equity (representing a decrease of 0.86%) and a decrease of NT$0.41 in shareholders equity per share.
The change in accounting principcles resulted in a material difference in the above line items due to the following reasons.
a. Chunghwa chose to apply the optional exemption in IFRS 1. The management measured land at its revalued amount which was determined under ROC GAAP as deemed costs. On January 1, 2012, Chunghwa Telecom reclassified the unrealized revaluation increment (classified as shareholders equity) to retained earnings and the amount was NT$5,762,753 thousand. Total shareholders equity was not changed.
b. Based on IAS 12 Income Taxes, the income tax adjustments as a result of the transition to IFRS as of January 1, 2012 resulted in an increase of retained earnings by NT$587,418 thousand.
c. Chunghwa chose to recognize all cumulative actuarial gains and losses as retained earnings as of January 1, 2012 and should carry out actuarial valuation on defined benefit obligation based on IAS 19 Employee Benefits. As a result, retained earnings were decreased by NT$1,512,034 thousand as of January 1, 2012.
In addition, the pension obligations of employees upon privatization in 2005 were calculated based on the actuarial report under IAS 19. The Impact, which amounted to
$20,648,078 thousand, shall be retroactively deducted from the retained earnings and transferred to additional paid-in capital- privatization, while the total shareholders equity remained unchanged.
d. The service income from providing fixed line connection service was entirely recorded by Chunghwa prior to its privatization. The Company retrospectively deferred the recognition of the service income based on the time the service was performed, therefore resulting a decrease of NT$1,925,816 thousand in retained earnings.
e. For the construction contracts, Chunghwa did not recognize the income or loss based on the percentage-of-completion method of IFRS, it reversed the recognized revenue in prior years by decreasing retained earnings of NT$347,525 thousand.
In addition to the major difference as of January 1, 2012, the adoption of IFRS to the consolidated financial statements for the three months ended March 31, 2012 increased Chunghwas consolidated net income by NT$106,963 thousand, which was mainly due to the increase in revenue from providing fixed line connection in the amount of NT$186,543 thousand, a decrease in recognized gain in construction contract of NT$55,325 thousand, and an increase in income tax expense of NT$31,933 thousand. Please refer to Chunghwas consolidated financial statements for the three months ended March 31, 2012 for details.
NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. These statements constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates and similar statements. Statements that are not historical facts, including statements about Chunghwas beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to the risks outlined in Chunghwas filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F, in each case as amended. The forward-looking statements in this press release reflect the current belief of Chunghwa as of the date of this press release and Chunghwa undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date, except as required under applicable law.
This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of
securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
About Chunghwa Telecom
Chunghwa Telecom (TAIEX 2412, NYSE: CHT) is Taiwans leading telecom service provider. The Company provides fixed-line, mobile and Internet and data services to residential and business customers in Taiwan.
Contact: Fu-fu Shen
Phone: +886 2 2344 5488
Email: chtir@cht.com.tw
Exhibit 2
Chunghwa Telecom Reports Consolidated Operating Results
for the First Quarter of 2012
Taipei, Taiwan, R.O.C. April 30, 2012 - Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) (Chunghwa or the Company) today reported its operating results for the first quarter of 2012. All figures were prepared in accordance with generally accepted accounting principles of the Republic of China (ROC GAAP) on a consolidated basis.
(Comparisons, unless otherwise stated, are to the prior year period)
First Quarter 2012 Financial Highlights
· Total consolidated revenue increased by 5.6% to NT$55.4 billion
· Mobile communications revenue increased by 12.0% to NT$25.6 billion; mobile value-added services (VAS) revenue increased by 29.2% to NT$4.6 billion
· Internet revenue increased by 1.7% to NT$6.2 billion; internet VAS revenue increased by 1.6% to NT$0.6 billion
· Domestic fixed communications revenue decreased by 1.1% to NT$19.0 billion
· International fixed communications revenue decreased by 4.0% to NT$3.6 billion
· Total operating costs and expenses increased by 14.4% to NT$44.1 billion
· Net income totaled NT$9.5 billion, representing a 19.8% decrease
· Basic earnings per share (EPS) decreased by 18.7% to NT$1.22
Dr. Shyue-Ching Lu, Chairman and Chief Executive Officer, said, We began 2012 with a solid market leadership for all of our major business segments. For the first quarter, our growth was driven primarily by mobile business such as value-added services, increase of mobile internet subscribers, and innovative mobile service marketing. In addition, our MOD/IPTV is also gaining traction due to both increased ARPU and market share. We have executed well against the interim set-backs from the various business and regulatory environment. We will continue to poise Chunghwa Telecom for growth and share gains as markets stabilize. Our strong market leadership, quality product portfolio, strong cash generation and healthy balance sheet give us the confidence in delivering a resilient overall performance.
Chunghwas total consolidated revenue for the first quarter of 2012 increased by 5.6% year-over-year to NT$55.4 billion, of which 34.3% was from the domestic fixed business, 46.2% was from the mobile business, 11.2% was from the internet business, 6.6% was from the
international fixed business, and the remainder was from others. The revenue growth was primarily due to the increase in mobile VAS revenue and handset sales. However, this increase was offset by the decline in mobile voice revenue. Additionally, the decline in Domestic Long Distance (DLD) and broadband revenue from the tariff cuts also partially offset the overall growth.
Domestic fixed revenue totaled NT$19.0 billion, representing a decrease of 1.1% year-over-year. Of which, local revenues increased by 1.9% year-over-year, mainly due to the shift of pricing right for fixed to mobile calls. The 32.2% decline in DLD revenues was due to the mandatory tariff cut starting 2012. However, the tariff cut stimulated the overall traffic growth, resulting in less revenue impact than previously anticipated.
Broadband access revenue, including ADSL and Fiber to the x (FTTx), decreased by 9.2% year-over-year to NT$4.7 billion, primarily due to the Companys voluntary broadband tariff reductions, as well as the mandated the National Communication Committee (NCC) tariff reduction.
Total revenue for the mobile business amounted to NT$25.6 billion for the first quarter 2012, representing a year-on-year increase of 12.0%, mainly due to the 29.2% growth in mobile VAS revenue and 53.7% increase in handset sales from smartphone promotions, which offset the decline in mobile voice revenue. The decline in mobile voice revenue resulted primarily from the fixed to mobile calls pricing right shift, the marketing campaign and the NCC mandated tariff reduction.
Chunghwas internet business revenue grew to NT$6.2 billion in the first quarter of 2012, representing an increase of 1.7% year-over-year, due to the higher revenue for ICT business and internet VAS, offsetting the HiNet revenue decline from the tariff cut along with broadband access services.
International fixed line revenue decreased by 4.0% to NT$3.6 billion, primarily due to the decrease in international long distance service revenue as a result of market competition.
Other revenue increased by 81.6%, primarily due to construction revenue from the property development subsidiary, Light Era.
Costs and Expenses
Total operating costs and expenses for the first quarter of 2012 amounted to NT$44.1 billion, an increase of 14.4% compared to the same period of 2011. This increase was mainly consists of 69.8% from cost of handset sold, 14.6% from corporate solution and ICT project costs and 6.1% from maintenance and material expenses for broadband service promotion.
Income Tax
Income tax expense for the first quarter of 2012 was NT$2.0 billion, representing a 15.7% decrease compared to NT$2.3 billion for the same period of 2011. This decrease was due to lower income from operations.
EBITDA and Net Income
EBITDA for the first quarter of 2012 decreased by 11.8% to NT$19.4 billion, while income from operations decreased by 18.7% to NT$11.3 billion. The decreases in both EBITDA and income from operations reflected higher operating costs and expenses.
The EBITDA margin for the first quarter of 2012 was 35.0% compared to 41.9% in the same period of 2011, and the operating margin was 20.4%, compared to 26.6% in the previous year. As a result, net income decreased by 19.8% year-over-year to NT$9.5 billion, and EPS decreased by 18.7% year-over-year to NT$1.22.
Capital Expenditure (Capex)
Total capex for the first quarter of 2012 amounted to NT$6.7 billion, representing a 52.9% year-over-year increase. Of the NT$6.7 billion capex figure, 49.8% was used for the domestic fixed communications business, 29.7% was for the mobile business, 11.9% was for the internet business, 7.2% was for the international fixed communications business, and the remainder was for other uses.
Cash Flow
Cash flow from operating activities for the first quarter of 2012 increased by 34.9% year-over-year to NT$13.1 billion. The increase was mainly because starting 2011, the company adjusted its billing period for monthly fees one month later to be in line with that for communication charges, hence account receivable for the first quarter 2011 increased accordingly.
Business and Operational Highlights
Broadband/HiNet
· As of the end of the first quarter 2012, FTTx subscribers had reached 2.5 million, accounting for 55.8% of total broadband users. This year, the Company is continuing its execution on FTTx migration as well as to increase the total broadband subscriber base. Although the tariff reductions reduced the revenue, we will continue migrate customers to higher speed services and provide high definition programs, such as broadcasting of the coming Olympic Games, to accelerate the revenue recovery.
· HiNet broadband subscribers totaled 3.7 million at the end of March 2012, a year-over-year rise of 3.2%.
Mobile
· As of the end of March 2012, Chunghwa had 10.1 million mobile subscribers, an increase of 3.1% compared to 9.8 million a year ago.
· As of the end of March 2012, Chunghwa had 1.8 million mobile internet subscribers compared to 1.5 million subscribers as of the end of 2011, demonstrating the strong growth momentum that the Company has achieved. As a result, Chunghwa enhanced its target number for mobile internet subscriber to 2.35 million by the end of 2012.
· Mobile VAS revenue for the first quarter 2012 rose 29.2% year-over-year to NT$4.6 billion, with mobile internet revenue increasing 58.7% year-over-year, representing the largest contributor to VAS revenue.
Domestic/International Fixed-line
· As of the end of March 2012, the Company maintained its leading fixed-line market position, with fixed-line subscribers totaling 12.0 million.
· Until now, Chunghwas Multimedia-on-demand (MOD) subscriber number had reached 1.1 million, and is still increasing, indicating that the enriched content is satisfying customer demands. MOD ARPU also increased significantly to NT$145 in the first quarter, representing a growth of 15.7% compared to the same period of 2011.
Financial Statements
Financial statements and additional operational data can be found on the Companys website at www.cht.com.tw/ir/filedownload.
NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. These statements constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates and similar statements. Statements that are not historical facts, including statements about Chunghwas beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to the risks outlined in
Chunghwas filings with the U.S. Securities and Exchange Commission on Forms F-1, F-3, 6-K and 20-F, in each case as amended. The forward-looking statements in this press release reflect the current belief of Chunghwa as of the date of this press release and Chunghwa undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date, except as required under applicable law.
This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
SPECIAL NOTE REGARDING NON-GAAP FINANCIAL MEASURES
A body of generally accepted accounting principles is commonly referred to as GAAP. A non-GAAP financial measure is generally defined by the SEC as one that purports to measure historical or future financial performance, financial position or cash flows but excludes or includes amounts that would not be so adjusted in the most comparable U.S. GAAP measure. We disclose in this report certain non-GAAP financial measures, including EBITDA. EBITDA for any period is defined as consolidated net income (loss) excluding (i) depreciation and amortization, (ii) total net comprehensive financing cost (which is comprised of net interest expense, exchange gain or loss, monetary position gain or loss and other financing costs and derivative transactions), (iii) other expenses, net, (iv) income tax, (v) cumulative effect of change in accounting principle, net of tax and (vi) (income) loss from discontinued operations.
In managing our business we rely on EBITDA as a means of assessing our operating performance. We believe that EBITDA can be useful to facilitate comparisons of operating performance between periods and with other companies because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) income tax (iv) other expenses or income not related to the operation of the business.
EBITDA is not a measure of financial performance under U.S. GAAP or ROC GAAP. EBITDA should not be considered as an alternate measure of net income or operating income, as determined on a consolidated basis using amounts derived from statements of operations prepared in accordance with U.S. GAAP or ROC GAAP, as an indicator of operating performance or as cash flows from operating activity or as a measure of liquidity. EBITDA has material limitations that impair its value as a measure of a companys overall profitability since it does not address certain ongoing costs of our business that could significantly
affect profitability such as financial expenses and income taxes, depreciation, pension plan reserves or capital expenditures and associated charges. These non-GAAP measures are not in accordance with or an alternative for GAAP financial data, the non-GAAP results should be reviewed together with the GAAP results and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies.
About Chunghwa Telecom
Chunghwa Telecom (TAIEX 2412, NYSE: CHT) is Taiwans leading telecom service provider. The Company provides fixed-line, mobile and internet and data services to residential and business customers in Taiwan.
Contact: |
Fu-fu Shen |
Phone: |
+886 2 2344 5488 |
Email: |
chtir@cht.com.tw |
Exhibit 3
Chunghwa Telecom Co., Ltd.
Financial Statements for the
Three Months Ended March 31, 2012 and 2011 and
Independent Accountants Review Report
INDEPENDENT ACCOUNTANTS REVIEW REPORT
The Board of Directors and Stockholders
Chunghwa Telecom Co., Ltd.
We have reviewed the accompanying balance sheets of Chunghwa Telecom Co., Ltd. as of March 31, 2012 and 2011, and the related statements of income and cash flows for the three months then ended. These financial statements are the responsibility of the Companys management. Our responsibility is to issue a report on these financial statements based on our review.
Except for the matters described in the next paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 36, Review of Financial Statements, issued by the Auditing Committee of the Accounting Research and Development Foundation of the Republic of China. A review consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the Republic of China, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an audit opinion.
As discussed in Note 12 to the financial statements, we did not review all financial statements of equity-accounted investments, the investments in which are reflected in the accompanying financial statements using the equity method of accounting. The aggregate carrying values of the equity method investees were NT$11,740,683 thousand and NT$9,139,860 thousand as of March 31, 2012 and 2011, respectively, and the equity in earnings were NT$424,583 thousand and NT$64,119 thousand for the three months ended March 31, 2012 and 2011, respectively.
Based on our reviews, except for the effects of such adjustments, if any, as might have been determined to be necessary had we reviewed financial statements of and equity method investees referred to in the preceding paragraph, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with the Securities and Exchange Act, the Guidelines Governing the Preparation of Financial Reports by Securities Issuers, requirements of the Business Accounting Law and Guidelines Governing Business Accounting relevant to financial accounting standards, and accounting principles generally accepted in the Republic of China.
We have also reviewed the consolidated financial statements of the Company and its subsidiaries as of and for the three months ended March 31, 2012 and 2011, and have issued a qualified review report.
/s/ DELOITTE & TOUCHE |
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Deloitte & Touche |
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Taipei, Taiwan |
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The Republic of China |
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April 27, 2012 |
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Notice to Readers
The accompanying financial statements are intended only to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such financial statements are those generally accepted and applied in the Republic of China.
For the convenience of readers, the accountants review report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language accountants review report and financial statements shall prevail.
CHUNGHWA TELECOM CO., LTD.
BALANCE SHEETS
MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars, Except Par Value Data)
(Reviewed, Not Audited)
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2012 |
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2011 |
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Amount |
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% |
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Amount |
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% |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents (Notes 2 and 4) |
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$ |
63,584,152 |
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15 |
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$ |
69,829,156 |
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16 |
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Financial assets at fair value through profit or loss (Notes 2 and 5) |
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18,674 |
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|
|
645 |
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Available-for-sale financial assets (Notes 2 and 6) |
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2,152,235 |
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|
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1,023,820 |
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Held-to-maturity financial assets (Notes 2 and 7) |
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500,266 |
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|
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2,062,915 |
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1 |
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Trade notes and accounts receivable, net of allowance for doubtful accounts of $2,373,532 thousand in 2012 and $2,503,340 thousand in 2011 (Notes 2 and 8) |
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20,254,838 |
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5 |
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17,945,843 |
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4 |
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Receivables from related parties (Note 23) |
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462,530 |
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|
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481,313 |
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Other monetary assets (Note 9) |
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1,493,772 |
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|
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2,552,532 |
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1 |
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Inventories (Notes 2 and 10) |
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1,015,404 |
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1,108,945 |
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Deferred income tax assets (Notes 2 and 20) |
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45,227 |
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81,317 |
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Other current assets (Notes 11 and 23) |
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7,008,989 |
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2 |
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5,722,469 |
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1 |
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Total current assets |
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96,536,087 |
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22 |
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100,808,955 |
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23 |
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LONG-TERM INVESTMENTS |
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Investments accounted for using equity method (Notes 2 and 12) |
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13,320,965 |
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3 |
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10,582,047 |
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3 |
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Financial assets carried at cost (Notes 2 and 13) |
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2,244,593 |
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1 |
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2,315,474 |
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1 |
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Available-for-sale financial assets (Notes 2 and 6) |
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3,137,103 |
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1 |
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Held-to-maturity financial assets (Notes 2 and 7) |
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14,590,889 |
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3 |
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9,973,059 |
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2 |
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Other monetary assets (Notes 14 and 24) |
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1,000,000 |
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1,000,000 |
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Total long-term investments |
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34,293,550 |
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8 |
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23,870,580 |
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6 |
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PROPERTY, PLANT AND EQUIPMENT (Notes 2, 15 and 23) |
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|
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Cost |
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|
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|
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Land |
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101,381,145 |
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23 |
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101,401,329 |
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23 |
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Land improvements |
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1,572,448 |
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|
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1,551,988 |
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|
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Buildings |
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65,958,801 |
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15 |
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65,726,304 |
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15 |
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Computer equipment |
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14,507,175 |
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3 |
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15,316,104 |
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4 |
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Telecommunications equipment |
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657,250,619 |
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150 |
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655,840,449 |
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151 |
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Transportation equipment |
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2,582,271 |
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1 |
|
2,257,745 |
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1 |
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Miscellaneous equipment |
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6,573,254 |
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2 |
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6,883,622 |
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2 |
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Total cost |
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849,825,713 |
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194 |
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848,977,541 |
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196 |
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Revaluation increment on land |
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5,762,418 |
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1 |
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5,762,611 |
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1 |
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|
|
855,588,131 |
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195 |
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854,740,152 |
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197 |
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Less: Accumulated depreciation |
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574,043,278 |
|
131 |
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569,183,573 |
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131 |
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|
|
281,544,853 |
|
64 |
|
285,556,579 |
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66 |
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Construction in progress and advances related to acquisitions of equipment |
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13,872,626 |
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3 |
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11,037,605 |
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2 |
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|
|
|
|
|
|
|
|
|
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Property, plant and equipment, net |
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295,417,479 |
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67 |
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296,594,184 |
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68 |
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|
|
|
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INTANGIBLE ASSETS (Note 2) |
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3G concession |
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5,053,109 |
|
1 |
|
5,801,718 |
|
1 |
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Others |
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713,423 |
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|
|
426,327 |
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|
|
|
|
|
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|
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Total intangible assets |
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5,766,532 |
|
1 |
|
6,228,045 |
|
1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
OTHER ASSETS |
|
|
|
|
|
|
|
|
| ||
Idle assets (Note 2) |
|
878,896 |
|
|
|
878,896 |
|
|
| ||
Refundable deposits |
|
1,538,286 |
|
1 |
|
1,300,964 |
|
1 |
| ||
Deferred income tax assets (Notes 2 and 20) |
|
263,212 |
|
|
|
404,925 |
|
|
| ||
Others (Note 23) |
|
4,072,976 |
|
1 |
|
4,457,603 |
|
1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total other assets |
|
6,753,370 |
|
2 |
|
7,042,388 |
|
2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
TOTAL |
|
$ |
438,767,018 |
|
100 |
|
$ |
434,544,152 |
|
100 |
|
|
|
|
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| ||
Financial liabilities at fair value through profit or loss (Notes 2 and 5) |
|
$ |
517 |
|
|
|
$ |
6,348 |
|
|
|
Trade notes and accounts payable |
|
9,566,452 |
|
2 |
|
6,904,997 |
|
2 |
| ||
Payables to related parties (Note 23) |
|
2,465,060 |
|
1 |
|
1,598,191 |
|
|
| ||
Income tax payable (Notes 2 and 20) |
|
5,154,190 |
|
1 |
|
6,676,776 |
|
2 |
| ||
Accrued expenses (Note 16) |
|
13,935,771 |
|
3 |
|
14,904,629 |
|
3 |
| ||
Other current liabilities (Note 17) |
|
19,555,843 |
|
4 |
|
16,505,403 |
|
4 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total current liabilities |
|
50,677,833 |
|
11 |
|
46,596,344 |
|
11 |
| ||
|
|
|
|
|
|
|
|
|
| ||
DEFERRED INCOME |
|
2,589,481 |
|
1 |
|
2,587,891 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
RESERVE FOR LAND VALUE INCREMENTAL TAX (Note 15) |
|
94,986 |
|
|
|
94,986 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
OTHER LIABILITIES |
|
|
|
|
|
|
|
|
| ||
Accrued pension liabilities (Notes 2 and 22) |
|
1,485,827 |
|
1 |
|
1,326,968 |
|
|
| ||
Customers deposits (Note 23) |
|
4,901,460 |
|
1 |
|
5,788,928 |
|
2 |
| ||
Deferred credit - profit on intercompany transactions (Note 23) |
|
462,432 |
|
|
|
1,426,743 |
|
|
| ||
Others |
|
256,024 |
|
|
|
334,434 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Total other liabilities |
|
7,105,743 |
|
2 |
|
8,877,073 |
|
2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total liabilities |
|
60,468,043 |
|
14 |
|
58,156,294 |
|
13 |
| ||
|
|
|
|
|
|
|
|
|
| ||
STOCKHOLDERS EQUITY (Notes 2, 6, 15 and 18) |
|
|
|
|
|
|
|
|
| ||
Common stock - $10 par value; Authorized: 12,000,000 thousand shares Issued: 7,757,447 thousand shares |
|
77,574,465 |
|
18 |
|
77,574,465 |
|
18 |
| ||
Additional paid-in capital |
|
|
|
|
|
|
|
|
| ||
Capital surplus |
|
169,496,289 |
|
39 |
|
169,496,289 |
|
39 |
| ||
Donated capital |
|
13,170 |
|
|
|
13,170 |
|
|
| ||
Equity in additional paid-in capital reported by equity-method investees |
|
28,872 |
|
|
|
10,675 |
|
|
| ||
Total additional paid-in capital |
|
169,538,331 |
|
39 |
|
169,520,134 |
|
39 |
| ||
Retained earnings: |
|
|
|
|
|
|
|
|
| ||
Legal reserve |
|
66,122,145 |
|
15 |
|
61,361,255 |
|
14 |
| ||
Special reserve |
|
2,675,894 |
|
|
|
2,675,894 |
|
1 |
| ||
Unappropriated earnings |
|
56,558,333 |
|
13 |
|
59,450,673 |
|
14 |
| ||
Total retained earnings |
|
125,356,372 |
|
28 |
|
123,487,822 |
|
29 |
| ||
Other adjustments |
|
|
|
|
|
|
|
|
| ||
Cumulative translation adjustments |
|
(73,603 |
) |
|
|
(87,526 |
) |
|
| ||
Unrecognized net loss of pension |
|
(38,106 |
) |
|
|
(40,182 |
) |
|
| ||
Unrealized gain on financial instruments |
|
178,880 |
|
|
|
167,997 |
|
|
| ||
Unrealized revaluation increment |
|
5,762,636 |
|
1 |
|
5,765,148 |
|
1 |
| ||
Total other adjustments |
|
5,829,807 |
|
1 |
|
5,805,437 |
|
1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total stockholders equity |
|
378,298,975 |
|
86 |
|
376,387,858 |
|
87 |
| ||
|
|
|
|
|
|
|
|
|
| ||
TOTAL |
|
$ |
438,767,018 |
|
100 |
|
$ |
434,544,152 |
|
100 |
|
The accompanying notes are an integral part of the financial statements.
(With Deloitte & Touche review report dated April 27, 2012)
CHUNGHWA TELECOM CO., LTD.
STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars, Except Earnings Per Share)
(Reviewed, Not Audited)
|
|
2012 |
|
2011 |
| ||||||
|
|
Amount |
|
% |
|
Amount |
|
% |
| ||
|
|
|
|
|
|
|
|
|
| ||
NET REVENUES (Note 23) |
|
$ |
47,744,257 |
|
100 |
|
$ |
47,584,160 |
|
100 |
|
|
|
|
|
|
|
|
|
|
| ||
OPERATING COSTS (Note 23) |
|
28,540,660 |
|
60 |
|
25,931,154 |
|
54 |
| ||
|
|
|
|
|
|
|
|
|
| ||
GROSS PROFIT |
|
19,203,597 |
|
40 |
|
21,653,006 |
|
46 |
| ||
|
|
|
|
|
|
|
|
|
| ||
OPERATING EXPENSES (Note 23) |
|
|
|
|
|
|
|
|
| ||
Marketing |
|
7,094,530 |
|
15 |
|
6,416,336 |
|
13 |
| ||
General and administrative |
|
808,664 |
|
1 |
|
871,180 |
|
2 |
| ||
Research and development |
|
829,980 |
|
2 |
|
802,446 |
|
2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total operating expenses |
|
8,733,174 |
|
18 |
|
8,089,962 |
|
17 |
| ||
|
|
|
|
|
|
|
|
|
| ||
INCOME FROM OPERATIONS |
|
10,470,423 |
|
22 |
|
13,563,044 |
|
29 |
| ||
|
|
|
|
|
|
|
|
|
| ||
NON-OPERATING INCOME AND GAINS |
|
|
|
|
|
|
|
|
| ||
Equity in earnings of equity investees, net |
|
559,490 |
|
1 |
|
165,122 |
|
|
| ||
Interest income |
|
180,464 |
|
1 |
|
136,457 |
|
|
| ||
Gain on disposal of financial instruments, net |
|
27,474 |
|
|
|
36,269 |
|
|
| ||
Valuation gain on financial instruments, net |
|
15,729 |
|
|
|
|
|
|
| ||
Gain on disposal of property, plant and equipment, net |
|
12,142 |
|
|
|
318,544 |
|
1 |
| ||
Others |
|
69,010 |
|
|
|
28,503 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Total non-operating income and gains |
|
864,309 |
|
2 |
|
684,895 |
|
1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
NON-OPERATING EXPENSES AND LOSSES |
|
|
|
|
|
|
|
|
| ||
Foreign exchange loss, net |
|
7,484 |
|
|
|
124,908 |
|
|
| ||
Interest expenses |
|
241 |
|
|
|
60 |
|
|
| ||
Valuation loss on financial instruments, net |
|
|
|
|
|
39,981 |
|
|
| ||
Others |
|
6,462 |
|
|
|
4,096 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Total non-operating expenses and losses |
|
14,187 |
|
|
|
169,045 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
INCOME BEFORE INCOME TAX |
|
11,320,545 |
|
24 |
|
14,078,894 |
|
30 |
| ||
|
|
|
|
|
|
|
|
|
| ||
INCOME TAX EXPENSES (Notes 2 and 20) |
|
1,831,042 |
|
4 |
|
2,244,028 |
|
5 |
| ||
|
|
|
|
|
|
|
|
|
| ||
NET INCOME |
|
$ |
9,489,503 |
|
20 |
|
$ |
11,834,866 |
|
25 |
|
(Continued)
CHUNGHWA TELECOM CO., LTD.
STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars, Except Earnings Per Share)
(Reviewed, Not Audited)
|
|
2012 |
|
2011 |
| ||||||||
|
|
Before |
|
After |
|
Before |
|
After |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
EARNINGS PER SHARE (Note 21) |
|
|
|
|
|
|
|
|
| ||||
Basic earnings per share |
|
$ |
1.46 |
|
$ |
1.22 |
|
$ |
1.79 |
|
$ |
1.50 |
|
Diluted earnings per share |
|
$ |
1.45 |
|
$ |
1.22 |
|
$ |
1.78 |
|
$ |
1.50 |
|
The accompanying notes are an integral part of the financial statements.
(With Deloitte & Touche review report dated April 27, 2012) |
|
(Concluded) |
CHUNGHWA TELECOM CO., LTD.
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
| ||
Net income |
|
$ |
9,489,503 |
|
$ |
11,834,866 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
Provision for doubtful accounts |
|
12,649 |
|
42,249 |
| ||
Depreciation and amortization |
|
7,968,101 |
|
7,957,692 |
| ||
Amortization of premium of financial assets |
|
16,174 |
|
13,827 |
| ||
Valuation loss (gain) on financial instruments, net |
|
(15,729 |
) |
39,981 |
| ||
Gain on disposal of financial instruments, net |
|
(27,474 |
) |
(36,269 |
) | ||
Gain on disposal of property, plant and equipment, net |
|
(12,142 |
) |
(318,544 |
) | ||
Equity in earnings of equity method investees, net |
|
(559,490 |
) |
(165,122 |
) | ||
Deferred income taxes |
|
(1,659 |
) |
(34,354 |
) | ||
Changes in operating assets and liabilities: |
|
|
|
|
| ||
Financial assets held for trading |
|
27,474 |
|
34,616 |
| ||
Trade notes and accounts receivable |
|
261,104 |
|
(5,036,388 |
) | ||
Receivables from related parties |
|
405,252 |
|
(14,891 |
) | ||
Other current monetary assets |
|
418,310 |
|
(461,339 |
) | ||
Inventories |
|
436,374 |
|
11,078 |
| ||
Other current assets |
|
(2,680,059 |
) |
(1,901,379 |
) | ||
Trade notes and accounts payable |
|
(1,845,839 |
) |
(2,179,294 |
) | ||
Payables to related parties |
|
(906,192 |
) |
(766,702 |
) | ||
Income tax payable |
|
1,818,104 |
|
2,263,236 |
| ||
Accrued expenses |
|
(3,229,622 |
) |
(2,357,526 |
) | ||
Other current liabilities |
|
1,074,667 |
|
839,252 |
| ||
Deferred income |
|
12,019 |
|
(1,019 |
) | ||
Accrued pension liabilities |
|
48,691 |
|
43,946 |
| ||
|
|
|
|
|
| ||
Net cash provided by operating activities |
|
12,710,216 |
|
9,807,916 |
| ||
|
|
|
|
|
| ||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
| ||
Acquisition of available-for-sale financial assets |
|
(3,240,697 |
) |
|
| ||
Proceeds from disposal of available-for-sale financial assets |
|
|
|
31,640 |
| ||
Acquisition of held-to-maturity financial assets |
|
(1,411,766 |
) |
(1,978,103 |
) | ||
Proceeds from disposal of held-to maturity financial assets |
|
1,000,629 |
|
300,000 |
| ||
Acquisition of investments accounted for using equity method |
|
|
|
(177,176 |
) | ||
Capital reduction of equity investees |
|
|
|
815,827 |
| ||
Acquisition of financial assets carried at cost |
|
|
|
(10,120 |
) | ||
Acquisition of property, plant and equipment |
|
(6,576,452 |
) |
(4,353,061 |
) | ||
Proceeds from disposal of property, plant and equipment |
|
19,780 |
|
647,717 |
| ||
Increase in intangible assets |
|
(67,374 |
) |
(39,332 |
) | ||
Decrease (increase) in other assets |
|
10,417 |
|
(518,242 |
) | ||
|
|
|
|
|
| ||
Net cash used in investing activities |
|
(10,265,463 |
) |
(5,280,850 |
) | ||
(Continued)
CHUNGHWA TELECOM CO., LTD.
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
| ||
Decrease in customers deposits |
|
$ |
(79,415 |
) |
$ |
(59,179 |
) |
Increase (decrease) in other liabilities |
|
(64,426 |
) |
54,361 |
| ||
Capital reduction |
|
|
|
(19,393,617 |
) | ||
|
|
|
|
|
| ||
Net cash used in financing activities |
|
(143,841 |
) |
(19,398,435 |
) | ||
|
|
|
|
|
| ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
2,300,912 |
|
(14,871,369 |
) | ||
|
|
|
|
|
| ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
61,283,240 |
|
84,700,525 |
| ||
|
|
|
|
|
| ||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
63,584,152 |
|
$ |
69,829,156 |
|
|
|
|
|
|
| ||
SUPPLEMENTAL INFORMATION |
|
|
|
|
| ||
Interest paid |
|
$ |
7,077 |
|
$ |
60 |
|
Income tax paid |
|
$ |
14,598 |
|
$ |
13,147 |
|
|
|
|
|
|
| ||
CASH AND NON-CASH INVESTING ACTIVITIES |
|
|
|
|
| ||
Increase in property, plant and equipment |
|
$ |
5,742,995 |
|
$ |
3,919,466 |
|
Payables to suppliers |
|
833,457 |
|
433,595 |
| ||
|
|
$ |
6,576,452 |
|
$ |
4,353,061 |
|
The accompanying notes are an integral part of the financial statements.
(With Deloitte & Touche review report dated April 27, 2012) |
|
(Concluded) |
CHUNGHWA TELECOM CO., LTD.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars, Unless Stated Otherwise)
(Reviewed, Not Audited)
1. GENERAL
Chunghwa Telecom Co., Ltd. (Chunghwa) was incorporated on July 1, 1996 in the Republic of China (ROC) pursuant to the Article 30 of the Telecommunications Act. Chunghwa is a company limited by shares and, prior to August 2000, was wholly owned by the Ministry of Transportation and Communications (MOTC). Prior to July 1, 1996, the current operations of Chunghwa were carried out under the Directorate General of Telecommunications (DGT). The DGT was established by the MOTC in June 1943 to take primary responsibility in the development of telecommunications infrastructure and to formulate policies related to telecommunications. On July 1, 1996, the telecom operations of the DGT were spun-off to as Chunghwa which continues to carry out the business and the DGT continues to be the industry regulator.
As the dominate telecommunications service provider of fixed-line and Global System for Mobile Communications (GSM) in the ROC, Chunghwa is subject to additional regulations imposed by ROC.
Effective August 12, 2005, the MOTC had completed the process of privatizing Chunghwa by reducing the government ownership to below 50% in various stages. In July 2000, Chunghwa received approval from the Securities and Futures Commission (the SFC) for a domestic initial public offering and its common shares were listed and traded on the Taiwan Stock Exchange (the TSE) on October 27, 2000. Certain of Chunghwas common shares had been sold, in connection with the foregoing privatization plan, in domestic public offerings at various dates from August 2000 to July 2003. Certain of Chunghwas common shares had also been sold in an international offering of securities in the form of American Depository Shares (ADS) on July 17, 2003 and were listed and traded on the New York Stock Exchange (the NYSE). The MOTC sold common shares of Chunghwa by auction in the ROC on August 9, 2005 and completed the second international offering on August 12, 2005. Upon completion of the share transfers associated with these offerings on August 12, 2005, the MOTC owned less than 50% of the outstanding shares of Chunghwa and completed the privatization plan.
As of March 31, 2012 and 2011, the Company had 24,650 and 24,363 employees, respectively.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements were prepared in conformity with the Securities and Exchange Act, the Guidelines Governing the Preparation of Financial Reports by Securities Issuers, requirements of the Business Accounting Law, Guidelines Governing Business Accounting relevant to financial accounting standards, and accounting principles generally accepted in the ROC (ROC GAAP). The significant accounting policies are summarized as follows:
Foreign-currency Transactions
Foreign-currency transactions other than derivative contracts are recorded in New Taiwan dollars at the rates of exchange in effect when the transactions occur. Exchange gains or losses derived from foreign-currency transactions or monetary assets and liabilities denominated in foreign currencies are recognized in earnings. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are revalued at prevailing exchange rates with the resulting gains or losses recognized in earnings.
At the balance sheet date, foreign-currency nonmonetary assets (such as equity instruments) and liabilities that are measured at fair value are revalued using prevailing exchange rates. When a gain or loss on a nonmonetary item is recognized in stockholders equity, any exchange component of that gain or loss shall be recognized in stockholders equity. Conversely, when a gain or loss on a non-monetary item is recognized in earnings, any exchange component of that gain or loss shall be recognized in earnings.
Foreign-currency nonmonetary assets and liabilities that are carried at cost continue to be stated at exchange rates at trade dates.
The financial statements of foreign equity investees and consolidated subsidiaries are translated into New Taiwan dollars at the following exchange rates. Assets and liabilities - spot rates at year-end; stockholders equity - historical rates, income and expenses - average rates during the year.
The resulting translation adjustments of financial statements shall be recorded as cumulative translation adjustments, a separate component of stockholders equity.
Accounting Estimates
Under above guidelines, law and principles, certain estimates and assumptions have been used for the allowance for doubtful accounts, allowance for loss on inventories, depreciation of property, plant and equipment, impairment of assets, bonuses to employees, directors and supervisors, pension cost, income tax, etc. Actual results may differ from these estimates.
Classification of Current and Noncurrent Assets and Liabilities
Current assets include cash and cash equivalents, and those assets held primarily for trading purposes or to be realized, sold or consumed within one year from the balance sheet date. All other assets are classified as noncurrent. Current liabilities are obligations incurred for trading purposes or to be settled within one year from the balance sheet date. All other liabilities are classified as noncurrent.
Cash Equivalents
Cash equivalents are commercial paper and treasury bills purchased with maturities of three months or less from the date of acquisition. The carrying amount approximates fair value.
Financial Assets and Liabilities at Fair Value Through Profit or Loss
Financial instruments classified as financial assets or financial liabilities at fair value through profit or loss (FVTPL) include financial assets or financial liabilities held for trading and are designated as at FVTPL on initial recognition. The Company recognizes a financial asset or a financial liability when the Company becomes a party to the contractual provisions of the financial instrument. A financial asset is derecognized when the Company losses control of its contractual rights over the financial asset. A financial liability is derecognized when the obligation specified in the relevant contract is discharged, cancelled or expired.
Financial instruments at FVTPL are initially measured at fair value. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized as expenses as incurred. Financial assets or financial liabilities at FVTPL are remeasured at fair value, subsequently with changes in fair value recognized in earnings. Cash dividends received subsequently (including those received in the period of investment) are recognized as income. On derecognition of a financial asset or a financial liability, the difference between its carrying amount and the sum of the consideration received and receivable or consideration paid and payable is recognized in earnings. A regular way purchases or sales of financial assets are accounted for using trade date accounting.
Derivatives that do not meet the criteria for hedge accounting are classified as financial assets or financial liabilities held for trading. When the fair value is positive, the derivative is recognized as a financial asset; when the fair value is negative, the derivative is recognized as a financial liability.
Fair values of financial assets and financial liabilities at the balance sheet date are determined as follows: Swap contracts are estimated by valuation techniques.
Available-for-sale Financial Assets
Available-for-sale financial assets are initially recognized at fair value plus transaction costs that are directly attributable to the acquisition. Changes in fair value from subsequent remeasurement are reported as a separate component of stockholders equity. The corresponding accumulated gains or losses are recognized in earnings when the financial asset is derecognized from the balance sheet. A regular way purchase or sale of financial assets is accounted for using trade date accounting.
The recognition and derecognition of available-for-sale financial assets are the same with those of financial assets at FVTPL.
Fair values are determined as follows: Listed stocks - at closing prices at the balance sheet date; open-end mutual funds - at net asset values at the balance sheet date; bonds - quoted at prices provided by the Taiwan GreTai Securities Market; and financial assets and financial liabilities without quoted prices in an active market - at values determined using valuation techniques.
Cash dividends are recognized in earnings on the ex-dividend date, except for the dividends declared before acquisition are treated as a reduction of investment cost. Stock dividends are recorded as an increase in the number of shares and do not affect investment income. The total number of shares subsequent to the increase of stock dividends is used to recalculate cost per share.
An impairment loss is recognized when there is objective evidence that the financial asset is impaired. If, in a subsequent period, the amount of the impairment loss decreases, for equity securities, the previously recognized impairment loss is reversed to the extent to the decrease and recorded as an adjustment to stockholders equity; for debt securities, the amount of the decrease is recognized in earnings, provided that the decrease is clearly attributable to an event which occurred after the impairment loss was recognized.
Held-to-maturity Financial Assets
Held-to-maturity financial assets are carried at amortized cost using the effective interest method. Those financial assets are initially recognized at fair value plus transaction costs that are directly attributable to the acquisition. Gains and losses are recognized at the time of derecognition, impairment or amortization. A regular way purchase or sale of financial assets is accounted for using trade date accounting.
If there is objective evidence which indicates that a financial asset is impaired, a loss is recognized. If, in a subsequent period, the amount of the impairment loss decreases and the decrease is clearly attributable to an event which occurred after the impairment loss was recognized, the previously recognized impairment loss is reversed to the extent of the decrease. The reversal may not result in a carrying amount that exceeds the amortized cost that would have been determined as if no impairment loss had been recognized.
Financial Assets Carried at Cost
Investments in equity instruments with no quoted prices in an active market and with fair values that cannot be reliably measured, such as non-publicly traded stocks and stocks traded in the Emerging Stock Market, are measured at their original cost. The accounting treatment for dividends on financial assets carried at cost is the same with that for dividends on available-for-sale financial assets. An impairment loss is recognized when there is objective evidence that the asset is impaired. A reversal of this impairment loss is disallowed.
Impairment of Accounts Receivable
An allowance for doubtful accounts is provided on the basis of a review of the collectibility of accounts receivable before January 1, 2011. The Company assesses the probability of collections of accounts receivable by examining the aging analysis of the outstanding receivables and assessing the value of the collateral provided by customers.
On January 1, 2011, the Company adopted the third-time revised Statement of Financial Accounting Standards (SFAS) No. 34, Financial Instruments: Recognition and Measurement. One of the main revisions is that the impairment of receivables originated by the Company should be covered by SFAS No. 34. Accounts receivable are assessed for impairment at the end of each reporting period and considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the accounts receivable, the estimated future cash flows of the asset have been affected.
The amount of the impairment loss recognized is the difference between the asset carrying amount and the present value of estimated future cash flows, after taking into account the related collateral and guarantees, discounted at the receivables original effective interest rate.
The carrying amount of the accounts receivable is reduced through the use of an allowance account.
Inventories
Inventories including merchandise and work-in-process are stated at the lower of cost (weighted-average cost) or net realizable value item by item, except for those that may be appropriate to group items of similar or related inventories. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. The calculation of the cost of inventory is derived using the weighted average method.
Investments Accounted for Using Equity Method
Investments in companies in which the Company exercises significant influence over the operating and financial policy decisions are accounted for by the equity method. Under the equity method, the investment is initially stated at cost and subsequently adjusted for its proportionate share in the net earnings of the investee companies. Any cash dividends received are recognized as a reduction in the carrying value of the investments.
Gains or losses on sales from the Company to equity method investees wherein the Company exercises significant influence over these equity investees are deferred in proportion to the Companys ownership percentage in the investees until such gains or losses are realized through transactions with third parties. Gains or losses on sales from equity method investees to Chunghwa are deferred in proportion to the Chunghwas ownership percentages in the investees until they are realized through transactions with third parties.
When the Company subscribes for additional investees shares at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment in the investee differs from the amount of the Companys share of the investees equity. The Company records such a difference as an adjustment to long-term investments with the corresponding amount charged or credited to additional paid-in capital to the extent available, with the balance charged to retained earnings.
Property, Plant and Equipment
Property, plant and equipment are stated at cost plus a revaluation increment, if any, less accumulated depreciation and accumulated impairment loss. The interest costs that are directly attributable to the acquisition, construction of a qualifying asset are capitalized as property, plant and equipment. Major renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred.
When an indication of impairment is identified, any excess of the carrying amount of an asset over its recoverable amount is recognized as a loss. If the recoverable amount increases in a subsequent period, the amount previously recognized as impairment would be reversed and recognized as a gain. However, the adjusted amount may not exceed the carrying amount that would have been determined, net of depreciation, as if no impairment loss had been recognized.
An impairment loss on a revalued asset is charged to unrealized revaluation increment under equity to the extent available, with the balance is recognized as a loss in earnings. If the recoverable amount increases in a subsequent period, the amount previously recognized as impairment loss could be reversed and recognized as a gain, with the remaining credited to unrealized revaluation increment.
Depreciation expense is computed using the straight-line method over the following estimated service lives: land improvements - 10 to 30 years; buildings - 10 to 60 years; computer equipment - 2 to 10 years; telecommunications equipment - 6 to 15 years; transportation equipment - 5 to 10 years; and miscellaneous equipment - 3 to 12 years.
Upon sale or disposal of property, plant and equipment, the related cost, accumulated depreciation, accumulated impairment losses and any unrealized revaluation increment are deducted from the corresponding accounts, and any gain or loss is recorded as non-operating gains or losses in the period of sale or disposal.
Intangible Assets
Intangible assets mainly include 3G Concession, computer software and patents.
The 3G Concession is valid through December 31, 2018. The 3G Concession is amortized on a straight-line basis from the date operations commence through the date the license expires. Computer software costs and patents are amortized using the straight-line method over the estimated useful lives of 2-20 years.
When an indication of impairment is identified for intangible assets, any excess of the carrying amount of an asset over its recoverable amount is recognized as a loss. If the recoverable amount increases in a subsequent period, the amount previously recognized as impairment would be reversed and recognized as a gain. However, the adjusted amount may not exceed the carrying amount that would have been determined, as if no impairment loss had been recognized.
Goodwill represents the excess of the consideration paid for business acquisition over the fair value of identifiable net assets acquired. Goodwill is tested for impairment annually. If an event occurs or circumstances change which indicates that the fair value of goodwill is below its carrying amount, an impairment loss is recognized. A subsequent reversal of such impairment loss is not allowed.
Idle Assets
Idle assets are carried at the lower of recoverable amount or carrying amount.
Pension Costs
Pension cost under a defined benefit plan is determined by actuarial valuations. Contributions made under a defined contribution plan are recognized as pension cost during the year in which employees render services.
Income Tax
The Company applies inter-period allocations for its income tax, whereby deferred income tax assets and liabilities are recognized for the tax effects of temporary differences and unused tax credits. Valuation allowances are provided to the extent, if any, that it is more likely than not that deferred income tax assets will not be realized. A deferred tax asset or liability is classified as current or noncurrent in accordance with the classification of its related asset or liability. However, if a deferred tax asset or liability does not relate to an asset or liability in the financial statements, then it is classified as either current or noncurrent based on the expected length of time before it is realized or settled.
Any tax credits arising from, research and development are recognized using the flow-through method.
Adjustments of prior years tax liabilities are added to or deducted from the current years tax provision.
Income taxes (10%) on undistributed earnings is recorded in the year of stockholders approval which is the year subsequent to the year the earnings are generated.
Revenue Recognition
Revenues are recognized when they are realized or realizable and earned. Revenues are realized or realizable and earned when the Company has persuasive evidence of an arrangement, the goods have been delivered or the services have been rendered to the customer, the sales price is fixed or determinable and collectibility is reasonably assured.
Revenue is measured at the fair value of the consideration received or receivable and represents amounts agreed between the Company and the customers for goods sold in the normal course of business, net of sales discounts and volume rebates. For trade receivables due within one year from the balance sheet date, as the nominal value of the consideration to be received approximates its fair value and transactions are frequent, fair value of the consideration is not determined by discounting all future receipts using an imputed rate of interest.
Usage revenues from fixed-line services (including local, domestic long distance and international long distance), cellular services, Internet and data services, and interconnection and call transfer fees from other telecommunications companies and carriers are billed in arrears and are recognized based upon minutes of traffic processed when the services are provided in accordance with contract terms.
Other revenues are recognized as follows: (a) one-time subscriber connection fees (on fixed-line services) are deferred and recognized over the average expected customer service periods, (b) monthly fees (on fixed-line, mobile, Internet and data services) are accrued every month, and (c) prepaid services (fixed-line, mobile, Internet and data services) are recognized as income based upon actual usage by customers or when the right to use those services expires.
Where the Company enters into transactions which involve both the provision of air time bundled with products such as 3G data card and handset, total consideration received from handsets in these arrangements are allocated and measured using units of accounting within the arrangement based on relative fair values limited to the amount that is not contingent upon the delivery of other items or services.
Where the Company sells products to third party cellular phone stores the Company records the direct sale of the products, typically handsets, as gross revenue when the Company is the primary obligor in the arrangement and when title is passed and the products are accepted by the stores.
Expense Recognition
The costs of providing services are recognized as incurred. The cost includes incentives to third party dealers for inducing business which are payable when the end user enters into an airtime contract.
3. EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES
The Company adopted the newly-revised Statements of Financial Accounting Standards No. 34, Financial Instruments, (SFAS No. 34) beginning from January 1, 2011. When an enterprise adopts the revised provisions, the initial recognition of loans and receivables shall be accounted for under SFAS No. 34. There is no effect on the net income and after-tax basic earnings per share for the three months ended March 31, 2011.
4. CASH AND CASH EQUIVALENTS
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Cash |
|
|
|
|
| ||
Cash on hand |
|
$ |
80,984 |
|
$ |
78,202 |
|
Bank deposits |
|
1,484,727 |
|
2,467,304 |
| ||
Negotiable certificate of deposit, annual yield rate - ranging from 0.82%-1.05% and 0.63%-0.72% for 2012 and 2011, respectively |
|
43,450,000 |
|
53,250,000 |
| ||
|
|
45,015,711 |
|
55,795,506 |
| ||
Cash equivalents |
|
|
|
|
| ||
Commercial paper, annual yield rate - ranging from 0.70%-0.72% and 0.45%-0.49% for 2012 and 2011, respectively |
|
18,568,441 |
|
14,033,650 |
| ||
|
|
|
|
|
| ||
|
|
$ |
63,584,152 |
|
$ |
69,829,156 |
|
As of March 31, 2012 and 2011, foreign deposits in bank were as following:
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
United States of America - New York (US$2,593 thousand and US$485 thousand for 2012 and 2011, respectively) |
|
$ |
76,513 |
|
$ |
14,253 |
|
5. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Derivatives - financial assets |
|
|
|
|
|
|
|
Currency swap contracts |
|
$ |
18,674 |
|
$ |
645 |
|
|
|
|
|
|
| ||
Derivatives - financial liabilities |
|
|
|
|
|
|
|
Currency swap contracts |
|
$ |
517 |
|
$ |
6,348 |
|
Chunghwa entered into currency swap contracts to reduce its exposure to foreign currency risk and variability in operating results due to fluctuations in exchange rates. However, the aforementioned derivatives did not meet the criteria for hedge accounting and were classified as financial assets or financial liabilities held for trading.
Outstanding currency swap contracts as of March 31, 2012 and 2011 were as follows:
|
|
Currency |
|
Maturity Period |
|
Contract Amount |
|
|
|
|
|
|
(In Thousands) |
|
|
|
|
|
|
|
March 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency swap contracts |
|
US$/NT$ |
|
2012.04-06 |
|
US$55,000/NT$1,641,726 |
|
|
US$/NT$ |
|
2012.05-06 |
|
US$12,000/NT$353,495 |
|
|
|
|
|
|
|
March 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency swap contracts |
|
US$/NT$ |
|
2011.04-05 |
|
US$23,000/NT$670,586 |
|
|
US$/NT$ |
|
2011.06 |
|
US$5,000/NT$147,663 |
Net gain (loss) arising from financial assets and liabilities at fair value through profit or loss for the three months ended March 31, 2012 and 2011 were $43,203 thousand (including realized settlement gain of $27,474 thousand and valuation gain of $15,729 thousand) and $(5,365) thousand (including realized settlement gain of $34,616 thousand and valuation loss of $39,981 thousand), respectively.
6. AVAILABLE-FOR-SALE FINANCIAL ASSETS
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Domestic listed stocks |
|
$ |
3,137,103 |
|
$ |
|
|
Open-end mutual funds |
|
2,152,235 |
|
1,023,820 |
| ||
|
|
5,289,338 |
|
1,023,820 |
| ||
Less: Current portion |
|
2,152,235 |
|
1,023,820 |
| ||
|
|
|
|
|
| ||
|
|
$ |
3,137,103 |
|
$ |
|
|
The board of directors resolved to acquire 263,622 thousand common shares of China Airline Ltd. (CAL) at $11.73 per share for the three months ended March 31, 2012. Chunghwa expected to hold it as long-term investment and classified it as available-for-sale financial assets - noncurrent. China Airline engages mainly in air transportation services.
For the three months ended March 31, 2012 and 2011, movements of unrealized gain or loss on financial instruments were as follows:
|
|
Three Months Ended March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Balance, beginning of period |
|
$ |
75,639 |
|
$ |
(20,542 |
) |
Recognized in stockholders equity |
|
74,034 |
|
24,959 |
| ||
Transferred to profit or loss |
|
|
|
(1,653 |
) | ||
|
|
|
|
|
| ||
Balance, end of period |
|
$ |
149,673 |
|
$ |
2,764 |
|
7. HELD-TO-MATURITY FINANCIAL ASSETS
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Corporate bonds, nominal interest rate ranging from 1.15%-2.90% and 1.20%-4.75% for 2012 and 2011, respectively; effective interest rate ranging from 1.00%-2.89% and 1.00%-2.95% for 2012 and 2011, respectively |
|
$ |
14,185,818 |
|
$ |
10,929,432 |
|
Bank debentures, nominal interest rate ranging from 1.37%-1.60% and 1.37%-2.11% for 2012 and 2011, respectively; effective interest rate ranging from 1.25%-1.40% and 1.25%-2.45% for 2012 and 2011, respectively |
|
905,337 |
|
1,106,542 |
| ||
|
|
15,091,155 |
|
12,035,974 |
| ||
Less: Current portion |
|
500,266 |
|
2,062,915 |
| ||
|
|
|
|
|
| ||
|
|
$ |
14,590,889 |
|
$ |
9,973,059 |
|
8. ALLOWANCE FOR DOUBTFUL ACCOUNTS
|
|
Three Months Ended March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Balance, beginning of period |
|
$ |
2,398,470 |
|
$ |
2,528,044 |
|
Provision for doubtful accounts |
|
11,047 |
|
38,728 |
| ||
Accounts receivable written off |
|
(35,985 |
) |
(63,432 |
) | ||
|
|
|
|
|
| ||
Balance, end of period |
|
$ |
2,373,532 |
|
$ |
2,503,340 |
|
9. OTHER MONETARY ASSETS - CURRENT
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Accrued custodial receipts of MOD service |
|
$ |
137,556 |
|
$ |
59,540 |
|
Other receivables |
|
1,356,216 |
|
2,492,992 |
| ||
|
|
|
|
|
| ||
|
|
$ |
1,493,772 |
|
$ |
2,552,532 |
|
10. INVENTORIES
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Merchandise |
|
$ |
609,785 |
|
$ |
476,734 |
|
Work in process |
|
405,619 |
|
632,211 |
| ||
|
|
|
|
|
| ||
|
|
$ |
1,015,404 |
|
$ |
1,108,945 |
|
The operating costs related to inventories were $5,036,697 thousand (including the valuation loss on inventories of $20,723 thousand) and $2,855,165 thousand (including the valuation loss on inventories of $9,930 thousand) for the three months ended March 31, 2012 and 2011, respectively.
11. OTHER CURRENT ASSETS
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Spare parts |
|
$ |
2,835,018 |
|
$ |
2,069,892 |
|
Prepaid expenses |
|
2,754,885 |
|
2,543,218 |
| ||
Prepaid rents |
|
1,016,953 |
|
853,672 |
| ||
Miscellaneous |
|
402,133 |
|
255,687 |
| ||
|
|
|
|
|
| ||
|
|
$ |
7,008,989 |
|
$ |
5,722,469 |
|
12. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
|
|
March 31 |
| ||||||||
|
|
2012 |
|
2011 |
| ||||||
|
|
Carrying |
|
% of |
|
Carrying |
|
% of |
| ||
|
|
|
|
|
|
|
|
|
| ||
Listed |
|
|
|
|
|
|
|
|
| ||
Senao International Co., Ltd. (SENAO) |
|
$ |
1,684,305 |
|
28 |
|
$ |
1,532,126 |
|
28 |
|
Non-listed |
|
|
|
|
|
|
|
|
| ||
Light Era Development Co., Ltd. (LED) |
|
4,422,825 |
|
100 |
|
2,912,155 |
|
100 |
| ||
Chunghwa Investment Co., Ltd. (CHI) |
|
1,786,637 |
|
89 |
|
1,932,617 |
|
89 |
| ||
Donghwa Telecom Co., Ltd. (DHT) |
|
870,919 |
|
100 |
|
505,001 |
|
100 |
| ||
Chunghwa System Integration Co., Ltd. (CHSI) |
|
723,715 |
|
100 |
|
710,260 |
|
100 |
| ||
Taiwan International Standard Electronics Co., Ltd. (TISE) |
|
709,852 |
|
40 |
|
598,205 |
|
40 |
| ||
Chunghwa Telecom Singapore Pte., Ltd. (CHTS) |
|
690,872 |
|
100 |
|
616,537 |
|
100 |
| ||
CHIEF Telecom Inc. (CHIEF) |
|
607,343 |
|
69 |
|
552,825 |
|
69 |
| ||
InfoExplorer Co., Ltd. (IFE) |
|
259,520 |
|
33 |
|
248,256 |
|
49 |
| ||
Viettel-CHT Co., Ltd. (Viettel-CHT) |
|
256,560 |
|
30 |
|
238,242 |
|
30 |
| ||
Huada Digital Corporation (HDD) |
|
250,778 |
|
50 |
|
|
|
|
| ||
Chunghwa International Yellow Pages Co., Ltd. (CIYP) |
|
204,202 |
|
100 |
|
197,959 |
|
100 |
| ||
Prime Asia Investments Group Ltd. (B.V.I.) (Prime Asia) |
|
174,899 |
|
100 |
|
176,400 |
|
100 |
| ||
Skysoft Co., Ltd. (SKYSOFT) |
|
125,290 |
|
30 |
|
98,101 |
|
30 |
| ||
Spring House Entertainment Inc. (SHE) |
|
109,623 |
|
56 |
|
87,536 |
|
56 |
| ||
Dian Zuan Intergrating Marketing Co., Ltd. (DZIM) |
|
108,533 |
|
40 |
|
|
|
|
| ||
Chunghwa Telecom Global, Inc. (CHTG) |
|
90,832 |
|
100 |
|
67,512 |
|
100 |
| ||
KingWaytek Technology Co., Ltd. (KWT) |
|
76,849 |
|
33 |
|
63,901 |
|
33 |
| ||
Smartfun Digital Co., Ltd. (SFD) |
|
56,461 |
|
65 |
|
|
|
|
| ||
Chunghwa Telecom Vietnam Co., Ltd. (CHTV) |
|
34,737 |
|
100 |
|
|
|
|
| ||
So-net Entertainment Taiwan Co., Ltd. (So-net) |
|
34,644 |
|
30 |
|
28,620 |
|
30 |
| ||
Chunghwa Telecom Japan Co., Ltd. (CHTJ) |
|
22,858 |
|
100 |
|
15,794 |
|
100 |
| ||
(Continued)
|
|
March 31 |
| ||||||||
|
|
2012 |
|
2011 |
| ||||||
|
|
Carrying |
|
% of |
|
Carrying |
|
% of |
| ||
|
|
|
|
|
|
|
|
|
| ||
Chunghwa Sochamp Technology Inc. (CHST) |
|
$ |
18,711 |
|
51 |
|
$ |
|
|
|
|
New Prospect Investments Holdings Ltd. (B.V.I.) (New Prospect) |
|
|
|
100 |
|
|
|
100 |
| ||
|
|
11,636,660 |
|
|
|
9,049,921 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
13,320,965 |
|
|
|
$ |
10,582,047 |
|
|
|
(Concluded)
Chunghwa increased its investment in DHT for $360,216 thousand in November 2011. DHT engages mainly in international telecommunications, IP fictitious internet and internet transfer services.
Chunghwa Telcom Singapore Pte., Ltd. reduces its capital by $815,827 thousand in March 2011. The reduction amount was received by Chunghwa.
InfoExplorer Co., Ltd. (IFE) issued new shares as the consideration to merge with International Integrated System Inc. and e-ToYou International, Inc. on April 1, 2011. After the merger, IFE became the surviving entity and was renamed as International Integrated System, Inc. (IISI). International Integrated System, Inc. and e-ToYou International, Inc. were dissolved. As a result of the additional shares being issued by IFE in connection with this transaction, Chunghwas ownership interest in IISI decreased from 49% to 33% after the merger, and following the stockholders meeting of IISI on June 24, 2011, Chunghwa lost control of the board of directors. Due to this loss of control, IISI was deconsolidated and going forward the investment is accounted for as an equity method investment.
Chunghwa invested in HDD in September 2011 by investing $250,000 thousand cash and hold a 50% ownership of HDD. HDD engages mainly in providing software service.
Chunghwa increased its investment in Prime Asia Investments Group Ltd. (B.V.I.) (Prime Asia) by $177,176 thousand and $28,913 thousand in March and December 2011. Prime Asia is operating as an investment company.
Chunghwa, President Chain Store Corporation and EasyCard Corporation established a joint venture, DZIM, in May 2011. Chunghwa invested $114,640 thousand cash and hold a 40% ownership of DZIM. DZIM engages mainly in information technology service and general advertisement service.
Chunghwa and United Daily News established a joint venture, SFD, in August 2011. Chunghwa invested $65,000 thousand cash and hold a 65% ownership of SFD. SFD mainly engages in sales of software.
Chunghwa has established CHTV in May 2011 by investing $43,847 thousand cash. CHTV engages mainly in providing information and communications technology, international private leased circuit, and intelligent energy network service.
Chunghwa has invested in CHST for $20,400 thousand in June 2011. The ownership of CHST is 51%. CHST mainly engages in license plate recognition system.
Chunghwa has established New Prospect Investments Holdings Ltd. (B.V.I.) (New Prospect) in March 2006, but not on operation stage yet. The holding company is operating as an investment company and Chunghwa has 100% ownership right in an amount of US$1 in the holding company as of March 31, 2011.
Market value of the listed investment accounted for using equity method calculated at its closing prices as of March 31, 2012 and 2011 was $9,904,695 thousand and $5,533,710 thousand, respectively.
The equity in earnings (losses) of equity investees for the three months ended March 31, 2012 and 2011, are based on unreviewed financial statements except the equity in earnings of SENAO.
The aggregate carrying values of the equity method investments whose financial statements have not been reviewed were $11,740,683 thousand and $9,139,860 thousand as of March 31, 2012 and 2011, respectively. The equity in earnings were $424,583 thousand and $64,119 thousand for the three months ended March 31, 2012 and 2011, respectively.
The details of equity in earnings and losses of equity method investees were as follows:
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Light Era Development Co., Ltd. (LED) |
|
$ |
199,967 |
|
$ |
(59,319 |
) |
Senao International Co., Ltd. (SENAO) |
|
143,193 |
|
103,813 |
| ||
Taiwan International Standard Electronics Co., Ltd. (TISE) |
|
100,919 |
|
41,846 |
| ||
Others |
|
115,411 |
|
78,782 |
| ||
|
|
|
|
|
| ||
|
|
$ |
559,490 |
|
$ |
165,122 |
|
All accounts of Chunghwas subsidiaries were included in Chunghwas consolidated financial statements.
13. FINANCIAL ASSETS CARRIED AT COST
|
|
March 31 |
| ||||||||
|
|
2012 |
|
2011 |
| ||||||
|
|
Carrying |
|
% of |
|
Carrying |
|
% of |
| ||
|
|
|
|
|
|
|
|
|
| ||
Non-listed |
|
|
|
|
|
|
|
|
| ||
Taipei Financial Center Corp. (TFC) |
|
$ |
1,789,530 |
|
12 |
|
$ |
1,789,530 |
|
12 |
|
Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II) |
|
200,000 |
|
17 |
|
200,000 |
|
17 |
| ||
Global Mobile Corp. (GMC) |
|
77,018 |
|
3 |
|
127,018 |
|
8 |
| ||
Innovation Works Development Fund, L.P. (IWDF) |
|
73,154 |
|
4 |
|
38,035 |
|
7 |
| ||
iD Branding Ventures (iDBV) |
|
67,500 |
|
8 |
|
75,000 |
|
8 |
| ||
Innovation Works Limited (IW) |
|
31,391 |
|
2 |
|
31,391 |
|
7 |
| ||
CQi Energy Infocom Inc. (CQi) |
|
6,000 |
|
18 |
|
20,000 |
|
18 |
| ||
RPTI International (RPTI) |
|
|
|
10 |
|
34,500 |
|
10 |
| ||
Essence Technology Solution, Inc. (ETS) |
|
|
|
7 |
|
|
|
7 |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
2,244,593 |
|
|
|
$ |
2,315,474 |
|
|
|
Chunghwa made additional investment in IWDF for $35,119 thousand in October 2011. IWDF invests mainly in start-up companies of E-commerce, mobile internet and cloud computing, etc.
iDBV reduced its capital by $7,500 thousand in December 2011. The reduction amount was received by Chunghwa.
Chunghwa made additional investment in IW for $10,120 thousand in January 2011. IW invests mainly in start-up companies and mentors such companies in the E-commerce, mobile internet and cloud computing fields, etc.
After evaluating the financial assets carried at cost, Chunghwa determined the investment in GMC, CQi and RPTI were impaired and recognized an impairment loss of $50,000 thousand, $14,000 thousand and $34,500 thousand in 2011, respectively.
The above investments do not have a quoted market price in an active market and fair values cannot be reliably measured; therefore, these investments are carried at original cost.
14. OTHER MONETARY ASSETS - NONCURRENT
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Piping Fund |
|
$ |
1,000,000 |
|
$ |
1,000,000 |
|
As part of the governments effort to upgrade the existing telecommunications infrastructure, Chunghwa and other public utility companies were required by the ROC government to contribute a total of $1,000,000 thousand to a Piping Fund administered by the Taipei City Government. This funds was used to finance various telecommunications infrastructure projects.
15. PROPERTY, PLANT AND EQUIPMENT
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Cost |
|
|
|
|
| ||
Land |
|
$ |
101,381,145 |
|
$ |
101,401,329 |
|
Land improvements |
|
1,572,448 |
|
1,551,988 |
| ||
Buildings |
|
65,958,801 |
|
65,726,304 |
| ||
Computer equipment |
|
14,507,175 |
|
15,316,104 |
| ||
Telecommunications equipment |
|
657,250,619 |
|
655,840,449 |
| ||
Transportation equipment |
|
2,582,271 |
|
2,257,745 |
| ||
Miscellaneous equipment |
|
6,573,254 |
|
6,883,622 |
| ||
Total cost |
|
849,825,713 |
|
848,977,541 |
| ||
Revaluation increment on land |
|
5,762,418 |
|
5,762,611 |
| ||
|
|
855,588,131 |
|
854,740,152 |
| ||
Accumulated depreciation |
|
|
|
|
| ||
Land improvements |
|
1,055,246 |
|
1,014,410 |
| ||
Buildings |
|
19,796,027 |
|
18,706,906 |
| ||
Computer equipment |
|
10,870,209 |
|
11,772,074 |
| ||
Telecommunications equipment |
|
535,812,604 |
|
530,420,186 |
| ||
Transportation equipment |
|
1,221,633 |
|
1,523,636 |
| ||
Miscellaneous equipment |
|
5,287,559 |
|
5,746,361 |
| ||
|
|
574,043,278 |
|
569,183,573 |
| ||
Construction in progress and advances related to acquisition of equipment |
|
13,872,626 |
|
11,037,605 |
| ||
|
|
|
|
|
| ||
Property, plant and equipment, net |
|
$ |
295,417,479 |
|
$ |
296,594,184 |
|
Pursuant to the related regulation, Chunghwa revalued its land owned as of April 30, 2000 based on the publicly announced value on July 1, 1999. These revaluations which were approved by the Ministry of Auditing resulted in increases in the carrying values of property, plant and equipment of $5,986,074 thousand, liabilities for land value incremental tax of $211,182 thousand, and stockholders equity - other adjustments of $5,774,892 thousand.
The amendment to the Land Tax Act, relating to the article to permanently lower land value incremental tax, went into effect on February 1, 2005. In accordance with the lowered tax rates, Chunghwa recomputed its land value incremental tax, and reclassified the reserve for land value incremental tax of $116,196 thousand to stockholders equity - other adjustments. As of March 31, 2012, the unrealized revaluation increment was decreased to $5,762,636 thousand due to disposal of revaluation assets.
Depreciation on property, plant and equipment for the three months ended March 31, 2012 and 2011 amounted to $7,640,646 thousand and $7,645,446 thousand, respectively. No interest expense was capitalized for the three months ended March 31, 2012 and 2011.
16. ACCRUED EXPENSES
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Accrued salary and compensation |
|
$ |
5,708,921 |
|
$ |
6,478,016 |
|
Accrued franchise fees |
|
2,742,409 |
|
2,719,377 |
| ||
Accrued employees bonus and remuneration to directors and supervisors |
|
2,442,150 |
|
2,696,375 |
| ||
Other accrued expenses |
|
3,042,291 |
|
3,010,861 |
| ||
|
|
|
|
|
| ||
|
|
$ |
13,935,771 |
|
$ |
14,904,629 |
|
17. OTHER CURRENT LIABILITIES
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Advances from subscribers |
|
$ |
11,512,167 |
|
$ |
9,426,850 |
|
Payables to equipment suppliers |
|
1,755,250 |
|
1,304,355 |
| ||
Amounts collected in trust for others |
|
1,337,089 |
|
1,413,985 |
| ||
Payables to contractors |
|
1,247,230 |
|
697,783 |
| ||
Refundable customers deposits |
|
1,081,913 |
|
1,102,520 |
| ||
Others |
|
2,622,194 |
|
2,559,910 |
| ||
|
|
|
|
|
| ||
|
|
$ |
19,555,843 |
|
$ |
16,505,403 |
|
18. STOCKHOLDERS EQUITY
Under Chunghwas Articles of Incorporation, Chunghwas authorized capital is $120,000,000 thousand which is divided into 12,000,000 thousand common shares (at $10 par value per share), among which 7,757,447 thousand common shares are issued and outstanding as of March 31, 2011.
For the purpose of privatizing Chunghwa, the MOTC sold 1,109,750 thousand common shares of Chunghwa in an international offering of securities in the form of American Depositary Shares (ADS) amounting to 110,975 thousand units (one ADS represents ten common shares) on the New York Stock Exchange on July 17, 2003. Afterwards, the MOTC sold 1,350,682 thousand common shares in the form of ADS amounting to 135,068 thousand units on August 10, 2005. Subsequently, the MOTC and Taiwan Mobile Co., Ltd. sold 505,389 thousand and 58,959 thousand common shares of Chunghwa, respectively, in the form of ADS totally amounting to 56,435 thousand units on September 29, 2006. The MOTC and Taiwan Mobile Co., Ltd. have sold 3,024,780 thousand common shares in the form of ADS amounting to 302,478 thousand units. As of March 31, 2011, the outstanding ADSs were 439,309 thousand common shares, which equaled approximately 43,931 thousand units and represented 5.66% of Chunghwas total outstanding common shares.
The ADS holders generally have the same rights and obligations as other common stockholders, subject to the provision of relevant laws. The exercise of such rights and obligations shall comply with the related regulations and deposit agreement, which stipulate, among other things, that ADS holders can, through deposit agents:
a. Exercise their voting rights,
b. Sell their ADSs, and
c. Receive dividends declared and subscribe to the issuance of new shares.
Under the ROC Company Law, additional paid-in capital may only be utilized to offset deficits. For those companies having no deficits, additional paid-in capital arising from capital surplus can be used to increase capital stock and distribute to stockholders in proportion to their ownership at the ex-dividend date. Also, such amounts can only be declared as a stock dividend by Chunghwa at an amount calculated in accordance with the provisions of existing regulations. The combined amount of any portions capitalized each year may not exceed 10 percent of common stock issued. However, where a company undergoes an organizational change (such as a merger, acquisition, or reorganization) that results in the capitalization of undistributed earnings after the organizational change, the above restriction does not apply.
In addition, before distributing a dividend or making any other distribution to stockholders, Chunghwa must pay all outstanding taxes, recover any past losses and set aside a legal reserve equal to 10% of its net income, and depending on its business needs or requirements, may also set aside a special reserve. In accordance with the Articles of Incorporation, no less than 50% of the remaining earnings comprising remaining balance of net income, if any, plus cumulative undistributed earnings shall be distributed in the following order: (a) from 2% to 5% of distributable earnings shall be distributed to employees as employee bonus; (b) no more than 0.2% of distributable earnings shall be distributed to board of directors and supervisors as remuneration; and (c) cash dividends to be distributed shall not be less than 50% of the total amount of dividends to be distributed. If cash dividends to be distributed is less than $0.10 per share, such cash dividend shall be distributed in the form of common shares.
For the three months ended March 31, 2012 and 2011, the accrual amounts for bonuses to employees and remuneration to directors and supervisors were accrued on past experiences and probable amount to be paid in accordance with Chunghwas Articles of Incorporation and Implementation Guidance for the Employees Bonus Distribution of Chunghwa Telecom Co., Ltd.
If the initial accrual amounts of the aforementioned bonus are significantly different from the amounts proposed by the board of directors, the difference is charged to the earnings of the year making the initial estimate. Otherwise, the difference between initial accrual amounts and the amounts resoluted in the stockholders meeting is charged to the earnings of the following year as a result of change in accounting estimate.
Under the ROC Company Law, the appropriation for legal reserve shall be made until the accumulated reserve equals the aggregate par value of the outstanding capital stock of Chunghwa. This reserve can only be used to offset a deficit, or under the revised Company Law issued on January 4, 2012, when the legal reserve has exceeded 25% of the Companys paid-in capital, the excess may be transferred to capital or distributed in cash.
The appropriations and distributions of the 2011 earnings of Chunghwa have been resolved by the board of directors on March 27, 2012, and the appropriations and distributions of the 2010 earnings of Chunghwa have been approved by the stockholders on June 24, 2011 as follows:
|
|
Appropriation of Earnings |
|
Dividends Per Share |
| ||||||||
|
|
For Fiscal |
|
For Fiscal |
|
For Fiscal |
|
For Fiscal |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Legal reserve |
|
$ |
4,706,838 |
|
$ |
4,760,890 |
|
|
|
|
| ||
Cash dividends |
|
42,361,864 |
|
42,854,462 |
|
$ |
5.46 |
|
$ |
5.52 |
| ||
The amounts for bonuses to employees and remuneration to directors and supervisors resolved in the board of directors on March 27, 2012, were $2,040,090 thousand and $44,446 thousand, respectively. There was no difference between the initial accrual amounts and the amounts resolved in board of directors of the aforementioned bonuses to employees and the remuneration to directors and supervisors.
The amounts for bonuses to employees and remuneration to directors and supervisors approved in the stockholders meeting on June 24, 2011, were $2,144,074 thousand and $45,044 thousand, respectively. There was no difference between the initial accrual amounts and the amounts resolved in stockholders meeting of the aforementioned bonuses to employees and the remuneration to directors and supervisors.
The appropriation and distribution of the 2011 earnings, and the amounts for bonuses to employees and remuneration to directors and supervisors is subject to the approval in the stockholders meeting on June 22, 2012. Information on the appropriation of Chunghwas earnings, employees bonuses and remuneration to directors and supervisors resolved by the board of directors and approved by the stockholders is available at the Market Observation Post System website.
The stockholders, at the stockholders meeting held on June 18, 2010, resolved to reduce the amount of $19,393,617 thousand in capital of Chunghwa by a cash distribution to its stockholders. The abovementioned 2010 capital reduction proposal was effectively approved by FSC. The board of directors of Chunghwa was authorized to designate the record date of capital reduction as of October 26, 2010. Subsequently, the stock transfer record date of capital reduction was designated as January 15, 2011. The amount due to stockholders for capital reduction was $19,393,617 thousand and such cash payment to stockholders was made in January 2011.
19. COMPENSATION, DEPRECIATION AND AMORTIZATION EXPENSES
|
|
Three Months Ended March 31, 2012 |
| |||||||
|
|
Operating |
|
Operating |
|
|
| |||
|
|
Costs |
|
Expenses |
|
Total |
| |||
|
|
|
|
|
|
|
| |||
Compensation expense |
|
|
|
|
|
|
| |||
Salaries |
|
$ |
3,110,201 |
|
$ |
2,208,230 |
|
$ |
5,318,431 |
|
Insurance |
|
271,501 |
|
195,724 |
|
467,225 |
| |||
(Continued)
|
|
Three Months Ended March 31, 2012 |
| |||||||
|
|
Operating |
|
Operating |
|
|
| |||
|
|
Costs |
|
Expenses |
|
Total |
| |||
|
|
|
|
|
|
|
| |||
Pension |
|
$ |
444,546 |
|
$ |
301,385 |
|
$ |
745,931 |
|
Other compensation |
|
1,905,025 |
|
1,334,530 |
|
3,239,555 |
| |||
|
|
|
|
|
|
|
| |||
|
|
$ |
5,731,273 |
|
$ |
4,039,869 |
|
$ |
9,771,142 |
|
|
|
|
|
|
|
|
| |||
Depreciation expense |
|
$ |
7,189,993 |
|
$ |
450,653 |
|
$ |
7,640,646 |
|
Amortization expense |
|
$ |
293,037 |
|
$ |
34,418 |
|
$ |
327,455 |
|
(Concluded)
|
|
Three Months Ended March 31, 2011 |
| |||||||
|
|
Operating |
|
Operating |
|
|
| |||
|
|
Costs |
|
Expenses |
|
Total |
| |||
|
|
|
|
|
|
|
| |||
Compensation expense |
|
|
|
|
|
|
| |||
Salaries |
|
$ |
2,923,730 |
|
$ |
2,090,917 |
|
$ |
5,014,647 |
|
Insurance |
|
258,680 |
|
185,290 |
|
443,970 |
| |||
Pension |
|
426,448 |
|
289,787 |
|
716,235 |
| |||
Other compensation |
|
2,415,208 |
|
1,684,558 |
|
4,099,766 |
| |||
|
|
|
|
|
|
|
| |||
|
|
$ |
6,024,066 |
|
$ |
4,250,552 |
|
$ |
10,274,618 |
|
|
|
|
|
|
|
|
| |||
Depreciation expense |
|
$ |
7,237,271 |
|
$ |
408,175 |
|
$ |
7,645,446 |
|
Amortization expense |
|
$ |
280,873 |
|
$ |
31,373 |
|
$ |
312,246 |
|
20. INCOME TAX
a. A reconciliation between income tax expense computed by applying the statutory income tax rate to income before income tax and income tax payable is as follows:
|
|
Three Months Ended March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Income tax expense computed at statutory income tax rate |
|
$ |
1,924,493 |
|
$ |
2,393,412 |
|
Add (deduct) tax effects of: |
|
|
|
|
| ||
Permanent differences |
|
(96,598 |
) |
(80,895 |
) | ||
Temporary differences |
|
79,073 |
|
20,392 |
| ||
10% undistributed earning tax |
|
|
|
46 |
| ||
Investment tax credits |
|
(78,918 |
) |
(55,001 |
) | ||
|
|
|
|
|
| ||
Income tax payable |
|
$ |
1,828,050 |
|
$ |
2,277,954 |
|
b. Income tax expense consisted of the following:
|
|
Three Months Ended March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Income tax payable |
|
$ |
1,828,050 |
|
$ |
2,277,954 |
|
Income tax - deferred |
|
(1,659 |
) |
(34,354 |
) | ||
Adjustments of prior years income tax |
|
|
|
428 |
| ||
Foreign income tax |
|
4,651 |
|
|
| ||
|
|
|
|
|
| ||
Income tax |
|
$ |
1,831,042 |
|
$ |
2,244,028 |
|
c. Net deferred income tax assets (liabilities) consisted of the following:
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Current |
|
|
|
|
| ||
Provision for doubtful accounts |
|
$ |
254,258 |
|
$ |
225,762 |
|
Unrealized accrued expense |
|
26,590 |
|
50,620 |
| ||
Valuation loss on inventory |
|
15,913 |
|
10,915 |
| ||
Unrealized foreign exchange loss, net |
|
5,811 |
|
17,873 |
| ||
Valuation loss (gain) on financial instruments, net |
|
(3,087 |
) |
969 |
| ||
Others |
|
|
|
940 |
| ||
|
|
299,485 |
|
307,079 |
| ||
Valuation allowance |
|
(254,258 |
) |
(225,762 |
) | ||
|
|
|
|
|
| ||
Net deferred income tax assets - current |
|
$ |
45,227 |
|
$ |
81,317 |
|
|
|
|
|
|
| ||
Noncurrent |
|
|
|
|
| ||
Accrued pension cost |
|
$ |
252,591 |
|
$ |
305,970 |
|
Impairment loss |
|
10,514 |
|
61,393 |
| ||
Abandonment of equipment not approved by National Tax Administration |
|
107 |
|
37,562 |
| ||
|
|
|
|
|
| ||
Net deferred income tax assets - noncurrent |
|
$ |
263,212 |
|
$ |
404,925 |
|
d. The related information under the Integrated Income Tax System is as follows:
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Balance of Imputation Credit Account (ICA) |
|
$ |
4,831,010 |
|
$ |
4,483,339 |
|
The estimated and the actual creditable ratios distribution of Chunghwas of 2011 and 2010 for earnings were 17.43% and 18.76%, respectively. The imputation credit allocated to stockholders is based on its balance as of the date of dividend distribution. The estimated creditable ratio may change when the actual distribution of imputation credit is made.
e. Undistributed earnings information
As of March 31, 2012 and 2011, all Chunghwas earnings generated prior to June 30, 1998 have been appropriated.
Income tax returns through the year ended December 31, 2007 have been examined by the ROC tax authorities.
21. EARNINGS PER SHARE
|
|
Amount (Numerator) |
|
Weighted- |
|
Earnings Per Share |
| ||||||||
|
|
Income |
|
Net Income |
|
Common Shares |
|
Income |
|
Net Income |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Three months ended March 31, 2012 |
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic EPS |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders |
|
$ |
11,320,545 |
|
$ |
9,489,503 |
|
7,757,447 |
|
$ |
1.46 |
|
$ |
1.22 |
|
Effect of dilutive potential common stock |
|
|
|
|
|
|
|
|
|
|
| ||||
SENAOs stock options |
|
(2,254 |
) |
(2,254 |
) |
|
|
|
|
|
| ||||
Employee bonus |
|
|
|
|
|
25,386 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders (including effect of dilutive potential common stock) |
|
$ |
11,318,291 |
|
$ |
9,487,249 |
|
7,782,833 |
|
$ |
1.45 |
|
$ |
1.22 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Three months ended March 31, 2011 |
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic EPS: |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders |
|
$ |
14,078,894 |
|
$ |
11,834,866 |
|
7,886,737 |
|
$ |
1.79 |
|
$ |
1.50 |
|
Effect of dilutive potential common stock |
|
|
|
|
|
|
|
|
|
|
| ||||
SENAOs stock options |
|
(1,685 |
) |
(1,685 |
) |
|
|
|
|
|
| ||||
Employee bonus |
|
|
|
|
|
27,383 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders (including effect of dilutive potential common stock) |
|
$ |
14,077,209 |
|
$ |
11,833,181 |
|
7,914,120 |
|
$ |
1.78 |
|
$ |
1.50 |
|
In March 2007, the ARDF issued an Interpretation 96-052 that requires companies to recognize bonuses paid to employees, directors and supervisors as an expense rather than an appropriation of earnings beginning from January 1, 2008. According to the Interpretation 97-169 issued by ARDF in May 2008, Chunghwa presumed that the employee bonuses to be paid will be settled in shares and takes those shares into consideration when calculating the weighted average number of outstanding shares used in the calculation of diluted EPS if the shares have a dilutive effect for the three months ended March 31, 2012 and 2011. The number of shares is calculated by dividing the amount of bonuses by the closing price of the Chunghwas shares of the balance sheet date. The dilutive effect of the shares needs to be considered until the stockholders resolve the number of shares to be distributed to employees in their meeting in the following year.
The diluted earnings per share for the three months ended March 31, 2012 and 2011 was due to the effect of potential common stock of stock options by SENAO.
22. PENSION PLAN
Chunghwa completed privatization plans on August 12, 2005. Chunghwa is required to pay all accrued pension obligations including service clearance payment, lump sum payment under civil service plan, additional separation payments, etc. upon the completion of the privatization in accordance with the Statute Governing Privatization of Stated-owned Enterprises. After paying all pension obligations for privatization, the plan assets of Chunghwa should be transferred to the Fund for Privatization of Government-owned Enterprises (the Privatization Fund) under the Executive Yuan. On August 7, 2006, Chunghwa transferred the remaining balance of fund to the Privatization Fund. However, according to the instructions of MOTC, Chunghwa is requested to pay all accrued pension obligations including service clearance payment, lump sum payment under civil service plan, additional separation payments, etc. on behalf of the MOTC upon the completion of the privatization.
The pension plan under the Labor Pension Act of ROC (the LPA) is considered as a defined contribution plan. Based on the LPA, Chunghwa makes monthly contributions to employees individual pension accounts at 6% of monthly salaries and wages.
Chunghwas pension plan is considered as a defined benefit plan under the Labor Standards Law that provide benefits based on an employees length of service and average six-month salary prior to retirement. Chunghwa contributes an amount at 15% or less of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the names of the Committees in the Bank of Taiwan.
The balance of Chunghwas plan assets subject to defined benefit plan were $16,220,530 thousand and $13,555,483 thousand as of March 31, 2012 and 2011, respectively.
Pension costs of Chunghwa were $765,085 thousand ($723,943 thousand subject to defined benefit plan and $41,142 thousand subject to defined contribution plan) and $735,911 thousand ($700,897 thousand subject to defined benefit plan and $35,014 thousand subject to defined contribution plan) for the three months ended March 31, 2012 and 2011, respectively.
23. TRANSACTIONS WITH RELATED PARTIES
The ROC Government, one of Chunghwas customers held significant equity interest in Chunghwa. Chunghwa provides fixed-line services, wireless services, Internet and data and other services to the various departments and institutions of the ROC Government and other state-owned enterprises in the normal course of business and at arms-length prices. The information on service revenues from government bodies and related organizations have not been provided because details of the type of transactions were not summarized by Chunghwa. Chunghwa believes that all costs of doing business are reflected in the financial statements.
a. Chunghwa engages in business transactions with the following related parties:
Company |
|
Relationship |
|
|
|
Senao International Co., Ltd. (SENAO) |
|
Subsidiary |
Light Era Development Co., Ltd. (LED) |
|
Subsidiary |
Chunghwa Telecom Singapore Pte., Ltd. (CHTS) |
|
Subsidiary |
CHIEF Telecom, Inc. (CHIEF) |
|
Subsidiary |
Chunghwa Telecom Japan Co., Ltd. (CHTJ) |
|
Subsidiary |
Chunghwa International Yellow Pages Co., Ltd. (CIYP) |
|
Subsidiary |
Chunghwa System Integration Co., Ltd. (CHSI) |
|
Subsidiary |
Spring House Entertainment Inc. (SHE) |
|
Subsidiary |
(Continued)
Company |
|
Relationship |
|
|
|
Chunghwa Telecom Global, Inc. (CHTG) |
|
Subsidiary |
Donghwa Telecom Co., Ltd. (DHT) |
|
Subsidiary |
New Prospect Investments Holdings Ltd. (B.V.I.) (New Prospect) |
|
Subsidiary |
Prime Asia Investments Group Ltd. (B.V.I.) (Prime Asia) |
|
Subsidiary |
Chunghwa Investment Co., Ltd. (CHI) |
|
Subsidiary |
Chunghwa Telecom Vietnam Co., Ltd. (CHTV) |
|
Subsidiary |
Chunghwa Sochamp Technology Inc. (CHST) |
|
Subsidiary |
Smartfun Digital Co., Ltd. (SFD) |
|
Subsidiary |
Chunghwa Investment Holding Co., Ltd. (CIHC) |
|
Subsidiary of CHI |
Chunghwa Precision Test Tech. Co., Ltd. (CHPT) |
|
Subsidiary of CHI |
Unigate Telecom Inc. (Unigate) |
|
Subsidiary of CHIEF |
Chief International Corp. (CIC) |
|
Subsidiary of CHIEF |
Concord Technology Co., Ltd. (Concord) |
|
Subsidiary of CHSI |
Glory Network System Service (Shanghai) Co., Ltd. (Glory) |
|
Subsidiary of Concord |
Senao International (Samoa) Holding Ltd. (SIS) |
|
Subsidiary of SENAO |
Senao International HK Limited (SIHK) |
|
Subsidiary of SIS |
CHI One Investment Co., Ltd. (COI) |
|
Subsidiary of CIHC |
Yao Yong Real Property Co., Ltd. (YYRP) |
|
Subsidiary of LED |
Chunghwa Precision Test Tech. USA Corporation (CHPT (US)) |
|
Subsidiary of CHPT |
Chunghwa Hsingta Company Ltd. (CHC) |
|
Subsidiary of Prime Asia |
Jiangsu Zhenhua Information Technology Company, LLC (JZIT) |
|
Subsidiary of CHC |
Chunghwa Telecom (China) Co., Ltd. (CTC) |
|
Subsidiary of CHC |
Senao Trading (Fujian) Co., Ltd. (STF) |
|
Subsidiary of SENAO |
Senao International Trading (Shanghai) Co., Ltd. (SITS) |
|
Subsidiary of SENAO |
Senao International Trading (Jiangsu) Co., Ltd. (SITJ) |
|
Subsidiary of SENAO |
Senao International Trading (Shanghai) Co., Ltd. (SEITS) |
|
Subsidiary of SENAO |
Ceylon Innovation Co., Ltd. (CEI) |
|
Subsidiary of SHE |
Taiwan International Standard Electronics Co., Ltd. (TISE) |
|
Equity-method investee |
So-net Entertainment Taiwan Co., Ltd. (So-net) |
|
Equity-method investee |
Skysoft Co., Ltd. (SKYSOFT) |
|
Equity-method investee |
KingWaytek Technology Co., Ltd. (KWT) |
|
Equity-method investee |
Viettel-CHT Co., Ltd. (Viettel-CHT) |
|
Equity-method investee |
Huada Digital Corporation (HDD) |
|
Equity-method investee |
International Integrated System, Inc. (IISI) |
|
Equity-method investee, which was a subsidiary of Chunghwa before Chunghwa lost control over IISI on June 24, 2011 |
Senao Networks, Inc. (SNI) |
|
Equity-method investee of SENAO |
ST-2 Satellite Ventures Pte., Ltd. (STS) |
|
Equity-method investee of CHTS |
Xiamen Sertec Business Technology Co., Ltd. (Sertec) |
|
Equity-method investee of COI |
(Concluded)
b. Significant transactions with the above related parties are summarized as follows:
|
|
March 31 |
| ||||||||
|
|
2012 |
|
2011 |
| ||||||
|
|
Amount |
|
% |
|
Amount |
|
% |
| ||
|
|
|
|
|
|
|
|
|
| ||
1) Receivables |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Trade notes, accounts receivable and other receivables |
|
|
|
|
|
|
|
|
| ||
SENAO |
|
$ |
302,121 |
|
65 |
|
$ |
319,609 |
|
66 |
|
So-net |
|
33,460 |
|
7 |
|
8,735 |
|
2 |
| ||
CHIEF |
|
32,918 |
|
7 |
|
29,711 |
|
6 |
| ||
DHT |
|
31,499 |
|
7 |
|
36,671 |
|
8 |
| ||
CHTG |
|
19,056 |
|
4 |
|
25,206 |
|
5 |
| ||
CIYP |
|
17,171 |
|
4 |
|
20,849 |
|
4 |
| ||
CHSI |
|
10,963 |
|
2 |
|
12,907 |
|
3 |
| ||
SHE |
|
685 |
|
|
|
14,167 |
|
3 |
| ||
Others |
|
14,657 |
|
4 |
|
13,458 |
|
3 |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
462,530 |
|
100 |
|
$ |
481,313 |
|
100 |
|
|
|
|
|
|
|
|
|
|
| ||
2) Payables |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Trade notes payable, accounts payable and accrued expenses |
|
|
|
|
|
|
|
|
| ||
SENAO |
|
$ |
1,137,849 |
|
46 |
|
$ |
836,679 |
|
52 |
|
CHSI |
|
325,321 |
|
13 |
|
123,751 |
|
8 |
| ||
STS |
|
132,325 |
|
5 |
|
|
|
|
| ||
IISI |
|
100,201 |
|
4 |
|
30,881 |
|
2 |
| ||
DHT |
|
81,273 |
|
3 |
|
61,634 |
|
4 |
| ||
CHTG |
|
65,671 |
|
3 |
|
45,039 |
|
3 |
| ||
TISE |
|
64,855 |
|
3 |
|
109,775 |
|
7 |
| ||
CHIEF |
|
48,044 |
|
2 |
|
43,349 |
|
3 |
| ||
CIYP |
|
16,677 |
|
1 |
|
28,252 |
|
2 |
| ||
Others |
|
38,673 |
|
2 |
|
64,392 |
|
3 |
| ||
|
|
2,010,889 |
|
82 |
|
1,343,752 |
|
84 |
| ||
Amounts collected in trust for others |
|
|
|
|
|
|
|
|
| ||
SENAO |
|
355,862 |
|
14 |
|
235,102 |
|
15 |
| ||
SHE |
|
35,070 |
|
2 |
|
|
|
|
| ||
So-net |
|
22,896 |
|
1 |
|
45 |
|
|
| ||
CIYP |
|
22,850 |
|
1 |
|
4,747 |
|
|
| ||
SKYSOFT |
|
11,556 |
|
|
|
13,753 |
|
1 |
| ||
Others |
|
5,937 |
|
|
|
792 |
|
|
| ||
|
|
454,171 |
|
18 |
|
254,439 |
|
16 |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
2,465,060 |
|
100 |
|
$ |
1,598,191 |
|
100 |
|
|
|
|
|
|
|
|
|
|
| ||
3) Customers deposits |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
CHTG |
|
$ |
14,481 |
|
1 |
|
$ |
14,429 |
|
|
|
CHSI |
|
14,030 |
|
|
|
21,566 |
|
1 |
| ||
Others |
|
3,244 |
|
|
|
3,844 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
31,755 |
|
1 |
|
$ |
39,839 |
|
1 |
|
|
|
Three Months Ended March 31 |
| ||||||||
|
|
2012 |
|
2011 |
| ||||||
|
|
Amount |
|
% |
|
Amount |
|
% |
| ||
|
|
|
|
|
|
|
|
|
| ||
4) Revenues |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
So-net |
|
$ |
91,924 |
|
1 |
|
$ |
42,131 |
|
|
|
SENAO |
|
76,366 |
|
|
|
305,409 |
|
1 |
| ||
CHIEF |
|
61,981 |
|
|
|
76,770 |
|
|
| ||
DHT |
|
31,136 |
|
|
|
25,753 |
|
|
| ||
CHTG |
|
19,378 |
|
|
|
24,216 |
|
|
| ||
CHTS |
|
14,559 |
|
|
|
10,657 |
|
|
| ||
CHTJ |
|
7,697 |
|
|
|
10,635 |
|
|
| ||
LED |
|
627 |
|
|
|
98,668 |
|
|
| ||
Others |
|
21,655 |
|
|
|
18,836 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
325,323 |
|
1 |
|
$ |
613,075 |
|
1 |
|
|
|
|
|
|
|
|
|
|
| ||
5) Operating costs and expenses |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
SENAO |
|
$ |
2,391,632 |
|
6 |
|
$ |
1,650,294 |
|
5 |
|
CHSI |
|
235,111 |
|
1 |
|
67,488 |
|
|
| ||
STS |
|
101,625 |
|
1 |
|
|
|
|
| ||
TISE |
|
91,887 |
|
|
|
94,940 |
|
|
| ||
CHIEF |
|
87,043 |
|
|
|
74,540 |
|
|
| ||
CHTG |
|
66,108 |
|
|
|
44,907 |
|
|
| ||
IISI |
|
52,882 |
|
|
|
38,364 |
|
|
| ||
DHT |
|
31,818 |
|
|
|
15,522 |
|
|
| ||
CIYP |
|
27,025 |
|
|
|
6,526 |
|
|
| ||
SKYSOFT |
|
22,225 |
|
|
|
13,240 |
|
|
| ||
CHTJ |
|
17,478 |
|
|
|
11,110 |
|
|
| ||
Others |
|
23,297 |
|
|
|
26,081 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
3,148,131 |
|
8 |
|
$ |
2,043,012 |
|
5 |
|
|
|
|
|
|
|
|
|
|
| ||
6) Acquisition of property, plant and equipment |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
CHSI |
|
$ |
243,695 |
|
4 |
|
$ |
133,468 |
|
3 |
|
TISE |
|
34,064 |
|
1 |
|
37,639 |
|
1 |
| ||
CHTG |
|
23,805 |
|
|
|
6,069 |
|
|
| ||
Others |
|
8,378 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
309,942 |
|
5 |
|
$ |
177,176 |
|
4 |
|
Chunghwa has entered into a contract with ST-2 Satellite Ventures Pte., Ltd. on March 12, 2010 to lease capacity on the ST-2 satellite. This lease term is 15 years which will start from the commercial operation of ST-2 satellite and the total contract value is approximately $6,000,000 thousand (SG$260,723 thousand), which included a prepayment of $3,067,711 thousand, and the rest of amount will be paid annually when ST-2 satellite starts its commercial operation. ST-2 satellite was launched in May 2011, and began its commercial operation in August 2011. The total rental expense for the three months ended March 31, 2012 was $101,625 thousand, which consisted of a reduction of the prepayment of $51,128 thousand and an additional accrual of $50,497 thousand. The prepayment was $2,931,369 thousand (classified as other current assets $204,514 thousand, and other assets - others $2,726,855 thousand) as of December 31, 2011.
Chunghwa has leased property to LED since April 2010. The lease term is 15 years and the rent is charged monthly. Based on the agreement of both parties, the lease contract was terminated on April 1, 2011.
Chunghwa sold the land with a carrying value of $936,016 thousand to LED at the price of $2,421,932 thousand in 2008. However, since the gain on disposal of land amounting to $1,485,916 thousand is unrealized, the gain was recognized as deferred credit - profit on intercompany transactions. Gain on disposal of land $76,811 thousand and $13,264 thousand were recognized in the three months ended March 31, 2012 and 2011, respectively. The unrealized gain on disposal of land amounted to $462,432 thousand (classified as deferred credit profit on intercompany transactions) in the three months ended March 31, 2012.
Chunghwa sold the land with a carrying value of $378,927 thousand to LED at price of $207,030 thousand in 2008 and resulted in a disposal loss amounting to $171,897 thousand. The disposal loss on land is unrealized and the unrealized loss is included in other assets - other. Chunghwa recognized realized loss on disposal of land amounting to 69,704 thousand in the three months ended March 31, 2012. The unrealized loss on disposal of land amounted to $102,193 thousand (classified as other assets - others) in the three months ended March 31, 2012.
The foregoing transactions with related parties were determined in accordance with mutual agreements.
24. SIGNIFICANT COMMITMENTS AND CONTINGENCIES
As of March 31, 2012 in addition to those disclosed in other notes, Chunghwas remaining commitments under non-cancellable contracts with various parties were as follows:
a. Acquisitions of land and buildings of $2,598 thousand.
b. Acquisitions of telecommunications equipment of $22,109,021 thousand.
c. Contracts to print billing, envelopes and telephone directories of $17,401 thousand.
d. Chunghwa also has non-cancelable operating leases covering certain buildings, computers, computer peripheral equipment and operation system software under contracts that expire in various years. Future leases payments were as follows:
Year |
|
Rental Amount |
| |
|
|
|
| |
2012 (from April 1, 2012 to December 31, 2012) |
|
$ |
1,450,162 |
|
2013 |
|
1,394,647 |
| |
2014 |
|
1,130,355 |
| |
2015 |
|
894,192 |
| |
2016 and thereafter |
|
897,267 |
| |
e. A commitment to contribute $2,000,000 thousand to a Piping Fund administered by the Taipei City Government, of which $1,000,000 thousand was contributed by Chunghwa on August 15, 1996 (classified as long-term investment - other monetary assets). If the fund is not sufficient, Chunghwa will contribute the remaining $1,000,000 thousand upon notification from the Taipei City Government.
25. FAIR VALUE OF FINANCIAL INSTRUMENTS
a. Carrying amount and fair value of financial instruments were as follows:
|
|
March 31 |
| ||||||||||
|
|
2012 |
|
2011 |
| ||||||||
|
|
Carrying |
|
|
|
Carrying |
|
|
| ||||
|
|
Amount |
|
Fair Value |
|
Amount |
|
Fair Value |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Assets |
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents |
|
$ |
63,584,152 |
|
$ |
63,584,152 |
|
$ |
69,829,156 |
|
$ |
69,829,156 |
|
Financial assets at fair value through profit or loss |
|
18,674 |
|
18,674 |
|
645 |
|
645 |
| ||||
Available-for-sale financial assets - current |
|
2,152,235 |
|
2,152,235 |
|
1,023,820 |
|
1,023,820 |
| ||||
Held-to-maturity financial assets - current |
|
500,266 |
|
500,266 |
|
2,062,915 |
|
2,062,915 |
| ||||
Trade notes and accounts receivable, net |
|
20,254,838 |
|
20,254,838 |
|
17,945,843 |
|
17,945,843 |
| ||||
Receivables from related parties |
|
462,530 |
|
462,530 |
|
481,313 |
|
481,313 |
| ||||
Other current monetary assets |
|
1,493,772 |
|
1,493,772 |
|
2,552,532 |
|
2,552,532 |
| ||||
Financial assets carried at cost |
|
2,244,593 |
|
|
|
2,315,474 |
|
|
| ||||
Available-for-sale financial assets - noncurrent |
|
3,137,103 |
|
3,137,103 |
|
|
|
|
| ||||
Held-to-maturity financial assets - noncurrent |
|
14,590,889 |
|
14,590,889 |
|
9,973,059 |
|
9,973,059 |
| ||||
Other noncurrent monetary assets |
|
1,000,000 |
|
1,000,000 |
|
1,000,000 |
|
1,000,000 |
| ||||
Refundable deposits |
|
1,538,286 |
|
1,538,286 |
|
1,300,964 |
|
1,300,964 |
| ||||
Liabilities |
|
|
|
|
|
|
|
|
| ||||
Financial liabilities at fair value through profit or loss |
|
517 |
|
517 |
|
6,348 |
|
6,348 |
| ||||
Trade notes and accounts payable |
|
9,566,452 |
|
9,566,452 |
|
6,904,997 |
|
6,904,997 |
| ||||
Payables to related parties |
|
2,465,060 |
|
2,465,060 |
|
1,598,191 |
|
1,598,191 |
| ||||
Accrued expenses |
|
13,935,771 |
|
13,935,771 |
|
14,904,629 |
|
14,904,629 |
| ||||
Payables to equipment suppliers (included in other current liabilities) |
|
1,755,250 |
|
1,755,250 |
|
1,304,355 |
|
1,304,355 |
| ||||
Amounts collected in trust for others (included in other current liabilities) |
|
1,337,089 |
|
1,337,089 |
|
1,413,985 |
|
1,413,985 |
| ||||
Payables to contractors (included in other current liabilities) |
|
1,247,230 |
|
1,247,230 |
|
697,783 |
|
697,783 |
| ||||
Refundable customers deposits (included in other current liabilities) |
|
1,081,913 |
|
1,081,913 |
|
1,102,520 |
|
1,102,520 |
| ||||
Customers deposits |
|
4,901,460 |
|
4,901,460 |
|
5,788,928 |
|
5,788,928 |
| ||||
b. Methods and assumptions used in the estimation of fair values of financial instruments:
1) The fair values of certain financial instruments recognized in the balance sheet generally correspond to the market prices of the financial assets. Because of the short maturities of these instruments, the carrying value represents a reasonable basis to estimate fair values. This method does not apply to the financial instruments discussed in Notes 2 and 3 below.
2) If the financial instruments have quoted market prices in an active market, the quoted market prices are viewed as fair values. If the market prices of the available-for-sale financial assets are not readily available, valuation techniques are used incorporating estimates and assumptions that are consistent with prevailing market conditions.
3) Financial assets carried at cost are investments in nonlisted shares, which have no quoted prices in an active market and entail an unreasonably high cost to obtain verifiable fair values. Therefore, no fair value is presented.
c. Fair values of financial assets and liabilities using quoted market prices or valuation techniques were as follows:
|
|
Amount Based on |
|
Amount Determined Using |
| ||||||||
|
|
March 31 |
|
March 31 |
| ||||||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Assets |
|
|
|
|
|
|
|
|
| ||||
Financial assets at fair value through profit or loss |
|
$ |
|
|
$ |
|
|
$ |
18,674 |
|
$ |
645 |
|
Available-for-sale financial assets |
|
5,289,338 |
|
1,023,820 |
|
|
|
|
| ||||
Liabilities |
|
|
|
|
|
|
|
|
| ||||
Financial liabilities at fair value through profit or loss |
|
|
|
|
|
517 |
|
6,348 |
| ||||
d. Information about financial risks
1) Market risk
The foreign exchange rate fluctuations would result in Chunghwas foreign-currency-dominated assets and liabilities, outstanding currency swap contracts exposed to rate risk.
The financial instruments categorized as available-for-sale financial assets are mainly listed stocks and open-end mutual funds. Therefore, the market risk is the fluctuations of market price. In order to manage this risk, Chunghwa would assess the risk before investing, therefore, no material market risk are anticipated.
2) Credit risk
Credit risk represents the potential loss that would be incurred by Chunghwa if the counter-parties or third-parties breached contracts. Financial instruments with positive fair values at the balance sheet date are evaluated for credit risk. The counter-parties or third-parties of the aforementioned financial instruments are reputable financial institutions and corporations. Management does not expect Chunghwas exposure to default by those parties to be material.
3) Liquidation risk
Chunghwa has sufficient operating capital to meet cash needs upon settlement of derivative financial instruments. Therefore, the liquidation risk is low.
The financial instruments of the Company categorized as available-for-sale financial assets are publicly-traded, easily converted to cash. Therefore, no material liquidation risk are anticipated. The financial instruments categorized as financial assets carried at cost are investments that do not have a quoted market price in an active market. Therefore, material liquidation risk is anticipated.
4) Cash flow interest rate risk
Chunghwa engages in investments in fixed-interest-rate debt securities. Therefore, cash flows from such securities are not expected to fluctuate significantly due to changes in market interest rates.
According to the regulations of Securities and Futures Bureau, Chunghwa should disclose the derivative transactions of Chunghwas investees, SENAO and CHI, which was as follows:
1) Holding period and contract amounts
SENAO and CHI entered into forward exchange contracts and index future contracts to reduce the exposure to foreign currency risk and price risk.
The outstanding forward exchange contracts of SENAO as of March 31, 2012 and 2011 were as follows:
|
|
|
|
|
|
Contract |
|
|
|
|
|
|
|
Amount |
|
|
|
Currency |
|
Maturity Period |
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contract - buy |
|
NT$/US$ |
|
2012.4 |
|
NT$310,184/US$10,500 |
|
|
|
|
|
|
|
|
|
March 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contract - buy |
|
NT$/US$ |
|
2011.4 |
|
NT$347,760/US$11,800 |
|
Outstanding index future contracts of CHI as of March 31, 2012 and 2011 were as follows:
|
|
|
|
|
|
Contract |
| ||
|
|
Maturity Period |
|
Units |
|
(In Thousands) |
| ||
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAIEX futures |
|
2012.04 |
|
6 |
|
|
NT$ |
9,463 |
|
TAIEX futures |
|
2012.06 |
|
34 |
|
|
NT$ |
53,664 |
|
TE futures |
|
2012.04 |
|
9 |
|
|
NT$ |
10,849 |
|
TF |
|
2012.04 |
|
5 |
|
|
NT$ |
77,965 |
|
|
|
|
|
|
|
|
|
|
|
March 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAIEX futures |
|
2011.04 |
|
14 |
|
|
NT$ |
23,788 |
|
TAIEX futures |
|
2011.06 |
|
12 |
|
|
NT$ |
21,171 |
|
TE futures |
|
2011.04 |
|
4 |
|
|
NT$ |
5,034 |
|
TE futures |
|
2011.05 |
|
21 |
|
|
NT$ |
26,504 |
|
Net loss of SANEO arising from derivative financial products for the three months ended March 31, 2012 and 2011 were $6,221 thousand and $760 thousand, respectively.
Net gain (loss) of CHI arising from derivative financial products for the three months ended March 31, 2012 and 2011 were $17,772 thousand and $(447) thousand, respectively.
2) Market risk
The foreign exchange rate fluctuations would result in SENAOs foreign-currency-dominated assets and liabilities and open forward exchange contracts exposed to rate risk.
The fluctuations of market price would result in CHIs index future contracts exposed to price risk.
3) Credit risk
Credit risk represents the potential loss that would be incurred by SENAO and CHI if the counter-parties or third-parties breached contracts. Financial instruments with positive fair values at the balance sheet date are evaluated for credit risk. The counter-parties or third-parties to the aforementioned financial instruments are reputable financial institutions. Management does not expect SENAOs and CHIs exposure to default by those parties to be material. The largest amount of exposure to default by those parties of the financial instruments of SENAO and CHI is the same as carrying value.
4) Liquidation risk
SENAO and CHI have sufficient operating capital to meet cash needs upon settlement of derivative financial instruments. Therefore, the liquidation risk is low.
26. ADDITIONAL DISCLOSURES
Following are the additional disclosures required by the SFC for Chunghwa and its investees:
a. Financing provided: None.
b. Endorsements/guarantees provided: Please see Table 1.
c. Marketable securities held: Please see Table 2.
d. Marketable securities acquired and disposed of at costs or prices at least $100 million or 20% of the paid-in capital: Please see Table 3.
e. Acquisition of individual real estate at costs of at least $100 million or 20% of the paid-in capital: None.
f. Disposal of individual real estate at prices of at least $100 million or 20% of the paid-in capital: None.
g. Total purchases from or sales to related parties amounting to at least $100 million or 20% of the paid-in capital: Please see Table 4.
h. Receivables from related parties amounting to $100 million or 20% of the paid-in capital: Please see Table 5.
i. Names, locations, and other information of investees on which Chunghwa exercises significant influence: Please see Table 6.
j. Financial transactions: Please see Notes 5 and 25.
k. Investment in Mainland China: Please see Table 7.
27. SEGMENT FINANCIAL INFORMATION
Segment information: Please see Table 8.
28. OTHERS
The significant information of foreign-currency financial assets and liabilities as below:
|
|
March 31 |
| ||||||||||||||
|
|
2012 |
|
2011 |
| ||||||||||||
|
|
Foreign |
|
Exchange Rate |
|
New Taiwan |
|
Foreign |
|
Exchange Rate |
|
New Taiwan |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Monetary items |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cash |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
|
$ |
6,395 |
|
29.51 |
|
$ |
188,727 |
|
$ |
4,480 |
|
29.40 |
|
$ |
131,723 |
|
SGD |
|
|
|
|
|
|
|
9,084 |
|
23.34 |
|
212,018 |
| ||||
Available-for-sale financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
|
72,932 |
|
29.51 |
|
2,152,235 |
|
34,824 |
|
29.40 |
|
1,023,820 |
| ||||
Accounts receivable |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
|
179,027 |
|
29.51 |
|
5,283,099 |
|
138,432 |
|
29.40 |
|
4,069,898 |
| ||||
Investments accounted for using equity method |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
|
3,078 |
|
29.51 |
|
90,832 |
|
8,296 |
|
29.40 |
|
243,912 |
| ||||
HKD |
|
229,189 |
|
3.80 |
|
870,919 |
|
133,704 |
|
3.78 |
|
505,001 |
| ||||
SGD |
|
29,411 |
|
23.49 |
|
690,872 |
|
26,415 |
|
23.34 |
|
616,537 |
| ||||
JPY |
|
63,636 |
|
0.36 |
|
22,858 |
|
44,490 |
|
0.36 |
|
15,794 |
| ||||
VND |
|
212,625,547 |
|
0.00137 |
|
291,297 |
|
175,177,701 |
|
0.00136 |
|
238,242 |
| ||||
RMB |
|
37,292 |
|
4.69 |
|
174,899 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Monetary items |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Payables |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
|
151,486 |
|
29.51 |
|
4,470,343 |
|
103,379 |
|
29.40 |
|
3,039,349 |
| ||||
EUR |
|
32,498 |
|
39.41 |
|
1,280,740 |
|
23,545 |
|
41.71 |
|
982,081 |
| ||||
SGD |
|
5,708 |
|
23.49 |
|
134,088 |
|
125 |
|
23.34 |
|
2,913 |
| ||||
29. PRE-DISCLOSURE FOR ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS
Under Rule No. 0990004943 issued by the Financial Supervisory Commission (FSC) on February 2, 2010, the Company pre-disclosed the information on the adoption of International Financial Reporting Standards (IFRSs) and assessed the material differences between the existing accounting policies and the accounting policies to be adopted under IFRSs in the consolidated financial statements as of and for the three months ended March 31, 2012.
TABLE 1
CHUNGHWA TELECOM CO., LTD.
ENDORSEMENTS/GUARANTEES PROVIDED
THREE MONTHS ENDED MARCH 31, 2012
(In Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
Limits on |
|
|
|
|
|
Amount of |
|
Ratio of Accumulated |
|
|
| |||||
|
|
|
|
Guaranteed Party |
|
|
|
Endorsement/ |
|
|
|
|
|
Endorsement/ |
|
Endorsement/ |
|
Maximum |
| |||||
|
|
|
|
|
|
Nature of |
|
Guarantee Amount |
|
|
|
|
|
Guarantee |
|
Guarantee to Net |
|
Endorsement/ |
| |||||
|
|
Endorsement/Guarantee |
|
|
|
Relationship |
|
Provided to Each |
|
Maximum Balance for |
|
|
|
Collateralized by |
|
Equity Per Latest |
|
Guarantee Amount |
| |||||
No. |
|
Provider |
|
Name |
|
(Note 2) |
|
Guaranteed Party |
|
the Year |
|
Ending Balance |
|
Properties |
|
Financial Statements |
|
Allowable |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Donghwa Telecom Co., Ltd. |
|
b |
|
$ |
3,782,990 |
|
$ |
1,031,923 |
|
$ |
954,477 |
|
$ |
|
|
0.3 |
% |
$ |
15,131,959 |
|
|
|
|
|
|
|
|
|
(Note 3) |
|
|
|
(Note 4) |
|
|
|
|
|
(Note 6) |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
25 |
|
Yao Yong Real Property Co., Ltd. |
|
Light Era Development Co., Ltd. |
|
d |
|
3,859,207 |
|
2,150,000 |
|
2,150,000 |
|
2,150,000 |
|
0.5 |
% |
3,859,207 |
| |||||
|
|
|
|
|
|
|
|
(Note 7) |
|
|
|
(Note 5) |
|
(Note 5) |
|
|
|
(Note 7) |
| |||||
Note 1: Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as follows:
a. 0 for the Company.
b. Subsidiaries are numbered from 1.
Note 2: Relationships between the endorsement/guarantee provider and the guaranteed party:
a. Trading partner.
b. Majority owned subsidiary.
c. The Company and subsidiary owns over 50% ownership of the investee company.
d. A subsidiary jointly owned by the Company and the Companys directly-owned subsidiary.
e. Guaranteed by the Company according to the construction contract.
f. An investee company. The guarantees were provided based on the Companys proportionate share in the investee company.
Note 3: The maximum amount of endorsement or guarantee is up to 1% of the total stockholders equity of the financial statements for the three months ended March 31, 2012 of the Company.
Note 4: The actual amount used by guaranteed party is $954,477 thousand.
Note 5: The actual amount used by guaranteed party is $1,650,000 thousand.
Note 6: The maximum amount of endorsement or guarantee is up to 4% of the total stockholders equity of the latest financial statements of the Company.
Note 7: The maximum amount of endorsement or guarantee is up to 200% of the asset value of the latest financial statements of Yao Yong Real Property Co., Ltd.
TABLE 2
CHUNGHWA TELECOM CO., LTD.
MARKETABLE SECURITIES HELD
MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Senao International Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
71,773 |
|
$ |
1,684,305 |
|
28 |
|
$ |
9,904,695 |
|
Note 4 |
| ||
|
|
|
|
Light Era Development Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
300,000 |
|
4,422,825 |
|
100 |
|
4,424,453 |
|
Note 1 |
| ||||
|
|
|
|
Chunghwa Investment Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
178,000 |
|
1,786,637 |
|
89 |
|
1,843,877 |
|
Note 1 |
| ||||
|
|
|
|
Donghwa Telecom Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
223,190 |
|
870,919 |
|
100 |
|
870,919 |
|
Note 1 |
| ||||
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
60,000 |
|
723,715 |
|
100 |
|
684,566 |
|
Note 1 |
| ||||
|
|
|
|
Taiwan International Standard Electronics Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
1,760 |
|
709,852 |
|
40 |
|
992,403 |
|
Note 1 |
| ||||
|
|
|
|
Chunghwa Telecom Singapore Pte., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
26,383 |
|
690,872 |
|
100 |
|
690,872 |
|
Note 1 |
| ||||
|
|
|
|
CHIEF Telecom Inc. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
37,942 |
|
607,343 |
|
69 |
|
550,516 |
|
Note 1 |
| ||||
|
|
|
|
International Integrated System, Inc. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
22,498 |
|
259,520 |
|
33 |
|
239,071 |
|
Note 1 |
| ||||
|
|
|
|
Viettel-CHT Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
|
|
256,560 |
|
30 |
|
256,560 |
|
Note 1 |
| ||||
|
|
|
|
Huada Digital Corporation |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
25,000 |
|
250,778 |
|
50 |
|
250,778 |
|
Note 1 |
| ||||
|
|
|
|
Chunghwa International Yellow Pages Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
15,000 |
|
204,202 |
|
100 |
|
204,202 |
|
Note 1 |
| ||||
|
|
|
|
Prime Asia Investments Group Ltd. (B.V.I.) |
|
Subsidiary |
|
Investments accounted for using equity method |
|
6,960 |
|
174,899 |
|
100 |
|
175,126 |
|
Note 1 |
| ||||
|
|
|
|
Skysoft Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
4,438 |
|
125,290 |
|
30 |
|
87,602 |
|
Note 1 |
| ||||
|
|
|
|
Spring House Entertainment Tech. Inc. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
5,996 |
|
109,623 |
|
56 |
|
96,963 |
|
Note 1 |
| ||||
|
|
|
|
Dian Zuan Integrating Marketing Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
11,464 |
|
108,533 |
|
40 |
|
108,533 |
|
Note 1 |
| ||||
|
|
|
|
Chunghwa Telecom Global, Inc. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
6,000 |
|
90,832 |
|
100 |
|
105,550 |
|
Note 1 |
| ||||
|
|
|
|
Kingwaytek Technology Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
1,703 |
|
76,849 |
|
33 |
|
38,442 |
|
Note 1 |
| ||||
|
|
|
|
Smartfun Digital Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
6,500 |
|
56,461 |
|
65 |
|
56,504 |
|
Note 1 |
| ||||
|
|
|
|
Chunghwa Telecom Vietnam Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
34,737 |
|
100 |
|
34,737 |
|
Note 1 |
| ||||
|
|
|
|
So-net Entertainment Taiwan Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
3,429 |
|
34,644 |
|
30 |
|
17,208 |
|
Note 1 |
| ||||
|
|
|
|
Chunghwa Telecom Japan Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
1 |
|
22,858 |
|
100 |
|
22,858 |
|
Note 1 |
| ||||
|
|
|
|
Chunghwa Sochamp Technology Inc. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
2,040 |
|
18,711 |
|
51 |
|
18,871 |
|
Note 1 |
| ||||
|
|
|
|
New Prospect Investments Holdings Ltd. (B.V.I.) |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
|
|
100 |
|
|
|
Note 2 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(1 dollar |
) |
|
|
US$ |
(1 dollar |
) |
|
| ||
|
|
|
|
Taipei Financial Center Corp. |
|
|
|
Financial assets carried at cost - noncurrent |
|
172,927 |
|
1,789,530 |
|
12 |
|
1,608,027 |
|
Note 1 |
| ||||
|
|
|
|
Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II) |
|
|
|
Financial assets carried at cost - noncurrent |
|
20,000 |
|
200,000 |
|
17 |
|
210,964 |
|
Note 1 |
| ||||
|
|
|
|
Global Mobile Corp. |
|
|
|
Financial assets carried at cost - noncurrent |
|
7,617 |
|
77,018 |
|
3 |
|
65,843 |
|
Note 1 |
| ||||
|
|
|
|
Innovation Works Development Fund, L.P. |
|
|
|
Financial assets carried at cost - noncurrent |
|
|
|
73,154 |
|
4 |
|
71,838 |
|
Note 1 |
| ||||
|
|
|
|
iD Branding Ventures |
|
|
|
Financial assets carried at cost - noncurrent |
|
6,750 |
|
67,500 |
|
8 |
|
62,070 |
|
Note 1 |
| ||||
|
|
|
|
Innovation Works Limited |
|
|
|
Financial assets carried at cost - noncurrent |
|
1,000 |
|
31,391 |
|
2 |
|
36,403 |
|
Note 1 |
| ||||
|
|
|
|
CQi Energy Infocom Inc. |
|
|
|
Financial assets carried at cost - noncurrent |
|
2,000 |
|
6,000 |
|
18 |
|
(128 |
) |
Note 1 |
| ||||
|
|
|
|
RPTI Intergroup International Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
4,765 |
|
|
|
10 |
|
41,413 |
|
Note 1 |
| ||||
|
|
|
|
Essence Technology Solution, Inc. |
|
|
|
Financial assets carried at cost - noncurrent |
|
200 |
|
|
|
7 |
|
638 |
|
Note 1 |
| ||||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Beneficiary certificates (mutual fund) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
HSBC Glbl Emerging Markets Bd A Inc. |
|
|
|
Available-for-sale financial assets |
|
304 |
|
$ |
172,231 |
|
|
|
$ |
178,968 |
|
Note 3 |
|
|
|
|
|
Templeton Global Bond A (Acc) |
|
|
|
Available-for-sale financial assets |
|
418 |
|
307,114 |
|
|
|
322,904 |
|
Note 3 |
| ||
|
|
|
|
PIMCO Global Investment Grade Credit - Ins H Acc |
|
|
|
Available-for-sale financial assets |
|
751 |
|
307,245 |
|
|
|
330,472 |
|
Note 3 |
| ||
|
|
|
|
PIMCO GIS Total Return Bond Fund - H Institutional Class (Acc) |
|
|
|
Available-for-sale financial assets |
|
770 |
|
534,453 |
|
|
|
556,272 |
|
Note 3 |
| ||
|
|
|
|
Janus Flexible Income Bond Fund |
|
|
|
Available-for-sale financial assets |
|
671 |
|
230,472 |
|
|
|
241,150 |
|
Note 3 |
| ||
|
|
|
|
PIMCO GIS Diversified Bond Fund - H Institutional Class (Acc) |
|
|
|
Available-for-sale financial assets |
|
984 |
|
347,452 |
|
|
|
374,450 |
|
Note 3 |
| ||
|
|
|
|
Fidelity Funds - US Dollar Bond Fund Y-ACC-USD |
|
|
|
Available-for-sale financial assets |
|
397 |
|
148,410 |
|
|
|
148,019 |
|
Note 3 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
China Airlines Ltd. |
|
|
|
Available-for-sale financial assets - noncurrent |
|
263,622 |
|
3,092,287 |
|
5 |
|
3,137,103 |
|
Note 4 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Bond |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Taiwan Power Co. 2nd Unsecured Bond-EB Issue in 2005 |
|
|
|
Held-to-maturity financial assets |
|
|
|
307,721 |
|
|
|
307,721 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 2nd Unsecured Bond-EB Issue in 2005 |
|
|
|
Held-to-maturity financial assets |
|
|
|
204,701 |
|
|
|
204,701 |
|
Note 6 |
| ||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bond-B Issue in 2006 |
|
|
|
Held-to-maturity financial assets |
|
|
|
303,708 |
|
|
|
303,708 |
|
Note 6 |
| ||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bond-B Issue in 2006 |
|
|
|
Held-to-maturity financial assets |
|
|
|
404,942 |
|
|
|
404,942 |
|
Note 6 |
| ||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bond-C Issue in 2006 |
|
|
|
Held-to-maturity financial assets |
|
|
|
208,464 |
|
|
|
208,464 |
|
Note 6 |
| ||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bond-C Issue in 2006 |
|
|
|
Held-to-maturity financial assets |
|
|
|
104,149 |
|
|
|
104,149 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 2nd Unsecured Corporate Bond-C Issue in 2006 |
|
|
|
Held-to-maturity financial assets |
|
|
|
209,788 |
|
|
|
209,788 |
|
Note 6 |
| ||
|
|
|
|
Yuanta Securities Co., Ltd. 1st Unsecured Corporate Bonds-B Issue in 2007 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,266 |
|
|
|
200,266 |
|
Note 6 |
| ||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bond-A Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
101,698 |
|
|
|
101,698 |
|
Note 6 |
| ||
|
|
|
|
China Steel Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
101,295 |
|
|
|
101,295 |
|
Note 6 |
| ||
|
|
|
|
China Steel Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,008 |
|
|
|
100,008 |
|
Note 6 |
| ||
|
|
|
|
China Steel Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
101,252 |
|
|
|
101,252 |
|
Note 6 |
| ||
|
|
|
|
China Steel Corporation 2nd Unsecured Corporate Bonds-B Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
309,995 |
|
|
|
309,995 |
|
Note 6 |
| ||
|
|
|
|
China Steel Corporation 2nd Unsecured Corporate Bonds-B Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
205,664 |
|
|
|
205,664 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 2nd Unsecured Corporate Bonds-B Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
152,650 |
|
|
|
152,650 |
|
Note 6 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Taiwan Power Co. 3rd Unsecured Corporate Bond-B Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
$ |
50,521 |
|
|
|
$ |
50,521 |
|
Note 6 |
|
|
|
|
|
Taiwan Power Co. 4th Unsecured Corporate Bond-B Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
204,108 |
|
|
|
204,108 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 7th Unsecured Corporate Bond-A Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
152,854 |
|
|
|
152,854 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 2nd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
402,539 |
|
|
|
402,539 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 3rd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
201,634 |
|
|
|
201,634 |
|
Note 6 |
| ||
|
|
|
|
China Development Financial Holding Corporation 1st Unsecured Corporate Bonds-A Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
101,307 |
|
|
|
101,307 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
99,963 |
|
|
|
99,963 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,903 |
|
|
|
100,903 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
404,691 |
|
|
|
404,691 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
202,908 |
|
|
|
202,908 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
49,975 |
|
|
|
49,975 |
|
Note 6 |
| ||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bonds-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,573 |
|
|
|
200,573 |
|
Note 6 |
| ||
|
|
|
|
FCFC 1st Unsecured Corporate Bonds Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
251,299 |
|
|
|
251,299 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 1st Secured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
40,379 |
|
|
|
40,379 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 1st Secured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,834 |
|
|
|
200,834 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 2nd Secured Corporate Bond-B Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,280 |
|
|
|
100,280 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Company 4th Secured Corporate Bond-B Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
349,187 |
|
|
|
349,187 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Company 5th Secured Corporate Bond-B Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,482 |
|
|
|
100,482 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 1st Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
202,163 |
|
|
|
202,163 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 1st Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
303,034 |
|
|
|
303,034 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 1st Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
99,957 |
|
|
|
99,957 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 3rd Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,448 |
|
|
|
200,448 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 3rd Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
50,255 |
|
|
|
50,255 |
|
Note 6 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
NAN YA Company 4th Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
$ |
302,228 |
|
|
|
$ |
302,228 |
|
Note 6 |
|
|
|
|
|
NAN YA Company 4th Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
199,763 |
|
|
|
199,763 |
|
Note 6 |
| ||
|
|
|
|
MLPC 1st Unsecured Corporate Bond Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
303,470 |
|
|
|
303,470 |
|
Note 6 |
| ||
|
|
|
|
MLPC 1st Unsecured Corporate Bond Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
99,939 |
|
|
|
99,939 |
|
Note 6 |
| ||
|
|
|
|
MLPC 1st Unsecured Corporate Bond Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
99,939 |
|
|
|
99,939 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
201,584 |
|
|
|
201,584 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
303,270 |
|
|
|
303,270 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,440 |
|
|
|
200,440 |
|
Note 6 |
| ||
|
|
|
|
Hon Hai Precision Industry Co., Ltd. First Debenture Issuing of 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
176,447 |
|
|
|
176,447 |
|
Note 6 |
| ||
|
|
|
|
Hon Hai Precision Industry Co., Ltd. First Debenture Issuing of 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,728 |
|
|
|
100,728 |
|
Note 6 |
| ||
|
|
|
|
Hon Hai Precision Industry Co., Ltd. First Debenture Issuing of 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,867 |
|
|
|
100,867 |
|
Note 6 |
| ||
|
|
|
|
FCFC 2st Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,328 |
|
|
|
100,328 |
|
Note 6 |
| ||
|
|
|
|
FCFC 2st Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,932 |
|
|
|
200,932 |
|
Note 6 |
| ||
|
|
|
|
TaipeiFubon Bank 5th Financial Debenturees-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,608 |
|
|
|
100,608 |
|
Note 6 |
| ||
|
|
|
|
TaipeiFubon Bank 5th Financial Debenturees-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
201,523 |
|
|
|
201,523 |
|
Note 6 |
| ||
|
|
|
|
TaipeiFubon Bank 5th Financial Debenturees-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
303,207 |
|
|
|
303,207 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,396 |
|
|
|
100,396 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
302,349 |
|
|
|
302,349 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Company 2nd Secured Corporate Bond-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,207 |
|
|
|
100,207 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co 3rd Secured Corporate Bond-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
201,314 |
|
|
|
201,314 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 4th Secured Corporate Bond-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
199,883 |
|
|
|
199,883 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 4th Secured Corporate Bond-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
99,942 |
|
|
|
99,942 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 4th Secured Corporate Bond-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
300,585 |
|
|
|
300,585 |
|
Note 6 |
| ||
|
|
|
|
Mega Securities Co., Ltd. 1st Unsecured Corporate Bond Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
300,000 |
|
|
|
300,000 |
|
Note 6 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
NAN YA Company 2nd Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
$ |
50,440 |
|
|
|
$ |
50,440 |
|
Note 6 |
| ||
|
|
|
|
China Development Holding Corporation 1st Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
202,556 |
|
|
|
202,556 |
|
Note 6 |
| ||||
|
|
|
|
Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
299,668 |
|
|
|
299,668 |
|
Note 6 |
| ||||
|
|
|
|
Yuanta FHC 1st Unsecured Corporate Bonds-A Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
300,000 |
|
|
|
300,000 |
|
Note 6 |
| ||||
|
|
|
|
China Steel Corporation 1st Unsecured Corporate Bonds Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,430 |
|
|
|
100,430 |
|
Note 6 |
| ||||
|
|
|
|
FCFC 1st Unsecured Corporate Bonds Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
299,460 |
|
|
|
299,460 |
|
Note 6 |
| ||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
299,733 |
|
|
|
299,733 |
|
Note 6 |
| ||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,868 |
|
|
|
100,868 |
|
Note 6 |
| ||||
|
|
|
|
Fubon Financial Holding Co., Ltd. 1st Unsecured Corporate Bond issued in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
302,004 |
|
|
|
302,004 |
|
Note 6 |
| ||||
|
|
|
|
HSBC Bank (Taiwan) Limited 1st Financial Debenture-D Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
300,000 |
|
|
|
300,000 |
|
Note 6 |
| ||||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
149,741 |
|
|
|
149,741 |
|
Note 6 |
| ||||
|
|
|
|
Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
199,626 |
|
|
|
199,626 |
|
Note 6 |
| ||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2012 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,366 |
|
|
|
200,366 |
|
Note 6 |
| ||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2012 |
|
|
|
Held-to-maturity financial assets |
|
|
|
99,906 |
|
|
|
99,906 |
|
Note 6 |
| ||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2012 |
|
|
|
Held-to-maturity financial assets |
|
|
|
199,813 |
|
|
|
199,813 |
|
Note 6 |
| ||||
|
|
|
|
KGI Securities Co., Ltd. 1St Unsecured Corporate Bonds in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
300,000 |
|
|
|
300,000 |
|
Note 6 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
1 |
|
Senao International Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Senao Networks, Inc. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
16,824 |
|
372,310 |
|
41 |
|
372,310 |
|
Note 1 |
| ||||
|
|
|
|
Senao International (Samoa) Holding Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
23,975 |
|
503,403 |
|
100 |
|
503,961 |
|
Note 8 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(17,047 |
) |
|
|
US$ |
(17,066 |
) |
|
| ||
|
|
|
|
N.T.U. Innovation Incubation Corporation |
|
|
|
Financial assets carried at cost - noncurrent |
|
1,200 |
|
12,000 |
|
9 |
|
12,000 |
|
Note 1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
2 |
|
CHIEF Telecom Inc. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Unigate Telecom Inc. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
200 |
|
1,774 |
|
100 |
|
1,774 |
|
Note 1 |
| ||||
|
|
|
|
Chief International Corp. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
200 |
|
10,952 |
|
100 |
|
10,952 |
|
Note 1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(371 |
) |
|
|
US$ |
(371 |
) |
|
| ||
|
|
|
|
3 Link Information Service Co., Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
374 |
|
3,450 |
|
10 |
|
7,022 |
|
Note 1 |
| ||||
|
|
|
|
21Vianet Group. Inc. |
|
|
|
Available-for-sale financial assets |
|
208 |
|
11,595 |
|
|
|
11,595 |
|
Note 4 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(393 |
) |
|
|
US$ |
(393 |
) |
|
| ||
(Continued)
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Coxon Precise Industrial Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
107 |
|
$ |
8,206 |
|
|
|
$ |
4,879 |
|
Note 4 |
|
|
|
|
|
Altek Corp. |
|
|
|
Available-for-sale financial assets |
|
36 |
|
1,824 |
|
|
|
981 |
|
Note 4 |
| ||
|
|
|
|
I-Chiun Precision Industry Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
80 |
|
3,904 |
|
|
|
1,776 |
|
Note 4 |
| ||
|
|
|
|
Taiwan Semiconductor Manufacturing Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
783 |
|
|
|
849 |
|
Note 4 |
| ||
|
|
|
|
Wistron NeWeb Corporation |
|
|
|
Available-for-sale financial assets |
|
57 |
|
4,889 |
|
|
|
3,721 |
|
Note 4 |
| ||
|
|
|
|
MasterLink Securities Corporation |
|
|
|
Available-for-sale financial assets |
|
250 |
|
3,162 |
|
|
|
2,575 |
|
Note 4 |
| ||
|
|
|
|
Chipbond Technology Corporation |
|
|
|
Available-for-sale financial assets |
|
60 |
|
2,724 |
|
|
|
2,295 |
|
Note 4 |
| ||
|
|
|
|
Chung Hwa Pulp Corp. |
|
|
|
Available-for-sale financial assets |
|
74 |
|
1,141 |
|
|
|
816 |
|
Note 4 |
| ||
|
|
|
|
Makalot Industrial Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
15 |
|
1,056 |
|
|
|
1,319 |
|
Note 4 |
| ||
|
|
|
|
Macronix International Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
170 |
|
3,075 |
|
|
|
1,870 |
|
Note 4 |
| ||
|
|
|
|
Thxe Ming Industrial Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
70 |
|
2,609 |
|
|
|
1,999 |
|
Note 4 |
| ||
|
|
|
|
Apex Biotechnology Corp. |
|
|
|
Available-for-sale financial assets |
|
1 |
|
32 |
|
|
|
40 |
|
Note 4 |
| ||
|
|
|
|
Cyberlink Co. |
|
|
|
Available-for-sale financial assets |
|
36 |
|
5,645 |
|
|
|
3,338 |
|
Note 4 |
| ||
|
|
|
|
Optotech Corporation |
|
|
|
Available-for-sale financial assets |
|
190 |
|
3,553 |
|
|
|
2,746 |
|
Note 4 |
| ||
|
|
|
|
Tang Eng Iron Works Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
75 |
|
2,151 |
|
|
|
2,205 |
|
Note 4 |
| ||
|
|
|
|
Yuanta Financial Holdings |
|
|
|
Available-for-sale financial assets |
|
246 |
|
4,599 |
|
|
|
3,771 |
|
Note 4 |
| ||
|
|
|
|
Visual Photonics Epitaxy Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
478 |
|
|
|
559 |
|
Note 4 |
| ||
|
|
|
|
Taiwan PCB Techvest Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
|
|
14 |
|
|
|
11 |
|
Note 4 |
| ||
|
|
|
|
Chung Hung Steel Corporation |
|
|
|
Available-for-sale financial assets |
|
128 |
|
1,543 |
|
|
|
1,323 |
|
Note 4 |
| ||
|
|
|
|
Edison Opto Corporation |
|
|
|
Available-for-sale financial assets |
|
35 |
|
2,671 |
|
|
|
2,162 |
|
Note 4 |
| ||
|
|
|
|
Delta Electronics Inc. |
|
|
|
Available-for-sale financial assets |
|
54 |
|
5,270 |
|
|
|
4,671 |
|
Note 4 |
| ||
|
|
|
|
San Shing Fastech Corp. |
|
|
|
Available-for-sale financial assets |
|
345 |
|
11,766 |
|
|
|
15,870 |
|
Note 4 |
| ||
|
|
|
|
USI Corp. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
293 |
|
|
|
291 |
|
Note 4 |
| ||
|
|
|
|
President Chain Store Corp. |
|
|
|
Available-for-sale financial assets |
|
60 |
|
9,959 |
|
|
|
9,840 |
|
Note 4 |
| ||
|
|
|
|
Champion Microelectronic Corp. |
|
|
|
Available-for-sale financial assets |
|
51 |
|
2,665 |
|
|
|
1,441 |
|
Note 4 |
| ||
|
|
|
|
Unimicron Corporation |
|
|
|
Available-for-sale financial assets |
|
135 |
|
5,289 |
|
|
|
4,941 |
|
Note 4 |
| ||
|
|
|
|
Taiwan Cooperative Bank |
|
|
|
Available-for-sale financial assets |
|
200 |
|
4,443 |
|
|
|
3,694 |
|
Note 4 |
| ||
|
|
|
|
Polaris/P-shares MSCI Taiwan Financial ETF |
|
|
|
Available-for-sale financial assets |
|
230 |
|
2,646 |
|
|
|
2,560 |
|
Note 4 |
| ||
|
|
|
|
Test Rite International Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
221 |
|
5,385 |
|
|
|
4,497 |
|
Note 4 |
| ||
|
|
|
|
Formosa Petrochemical Corporation |
|
|
|
Available-for-sale financial assets |
|
40 |
|
3,651 |
|
|
|
3,680 |
|
Note 4 |
| ||
|
|
|
|
Oriental Union Chemical Corporation |
|
|
|
Available-for-sale financial assets |
|
85 |
|
3,493 |
|
|
|
3,243 |
|
Note 4 |
| ||
|
|
|
|
Huga Optotech Inc. |
|
|
|
Available-for-sale financial assets |
|
78 |
|
1,986 |
|
|
|
1,176 |
|
Note 4 |
| ||
|
|
|
|
Far Eastern Department Stores Ltd. |
|
|
|
Available-for-sale financial assets |
|
105 |
|
4,024 |
|
|
|
3,964 |
|
Note 4 |
| ||
|
|
|
|
MediaTek Inc. |
|
|
|
Available-for-sale financial assets |
|
5 |
|
1,612 |
|
|
|
1,412 |
|
Note 4 |
| ||
|
|
|
|
Career Technology (MFG.) Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
100 |
|
5,208 |
|
|
|
4,750 |
|
Note 4 |
| ||
|
|
|
|
Taimide Technology Ltd. |
|
|
|
Available-for-sale financial assets - noncurrent |
|
712 |
|
17,825 |
|
|
|
32,104 |
|
Note 4 |
| ||
|
|
|
|
PChome Store Inc. |
|
|
|
Available-for-sale financial assets - noncurrent |
|
325 |
|
14,072 |
|
|
|
39,813 |
|
Note 4 |
| ||
|
|
|
|
IC Plus Corp. |
|
|
|
Available-for-sale financial assets - noncurrent |
|
210 |
|
5,630 |
|
|
|
2,632 |
|
Note 4 |
| ||
|
|
|
|
Formosa Plastics Corporation |
|
|
|
Available-for-sale financial assets |
|
36 |
|
3,102 |
|
|
|
3,102 |
|
Note 4 |
| ||
|
|
|
|
Phoenix Tours International, Inc. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
717 |
|
|
|
644 |
|
Note 4 |
| ||
|
|
|
|
Asustek Computer Inc. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
2,351 |
|
|
|
2,785 |
|
Note 4 |
| ||
|
|
|
|
Chunghwa Chemical Synthesis & Biotech Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
50 |
|
3,014 |
|
|
|
2,510 |
|
Note 4 |
| ||
|
|
|
|
Evergreen International Corp. |
|
|
|
Available-for-sale financial assets |
|
110 |
|
1,947 |
|
|
|
1,705 |
|
Note 4 |
| ||
|
|
|
|
Kung Long Batteries Industrial Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
110 |
|
6,269 |
|
|
|
5,687 |
|
Note 4 |
| ||
|
|
|
|
Tingyi (Cayman Islands) Holding Corp. |
|
|
|
Available-for-sale financial assets |
|
60 |
|
2,570 |
|
|
|
2,562 |
|
Note 4 |
| ||
|
|
|
|
Taiwan Mobile Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
70 |
|
6,152 |
|
|
|
6,293 |
|
Note 4 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares (Thousands/ Thousand Units) |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Uni-President Enterprises Corp. |
|
|
|
Available-for-sale financial assets |
|
135 |
|
$ |
5,862 |
|
|
|
$ |
5,515 |
|
Note 4 |
|
|
|
|
|
Ruentex Development Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
20 |
|
781 |
|
|
|
870 |
|
Note 4 |
| ||
|
|
|
|
Arcadyan Technology Corporation |
|
|
|
Available-for-sale financial assets |
|
70 |
|
3,188 |
|
|
|
3,007 |
|
Note 4 |
| ||
|
|
|
|
Lcy Chemical Corp. |
|
|
|
Available-for-sale financial assets |
|
85 |
|
4,639 |
|
|
|
3,995 |
|
Note 4 |
| ||
|
|
|
|
Microbio Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
80 |
|
3,258 |
|
|
|
2,948 |
|
Note 4 |
| ||
|
|
|
|
China Development Financial Holding Corp. |
|
|
|
Available-for-sale financial assets |
|
200 |
|
1,975 |
|
|
|
1,800 |
|
Note 4 |
| ||
|
|
|
|
Cheng Shin Rubber Ind., Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
40 |
|
2,757 |
|
|
|
2,836 |
|
Note 4 |
| ||
|
|
|
|
Huaku Development Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
20 |
|
1,557 |
|
|
|
1,498 |
|
Note 4 |
| ||
|
|
|
|
Formosa Chemicals & Fibre Corporation |
|
|
|
Available-for-sale financial assets |
|
50 |
|
4,505 |
|
|
|
4,310 |
|
Note 4 |
| ||
|
|
|
|
Tsann Kuen Enterprise Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
35 |
|
2,489 |
|
|
|
2,467 |
|
Note 4 |
| ||
|
|
|
|
Foxconn Technology Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
1,298 |
|
|
|
1,220 |
|
Note 4 |
| ||
|
|
|
|
Integrated Memory Logic Limited |
|
|
|
Available-for-sale financial assets |
|
25 |
|
2,879 |
|
|
|
2,650 |
|
Note 4 |
| ||
|
|
|
|
HTC Corporation |
|
|
|
Available-for-sale financial assets |
|
5 |
|
3,118 |
|
|
|
2,985 |
|
Note 4 |
| ||
|
|
|
|
Formosa Laboratories, Inc. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
777 |
|
|
|
747 |
|
Note 4 |
| ||
|
|
|
|
Gigasolar Materials Corporation |
|
|
|
Available-for-sale financial assets |
|
164 |
|
21,050 |
|
|
|
48,119 |
|
Note 4 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Beneficiary certificates (mutual fund) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Mega Diamond Bond Fund |
|
|
|
Available-for-sale financial assets |
|
4,139 |
|
50,000 |
|
|
|
50,037 |
|
Note 3 |
| ||
|
|
|
|
Manulife Asia Pacific Bond |
|
|
|
Available-for-sale financial assets |
|
749 |
|
8,000 |
|
|
|
8,071 |
|
Note 3 |
| ||
|
|
|
|
Paradigm high Yield Bond Fund-A |
|
|
|
Available-for-sale financial assets |
|
1,110 |
|
11,988 |
|
|
|
12,707 |
|
Note 3 |
| ||
|
|
|
|
Upamc Quality Growth Fund |
|
|
|
Available-for-sale financial assets |
|
393 |
|
8,000 |
|
|
|
7,643 |
|
Note 3 |
| ||
|
|
|
|
Cathay Mandarin Fund |
|
|
|
Available-for-sale financial assets |
|
250 |
|
2,500 |
|
|
|
1,908 |
|
Note 3 |
| ||
|
|
|
|
Fubon Agribusiness Equity Fund |
|
|
|
Available-for-sale financial assets |
|
1,000 |
|
10,000 |
|
|
|
9,230 |
|
Note 3 |
| ||
|
|
|
|
Fuh Hwa Emerging Market Active Allocation Fund of Funds |
|
|
|
Available-for-sale financial assets |
|
1,000 |
|
10,000 |
|
|
|
9,840 |
|
Note 3 |
| ||
|
|
|
|
Franklin Templeton Sinoam Franklin Templeton Global Fund of Funds |
|
|
|
Available-for-sale financial assets |
|
870 |
|
11,622 |
|
|
|
11,356 |
|
Note 3 |
| ||
|
|
|
|
PowerShares QQQ |
|
|
|
Available-for-sale financial assets |
|
1 |
|
1,712 |
|
|
|
2,393 |
|
Note 3 |
| ||
|
|
|
|
Pro Shares UltraShort 20+ Year Treasury |
|
|
|
Available-for-sale financial assets |
|
1 |
|
1,041 |
|
|
|
604 |
|
Note 3 |
| ||
|
|
|
|
iShares FTSE/Xinhua A50 China Index ETF |
|
|
|
Available-for-sale financial assets |
|
85 |
|
4,113 |
|
|
|
3,486 |
|
Note 3 |
| ||
|
|
|
|
WISE-CSI 300 China Tracker |
|
|
|
Available-for-sale financial assets |
|
14 |
|
2,047 |
|
|
|
1,552 |
|
Note 3 |
| ||
|
|
|
|
Manulife China offshore Bond Fund-A |
|
|
|
Available-for-sale financial assets |
|
2,000 |
|
20,000 |
|
|
|
20,030 |
|
Note 3 |
| ||
|
|
|
|
Cathy Man AHL Futures Trust Fund of Funds |
|
|
|
Available-for-sale financial assets |
|
998 |
|
10,053 |
|
|
|
9,596 |
|
Note 3 |
| ||
|
|
|
|
iPath S&P 500VIX Short-Term Futures ETN |
|
|
|
Available-for-sale financial assets |
|
1 |
|
918 |
|
|
|
346 |
|
Note 3 |
| ||
|
|
|
|
Union Money Market Fund |
|
|
|
Available-for-sale financial assets |
|
5,491 |
|
70,000 |
|
|
|
70,060 |
|
Note 3 |
| ||
|
|
|
|
Paradigm Emerging Asia Pacific Bond B Fund |
|
|
|
Available-for-sale financial assets |
|
3,000 |
|
30,000 |
|
|
|
30,000 |
|
Note 3 |
| ||
|
|
|
|
Cathay Small & Med Cap Fund |
|
|
|
Available-for-sale financial assets |
|
166 |
|
5,000 |
|
|
|
5,010 |
|
Note 3 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Bond |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Hua Nan Financial Holdings Company 1st Unsecured Subordinate Corporate Bonds Issue in 2006 |
|
|
|
Available-for-sale financial assets |
|
50,000 |
|
50,509 |
|
|
|
50,808 |
|
Note 9 |
| ||
|
|
|
|
AU Optronics Corporation 1st Secured Corporate Bonds Issue in 2008 |
|
|
|
Available-for-sale financial assets |
|
25,000 |
|
25,112 |
|
|
|
25,217 |
|
Note 9 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Convertible bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Epistar Corporation Ltd. 3rd Convertible Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
17 |
|
1,815 |
|
|
|
1,722 |
|
Note 4 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Everlight Electronics Co., Ltd. 3rd Convertible Bonds |
|
|
|
Financial assets at fair value through profit or loss |
|
60 |
|
$ |
6,415 |
|
|
|
$ |
6,000 |
|
Note 4 |
| ||
|
|
|
|
Ability Enterprise Co., Ltd. 1st Unsecured Convertible Bonds |
|
|
|
Financial assets at fair value through profit or loss |
|
40 |
|
4,008 |
|
|
|
3,988 |
|
Note 4 |
| ||||
|
|
|
|
TUL the Third Security Convertible Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
15 |
|
1,500 |
|
|
|
1,507 |
|
Note 4 |
| ||||
|
|
|
|
Yuanta Financial Holding Co., Ltd. 1st Domestic Convertible Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
70 |
|
7,000 |
|
|
|
7,231 |
|
Note 4 |
| ||||
|
|
|
|
Ruentex Industry Co., Ltd. 2010 1st Domestic Unsecured Convertible Corporate Bonds |
|
|
|
Financial assets at fair value through profit or loss |
|
10 |
|
1,007 |
|
|
|
989 |
|
Note 4 |
| ||||
|
|
|
|
Ruentex Development Co., Ltd. 2010 1st Domestic Unsecured Convertible Corporate Bonds. |
|
|
|
Financial assets at fair value through profit or loss |
|
76 |
|
7,638 |
|
|
|
7,623 |
|
Note 4 |
| ||||
|
|
|
|
Synnex Technology International Corporation 2nd Unsecured Convertible Bond Issue |
|
|
|
Financial assets at fair value through profit or loss |
|
20 |
|
2,004 |
|
|
|
2,031 |
|
Note 4 |
| ||||
|
|
|
|
Far Eastern Department Store Ltd. 1st Domestic Unsecured Convertible Corporate Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
67 |
|
6,674 |
|
|
|
6,700 |
|
Note 4 |
| ||||
|
|
|
|
Asia Optical 3rd Domestic Unsecured Convertible Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
15 |
|
1,505 |
|
|
|
1,470 |
|
Note 4 |
| ||||
|
|
|
|
Hon Chuan Enterprise Co., Ltd. Domestic 1st Unsecured Convertible Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
20 |
|
2,020 |
|
|
|
1,980 |
|
Note 4 |
| ||||
|
|
|
|
HiTi Digital Inc. Domestic Unsecured Convertible Corporate Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
19 |
|
1,680 |
|
|
|
1,862 |
|
Note 4 |
| ||||
|
|
|
|
ACHEM Technology Corporation 1st Secured Convertible Bonds Issue in 2011 |
|
|
|
Financial assets at fair value through profit or loss |
|
16 |
|
1,595 |
|
|
|
1,651 |
|
Note 4 |
| ||||
|
|
|
|
Foxconn Technology Co., Ltd. 1st domestic unsecured convertible bond |
|
|
|
Financial assets at fair value through profit or loss |
|
4 |
|
398 |
|
|
|
398 |
|
Note 4 |
| ||||
|
|
|
|
Welldone Company Domestic 1st Secured Convertible Bonds |
|
|
|
Financial assets at fair value through profit or loss |
|
11 |
|
1,186 |
|
|
|
1,166 |
|
Note 4 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
18 |
|
Concord Technology Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Glory Network System Service (Shanghai) Co., Ltd |
. |
Subsidiary |
|
Investments accounted for using equity method |
|
1,500 |
|
20,407 |
|
100 |
|
20,407 |
|
Note 1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
RMB |
(4,362 |
) |
|
|
RMB |
(4,362 |
) |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
20 |
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
Chunghwa Precision Test Tech. USA Corporation |
|
Subsidiary |
|
Investments accounted for using equity method |
|
400 |
|
9,820 |
|
100 |
|
9,820 |
|
Note 1 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(333 |
) |
|
|
US$ |
(333 |
) |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
22 |
|
Senao International (Samoa) Holding Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
Senao International HK Limited |
|
Subsidiary |
|
Investments accounted for using equity method |
|
23,260 |
|
481,192 |
|
100 |
|
481,192 |
|
Note 8 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(16,295 |
) |
|
|
US$ |
(16,295 |
) |
|
| ||
|
|
|
|
HopeTech Technologies Limited |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
5,240 |
|
21,694 |
|
45 |
|
21,694 |
|
Note 1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(735) |
|
|
|
US$ |
(735) |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
23 |
|
Senao International HK Limited |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
Senao Trading (Fujian) Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
119,476 |
|
100 |
|
119,476 |
|
Note 8 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(4,046 |
) |
|
|
US$ |
(4,046 |
) |
|
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Senao International Trading (Shanghai) Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
$ |
91,711 |
|
|
|
$ |
91,711 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(3,108 |
) |
100 |
|
US$ |
(3,108 |
) |
Note 8 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Senao International Trading (Shanghai) Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
56,848 |
|
|
|
56,848 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(1,925 |
) |
100 |
|
US$ |
(1,925 |
) |
Notes 8 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Senao International Trading (Jiangsu) Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
210,157 |
|
|
|
210,157 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(7,117 |
) |
100 |
|
US$ |
(7,117 |
) |
Note 8 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
24 |
|
Chunghwa Investment Holding Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
CHI One Investment Co., Limited |
|
Subsidiary |
|
Investments accounted for using equity method |
|
6,520 |
|
10,981 |
|
100 |
|
10,981 |
|
Note 1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
HK$ |
(2,970 |
) |
|
|
HK$ |
(2,970 |
) |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
26 |
|
CHI One Investment Co., Limited |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Xiamen Sertec Business Technology Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
|
|
10,793 |
|
49 |
|
10,793 |
|
Note 1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
RMB |
(2,305 |
) |
|
|
RMB |
(2,305 |
) |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
27 |
|
Prime Asia Investments Group, Ltd. (B.V.I.) |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Chunghwa Hsingta Company Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
175,125 |
|
100 |
|
175,125 |
|
Note 1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
RMB |
(37,340 |
) |
|
|
RMB |
(37,340 |
) |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
29 |
|
Chunghwa Hsingta Company Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Chunghwa Telecom (China) Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
147,604 |
|
100 |
|
147,604 |
|
Note 1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
RMB |
(31,472 |
) |
|
|
RMB |
(31,472 |
) |
|
| ||
|
|
|
|
Jiangsu Zhenhua Information Technology Company, LLC |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
27,521 |
|
75 |
|
27,521 |
|
Note 1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
RMB |
(5,868 |
) |
|
|
RMB |
(5,868 |
) |
|
| ||
Note 1: The net asset values of investees were based on unreviewed financial statements.
Note 2: New Prospect Investments Holdings Ltd. (B.V.I.) was incorporated in March 2006, but not yet begun operation as of March 31, 2012.
Note 3: The net asset values of beneficiary certificates (mutual fund) were based on the net asset values on March 31, 2012.
Note 4: Market value was based on the closing price of March 31, 2012.
Note 5: Showing at their original carrying amounts without adjustments for fair values, except for held-to-maturity financial assets.
Note 6: The net asset values of investees were based on amortized cost.
Note 7: Market value of emerging stock was based on the average trading price on March 31, 2012.
Note 8: The net asset values of investees were based on reviewed financial statements.
Note 9: The market value is determined by the hundred price of transaction market on March 31, 2012.
Note 10: The English name is the same as the above entity; however, the Chinese names included in the respective Articles of Incorporations are different.
(Concluded)
TABLE 3
CHUNGHWA TELECOM CO., LTD.
MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
THREE MONTHS ENDED MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balance |
|
Acquisition |
|
Disposal |
|
Ending Balance |
| ||||||||||||||||||||
No. |
|
Company Name |
|
Marketable Securities Type and |
|
Financial Statement Account |
|
Counter-party |
|
Nature of |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Carrying |
|
Gain (Loss) |
|
Shares |
|
Amount |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
|
China Airlines Ltd. |
|
Available-for-sale financial assets - noncurrent |
|
|
|
|
|
|
|
$ |
|
|
263,622 |
|
$ |
3,092,287 |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
263,622 |
|
$ |
3,092,287 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
Beneficiary certificates (mutual fund) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
Fidelity Funds - US Dollar Bond Fund Y-ACC-USD |
|
Available-for-sale financial assets |
|
|
|
|
|
|
|
|
|
|
397 |
|
148,410 |
|
|
|
|
|
|
|
|
|
397 |
|
148,410 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
Bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-C Issue in 2002 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
|
300,000 |
|
|
|
|
|
|
|
300,000 |
|
300,000 |
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 2 |
) |
|
|
|
|
|
|
(Note 2 |
) |
(Note 2 |
) |
|
|
|
|
|
| |||||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-C Issue in 2002 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
|
300,000 |
|
|
|
|
|
|
|
300,000 |
|
300,000 |
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 2 |
) |
|
|
|
|
|
|
(Note 2 |
) |
(Note 2 |
) |
|
|
|
|
|
| |||||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2011 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
|
300,000 |
|
|
|
100,000 |
|
|
|
|
|
|
|
|
|
|
|
400,000 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 2 |
) |
|
|
(Note 2 |
) |
|
|
|
|
|
|
|
|
|
|
(Note 2 |
) | |||||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2012 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
500,000 |
|
|
|
|
|
|
|
|
|
|
|
500,000 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 2 |
) |
|
|
|
|
|
|
|
|
|
|
(Note 2 |
) | |||||||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bonds-C Issue in 2006 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
|
100,000 |
|
|
|
200,000 |
|
|
|
|
|
|
|
|
|
|
|
300,000 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 2 |
) |
|
|
(Note 2 |
) |
|
|
|
|
|
|
|
|
|
|
(Note 2 |
) | |||||||
|
|
|
|
KGI Securities Co., Ltd. 1st Unsecured Corporate Bonds in 2011 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
300,000 |
|
|
|
|
|
|
|
|
|
|
|
300,000 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 2 |
) |
|
|
|
|
|
|
|
|
|
|
(Note 2 |
) | |||||||
|
|
|
|
China Development Holding Corporation 1st Unsecured Corporate Bonds-A Issue in 2007 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
|
400,000 |
|
|
|
|
|
|
|
400,000 |
|
400,000 |
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 2 |
) |
|
|
|
|
|
|
(Note 2 |
) |
(Note 2 |
) |
|
|
|
|
|
| |||||||
|
|
|
|
TaipeiFubon Bank 1st Financial Debentures-A Issue in 2011 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
300,000 |
|
|
|
|
|
|
|
|
|
|
|
300,000 |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
1 |
|
Senao International Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
Senao International (Samoa) Holding Ltd. |
|
Investments accounted for using equity method |
|
|
|
Subsidiary |
|
15,875 |
|
|
466,517 |
|
8,100 |
|
240,246 |
|
|
|
|
|
|
|
|
|
23,975 |
|
706,763 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(15,875 |
) |
|
|
US$ |
(8,100 |
) |
|
|
|
|
|
|
|
|
|
|
US$ |
(23,975 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 4 |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
22 |
|
Senao International (Samoa) Holding Ltd. |
|
Stocks Senao International HK Limited |
|
Investments accounted for using equity method |
|
|
|
Subsidiary |
|
15,180 |
|
|
477,712 |
|
8,080 |
|
206,640 |
|
|
|
|
|
|
|
|
|
23,260 |
|
684,532 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(15,180 |
) |
|
|
US$ |
(8,080 |
) |
|
|
|
|
|
|
|
|
|
|
US$ |
(23,260 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 4 |
) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
23 |
|
Senao International HK Limited |
|
Stocks Senao International Trading (Jiangsu) |
|
Investments accounted for using equity method |
|
|
|
Subsidiary |
|
|
|
|
115,971 |
|
|
|
147,765 |
|
|
|
|
|
|
|
|
|
|
|
263,736 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US$ |
(4,000 |
) |
|
|
US$ |
(5,000 |
) |
|
|
|
|
|
|
|
|
|
|
US$ |
(9,000 |
) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 4 |
) | |||||
Note 1: Showing at their original carrying amounts without adjustments for fair values.
Note 2: Stated at its nominal amounts.
Note 3: The ending balance includes cumulative transaction adjustments.
Note 4: Stated at its original investment amounts
TABLE 4
CHUNGHWA TELECOM CO., LTD.
TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
THREE MONTHS ENDED MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
Transaction Details |
|
Abnormal Transaction |
|
Notes/Accounts Payable or |
| ||||||||||||
No. |
|
Company Name |
|
Related Party |
|
Nature of |
|
Purchase/Sale |
|
Amount |
|
% to Total |
|
Payment Terms |
|
Units Price |
|
Payment Terms |
|
Ending Balance |
|
% to Total |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Senao International Co., Ltd. |
|
Subsidiary |
|
Purchase |
|
$ |
2,391,632 |
|
8 |
|
30-90 days |
|
|
|
|
|
$ |
(1,137,849 |
) |
(9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
Subsidiary |
|
Purchase |
|
235,111 |
|
1 |
|
30 days |
|
|
|
|
|
(325,321 |
) |
(3 |
) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1 |
|
Senao International Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
Parent company |
|
Sales |
|
2,363,097 |
|
27 |
|
30-90 days |
|
|
|
|
|
1,208,541 |
|
44 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
3 |
|
Chunghwa System Integration Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
Parent company |
|
Sales |
|
665,412 |
|
91 |
|
30 days |
|
|
|
|
|
325,321 |
|
84 |
| ||
Note 1: Excluding payment and receipts collected in trust for others.
Note 2: Transaction terms were determined in accordance with mutual agreements.
Note 3: The difference was because Senao International Co., Ltd. classified the amount as other current liabilities.
Note 4: The difference was because Chunghwa Telecom Co., Ltd. classified the amount as amounts collected in trust for others.
Note 5: The difference was because Chunghwa Telecom Co., Ltd. classified the amount as inventory, property, plant and equipment and intangible assets.
TABLE 5
CHUNGHWA TELECOM CO., LTD.
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
|
|
Turnover |
|
Overdue |
|
Amounts Received |
|
Allowance for Bad |
| ||||||
No. |
|
Company Name |
|
Related Party |
|
Nature of Relationship |
|
Ending Balance |
|
Rate |
|
Amounts |
|
Action Taken |
|
Period |
|
Debts |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Senao International Co., Ltd. |
|
Subsidiary |
|
$ |
302,121 |
|
12.01 |
|
$ |
|
|
|
|
$ |
298,373 |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
1 |
|
Senao International Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
Parent company |
|
1,493,698 |
|
7.67 |
|
|
|
|
|
8,710 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
3 |
|
Chunghwa System Integration Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
Parent company |
|
325,321 |
|
5.17 |
|
|
|
|
|
79,121 |
|
|
| ||||
Note 1: Payments and receipts collected in trust for others are excluded from the accounts receivable for calculating the turnover rate.
TABLE 6
CHUNGHWA TELECOM CO., LTD.
NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES IN WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE
THREE MONTHS ENDED MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)
|
|
|
|
|
|
|
|
|
|
Original Investment Amount |
|
Balance as of March 31, 2012 |
|
Net Income |
|
Recognized Gain |
|
|
| |||||||||||
No. |
|
Investor Company |
|
Investee Company |
|
Location |
|
Main Businesses and Products |
|
March 31, 2012 |
|
December 31, |
|
Shares |
|
Percentage of |
|
Carrying Value |
|
(Loss) of the |
|
(Loss) |
|
Note |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Senao International Co., Ltd. |
|
Taiwan |
|
Selling and maintaining mobile phones and its peripheral products |
|
$ |
1,065,813 |
|
$ |
1,065,813 |
|
71,773 |
|
28 |
|
$ |
1,684,305 |
|
$ |
516,142 |
|
$ |
143,193 |
|
Subsidiary |
|
|
|
|
|
Light Era Development Co., Ltd. |
|
Taiwan |
|
Housing, office building development, rent and sale services |
|
3,000,000 |
|
3,000,000 |
|
300,000 |
|
100 |
|
4,422,825 |
|
199,964 |
|
199,967 |
|
Subsidiary |
| |||||
|
|
|
|
Chunghwa Investment Co., Ltd. |
|
Taiwan |
|
Telecommunications, telecommunications value-added services and other related professional investment |
|
1,738,709 |
|
1,738,709 |
|
178,000 |
|
89 |
|
1,786,637 |
|
7,573 |
|
6,586 |
|
Subsidiary |
| |||||
|
|
|
|
Donghwa Telecom Co., Ltd. |
|
Hong Kong |
|
International telecommunications IP fictitious internet and internet transfer services |
|
882,219 |
|
882,219 |
|
223,190 |
|
100 |
|
870,919 |
|
1,592 |
|
1,592 |
|
Subsidiary |
| |||||
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
Taiwan |
|
Providing communication and information aggregative services |
|
838,506 |
|
838,506 |
|
60,000 |
|
100 |
|
723,715 |
|
9,189 |
|
16,006 |
|
Subsidiary |
| |||||
|
|
|
|
Taiwan International Standard Electronics Co., Ltd. |
|
Taiwan |
|
Manufacturing, selling, designing, and maintaining of telecommunications systems and equipment |
|
164,000 |
|
164,000 |
|
1,760 |
|
40 |
|
709,852 |
|
233,032 |
|
100,919 |
|
Equity-method investee |
| |||||
|
|
|
|
Chunghwa Telecom Singapore Pte., Ltd. |
|
Singapore |
|
Telecommunication wholesale, internet transfer services international data and long distance call wholesales to carriers |
|
574,112 |
|
574,112 |
|
26,383 |
|
100 |
|
690,872 |
|
26,643 |
|
26,643 |
|
Subsidiary |
| |||||
|
|
|
|
CHIEF Telecom Inc. |
|
Taiwan |
|
Internet communication and internet data center (IDC) service |
|
482,165 |
|
482,165 |
|
37,942 |
|
69 |
|
607,343 |
|
47,749 |
|
33,771 |
|
Subsidiary |
| |||||
|
|
|
|
InfoExplorer Co., Ltd. |
|
Taiwan |
|
IT solution provider, IT application consultation, system integration and package solution |
|
283,500 |
|
283,500 |
|
22,498 |
|
33 |
|
259,520 |
|
4,406 |
|
2,050 |
|
Equity-method investee |
| |||||
|
|
|
|
Viettel-CHT Co., Ltd. |
|
Vietnam |
|
IDC services |
|
288,327 |
|
288,327 |
|
|
|
30 |
|
256,560 |
|
15,380 |
|
4,616 |
|
Equity-method investee |
| |||||
|
|
|
|
Huada Digital Corporation |
|
Taiwan |
|
Providing software service |
|
250,000 |
|
250,000 |
|
25,000 |
|
50 |
|
250,778 |
|
178 |
|
89 |
|
Equity-method investee |
| |||||
|
|
|
|
Chunghwa International Yellow Pages Co., Ltd. |
|
Taiwan |
|
Yellow pages sales and advertisement services |
|
150,000 |
|
150,000 |
|
15,000 |
|
100 |
|
204,202 |
|
9,858 |
|
9,858 |
|
Subsidiary |
| |||||
|
|
|
|
Prime Asia Investments Group Ltd. (B.V.I.) |
|
British Virgin Islands |
|
Investment |
|
206,089 |
|
206,089 |
|
6,960 |
|
100 |
|
174,899 |
|
(8,214 |
) |
(8,300 |
) |
Subsidiary |
| |||||
|
|
|
|
Skysoft Co., Ltd. |
|
Taiwan |
|
Providing of music on-line, software, electronic information, and advertisement services |
|
67,025 |
|
67,025 |
|
4,438 |
|
30 |
|
125,290 |
|
39,351 |
|
11,985 |
|
Equity-method investee |
| |||||
|
|
|
|
Spring House Entertainment Inc. |
|
Taiwan |
|
Network services, producing digital entertainment contents and broadband visual sound terrace development |
|
62,209 |
|
62,209 |
|
5,996 |
|
56 |
|
109,623 |
|
14,546 |
|
8,481 |
|
Subsidiary |
| |||||
|
|
|
|
Dian Zuan Integrating Marketing Co., Ltd. |
|
Taiwan |
|
Information technology service and general advertisement service |
|
114,640 |
|
114,640 |
|
11,464 |
|
40 |
|
108,533 |
|
(3,127 |
) |
(1,251 |
) |
Equity-method investee |
| |||||
|
|
|
|
Chunghwa Telecom Global, Inc. |
|
United States |
|
International data and internet services and long distance call wholesales to carriers |
|
70,429 |
|
70,429 |
|
6,000 |
|
100 |
|
90,832 |
|
6,409 |
|
6,973 |
|
Subsidiary |
| |||||
|
|
|
|
KingWay Technology Co., Ltd. |
|
Taiwan |
|
Publishing books, data processing and software services |
|
71,770 |
|
71,770 |
|
1,703 |
|
33 |
|
76,849 |
|
8,566 |
|
1,481 |
|
Equity-method investee |
| |||||
|
|
|
|
Smartfun Digital Co., Ltd. |
|
Taiwan |
|
Software retail |
|
65,000 |
|
65,000 |
|
6,500 |
|
65 |
|
56,461 |
|
(5,643 |
) |
(3,664 |
) |
Subsidiary |
| |||||
|
|
|
|
Chunghwa Telecom Vietnam Co., Ltd. |
|
Vietnam |
|
Information and communications technology, international circuit, and intelligent energy network service |
|
43,847 |
|
43,847 |
|
|
|
100 |
|
34,737 |
|
(2,291 |
) |
(2,291 |
) |
Subsidiary |
| |||||
|
|
|
|
So-net Entertainment Taiwan |
|
Taiwan |
|
Online service and sale of computer hardware |
|
60,008 |
|
60,008 |
|
3,429 |
|
30 |
|
34,644 |
|
278 |
|
99 |
|
Equity-method investee |
| |||||
|
|
|
|
Chunghwa Telecom Japan Co., Ltd. |
|
Japan |
|
Telecom business, information process and information provide service, development and sale of software and consulting services in telecommunication |
|
17,291 |
|
17,291 |
|
1 |
|
100 |
|
22,858 |
|
2,327 |
|
2,327 |
|
Subsidiary |
| |||||
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
Original Investment Amount |
|
Balance as of March 31, 2012 |
|
Net Income |
|
Recognized Gain |
|
|
| |||||||||||
No. |
|
Investor Company |
|
Investee Company |
|
Location |
|
Main Businesses and Products |
|
March 31, 2012 |
|
December 31, |
|
Shares |
|
Percentage of |
|
Carrying Value |
|
(Loss) of the |
|
(Loss) |
|
Note |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
Chunghwa Sochamp Technology Inc. |
|
Taiwan |
|
License plate recognition system |
|
$ |
20,400 |
|
$ |
20,400 |
|
2,040 |
|
51 |
|
$ |
18,711 |
|
$ |
(3,215 |
) |
$ |
(1,640 |
) |
Subsidiary |
|
|
|
|
|
New Prospect Investments Holdings Ltd. (B.V.I.) |
|
British Virgin Islands |
|
Investment |
|
|
|
|
|
|
|
100 |
|
|
|
|
|
|
|
Subsidiary |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
1 |
|
Senao International Co., Ltd. |
|
Senao Networks, Inc. |
|
Taiwan |
|
Telecommunication facilities manufactures and sales. |
|
206,190 |
|
206,190 |
|
16,824 |
|
41 |
|
372,310 |
|
72,968 |
|
29,626 |
|
Equity-method investee |
| |||||
|
|
|
|
Senao International (Samoa) Holding |
|
Samoa Islands |
|
International investment. |
|
|
706,763 |
|
|
466,517 |
|
23,975 |
|
100 |
|
|
503,403 |
|
|
(41,761 |
) |
|
(41,777 |
) |
Subsidiary |
|
|
|
|
|
Ltd. |
|
|
|
|
|
US$ |
(23,975 |
) |
US$ |
(15,875 |
) |
|
|
|
|
US$ |
(17,047 |
) |
US$ |
((1,406 |
)) |
US$ |
((1,406 |
)) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
2 |
|
CHIEF Telecom Inc. |
|
Unigate Telecom Inc. |
|
Taiwan |
|
Telecommunication and internet service. |
|
2,000 |
|
2,000 |
|
200 |
|
100 |
|
1,774 |
|
(31 |
) |
(31 |
) |
Subsidiary |
| |||||
|
|
|
|
Chief International Corp. |
|
Samoa Islands |
|
Network communication and engine room hiring |
|
|
6,068 |
|
|
6,068 |
|
200 |
|
100 |
|
|
10,952 |
|
|
1,005 |
|
|
1,005 |
|
Subsidiary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
3 |
|
Chunghwa System Integrated Co., Ltd. |
|
Concord Technology Co., Ltd. |
|
Brunei |
|
Providing advanced business solutions to telecommunications |
|
|
47,321 |
|
|
31,973 |
|
1,500 |
|
100 |
|
|
20,407 |
|
|
(779 |
) |
|
(779 |
) |
Subsidiary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
7 |
|
Spring House Entertainment Tech. Inc. |
|
Ceylon Innovation Co., Ltd. |
|
Taiwan |
|
International trading, general advertisement and book publishment service |
|
1,000 |
|
1,000 |
|
|
|
100 |
|
942 |
|
(12 |
) |
(12 |
) |
Subsidiary |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
8 |
|
Light Era Development Co., Ltd. |
|
Yao Yong Real Property co., Ltd. |
|
Taiwan |
|
Real estate leasing business |
|
2,793,667 |
|
2,793,667 |
|
83,290 |
|
100 |
|
2,837,303 |
|
13,281 |
|
9,221 |
|
Subsidiary |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
9 |
|
Chunghwa Telecom Singapore Pte., Ltd. |
|
ST-2 Satellite Ventures Pte., Ltd. |
|
Singapore |
|
Operation of ST-2 telecommunication satellite |
|
|
409,061 |
|
|
409,061 |
|
18,102 |
|
38 |
|
|
490,707 |
|
|
65,478 |
|
|
24,967 |
|
Equity-method investee |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
14 |
|
Chunghwa Investment Co., Ltd. |
|
Chunghwa Precision Test Tech Co., Ltd. |
|
Taiwan |
|
Semiconductor testing components and printed circuit board industry production and marketing of electronic products |
|
91,875 |
|
91,875 |
|
10,317 |
|
53 |
|
124,047 |
|
4,923 |
|
2,619 |
|
Subsidiary |
| |||||
|
|
|
|
Chunghwa Investment Holding Co., Ltd. |
|
Brunei |
|
General investment |
|
46,035 |
|
34,483 |
|
1,432 |
|
100 |
|
21,214 |
|
(1,363 |
) |
(1,363 |
) |
Subsidiary |
| |||||
|
|
|
|
|
|
|
|
|
|
US$ |
(1,432 |
) |
US$ |
(1,043 |
) |
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
Panda Monium Company Ltd. |
|
Cayman |
|
The production of animation |
|
|
20,000 |
|
|
20,000 |
|
602 |
|
43 |
|
|
|
|
|
|
|
Equity-method investee |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
CHIEF Telecom Inc. |
|
Taiwan |
|
Telecommunication and internet service |
|
20,000 |
|
20,000 |
|
2,000 |
|
4 |
|
28,676 |
|
47,749 |
|
1,748 |
|
Equity-method investee |
| |||||
|
|
|
|
Senao International Co., Ltd. |
|
Taiwan |
|
Selling and maintaining mobile phones and its peripheral products |
|
49,731 |
|
49,731 |
|
1,001 |
|
|
|
50,278 |
|
516,142 |
|
1,519 |
|
Equity-method investee |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
18 |
|
Concord Technology Co., Ltd. |
|
Glory Network System Service (Shanghai) Co., Ltd. |
|
China |
|
Providing advanced business solutions to telecommunications |
|
|
47,321 |
|
|
31,973 (1,010 |
|
1,500 |
|
100 |
|
|
20,407 |
|
|
(779 |
) |
|
(779 |
|
Subsidiary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
20 |
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
Chunghwa Precision Test Tech. USA Corporation |
|
United States |
|
Semiconductor testing components and printed circuit board industry production and marketing of electronic products |
|
|
12,504 |
|
|
12,504 (400 |
|
400 |
|
100 |
|
|
9,820 |
|
|
1,692 |
|
|
1,692 |
|
Subsidiary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
22 |
|
Senao International (Samoa) Holding |
|
Senao International HK Limited. |
|
Hong Kong |
|
Sales of communication business |
|
|
684,352 |
|
|
444,712 |
|
23,260 |
|
100 |
|
|
481,192 |
|
|
(42,476 |
) |
|
(42,476 |
) |
Subsidiary |
|
|
|
Ltd |
|
|
|
|
|
|
|
US$ |
(23,260 |
) |
US$ |
(15,180 |
) |
|
|
|
|
US$ |
(16,295 |
) |
US$ |
((1,430 |
)) |
US$ |
((1,430 |
)) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
HopeTech Technologies Limited |
|
Hong Kong |
|
Information technology and |
|
|
21,177 |
|
|
21,177 |
|
5,240 |
|
45 |
|
|
21,694 |
|
|
1,607 |
|
|
723 |
|
Equity-method |
|
|
|
|
|
|
|
|
|
telecommunication products sales. |
|
US$ |
(675 |
) |
US$ |
(675 |
) |
|
|
|
|
US$ |
(735 |
) |
US$ |
(54 |
) |
US$ |
(24 |
) |
investee |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
24 |
|
Chunghwa Investment Holding |
|
CHI One Investment Co., Limited |
|
Hong Kong |
|
General investment |
|
|
26,035 |
|
|
14,483 |
|
6,520 |
|
100 |
|
|
10,981 |
|
|
(1,363 |
) |
|
(1,363 |
) |
Subsidiary |
|
|
|
Co., Ltd. |
|
|
|
|
|
|
|
HK$ |
(6,520 |
) |
HK$ |
(3,924 |
) |
|
|
|
|
(HK$ |
2,970 |
) |
HK$ |
((356 |
)) |
HK$ |
((356 |
)) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
26 |
|
CHI One Investment Co., Limited |
|
Xiamen Sertec Business Technology Co., Ltd. |
|
China |
|
Customer Services and platform rental activities |
|
|
25,414 |
|
|
13,862 |
|
|
|
49 |
|
|
10,793 |
|
|
(2,781 |
) |
|
(1,363 |
) |
Equity-method investee |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
23 |
|
Senao International HK Limited. |
|
Senao Trading (Fujian) Co., Ltd. |
|
China |
|
Information technology services and sale of |
|
|
175,972 |
|
|
116,821 |
|
|
|
100 |
|
|
119,476 |
|
|
(11,320 |
) |
|
(11,320 |
) |
Subsidiary |
|
|
|
|
|
|
|
|
|
communication products |
|
US$ |
(6,000 |
) |
US$ |
(4,000 |
) |
|
|
|
|
US$ |
(4,046 |
) |
US$ |
((381 |
)) |
US$ |
((381 |
)) |
|
|
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
Original Investment Amount |
|
Balance as of March 31, 2012 |
|
Net Income |
|
Recognized Gain |
|
|
| ||||||||||||
No. |
|
Investor Company |
|
Investee Company |
|
Location |
|
Main Businesses and Products |
|
March 31, 2012 |
|
December 31, |
|
Shares |
|
Percentage of |
|
Carrying Value |
|
(Loss) of the |
|
(Loss) |
|
Note |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
Senao International Trading (Shanghai) Co., Ltd. |
|
China |
|
Information technology services and sale of communication products |
|
$ |
178,713 |
|
$ |
148,413 |
|
|
|
100 |
|
$ |
91,771 |
|
$ |
(16,058 |
) |
$ |
(16,058 |
) |
Subsidiary |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
Senao International Trading (Shanghai) Co., Ltd. |
|
China |
|
Information technology services and sale of communication products |
|
|
57,860 |
|
|
57,860 |
|
|
|
100 |
|
|
56,848 |
|
|
(1,115 |
) |
|
(1,115 |
) |
Subsidiary |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
Semao International Trading (Jiangsu) Co., Ltd. |
|
China |
|
Information technology services and sale of communication products |
|
|
263,736 |
|
|
115,971 |
|
|
|
100 |
|
|
210,157 |
|
|
(13,956 |
) |
|
(13,956 |
) |
Subsidiary |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
27 |
|
Prime Asia Investments Group, Ltd. (B.V.I.) |
|
Chunghwa Hsingta Co., Ltd. |
|
Hong Kong |
|
Investment |
|
|
206,089 |
|
|
206,089 |
|
|
|
100 |
|
|
175,125 |
|
|
(8,214 |
) |
|
(8,214 |
) |
Subsidiary |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
29 |
|
Chunghwa Hsingta Company Ltd. |
|
Chunghwa Telecom (China) Co., Ltd. |
|
China |
|
Planning and design of energy conservation and software and hareware system services, and integration of information system |
|
|
177,176 |
|
|
177,176 |
|
|
|
100 |
|
|
147,604 |
|
|
(7,257 |
) |
|
(7,257 |
) |
Subsidiary |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
Jiangsu Zhenhua Information Technology Company, LLC |
|
China |
|
Intelligent energy conserving and intelligent building services |
|
|
28,912 |
|
|
|
|
|
75 |
|
|
27,521 |
|
|
(1,275 |
) |
|
(957 |
) |
Subsidiary |
| ||
Note 1: The equity in net income (loss) of investees was based on unreviewed financial statements, except the equity in earnings of Senao International Co., Ltd. and its subsidiaries, and HopeTech Technologies Limited.
Note 2: The equity in net income (loss) of investees includes amortization of differences between the investment cost and net value and elimination of unrealized transactions.
Note 3: New Prospect Investments Holdings Ltd. (B.V.I.) was incorporated in March 2006, but has not yet begun operation as of March 31, 2012. Chunghwa has 100% ownership right in an amount of US$1 in the holding company.
Note 4: The English name is the same as the above entity; however, the Chinese names included in the respective Articles of Incorporations are different.
(Concluded)
TABLE 7
CHUNGHWA TELECOM CO., LTD.
INVESTMENT IN MAINLAND CHINA
THREE MONTHS ENDED MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars, in Thousands of U.S. Dollars)
|
|
|
|
Total Amount |
|
Investment |
|
Accumulated |
|
Investment Flows |
|
Accumulated |
|
% Ownership |
|
Investment |
|
Carrying Value |
|
Accumulated |
| ||||||||||
Investee |
|
Main Businesses and Products |
|
Capital |
|
Type |
|
January 1, 2012 |
|
Outflow |
|
Inflow |
|
2012 |
|
Investment |
|
(Note 2) |
|
March 31, 2012 |
|
March 31, 2012 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Glory Network System Service (Shanghai) Co., Ltd. |
|
Providing advanced business solutions to telecommunications |
|
$ |
47,321 |
|
Note 1 |
|
$ |
31,973 |
|
$ |
15,348 |
|
$ |
|
|
$ |
47,321 |
|
100 |
% |
$ |
(779 |
) |
$ |
20,407 |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Xiamen Sertec Business Technology Co., Ltd. |
|
Customer services and platform rental activities |
|
51,552 |
|
Note 1 |
|
13,862 |
|
11,552 |
|
|
|
25,414 |
|
49 |
% |
(1,363 |
) |
10,793 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senao Trading (Fujian) Co., Ltd. |
|
Information technology services and sale of communication products |
|
175,972 |
|
Note 1 |
|
116,821 |
|
59,151 |
|
|
|
175,972 |
|
100 |
% |
(11,320 |
) |
119,476 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senao International Trading (Shanghai) Co., Ltd. |
|
Information technology services and sale of communication products |
|
178,713 |
|
Note 1 |
|
148,413 |
|
30,300 |
|
|
|
178,713 |
|
100 |
% |
(16,058 |
) |
91,771 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senao International Trading (Shanghai) Co., Ltd. (Note 7) |
|
Information technology services and sale of communication products |
|
57,860 |
|
Note 1 |
|
57,860 |
|
|
|
|
|
57,860 |
|
100 |
% |
(1,115 |
) |
56,848 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senao International Trading (Jiangsu) Co., Ltd. |
|
Information technology services and sale of communication products |
|
263,736 |
|
Note 1 |
|
115,971 |
|
147,765 |
|
|
|
263,736 |
|
100 |
% |
(13,956 |
) |
210,157 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Chunghwa Telecom (China) Co., Ltd. |
|
Energy conserving and providing installation, design and maintenance services |
|
177,176 |
|
Note 1 |
|
177,176 |
|
|
|
|
|
177,176 |
|
100 |
% |
(7,257 |
) |
147,604 |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Jiangsu Zhenhua Information Technology Company, LLC |
|
Intelligent energy conserving and intelligent building services |
|
38,549 |
|
Note 1 |
|
28,912 |
|
|
|
|
|
28,912 |
|
75 |
% |
(957 |
) |
27,521 |
|
|
| ||||||||
(Continued)
Accumulated Investment in |
|
Investment Amounts Authorized |
|
Upper Limit on Investment |
| |||
Mainland China as of |
|
by Investment Commission, |
|
Stipulated by Investment |
| |||
March 31, 2012 |
|
MOEA |
|
Commission, MOEA |
| |||
|
|
|
|
|
| |||
$ |
47,321 |
|
$ |
48,169 |
|
$ |
410,739 |
|
US$ |
(1,500 |
) |
US$ |
(1,500 |
) |
(Note 3) |
| |
|
25,414 |
|
|
79,882 |
|
1,308,565 |
| |
US$ |
(820 |
) |
US$ |
(2,500 |
) |
(Note 4) |
| |
|
676,281 |
|
|
676,281 |
|
3,411,200 |
| |
US$ |
(23,000 |
) |
US$ |
(23,000 |
) |
(Note 5) |
| |
|
177,176 |
|
|
177,176 |
|
229,818,425 |
| |
US$ |
(6,000 |
) |
US$ |
(6,000 |
) |
(Note 6) |
| |
|
28,912 |
|
|
141,077 |
|
229,818,425 |
| |
US$ |
(960 |
) |
US$ |
(4,800 |
) |
(Note 6) |
| |
Note 1: Investments were through an holding company registered in a third region.
Note 2: Recognition of investment gains (losses) was calculated based on the investees unreviewed financial statements, except the recognition of investment gains (losses) of Senao Trading (Fujian) Co., Ltd., Senao International Trading (Shanghai) Co., Ltd., Senao International Trading (Shanghai) Co., Ltd. (Note 8), and Senao International Trading (Jiangsu) Co., Ltd. was calculated based on the reviewed financial statements.
Note 3: The amount was calculated based on the consolidated net assets value of Chunghwa System Integration Co., Ltd.
Note 4: The amount was calculated based on the consolidated net assets value of Chunghwa Investment Co., Ltd.
Note 5: The amount was calculated based on the consolidated net assets value of Senao International Co., Ltd.
Note 6: The amount was calculated based on the consolidated net assets value of Chunghwa Telecom Co., Ltd.
Note 7: The English name is the same as the above entity; however, the Chinese names included in the respective Articles of Incorporations are different.
(Concluded)
TABLE 8
CHUNGHWA TELECOM CO., LTD.
SEGMENT INFORMATION
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amount in Thousands of New Taiwan Dollars)
|
|
Domestic Fixed |
|
Mobile |
|
Internet Business |
|
International |
|
Others |
|
Adjustment |
|
Total |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Three months ended March 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenues from external customers |
|
$ |
19,032,552 |
|
$ |
19,150,777 |
|
$ |
5,950,252 |
|
$ |
3,542,926 |
|
$ |
67,750 |
|
$ |
|
|
$ |
47,744,257 |
|
Intersegment revenues (Note 2) |
|
$ |
4,062,743 |
|
$ |
1,645,012 |
|
$ |
621,396 |
|
$ |
407,091 |
|
$ |
1,516 |
|
$ |
(6,737,758 |
) |
$ |
|
|
Segment income before tax |
|
$ |
4,465,817 |
|
$ |
4,593,828 |
|
$ |
2,180,268 |
|
$ |
100,343 |
|
$ |
(19,711 |
) |
$ |
|
|
$ |
11,320,545 |
|
Total assets |
|
$ |
228,009,079 |
|
$ |
57,229,064 |
|
$ |
18,856,080 |
|
$ |
22,998,450 |
|
$ |
111,674,345 |
|
$ |
|
|
$ |
438,767,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Three months ended March 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenues from external customers |
|
$ |
19,336,102 |
|
$ |
18,578,504 |
|
$ |
5,840,959 |
|
$ |
3,773,656 |
|
$ |
54,939 |
|
$ |
|
|
$ |
47,584,160 |
|
Intersegment revenues (Note 2) |
|
$ |
3,590,585 |
|
$ |
1,433,852 |
|
$ |
360,548 |
|
$ |
345,740 |
|
$ |
190 |
|
$ |
(5,730,915 |
) |
$ |
|
|
Segment income before tax |
|
$ |
5,717,609 |
|
$ |
5,915,500 |
|
$ |
2,621,221 |
|
$ |
290,894 |
|
$ |
(466,330 |
) |
$ |
|
|
$ |
14,078,894 |
|
Total assets |
|
$ |
226,862,394 |
|
$ |
58,666,780 |
|
$ |
16,236,270 |
|
$ |
21,418,861 |
|
$ |
111,359,847 |
|
$ |
|
|
$ |
434,544,152 |
|
Note 1: The Company organizes its reporting segments based on types of organizational business. The five reporting segments are segregated as below: Domestic fixed communications business, mobile communications business, internet business, international fixed communications business and others.
· Domestic fixed communications business - the provision of local telephone services, domestic long distance telephone services, broadband access, and related services;
· Mobile communications business - the provision of mobile services, sales of mobile handsets and data cards, and related services;
· Internet business - the provision of HiNet services and related services;
· International fixed communications business - the provision of international long distance telephone services and related services;
· Others - the provision of non-Telecom Services, and the corporate related items not allocated to reportable segments.
Note 2: Represents intersegment revenues from goods and services, etc.
Exhibit 4
Chunghwa Telecom Co., Ltd. and Subsidiaries
Consolidated Financial Statements for the
Three Months Ended March 31, 2012 and 2011 and
Independent Accountants Review Report
INDEPENDENT ACCOUNTANTS REVIEW REPORT
To the Board of Directors and Stockholders of
Chunghwa Telecom Co., Ltd.
We have reviewed the accompanying consolidated balance sheets of Chunghwa Telecom Co., Ltd. and subsidiaries (the Company) as of March 31, 2012 and 2011, and the related consolidated statements of income and cash flows for the three months then ended. These consolidated financial statements are the responsibility of the Companys management. Our responsibility is to issue a report on these consolidated financial statements based on our review.
Except for the matters described in the next paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 36, Review of Financial Statements, issued by the Auditing Committee of the Accounting Research and Development Foundation of the Republic of China. A review consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the Republic of China, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an audit opinion.
As discussed in Note 2 to the consolidated financial statements, the financial statements of certain subsidiaries as of and for the three months ended March 31, 2012 and 2011 have not been reviewed. The total assets of these subsidiaries were 3.43% (NT$15,412,474 thousand) and 3.43% (NT$15,290,879 thousand), and the total liabilities of these subsidiaries were 7.64% (NT$5,068,890 thousand) and 9.96% (NT$6,450,737 thousand), of the related consolidated amounts as of March 31, 2012 and 2011, respectively. The total revenues of these subsidiaries were 3.17% (NT$1,757,410 thousand) and 2.02% (NT$1,058,007 thousand) of the related consolidated revenues for the three months ended March 31, 2012 and 2011, respectively, and their net losses were NT$3,453 thousand and NT$8,788 thousand for the three months ended March 31, 2012 and 2011, respectively. Further, as discussed in Note 12 to the consolidated financial statements, the financial statements of certain equity method investees as of and for the three months ended March 31, 2012 and 2011 have not been reviewed, and as discussed in Note 35 to the consolidated financial statements, the disclosed information was based on the aforementioned financial statements, which have not been reviewed, of certain equity method investees as of and for the three months ended March, 2012 and 2011. The aggregate carrying values of these equity method investees were NT$2,695,836 thousand and NT$1,786,162 thousand as of March 31, 2012 and 2011, respectively, and the equity in earnings of these equity method investees were NT$173,202 thousand and NT$63,587 thousand for the three months ended March 31, 2012 and 2011, respectively.
Based on our reviews, except for the effects of such adjustments, if any, as might have been determined to be necessary had we reviewed financial statements of certain subsidiaries and equity method investees referred to in the preceding paragraph, we are not aware of any material modifications that should be made to the financial statements referred to above for them to be in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers, and accounting principles generally accepted in the Republic of China.
/s/ DELOITTE & TOUCHE |
|
Deloitte & Touche |
|
Taipei, Taiwan |
|
The Republic of China |
|
April 27, 2012
Notice to Readers
The accompanying consolidated financial statements are intended only to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.
For the convenience of readers, the accountants review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language accountants review report and consolidated financial statements shall prevail.
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars, Except Par Value Data)
(Reviewed, Not Audited)
|
|
2012 |
|
2011 |
| ||||||
|
|
Amount |
|
% |
|
Amount |
|
% |
| ||
ASSETS |
|
|
|
|
|
|
|
|
| ||
CURRENT ASSETS |
|
|
|
|
|
|
|
|
| ||
Cash and cash equivalents (Notes 2 and 4) |
|
$ |
69,938,896 |
|
16 |
|
$ |
75,002,169 |
|
17 |
|
Financial assets at fair value through profit or loss (Notes 2 and 5) |
|
65,023 |
|
|
|
79,443 |
|
|
| ||
Available-for-sale financial assets (Notes 2 and 6) |
|
2,724,087 |
|
1 |
|
2,162,591 |
|
1 |
| ||
Held-to-maturity financial assets (Notes 2 and 7) |
|
500,266 |
|
|
|
2,062,915 |
|
|
| ||
Trade notes and accounts receivable, net of allowance for doubtful accounts of $2,396,696 in 2012 and $2,526,507 in 2011 (Notes 2, 8 and 21) |
|
22,037,757 |
|
5 |
|
19,530,851 |
|
4 |
| ||
Receivables from related parties (Note 28) |
|
38,050 |
|
|
|
26,881 |
|
|
| ||
Other monetary assets (Note 9) |
|
1,667,273 |
|
|
|
2,637,635 |
|
1 |
| ||
Inventories (Notes 2, 10, 21 and 30) |
|
5,401,850 |
|
1 |
|
5,735,456 |
|
1 |
| ||
Deferred income tax assets (Notes 2 and 25) |
|
110,998 |
|
|
|
125,313 |
|
|
| ||
Restricted assets (Notes 21 and 29) |
|
|
|
|
|
39,005 |
|
|
| ||
Other current assets (Notes 10, 11, 21 and 28) |
|
8,308,815 |
|
2 |
|
6,639,790 |
|
2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total current assets |
|
110,793,015 |
|
25 |
|
114,042,049 |
|
26 |
| ||
|
|
|
|
|
|
|
|
|
| ||
LONG-TERM INVESTMENTS |
|
|
|
|
|
|
|
|
| ||
Investments accounted for using equity method (Notes 2 and 12) |
|
2,716,972 |
|
|
|
1,786,162 |
|
|
| ||
Financial assets carried at cost (Notes 2 and 13) |
|
2,758,779 |
|
1 |
|
2,739,335 |
|
1 |
| ||
Available-for-sale financial assets (Notes 2 and 6) |
|
3,211,161 |
|
1 |
|
|
|
|
| ||
Held-to-maturity financial assets (Notes 2 and 7) |
|
14,590,889 |
|
3 |
|
9,973,059 |
|
2 |
| ||
Other monetary assets (Notes 14 and 30) |
|
1,000,000 |
|
|
|
1,000,000 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Total long-term investments |
|
24,277,801 |
|
5 |
|
15,498,556 |
|
3 |
| ||
|
|
|
|
|
|
|
|
|
| ||
PROPERTY, PLANT AND EQUIPMENT (Notes 2, 15, 28 and 29) |
|
|
|
|
|
|
|
|
| ||
Cost |
|
|
|
|
|
|
|
|
| ||
Land |
|
103,808,185 |
|
23 |
|
103,828,369 |
|
23 |
| ||
Land improvements |
|
1,572,448 |
|
|
|
1,551,988 |
|
|
| ||
Buildings |
|
67,696,301 |
|
15 |
|
67,450,256 |
|
15 |
| ||
Computer equipment |
|
15,028,053 |
|
3 |
|
15,936,481 |
|
4 |
| ||
Telecommunications equipment |
|
658,802,536 |
|
147 |
|
657,319,135 |
|
148 |
| ||
Transportation equipment |
|
2,584,674 |
|
1 |
|
2,258,925 |
|
|
| ||
Miscellaneous equipment |
|
6,977,717 |
|
2 |
|
7,087,675 |
|
2 |
| ||
Total cost |
|
856,469,914 |
|
191 |
|
855,432,829 |
|
192 |
| ||
Revaluation increment on land |
|
5,762,418 |
|
1 |
|
5,762,611 |
|
1 |
| ||
|
|
862,232,332 |
|
192 |
|
861,195,440 |
|
193 |
| ||
Less: Accumulated depreciation |
|
575,688,456 |
|
128 |
|
570,644,684 |
|
128 |
| ||
|
|
286,543,876 |
|
64 |
|
290,550,756 |
|
65 |
| ||
Construction in progress and advances related to acquisition of equipment |
|
14,154,846 |
|
3 |
|
11,161,809 |
|
3 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Property, plant and equipment, net |
|
300,698,722 |
|
67 |
|
301,712,565 |
|
68 |
| ||
|
|
|
|
|
|
|
|
|
| ||
INTANGIBLE ASSETS (Note 2) |
|
|
|
|
|
|
|
|
| ||
3G concession |
|
5,053,109 |
|
1 |
|
5,801,718 |
|
1 |
| ||
Goodwill |
|
245,184 |
|
|
|
283,054 |
|
|
| ||
Others |
|
829,978 |
|
|
|
563,892 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Total intangible assets |
|
6,128,271 |
|
1 |
|
6,648,664 |
|
1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
OTHER ASSETS |
|
|
|
|
|
|
|
|
| ||
Leased assets |
|
397,724 |
|
|
|
408,645 |
|
|
| ||
Idle assets (Note 2) |
|
899,441 |
|
|
|
901,818 |
|
|
| ||
Refundable deposits (Note 28) |
|
1,653,679 |
|
1 |
|
1,380,145 |
|
1 |
| ||
Deferred income tax assets (Notes 2 and 25) |
|
340,360 |
|
|
|
499,527 |
|
|
| ||
Restricted assets (Note 29) |
|
8,672 |
|
|
|
63,439 |
|
|
| ||
Others (Note 28) |
|
4,197,120 |
|
1 |
|
4,417,941 |
|
1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total other assets |
|
7,496,996 |
|
2 |
|
7,671,515 |
|
2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
TOTAL |
|
$ |
449,394,805 |
|
100 |
|
$ |
445,573,349 |
|
100 |
|
|
|
|
|
|
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| ||
Short-term loans (Note 16) |
|
$ |
75,000 |
|
|
|
$ |
115,000 |
|
|
|
Short-term bills payable (Note 17) |
|
|
|
|
|
29,977 |
|
|
| ||
Financial liabilities at fair value through profit or loss (Notes 2 and 5) |
|
803 |
|
|
|
7,589 |
|
|
| ||
Trade notes and accounts payable |
|
12,630,673 |
|
3 |
|
9,183,150 |
|
2 |
| ||
Payables to related parties (Note 28) |
|
366,715 |
|
|
|
158,122 |
|
|
| ||
Income tax payable (Notes 2 and 25) |
|
5,474,430 |
|
1 |
|
6,930,237 |
|
2 |
| ||
Accrued expenses (Notes 18 and 21) |
|
15,042,834 |
|
3 |
|
15,890,445 |
|
4 |
| ||
Current portion of long-term loans (Note 20) |
|
683,723 |
|
|
|
306,802 |
|
|
| ||
Other current liabilities (Notes 10, 19, 21 and 28) |
|
21,565,357 |
|
5 |
|
18,719,272 |
|
4 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total current liabilities |
|
55,839,535 |
|
12 |
|
51,340,594 |
|
12 |
| ||
|
|
|
|
|
|
|
|
|
| ||
NONCURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| ||
Long-term loans (Note 20) |
|
1,050,000 |
|
|
|
3,123,141 |
|
1 |
| ||
Deferred income (Note 2) |
|
2,589,481 |
|
1 |
|
2,587,891 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Total noncurrent liabilities |
|
3,639,481 |
|
1 |
|
5,711,032 |
|
1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
RESERVE FOR LAND VALUE INCREMENTAL TAX (Note 15) |
|
94,986 |
|
|
|
94,986 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
OTHER LIABILITIES |
|
|
|
|
|
|
|
|
| ||
Accrued pension liabilities (Notes 2 and 27) |
|
1,492,529 |
|
1 |
|
1,334,341 |
|
|
| ||
Customers deposits (Note 28) |
|
4,954,927 |
|
1 |
|
5,834,716 |
|
2 |
| ||
Others |
|
342,638 |
|
|
|
423,749 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Total other liabilities |
|
6,790,094 |
|
2 |
|
7,592,806 |
|
2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total liabilities |
|
66,364,096 |
|
15 |
|
64,739,418 |
|
15 |
| ||
|
|
|
|
|
|
|
|
|
| ||
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT (Notes 2, 6, 15 and 22) |
|
|
|
|
|
|
|
|
| ||
Common stock - $10 par value; |
|
|
|
|
|
|
|
|
| ||
Authorized: 12,000,000 thousand shares |
|
|
|
|
|
|
|
|
| ||
Issued: 7,757,447 thousand shares |
|
77,574,465 |
|
17 |
|
77,574,465 |
|
17 |
| ||
Additional paid-in capital |
|
|
|
|
|
|
|
|
| ||
Capital surplus |
|
169,496,289 |
|
38 |
|
169,496,289 |
|
38 |
| ||
Donated capital |
|
13,170 |
|
|
|
13,170 |
|
|
| ||
Equity in additional paid-in capital reported by equity-method investees |
|
28,872 |
|
|
|
10,675 |
|
|
| ||
Total additional paid-in capital |
|
169,538,331 |
|
38 |
|
169,520,134 |
|
38 |
| ||
Retained earnings |
|
|
|
|
|
|
|
|
| ||
Legal reserve |
|
66,122,145 |
|
15 |
|
61,361,255 |
|
14 |
| ||
Special reserve |
|
2,675,894 |
|
1 |
|
2,675,894 |
|
1 |
| ||
Unappropriated earnings |
|
56,558,333 |
|
12 |
|
59,450,673 |
|
13 |
| ||
Total retained earnings |
|
125,356,372 |
|
28 |
|
123,487,822 |
|
28 |
| ||
Other adjustments |
|
|
|
|
|
|
|
|
| ||
Cumulative translation adjustments |
|
(73,603 |
) |
|
|
(87,526 |
) |
|
| ||
Unrecognized net loss of pension |
|
(38,106 |
) |
|
|
(40,182 |
) |
|
| ||
Unrealized gain on financial instruments |
|
178,880 |
|
|
|
167,997 |
|
|
| ||
Unrealized revaluation increment |
|
5,762,636 |
|
1 |
|
5,765,148 |
|
1 |
| ||
Total other adjustments |
|
5,829,807 |
|
1 |
|
5,805,437 |
|
1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total equity attributable to stockholders of the parent |
|
378,298,975 |
|
84 |
|
376,387,858 |
|
84 |
| ||
|
|
|
|
|
|
|
|
|
| ||
MINORITY INTERESTS IN SUBSIDIARIES |
|
4,731,734 |
|
1 |
|
4,446,073 |
|
1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total stockholders equity |
|
383,030,709 |
|
85 |
|
380,833,931 |
|
85 |
| ||
|
|
|
|
|
|
|
|
|
| ||
TOTAL |
|
$ |
449,394,805 |
|
100 |
|
$ |
445,573,349 |
|
100 |
|
The accompanying notes are an integral part of the consolidated financial statements.
(With Deloitte & Touche review report dated April 27, 2012)
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars, Except Earnings Per Share)
(Reviewed, Not Audited)
|
|
2012 |
|
2011 |
| ||||||
|
|
Amount |
|
% |
|
Amount |
|
% |
| ||
|
|
|
|
|
|
|
|
|
| ||
NET REVENUES (Note 28) |
|
$ |
55,418,294 |
|
100 |
|
$ |
52,475,031 |
|
100 |
|
|
|
|
|
|
|
|
|
|
| ||
OPERATING COSTS (Note 28) |
|
36,622,429 |
|
66 |
|
31,243,436 |
|
60 |
| ||
|
|
|
|
|
|
|
|
|
| ||
GROSS PROFIT |
|
18,795,865 |
|
34 |
|
21,231,595 |
|
40 |
| ||
|
|
|
|
|
|
|
|
|
| ||
OPERATING EXPENSES (Note 28) |
|
|
|
|
|
|
|
|
| ||
Marketing |
|
5,600,296 |
|
10 |
|
5,465,668 |
|
10 |
| ||
General and administrative |
|
1,006,461 |
|
2 |
|
994,778 |
|
2 |
| ||
Research and development |
|
858,193 |
|
2 |
|
826,942 |
|
2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total operating expenses |
|
7,464,950 |
|
14 |
|
7,287,388 |
|
14 |
| ||
|
|
|
|
|
|
|
|
|
| ||
INCOME FROM OPERATIONS |
|
11,330,915 |
|
20 |
|
13,944,207 |
|
26 |
| ||
|
|
|
|
|
|
|
|
|
| ||
NON-OPERATING INCOME AND GAINS (Note 28) |
|
|
|
|
|
|
|
|
| ||
Interest income |
|
189,429 |
|
1 |
|
141,401 |
|
|
| ||
Equity in earnings of equity method investees, net |
|
173,925 |
|
|
|
63,587 |
|
|
| ||
Gain on disposal of financial instruments, net |
|
49,058 |
|
|
|
86,786 |
|
|
| ||
Valuation gain on financial instruments, net |
|
16,602 |
|
|
|
|
|
|
| ||
Gain on disposal of property, plant and equipment, net |
|
4,872 |
|
|
|
318,479 |
|
1 |
| ||
Others |
|
97,689 |
|
|
|
55,810 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Total non-operating income and gains |
|
531,575 |
|
1 |
|
666,063 |
|
1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
NON-OPERATING EXPENSES AND LOSSES |
|
|
|
|
|
|
|
|
| ||
Foreign exchange loss, net |
|
5,748 |
|
|
|
114,526 |
|
|
| ||
Interest expense |
|
5,645 |
|
|
|
8,633 |
|
|
| ||
Valuation loss on financial instruments, net |
|
|
|
|
|
42,721 |
|
|
| ||
Others |
|
18,224 |
|
|
|
7,970 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Total non-operating expenses and losses |
|
29,617 |
|
|
|
173,850 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
INCOME BEFORE INCOME TAX |
|
11,832,873 |
|
21 |
|
14,436,420 |
|
27 |
| ||
|
|
|
|
|
|
|
|
|
| ||
INCOME TAX EXPENSE (Notes 2 and 25) |
|
1,954,566 |
|
3 |
|
2,318,990 |
|
4 |
| ||
|
|
|
|
|
|
|
|
|
| ||
CONSOLIDATED NET INCOME |
|
$ |
9,878,307 |
|
18 |
|
$ |
12,117,430 |
|
23 |
|
(Continued)
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars, Except Earnings Per Share)
(Reviewed, Not Audited)
|
|
2012 |
|
2011 |
| ||||||
|
|
Amount |
|
% |
|
Amount |
|
% |
| ||
|
|
|
|
|
|
|
|
|
| ||
ATTRIBUTABLE TO |
|
|
|
|
|
|
|
|
| ||
Stockholders of the parent |
|
$ |
9,489,503 |
|
17 |
|
$ |
11,834,866 |
|
23 |
|
Minority interests |
|
388,804 |
|
1 |
|
282,564 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
9,878,307 |
|
18 |
|
$ |
12,117,430 |
|
23 |
|
|
|
2012 |
|
2011 |
| ||||||||
|
|
Before |
|
After |
|
Before |
|
After |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
EARNINGS PER SHARE (Note 26) |
|
|
|
|
|
|
|
|
| ||||
Basic earnings per share |
|
$ |
1.46 |
|
$ |
1.22 |
|
$ |
1.79 |
|
$ |
1.50 |
|
Diluted earnings per share |
|
$ |
1.45 |
|
$ |
1.22 |
|
$ |
1.78 |
|
$ |
1.50 |
|
The accompanying notes are an integral part of the consolidated financial statements.
(With Deloitte & Touche review report dated April 27, 2012) |
|
(Concluded) |
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
| ||
Consolidated net income |
|
$ |
9,878,307 |
|
$ |
12,117,430 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
Provision for doubtful accounts |
|
11,391 |
|
42,539 |
| ||
Depreciation and amortization |
|
8,075,791 |
|
8,062,708 |
| ||
Amortization of premium of financial assets |
|
16,357 |
|
14,086 |
| ||
Gain on disposal of financial instruments, net |
|
(49,058 |
) |
(86,786 |
) | ||
Valuation loss (gain) on financial instruments, net |
|
(16,602 |
) |
42,721 |
| ||
Gain on disposal of property, plant and equipment, net |
|
(4,872 |
) |
(318,479 |
) | ||
Equity in earnings of equity method investees, net |
|
(173,925 |
) |
(63,587 |
) | ||
Deferred income taxes |
|
3,870 |
|
(61,699 |
) | ||
Changes in operating assets and liabilities: |
|
|
|
|
| ||
Decrease (increase) in: |
|
|
|
|
| ||
Financial assets held for trading |
|
27,401 |
|
35,008 |
| ||
Trade notes and accounts receivable |
|
315,192 |
|
(5,138,402 |
) | ||
Receivables from related parties |
|
423,917 |
|
486,244 |
| ||
Other monetary assets |
|
397,924 |
|
(490,922 |
) | ||
Inventories |
|
(168,132 |
) |
(1,166,933 |
) | ||
Other current assets |
|
(2,800,497 |
) |
(1,969,087 |
) | ||
Increase (decrease) in: |
|
|
|
|
| ||
Trade notes and accounts payable |
|
(1,600,956 |
) |
(2,670,970 |
) | ||
Payables to related parties |
|
(805,593 |
) |
(366,323 |
) | ||
Income tax payable |
|
1,935,670 |
|
2,360,272 |
| ||
Accrued expenses |
|
(3,521,523 |
) |
(2,511,269 |
) | ||
Other current liabilities |
|
1,118,010 |
|
1,367,196 |
| ||
Deferred income |
|
12,019 |
|
(1,019 |
) | ||
Accrued pension liabilities |
|
47,836 |
|
43,109 |
| ||
|
|
|
|
|
| ||
Net cash provided by operating activities |
|
13,122,527 |
|
9,725,837 |
| ||
|
|
|
|
|
| ||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
| ||
Acquisition of designated financial assets at fair value through profit or loss |
|
(24,513 |
) |
(58,233 |
) | ||
Proceeds from disposal of designated financial assets at fair value through profit or loss |
|
34,767 |
|
22,323 |
| ||
Acquisition of available-for-sale financial assets |
|
(3,713,215 |
) |
(340,946 |
) | ||
Proceeds from disposal of available-for-sale financial assets |
|
443,360 |
|
414,786 |
| ||
Acquisition of held-to-maturity financial assets |
|
(1,411,766 |
) |
(1,978,103 |
) | ||
Proceeds from disposal of held-to-maturity financial assets |
|
1,000,629 |
|
300,000 |
| ||
Acquisition of financial assets carried at cost |
|
|
|
(19,264 |
) | ||
Proceeds from disposal of financial assets carried at cost |
|
1,977 |
|
6,979 |
| ||
Acquisition of property, plant and equipment |
|
(6,689,309 |
) |
(4,376,298 |
) | ||
Proceeds from disposal of property, plant and equipment |
|
19,851 |
|
647,721 |
| ||
(Continued)
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Increase in intangible assets |
|
$ |
(67,429 |
) |
$ |
(40,372 |
) |
Decrease in restricted assets |
|
|
|
3,803 |
| ||
Decrease (increase) in other assets |
|
4,171 |
|
(609,128 |
) | ||
|
|
|
|
|
| ||
Net cash used in investing activities |
|
(10,401,477 |
) |
(6,026,732 |
) | ||
|
|
|
|
|
| ||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
| ||
Decrease in short term bill payable |
|
|
|
(199,919 |
) | ||
Repayment of long-term loans |
|
(26,536 |
) |
(27,211 |
) | ||
Decrease in customers deposits |
|
(80,018 |
) |
(65,027 |
) | ||
Increase (decrease) in other liabilities |
|
(65,051 |
) |
53,659 |
| ||
Capital reduction |
|
|
|
(19,393,617 |
) | ||
Proceeds from exercise of employee stock option granted by subsidiary |
|
27,775 |
|
44,232 |
| ||
|
|
|
|
|
| ||
Net cash used in financing activities |
|
(143,830 |
) |
(19,587,883 |
) | ||
|
|
|
|
|
| ||
EFFECT OF EXCHANGE RATE CHANGES |
|
(27,880 |
) |
15,725 |
| ||
|
|
|
|
|
| ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
2,549,340 |
|
(15,873,053 |
) | ||
|
|
|
|
|
| ||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
|
67,389,556 |
|
90,875,222 |
| ||
|
|
|
|
|
| ||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
|
$ |
69,938,896 |
|
$ |
75,002,169 |
|
|
|
|
|
|
| ||
SUPPLEMENTAL INFORMATION |
|
|
|
|
| ||
Interest paid (excluding capitalized interest expense) |
|
$ |
7,956 |
|
$ |
13,537 |
|
Income tax paid |
|
$ |
21,359 |
|
$ |
15,595 |
|
|
|
|
|
|
| ||
NON-CASH FINANCING ACTIVITIES |
|
|
|
|
| ||
Current portion of long-term loans |
|
$ |
8,372 |
|
$ |
233,545 |
|
|
|
|
|
|
| ||
CASH AND NON-CASH INVESTING ACTIVITIES |
|
|
|
|
| ||
Increase in property, plant and equipment |
|
$ |
5,781,689 |
|
$ |
3,938,098 |
|
Payables to suppliers |
|
849,769 |
|
438,420 |
| ||
Prepayments for equipment |
|
57,851 |
|
(220 |
) | ||
|
|
$ |
6,689,309 |
|
$ |
4,376,298 |
|
(Continued)
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars)
(Reviewed, Not Audited)
InfoExplorer Co., Ltd. (IFE) merged with International Integrated System, Inc. and e-ToYou International, Inc. on April 1, 2011. After the merger, IFE became the surviving entity and was renamed as International Integrated System, Inc. (IISI). International Integrated System, Inc. and e-ToYou International, Inc. were dissolved. As IFE issued new shares for the aforementioned share swap, the following table presents the allocation of acquisition costs of International Integrated System Inc. and e-ToYou International Inc. to assets acquired and liabilities assumed based on their fair values:
Cash and cash equivalents |
|
$ |
46,592 |
|
Accounts receivables |
|
199,592 |
| |
Financial assets at fair value through profit and loss |
|
38,073 |
| |
Other current assets |
|
17,822 |
| |
Long-term investments |
|
34,051 |
| |
Property, plant, and equipment |
|
4,996 |
| |
Refundable deposits |
|
43,553 |
| |
Other assets |
|
4,472 |
| |
Accounts payables |
|
(79,713 |
) | |
Other current liabilities |
|
(25,145 |
) | |
Other liabilities |
|
(38,480 |
) | |
Common stock issued by IFE |
|
$ |
245,813 |
|
Chunghwa has lost control over International Integrated System Inc. (IISI) on June 24, 2011. The following table presents assets and liabilities of IISI based on their fair values:
Current assets (excluding cash) |
|
$ |
591,925 |
|
Long-term investments |
|
64,219 |
| |
Property, plant, and equipment |
|
59,891 |
| |
Intangible assets |
|
2,679 |
| |
Other assets |
|
130,173 |
| |
Current liabilities |
|
(276,356 |
) | |
Other liabilities |
|
(102,917 |
) | |
Net assets |
|
(628,912 |
) | |
Cash balance upon deconsolidation |
|
$ |
(159,298 |
) |
The accompanying notes are an integral part of the consolidated financial statements.
(With Deloitte & Touche review report dated April 27, 2012) |
|
(Concluded) |
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENT
FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars, Unless Stated Otherwise)
(Reviewed, Not Audited)
1. GENERAL
Chunghwa Telecom Co., Ltd. (Chunghwa) was incorporated on July 1, 1996 in the Republic of China (ROC) pursuant to the Article 30 of the Telecommunications Act. Chunghwa is a company limited by shares and, prior to August 2000, was wholly owned by the Ministry of Transportation and Communications (MOTC). Prior to July 1, 1996, the current operations of Chunghwa were carried out under the Directorate General of Telecommunications (DGT). The DGT was established by the MOTC in June 1943 to take primary responsibility in the development of telecommunications infrastructure and to formulate policies related to telecommunications. On July 1, 1996, the telecom operations of the DGT were spun-off to as Chunghwa which continues to carry out the business and the DGT continues to be the industry regulator.
As the dominate telecommunications service provider of fixed-line and Global System for Mobile Communications (GSM) in the ROC, Chunghwa is subject to additional regulations imposed by ROC.
Effective August 12, 2005, the MOTC had completed the process of privatizing Chunghwa by reducing the government ownership to below 50% in various stages. In July 2000, Chunghwa received approval from the Securities and Futures Commission (the SFC) for a domestic initial public offering and its common shares were listed and traded on the Taiwan Stock Exchange (the TSE) on October 27, 2000. Certain of Chunghwas common shares had been sold, in connection with the foregoing privatization plan, in domestic public offerings at various dates from August 2000 to July 2003. Certain of Chunghwas common shares had also been sold in an international offering of securities in the form of American Depository Shares (ADS) on July 17, 2003 and were listed and traded on the New York Stock Exchange (the NYSE). The MOTC sold common shares of Chunghwa by auction in the ROC on August 9, 2005 and completed the second international offering on August 10, 2005. Upon completion of the share transfers associated with these offerings on August 12, 2005, the MOTC owned less than 50% of the outstanding shares of Chunghwa and completed the privatization plan.
Senao International Co., Ltd. (SENAO) was incorporated in 1979. SENAO has been listed on the Taiwan Stock Exchange under the number 2450 since May 2001. SENAO engages mainly in selling and maintaining mobile phones and its peripheral products. Chunghwa acquired 31.33% shares of SENAO on January 15, 2007 and has substantial control in SENAO by obtaining half of the seats of the board of directors of SENAO on April 12, 2007. At general annual stockholder meeting of SENAO in June 2010, Chunghwa continued to maintain control of a majority of the board of directors through the continued support of other shareholder. The Companys equity ownership of SENAO decreased from 31.33% as of January 15, 2007 to 28.33% as of March 31, 2012 due to the exercise of options by employees that were previously granted before 2007.
Senao International (Samoa) Holding Ltd. (SIS) was established by SENAO in 2009. SIS engages mainly in international investment activities.
Senao International HK Limited (SIHK) was established by SIS in 2009. SIHK engages mainly in international investment activities.
Senao Trading (Fujian) Co., Ltd. (STF) was established by SIHK in 2011. STF engages mainly in sale of information and communication technology services.
Senao International Trading (Shanghai) Co., Ltd. (SITS) was established by SIHK in 2011. SITS engages mainly in sale of information and communication technology services.
Senao International Trading (Shanghai) Co., Ltd. (SEITS) was established by SIHK in 2011. SEITS engages mainly in provision of information and communication maintenance services.
The English name is the same as the above entity; however, the Chinese names included in the respective Articles of Incorporations are different.
Senao International Trading (Jiangsu) Co., Ltd. (SITJ) was established by SIHK in 2011. SITJ engages mainly in sale of information and communication technology services.
Chunghwa established Chunghwa International Yellow Pages Co., Ltd. (CIYP) in January 2007. CIYP engages mainly in yellow pages sales and advertisement services.
CHIEF Telecom Inc. (CHIEF) was incorporated in 1991. CHIEF engages mainly in internet communication and internet data center (IDC) service. Chunghwa acquired 70% shares of CHIEF on September 2006.
Unigate Telecom Inc. (Unigate) was established by CHIEF in 1999. Unigate engages mainly in telecommunication and information software service.
Chief International Corp. (CIC) was established by CHIEF in 2008. CIC engages mainly in internet communication and internet data center (IDC) services.
Chunghwa System Integration Co., Ltd. (CHSI) was incorporated in 2002. CHSI engages mainly in providing communication and information integration services. Chunghwa acquired 100% shares of CHSI in December 2007.
Concord Technology Co., Ltd. (Concord), a subsidiary of CHSI, was incorporated in 2006. Concord engages mainly in investment activities.
Glory Network System Service (Shanghai) Co., Ltd. (GNSS (Shanghai)), a subsidiary of Concord, was incorporated in 2006. GNSS (Shanghai) engages mainly in planning and designing of systems and communications and information integration services.
Chunghwa Telecom Global, Inc. (CHTG) was incorporated in 2004. CHTG engages mainly in international data and internet services and long distance call wholesales to carriers. Chunghwa acquired 100% shares of CHTG in December 2007.
Donghwa Telecom Co., Ltd. (DHT) was incorporated in 2004. DHT engages mainly in international telecommunications, IP fictitious internet and internet transfer services. Chunghwa acquired 100% shares of DHT in December 2007.
Spring House Entertainment Inc. (SHE) was incorporated in 2000. SHE engages mainly in network services, producing digital entertainment contents and broadband visual sound terrace development. Chunghwa obtained control interest over it in January 2008.
Ceylon Innovation Co., Ltd. (CEI) was established by SHE in April 2011. CEI engages mainly in international trade, general advertisement and book publishing service.
Chunghwa established Light Era Development Co., Ltd. (LED) in January 2008. LED engages mainly in development of property for rent and sale.
Yao Yong Real Property Co., Ltd. (YYRP) was incorporated in 2002. YYRP engages mainly in real estate management and leasing business. LED acquired 100% ownership interest of YYRP on March 1, 2010.
Chunghwa established Chunghwa Telecom Singapore Pte. Ltd. (CHTS) in July 2008, CHTS engages mainly in telecommunication wholesale, internet transfer services, international data, long distance call wholesales to carriers and the world satellite business.
Chunghwa established Chunghwa Telecom Japan Co., Ltd. (CHTJ) in October 2008. CHTJ engages mainly in telecommunication business, information processing and information providing service, development and sale of software and consulting services in telecommunication.
InfoExplorer Co., Ltd. (IFE) issued new shares as the consideration to merge with International Integrated System, Inc. and e-ToYou International, Inc. on April 1, 2011. After the merger, IFE became the surviving entity and was renamed as International Integrated System, Inc. (IISI). International Integrated System, Inc. and e-ToYou International, Inc. were dissolved. As a result of the additional shares being issued by IFE in connection with this transaction, Chunghwas ownership interest in IISI decreased from 49% to 33% after the merger, and after the stockholders meeting of IISI on June 24, 2011, Chunghwa lost control of the board of directors.
Chunghwa Investment Co., Ltd. (CHI) was established in 2002. CHI engages mainly in professional investing in telecommunication business, and telecommunication valued-added services. CHI was equity-method investee of the parent company. Chunghwa acquired over 50% shares of CHI on September 2009.
Chunghwa Precision Test Tech. Co., Ltd. (CHPT) was established in 2005 as the subsidiary of CHI. CHPT engages mainly in production and marketing in semiconductor testers and printed circuit board.
Chunghwa Precision Test Tech. USA Corporation (CHPT (US)) was established by CHPT in 2010. CHPT (US) engages mainly in production and marketing in semiconductor testers and printed circuit boards.
Chunghwa Investment Holding Co., Ltd. (CIHC) was established by CHI in 2004. CIHC engages mainly in investment activities.
CHI One Investment Co., Ltd. (COI) was established by CIHC in 2009. COI engages mainly in investment activities.
Chunghwa has established New Prospect Investments Holdings Ltd. (New Prospect) in March 2006. The holding company is operating as investment company and Chunghwa has 100% ownership interest in an amount of US$1 in the holding company as of March 31, 2012.
Chunghwa has established Prime Asia Investments Group Ltd. (Prime Asia) in March 2006. This holding company is operating as an investment company.
Chunghwa Hsingta Company Ltd. (CHC) was established by Prime Asia in December 2010. CHC engages mainly in investment activities.
Chunghwa Telecom (China) Co., Ltd. (CTC) was established by CHC in March 2011. CTC engages mainly in energy conserving and providing services of planning, design, and integration of information systems.
Jiangsu Zhenhua Information Technology Company, LLC. (JZIT) was established by CHC and Zhenjiang New Area Hi-Tech Industrial Investment Co., Ltd. in January 2012. JZIT engages mainly in intelligent energy networks (iEN) and incorporating iEN into buildings.
Chunghwa has established Chunghwa Telecom Vietnam Co., Ltd. (CHTV) in May 2011. CHTV engages mainly in providing information and communications technology, international private leased circuit, and intelligent energy network services.
Chunghwa and Sochamp Technology Inc. established a joint venture, Chunghwa Sochamp Technology Inc. (CHST), in July 2011. CHST mainly engages in license plate recognition system.
Chunghwa and United Daily News established a joint venture, Smartfun Digital Co., Ltd. (SFD), in August 2011. SFD mainly engages in sales of educational software which provides digital parenting education.
As of March 31, 2012 and 2011, the Company had 29,113 and 28,243 employees, respectively.
The following diagram presents information regarding the relationship and ownership percentages between Chunghwa and its subsidiaries as of March 31, 2012:
Chunghwa together with its subsidiaries are hereinafter referred to collectively as the Company. Minority interests in the aforementioned subsidiaries are presented as a separate component of stockholders equity.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying consolidated financial statements were prepared in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and accounting principles generally accepted in the ROC (ROC GAAP). The significant accounting policies are summarized as follows:
Principle of Consolidation
The Company accounts for business combinations in accordance with the requirements of the Statement of Financial Accounting Standards No. 25, Business Combinations.
The accompanying consolidated financial statements include the accounts of all directly and indirectly majority owned subsidiaries of the Company, and the accounts of investees in which the Companys ownership percentage is less than 50% but over which the Company has a controlling interest. All significant intercompany transactions and balances are eliminated upon consolidation.
The consolidated financial statements for the three months ended March 31, 2012 include the accounts of Chunghwa, SENAO, SIS, SIHK, STF, SITS, SEITS, SITJ, CIYP, CHIEF, Unigate, CIC, CHSI, Concord, GNSS (Shanghai), CHTG, DHT, SHE, CEI, LED, YYRP, CHTS, CHTJ, CHI, CHPT, CHPT (US), CIHC, COI, New Prospect, Prime Asia, CHC, CTC, JZIT, CHTV, CHST, and SFD. The consolidated financial statements for the three months ended March 31, 2011 include the accounts of Chunghwa, SENAO, SIS, SIHK, STF, SITS, SITJ, CIYP, CHIEF, Unigate, CIC, CHSI, Concord, GNSS (Shanghai), CHTG, DHT, SHE, LED, YYRP, CHTS, CHTJ, IISI, IESA, IEHK, CHI, CHPT, CHPT (US), CIHC, COI, New Prospect, Prime Asia, CHC and CTC.
For foreign subsidiaries using their local currency as their functional currency, assets and liabilities are translated into New Taiwan dollars at the exchange rates in effect on the balance sheet date; stockholders equity accounts are translated into New Taiwan dollars at historical exchange rates and income statement accounts are translated into New Taiwan dollars at average exchange rates during the period.
The consolidated financial statements as of and for the three months ended March 31, 2012 and 2011 of the following subsidiaries have not been reviewed: CIYP, CHIEF, Unigate, CIC, CHSI, Concord, GNSS (Shanghai), CHTG, DHT, SHE, CEI, LED, YYRP, CHTS, CHTJ, CHI, CHPT, CHPT (US), CIHC, COI, New Prospect, Prime Asia, CHC, CTC, JZIT, CHTV, CHST and SFD, as of and for the three months ended March 31, 2012. CIYP, CHIEF, Unigate, CIC, CHSI, Concord, GNSS (Shanghai), CHTG, DHT, SHE, LED, YYRP, CHTS, CHTJ, IISI, IESA, IEHK, CHI, CHPT, CHPT (US), CIHC, COI, New Prospect, Prime Asia, CHC, and CTC, as of and for the three months ended March 31, 2011. The total assets of these subsidiaries were 3.43% ($15,412,474 thousand) and 3.43% ($15,290,879 thousand), and the total liabilities of these subsidiaries were 7.64% ($5,068,890 thousand) and 9.96% ($6,450,737 thousand), of the related consolidated amounts as of March 31, 2012 and 2011, respectively. The total revenues of these subsidiaries were 3.17% ($1,757,410 thousand) and 2.02% ($1,058,007 thousand) of the related consolidated revenues for the three months ended March 31, 2012 and 2011, respectively, and their net losses were $3,453 thousand and $8,788 thousand for the three months ended March 31, 2012 and 2011, respectively.
Foreign-currency Transactions
Foreign-currency transactions other than derivative contracts are recorded in New Taiwan dollars at the rates of exchange in effect when the transactions occur. Exchange gains or losses derived from foreign-currency transactions or monetary assets and liabilities denominated in foreign currencies are recognized in earnings. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are revalued at prevailing exchange rates with the resulting gains or losses recognized in earnings.
At the balance sheet date, foreign-currency nonmonetary assets (such as equity instruments) and liabilities that are measured at fair value are revalued using prevailing exchange rates. When a gain or loss on a nonmonetary item is recognized in stockholders equity, any exchange component of that gain or loss shall be recognized in stockholders equity. Conversely, when a gain or loss on a non-monetary item is recognized in earnings, any exchange component of that gain or loss shall be recognized in earnings.
Foreign-currency nonmonetary assets and liabilities that are carried at cost continue to be stated at exchange rates at trade dates.
The financial statements of foreign equity investees and consolidated subsidiaries are translated into New Taiwan dollars at the following exchange rates. Assets and liabilities - spot rates at period-end; stockholders equity - historical rates, income and expenses - average rates during the period.
The resulting translation adjustments of financial statements shall be recorded as cumulative translation adjustments, a separate component of stockholders equity.
Accounting Estimates
Under above guidelines, law and principles, certain estimates and assumptions have been used for the allowance for doubtful accounts, allowance for loss on inventories, depreciation of property, plant and equipment, impairment of assets, bonuses to employees, directors and supervisors, pension cost, income tax, etc. Actual results may differ from these estimates.
Current and Noncurrent Assets and Liabilities
Current assets include cash and cash equivalents, and those assets held primarily for trading purposes or to be realized, sold or consumed within one year from the balance sheet date. All other assets are classified as noncurrent. Current liabilities are obligations incurred for trading purposes or to be settled within one year from the balance sheet date. All other liabilities are classified as noncurrent.
LED engages mainly in development of property for rent and sale. The assets and liabilities of LED related to property development within its operating cycle, which is over one year, are classified as current items. Assets and liabilities related to property development over its operating cycle are classified as noncurrent items.
Cash Equivalents
Cash equivalents are commercial paper purchased with maturities of three months or less from the date of acquisition. The carrying amount approximates fair value.
Financial Assets and Liabilities at Fair Value Through Profit or Loss
Financial instruments classified as financial assets or financial liabilities at fair value through profit or loss (FVTPL) include financial assets or financial liabilities held for trading and are designated as at FVTPL on initial recognition. The Company recognizes a financial asset or a financial liability when the Company becomes a party to the contractual provisions of the financial instrument. A financial asset is derecognized when the Company losses control of its contractual rights over the financial asset. A financial liability is derecognized when the obligation specified in the relevant contract is discharged, cancelled or expired.
Financial instruments at FVTPL are initially measured at fair value. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized as expenses as incurred. Financial assets or financial liabilities at FVTPL are remeasured at fair value, subsequently with changes in fair value recognized in earnings. Cash dividends received subsequently (including those received in the period of investment) are recognized as income. On derecognition of a financial asset or a financial liability, the difference between its carrying amount and the sum of the consideration received and receivable or consideration paid and payable is recognized in earnings. Regular way purchases or sales of financial assets are accounted for using trade date accounting.
Derivatives that do not meet the criteria for hedge accounting are classified as financial assets or financial liabilities held for trading. When the fair value is positive, the derivative is recognized as a financial asset; when the fair value is negative, the derivative is recognized as a financial liability.
Fair values of financial assets and financial liabilities at the balance sheet date are determined as follows: Forward exchange contracts and currency swap contracts are estimated by valuation techniques; index future contracts are determined at their market quotation on the balance sheet date; bonds are based on prices quoted by GreTai Securities Market (GTSM).
Available-for-sale Financial Assets
Available-for-sale financial assets are initially recognized at fair value plus transaction costs that are directly attributable to the acquisition. Changes in fair value from subsequent remeasurement are reported as a separate component of stockholders equity. The corresponding accumulated gains or losses are recognized in earnings when the financial asset is derecognized from the balance sheet. A regular way purchase or sale of financial assets is accounted for using trade date accounting.
The recognition and derecognition of available-for-sale financial assets are the same with those of financial assets at FVTPL.
Fair values are determined as follows: Listed stocks - at closing prices at the balance sheet date; open-end mutual funds - at net asset values at the balance sheet date; bonds - quoted at prices provided by the Taiwan GreTai Securities Market; and financial assets and financial liabilities without quoted prices in an active market - at values determined using valuation techniques.
Cash dividends are recognized in earnings on the ex-dividend date, except for the dividends declared before acquisition which are treated as a reduction of investment cost. Stock dividends are recorded as an increase in the number of shares and do not affect investment income. The total number of shares subsequent to the increase of stock dividends is used to recalculate cost per share. The difference between the initial carrying amount of a debt instrument and its maturity amount is amortized using the effective interest method, with the amortized interest recognized in profit or loss.
An impairment loss is recognized when there is objective evidence that the financial asset is impaired. If, in a subsequent period, the amount of the impairment loss decreases, for equity securities, the previously recognized impairment loss is reversed to the extent of the decrease and recorded as an adjustment to stockholders equity; for debt securities, the amount of the decrease is recognized in earnings, provided that the decrease is clearly attributable to an event which occurred after the impairment loss was recognized.
Held-to-maturity Financial Assets
Held-to-maturity financial assets are carried at amortized cost using the effective interest method. Those financial assets are initially recognized at fair value plus transaction costs that are directly attributable to the acquisition. Gains and losses are recognized at the time of derecognition, impairment or amortization. A regular way purchase or sale of financial assets is accounted for using trade date accounting.
If there is objective evidence which indicates that a financial asset is impaired, a loss is recognized. If, in a subsequent period, the amount of the impairment loss decreases and the decrease is clearly attributable to an event which occurred after the impairment loss was recognized, the previously recognized impairment loss is reversed to the extent of the decrease. The reversal may not result in a carrying amount that exceeds the amortized cost that would have been determined as if no impairment loss had been recognized.
Financial Assets Carried at Cost
Investments in equity instruments with no quoted prices in an active market and with fair values that cannot be reliably measured, such as non-publicly traded stocks and stocks traded in the Emerging Stock Market, are measured at their original cost. The accounting treatment for dividends on financial assets carried at cost is the same with that for dividends on available-for-sale financial assets. An impairment loss is recognized when there is objective evidence that the asset is impaired. A reversal of this impairment loss is disallowed.
Impairment of Accounts Receivable
An allowance for doubtful accounts is provided on the basis of a review of the collectibility of accounts receivable before January 1, 2011. The Company assesses the probability of collections of accounts receivable by examining the aging analysis of the outstanding receivables and assessing the value of the collateral provided by customers.
On January 1, 2011, the Company adopted the third-time revised Statement of Financial Accounting Standards (SFAS) No. 34, Financial Instruments: Recognition and Measurement. One of the main revisions is that the impairment of receivables originated by the Company should be covered by SFAS No. 34. Accounts receivable are assessed for impairment at the end of each reporting period and considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the accounts receivable, the estimated future cash flows of the asset have been affected.
The amount of the impairment loss recognized is the difference between the asset carrying amount and the present value of estimated future cash flows, after taking into account the related collateral and guarantees, discounted at the receivables original effective interest rate.
The carrying amount of the accounts receivable is reduced through the use of an allowance account.
Inventories
Inventories including merchandise and work-in-process are stated at the lower of cost (weighted-average cost) or net realizable value item by item, except for those that may be appropriate to group items of similar or related inventories. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. The calculation of the cost of inventory is derived using the weighted-average method.
Buildings and Lands Consigned to Constructing Firm
Inventories of LED are stated at the lower of cost or net realizable value item by item, except for those that may be appropriate to group as similar items or related inventories. Land acquired before construction is classified as land held for development, and then reclassified as land held under development after LED begins its construction project. Prepayments for licensing and other miscellaneous costs have been capitalized as part of inventory.
When using the completed-contract method for its construction projects, LED recognizes the proceeds from customers as advances from customers for land and building before the construction project is completed. After completion of the construction project and ownership is transferred to the customers, LED recognizes the relevant revenues.
When using percentage-of-completion method, profits are recorded based on LEDs estimates of the percentage of completion of individual contracts, commencing when the work performed under the contracts reaches a point where the final costs can be estimated with reasonable accuracy. Changes in job performance, job conditions and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. If the current estimates of total contract revenue and contract cost indicate a loss, a provision for the entire loss on the contract is recorded in the period in which it becomes evident.
The percentage of completion is measured based on the completion of the contract milestones predetermined by the architects and engineers. Construction in progress is stated at cost plus (less) amounts associated with estimated profit (loss) recognized on the basis of the percentage-of-completion method.
Investments Accounted for Using Equity Method
Investments in companies in which the Company exercises significant influence over the operating and financial policy decisions are accounted for by the equity method. Under the equity method, the investment is initially stated at cost and subsequently adjusted for its proportionate share in the net earnings of the investee companies. Any cash dividends received are recognized as a reduction in the carrying value of the investments.
Gains or losses on sales from the Company to equity method investees wherein Chunghwa exercises significant influence over these equity method investees are deferred in proportion to the Companys ownership percentage in the investees until such gains or losses are realized through transactions with third parties. Gains or losses on sales from equity method investees to Chunghwa are deferred in proportion to Chunghwas ownership percentages in the investees until they are realized through transactions with third parties.
When the Company subscribes for additional investees shares at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment in the investee differs from the amount of the Companys share of the investees equity. The Company records such a difference as an adjustment to long-term investments with the corresponding amount charged or credited to additional paid-in capital to the extent available, with the balance charged to retained earnings.
Property, Plant and Equipment
Property, plant and equipment are stated at cost plus a revaluation increment, if any, less accumulated depreciation and accumulated impairment loss. The interest costs that are directly attributable to the acquisition, construction of a qualifying asset are capitalized as property, plant and equipment. Major renewals and betterments are capitalized, while maintenance and repairs are expensed as incurred.
When an indication of impairment is identified, any excess of the carrying amount of an asset over its recoverable amount is recognized as a loss. If the recoverable amount increases in a subsequent period, the amount previously recognized as impairment would be reversed and recognized as a gain. However, the adjusted amount may not exceed the carrying amount that would have been determined, net of depreciation, as if no impairment loss had been recognized.
An impairment loss on a revalued asset is charged to unrealized revaluation increment under equity to the extent available, with the balance recognized as a loss in earnings. If the recoverable amount increases in a subsequent period, the amount previously recognized as impairment loss could be reversed and recognized as a gain, with the remaining credited to unrealized revaluation increment.
Depreciation expense is computed using the straight-line method over the following estimated service lives: land improvements - 10 to 30 years; buildings - 3 to 60 years; computer equipment - 2 to 15 years; telecommunication equipment - 3 to 20 years; transportation equipment - 3 to 10 years; and miscellaneous equipment - 2 to 12 years.
Upon sale or disposal of property, plant and equipment, the related cost, accumulated depreciation, accumulated impairment losses and any unrealized revaluation increment are deducted from the corresponding accounts, and any gain or loss is recorded as non-operating gains or losses in the period of sale or disposal.
Intangible Assets
Intangible assets mainly include 3G Concession, computer software, patents and goodwill.
The 3G Concession is valid through December 31, 2018. The 3G Concession fee is amortized on a straight-line basis from the date operations commence through the date the license expires. Computer software costs and patents are amortized using the straight-line method over the estimated useful lives of 2 to 20 years.
When an indication of impairment is identified for intangible assets other than goodwill, any excess of the carrying amount of an asset over its recoverable amount is recognized as a loss. If the recoverable amount increases in a subsequent period, the amount previously recognized as impairment would be reversed and recognized as a gain. However, the adjusted amount may not exceed the carrying amount that would have been determined, as if no impairment loss had been recognized.
Goodwill represents the excess of the consideration paid for business acquisition over the fair value of identifiable net assets acquired. Goodwill is tested for impairment annually. If an event occurs or circumstances change which indicates that the fair value of goodwill is below its carrying amount, an impairment loss is recognized. A subsequent reversal of such impairment loss is not allowed.
Idle Assets
Idle assets are carried at the lower of recoverable amount or carrying amount.
Pension Costs
Pension cost under a defined benefit plan is determined by actuarial valuations. Contributions made under a defined contribution plan are recognized as pension cost during the year in which employees render services.
Income Tax
The Company applies inter-period allocations for its income tax, whereby deferred income tax assets and liabilities are recognized for the tax effects of temporary differences and unused tax credits. Valuation allowances are provided to the extent, if any, that it is more likely than not that deferred income tax assets will not be realized. A deferred tax asset or liability is classified as current or noncurrent in accordance with the classification of its related asset or liability. However, if a deferred tax asset or liability does not relate to an asset or liability in the financial statements, then it is classified as either current or noncurrent based on the expected length of time before it is realized or settled.
Any tax credits arising from purchases of machinery, equipment and technology, research and development expenditures, personnel training, and investments in important technology based enterprises are recognized using the flow-through method.
Adjustments of prior years tax liabilities are added to or deducted from the current years tax provision.
Income taxes (10%) on undistributed earnings is recorded in the year of stockholders approval which is the year subsequent to the year the earnings are generated.
Share-based Compensation
Employee stock options granted on or after January 1, 2008 are accounted for using fair value method in accordance with SFAS No. 39, Accounting for Share-based Payment. The adoption of SFAS No. 39 did not have any impact on the Company.
Employee stock options granted between January 1, 2004 and December 31, 2007 were accounted for under the interpretations issued by the Accounting Research and Development Foundation (the ARDF). The Company adopted the intrinsic value method, under which compensation cost was amortized over the vesting period.
Revenue Recognition
Revenues are recognized when they are realized or realizable and earned. Revenues are realized or realizable and earned when the Company has persuasive evidence of an arrangement, the goods have been delivered or the services have been rendered to the customer, the sales price is fixed or determinable and collectibility is reasonably assured.
Revenue is measured at the fair value of the consideration received or receivable and represents amounts agreed between the Company and the customers for goods sold in the normal course of business, net of sales discounts and volume rebates. For trade receivables due within one year from the balance sheet date, as the nominal value of the consideration to be received approximates its fair value and transactions are frequent, fair value of the consideration is not determined by discounting all future receipts using an imputed rate of interest.
Usage revenues from fixed-line services (including local, domestic long distance and international long distance), cellular services, internet and data services, and interconnection and call transfer fees from other telecommunications companies and carriers are billed in arrears and are recognized based upon minutes of traffic processed when the services are provided in accordance with contract terms.
Other revenues are recognized as follows: (a) one-time subscriber connection fees (on fixed-line services) are deferred and recognized over the average expected customer service periods, (b) monthly fees (on fixed-line, mobile, Internet and data services) are accrued every month, and (c) prepaid services (fixed-line, mobile, Internet and data services) are recognized as income based upon actual usage by customers or when the right to use those services expires.
Where the Company enters into transactions which involve both the provision of air time bundled with products such as 3G data card and handset, total consideration received from handsets in these arrangements are allocated and measured using units of accounting within the arrangement based on relative fair values limited to the amount that is not contingent upon the delivery of other items or services.
Where the Company sells products to third party cellular phone stores the Company records the direct sale of the products, typically handsets, as gross revenue when the Company is the primary obligor in the arrangement and when title is passed and the products are accepted by the stores.
Expense Recognition
The costs of providing services and operating expenses are recognized as incurred.
3. EFFECT OF CHANGES IN ACCOUNTING PRINCIPLES
The Company adopted the newly-revised Statements of Financial Accounting Standards No. 34, Financial Instruments, (SFAS No. 34) beginning from January 1, 2011. When an enterprise adopts the revised provisions, the initial recognition of loans and receivables shall be accounted for under SFAS No. 34.
4. CASH AND CASH EQUIVALENTS
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Cash |
|
|
|
|
| ||
Cash on hand |
|
$ |
192,895 |
|
$ |
188,523 |
|
Bank deposits |
|
5,925,151 |
|
6,664,255 |
| ||
Negotiable certificate of deposit, annual yield rate - ranging from 0.70%-1.05% and 0.63%-0.72% for 2012 and 2011, respectively. |
|
43,897,632 |
|
53,250,000 |
| ||
|
|
50,015,678 |
|
60,102,778 |
| ||
Cash equivalents |
|
|
|
|
| ||
Commercial paper, annual yield rate - ranging from 0.70%-0.80% and 0.45%-0.57% for 2012 and 2011, respectively. |
|
19,923,218 |
|
14,899,391 |
| ||
|
|
|
|
|
| ||
|
|
$ |
69,938,896 |
|
$ |
75,002,169 |
|
5. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Derivatives - financial assets |
|
|
|
|
| ||
Currency swap contracts |
|
$ |
18,674 |
|
$ |
645 |
|
Forward exchange contracts |
|
31 |
|
|
| ||
Designated financial assets at fair value through profit or loss |
|
18,705 |
|
645 |
| ||
Convertible bonds |
|
46,318 |
|
78,798 |
| ||
|
|
|
|
|
| ||
|
|
$ |
65,023 |
|
$ |
79,443 |
|
|
|
|
|
|
| ||
Derivatives - financial liabilities |
|
|
|
|
| ||
Currency swap contracts |
|
$ |
517 |
|
$ |
6,348 |
|
Forward exchange contracts |
|
255 |
|
760 |
| ||
Index future contracts |
|
31 |
|
481 |
| ||
|
|
|
|
|
| ||
|
|
$ |
803 |
|
$ |
7,589 |
|
The Company entered into currency swap contracts, forward exchange contracts and index future contracts to reduce its exposure to foreign currency risk and variability in operating results due to fluctuations in exchange rates and stock prices. However, the aforementioned derivatives did not meet the criteria for hedge accounting and were classified as financial assets or financial liabilities held for trading.
Outstanding currency swap contracts and forward exchange contracts as of March 31, 2012 and 2011:
|
|
|
|
|
|
Contract Amount |
|
|
|
Currency |
|
Maturity Period |
|
(In Thousands) |
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency swap contracts |
|
US$/NT$ |
|
2012.04-2012.06 |
|
US$55,000/NT$1,641,726 |
|
Currency swap contracts |
|
US$/NT$ |
|
2012.05-2012.06 |
|
US$12,000/NT$353,495 |
|
Forward exchange contracts - buy |
|
NT$/US$ |
|
2012.04 |
|
NT$310,184/US$10,500 |
|
(Continued)
|
|
|
|
|
|
Contract Amount |
|
|
|
Currency |
|
Maturity Period |
|
(In Thousands) |
|
March 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency swap contracts |
|
US$/NT$ |
|
2011.04-2012.05 |
|
US$23,000/NT$670,586 |
|
Currency swap contracts |
|
US$/NT$ |
|
2011.06 |
|
US$5,000/NT$147,663 |
|
Forward exchange contracts - buy |
|
NT$/US$ |
|
2011.04 |
|
NT$347,760/US$11,800 |
|
(Concluded)
Outstanding index future contracts on March 31, 2012 and 2011 were as follows:
|
|
|
|
|
|
Contract |
| ||
|
|
|
|
|
|
Amount |
| ||
|
|
Maturity Period |
|
Units |
|
(In Thousands) |
| ||
March 31, 2012 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
TAIFEX futures |
|
|
|
|
|
|
|
| |
TX |
|
2012.04 |
|
6 |
|
|
NT$ |
9,463 |
|
TX |
|
2012.06 |
|
34 |
|
|
NT$ |
53,664 |
|
TE |
|
2012.04 |
|
9 |
|
|
NT$ |
10,849 |
|
TF |
|
2012.04 |
|
5 |
|
|
NT$ |
77,965 |
|
|
|
|
|
|
|
|
|
|
|
March 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAIFEX futures |
|
|
|
|
|
|
|
|
|
TX |
|
2011.04 |
|
14 |
|
|
NT$ |
23,788 |
|
TX |
|
2011.06 |
|
12 |
|
|
NT$ |
21,171 |
|
TE |
|
2011.04 |
|
4 |
|
|
NT$ |
5,034 |
|
TE |
|
2011.05 |
|
21 |
|
|
NT$ |
26,504 |
|
As of March 31, 2012 and 2011, the deposits paid for outstanding index future contracts (classified as other current assets) were $3,820 thousand and $2,914 thousand, respectively.
The convertible bonds owned by subsidiaries are hybrid financial instruments that are designated to be measured at fair value and changes in fair value are recognized in earnings.
Net gain (loss) arising from financial assets and liabilities at fair value through profit or loss for the three months ended March 31, 2012 and 2011 were $54,621 thousand (including realized settlement gain of $38,019 thousand and valuation gain of $16,602 thousand) and $(6,506) thousand (including realized settlement gain of $36,215 thousand and valuation loss of $42,721 thousand), respectively.
6. AVAILABLE-FOR-SALE FINANCIAL ASSETS
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Domestic listed stocks |
|
$ |
3,441,088 |
|
$ |
519,850 |
|
Open-end mutual funds |
|
2,406,540 |
|
1,540,837 |
| ||
Corporate bonds |
|
76,025 |
|
101,904 |
| ||
Foreign listed stocks |
|
11,595 |
|
|
| ||
|
|
5,935,248 |
|
2,162,591 |
| ||
Less: Current portion |
|
2,724,087 |
|
2,162,591 |
| ||
|
|
|
|
|
| ||
|
|
$ |
3,211,161 |
|
$ |
|
|
The board of directors resolved to acquire 263,622 thousand common shares of China Airline Ltd. (CAL) at $11.73 per share for the three months ended March 31, 2012. Chunghwa expected to hold it as long-term investment and classified it as available-for-sale financial assets - noncurrent. CAL engages mainly in aviatic transportation services.
Movements of unrealized gain (loss) on available-for-sale financial assets were as follows:
|
|
Three Months Ended March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Balance, beginning of period |
|
$ |
67,674 |
|
$ |
176,048 |
|
Recognized in stockholders equity |
|
118,241 |
|
(6,398 |
) | ||
Transferred to profit or loss |
|
(7,035 |
) |
(1,653 |
) | ||
|
|
|
|
|
| ||
Balance, end of period |
|
$ |
178,880 |
|
$ |
167,997 |
|
7. HELD-TO-MATURITY FINANCIAL ASSETS
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Corporate bonds, nominal interest rate ranging from 1.15%-2.90% and 1.20%-4.75% for 2012 and 2011, respectively; effective interest rate ranging from 1.00%-2.86% and 1.00%-2.95% for 2012 and 2011, respectively |
|
$ |
14,185,818 |
|
$ |
10,929,432 |
|
Bank debentures, nominal interest rate ranging from 1.37%-1.60% and 1.37%-2.11% for 2012 and 2011, respectively; effective interest rate ranging from 1.25%-1.40% and 1.25%-2.45% for 2012 and 2011, respectively |
|
905,337 |
|
1,106,542 |
| ||
|
|
15,091,155 |
|
12,035,974 |
| ||
Less: Current portion |
|
500,266 |
|
2,062,915 |
| ||
|
|
|
|
|
| ||
|
|
$ |
14,590,889 |
|
$ |
9,973,059 |
|
8. ALLOWANCE FOR DOUBTFUL ACCOUNTS
|
|
Three Months Ended March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Balance, beginning of period |
|
$ |
2,423,012 |
|
$ |
2,551,464 |
|
Provision for doubtful accounts |
|
9,765 |
|
39,018 |
| ||
Accounts receivable written off |
|
(36,081 |
) |
(63,975 |
) | ||
|
|
|
|
|
| ||
Balance, end of period |
|
$ |
2,396,696 |
|
$ |
2,526,507 |
|
9. OTHER MONETARY ASSETS - CURRENT
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Accrued custodial receipts of MOD service |
|
$ |
137,556 |
|
$ |
59,540 |
|
Other receivables |
|
1,529,717 |
|
2,578,095 |
| ||
|
|
|
|
|
| ||
|
|
$ |
1,667,273 |
|
$ |
2,637,635 |
|
10. INVENTORIES
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Merchandise |
|
$ |
3,653,533 |
|
$ |
2,988,868 |
|
Work in process |
|
408,686 |
|
1,001,360 |
| ||
Raw materials |
|
24,256 |
|
|
| ||
|
|
4,086,475 |
|
3,990,228 |
| ||
Land available for sale |
|
395,537 |
|
738,633 |
| ||
Land held under development |
|
111,536 |
|
499,045 |
| ||
Construction in progress |
|
772,486 |
|
471,734 |
| ||
Land held for development |
|
35,816 |
|
35,816 |
| ||
|
|
|
|
|
| ||
|
|
$ |
5,401,850 |
|
$ |
5,735,456 |
|
The operating costs related to inventories were $12,624,395 thousand (including valuation loss on inventories of $20,888 thousand) and $7,306,973 thousand (including valuation loss on inventories of $43,187 thousand) for the three months ended March 31, 2012 and 2011, respectively.
Land available for sale on March 31, 2012 was for Wan-Xi and Covent projects. Land available for sale on March 31, 2011 was for Wan-Xi and Li-Shui (B) projects.
Land held under development and construction in progress on March 31, 2012 was for Guang-Diang and Li-Shui (A) projects. Guang-Diang and Li-Shui (A) projects are expected to be completed in 2012. Land held under development and construction in progress on March 31, 2011 was for Guang-Diang, Li-Shui (A) and Covent projects. Covent project was completed in 2011, and reclassified to land available for sale.
LED recognizes the relevant revenues of Guang-Diang Project by percentage of completion method. The related information were as follows (in thousands):
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Percentage of completion method |
|
|
|
|
| ||
|
|
|
|
|
| ||
Guang-Diang project |
|
|
|
|
| ||
Contract price |
|
$ |
983,129 |
|
$ |
983,129 |
|
Estimated construction cost |
|
$ |
430,203 |
|
$ |
425,493 |
|
Land held under development |
|
$ |
64,987 |
|
$ |
64,987 |
|
(Continued)
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Construction in progress |
|
|
|
|
| ||
Construction cost |
|
$ |
328,809 |
|
$ |
212,120 |
|
Recognized cumulative gain |
|
443,677 |
|
256,254 |
| ||
|
|
|
|
|
| ||
|
|
$ |
772,486 |
|
$ |
468,374 |
|
|
|
|
|
|
| ||
Deferred marketing expenses (classified as other current assets) |
|
$ |
10,612 |
|
$ |
32,206 |
|
Advance from land and building (classified as other current liabilities) |
|
$ |
178,882 |
|
$ |
156,204 |
|
|
|
|
|
|
| ||
Percentage of completion |
|
91 |
% |
56 |
% | ||
Expected year of completion |
|
2012 |
|
2012 |
|
(Concluded)
11. OTHER CURRENT ASSETS
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Prepaid expenses |
|
$ |
3,759,735 |
|
$ |
3,029,591 |
|
Spare parts |
|
2,835,018 |
|
2,069,892 |
| ||
Prepaid rents |
|
1,058,353 |
|
857,530 |
| ||
Miscellaneous |
|
655,709 |
|
682,777 |
| ||
|
|
|
|
|
| ||
|
|
$ |
8,308,815 |
|
$ |
6,639,790 |
|
12. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
|
|
March 31 |
| ||||||||
|
|
2012 |
|
2011 |
| ||||||
|
|
Carrying |
|
% of |
|
Carrying |
|
% of |
| ||
|
|
|
|
|
|
|
|
|
| ||
Non-listed |
|
|
|
|
|
|
|
|
| ||
Taiwan International Standard Electronics Co., Ltd. (TISE) |
|
$ |
709,852 |
|
40 |
|
$ |
598,205 |
|
40 |
|
ST-2 Satellite Ventures Pte., Ltd. (STS) |
|
490,707 |
|
38 |
|
408,944 |
|
38 |
| ||
Senao Networks, Inc. (SNI) |
|
372,310 |
|
41 |
|
318,933 |
|
41 |
| ||
International Integrated System, Inc. (IISI) |
|
259,520 |
|
33 |
|
|
|
|
| ||
Viettel-CHT Co., Ltd. (Viettel-CHT) |
|
256,560 |
|
30 |
|
238,242 |
|
30 |
| ||
Huada Digital Corporation (HDD) |
|
250,778 |
|
50 |
|
|
|
|
| ||
Skysoft Co., Ltd. (SKYSOFT) |
|
125,290 |
|
30 |
|
98,101 |
|
30 |
| ||
Dian Zuan Intergrating Marketing Co., Ltd. (DZIM) |
|
108,533 |
|
40 |
|
|
|
|
| ||
Kingwaytek Technology Co., Ltd. (KWT) |
|
76,849 |
|
33 |
|
63,901 |
|
33 |
| ||
So-net Entertainment Co., Ltd. (So-net) |
|
34,644 |
|
30 |
|
28,620 |
|
30 |
| ||
HopeTech Technologies Limited (HopeTech) |
|
21,136 |
|
45 |
|
18,942 |
|
45 |
| ||
(Continued)
|
|
March 31 |
| ||||||||
|
|
2012 |
|
2011 |
| ||||||
|
|
Carrying |
|
% of |
|
Carrying |
|
% of |
| ||
Xiamen Sertec Business Technology Co., Ltd. (Sertec) |
|
$ |
10,793 |
|
49 |
|
$ |
5,795 |
|
49 |
|
Tatung Technology Inc. (Tatung) |
|
|
|
|
|
6,479 |
|
28 |
| ||
Panda Monium Company Ltd. |
|
|
|
43 |
|
|
|
43 |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
2,716,972 |
|
|
|
$ |
1,786,162 |
|
|
|
(Concluded)
InfoExplorer Co., Ltd. (IFE) issued new shares as the consideration to merge with International Integrated System, Inc. and e-ToYou International, Inc. on April 1, 2011. After the merger, IFE became the surviving entity and was renamed as International Integrated System, Inc. (IISI). International Integrated System, Inc. and e-ToYou International, Inc. were dissolved. As a result of the additional shares being issued by IFE in connection with this transaction, Chunghwas ownership interest in IISI decreased from 49% to 33% after the merger, and after the stockholders meeting of IISI on June 24, 2011, Chunghwa lost control of the board of directors.
Chunghwa invested in HDD in September 2011 by investing $250,000 thousand cash to acquire 50% of its shares. HDD engages mainly in providing software service.
Chunghwa, President Chain Store Corporation and EasyCard Corporation established a joint venture, DZIM, in May 2011. Chunghwa invested $114,640 thousand cash and held a 40% ownership of DZIM. DZIM engages mainly in information technology service and general advertisement service.
Tatung, the former equity method investee of CHI, completed a capital reduction and a capital increase plan in July 2011, however, CHI did not invested in the capital increase plan of Tatung as the percentage it held; therefore, CHI lost significant influence over Tatung. CHI reclassified Tatung from investments accounted for using equity method to financial assets carried at cost.
Except for the carrying value and net equity in earnings of HopeTech were calculated based on reviewed financial statements as of and for the three months ended March 31, 2012, the aggregate carrying values of the equity method investments whose financial statements have not been reviewed were $2,695,836 thousand and $1,786,162 thousand as of March 31, 2012 and 2011, respectively. The net equity in earnings of such equity investees were $173,202 thousand and $63,587 thousand for the three months ended March 31, 2012 and 2011, respectively.
13. FINANCIAL ASSETS CARRIED AT COST
|
|
March 31 |
| ||||||||
|
|
2012 |
|
2011 |
| ||||||
|
|
Carrying |
|
% of |
|
Carrying |
|
% of |
| ||
Non-listed |
|
|
|
|
|
|
|
|
| ||
Taipei Financial Center (TFC) |
|
$ |
1,789,530 |
|
12 |
|
$ |
1,789,530 |
|
12 |
|
Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II) |
|
200,000 |
|
17 |
|
200,000 |
|
17 |
| ||
iD Branding Ventures (iDBV) |
|
89,553 |
|
11 |
|
99,504 |
|
11 |
| ||
(Continued)
|
|
March 31 |
| ||||||||
|
|
2012 |
|
2011 |
| ||||||
|
|
Carrying |
|
% of |
|
Carrying |
|
% of |
| ||
|
|
|
|
|
|
|
|
|
| ||
Global Mobile Corp. (GMC) |
|
$ |
77,018 |
|
3 |
|
$ |
127,018 |
|
8 |
|
Innovation Works Development Fund, L.P. (IWDF) |
|
73,154 |
|
4 |
|
38,035 |
|
7 |
| ||
Procrystal Technology Co., Ltd. (Procrystal) |
|
68,185 |
|
2 |
|
30,000 |
|
1 |
| ||
Tons Lightology Inc. |
|
66,150 |
|
4 |
|
66,150 |
|
4 |
| ||
Tatung Technology Inc. (Tatung) |
|
60,081 |
|
11 |
|
|
|
|
| ||
UniDisplay Inc. |
|
55,450 |
|
3 |
|
55,450 |
|
4 |
| ||
MEDIAPRO TECHNOLOGY LTD. |
|
44,871 |
|
1 |
|
|
|
|
| ||
Innovation Works Limited (IW) |
|
31,391 |
|
2 |
|
31,391 |
|
7 |
| ||
Alder Optomechanical Corp. |
|
29,750 |
|
1 |
|
|
|
|
| ||
VisEra Technologies Company Ltd. |
|
29,371 |
|
|
|
29,371 |
|
|
| ||
Ultra Fine Optical Technology Co., Ltd. |
|
27,000 |
|
8 |
|
27,000 |
|
8 |
| ||
Hiroca Holdings Ltd. |
|
17,847 |
|
|
|
|
|
|
| ||
Digimax Inc. (DIG) |
|
15,080 |
|
4 |
|
15,080 |
|
4 |
| ||
N.T.U. Innovation Incubation |
|
12,000 |
|
9 |
|
12,000 |
|
9 |
| ||
CoaTronics Inc. |
|
12,000 |
|
9 |
|
12,000 |
|
9 |
| ||
Fashion Guide Co., Ltd. |
|
10,000 |
|
2 |
|
|
|
|
| ||
Aide Energy (Cayman) Holding Co., Ltd. (Aide) |
|
9,380 |
|
1 |
|
|
|
|
| ||
SuperAlloy Industrial Co., Ltd. |
|
6,732 |
|
|
|
7,123 |
|
|
| ||
CQi Energy Infocom Inc. (CQi) |
|
6,000 |
|
18 |
|
20,000 |
|
18 |
| ||
DelSolar Co. |
|
5,702 |
|
|
|
6,097 |
|
|
| ||
Optivision Technology Inc. |
|
5,087 |
|
|
|
10,189 |
|
|
| ||
Cando Corporation |
|
4,946 |
|
|
|
4,946 |
|
|
| ||
Tatung Fine Chemicals Co. (TFChemicals) |
|
4,365 |
|
|
|
9,135 |
|
|
| ||
Subtron Technology Co. |
|
3,608 |
|
|
|
5,053 |
|
|
| ||
3 Link Information Service Co., Ltd. |
|
3,450 |
|
10 |
|
3,450 |
|
10 |
| ||
XinTec Inc. |
|
1,078 |
|
|
|
1,078 |
|
|
| ||
RPTI International (RPTI) |
|
|
|
10 |
|
34,500 |
|
10 |
| ||
Taimide Technology Ltd. |
|
|
|
|
|
18,909 |
|
1 |
| ||
Lextar Electronics Corp. |
|
|
|
|
|
16,243 |
|
|
| ||
PChome Store Inc. |
|
|
|
|
|
14,072 |
|
3 |
| ||
Huga Optotech Inc. |
|
|
|
|
|
12,870 |
|
|
| ||
Win Semiconductors Corp. |
|
|
|
|
|
10,555 |
|
|
| ||
A2peak Power Co., Ltd. (A2P) |
|
|
|
3 |
|
9,858 |
|
3 |
| ||
Chia Chang Co., Ltd. |
|
|
|
|
|
9,366 |
|
|
| ||
ChipSip Technology Co., Ltd. (ChipSip) |
|
|
|
|
|
6,133 |
|
2 |
| ||
Crystal Media Inc. (CMI) |
|
|
|
|
|
5,630 |
|
5 |
| ||
G-Tech Optoelectronics Corp. |
|
|
|
|
|
1,599 |
|
|
| ||
Essence Technology Solution, Inc. (ETS) |
|
|
|
7 |
|
|
|
7 |
| ||
eASPNet Inc. |
|
|
|
|
|
|
|
2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
2,758,779 |
|
|
|
$ |
2,739,335 |
|
|
|
(Concluded)
The above investments do not have quoted market prices in an active market and the fair values cannot be reliably measured; therefore, these investments are carried at original cost.
14. OTHER MONETARY ASSETS - NONCURRENT
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Piping Fund |
|
$ |
1,000,000 |
|
$ |
1,000,000 |
|
As part of the governments effort to upgrade the existing telecommunications infrastructure, Chunghwa and other public utility companies were required by the ROC government to contribute a total of $1,000,000 thousand to a Piping Fund administered by the Taipei City Government. This fund was used to finance various telecommunications infrastructure projects.
15. PROPERTY, PLANT AND EQUIPMENT
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Cost |
|
|
|
|
| ||
Land |
|
$ |
103,808,185 |
|
$ |
103,828,369 |
|
Land improvements |
|
1,572,448 |
|
1,551,988 |
| ||
Buildings |
|
67,696,301 |
|
67,450,256 |
| ||
Computer equipment |
|
15,028,053 |
|
15,936,481 |
| ||
Telecommunications equipment |
|
658,802,536 |
|
657,319,135 |
| ||
Transportation equipment |
|
2,584,674 |
|
2,258,925 |
| ||
Miscellaneous equipment |
|
6,977,717 |
|
7,087,675 |
| ||
Total cost |
|
856,469,914 |
|
855,432,829 |
| ||
Revaluation increment on land |
|
5,762,418 |
|
5,762,611 |
| ||
|
|
862,232,332 |
|
861,195,440 |
| ||
Accumulated depreciation |
|
|
|
|
| ||
Land improvements |
|
1,055,246 |
|
1,014,410 |
| ||
Buildings |
|
20,027,643 |
|
18,882,108 |
| ||
Computer equipment |
|
11,206,729 |
|
12,223,984 |
| ||
Telecommunications equipment |
|
536,606,919 |
|
531,127,049 |
| ||
Transportation equipment |
|
1,223,611 |
|
1,524,816 |
| ||
Miscellaneous equipment |
|
5,568,308 |
|
5,872,317 |
| ||
|
|
575,688,456 |
|
570,644,684 |
| ||
Construction in progress and advances related to acquisition of equipment |
|
14,154,846 |
|
11,161,809 |
| ||
|
|
|
|
|
| ||
Property, plant and equipment, net |
|
$ |
300,698,722 |
|
$ |
301,712,565 |
|
Pursuant to the related regulation, Chunghwa revalued its land owned as of April 30, 2000 based on the publicly announced value on July 1, 1999. These revaluations which were approved by the Ministry of Auditing resulted in increases in the carrying values of property, plant and equipment of $5,986,074 thousand, liabilities for land value incremental tax of $211,182 thousand, and stockholders equity - other adjustments of $5,774,892 thousand.
The amendment to the Land Tax Act, relating to the article to permanently lower land value incremental tax, went effective from February 1, 2005. In accordance with the lowered tax rates, Chunghwa recomputed its land value incremental tax, and reclassified the reserve for land value incremental tax of $116,196 thousand to stockholders equity - other adjustments. As of March 31, 2012, the unrealized revaluation increment was decreased to $5,762,636 thousand due to disposal of revaluation assets.
Depreciation expense on property, plant and equipment for the three months ended March 31, 2012 and 2011 were $7,711,261 thousand and $7,714,492 thousand, respectively. Capitalized interest expense for the three months ended March 31, 2012 and 2011 were $6 thousand and $30 thousand, respectively. The capitalized interest rate were 1.20% and 1.10%, respectively.
16. SHORT-TERM LOANS
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Unsecured loans - annual rate - 1.24%-1.53% and 1.10%-1.45% for the 2012 and 2011, respectively |
|
$ |
75,000 |
|
$ |
115,000 |
|
17. SHORT-TERM BILLS PAYABLE
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Commercial paper - annual rate - 0.84% |
|
$ |
|
|
$ |
29,977 |
|
18. ACCRUED EXPENSES
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Accrued salary and compensation |
|
$ |
6,230,835 |
|
$ |
6,952,935 |
|
Accrued franchise fees |
|
2,742,409 |
|
2,719,377 |
| ||
Accrued employees bonuses and remuneration to directors and supervisors |
|
2,728,615 |
|
2,924,790 |
| ||
Other accrued expenses |
|
3,340,975 |
|
3,293,343 |
| ||
|
|
|
|
|
| ||
|
|
$ |
15,042,834 |
|
$ |
15,890,445 |
|
19. OTHER CURRENT LIABILITIES
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Advance receipts |
|
$ |
12,918,140 |
|
$ |
11,296,223 |
|
Payables to equipment suppliers |
|
1,755,372 |
|
1,304,937 |
| ||
Amounts collected in trust for others |
|
1,361,600 |
|
1,676,680 |
| ||
Payables to contractors |
|
1,247,230 |
|
697,783 |
| ||
Refundable customers deposits |
|
1,081,913 |
|
1,102,520 |
| ||
Others |
|
3,201,102 |
|
2,641,129 |
| ||
|
|
|
|
|
| ||
|
|
$ |
21,565,357 |
|
$ |
18,719,272 |
|
20. LONG-TERM LOANS (INCLUDING LONG-TERM LOANS - CURRENT PORTION)
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
Secured loans - annual rate - 1.10% and 0.92%-1.66% for 2012 and 2011, respectively |
|
$ |
1,650,000 |
|
$ |
3,245,752 |
|
Unsecured loans - annual rate - 2.01% and 2.01%-2.17% for 2012 and 2011, respectively |
|
83,723 |
|
184,191 |
| ||
|
|
1,733,723 |
|
3,429,943 |
| ||
Less: Current portion of long-term loans |
|
683,723 |
|
306,802 |
| ||
|
|
|
|
|
| ||
|
|
$ |
1,050,000 |
|
$ |
3,123,141 |
|
LED obtained a secured loan from Chang Hwa Bank in September 2010. Interest is paid monthly and the principal is paid yearly from December 2011 and due in September 2015. LED renegotiated the loan repayment schedule with Chang Hwa bank in September 2011. LED early repaid $1,100,000 thousand in 2011, and will repay $600,000 thousand and $1,050,000 thousand in December 2012 and September 2015, respectively.
LED obtained a secured loan from First Commercial Bank in September 2010. Interest is paid monthly and the principal is paid yearly from September 2014 and due in September 2017. The loan was repaid early in June 2011.
CHPT obtained a secured loan from the E.SUN Commercial Bank in February 2009. Interest and the principal are paid monthly from March 2009 and due in February 2012.
CHIEF obtained an unsecured loan from Bank of Taiwan in January 2009. Interest and principal amount are paid monthly from January 2009 and due in January 2013.
21. MATURITY ANALYSIS OF ASSETS AND LIABILITIES
The Company classified LEDs assets and liabilities of the construction operations as current and noncurrent according to the length of the operating cycle of the construction operations. Maturity analysis of LEDs related assets and liabilities was as follows:
|
|
March 31, 2012 |
| |||||||
|
|
Within |
|
Over |
|
Total |
| |||
Assets |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
Accounts receivable |
|
$ |
16,662 |
|
$ |
|
|
$ |
16,662 |
|
Inventories |
|
1,000,367 |
|
315,008 |
|
1,315,375 |
| |||
Deferred expenses (classified as other current assets) |
|
4,448 |
|
6,164 |
|
10,612 |
| |||
|
|
|
|
|
|
|
| |||
|
|
$ |
1,021,477 |
|
$ |
321,172 |
|
$ |
1,342,649 |
|
Liabilities |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
Accrued expenses |
|
$ |
31,542 |
|
$ |
|
|
$ |
31,542 |
|
Payable to contractors (classified as other current liabilities) |
|
29,279 |
|
|
|
29,279 |
| |||
Advance from land and building (classified as other current liabilities) |
|
281,591 |
|
|
|
281,591 |
| |||
|
|
|
|
|
|
|
| |||
|
|
$ |
342,412 |
|
$ |
|
|
$ |
342,412 |
|
|
|
March 31, 2011 |
| |||||||
|
|
Within |
|
Over |
|
Total |
| |||
Assets |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
Inventories |
|
$ |
|
|
$ |
1,745,228 |
|
$ |
1,745,228 |
|
Deferred expenses (classified as other current assets) |
|
|
|
113,835 |
|
113,835 |
| |||
Restricted assets |
|
|
|
35,671 |
|
35,671 |
| |||
|
|
|
|
|
|
|
| |||
|
|
$ |
|
|
$ |
1,894,734 |
|
$ |
1,894,734 |
|
|
|
|
|
|
|
|
| |||
Liabilities |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
Payable to contractors (classified as other current liabilities) |
|
$ |
|
|
$ |
11,583 |
|
$ |
11,583 |
|
Advance from land and building (classified as other current liabilities) |
|
|
|
555,517 |
|
555,517 |
| |||
|
|
|
|
|
|
|
| |||
|
|
$ |
|
|
$ |
567,100 |
|
$ |
567,100 |
|
22. STOCKHOLDERS EQUITY
Under Chunghwas Articles of Incorporation, Chunghwas authorized capital is $120,000,000 thousand, which is divided into 12,000,000 thousand common shares (at $10 par value per share), among which 7,757,447 thousand common shares are issued and outstanding as of March 31, 2012.
For the purpose of privatizing Chunghwa, the MOTC sold 1,109,750 thousand common shares of Chunghwa in an international offering of securities in the form of American Depositary Shares (ADS) amounting to 110,975 thousand units (one ADS represents ten common shares) on the New York Stock Exchange on July 17, 2003. Afterwards, the MOTC sold 1,350,682 thousand common shares in the form of ADS amounting to 135,068 thousand units on August 10, 2005. Subsequently, the MOTC and Taiwan Mobile Co., Ltd. sold 505,389 thousand and 58,959 thousand common shares of Chunghwa, respectively, in the form of ADS totally amounting to 56,435 thousand units on September 29, 2006. The MOTC and Taiwan Mobile Co., Ltd. have sold 3,024,780 thousand common shares in the form of ADS amounting to 302,478 thousand units. As of March 31, 2012, the outstanding ADSs were 439,309 thousand common shares, which equaled approximately 43,931 thousand units and represented 5.66% of Chunghwas total outstanding common shares.
The ADS holders generally have the same rights and obligations as other common stockholders, subject to the provision of relevant laws. The exercise of such rights and obligations shall comply with the related regulations and deposit agreement, which stipulate, among other things, that ADS holders can, through deposit agents:
a. Exercise their voting rights,
b. Sell their ADSs, and
c. Receive dividends declared and subscribe to the issuance of new shares.
Under the ROC Company Law, additional paid-in capital may only be utilized to offset deficits. However, the additional paid-in capital from shares issued in excess of par and donations may be capitalized, which however is limited to a certain percentage of Chunghwas paid-in capital. However, where a company undergoes an organizational change (such as a merger, acquisition, or reorganization) that results in the capitalization of undistributed earnings after the organizational change, the above restriction does not apply. Under the revised Company Law issued on January 4, 2012, the aforementioned additional paid-in capital also may be distributed in cash. The additional paid-in capital from long-term investments may not be used for any purpose.
In addition, before distributing a dividend or making any other distribution to stockholders, Chunghwa must pay all outstanding taxes, recover any past losses and set aside a legal reserve equal to 10% of its net income, and depending on its business needs or requirements, may also set aside a special reserve. In accordance with the Articles of Incorporation, no less than 50% of the remaining earnings comprising remaining balance of net income, if any, plus cumulative undistributed earnings shall be distributed in the following order: (a) from 2% to 5% of distributable earnings shall be distributed to employees as employee bonus; (b) no more than 0.2% of distributable earnings shall be distributed to board of directors and supervisors as remuneration; and (c) cash dividends to be distributed shall not be less than 50% of the total amount of dividends to be distributed. If cash dividends to be distributed is less than $0.10 per share, such cash dividend shall be distributed in the form of common shares.
For the three months ended March 31, 2012 and 2011, the accrual amounts for bonuses to employees and remuneration to directors and supervisors were accrued on past experiences and probable amount to be paid in accordance with Chunghwas Articles of Incorporation and Implementation Guidance for the Employees Bonus Distribution of Chunghwa Telecom Co., Ltd.
If the initial accrual amounts of the aforementioned bonus are significantly different from the amounts proposed by the board of directors, the difference is charged to the earnings of the year making the initial estimate. Otherwise, the difference between initial accrual amount and the amount resolved in the stockholders meeting is charged to the earnings of the following year as a result of change in accounting estimate.
Under the ROC Company Law, the appropriation for legal reserve shall be made until the accumulated reserve equals the aggregate par value of the outstanding capital stock of Chunghwa. This reserve can only be used to offset a deficit, or, under the revised Company Law issued on January 4, 2012, when the legal reserve has exceeded 25% of the Companys paid-in capital, the excess may be transferred to capital or distributed in cash.
The appropriations and distributions of the 2011 earnings of Chunghwa have been resolved by the board of directors on March 27, 2012, and the appropriations and distributions of the 2010 earnings of Chunghwa have been approved by the stockholders on June 24, 2011 as follows:
|
|
Appropriation of Earnings |
|
Dividends Per Share |
| ||||||||
|
|
For Fiscal |
|
For Fiscal |
|
For Fiscal |
|
For Fiscal |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Legal reserve |
|
$ |
4,706,838 |
|
$ |
4,760,890 |
|
|
|
|
| ||
Cash dividends |
|
42,361,864 |
|
42,854,462 |
|
$ |
5.46 |
|
$ |
5.52 |
| ||
The amounts for bonuses to employees and remuneration to directors and supervisors resolved in the board of directors on March 27, 2012, were $2,040,090 thousand and $44,446 thousand, respectively. There was no difference between the initial accrual amounts and the amounts resolved in board of directors of the aforementioned bonuses to employees and the remuneration to directors and supervisors.
The amounts for bonuses to employees and remuneration to directors and supervisors approved in the stockholders meeting on June 24, 2011, were $2,144,074 thousand and $45,044 thousand, respectively. There was no difference between the initial accrual amounts and the amounts resolved in stockholders meeting of the aforementioned bonuses to employees and the remuneration to directors and supervisors.
The appropriation and distribution of the 2011 earnings, and the amounts for bonuses to employees and remuneration to directors and supervisors is subject to the approval in the stockholders meeting on June 22, 2012. Information on the appropriation of Chunghwas earnings, employees bonuses and remuneration to directors and supervisors resolved by the board of directors and approved by the stockholders is available at the Market Observation Post System website.
The stockholders, at the stockholders meeting held on June 18, 2010, resolved to reduce the amount of $19,393,617 thousand in capital of Chunghwa by a cash distribution to its stockholders. The abovementioned 2010 capital reduction proposal was effectively approved by FSC. The board of directors of Chunghwa was authorized to designate the record date of capital reduction as of October 26, 2010. Subsequently, the stock transfer record date of capital reduction was designated as January 15, 2011. The amount due to stockholders for capital reduction was $19,393,617 thousand and such cash payment to stockholders was made in January 2011.
23. SHARE-BASED COMPENSATION PLANS
SENAO share-based compensation plans (SENAO Plans) described as follows:
Effective Date |
|
Grant Date |
|
Stock Options Units |
|
Exercise Price |
|
|
|
|
|
|
|
|
|
2004.12.01 |
|
2005.11.28 |
|
1,500 |
|
13.5 |
|
|
|
|
|
|
|
(Original price $18.3 |
) |
2005.09.30 |
|
2006.05.05 |
|
10,000 |
|
12.1 |
|
|
|
|
|
|
|
(Original price $16.9 |
) |
2007.10.16 |
|
2007.10.31 |
|
6,181 |
|
42.6 |
|
|
|
|
|
|
|
(Original price $44.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
17,681 |
|
|
|
Each option is eligible to subscribe for one common share when exercisable. Under the terms of the Plans, the options are granted at an exercise price equal to the closing price of the SENAOs common shares listed on the TSE on the higher of closing price or par value. The SENAO Plans have an exercise price adjustment formula upon the issuance of new common shares, capitalization of retained earnings and/or capital reserves, stock split as well as distribution of cash dividend (except for 2007 Plan), except (i) in the case of issuance of new shares in connection with mergers and in the case of cancellation of outstanding shares in connection with capital reduction (2007 Plan is out of this exception), and (ii) except if the exercise price after adjustment exceeds the exercise price before adjustment. The options of all the Plans are valid for six years and the graded vesting schedule for which 50% of option granted will vest two years after the grant date and another two tranches of 25%, each will vest three and four years after the grant date respectively.
Information about SENAOs outstanding stock options for the three months ended March 31, 2012 and 2011 was as follows:
|
|
Stock Options Outstanding |
| ||||||||
|
|
2012 |
|
2011 |
| ||||||
|
|
Number of |
|
Weighted |
|
Number of |
|
Weighted |
| ||
|
|
|
|
|
|
|
|
|
| ||
Options outstanding, beginning of period |
|
2,278 |
|
$ |
38.85 |
|
5,103 |
|
$ |
36.15 |
|
Options exercised |
|
(828 |
) |
33.57 |
|
(1,274 |
) |
34.72 |
| ||
Options expired |
|
(5 |
) |
12.10 |
|
(7 |
) |
39.94 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Options outstanding, end of period |
|
1,445 |
|
41.97 |
|
3,822 |
|
36.61 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Options exercisable, end of period |
|
1,445 |
|
|
|
2,440 |
|
|
| ||
As of March 31, 2012, information about SENAOs outstanding and exercisable options was as follows:
Options Outstanding |
|
Options Exercisable |
| |||||||||||
Range of Exercise |
|
Number of |
|
Weighted |
|
Weighted |
|
Number of |
|
Weighted |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
$ |
12.1 |
|
30 |
|
0.08 |
|
$ |
12.10 |
|
30 |
|
$ |
12.10 |
|
$ |
42.6 |
|
1,415 |
|
1.67 |
|
42.60 |
|
1,415 |
|
42.60 |
| ||
As of March 31, 2011, information about SENAOs outstanding and exercisable options was as follows:
Options Outstanding |
|
Options Exercisable |
| |||||||||||
Range of Exercise |
|
Number of |
|
Weighted |
|
Weighted |
|
Number of |
|
Weighted |
| |||
|
|
|
|
|
|
|
|
|
|
|
| |||
$ |
12.4 |
|
758 |
|
1.08 |
|
$ |
12.40 |
|
758 |
|
$ |
12.40 |
|
$ |
42.6 |
|
3,064 |
|
2.67 |
|
42.60 |
|
1,682 |
|
42.60 |
| ||
No compensation cost was recognized under the intrinsic value method for the three months ended March 31, 2012 and 2011. Had SENAO used the fair value method to recognize the compensation cost, there would have been no significant impact on the consolidated net income and earnings per share.
Had SENAO used the fair value method to evaluate the options using the Black-Scholes model, the assumptions of SENAO would have been as follows:
|
|
October 31, |
|
May 5, |
|
November 28, |
| |||
|
|
|
|
|
|
|
| |||
Expected dividend yield |
|
1.49 |
% |
|
|
|
| |||
Risk free interest rate |
|
2.00 |
% |
1.75 |
% |
2.00 |
% | |||
Expected life |
|
4.375 years |
|
4.375 years |
|
4.375 years |
| |||
Expected volatility |
|
39.82 |
% |
39.63 |
% |
43.40 |
% | |||
Weighted-average fair value of grants |
|
$ |
13.69 |
|
$ |
5.88 |
|
$ |
6.93 |
|
24. COMPENSATION, DEPRECIATION AND AMORTIZATION EXPENSES
|
|
Three Months Ended March 31, 2012 |
| |||||||
|
|
Operating |
|
Operating |
|
|
| |||
|
|
Costs |
|
Expenses |
|
Total |
| |||
|
|
|
|
|
|
|
| |||
Compensation expense |
|
|
|
|
|
|
| |||
Salaries |
|
$ |
3,240,311 |
|
$ |
2,860,037 |
|
$ |
6,100,348 |
|
Insurance |
|
281,476 |
|
237,800 |
|
519,276 |
| |||
Pension |
|
450,168 |
|
326,188 |
|
776,356 |
| |||
Other compensation |
|
1,916,693 |
|
1,366,479 |
|
3,283,172 |
| |||
|
|
|
|
|
|
|
| |||
|
|
$ |
5,888,648 |
|
$ |
4,790,504 |
|
$ |
10,679,152 |
|
|
|
|
|
|
|
|
| |||
Depreciation expense |
|
$ |
7,241,629 |
|
$ |
469,632 |
|
$ |
7,711,261 |
|
Amortization expense |
|
$ |
296,598 |
|
$ |
57,102 |
|
$ |
353,700 |
|
|
|
Three Months Ended March 31, 2011 |
| |||||||
|
|
Operating |
|
Operating |
|
|
| |||
|
|
Costs |
|
Expenses |
|
Total |
| |||
|
|
|
|
|
|
|
| |||
Compensation expense |
|
|
|
|
|
|
| |||
Salaries |
|
$ |
3,072,279 |
|
$ |
2,631,848 |
|
$ |
5,704,127 |
|
Insurance |
|
272,432 |
|
220,066 |
|
492,498 |
| |||
Pension |
|
435,031 |
|
310,388 |
|
745,419 |
| |||
Other compensation |
|
2,442,144 |
|
1,717,516 |
|
4,159,660 |
| |||
|
|
|
|
|
|
|
| |||
|
|
$ |
6,221,886 |
|
$ |
4,879,818 |
|
$ |
11,101,704 |
|
|
|
|
|
|
|
|
| |||
Depreciation expense |
|
$ |
7,287,955 |
|
$ |
426,987 |
|
$ |
7,714,942 |
|
Amortization expense |
|
$ |
289,316 |
|
$ |
54,858 |
|
$ |
344,174 |
|
25. INCOME TAX
a. Income tax expense consisted of the following:
|
|
Three Months Ended March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Income tax payable |
|
$ |
1,946,775 |
|
$ |
2,380,261 |
|
Income tax - deferred |
|
3,870 |
|
(61,699 |
) | ||
Adjustments of prior years income tax |
|
(730 |
) |
428 |
| ||
Foreign income tax |
|
4,651 |
|
|
| ||
|
|
|
|
|
| ||
Income tax |
|
$ |
1,954,566 |
|
$ |
2,318,990 |
|
b. Net deferred income tax assets (liabilities) consisted of the following:
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Current |
|
|
|
|
| ||
|
|
|
|
|
| ||
Deferred income tax assets (liabilities) |
|
|
|
|
| ||
Provision for doubtful accounts |
|
$ |
255,934 |
|
$ |
227,177 |
|
Valuation loss on inventory |
|
36,249 |
|
13,510 |
| ||
Loss carryforward |
|
27,540 |
|
|
| ||
Unrealized accrued expense |
|
26,590 |
|
50,620 |
| ||
Estimated warranty liabilities |
|
8,630 |
|
22,016 |
| ||
Unrealized foreign exchange loss, net |
|
5,289 |
|
19,703 |
| ||
Investment tax credit |
|
3,402 |
|
8,995 |
| ||
Valuation loss (gain) on financial instruments, net |
|
(3,087 |
) |
969 |
| ||
Other |
|
4,709 |
|
16,331 |
| ||
|
|
365,256 |
|
359,321 |
| ||
Valuation allowance |
|
(254,258 |
) |
(234,008 |
) | ||
|
|
|
|
|
| ||
Net deferred income tax assets - current |
|
$ |
110,998 |
|
$ |
125,313 |
|
|
|
|
|
|
| ||
Noncurrent |
|
|
|
|
| ||
|
|
|
|
|
| ||
Deferred income tax assets (liabilities) |
|
|
|
|
| ||
Accrued pension cost |
|
$ |
249,172 |
|
$ |
303,046 |
|
Equity in losses of equity method investees, net |
|
48,483 |
|
9,670 |
| ||
Loss carryforward |
|
34,616 |
|
88,996 |
| ||
Impairment loss |
|
11,947 |
|
62,854 |
| ||
Investment tax credit |
|
3,487 |
|
7,239 |
| ||
Abandonment of equipment not approved by National Tax Administration |
|
107 |
|
37,562 |
| ||
Other |
|
(2,603 |
) |
3,189 |
| ||
|
|
345,209 |
|
512,556 |
| ||
Valuation allowance |
|
(4,849 |
) |
(13,029 |
) | ||
|
|
|
|
|
| ||
Net deferred income tax assets - noncurrent |
|
$ |
340,360 |
|
$ |
499,527 |
|
As of March 31, 2012, details for investment tax credit of CHPT are as follows:
|
|
|
|
Remaining |
|
|
| |
|
|
|
|
Creditable |
|
Expiry |
| |
Law/Statue |
|
Items |
|
Amount |
|
Year |
| |
|
|
|
|
|
|
|
| |
Statute for Upgrading Industries |
|
Personnel training expenditures |
|
$ |
1,823 |
|
2012 |
|
|
|
Personnel training expenditures |
|
3,288 |
|
2013 |
| |
|
|
Purchase of machinery and equipment |
|
1,579 |
|
2012 |
| |
|
|
Purchase of machinery and equipment |
|
199 |
|
2013 |
| |
|
|
|
|
|
|
|
| |
|
|
|
|
$ |
6,889 |
|
|
|
As of March 31, 2012, loss carryforward of CHIEF, Unigate, CEI, LED, CHI and SFD are as follows:
|
|
Total |
|
Unused |
|
Expiry |
| ||
Company |
|
Amounts |
|
Amounts |
|
Year |
| ||
|
|
|
|
|
|
|
| ||
CHIEF |
|
$ |
17,267 |
|
$ |
5,108 |
|
2015 |
|
|
|
14,943 |
|
14,943 |
|
2016 |
| ||
|
|
8,558 |
|
8,558 |
|
2017 |
| ||
|
|
1,409 |
|
1,409 |
|
2018 |
| ||
Unigate |
|
13 |
|
13 |
|
2017 |
| ||
|
|
6 |
|
6 |
|
2018 |
| ||
|
|
8 |
|
8 |
|
2020 |
| ||
|
|
23 |
|
23 |
|
2021 |
| ||
|
|
5 |
|
5 |
|
2022 |
| ||
CEI |
|
9 |
|
9 |
|
2021 |
| ||
|
|
3 |
|
3 |
|
2022 |
| ||
LED |
|
5,426 |
|
4,253 |
|
2018 |
| ||
|
|
7,571 |
|
7,571 |
|
2019 |
| ||
|
|
7,957 |
|
7,957 |
|
2020 |
| ||
|
|
10,458 |
|
10,458 |
|
2021 |
| ||
CHI |
|
3,376 |
|
574 |
|
2020 |
| ||
SFD |
|
1,258 |
|
1,258 |
|
2021 |
| ||
|
|
|
|
|
|
|
| ||
|
|
$ |
78,290 |
|
$ |
62,156 |
|
|
|
c. The related information under the Integrated Income Tax System is as follows:
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Balance of Imputation Credit Account (ICA) |
|
|
|
|
| ||
Chunghwa |
|
$ |
4,831,010 |
|
$ |
4,483,339 |
|
The estimated and the actual creditable ratios distribution of Chunghwas of 2011 and 2010 for earnings were 17.46% and 18.76%, respectively. The imputation credit allocated to stockholders is based on its balance as of the date of dividend distribution. The estimated creditable ratio may change when the actual distribution of imputation credit is made.
d. Undistributed earnings information
All Chunghwas earnings generated prior to June 30, 1998 have been appropriated.
Chunghwas income tax returns have been examined by tax authorities through 2007. The following subsidiaries income tax returns have been examined by authorities through 2009: SENAO, CHIEF, Unigate, CHPT, CHSI and SHE. The following subsidiaries income tax returns have been examined by tax authorities through 2010: CHI, YYRP, LED and CIYP.
26. EARNINGS PER SHARE
EPS was calculated as follows:
|
|
Amount (Numerator) |
|
Weighted- |
|
Earnings Per Share |
| ||||||||
|
|
Income |
|
Net Income |
|
Common Shares |
|
Income |
|
Net Income |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Three months ended March 31, 2012 |
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic EPS |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders of the parent |
|
$ |
11,320,545 |
|
$ |
9,489,503 |
|
7,757,447 |
|
$ |
1.46 |
|
$ |
1.22 |
|
Effect of dilutive potential common stock |
|
|
|
|
|
|
|
|
|
|
| ||||
SENAOs stock options |
|
(2,254 |
) |
(2,254 |
) |
|
|
|
|
|
| ||||
Employee bonus |
|
|
|
|
|
25,386 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders of the parent (including effect of dilutive potential common stock) |
|
$ |
11,318,291 |
|
$ |
9,487,249 |
|
7,782,833 |
|
$ |
1.45 |
|
$ |
1.22 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Three months ended March 31, 2011 |
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic EPS |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders of the parent |
|
$ |
14,078,894 |
|
$ |
11,834,866 |
|
7,886,737 |
|
$ |
1.79 |
|
$ |
1.50 |
|
Effect of dilutive potential common stock |
|
|
|
|
|
|
|
|
|
|
| ||||
SENAOs stock options |
|
(1,685 |
) |
(1,685 |
) |
|
|
|
|
|
| ||||
Employee bonus |
|
|
|
|
|
27,383 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders of the parent (including effect of dilutive potential common stock) |
|
$ |
14,077,209 |
|
$ |
11,833,181 |
|
7,914,120 |
|
$ |
1.78 |
|
$ |
1.50 |
|
In March 2007, the ARDF issued an Interpretation 96-052 that requires companies to recognize bonuses paid to employees, directors and supervisors as an expense rather than an appropriation of earnings beginning from January 1, 2008. According to the Interpretation 97-169 issued by ARDF in May 2008, Chunghwa presumed that the employee bonuses to be paid will be settled in shares and takes those shares into consideration when calculating the weighted average number of outstanding shares used in the calculation of diluted EPS if the shares have a dilutive effect for the three months ended March 31, 2012 and 2011. The number of shares is calculated by dividing the amount of bonuses by the closing price of the Chunghwas shares of the balance sheet date. The dilutive effect of the shares needs to be considered until the stockholders resolve the number of shares to be distributed to employees in their meeting in the following year.
The diluted earnings per share for the three months ended March 31, 2012 and 2011 were also due to the effect of potential common stock of stock options by SENAO.
27. PENSION PLAN
Chunghwa completed privatization plans on August 12, 2005. Chunghwa is required to pay all accrued pension obligations including service clearance payment, lump sum payment under civil service plan, additional separation payments, etc. upon the completion of the privatization in accordance with the Statute Governing Privatization of Stated-owned Enterprises. After paying all pension obligations for privatization, the plan assets of Chunghwa should be transferred to the Fund for Privatization of Government-owned Enterprises (the Privatization Fund) under the Executive Yuan. On August 7, 2006, Chunghwa transferred the remaining balance of fund to the Privatization Fund. However, according to the instructions of MOTC, Chunghwa is requested to pay all accrued pension obligations including service clearance payment, lump sum payment under civil service plan, additional separation payments, etc. upon the completion of the privatization.
The pension plan under the Labor Pension Act of ROC (the LPA) is considered as a defined contribution plan. Based on the LPA, Chunghwa and its subsidiaries make monthly contributions to employees individual pension accounts at 6% of monthly salaries and wages.
The Companys pension plan is considered as a defined benefit plan under the Labor Standards Law that provide benefits based on an employees length of service and average six-month salary prior to retirement. Chunghwa and its subsidiaries contribute an amount no more than 15% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the names of the Committees in the Bank of Taiwan.
Pension costs of the Company were $805,495 thousand ($743,052 thousand subject to defined benefit plan and $62,443 thousand subject to defined contribution plan) and $773,253 thousand ($716,772 thousand subject to defined benefit plan and $56,481 thousand subject to defined contribution plan) for the three months ended March 31, 2012 and 2011, respectively.
28. TRANSACTIONS WITH RELATED PARTIES
The ROC Government, one of Chunghwas customers held significant equity interest in Chunghwa. Chunghwa provides fixed-line services, wireless services, Internet and data and other services to the various departments and institutions of the ROC Government and other state-owned enterprises in the normal course of business and at arms-length prices. The information on service revenues from government bodies and related organizations have not been provided because details of the type of transactions were not summarized by Chunghwa. Chunghwa believes that all revenues and costs of doing business are reflected in the financial statements.
a. The Company engages in business transactions with the following related parties:
Company |
|
Relationship |
|
|
|
|
|
Taiwan International Standard Electronics Co., Ltd. (TISE) |
|
Equity-method investee |
|
Kingwaytek Technology Co., Ltd. Co., Ltd. (KWT) |
|
Equity-method investee |
|
Skysoft Co., Ltd. (SKYSOFT) |
|
Equity-method investee |
|
Dian Zuan Intergrating Marketing Co., Ltd. (DZIM) |
|
Equity-method investee |
|
So-net Entertainment Taiwan Limited (So-net) |
|
Equity-method investee |
|
Viettel - CHT Co., Ltd. (Viettel - CHT) |
|
Equity-method investee |
|
Huada Digital Corporation (HDD) |
|
Equity-method investee |
|
Senao Networks, Inc. (SNI) |
|
Equity-method investee of SENAO |
|
HopeTech Technologies Limited (HopeTech) |
|
Equity-method investee of SIS |
|
(Continued)
Company |
|
Relationship |
|
|
|
|
|
Senao Technical and Cultural Foundation (STCF) |
|
A nonprofit organization of which the funds donated by SENAO exceeds one third of its total funds |
|
Institute for Information Industry (III) |
|
Investor with significant influence over IISI |
|
International Integrated System, Inc. (IISI) |
|
Equity-method investee, which was a subsidiary of Chunghwa before Chunghwa lost control over IISI on June 24, 2011 |
|
ST-2 Satellite Ventures Pte., Ltd. (STS) |
|
Equity-method investee of CHTS |
|
Sochamp Technology Co., Ltd. (Sochamp) |
|
Equity-method investee of CHST |
|
United Daily News Co., Ltd. (UDN) |
|
Investor of significant influence over SFD |
|
udn Digital Co., Ltd. (udnD) |
|
Investor of significant influence over SFD |
|
Xiamen Sertec Business Technology Co., Ltd. (Sertec) |
|
Equity-method investee of COI |
|
(Concluded)
b. Significant transactions with the above related parties are summarized as follows:
|
|
March 31 |
| ||||||||
|
|
2012 |
|
2011 |
| ||||||
|
|
Amount |
|
% |
|
Amount |
|
% |
| ||
1) Receivables |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Trade notes and accounts receivable |
|
|
|
|
|
|
|
|
| ||
So-net |
|
$ |
33,460 |
|
88 |
|
$ |
8,735 |
|
32 |
|
Hope Tech |
|
|
|
|
|
15,422 |
|
57 |
| ||
Others |
|
4,590 |
|
12 |
|
2,724 |
|
11 |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
38,050 |
|
100 |
|
$ |
26,881 |
|
100 |
|
|
|
|
|
|
|
|
|
|
| ||
2) Prepaid expenses (include in other current assets) |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Others |
|
$ |
4 |
|
|
|
$ |
476 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
3) Refundable deposit |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Others |
|
$ |
|
|
|
|
$ |
383 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
4) Payables |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Trade notes payable, accounts payable and accrued expenses |
|
|
|
|
|
|
|
|
| ||
STS |
|
$ |
132,325 |
|
36 |
|
$ |
|
|
|
|
IISI |
|
100,201 |
|
27 |
|
|
|
|
| ||
TISE |
|
64,855 |
|
18 |
|
109,775 |
|
69 |
| ||
Others |
|
34,882 |
|
10 |
|
48,347 |
|
31 |
| ||
|
|
332,263 |
|
91 |
|
158,122 |
|
100 |
| ||
Amounts collected in trust for others |
|
|
|
|
|
|
|
|
| ||
So-net |
|
22,896 |
|
6 |
|
|
|
|
| ||
Others |
|
11,556 |
|
3 |
|
|
|
|
| ||
|
|
34,452 |
|
9 |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
|
$ |
366,715 |
|
100 |
|
$ |
158,122 |
|
100 |
|
|
|
March 31 |
| |||||||||
|
|
2012 |
|
2011 |
| |||||||
|
|
Amount |
|
% |
|
Amount |
|
% |
| |||
5) |
Advances from customers (include in other current liabilities) |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
Others |
|
$ |
2,739 |
|
|
|
$ |
2,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
6) |
Customers deposits |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
Others |
|
$ |
1,670 |
|
|
|
$ |
434 |
|
|
|
|
|
|
Three Months Ended March 31 |
| ||||||||
|
|
|
2012 |
|
2011 |
| ||||||
|
|
|
Amount |
|
% |
|
Amount |
|
% |
| ||
|
|
|
|
|
|
|
|
|
|
| ||
7) |
Revenues |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
So-net |
|
$ |
91,924 |
|
|
|
$ |
42,131 |
|
|
|
|
HopeTech |
|
20,606 |
|
|
|
32,898 |
|
|
| ||
|
Others |
|
12,292 |
|
|
|
16,438 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
$ |
124,822 |
|
|
|
$ |
91,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
8) |
Operating costs and expenses |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
STS |
|
$ |
101,625 |
|
|
|
$ |
|
|
|
|
|
TISE |
|
91,887 |
|
|
|
94,940 |
|
|
| ||
|
IISI |
|
52,882 |
|
|
|
|
|
|
| ||
|
SKYSOFT |
|
22,225 |
|
|
|
13,240 |
|
|
| ||
|
Others |
|
20,956 |
|
|
|
23,959 |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
$ |
289,575 |
|
|
|
$ |
132,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
9) |
Non-operating income and gains |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
Others |
|
$ |
7,803 |
|
1 |
|
$ |
7,817 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
| ||
10) |
Acquisitions of property, plant and equipment |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| ||
|
TISE |
|
$ |
34,064 |
|
1 |
|
$ |
37,639 |
|
1 |
|
Chunghwa has entered into a contract with ST-2 Satellite Ventures Pte., Ltd. on March 12, 2010 to lease capacity on the ST-2 satellite. This lease term is 15 years which will start from the commercial operation of ST-2 satellite and the total contract value is approximately $6,000,000 thousand (SG$260,723 thousand), which included a prepayment of $3,067,711 thousand, and the rest of amount will be paid annually when ST-2 satellite starts its commercial operation. ST-2 satellite was launched in May 2011, and began its commercial operation in August 2011. The total rental expense for the three months ended March 31, 2012 was $101,625 thousand, which consisted of a reduction of the prepayment of $51,128 thousand and an additional accrual of $50,497 thousand. The prepayment was $2,931,369 thousand (classified as other current assets $204,514 thousand, and other assets - others $2,726,855 thousand) as of March 31, 2012.
SENAO rents out part of its plant to SNI, and the rent is collected monthly.
The foregoing transactions with related parties were determined in accordance with mutual agreements.
29. PLEDGED ASSETS
The following assets are pledged as collaterals for short-term and long-term bank loans and contract deposits by LED, CHPT and CHTS.
|
|
March 31 |
| ||||
|
|
2012 |
|
2011 |
| ||
|
|
|
|
|
| ||
Property, plant and equipment, net |
|
$ |
2,720,059 |
|
$ |
3,383,157 |
|
Restricted assets |
|
8,672 |
|
66,773 |
| ||
|
|
|
|
|
| ||
|
|
$ |
2,728,731 |
|
$ |
3,449,930 |
|
30. SIGNIFICANT COMMITMENTS AND CONTINGENCIES
As of March 31, 2012, the Companys remaining commitments under non-cancelable contracts with various parties were as follows:
a. Acquisitions of land and buildings of $2,598 thousand.
b. Acquisitions of telecommunications equipment of $22,273,201 thousand.
c. Unused letters of credit of $300,000 thousand.
d. Contract to print billing, envelopes and marketing gifts of $17,401 thousand.
e. LED has already contracted to advance sale of land and building for $905,990 thousand, and collected $178,882 thousand in advance according to the contracts.
f. For the purpose of completion the construction, acquisition of the building construction license and registration ownerships of all buildings for LightEra Covent Garden Project, LED signed the trust deeds with Land Bank of Taiwan and China Real Estate Management Co., Ltd., for the fund management, property rights and related development to the extent of authority they are given.
Trust assets are as follow:
|
|
March 31, 2012 |
| |
|
|
|
| |
Land held for sale |
|
$ |
125,245 |
|
g. The Company also has non-cancelable operating leases covering certain buildings, computers, computer peripheral equipment and operation system software under contracts that expire in various years.
Future lease payments were as follows:
|
|
Amount |
| |
|
|
|
| |
2012 (from April 1, 2012 to December 31, 2012) |
|
$ |
1,466,012 |
|
2013 |
|
1,580,699 |
| |
2014 |
|
1,284,771 |
| |
2015 |
|
1,009,515 |
| |
2016 and thereafter |
|
993,336 |
| |
h. A commitment to contribute $2,000,000 thousand to a Piping Fund administered by the Taipei City Government, of which $1,000,000 thousand was contributed by Chunghwa on August 15, 1996 (classified as long-term investment - other monetary assets). If the fund is not sufficient, Chunghwa will contribute the remaining $1,000,000 thousand upon notification from the Taipei City Government.
31. FAIR VALUE OF FINANCIAL INSTRUMENTS
a. Carrying amount and fair value of financial instruments were as follows:
|
|
March 31 |
| ||||||||||
|
|
2012 |
|
2011 |
| ||||||||
|
|
Carrying |
|
Fair |
|
Carrying |
|
Fair |
| ||||
|
|
Amount |
|
Value |
|
Amount |
|
Value |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Assets |
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents |
|
$ |
69,938,896 |
|
$ |
69,938,896 |
|
$ |
75,002,169 |
|
$ |
75,002,169 |
|
Financial assets at fair value through profit or loss |
|
65,023 |
|
65,023 |
|
79,443 |
|
79,443 |
| ||||
Available-for-sale financial assets |
|
2,724,087 |
|
2,724,087 |
|
2,162,591 |
|
2,162,591 |
| ||||
Held-to-maturity financial assets - current |
|
500,266 |
|
500,266 |
|
2,062,915 |
|
2,062,915 |
| ||||
Trade notes and accounts receivable, net |
|
22,037,757 |
|
22,037,757 |
|
19,530,851 |
|
19,530,851 |
| ||||
Receivable from related parties |
|
38,050 |
|
38,050 |
|
26,881 |
|
26,881 |
| ||||
Other current monetary assets |
|
1,667,273 |
|
1,667,273 |
|
2,637,635 |
|
2,637,635 |
| ||||
Restricted assets - current |
|
|
|
|
|
39,005 |
|
39,005 |
| ||||
Financial assets carried at cost |
|
2,758,779 |
|
|
|
2,739,335 |
|
|
| ||||
Available-for-sale financial assets - noncurrent |
|
3,211,161 |
|
3,211,161 |
|
|
|
|
| ||||
Held-to-maturity financial assets - noncurrent |
|
14,590,889 |
|
14,590,889 |
|
9,973,059 |
|
9,973,059 |
| ||||
Other noncurrent monetary assets |
|
1,000,000 |
|
1,000,000 |
|
1,000,000 |
|
1,000,000 |
| ||||
Refundable deposits |
|
1,653,679 |
|
1,653,679 |
|
1,380,145 |
|
1,380,145 |
| ||||
Restricted assets - noncurrent |
|
8,672 |
|
8,672 |
|
63,439 |
|
63,439 |
| ||||
Liabilities |
|
|
|
|
|
|
|
|
| ||||
Short-term loans |
|
75,000 |
|
75,000 |
|
115,000 |
|
115,000 |
| ||||
Short-term bills payable |
|
|
|
|
|
29,977 |
|
29,977 |
| ||||
Financial liabilities at fair value through profit or loss |
|
803 |
|
803 |
|
7,589 |
|
7,589 |
| ||||
Trade notes and accounts payable |
|
12,630,673 |
|
12,633,230 |
|
9,183,150 |
|
9,183,150 |
| ||||
Payable to related parties |
|
366,715 |
|
366,715 |
|
158,122 |
|
158,122 |
| ||||
Accrued expenses |
|
15,042,834 |
|
15,042,834 |
|
15,890,445 |
|
15,890,445 |
| ||||
Payables to equipment suppliers (included in other current liabilities) |
|
1,755,372 |
|
1,755,372 |
|
1,304,937 |
|
1,304,937 |
| ||||
Amounts collected in trust for others (included in other current liabilities) |
|
1,361,600 |
|
1,361,600 |
|
1,676,680 |
|
1,676,680 |
| ||||
Payables to contractors (included in other current liabilities) |
|
1,247,230 |
|
1,247,230 |
|
697,783 |
|
697,783 |
| ||||
Refundable customers deposits (included in other current liabilities) |
|
1,081,913 |
|
1,081,913 |
|
1,102,520 |
|
1,102,520 |
| ||||
Current portion of long-term loans |
|
683,723 |
|
683,723 |
|
306,802 |
|
306,802 |
| ||||
Long-term loans |
|
1,050,000 |
|
1,050,000 |
|
3,123,141 |
|
3,123,141 |
| ||||
Customers deposits |
|
4,954,927 |
|
4,954,927 |
|
5,834,716 |
|
5,834,716 |
| ||||
b. Methods and assumptions used in the estimation of fair values of financial instruments:
1) The fair values of certain financial instruments recognized in the balance sheet generally correspond to the market prices of the financial assets. Because of the short maturities of these instruments, the carrying value represents a reasonable basis to estimate fair values. This method does not apply to the financial instruments discussed in Notes 2, 3, and 4 below.
2) If the financial instruments have quoted market prices in an active market, the quoted market prices are viewed as fair values. If the market price of the other financial instruments are not readily available, valuation techniques are used incorporating estimates and assumptions that are consistent with prevailing market conditions.
3) Financial assets carried at cost are investments in nonlisted shares, which have no quoted prices in an active market and entail an unreasonably high cost to obtain verifiable fair values. Therefore, no fair value is presented.
4) The fair value of long-term loans (including current portion) is discounted based on projected cash flow which approximate their carrying amounts. The projected cash flows were discounted using the interest rate of similar long-term loans.
c. Fair value of financial assets and liabilities using quoted market price or valuation techniques were as follows:
|
|
Amount Based on Quoted |
|
Amount Determined Using |
| ||||||||
|
|
March 31 |
|
March 31 |
| ||||||||
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Assets |
|
|
|
|
|
|
|
|
| ||||
Financial assets at fair value through profit or loss |
|
$ |
46,318 |
|
$ |
78,798 |
|
$ |
18,705 |
|
$ |
645 |
|
Available-for-sale financial assets |
|
5,859,223 |
|
2,060,687 |
|
76,025 |
|
101,904 |
| ||||
Liabilities |
|
|
|
|
|
|
|
|
| ||||
Financial liabilities at fair value through profit or loss |
|
31 |
|
481 |
|
772 |
|
7,108 |
| ||||
d. Information about financial risks
1) Market risk
The foreign exchange rate fluctuations would result in the Companys foreign-currency-dominated assets and liabilities, outstanding currency swap contracts, and forward exchange contracts exposed to rate risk.
The fluctuations of market price would result in the index future contracts exposed to price risk.
The financial instruments categorized as available-for-sale financial assets are mainly listed stocks and open-end mutual funds and corporate bonds. Therefore, the market risk is the fluctuations of market price. In order to manage this risk, the Company would assess the risk before investing, therefore, no material market risk are anticipated.
2) Credit risk
Credit risk represents the potential loss that would be incurred by the Company if the counter-parties or third-parties breached contracts. Financial instruments with positive fair values at the balance sheet date are evaluated for credit risk. The counter-parties or third-parties of the aforementioned financial instruments are reputable financial institutions and corporations. Management does not expect the Companys exposure to default by those parties to be material. The company held a variety of financial instruments, the maximum credit exposed amount is the same as their carrying amounts.
3) Liquidity risk
The Company has sufficient operating capital to meet cash needs upon settlement of derivative financial instruments. Therefore, the liquidity risk is low.
The financial instruments of the Company categorized as available-for-sale financial assets are publicly-traded, easily converted to cash. Therefore, no material liquidity risk is anticipated. The financial instruments categorized as financial assets carried at cost are investments that do not have a quoted market price in an active market. Therefore, material liquidity risk is anticipated.
4) Cash flow interest rate risk
The Company engages in investments in fixed-interest-rate debt securities. Therefore, cash flows from such securities are not expected to fluctuate significantly due to changes in market interest rates.
32. ADDITIONAL DISCLOSURES
Following are the additional disclosures required by the SFC for Chunghwa and its investees:
a. Financing provided: None.
b. Endorsement/guarantee provided: Please see Table 1.
c. Marketable securities held: Please see Table 2.
d. Marketable securities acquired and disposed of at costs or prices at least $100 million or 20% of the paid-in capital: Please see Table 3.
e. Acquisition of individual real estate at costs of at least $100 million or 20% of the paid-in capital: None.
f. Disposal of individual real estate at prices of at least $100 million or 20% of the paid-in capital: None.
g. Total purchases from or sales to related parties amounting to at least $100 million or 20% of the paid-in capital: Please see Table 4.
h. Receivables from related parties amounting to $100 million or 20% of the paid-in capital: Please see Table 5.
i. Names, locations, and other information of investees on which the Company exercises significant influence: Please see Table 6.
j. Financial transactions: Please see Notes 5 and 31.
k. Investment in Mainland China: Please see Table 7.
l. Intercompany relationships and significant intercompany transaction: Please see Table 8.
33. THE FINANCIAL INFORMATION OF OPERATING SEGMENTS
Segment information: Please see Table 9.
34. OTHERS
The significant information of foreign-currency financial assets and liabilities as below:
|
|
March 31 |
| ||||||||||||||
|
|
2012 |
|
2011 |
| ||||||||||||
|
|
Foreign |
|
Exchange |
|
New Taiwan |
|
Foreign |
|
Exchange |
|
New Taiwan |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Monetary items |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cash |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
|
$ |
21,595 |
|
29.51 |
|
$ |
637,283 |
|
$ |
26,124 |
|
29.40 |
|
$ |
769,217 |
|
HKD |
|
112,157 |
|
3.80 |
|
426,197 |
|
71,442 |
|
3.78 |
|
269,837 |
| ||||
JPY |
|
83,411 |
|
0.36 |
|
30,028 |
|
38,803 |
|
0.36 |
|
13,775 |
| ||||
SGD |
|
4,657 |
|
23.49 |
|
109,386 |
|
12,934 |
|
23.34 |
|
301,881 |
| ||||
RMB |
|
48,639 |
|
4.69 |
|
228,116 |
|
292 |
|
4.51 |
|
1,315 |
| ||||
VND |
|
22,080,441 |
|
0.00137 |
|
30,250 |
|
|
|
0.00137 |
|
|
| ||||
Accounts receivable |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
|
181,289 |
|
29.51 |
|
5,349,842 |
|
138,068 |
|
29.40 |
|
4,059,206 |
| ||||
HKD |
|
58,858 |
|
3.80 |
|
223,778 |
|
53,607 |
|
3.78 |
|
202,473 |
| ||||
SGD |
|
|
|
23.49 |
|
|
|
1,023 |
|
23.34 |
|
23,871 |
| ||||
Available-for-sale financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
|
73,546 |
|
29.51 |
|
2,170,334 |
|
35,321 |
|
29.40 |
|
1,038,440 |
| ||||
Investments accounted for using equity method |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
|
735 |
|
29.51 |
|
21,694 |
|
907 |
|
29.40 |
|
26,666 |
| ||||
VND |
|
187,270,073 |
|
0.00137 |
|
256,560 |
|
173,899,270 |
|
0.00137 |
|
238,242 |
| ||||
SGD |
|
20,890 |
|
23.49 |
|
490,707 |
|
17,521 |
|
23.34 |
|
408,944 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Monetary items |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Payable to suppliers |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
|
$ |
165,815 |
|
29.51 |
|
$ |
4,893,190 |
|
$ |
114,453 |
|
29.40 |
|
$ |
3,364,906 |
|
EUR |
|
32,498 |
|
39.41 |
|
1,280,740 |
|
23,545 |
|
41.71 |
|
982,081 |
| ||||
SGD |
|
5,708 |
|
23.49 |
|
134,088 |
|
389 |
|
23.34 |
|
9,091 |
| ||||
RMB |
|
15,496 |
|
4.69 |
|
72,678 |
|
|
|
4.51 |
|
|
|
35. PRE-DISCLOSURE FOR ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS
Under Rule No. 0990004943 issued by the Financial Supervisory Commission (FSC) on February 2, 2010, the Company pre-discloses the following information on the adoption of International Financial Reporting Standards (IFRSs) as follows, except for SENAO International Co., Ltd. and its subsidiaries, the related affected amount and information of subsidiaries and the Companys long-term equity investments have not been reviewed.
a. On May 14, 2009, the FSC announced the Framework for Adoption of International Financial Reporting Standards by Companies in the ROC. In this framework, starting 2013, companies with shares listed on the TSE or traded on the Taiwan GreTai Securities Market or Emerging Stock Market should prepare their financial statements in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, and the Interpretations as well as related guidance translated by the ARDF and issued by the FSC. To comply with this framework, the Company has set up a project
team and made a plan to adopt the IFRSs. Leading the implementation of this plan is the President, Mr. Chang. The main contents of the plan, anticipated schedule and status of execution as of March 31, 2012 were as follows:
Contents of Plan |
|
Responsible Department |
|
Status of | |
|
|
|
|
|
|
1) |
Evaluation Phase: August 1, 2009 - March 31, 2010 |
|
|
|
|
|
|
|
|
|
|
|
a) Make IFRSs adoption plan and set up a IFRSs project team |
|
Accounting department |
|
Completed |
|
b) Compare and analyze the differences between current accounting policies and IFRSs |
|
Accounting department |
|
Completed |
|
c) Evaluate the modification of current accounting policies for IFRSs adoption |
|
Accounting department |
|
Completed |
|
d) Evaluate the adoption of IFRS 1, First-time Adoption of International Financial Reporting Standards |
|
Accounting department |
|
Completed |
|
e) Conduct the first stage of internal employee training |
|
Accounting department |
|
Completed |
|
|
|
|
|
|
2) |
Preparation Phase: April 1, 2010 - December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
a) Determine accounting policies in accordance with IFRSs |
|
Accounting department |
|
Completed |
|
b) Choose the optional exemptions under IFRS 1, First-time Adoption of International Financial Reporting Standards |
|
Accounting department |
|
Completed |
|
c) Modify related information system |
|
Information technology department, accounting department |
|
Completed |
|
d) Amend internal control and related policies |
|
Accounting department, related departments |
|
Completed |
|
e) Conduct the second stage of internal employee training |
|
Accounting department |
|
Completed |
|
|
|
|
|
|
3) |
Application Phase: January 1, 2012 - December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
a) Prepare opening IFRSs balance sheet |
|
Accounting department |
|
Completed |
|
b) Prepare IFRS comparative financial statements for the year ended December 31, 2012. |
|
Accounting department |
|
In progress |
|
c) Prepare financial statements in accordance with IFRSs |
|
Accounting department |
|
In progress |
b. Based on IFRS 1 First-time adoption of International Financial Reporting Standards, when the Company first adopts IFRSs, the Company should apply the IFRSs to establish its accounting policies, prepare its financial statements and make required adjustments retroactively to the transition date (January 1, 2012). IFRS 1 provided several optional exemptions. The main exemptions adopted by the Company were discussed as follows:
1) Business combination
The Company elected not to apply IFRS 3 retrospectively to business combinations occurred on or before December 31, 2011.
2) Share-based payment transactions
The Company elected not to apply IFRS 2 retrospectively to the share-based payment transactions which were granted and vested on or before December 31, 2011.
3) Deemed costs
The Company elected to measure its revalued land at the date of transition to IFRSs at its revalued amount determined under ROC GAAP as its deemed cost.
4) Employee benefits
The Company elected to recognize all unrecognized cumulative actuarial gains and losses as retained earnings as of January 1, 2012.
The impacts of the aforementioned optional exemptions were included in the following part d. of explanation for the adjustments of IFRSs transition.
c. The Company had assessed the material differences and the impacts between the existing accounting policies and the accounting policies to be adopted under IFRSs as follows:
1) Reconciliation of consolidated balance sheet as of January 1, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
|
| ||||||
|
|
|
|
Differences in |
|
|
|
|
|
|
|
|
| ||||
ROC GAAP |
|
Recognitions and |
|
Differences in |
|
IFRSs |
|
|
| ||||||||
Items |
|
Amount |
|
Measurements |
|
Presentations |
|
Amount |
|
Items |
|
Notes |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Current assets |
|
$ |
106,538,985 |
|
$ |
(337,754 |
) |
$ |
(115,464 |
) |
$ |
106,085,767 |
|
Current assets |
|
4, 7, 9, 13 |
|
Long-term investments |
|
19,876,491 |
|
(5,553 |
) |
(1,000,000 |
) |
18,870,938 |
|
Long-term investments |
|
10,13 |
| ||||
Property, plant and equipment |
|
302,612,014 |
|
|
|
(7,602,063 |
) |
295,009,951 |
|
Property, plant and equipment |
|
1, 2, 13 |
| ||||
|
|
|
|
|
|
9,060,081 |
|
9,060,081 |
|
Investment property |
|
1,2 |
| ||||
Intangible assets |
|
6,330,253 |
|
|
|
12,475 |
|
6,342,728 |
|
Intangible assets |
|
13 |
| ||||
Other assets |
|
7,562,539 |
|
581,839 |
|
(334,947 |
) |
7,809,431 |
|
Other noncurrent assets |
|
1, 2, 4, 5, 6, 7,13 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total |
|
$ |
442,920,282 |
|
$ |
238,532 |
|
$ |
20,082 |
|
$ |
443,178,896 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Current liabilities |
|
$ |
59,280,808 |
|
$ |
(72,301 |
) |
$ |
|
|
$ |
59,208,507 |
|
Current liabilities |
|
7, 9 |
|
Noncurrent liabilities |
|
3,635,835 |
|
1,962,186 |
|
|
|
5,598,021 |
|
Long-term liabilities |
|
7, 8 |
| ||||
Reserve for land value incremental tax |
|
94,986 |
|
|
|
(94,986 |
) |
|
|
|
|
4 |
| ||||
Other liabilities |
|
6,866,005 |
|
1,549,205 |
|
115,068 |
|
8,530,278 |
|
Other noncurrent liabilities |
|
4, 6 |
| ||||
Total liabilities |
|
69,877,634 |
|
3,439,090 |
|
20,082 |
|
73,336,806 |
|
Total liabilities |
|
|
| ||||
Common stock |
|
77,574,465 |
|
|
|
|
|
77,574,465 |
|
Common stock |
|
|
| ||||
Additional paid-in capital |
|
169,536,289 |
|
20,621,248 |
|
|
|
190,157,537 |
|
Additional paid-in capital |
|
6, 12 |
| ||||
Retained earnings |
|
115,866,869 |
|
(18,050,922 |
) |
|
|
97,815,947 |
|
Retained earnings |
|
3, 5, 6, 7, 8, 9, 10, 11, 12 |
| ||||
Other adjustments |
|
5,753,403 |
|
(5,724,647 |
) |
|
|
28,756 |
|
Other adjustments |
|
3, 6, 10 |
| ||||
Total equity attributable to stockholders of the parent |
|
368,731,026 |
|
(3,154,321 |
) |
|
|
365,576,705 |
|
Total equity attributable to shareholders of the parent |
|
|
| ||||
Minority interests in subsidiaries |
|
4,311,622 |
|
(46,237 |
) |
|
|
4,265,385 |
|
Noncontrolling interest |
|
5, 6, 10, 11 |
| ||||
Total stockholders equity |
|
373,042,648 |
|
(3,200,558 |
) |
|
|
369,842,090 |
|
Total shareholders equity |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total |
|
$ |
442,920,282 |
|
$ |
238,532 |
|
$ |
20,082 |
|
$ |
443,178,896 |
|
Total |
|
|
|
2) Reconciliation of consolidated balance sheet as of March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
|
|
|
Adjustments |
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
Differences in |
|
|
|
|
|
|
|
|
| ||||||||||||||
ROC GAAP |
|
Recognitions and |
|
Differences in |
|
IFRSs |
|
|
| ||||||||||||||||||
Items |
|
Amount |
|
Measurements |
|
Presentations |
|
Amount |
|
Items |
|
Notes |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Current assets |
|
$ |
110,793,015 |
|
$ |
(390,390 |
) |
$ |
(110,998 |
) |
$ |
110,291,627 |
|
Current assets |
|
4, 7, 9, 13 | |||||||||||
Long-term investments |
|
24,277,801 |
|
(7,555 |
) |
(1,000,000 |
) |
23,270,246 |
|
Long-term investments |
|
10, 12, 13 | |||||||||||||||
Property, plant and equipment |
|
300,698,722 |
|
|
|
(7,605,051 |
) |
293,093,671 |
|
Property, plant and equipment |
|
1, 2, 13 | |||||||||||||||
|
|
|
|
|
|
9,055,986 |
|
9,055,986 |
|
Investment property |
|
1, 2 | |||||||||||||||
Intangible assets |
|
6,128,271 |
|
|
|
10,158 |
|
6,138,429 |
|
Intangible assets |
|
13 | |||||||||||||||
Other assets |
|
7,496,996 |
|
549,508 |
|
(339,832 |
) |
7,706,672 |
|
Other noncurrent assets |
|
1, 2, 4, 5, 6, 7,13 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total |
|
$ |
449,394,805 |
|
$ |
151,563 |
|
$ |
10,263 |
|
$ |
449,556,631 |
|
Total |
|
| |||||||||||
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
| ||||||
|
|
|
|
Differences in |
|
|
|
|
|
|
|
| ||||
ROC GAAP |
|
Recognitions and |
|
Differences in |
|
IFRSs |
|
| ||||||||
Items |
|
Amount |
|
Measurements |
|
Presentations |
|
Amount |
|
Items |
|
Notes | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Current liabilities |
|
$ |
55,839,535 |
|
$ |
(91,412 |
) |
$ |
|
|
$ |
55,748,123 |
|
Current liabilities |
|
7, 9 |
Noncurrent liabilities |
|
3,639,481 |
|
1,788,685 |
|
|
|
5,428,166 |
|
Long-term liabilities |
|
7, 8 | ||||
Reserve for land value incremental tax |
|
94,986 |
|
|
|
(94,986 |
) |
|
|
|
|
4 | ||||
Other liabilities |
|
6,790,094 |
|
1,548,125 |
|
105,249 |
|
8,443,468 |
|
Other noncurrent liabilities |
|
4, 5, 6 | ||||
Total liabilities |
|
66,364,096 |
|
3,245,398 |
|
10,263 |
|
69,619,757 |
|
Total liabilities |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Common stock |
|
77,574,465 |
|
|
|
|
|
77,574,465 |
|
Common stock |
|
| ||||
Additional paid-in capital |
|
169,538,331 |
|
20,620,873 |
|
|
|
190,159,204 |
|
Additional paid-in capital |
|
6, 12 | ||||
Retained earnings |
|
125,356,372 |
|
(17,943,165 |
) |
|
|
107,413,207 |
|
Retained earnings |
|
3, 5, 6, 7, 8, 9, 10, 11, 12 | ||||
Other adjustments |
|
5,829,807 |
|
(5,724,530 |
) |
|
|
105,277 |
|
Other adjustments |
|
3, 6, 10 | ||||
Total equity attributable to stockholders of the parent |
|
378,298,975 |
|
(3,046,822 |
) |
|
|
375,252,153 |
|
Total equity attributable to shareholders of the parent |
|
| ||||
Minority interests in subsidiaries |
|
4,731,734 |
|
(47,013 |
) |
|
|
4,684,721 |
|
Noncontrolling interest |
|
5, 6, 10, 11 | ||||
Total stockholders equity |
|
383,030,709 |
|
(3,093,835 |
) |
|
|
379,936,874 |
|
Total shareholders equity |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total |
|
$ |
449,394,805 |
|
$ |
151,563 |
|
$ |
10,263 |
|
$ |
449,556,631 |
|
Total |
|
|
3) Reconciliation of consolidated statement of comprehensive income for three months ended March 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments |
|
|
|
|
|
| ||||||
|
|
|
|
Differences in |
|
|
|
|
|
|
|
| ||||
ROC GAAP |
|
Recognitions and |
|
Differences in |
|
IFRSs |
|
| ||||||||
Items |
|
Amount |
|
Measurements |
|
Presentations |
|
Amount |
|
Items |
|
Notes | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net revenues |
|
$ |
55,418,294 |
|
$ |
65,572 |
|
$ |
|
|
$ |
55,483,866 |
|
Net revenues |
|
7, 8, 9 |
Operating costs |
|
(36,622,429 |
) |
41,778 |
|
(273 |
) |
(36,580,924 |
) |
Operating costs |
|
7, 9, 14 | ||||
Gross profits |
|
18,795,865 |
|
107,350 |
|
(273 |
) |
18,902,942 |
|
Gross profits |
|
| ||||
Operating expenses |
|
(7,464,950 |
) |
33,290 |
|
273 |
|
(7,431,387 |
) |
Operating expenses |
|
6, 7, 9, 11, 14 | ||||
Income from operations |
|
11,330,915 |
|
140,640 |
|
|
|
11,471,555 |
|
Income from operations |
|
| ||||
Non-operating income and losses |
|
501,958 |
|
(1,744 |
) |
|
|
500,214 |
|
Non-operating income and losses |
|
3, 10, 12, 14 | ||||
Income before income tax |
|
11,832,873 |
|
138,896 |
|
|
|
11,971,769 |
|
Income before income tax |
|
| ||||
Income tax expense |
|
(1,954,566 |
) |
(31,933 |
) |
|
|
(1,986,499 |
) |
Income tax expenses |
|
5 | ||||
Consolidated net income |
|
$ |
9,878,307 |
|
$ |
106,963 |
|
$ |
|
|
9,985,270 |
|
Consolidated net income |
|
| |
|
|
|
|
|
|
|
|
(43,548 |
) |
Exchange differences arising from the translation of the foreign operations |
|
| ||||
|
|
|
|
|
|
|
|
115,632 |
|
Unrealized valuation gain on available-for-sale financial assets |
|
| ||||
|
|
|
|
|
|
|
|
72,084 |
|
Other comprehensive income - current period (after tax) |
|
| ||||
|
|
|
|
|
|
|
|
$ |
10,057,354 |
|
Total comprehensive income |
|
|
d. Explanation for the adjustments of IFRSs transition:
1) Classification of investment property
On January 1, 2012, the assets that met definitions of investment property under IAS 40 Investment Property were reclassified from property, plant and equipment of $8,596,664 thousand, and other assets - idle assets of $463,417 thousand, to investment property. The total amount of reclassification was $9,060,081 thousand. On March 31, 2012, the assets that met definition of investment property were reclassified from property, plant and equipment, $8,592,569 thousand, and other assets - idle assets, $463,417 thousand, to investment property. The total amount of reclassification was $9,055,986 thousand.
2) Classification of leased assets and idle assets
Under ROC GAAP, leased and idle assets were classified as other assets; after the transition to IFRSs, leased and idle assets were reclassified to property, plant and equipment or investment property based on the nature of these assets.
The Company reclassified leased assets to property, plant and equipment and the amounts were $400,453 thousand and $397,724 thousand as of January 1, 2012 and March 31, 2012, respectively. Except for the abovementioned Item 1) which discussed the reclassification from idle assets to investment property, the Company reclassified the remaining idle assets to property, plant and equipment amounting to $436,619 thousand and $436,024 thousand, as of January 1, 2012 and March 31, 2012, respectively.
3) Deemed costs of property, plant and equipment
The Company elected to apply the optional exemption in IFRS 1. The management measured land (classified as property, plant and equipment and investment property under IFRSs) at its revalued amount which was determined under ROC GAAP as deemed costs. On January 1, 2012, the Company reclassified the unrealized revaluation increment (classified as stockholders equity) to retained earnings and the amount was $5,762,753 thousand. This reclassification did not affect total equity. Due to disposal of some revalued assets, unrealized revaluation increment reclassified to retained earnings was decreased by $117 thousand and unrealized revaluation increment as of March 31, 2012 was $5,762,636 thousand. As a result of the above adjustments, gain on disposal of property, plant and equipment was reduced by $117 thousand.
4) Classification of deferred income tax asset and liability, and valuation allowance
Under ROC GAAP, a deferred income tax asset and liability should be classified as current and noncurrent in accordance with the classification of its related asset or liability. When a deferred income tax asset and liability does not relate to an asset or liability, then it is classified as either current or noncurrent based on the expected length of time before it is realized or settled. However, under IFRSs, a deferred income tax asset and liability should be classified as noncurrent, and could not be netted.
Under ROC GAAP, if it is more likely than not that deferred income tax assets will not be realized, the valuation allowances are provided to the extent. However, under IFRSs, deferred income tax assets are only recognized when it is more likely than not to be realized, and the valuation allowance is not used under IFRSs.
Based on the Guidelines Governing the Preparation of Financial Reports by Securities Issuers, the reserve for land value incremental tax caused by revaluation of land is classified as long-term liabilities. Under IFRSs, if the Company elects to apply the IFRS 1 exemption and measure the revalued land using the carrying amount determined under ROC GAAP as its deemed cost, the related reserve for land value incremental tax should be classified as deferred income tax liabilities.
The Company reclassified its deferred income tax assets - current to noncurrent assets and the amounts were $115,464 thousand and $110,998 thousand as of January 1, 2012 and March 31, 2012, respectively. Further, deferred income tax liabilities, which were netted with deferred income tax assets under ROC GAAP, were reversed. As a result of such reversal, deferred income tax liabilities - noncurrent and deferred income tax assets - noncurrent were increased by $20,082 thousand and $10,263 thousand, respectively, and reserve for land value incremental tax of $94,986 thousand was also reclassified as deferred income tax liabilities - noncurrent under IFRSs.
5) Income tax
Based on IAS 12 Income Taxes, the income tax adjustments as a result of the transition to IFRSs are as follows: Deferred income tax assets were increased by $596,271 thousand and $564,423 thousand as of January 1, 2012 and March 31, 2012, respectively; retained earnings were increased by $587,418 thousand and $555,564 thousand as of January 1, 2012 and March 31, 2012, respectively; noncontrolling interest were increased by $8,853 thousand and $8,774 thousand as of January 1, 2012 and March 31, 2012, respectively. Deferred income tax liabilities were increased by $85 thousand as of March 31, 2012. For the three months ended March 31, 2012, due to the
adjustment of deferred income tax assets and deferred income tax liabilities (decreased by $31,848 thousand in deferred tax assets and increased by $85 thousand in deferred income tax liabilities), income tax expense was increased by $31,933 thousand.
6) Employee benefits
Under ROC GAAP, net transaction obligation that was resulted from the first time adoption of SFAS No. 18 Pension should be amortized on a straight-line basis over the average remaining service life of active plan participants and recognized as net periodic pension cost. After the transition to IFRSs, transitional rules in IAS 19 Employee Benefits did not apply, so the related amounts of net transaction obligation should be recognized at once and adjusted in retain earnings.
Further, under ROC GAAP, actuarial gains (losses) are recognized based on the corridor approach and the amounts are amortized over the average remaining service life of active plan participants. However, under IFRSs, the Company elected to recognize pension gains (losses) resulting from defined benefit plans as other comprehensive income immediately and subsequent reclassification to earnings is not permitted.
As a result of the aforementioned adjustments, other liabilities were increased by $1,549,205 thousand and $1,548,040 thousand as of January 1, 2012 and March 31, 2012, respectively; other noncurrent assets were decreased by $14,524 thousand and $15,022 thousand as of January 1, 2012 and March 31, 2012, respectively; retained earnings were decreased by $1,512,034 thousand and $1,511,833 thousand as of January 1, 2012 and March 31, 2012, respectively; unrecognized net losses of pension were decreased by $215 thousand as of January 1, 2012 and March 31, 2012; noncontrolling interests were decreased by $51,910 thousand and $51,444 thousand as of January 1, 2012 and March 31, 2012, respectively. For the three months ended March 31, 2012, pension cost under operating expense was decreased by $667 thousand.
Further, prior to Chunghwas privatization in 2005, the pension contributions were made according to the related regulations. After privatization, the pension obligations of retained employees that were civil employees and entitled to receive future monthly pension payments based on the Labor Pension Act, Act of Privatization of Government-Owned Enterprises, and Enforcement Rules of Statute of Privatization of Government-Owned Enterprises were borne by the government. The settlement impact upon privatization of $20,648,078 thousand calculated according to the actuarial report under IAS 19 shall be retroactively adjusted from retained earnings to additional paid-in capital- privatization at the date of transition of IFRSs.
7) Award credits (often known as points)
Under ROC GAAP, theres no related guidance about award credits. After the transition to IFRSs, Chunghwa applied IFRIC 13 Customer Royalty Program retroactively. The award credit should be measured at its fair value to defer the recognition of revenue. When the customers redeem the points, the related revenues and costs shall be recognized. The guidance will replace Chunghwas current accounting policy that Chunghwa would accrue expenses when the award credits were given.
Accrued award credits liabilities (classified as other current liabilities) were decreased by $70,036 thousand and $88,786 thousand as of January 1, 2012 and March 31, 2012, respectively; receivables were increased by $12,128 thousand ($12,036 thousand was classified as current assets and $92 thousand was classified as noncurrent assets) and $15,193 thousand ($15,086 thousand was classified as current assets and $107 thousand was classified as noncurrent assets) as of January 1, 2012 and March 31, 2012, respectively; deferred award credits revenue (classified as long-term liabilities - deferred revenue) were increased by $36,370 thousand and $49,412 thousand as of January 1, 2012 and March 31, 2012, respectively; retained earnings were increased by $45,794 thousand and $54,567 thousand as of January 1, 2012 and March 31, 2012, respectively. The revenue was decreased by $9,977 thousand, the marketing expenses were decreased by $25,552 thousand and the operating cost was increased by $6,802 thousand for the three months ended March 31, 2012.
8) Recognition of revenue from providing fixed line connection service
Prior to privatization, according to the laws and regulations applicable to state-owned enterprises in Taiwan, Chunghwa recorded revenue from providing fixed line connection service at the time the service was performed. Under IFRSs, following the revenue recognition guidance, the above service revenue should be treated as deferred income and recognized over the time when the service is continuously provided.
Chunghwa should retrospectively adjust the deferred income of $1,925,816 thousand and $1,739,273 thousand as of January 1, 2012 and March 31, 2012, respectively, by decreasing retained earnings and increasing the deferred revenue from providing fixed line connection service (classified as long-term liabilities - deferred income). For the three months ended March 31, 2012, revenue from providing fixed line connection service was increased by $186,543 thousand.
9) Recognition of construction contract revenue
The construction contracts did not meet the criteria in IFRIC 15.11, so IAS 11 Construction Contracts does not apply. The Company could only recognize the revenues when the projects are completed and sold out based on IAS 18 Revenue. Due to the reasons mentioned above, the Company should reverse the revenue that was recognized based on percentage completion method.
Inventories were decreased by $392,040 thousand and $454,454 thousand as of January 1, 2012 and March 31, 2012, respectively; deferred marketing expenses (classified as other current assets) were increased by $42,250 thousand and $48,978 thousand as of January 1, 2012 and March 31, 2012, respectively; accrued expenses (classified as other current liabilities) were decreased by $2,265 thousand and $2,626 thousand as of January 1, 2012 and March 31, 2012, respectively; retained earnings were decreased by $347,525 thousand and $402,850 thousand as of January 1, 2012 and March 31, 2012, respectively. The construction revenue was decreased by $110,995 thousand, the construction cost was decreased by $48,581 thousand and the marking expenses were decreased by $7,089 thousand for the three months ended March 31, 2012.
10) Equity method investments
Associates and joint ventures that accounted for using equity method should also adopt IFRSs in coordinated with the Companys transition to IFRSs. The main adjustment includes employee benefit and share-based payments, etc. Due to the adjustments, long-term investments were decreased by $5,553 thousand and $7,180 thousand as of January 1, 2012 and March 31, 2012, respectively; retained earnings were decreased by $39,681 thousand and $40,136 thousand as of January 1, 2012 and March 31, 2012, respectively; unrecognized net loss of pension was both decreased by $37,891 thousand as of January 1, 2012 and March 31, 2012; noncontrolling interest was decreased by $3,763 thousand and $4,935 thousand as of January 1, 2012 and March 31, 2012, respectively. Investment income from associates and joint ventures was decreased by $1,627 thousand for the three months ended March 31, 2012.
11) Share-based payment transactions
The employee stock options granted by subsidiary were not vested on the transition date. Therefore, the subsidiary should apply IFRS 2 Share-based Payment retroactively.
Under IFRSs, subsidiaries recognized the additional paid-in capital - employee stock option when the options were granted. Such paid-in capital - employee stock option does not belong to the equity attributable to parent company, so it should be regarded as noncontrolling interest. As of January 1, 2012, retained earnings were decreased by $583 thousand and noncontrolling interest was increased by $583 thousand. As of March 1, 2012, retained earnings were decreased by $592
thousand and noncontrolling interest was increased by $592 thousand. For the three months ended March 31, 2012, the company recognized compensation cost under general and administrative expense of $18 thousand.
12) Paid-in capital related to long-term investments
According to SFAS No. 5 Long-term Investments under Equity Method under ROC GAAP, when an investee issues new shares and original shareholders did not acquire new shares proportionately, and the changes in investors shareholdings resulting in the changes in the net equity value of the equity method investee attributable to the investor, such changes shall adjust additional paid-in capital and long-term investments. However, under IFRSs, if the changes did not cause the investor lose control over subsidiaries, the change shall be treated as equity transactions. When the Company applied IFRS 1, it did not apply IAS 27 Consolidated and Separate Financial Statements retroactively. Therefore, the Company could only comply with the rule in IFRSs FAQs published by Taiwan Stock Exchange, and reclassify the paid-in capitals which did not meet the definitions under IFRSs or Company Act and Regulation of Ministry of Economics Affairs to retained earnings. The Company reclassified such paid-in capital of $26,830 thousand as of January 1, 2012 to retained earnings. As of March 31, 2012, the paid-in capital from long-term investments recognized under ROC GAAP was decreased by $2,042 thousand; paid-in capital - disposal of subsidiary was increased by $1,667 thousand, and long-term investment was decreased by $375 thousand.
13) Presentation of consolidated balance sheets
a) Piping fund
As part of the governments effort to upgrade the existing telecommunications infrastructure project, Chunghwa and other public utility companies were required by the ROC government to contribute a total of $1,000,000 thousand to a Piping Fund administered by the Taipei City Government. Since the net assets of this fund would be returned proportionately after the project was completed, in order to conform to the presentation of the financial statements under IFRSs, the fund was reclassified as other noncurrent assets.
b) Certified deposits with maturities of more than three months
Under ROC GAAP, cash and cash equivalents includes time deposits that are cancellable but without any loss of principal. Under IFRSs, cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Therefore, an investment normally qualifies as a cash equivalent only when it has a short maturity of three months or less from the date of acquisition.
Certified deposits with maturities of more than three months held by the Company were $40,709,500 thousand and $41,633,500 thousand as of January 1, 2012 and March 31, 2012, respectively. In order to conform to the presentation of the financial statements under IFRSs, such amounts were reclassified from cash to other monetary assets - current.
c) Deferred expense
Under IFRSs, the deferred expense, which was classified as other assets under ROC GAAP, was reclassified based on its nature. Deferred expenses belonged to decoration construction projects and advertisement signboard, etc. were reclassified as property, plant and equipment of $157,529 thousand and $153,770 thousand as of January 1, 2012 and March 31, 2012, respectively. Deferred expenses belonged to computer software were reclassified as intangible assets of $12,475 thousand and $10,158 thousand as of January 1, 2012 and March 31, 2012, respectively.
14) Presentation of consolidated statements of comprehensive income
After the transition to IFRSs, the consolidated statement of comprehensive income includes net income and other comprehensive income. Further, certain accounts were reclassified to conform to the presentation of the financial statements under IFRSs.
d. The Company has prepared the above assessments in compliance with (a) the 2010 version of the IFRSs translated by the ARDF and issued by the FSC and (b) the Guidelines Governing the Preparation of Financial Reports by Securities Issuers amended and issued by the FSC on December 22, 2011. These assessments may be changed as the FSC may issue new rules governing the adoption of IFRSs, and as other laws and regulations may be amended to comply with the adoption of IFRSs. Therefore, the above assessments may be affected, and differ from the new accounting policies that are drafted by IFRSs.
TABLE 1
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
ENDORSEMENTS/GUARANTEES PROVIDED
THREE MONTHS ENDED MARCH 31, 2012
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
|
|
|
|
Guaranteed Party |
|
Limits on |
|
|
|
|
|
Amount of |
|
Ratio of Accumulated |
|
Maximum |
| |||||||
No. |
|
Endorsement/Guarantee |
|
Name |
|
Nature of |
|
Guarantee Amount |
|
Maximum Balance for |
|
Ending Balance |
|
Guarantee |
|
Guarantee to Net |
|
Endorsement/ |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Donghwa Telecom Co., Ltd. |
|
b |
|
$ |
3,782,990 |
|
$ |
1,031,923 |
|
$ |
954,477 |
|
$ |
|
|
0.3 |
% |
$ |
15,131,959 |
|
|
(Note 3) |
|
|
(Note 4) |
|
|
|
(Note 6) |
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
25 |
|
Yao Yong Real Property Co., Ltd. |
|
Light Era Development Co., Ltd. |
|
d |
|
3,859,207 |
|
2,150,000 |
|
2,150,000 |
|
2,150,000 |
|
0.5 |
% |
3,859,207 |
| |||||
|
(Note 7) |
|
|
|
(Note 5) |
|
(Note 5) |
|
|
(Note 7) |
| |||||||||||||
Note 1: Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as follows:
a. 0 for the Company.
b. Subsidiaries are numbered from 1.
Note 2: Relationships between the endorsement/guarantee provider and the guaranteed party:
a. Trading partner.
b. Majority owned subsidiary.
c. The Company and subsidiary owns over 50% ownership of the investee company.
d. A subsidiary jointly owned by the Company and the Companys directly-owned subsidiary.
e. Guaranteed by the Company according to the construction contract.
f. An investee company. The guarantees were provided based on the Companys proportionate share in the investee company.
Note 3: The maximum amount of endorsement or guarantee is up to 1% of the total stockholders equity of the financial statements for the three months ended March 31, 2012 of the Company.
Note 4: The actual amount used by guaranteed party is $954,477 thousand.
Note 5: The actual amount used by guaranteed party is $1,650,000 thousand.
Note 6: The maximum amount of endorsement or guarantee is up to 4% of the total stockholders equity of the latest financial statements of the Company.
Note 7: The maximum amount of endorsement or guarantee is up to 200% of the asset value of the latest financial statements of Yao Yong Real Property Co., Ltd.
TABLE 2
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
MARKETABLE SECURITIES HELD
MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Senao International Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
71,773 |
|
$ |
1,684,305 |
|
28 |
|
$ |
9,904,695 |
|
Note 4 |
|
|
|
|
|
Light Era Development Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
300,000 |
|
4,422,825 |
|
100 |
|
4,424,453 |
|
Note 1 |
| ||
|
|
|
|
Chunghwa Investment Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
178,000 |
|
1,786,637 |
|
89 |
|
1,843,877 |
|
Note 1 |
| ||
|
|
|
|
Donghwa Telecom Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
223,190 |
|
870,919 |
|
100 |
|
870,919 |
|
Note 1 |
| ||
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
60,000 |
|
723,715 |
|
100 |
|
684,566 |
|
Note 1 |
| ||
|
|
|
|
Taiwan International Standard Electronics Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
1,760 |
|
709,852 |
|
40 |
|
992,403 |
|
Note 1 |
| ||
|
|
|
|
Chunghwa Telecom Singapore Pte., Ltd |
|
Subsidiary |
|
Investments accounted for using equity method |
|
26,383 |
|
690,872 |
|
100 |
|
690,872 |
|
Note 1 |
| ||
|
|
|
|
CHIEF Telecom Inc. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
37,942 |
|
607,343 |
|
69 |
|
550,516 |
|
Note 1 |
| ||
|
|
|
|
International Integrated System, Inc. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
22,498 |
|
259,520 |
|
33 |
|
239,071 |
|
Note 1 |
| ||
|
|
|
|
Viettel-CHT Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
|
|
256,560 |
|
30 |
|
256,560 |
|
Note 1 |
| ||
|
|
|
|
Huada Digital Corporation |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
25,000 |
|
250,778 |
|
50 |
|
250,778 |
|
Note 1 |
| ||
|
|
|
|
Chunghwa International Yellow Pages Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
15,000 |
|
204,202 |
|
100 |
|
204,202 |
|
Note 1 |
| ||
|
|
|
|
Prime Asia Investments Group Ltd. (B.V.I.) |
|
Subsidiary |
|
Investments accounted for using equity method |
|
6,960 |
|
174,899 |
|
100 |
|
175,126 |
|
Note 1 |
| ||
|
|
|
|
Skysoft Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
4,438 |
|
125,290 |
|
30 |
|
87,602 |
|
Note 1 |
| ||
|
|
|
|
Spring House Entertainment Tech. Inc. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
5,996 |
|
109,623 |
|
56 |
|
96,963 |
|
Note 1 |
| ||
|
|
|
|
Dian Zuan Integrating Marketing Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
11,464 |
|
108,533 |
|
40 |
|
108,533 |
|
Note 1 |
| ||
|
|
|
|
Chunghwa Telecom Global, Inc. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
6,000 |
|
90,832 |
|
100 |
|
105,550 |
|
Note 1 |
| ||
|
|
|
|
Kingwaytek Technology Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
1,703 |
|
76,849 |
|
33 |
|
38,442 |
|
Note 1 |
| ||
|
|
|
|
Smartfun Digital Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
6,500 |
|
56,461 |
|
65 |
|
56,504 |
|
Note 1 |
| ||
|
|
|
|
Chunghwa Telecom Vietnam Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
34,737 |
|
100 |
|
34,737 |
|
Note 1 |
| ||
|
|
|
|
So-net Entertainment Taiwan Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
3,429 |
|
34,644 |
|
30 |
|
17,208 |
|
Note 1 |
| ||
|
|
|
|
Chunghwa Telecom Japan Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
1 |
|
22,858 |
|
100 |
|
22,858 |
|
Note 1 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Chunghwa Sochamp Technology Inc. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
2,040 |
|
$ |
18,711 |
|
51 |
|
$ |
18,871 |
|
Note 1 |
| ||
|
|
|
|
New Prospect Investments Holdings Ltd. (B.V.I.) |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
US$ |
(1 dollar |
|
100 |
|
US$ |
(1 dollar |
) |
Note 2 |
| ||
|
|
|
|
Taipei Financial Center Corp. |
|
|
|
Financial assets carried at cost - noncurrent |
|
172,927 |
|
1,789,530 |
|
12 |
|
1,608,027 |
|
Note 1 |
| ||||
|
|
|
|
Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II) |
|
|
|
Financial assets carried at cost - noncurrent |
|
20,000 |
|
200,000 |
|
17 |
|
210,964 |
|
Note 1 |
| ||||
|
|
|
|
Global Mobile Corp. |
|
|
|
Financial assets carried at cost - noncurrent |
|
7,617 |
|
77,018 |
|
3 |
|
65,843 |
|
Note 1 |
| ||||
|
|
|
|
Innovation Works Development Fund, L.P. |
|
|
|
Financial assets carried at cost - noncurrent |
|
|
|
73,154 |
|
4 |
|
71,838 |
|
Note 1 |
| ||||
|
|
|
|
iD Branding Ventures |
|
|
|
Financial assets carried at cost - noncurrent |
|
6,750 |
|
67,500 |
|
8 |
|
62,070 |
|
Note 1 |
| ||||
|
|
|
|
Innovation Works Limited |
|
|
|
Financial assets carried at cost - noncurrent |
|
1,000 |
|
31,391 |
|
2 |
|
36,403 |
|
Note 1 |
| ||||
|
|
|
|
CQi Energy Infocom Inc. |
|
|
|
Financial assets carried at cost - noncurrent |
|
2,000 |
|
6,000 |
|
18 |
|
(128 |
) |
Note 1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
RPTI Intergroup International Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
4,765 |
|
|
|
10 |
|
41,413 |
|
Note 1 |
| ||||
|
|
|
|
Essence Technology Solution, Inc. |
|
|
|
Financial assets carried at cost - noncurrent |
|
200 |
|
|
|
7 |
|
638 |
|
Note 1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Beneficiary certificates (mutual fund) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
HSBC Glbl Emerging Markets Bd A Inc. |
|
|
|
Available-for-sale financial assets |
|
304 |
|
172,231 |
|
|
|
178,968 |
|
Note 3 |
| ||||
|
|
|
|
Templeton Global Bond A (Acc) |
|
|
|
Available-for-sale financial assets |
|
418 |
|
307,114 |
|
|
|
322,904 |
|
Note 3 |
| ||||
|
|
|
|
PIMCO Global Investment Grade Credit - Ins H Acc |
|
|
|
Available-for-sale financial assets |
|
751 |
|
307,245 |
|
|
|
330,472 |
|
Note 3 |
| ||||
|
|
|
|
PIMCO GIS Total Return Bond Fund - H Institutional Class (Acc) |
|
|
|
Available-for-sale financial assets |
|
770 |
|
534,453 |
|
|
|
556,272 |
|
Note 3 |
| ||||
|
|
|
|
Janus Flexible Income Bond Fund |
|
|
|
Available-for-sale financial assets |
|
671 |
|
230,472 |
|
|
|
241,150 |
|
Note 3 |
| ||||
|
|
|
|
PIMCO GIS Diversified Bond Fund - H Institutional Class (Acc) |
|
|
|
Available-for-sale financial assets |
|
984 |
|
347,452 |
|
|
|
374,450 |
|
Note 3 |
| ||||
|
|
|
|
Fidelity Funds - US Dollar Bond Fund Y-ACC-USD |
|
|
|
Available-for-sale financial assets |
|
397 |
|
148,410 |
|
|
|
148,019 |
|
Note 3 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
China Airlines Ltd. |
|
|
|
Available-for-sale financial assets - noncurrent |
|
263,622 |
|
3,092,287 |
|
5 |
|
3,137,103 |
|
Note 4 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Bond |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Taiwan Power Co. 2nd Unsecured Bond-EB Issue in 2005 |
|
|
|
Held-to-maturity financial assets |
|
|
|
307,721 |
|
|
|
307,721 |
|
Note 6 |
| ||||
|
|
|
|
Taiwan Power Co. 2nd Unsecured Bond-EB Issue in 2005 |
|
|
|
Held-to-maturity financial assets |
|
|
|
204,701 |
|
|
|
204,701 |
|
Note 6 |
| ||||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bond-B Issue in 2006 |
|
|
|
Held-to-maturity financial assets |
|
|
|
303,708 |
|
|
|
303,708 |
|
Note 6 |
| ||||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bond-B Issue in 2006 |
|
|
|
Held-to-maturity financial assets |
|
|
|
404,942 |
|
|
|
404,942 |
|
Note 6 |
| ||||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bond-C Issue in 2006 |
|
|
|
Held-to-maturity financial assets |
|
|
|
208,464 |
|
|
|
208,464 |
|
Note 6 |
| ||||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bond-C Issue in 2006 |
|
|
|
Held-to-maturity financial assets |
|
|
|
104,149 |
|
|
|
104,149 |
|
Note 6 |
| ||||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Taiwan Power Co. 2nd Unsecured Corporate Bond-C Issue in 2006 |
|
|
|
Held-to-maturity financial assets |
|
|
|
$ |
209,788 |
|
|
|
$ |
209,788 |
|
Note 6 |
|
|
|
|
|
Yuanta Securities Co., Ltd. 1st Unsecured Corporate Bonds-B Issue in 2007 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,266 |
|
|
|
200,266 |
|
Note 6 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bond-A Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
101,698 |
|
|
|
101,698 |
|
Note 6 |
| ||
|
|
|
|
China Steel Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
101,295 |
|
|
|
101,295 |
|
Note 6 |
| ||
|
|
|
|
China Steel Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,008 |
|
|
|
100,008 |
|
Note 6 |
| ||
|
|
|
|
China Steel Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
101,252 |
|
|
|
101,252 |
|
Note 6 |
| ||
|
|
|
|
China Steel Corporation 2nd Unsecured Corporate Bonds-B Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
309,995 |
|
|
|
309,995 |
|
Note 6 |
| ||
|
|
|
|
China Steel Corporation 2nd Unsecured Corporate Bonds-B Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
205,664 |
|
|
|
205,664 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 2nd Unsecured Corporate Bonds-B Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
152,650 |
|
|
|
152,650 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 3rd Unsecured Corporate Bond-B Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
50,521 |
|
|
|
50,521 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 4th Unsecured Corporate Bond-B Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
204,108 |
|
|
|
204,108 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 7th Unsecured Corporate Bond-A Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
152,854 |
|
|
|
152,854 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 2nd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
402,539 |
|
|
|
402,539 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 3rd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
201,634 |
|
|
|
201,634 |
|
Note 6 |
| ||
|
|
|
|
China Development Financial Holding Corporation 1st Unsecured Corporate Bonds-A Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
101,307 |
|
|
|
101,307 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
99,963 |
|
|
|
99,963 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,903 |
|
|
|
100,903 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
404,691 |
|
|
|
404,691 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
202,908 |
|
|
|
202,908 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
49,975 |
|
|
|
49,975 |
|
Note 6 |
| ||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bonds-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,573 |
|
|
|
200,573 |
|
Note 6 |
| ||
|
|
|
|
FCFC 1st Unsecured Corporate Bonds Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
251,299 |
|
|
|
251,299 |
|
Note 6 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Taiwan Power Co. 1st Secured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
$ |
40,379 |
|
|
|
$ |
40,379 |
|
Note 6 |
|
|
|
|
|
Taiwan Power Co. 1st Secured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,834 |
|
|
|
200,834 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 2nd Secured Corporate Bond-B Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,280 |
|
|
|
100,280 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Company 4th Secured Corporate Bond-B Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
349,187 |
|
|
|
349,187 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Company 5th Secured Corporate Bond-B Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,482 |
|
|
|
100,482 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 1st Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
202,163 |
|
|
|
202,163 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 1st Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
303,034 |
|
|
|
303,034 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 1st Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
99,957 |
|
|
|
99,957 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 3rd Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,448 |
|
|
|
200,448 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 3rd Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
50,255 |
|
|
|
50,255 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 4th Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
302,228 |
|
|
|
302,228 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 4th Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
199,763 |
|
|
|
199,763 |
|
Note 6 |
| ||
|
|
|
|
MLPC 1st Unsecured Corporate Bond Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
303,470 |
|
|
|
303,470 |
|
Note 6 |
| ||
|
|
|
|
MLPC 1st Unsecured Corporate Bond Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
99,939 |
|
|
|
99,939 |
|
Note 6 |
| ||
|
|
|
|
MLPC 1st Unsecured Corporate Bond Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
99,939 |
|
|
|
99,939 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
201,584 |
|
|
|
201,584 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
303,270 |
|
|
|
303,270 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,440 |
|
|
|
200,440 |
|
Note 6 |
| ||
|
|
|
|
Hon Hai Precision Industry Co., Ltd. First Debenture Issuing of 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
176,447 |
|
|
|
176,447 |
|
Note 6 |
| ||
|
|
|
|
Hon Hai Precision Industry Co., Ltd. First Debenture Issuing of 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,728 |
|
|
|
100,728 |
|
Note 6 |
| ||
|
|
|
|
Hon Hai Precision Industry Co., Ltd. First Debenture Issuing of 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,867 |
|
|
|
100,867 |
|
Note 6 |
| ||
|
|
|
|
FCFC 2st Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,328 |
|
|
|
100,328 |
|
Note 6 |
| ||
|
|
|
|
FCFC 2st Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
200,932 |
|
|
|
200,932 |
|
Note 6 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TaipeiFubon Bank 5th Financial Debenturees-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
$ |
100,608 |
|
|
|
$ |
100,608 |
|
Note 6 |
|
|
|
|
|
TaipeiFubon Bank 5th Financial Debenturees-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
201,523 |
|
|
|
201,523 |
|
Note 6 |
| ||
|
|
|
|
TaipeiFubon Bank 5th Financial Debenturees-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
303,207 |
|
|
|
303,207 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,396 |
|
|
|
100,396 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
302,349 |
|
|
|
302,349 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Company 2nd Secured Corporate Bond-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,207 |
|
|
|
100,207 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co 3rd Secured Corporate Bond-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
201,314 |
|
|
|
201,314 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 4th Secured Corporate Bond-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
199,883 |
|
|
|
199,883 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 4th Secured Corporate Bond-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
99,942 |
|
|
|
99,942 |
|
Note 6 |
| ||
|
|
|
|
Taiwan Power Co. 4th Secured Corporate Bond-A Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
300,585 |
|
|
|
300,585 |
|
Note 6 |
| ||
|
|
|
|
Mega Securities Co., Ltd. 1st Unsecured Corporate Bond Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
300,000 |
|
|
|
300,000 |
|
Note 6 |
| ||
|
|
|
|
NAN YA Company 2nd Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
50,440 |
|
|
|
50,440 |
|
Note 6 |
| ||
|
|
|
|
China Development Holding Corporation 1st Unsecured Corporate Bond-A Issue in 2009 |
|
|
|
Held-to-maturity financial assets |
|
|
|
202,556 |
|
|
|
202,556 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2010 |
|
|
|
Held-to-maturity financial assets |
|
|
|
299,668 |
|
|
|
299,668 |
|
Note 6 |
| ||
|
|
|
|
Yuanta FHC 1st Unsecured Corporate Bonds-A Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
300,000 |
|
|
|
300,000 |
|
Note 6 |
| ||
|
|
|
|
China Steel Corporation 1st Unsecured Corporate Bonds Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,430 |
|
|
|
100,430 |
|
Note 6 |
| ||
|
|
|
|
FCFC 1st Unsecured Corporate Bonds Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
299,460 |
|
|
|
299,460 |
|
Note 6 |
| ||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
299,733 |
|
|
|
299,733 |
|
Note 6 |
| ||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
100,868 |
|
|
|
100,868 |
|
Note 6 |
| ||
|
|
|
|
Fubon Financial Holding Co., Ltd. 1st Unsecured Corporate Bond issued in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
302,004 |
|
|
|
302,004 |
|
Note 6 |
| ||
|
|
|
|
HSBC Bank (Taiwan) Limited 1st Financial Debenture-D Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
300,000 |
|
|
|
300,000 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
149,741 |
|
|
|
149,741 |
|
Note 6 |
| ||
|
|
|
|
Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
199,626 |
|
|
|
199,626 |
|
Note 6 |
|
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2012 |
|
|
|
Held-to-maturity financial assets |
|
|
|
$ |
|
200,366 |
|
|
|
$ |
|
200,366 |
|
Note 6 |
|
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2012 |
|
|
|
Held-to-maturity financial assets |
|
|
|
|
99,906 |
|
|
|
|
99,906 |
|
Note 6 |
| ||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2012 |
|
|
|
Held-to-maturity financial assets |
|
|
|
|
199,813 |
|
|
|
|
199,813 |
|
Note 6 |
| ||
|
|
|
|
KGI Securities Co., Ltd. 1st Unsecured Corporate Bonds in 2011 |
|
|
|
Held-to-maturity financial assets |
|
|
|
|
300,000 |
|
|
|
|
300,000 |
|
Note 6 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1 |
|
Senao International Co., |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
Ltd. |
|
Senao Networks, Inc. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
16,824 |
|
|
372,310 |
|
41 |
|
|
372,310 |
|
Note 1 |
| ||
|
|
|
|
Senao International (Samoa) Holding Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
23,975 |
|
US$ |
503,403 |
) |
100 |
|
US$ |
503,961 (17,066 |
) |
Note 8 |
| ||
|
|
|
|
N.T.U. Innovation Incubation Corporation |
|
|
|
Financial assets carried at cost - noncurrent |
|
1,200 |
|
|
12,000 |
|
9 |
|
|
12,000 |
|
Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
2 |
|
CHIEF Telecom Inc. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Unigate Telecom Inc. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
200 |
|
|
1,774 |
|
100 |
|
|
1,774 |
|
Note 1 |
| ||
|
|
|
|
Chief International Corp. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
200 |
|
US$ |
10,952 |
) |
100 |
|
US$ |
10,952 |
) |
Note 1 |
| ||
|
|
|
|
3 Link Information Service Co., Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
374 |
|
|
3,450 |
|
10 |
|
|
7,022 |
|
Note 1 |
| ||
|
|
|
|
21Vianet Group. Inc. |
|
|
|
Available-for-sale financial assets |
|
208 |
|
US$ |
11,595 |
) |
|
|
US$ |
11,595 |
) |
Note 4 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
3 |
|
Chunghwa System |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
Integration Co., Ltd. |
|
Concord Technology Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
1,500 |
|
RMB |
20,407 |
) |
100 |
|
RMB |
20,407 |
) |
Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
7 |
|
Spring House |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
Entertainment Tech. Inc. |
|
Ceylon Innovation Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
|
942 |
|
100 |
|
|
942 |
|
Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
8 |
|
Light Era Development |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
Co., Ltd. |
|
Yao Yong Real Property Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
83,290 |
|
|
2,837,303 |
|
100 |
|
|
1,931,727 |
|
Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
9 |
|
Chunghwa Telecom |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
Singapore Pte., Ltd. |
|
ST-2 Satellite Ventures Pte., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
18,102 |
|
|
490,707 |
|
38 |
|
|
490,707 |
|
Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
SG$ |
(20,890 |
) |
|
|
SG$ |
(20,890 |
) |
|
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
14 |
|
Chunghwa Investment Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
10,317 |
|
$ |
124,047 |
|
53 |
|
$ |
124,047 |
|
Note 1 |
|
|
|
|
|
Chunghwa Investment Holding Co., Ltd. (CIHC) |
|
Subsidiary |
|
Investments accounted for using equity method |
|
1,432 |
|
21,214 |
|
100 |
|
21,214 |
|
Note 1 |
| ||
|
|
|
|
PandaMonium Company Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
602 |
|
|
|
43 |
|
|
|
Note 1 |
| ||
|
|
|
|
CHIEF Telecom Inc. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
2,000 |
|
28,676 |
|
4 |
|
28,676 |
|
Note 1 |
| ||
|
|
|
|
Senao International Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
1,001 |
|
50,278 |
|
|
|
138,138 |
|
Note 4 |
| ||
|
|
|
|
Tatung Technology Inc. |
|
|
|
Financial assets carried at cost - noncurrent |
|
3,542 |
|
60,081 |
|
11 |
|
60,081 |
|
Note 1 |
| ||
|
|
|
|
Digimax Inc. |
|
|
|
Financial assets carried at cost - noncurrent |
|
2,000 |
|
15,080 |
|
4 |
|
14,578 |
|
Note 1 |
| ||
|
|
|
|
iD Branding Ventures |
|
|
|
Financial assets carried at cost - noncurrent |
|
2,250 |
|
22,500 |
|
3 |
|
25,591 |
|
Note 1 |
| ||
|
|
|
|
Uni Display Inc. |
|
|
|
Financial assets carried at cost - noncurrent |
|
4,630 |
|
55,450 |
|
4 |
|
40,196 |
|
Note 1 |
| ||
|
|
|
|
A2peak Power Co., Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
990 |
|
|
|
3 |
|
|
|
Note 1 |
| ||
|
|
|
|
CoaTronics Inc. |
|
|
|
Financial assets carried at cost - noncurrent |
|
1,200 |
|
12,000 |
|
9 |
|
4,725 |
|
Note 1 |
| ||
|
|
|
|
VisEra Technologies Company Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
649 |
|
29,371 |
|
|
|
11,236 |
|
Note 1 |
| ||
|
|
|
|
Ultra Fine Optical Technology Co., Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
1,800 |
|
27,000 |
|
8 |
|
27,000 |
|
Note 1 |
| ||
|
|
|
|
Procrystal Technology Co., Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
1,350 |
|
68,185 |
|
|
|
35,627 |
|
Note 1 |
| ||
|
|
|
|
Tons Lightology Inc. |
|
|
|
Financial assets carried at cost - noncurrent |
|
1,113 |
|
66,150 |
|
|
|
41,014 |
|
Note 1 |
| ||
|
|
|
|
Alder Optomechanical Corp. |
|
|
|
Financial assets carried at cost - noncurrent |
|
490 |
|
29,750 |
|
2 |
|
29,750 |
|
Note 7 |
| ||
|
|
|
|
Aide Energy (Cayman) Holding Co., Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
800 |
|
9,380 |
|
1 |
|
29,940 |
|
Note 1 |
| ||
|
|
|
|
XinTec Inc. |
|
|
|
Financial assets carried at cost - noncurrent |
|
24 |
|
1,076 |
|
|
|
678 |
|
Note 7 |
| ||
|
|
|
|
DelSolar Co., Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
119 |
|
5,702 |
|
|
|
2,516 |
|
Note 7 |
| ||
|
|
|
|
Subtron Technology Co., Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
187 |
|
3,483 |
|
|
|
1,808 |
|
Note 1 |
| ||
|
|
|
|
Cando Corporation |
|
|
|
Financial assets carried at cost - noncurrent |
|
376 |
|
4,937 |
|
|
|
3,899 |
|
Note 7 |
| ||
|
|
|
|
Tatung Fine Chemicals Co. |
|
|
|
Financial assets carried at cost - noncurrent |
|
111 |
|
4,364 |
|
|
|
2,530 |
|
Note 7 |
| ||
|
|
|
|
OptiVision Technology Inc. |
|
|
|
Financial assets carried at cost - noncurrent |
|
300 |
|
5,087 |
|
|
|
1,230 |
|
Note 7 |
| ||
|
|
|
|
SuperAlloy Industrial Co., Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
481 |
|
6,732 |
|
|
|
7,726 |
|
Note 7 |
| ||
|
|
|
|
MEDIAPRO TECHNOLOGY LTD. |
|
|
|
Financial assets carried at cost - noncurrent |
|
55 |
|
44,871 |
|
1 |
|
44,871 |
|
Note 7 |
| ||
|
|
|
|
Fashion Guide Co., Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
400 |
|
10,000 |
|
2 |
|
10,000 |
|
Note 7 |
| ||
|
|
|
|
Hiroca Holdings Ltd. |
|
|
|
Financial assets carried at cost - noncurrent |
|
140 |
|
17,847 |
|
|
|
16,380 |
|
Note 7 |
| ||
|
|
|
|
Fubon Financial Holding Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
80 |
|
2,728 |
|
|
|
2,661 |
|
Note 4 |
| ||
|
|
|
|
Cathay Financial Holding Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
92 |
|
4,134 |
|
|
|
3,076 |
|
Note 4 |
| ||
|
|
|
|
Taiwan Hon Chuan Enterprise Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
4 |
|
200 |
|
|
|
231 |
|
Note 4 |
| ||
|
|
|
|
Wei Chuan Foods Corp. |
|
|
|
Available-for-sale financial assets |
|
203 |
|
8,913 |
|
|
|
6,669 |
|
Note 4 |
| ||
|
|
|
|
Gemtek Technology Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
49 |
|
2,620 |
|
|
|
1,279 |
|
Note 4 |
| ||
|
|
|
|
Coxon Precise Industrial Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
107 |
|
8,206 |
|
|
|
4,879 |
|
Note 4 |
| ||
|
|
|
|
Altek Corp. |
|
|
|
Available-for-sale financial assets |
|
36 |
|
1,824 |
|
|
|
981 |
|
Note 4 |
| ||
|
|
|
|
I-Chiun Precision Industry Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
80 |
|
3,904 |
|
|
|
1,776 |
|
Note 4 |
| ||
|
|
|
|
Taiwan Semiconductor Manufacturing Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
783 |
|
|
|
849 |
|
Note 4 |
| ||
|
|
|
|
Wistron NeWeb Corporation |
|
|
|
Available-for-sale financial assets |
|
57 |
|
4,889 |
|
|
|
3,721 |
|
Note 4 |
| ||
|
|
|
|
MasterLink Securities Corporation |
|
|
|
Available-for-sale financial assets |
|
250 |
|
3,162 |
|
|
|
2,575 |
|
Note 4 |
| ||
|
|
|
|
Chipbond Technology Corporation |
|
|
|
Available-for-sale financial assets |
|
60 |
|
2,724 |
|
|
|
2,295 |
|
Note 4 |
| ||
|
|
|
|
Chung Hwa Pulp Corp. |
|
|
|
Available-for-sale financial assets |
|
74 |
|
1,141 |
|
|
|
816 |
|
Note 4 |
| ||
|
|
|
|
Makalot Industrial Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
15 |
|
1,056 |
|
|
|
1,319 |
|
Note 4 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Macronix International Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
170 |
|
$ |
3,075 |
|
|
|
$ |
1,870 |
|
Note 4 |
|
|
|
|
|
Thxe Ming Industrial Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
70 |
|
2,609 |
|
|
|
1,999 |
|
Note 4 |
| ||
|
|
|
|
Apex Biotechnology Corp. |
|
|
|
Available-for-sale financial assets |
|
1 |
|
32 |
|
|
|
40 |
|
Note 4 |
| ||
|
|
|
|
Cyberlink Co. |
|
|
|
Available-for-sale financial assets |
|
36 |
|
5,645 |
|
|
|
3,338 |
|
Note 4 |
| ||
|
|
|
|
Optotech Corporation |
|
|
|
Available-for-sale financial assets |
|
190 |
|
3,553 |
|
|
|
2,746 |
|
Note 4 |
| ||
|
|
|
|
Tang Eng Iron Works Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
75 |
|
2,151 |
|
|
|
2,205 |
|
Note 4 |
| ||
|
|
|
|
Yuanta Financial Holdings |
|
|
|
Available-for-sale financial assets |
|
246 |
|
4,599 |
|
|
|
3,771 |
|
Note 4 |
| ||
|
|
|
|
Visual Photonics Epitaxy Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
478 |
|
|
|
559 |
|
Note 4 |
| ||
|
|
|
|
Taiwan PCB Techvest Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
|
|
14 |
|
|
|
11 |
|
Note 4 |
| ||
|
|
|
|
Chung Hung Steel Corporation |
|
|
|
Available-for-sale financial assets |
|
128 |
|
1,543 |
|
|
|
1,323 |
|
Note 4 |
| ||
|
|
|
|
Edison Opto Corporation |
|
|
|
Available-for-sale financial assets |
|
35 |
|
2,671 |
|
|
|
2,162 |
|
Note 4 |
| ||
|
|
|
|
Delta Electronics Inc. |
|
|
|
Available-for-sale financial assets |
|
54 |
|
5,270 |
|
|
|
4,671 |
|
Note 4 |
| ||
|
|
|
|
San Shing Fastech Corp. |
|
|
|
Available-for-sale financial assets |
|
345 |
|
11,766 |
|
|
|
15,870 |
|
Note 4 |
| ||
|
|
|
|
USI Corp. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
293 |
|
|
|
291 |
|
Note 4 |
| ||
|
|
|
|
President Chain Store Corp. |
|
|
|
Available-for-sale financial assets |
|
60 |
|
9,959 |
|
|
|
9,840 |
|
Note 4 |
| ||
|
|
|
|
Champion Microelectronic Corp. |
|
|
|
Available-for-sale financial assets |
|
51 |
|
2,665 |
|
|
|
1,441 |
|
Note 4 |
| ||
|
|
|
|
Unimicron Corporation |
|
|
|
Available-for-sale financial assets |
|
135 |
|
5,289 |
|
|
|
4,941 |
|
Note 4 |
| ||
|
|
|
|
Taiwan Cooperative Bank |
|
|
|
Available-for-sale financial assets |
|
200 |
|
4,443 |
|
|
|
3,694 |
|
Note 4 |
| ||
|
|
|
|
Polaris/P-shares MSCI Taiwan Financial ETF |
|
|
|
Available-for-sale financial assets |
|
230 |
|
2,646 |
|
|
|
2,560 |
|
Note 4 |
| ||
|
|
|
|
Test Rite International Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
221 |
|
5,385 |
|
|
|
4,497 |
|
Note 4 |
| ||
|
|
|
|
Formosa Petrochemical Corporation |
|
|
|
Available-for-sale financial assets |
|
40 |
|
3,651 |
|
|
|
3,680 |
|
Note 4 |
| ||
|
|
|
|
Oriental Union Chemical Corporation |
|
|
|
Available-for-sale financial assets |
|
85 |
|
3,493 |
|
|
|
3,243 |
|
Note 4 |
| ||
|
|
|
|
Huga Optotech Inc. |
|
|
|
Available-for-sale financial assets |
|
78 |
|
1,986 |
|
|
|
1,176 |
|
Note 4 |
| ||
|
|
|
|
Far Eastern Department Stores Ltd. |
|
|
|
Available-for-sale financial assets |
|
105 |
|
4,024 |
|
|
|
3,964 |
|
Note 4 |
| ||
|
|
|
|
MediaTek Inc. |
|
|
|
Available-for-sale financial assets |
|
5 |
|
1,612 |
|
|
|
1,412 |
|
Note 4 |
| ||
|
|
|
|
Career Technology (MFG.) Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
100 |
|
5,208 |
|
|
|
4,750 |
|
Note 4 |
| ||
|
|
|
|
Taimide Technology Ltd. |
|
|
|
Available-for-sale financial assets - noncurrent |
|
712 |
|
17,825 |
|
|
|
32,104 |
|
Note 4 |
| ||
|
|
|
|
PChome Store Inc. |
|
|
|
Available-for-sale financial assets - noncurrent |
|
325 |
|
14,072 |
|
|
|
39,813 |
|
Note 4 |
| ||
|
|
|
|
IC Plus Corp. |
|
|
|
Available-for-sale financial assets - noncurrent |
|
210 |
|
5,630 |
|
|
|
2,632 |
|
Note 4 |
| ||
|
|
|
|
Formosa Plastics Corporation |
|
|
|
Available-for-sale financial assets |
|
36 |
|
3,102 |
|
|
|
3,102 |
|
Note 4 |
| ||
|
|
|
|
Phoenix Tours International, Inc. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
717 |
|
|
|
644 |
|
Note 4 |
| ||
|
|
|
|
Asustek Computer Inc. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
2,351 |
|
|
|
2,785 |
|
Note 4 |
| ||
|
|
|
|
Chunghwa Chemical Synthesis & Biotech Co., Ltd |
|
|
|
Available-for-sale financial assets |
|
50 |
|
3,014 |
|
|
|
2,510 |
|
Note 4 |
| ||
|
|
|
|
Evergreen International Corp. |
|
|
|
Available-for-sale financial assets |
|
110 |
|
1,947 |
|
|
|
1,705 |
|
Note 4 |
| ||
|
|
|
|
Kung Long Batteries Industrial Co., Ltd |
|
|
|
Available-for-sale financial assets |
|
110 |
|
6,269 |
|
|
|
5,687 |
|
Note 4 |
| ||
|
|
|
|
Tingyi (Cayman Islands) Holding Corp. |
|
|
|
Available-for-sale financial assets |
|
60 |
|
2,570 |
|
|
|
2,562 |
|
Note 4 |
| ||
|
|
|
|
Taiwan Mobile Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
70 |
|
6,152 |
|
|
|
6,293 |
|
Note 4 |
| ||
|
|
|
|
Uni-President Enterprises Corp. |
|
|
|
Available-for-sale financial assets |
|
135 |
|
5,862 |
|
|
|
5,515 |
|
Note 4 |
| ||
|
|
|
|
Ruentex Development Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
20 |
|
781 |
|
|
|
870 |
|
Note 4 |
| ||
|
|
|
|
Arcadyan Technology Corporation |
|
|
|
Available-for-sale financial assets |
|
70 |
|
3,188 |
|
|
|
3,007 |
|
Note 4 |
| ||
|
|
|
|
Lcy Chemical Corp. |
|
|
|
Available-for-sale financial assets |
|
85 |
|
4,639 |
|
|
|
3,995 |
|
Note 4 |
| ||
|
|
|
|
Microbio Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
80 |
|
3,258 |
|
|
|
2,948 |
|
Note 4 |
| ||
|
|
|
|
China Development Financial Holding Corp. |
|
|
|
Available-for-sale financial assets |
|
200 |
|
1,975 |
|
|
|
1,800 |
|
Note 4 |
| ||
|
|
|
|
Cheng Shin Rubber Ind., Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
40 |
|
2,757 |
|
|
|
2,836 |
|
Note 4 |
| ||
|
|
|
|
Huaku Development Co., Ltd. |
|
|
|
Available-for-sale financial assets |
|
20 |
|
1,557 |
|
|
|
1,498 |
|
Note 4 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Formosa Chemicals & Fibre Corporation |
|
|
|
Available-for-sale financial assets |
|
50 |
|
$ |
4,505 |
|
|
|
$ |
4,310 |
|
Note 4 |
|
|
|
|
|
Tsann Kuen Enterprise Co., Ltd |
|
|
|
Available-for-sale financial assets |
|
35 |
|
2,489 |
|
|
|
2,467 |
|
Note 4 |
| ||
|
|
|
|
Foxconn Technology Co., Ltd |
|
|
|
Available-for-sale financial assets |
|
10 |
|
1,298 |
|
|
|
1,220 |
|
Note 4 |
| ||
|
|
|
|
Integrated Memory Logic Limited |
|
|
|
Available-for-sale financial assets |
|
25 |
|
2,879 |
|
|
|
2,650 |
|
Note 4 |
| ||
|
|
|
|
HTC Corporation |
|
|
|
Available-for-sale financial assets |
|
5 |
|
3,118 |
|
|
|
2,985 |
|
Note 4 |
| ||
|
|
|
|
Formosa Laboratories, Inc. |
|
|
|
Available-for-sale financial assets |
|
10 |
|
777 |
|
|
|
747 |
|
Note 4 |
| ||
|
|
|
|
Gigasolar Materials Corporation |
|
|
|
Available-for-sale financial assets |
|
164 |
|
21,050 |
|
|
|
48,119 |
|
Note 4 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Beneficiary certificates (mutual fund) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Mega Diamond Bond Fund |
|
|
|
Available-for-sale financial assets |
|
4,139 |
|
50,000 |
|
|
|
50,037 |
|
Note 3 |
| ||
|
|
|
|
Manulife Asia Pacific Bond |
|
|
|
Available-for-sale financial assets |
|
749 |
|
8,000 |
|
|
|
8,071 |
|
Note 3 |
| ||
|
|
|
|
Paradigm high Yield Bond Fund-A |
|
|
|
Available-for-sale financial assets |
|
1,100 |
|
11,988 |
|
|
|
12,707 |
|
Note 3 |
| ||
|
|
|
|
Upamc Quality Growth Fund |
|
|
|
Available-for-sale financial assets |
|
393 |
|
8,000 |
|
|
|
7,643 |
|
Note 3 |
| ||
|
|
|
|
Cathay Mandarin Fund |
|
|
|
Available-for-sale financial assets |
|
250 |
|
2,500 |
|
|
|
1,908 |
|
Note 3 |
| ||
|
|
|
|
Fubon Agribusiness Equity Fund |
|
|
|
Available-for-sale financial assets |
|
1,000 |
|
10,000 |
|
|
|
9,230 |
|
Note 3 |
| ||
|
|
|
|
Fuh Hwa Emerging Market Active Allocation Fund of Funds |
|
|
|
Available-for-sale financial assets |
|
1,000 |
|
10,000 |
|
|
|
9,840 |
|
Note 3 |
| ||
|
|
|
|
Franklin Templeton Sinoam Franklin Templeton Global Fund of Funds |
|
|
|
Available-for-sale financial assets |
|
870 |
|
11,622 |
|
|
|
11,356 |
|
Note 3 |
| ||
|
|
|
|
PowerShares QQQ |
|
|
|
Available-for-sale financial assets |
|
1 |
|
1,712 |
|
|
|
2,393 |
|
Note 3 |
| ||
|
|
|
|
Pro Shares UltraShort 20+ Year Treasury |
|
|
|
Available-for-sale financial assets |
|
1 |
|
1,041 |
|
|
|
604 |
|
Note 3 |
| ||
|
|
|
|
iShares FTSE/Xinhua A50 China Index ETF |
|
|
|
Available-for-sale financial assets |
|
85 |
|
4,113 |
|
|
|
3,486 |
|
Note 3 |
| ||
|
|
|
|
WISE-CSI 300 China Tracker |
|
|
|
Available-for-sale financial assets |
|
14 |
|
2,047 |
|
|
|
1,552 |
|
Note 3 |
| ||
|
|
|
|
Manulife China offshore Bond Fund-A |
|
|
|
Available-for-sale financial assets |
|
2,000 |
|
20,000 |
|
|
|
20,030 |
|
Note 3 |
| ||
|
|
|
|
Cathy Man AHL Futures Trust Fund of Funds |
|
|
|
Available-for-sale financial assets |
|
998 |
|
10,053 |
|
|
|
9,596 |
|
Note 3 |
| ||
|
|
|
|
iPath S&P 500VIX Short-Term Futures ETN |
|
|
|
Available-for-sale financial assets |
|
1 |
|
918 |
|
|
|
346 |
|
Note 3 |
| ||
|
|
|
|
Union Money Market Fund |
|
|
|
Available-for-sale financial assets |
|
5,491 |
|
70,000 |
|
|
|
70,060 |
|
Note 3 |
| ||
|
|
|
|
Paradigm Emerging Asia Pacific Bond B Fund |
|
|
|
Available-for-sale financial assets |
|
3,000 |
|
30,000 |
|
|
|
30,000 |
|
Note 3 |
| ||
|
|
|
|
Cathay Small & Med Cap Fund |
|
|
|
Available-for-sale financial assets |
|
166 |
|
5,000 |
|
|
|
5,010 |
|
Note 3 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Bond |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Hua Nan Financial Holdings Company 1st Unsecured Subordinate Corporate Bonds Issue in 2006 |
|
|
|
Available-for-sale financial assets |
|
50,000 |
|
50,509 |
|
|
|
50,808 |
|
Note 9 |
| ||
|
|
|
|
AU Optronics Corporation 1st Secured Corporate Bonds Issue in 2008 |
|
|
|
Available-for-sale financial assets |
|
25,000 |
|
25,112 |
|
|
|
25,217 |
|
Note 9 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Convertible bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Epistar Corporation Ltd. 3rd Convertible Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
17 |
|
1,815 |
|
|
|
1,722 |
|
Note 4 |
| ||
|
|
|
|
Everlight Electronics Co., Ltd. 3rd Convertible Bonds |
|
|
|
Financial assets at fair value through profit or loss |
|
60 |
|
6,415 |
|
|
|
6,000 |
|
Note 4 |
| ||
|
|
|
|
Ability Enterprise Co., Ltd. 1st Unsecured Convertible Bonds |
|
|
|
Financial assets at fair value through profit or loss |
|
40 |
|
4,008 |
|
|
|
3,988 |
|
Note 4 |
| ||
|
|
|
|
TUL the Third Security Convertible Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
15 |
|
1,500 |
|
|
|
1,507 |
|
Note 4 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Yuanta Financial Holding Co., Ltd. 1st Domestic Convertible Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
70 |
|
$ |
|
7,000 |
|
|
|
$ |
|
7,231 |
|
Note 4 |
|
|
|
|
|
Ruentex Industry Co., Ltd. 2010 1st Domestic Unsecured Convertible Corporate Bonds |
|
|
|
Financial assets at fair value through profit or loss |
|
10 |
|
|
1,007 |
|
|
|
989 |
|
Note 4 |
| |||
|
|
|
|
Ruentex Development Co., Ltd. 2010 1st Domestic Unsecured Convertible Corporate Bonds. |
|
|
|
Financial assets at fair value through profit or loss |
|
76 |
|
|
7,638 |
|
|
|
7,623 |
|
Note 4 |
| |||
|
|
|
|
Synnex Technology International Corporation 2nd Unsecured Convertible Bond Issue |
|
|
|
Financial assets at fair value through profit or loss |
|
20 |
|
|
2,004 |
|
|
|
2,031 |
|
Note 4 |
| |||
|
|
|
|
Far Eastern Department Store Ltd. 1st Domestic Unsecured Convertible Corporate Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
67 |
|
|
6,674 |
|
|
|
6,700 |
|
Note 4 |
| |||
|
|
|
|
Asia Optical 3rd Domestic Unsecured Convertible Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
15 |
|
|
1,505 |
|
|
|
1,470 |
|
Note 4 |
| |||
|
|
|
|
Hon Chuan Enterprise Co., Ltd. Domestic 1st Unsecured Convertible Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
20 |
|
|
2,020 |
|
|
|
1,980 |
|
Note 4 |
| |||
|
|
|
|
HiTi Digital Inc. Domestic Unsecured Convertible Corporate Bond |
|
|
|
Financial assets at fair value through profit or loss |
|
19 |
|
|
1,680 |
|
|
|
1,862 |
|
Note 4 |
| |||
|
|
|
|
ACHEM Technology Corporation 1st Secured Convertible Bonds Issue in 2011 |
|
|
|
Financial assets at fair value through profit or loss |
|
16 |
|
|
1,595 |
|
|
|
1,651 |
|
Note 4 |
| |||
|
|
|
|
Foxconn Technology Co., Ltd. 1st domestic unsecured convertible bond |
|
|
|
Financial assets at fair value through profit or loss |
|
4 |
|
|
398 |
|
|
|
398 |
|
Note 4 |
| |||
|
|
|
|
Welldone Company Domestic 1st Secured Convertible Bonds |
|
|
|
Financial assets at fair value through profit or loss |
|
11 |
|
|
1,186 |
|
|
|
1,166 |
|
Note 4 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
18 |
|
Concord Technology Co.,Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Glory Network System Service (Shanghai) Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
1,500 |
|
RMB |
20,407 (4,362 |
) |
100 |
|
RMB |
20,407 (4,362 |
) |
Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
20 |
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
Chunghwa Precision Test Tech. USA Corporation |
|
Subsidiary |
|
Investments accounted for using equity method |
|
400 |
|
US$ |
9,820 (333 (Note 10) |
) |
100 |
|
US$ |
9,820 |
) |
Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
22 |
|
Senao International (Samoa) Holding Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Senao International HK Limited |
|
Subsidiary |
|
Investments accounted for using equity method |
|
23,260 |
|
US$ |
481,192 (16,295 (Note 10) |
) |
100 |
|
US$ |
481,192 (16,295 |
) |
Note 8 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
HopeTech Technologies Limited |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
5,240 |
|
US$ |
21,694 (735 |
) |
45 |
|
US$ |
21,694 (735 |
) |
Note 1 |
|
(Continued)
|
|
|
|
|
|
|
|
|
|
March 31, 2012 |
|
|
| ||||||||
No. |
|
Held Company Name |
|
Marketable Securities Type and Name |
|
Relationship with the |
|
Financial Statement Account |
|
Shares |
|
Carrying Value |
|
Percentage of |
|
Market Value or |
|
Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
23 |
|
Senao International HK Limited |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Senao Trading (Fujian) Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
$ US$ |
119,476 (4,046 (Note 10) |
) |
100 |
|
$ US$ |
119,476 (4,046 |
) |
Note 8 |
|
|
|
|
|
Senao International Trading (Shanghai) Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
US$ |
91,711 (3,108 (Note 10) |
) |
100 |
|
US$ |
91,711 (3,108 |
) |
Note 8 |
|
|
|
|
|
Senao International Trading (Shanghai) Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
US$ |
56,848 (1,925 (Note 10) |
) |
100 |
|
US$ |
56,848 (1,925 |
) |
Notes 8 and 11 |
|
|
|
|
|
Senao International Trading (Jiangsu) Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
US$ |
210,157 (7,117 (Note 10) |
) |
100 |
|
US$ |
210,157 (7,117 |
) |
Note 8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24 |
|
Chunghwa Investment Holding Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHI One Investment Co., Limited |
|
Subsidiary |
|
Investments accounted for using equity method |
|
6,520 |
|
HK$ |
10,981 (2,970 (Note 10) |
) |
100 |
|
HK$ |
10,981 (2,970 |
) |
Note 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26 |
|
CHI One Investment Co., Limited |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Xiamen Sertec Business Technology Co., Ltd. |
|
Equity-method investee |
|
Investments accounted for using equity method |
|
|
|
RMB |
10,793 (2,305 |
) |
49 |
|
RMB |
10,793 (2,305 |
) |
Note 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27 |
|
Prime Asia Investments Group, Ltd. (B.V.I.) |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chunghwa Hsingta Company Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
RMB |
175,125 (37,340 (Note 10) |
) |
100 |
|
RMB |
175,125 (37,340 |
) |
Note 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29 |
|
Chunghwa Hsingta Company Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chunghwa Telecom (China) Co., Ltd. |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
RMB |
147,604 (31,472 (Note 10) |
) |
100 |
|
RMB |
147,604 (31,472 |
) |
Note 1 |
|
|
|
|
|
Jiangsu Zhenhua Information Technology Company, LLC |
|
Subsidiary |
|
Investments accounted for using equity method |
|
|
|
RMB |
27,521 (5,868 (Note 10) |
) |
75 |
|
RMB |
27,521 (5,868 |
) |
Note 1 |
|
Note 1: The net asset values of investees were based on unreviewed financial statements.
Note 2: New Prospect Investments Holdings Ltd. (B.V.I.) was incorporated in March 2006, but not yet begun operation as of March 31, 2012.
Note 3: The net asset values of beneficiary certificates (mutual fund) were based on the net asset values on March 31, 2012.
Note 4: Market value was based on the closing price of March 31, 2012.
Note 5: Showing at their original carrying amounts without adjustments for fair values, except for held-to-maturity financial assets.
Note 6: The net asset values of investees were based on amortized cost.
(Continued)
Note 7: Market value of emerging stock was based on the average trading price on March 31, 2012.
Note 8: The net asset values of investees were based on reviewed financial statements.
Note 9: The market value is determined by the hundred price of transaction market on March 31, 2012.
Note 10: The amount was eliminated upon consolidation.
Note 11: The English name is the same as the above entity; however, the Chinese names included in the respective Articles of Incorporations are different.
(Concluded)
TABLE 3
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
THREE MONTHS ENDED MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balance |
|
Acquisition |
|
Disposal |
|
Ending Balance |
| ||||||||||||||||||||||||
No. |
|
Company Name |
|
Marketable Securities |
|
Financial Statement |
|
Counter-party |
|
Nature of |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Shares |
|
Amount |
|
Carrying |
|
Gain (Loss) |
|
Shares |
|
Amount |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
China Airlines Ltd. |
|
Available-for-sale financial assets - noncurrent |
|
|
|
|
|
|
|
$ |
|
|
|
263,622 |
|
$ |
|
3,092,287 |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
263,622 |
|
$ |
|
3,092,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
Beneficiary certificates (mutual fund) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
Fidelity Funds - US Dollar Bond Fund Y-ACC-USD |
|
Available-for-sale financial assets |
|
|
|
|
|
|
|
|
|
397 |
|
148,410 |
|
|
|
|
|
|
|
|
|
397 |
|
148,410 |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
Bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-C Issue in 2002 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
300,000 |
|
|
|
|
|
|
|
300,000 |
|
300,000 |
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-C Issue in 2002 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
300,000 |
|
|
|
|
|
|
|
300,000 |
|
300,000 |
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2011 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
300,000 |
|
|
|
100,000 |
|
|
|
|
|
|
|
|
|
|
|
400,000 |
| ||||||||||||
|
|
|
|
TSMC 1st Unsecured Corporate Bond-A Issue in 2012 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
|
|
|
|
500,000 |
|
|
|
|
|
|
|
|
|
|
|
500,000 |
| ||||||||||||
|
|
|
|
Chinese Petroleum Corporation 1st Unsecured Corporate Bonds-C Issue in 2006 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
100,000 |
|
|
|
200,000 |
|
|
|
|
|
|
|
|
|
|
|
300,000 |
| ||||||||||||
|
|
|
|
KGI Securities Co., Ltd. 1st Unsecured Corporate Bonds in 2011 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
|
|
|
|
300,000 |
|
|
|
|
|
|
|
|
|
|
|
300,000 |
| ||||||||||||
|
|
|
|
China Development Holding Corporation 1st Unsecured Corporate Bonds-A Issue in 2007 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
400,000 |
|
|
|
|
|
|
|
400,000 |
|
400,000 |
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
TaipeiFubon Bank 1st Financial Debentures-A Issue in 2011 |
|
Held-to-maturity financial assets |
|
|
|
|
|
|
|
|
|
|
|
300,000 |
|
|
|
|
|
|
|
|
|
|
|
300,000 |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
1 |
|
Senao International Co., Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
Senao International (Samoa) Holding Ltd. |
|
Investments accounted for using equity method |
|
|
|
Subsidiary |
|
15,875 |
|
US$ |
466,517 (15,875 |
) |
8,100 |
|
US$ |
240,246 (8,100 |
) |
|
|
|
|
|
|
|
|
23,975 |
|
US$ |
706,763 (23,975 (Notes 4 and 5) |
) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
22 |
|
Senao International (Samoa) Holding Ltd. |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Senao International HK Limited |
|
Investments accounted for using equity method |
|
|
|
Subsidiary |
|
15,180 |
|
US$ |
477,712 (15,180 |
) |
8,080 |
|
US$ |
206,640 (8,080 |
) |
|
|
|
|
|
|
|
|
23,260 |
|
US$ |
684,532 (23,260 (Notes 4 and 5) |
) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
23 |
|
Senao International HK Limited |
|
Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
Senao International Trading (Jiangsu) Co., Ltd. |
|
Investments accounted for using equity method |
|
|
|
Subsidiary |
|
|
|
US$ |
115,971 (4,000 |
) |
|
|
US$ |
147,765 (5,000 |
) |
|
|
|
|
|
|
|
|
|
|
US$ |
263,736 (9,000 (Notes 4 and 5) |
) | |
Note 1: Showing at their original carrying amounts without adjustments for fair values.
Note 2: Stated at its nominal amounts.
Note 3: The ending balance includes cumulative transaction adjustments.
Note 4: Stated at its original investment amounts
Note 5: The amount was eliminated upon consolidation.
TABLE 4
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
THREE MONTHS ENDED MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes/Accounts Payable or |
| ||||
|
|
|
|
|
|
Nature of |
|
Transaction Details |
|
Abnormal Transaction |
|
Ending Balance |
|
|
| ||||||||||
No. |
|
Company Name |
|
Related Party |
|
Relationship |
|
Purchase/Sale |
|
Amount |
|
% to Total |
|
Payment Terms |
|
Units Price |
|
Payment Terms |
|
(Note 1) |
|
% to Total |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Senao International Co., Ltd. |
|
Subsidiary |
|
Purchase |
|
$ |
2,391,632 |
|
8 |
|
30-90 days |
|
|
|
|
|
$ |
(1,137,849 |
) |
(9 |
) |
|
|
|
|
|
|
|
|
|
|
(Notes 3 and 6) |
|
|
|
|
|
|
|
|
|
(Notes 4 and 6) |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
Chunghwa System Integration |
|
Subsidiary |
|
Purchase |
|
235,111 |
|
1 |
|
30 days |
|
|
|
|
|
(325,321 |
) |
(3 |
) | ||
|
|
|
|
Co., Ltd. |
|
|
|
|
|
(Notes 5 and 6) |
|
|
|
|
|
|
|
|
|
(Note 6) |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1 |
|
Senao International Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
Parent company |
|
Sales |
|
2,363,097 |
|
27 |
|
30-90 days |
|
|
|
|
|
1,208,541 |
|
44 |
| ||
|
|
|
|
|
|
|
|
|
|
(Notes 3 and 6) |
|
|
|
|
|
|
|
|
|
(Notes 4 and 6) |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
3 |
|
Chunghwa System Integration |
|
Chunghwa Telecom Co., Ltd. |
|
Parent company |
|
Sales |
|
665,412 |
|
91 |
|
30 days |
|
|
|
|
|
325,321 |
|
84 |
| ||
|
|
Co., Ltd. |
|
|
|
|
|
|
|
(Notes 5 and 6) |
|
|
|
|
|
|
|
|
|
(Note 6) |
|
|
| ||
Note 1: Excluding payment and receipts collected in trust for others.
Note 2: Transaction terms were determined in accordance with mutual agreements.
Note 3: The difference was because Senao International Co., Ltd. classified the amount as other current liabilities.
Note 4: The difference was because Chunghwa Telecom Co., Ltd. classified the amount as amounts collected in trust for others.
Note 5: The difference was because Chunghwa Telecom Co., Ltd. classified the amount as inventory, property, plant and equipment and intangible assets.
Note 6: The amount was eliminated upon consolidation.
TABLE 5
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts Received |
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
Turnover |
|
Overdue |
|
in Subsequent |
|
Allowance for |
| ||||||
No. |
|
Company Name |
|
Related Party |
|
Nature of Relationship |
|
Ending Balance |
|
Rate |
|
Amounts |
|
Action Taken |
|
Period |
|
Bad Debts |
| ||||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Senao International Co., Ltd. |
|
Subsidiary |
|
$ |
302,121 |
|
12.01 |
|
$ |
|
|
|
|
$ |
298,373 |
|
$ |
|
|
1 |
|
Senao International Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
Parent company |
|
1,493,698 (Note 2) |
|
7.67 |
|
|
|
|
|
8,710 |
|
|
| ||||
3 |
|
Chunghwa System Integration Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
Parent company |
|
325,321 (Note 2) |
|
5.17 |
|
|
|
|
|
79,121 |
|
|
|
Note 1: Payments and receipts collected in trust for others are excluded from the accounts receivable for calculating the turnover rate.
Note 2: The amount was eliminated upon consolidation.
TABLE 6
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES IN WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE
THREE MONTHS ENDED MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)
|
|
|
|
|
|
|
|
|
|
Original Investment Amount |
|
Balance as of March 31, 2012 |
|
Net Income |
|
Recognized Gain |
|
|
| ||||||||||||||||
No. |
|
Investor Company |
|
Investee Company |
|
Location |
|
Main Businesses and Products |
|
March 31, 2012 |
|
December 31, |
|
Shares |
|
Percentage of |
|
Carrying Value |
|
(Loss) of the |
|
(Loss) |
|
Note |
| ||||||||||
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Senao International Co., Ltd. |
|
Taiwan |
|
Selling and maintaining mobile phones and its peripheral products |
|
$ |
|
1,065,813 |
|
$ |
|
1,065,813 |
|
71,773 |
|
28 |
|
$ |
|
1,684,305 (Note 4) |
|
$ |
|
516,142 |
|
$ |
|
143,193 (Note 4) |
|
Subsidiary |
|
|
|
|
|
Light Era Development Co., Ltd. |
|
Taiwan |
|
Housing, office building development, rent and sale services |
|
3,000,000 |
|
3,000,000 |
|
300,000 |
|
100 |
|
4,422,825 (Note 4) |
|
199,964 |
|
199,967 (Note 4) |
|
Subsidiary |
| ||||||||||
|
|
|
|
Chunghwa Investment Co., Ltd. |
|
Taiwan |
|
Telecommunications, telecommunications value-added services and other related professional investment |
|
1,738,709 |
|
1,738,709 |
|
178,000 |
|
89 |
|
1,786,637 (Note 4) |
|
7,573 |
|
6,586 (Note 4) |
|
Subsidiary |
| ||||||||||
|
|
|
|
Donghwa Telecom Co., Ltd. |
|
Hong Kong |
|
International telecommunications IP fictitious internet and internet transfer services |
|
882,219 |
|
882,219 |
|
223,190 |
|
100 |
|
870,919 (Note 4) |
|
1,592 |
|
1,592 (Note 4) |
|
Subsidiary |
| ||||||||||
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
Taiwan |
|
Providing communication and information aggregative services |
|
838,506 |
|
838,506 |
|
60,000 |
|
100 |
|
723,715 (Note 4) |
|
9,189 |
|
16,006 (Note 4) |
|
Subsidiary |
| ||||||||||
|
|
|
|
Taiwan International Standard Electronics Co., Ltd. |
|
Taiwan |
|
Manufacturing, selling, designing, and maintaining of telecommunications systems and equipment |
|
164,000 |
|
164,000 |
|
1,760 |
|
40 |
|
709,852 |
|
233,032 |
|
100,919 |
|
Equity-method investee |
| ||||||||||
|
|
|
|
Chunghwa Telecom Singapore Pte., Ltd. |
|
Singapore |
|
Telecommunication wholesale, internet transfer services international data and long distance call wholesales to carriers |
|
574,112 |
|
574,112 |
|
26,383 |
|
100 |
|
690,872 (Note 4) |
|
26,643 |
|
26,643 (Note 4) |
|
Subsidiary |
| ||||||||||
|
|
|
|
CHIEF Telecom Inc. |
|
Taiwan |
|
Internet communication and internet data center (IDC) service |
|
482,165 |
|
482,165 |
|
37,942 |
|
69 |
|
607,343 (Note 4) |
|
47,749 |
|
33,771 (Note 4) |
|
Subsidiary |
| ||||||||||
|
|
|
|
InfoExplorer Co., Ltd. |
|
Taiwan |
|
IT solution provider, IT application consultation, system integration and package solution |
|
283,500 |
|
283,500 |
|
22,498 |
|
33 |
|
259,520 |
|
4,406 |
|
2,050 |
|
Equity-method investee |
| ||||||||||
|
|
|
|
Viettel-CHT Co., Ltd. |
|
Vietnam |
|
IDC services |
|
288,327 |
|
288,327 |
|
|
|
30 |
|
256,560 |
|
15,380 |
|
4,616 |
|
Equity-method investee |
| ||||||||||
|
|
|
|
Huada Digital Corporation |
|
Taiwan |
|
Providing software service |
|
250,000 |
|
250,000 |
|
25,000 |
|
50 |
|
250,778 |
|
178 |
|
89 |
|
Equity-method investee |
| ||||||||||
|
|
|
|
Chunghwa International Yellow Pages Co., Ltd. |
|
Taiwan |
|
Yellow pages sales and advertisement services |
|
150,000 |
|
150,000 |
|
15,000 |
|
100 |
|
204,202 (Note 4) |
|
9,858 |
|
9,858 (Note 4) |
|
Subsidiary |
| ||||||||||
|
|
|
|
Prime Asia Investments Group Ltd. (B.V.I.) |
|
British Virgin Islands |
|
Investment |
|
206,089 |
|
206,089 |
|
6,960 |
|
100 |
|
174,899 (Note 4) |
|
(8,214 |
) |
(8,300 (Note 4) |
) |
Subsidiary |
| ||||||||||
|
|
|
|
Skysoft Co., Ltd. |
|
Taiwan |
|
Providing of music on-line, software, electronic information, and advertisement services |
|
67,025 |
|
67,025 |
|
4,438 |
|
30 |
|
125,290 |
|
39,351 |
|
11,985 |
|
Equity-method investee |
| ||||||||||
|
|
|
|
Spring House Entertainment Inc. |
|
Taiwan |
|
Network services, producing digital entertainment contents and broadband visual sound terrace development |
|
62,209 |
|
62,209 |
|
5,996 |
|
56 |
|
109,623 (Note 4) |
|
14,546 |
|
8,481 (Note 4) |
|
Subsidiary |
| ||||||||||
|
|
|
|
Dian Zuan Integrating Marketing Co., Ltd. |
|
Taiwan |
|
Information technology service and general advertisement service |
|
114,640 |
|
114,640 |
|
11,464 |
|
40 |
|
108,533 |
|
(3,127 |
) |
(1,251 |
) |
Equity-method investee |
| ||||||||||
|
|
|
|
Chunghwa Telecom Global, Inc. |
|
United States |
|
International data and internet services and long distance call wholesales to carriers |
|
70,429 |
|
70,429 |
|
6,000 |
|
100 |
|
90,832 (Note 4) |
|
6,409 |
|
6,973 (Note 4) |
|
Subsidiary |
| ||||||||||
|
|
|
|
KingWay Technology Co., Ltd. |
|
Taiwan |
|
Publishing books, data processing and software services |
|
71,770 |
|
71,770 |
|
1,703 |
|
33 |
|
76,849 |
|
8,566 |
|
1,481 |
|
Equity-method investee |
| ||||||||||
|
|
|
|
Smartfun Digital Co., Ltd. |
|
Taiwan |
|
Software retail |
|
65,000 |
|
65,000 |
|
6,500 |
|
65 |
|
56,461 (Note 4) |
|
(5,643 |
) |
(3,664 (Note 4) |
) |
Subsidiary |
| ||||||||||
|
|
|
|
Chunghwa Telecom Vietnam Co., Ltd. |
|
Vietnam |
|
Information and communications technology, international circuit, and intelligent energy network service |
|
43,847 |
|
43,847 |
|
|
|
100 |
|
34,737 (Note 4) |
|
(2,291 |
) |
(2,291 (Note 4) |
) |
Subsidiary |
| ||||||||||
|
|
|
|
So-net Entertainment Taiwan |
|
Taiwan |
|
Online service and sale of computer hardware |
|
60,008 |
|
60,008 |
|
3,429 |
|
30 |
|
34,644 |
|
278 |
|
99 |
|
Equity-method investee |
| ||||||||||
(Continued)
|
|
|
|
|
|
|
|
|
|
Original Investment Amount |
|
Balance as of March 31, 2012 |
|
|
|
|
|
|
| |||||||||||||||||||||||||
No. |
|
Investor Company |
|
Investee Company |
|
Location |
|
Main Businesses and Products |
|
March 31, 2012 |
|
December 31, |
|
Shares |
|
Percentage of |
|
Carrying Value |
|
Net Income |
|
Recognized Gain |
|
Note |
| |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
|
|
|
|
Chunghwa Telecom Japan Co., Ltd. |
|
Japan |
|
Telecom business, information process and information provide service, development and sale of software and consulting services in telecommunication |
|
$ |
17,291 |
|
$ |
17,291 |
|
1 |
|
100 |
|
$ |
22,858 |
|
$ |
2,327 |
|
$ |
2,327 |
|
Subsidiary |
| ||||||||||||||
|
|
|
|
Chunghwa Sochamp Technology Inc. |
|
Taiwan |
|
License plate recognition system |
|
20,400 |
|
20,400 |
|
2,040 |
|
51 |
|
18,711
|
|
(3,215 |
) |
(1,640 |
) |
Subsidiary |
| |||||||||||||||||||
|
|
|
|
New Prospect Investments Holdings Ltd. (B.V.I.) |
|
British Virgin Islands |
|
Investment |
|
|
|
|
|
|
|
100 |
|
|
|
|
|
|
|
Subsidiary |
| |||||||||||||||||||
1 |
|
Senao International Co., Ltd. |
|
Senao Networks, Inc. |
|
Taiwan |
|
Telecommunication facilities manufactures and sales. |
|
206,190 |
|
206,190 |
|
16,824 |
|
41 |
|
372,310 |
|
72,968 |
|
29,626 |
|
Equity-method investee |
| |||||||||||||||||||
|
|
|
|
Senao International (Samoa) Holding Ltd. |
|
Samoa Islands |
|
International investment. |
|
US$ |
706,763 |
) |
US$ |
466,517 (15,875 |
) |
23,975 |
|
100 |
|
US$ |
503,403 (17,047 (Notes 4) |
) |
US$ |
(41,761 ((1,406 |
) )) |
US$ |
(41,777 (Notes 4) |
) )) |
Subsidiary |
| ||||||||||||||
2 |
|
CHIEF Telecom Inc. |
|
Unigate Telecom Inc. |
|
Taiwan |
|
Telecommunication and internet service. |
|
2,000 |
|
2,000 |
|
200 |
|
100 |
|
1,774 (Note 4) |
|
(31 |
) |
(31) (Note 4) |
|
Subsidiary |
| |||||||||||||||||||
|
|
|
|
Chief International Corp. |
|
Samoa Islands |
|
Network communication and engine room hiring |
|
US$ |
6,068 (200 |
) |
US$ |
6,068 (200 |
) |
200 |
|
100 |
|
US$ |
10,952 (371 (Note 4) |
) |
US$ |
1,005 (34 |
) |
US$ |
1,005 (34 (Note 4) |
) |
Subsidiary |
| ||||||||||||||
3 |
|
Chunghwa System Integrated Co., Ltd. |
|
Concord Technology Co., Ltd. |
|
Brunei |
|
Providing advanced business solutions to telecommunications |
|
US$ |
47,321 (1,500 |
) |
US$ |
31,973 |
) |
1,500 |
|
100 |
|
RMB |
20,407 (4,362 (Note 4 |
) ) |
RMB |
779 (166 |
) |
US$ |
779 (166 |
) |
Subsidiary |
| ||||||||||||||
7 |
|
Spring House Entertainment Tech. Inc. |
|
Ceylon Innovation Co., Ltd |
|
Taiwan |
|
International trading, general advertisement and book publishment service |
|
1,000 |
|
1,000 |
|
|
|
100 |
|
942 (Note 4) |
|
(12 |
) |
(12 |
) |
Subsidiary |
| |||||||||||||||||||
8 |
|
Light Era Development Co., Ltd. |
|
Yao Yong Real Property co., Ltd. |
|
Taiwan |
|
Real estate leasing business |
|
2,793,667 |
|
2,793,667 |
|
83,290 |
|
100 |
|
2,837,303 (Note 4) |
|
13,281 |
|
9,221 (Note 4) |
|
Subsidiary |
| |||||||||||||||||||
9 |
|
Chunghwa Telecom Singapore Pte., Ltd. |
|
ST-2 Satellite Ventures Pte., Ltd. |
|
Singapore |
|
Operation of ST-2 telecommunication satellite |
|
SG$ |
409,061 |
) |
SG$ |
409,061 (18,102 |
) |
18,102 |
|
38 |
|
SG$ |
490,707 (20,890 |
) |
SG$ |
65,478 (2,789 |
) |
SG$ |
24,967 (1,063 |
) |
Equity-method investee |
| ||||||||||||||
14 |
|
Chunghwa Investment Co., Ltd. |
|
Chunghwa Precision Test Tech Co., Ltd. |
|
Taiwan |
|
Semiconductor testing components and printed circuit board industry production and marketing of electronic products |
|
91,875 |
|
91,875 |
|
10,317 |
|
53 |
|
124,047 (Note 4) |
|
4,923 |
|
2,619 (Note 4) |
|
Subsidiary |
| |||||||||||||||||||
|
|
|
|
Chunghwa Investment Holding Co., Ltd. |
|
Burnei |
|
General investment |
|
US$
|
46,035 (1,432 |
) |
US$ |
34,483 (1,043 |
) |
1,432 |
|
100 |
|
21,214 (Note 4) |
|
(1,363
|
)
|
(1,363 (Note 4) |
) |
Subsidiary |
| |||||||||||||||||
|
|
|
|
Panda Monium Company Ltd. |
|
Cayman |
|
The production of animation |
|
US$ |
20,000 (602 |
) |
US$ |
20,000 (602 |
) |
602 |
|
43 |
|
|
|
|
|
|
|
Equity-method investee |
| |||||||||||||||||
|
|
|
|
CHIEF Telecom Inc. |
|
Taiwan |
|
Telecommunication and internet service |
|
20,000 |
|
20,000 |
|
2,000 |
|
4 |
|
28,676 (Note 4) |
|
47,749 |
|
1,748 (Note 4) |
|
Equity-method investee |
| |||||||||||||||||||
|
|
|
|
Senao International Co., Ltd. |
|
Taiwan |
|
Selling and maintaining mobile phones and its peripheral products |
|
49,731 |
|
49,731 |
|
1,001 |
|
|
|
50,278 (Note 4) |
|
516,142 |
|
1,519 (Note 4) |
|
Equity-method investee |
| |||||||||||||||||||
18 |
|
Concord Technology Co., Ltd. |
|
Glory Network System Service (Shanghai) Co., Ltd. |
|
China |
|
Providing advanced business solutions to telecommunications |
|
US$ |
47,321 (1,500 |
) |
US$ |
31,973 (1,010 |
) |
1,500 |
|
100 |
|
RMB |
20,407 (4,362 (Note 4) |
) |
RMB |
(779 ((166 |
) )) |
RMB |
(779) ((166 (Note 4) |
)) |
Subsidiary |
| ||||||||||||||
20 |
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
Chunghwa Precision Test Tech. USA Corporation |
|
United States |
|
Semiconductor testing components and printed circuit board industry production and marketing of electronic products |
|
US$ |
12,504 (400 |
) |
US$ |
12,504 (400 |
) |
400 |
|
100 |
|
US$ |
9,820 (333 (Note 4) |
) |
US$ |
1,692 (57 |
) |
US$ |
1,692 (57 (Note 4) |
) |
Subsidiary |
| ||||||||||||||
22 |
|
Senao International (Samoa) Holding Ltd. |
|
Senao International HK Limited. |
|
Hong Kong |
|
Sales of communication business |
|
US$ |
684,352 (23,260 |
) |
US$ |
444,712 (15,180 |
) |
23,260 |
|
100 |
|
US$ |
481,192 (16,295 (Note 4) |
) |
US$ |
(42,476 ((1,430 |
) )) |
US$ |
(42,476 ((1,430 |
) )) |
Subsidiary |
| ||||||||||||||
|
|
|
|
HopeTech Technologies Limited |
|
Hong Kong |
|
Information technology and telecommunication products sales. |
|
US$ |
21,177 (675 |
) |
US$ |
21,177 (675 |
) |
5,240 |
|
45 |
|
US$ |
21,694 (735 |
) |
US$ |
1,607 (54 |
) |
US$ |
723 (24 |
) |
Equity-method investee |
| ||||||||||||||
(Continued)
|
|
|
|
|
|
|
|
|
|
Original Investment Amount |
|
Balance as of March 31, 2012 |
|
|
|
|
|
|
| |||||||||||
No. |
|
Investor Company |
|
Investee Company |
|
Location |
|
Main Businesses and Products |
|
March 31, 2012 |
|
December 31, |
|
Shares |
|
Percentage of |
|
Carrying Value |
|
Net Income |
|
Recognized Gain |
|
Note |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
24 |
|
Chunghwa Investment Holding Co., Ltd. |
|
CHI One Investment Co., Limited |
|
Hong Kong |
|
General investment |
|
$ HK$ |
26,035 (6,520 |
) |
$ HK$ |
14,483 (3,924 |
) |
6,520 |
|
100 |
|
$ |
10,981 |
) |
$ |
(1,363 |
) )) |
$ |
(1,363 |
) )) |
Subsidiary |
|
26 |
|
CHI One Investment Co., Limited |
|
Xiamen Sertec Business Technology Co., Ltd. |
|
China |
|
Customer Services and platform rental activities |
|
RMB |
25,414 (5,390 |
) |
RMB |
13,862 (2,936 |
) |
|
|
49 |
|
RMB |
10,793 |
) |
RMB |
(2,781 |
) ) |
RMB |
(1,363 |
) ) |
Equity-method investee |
|
23 |
|
Senao International HK Limited. |
|
Senao Trading (Fujian) Co., Ltd. |
|
China |
|
Information technology services and sale of communication products |
|
US$ |
175,972 (6,000 |
) |
US$ |
116,821 (4,000 |
) |
|
|
100 |
|
US$ |
119,476 (4,046 |
) |
US$ |
(11,320 |
) )) |
US$ |
(11,320 ((381 (Note 4) |
) )) |
Subsidiary |
|
|
|
|
|
Senao International Trading (Shanghai) Co., Ltd. |
|
China |
|
Information technology services and sale of communication products |
|
US$ |
178,713 (6,000 |
) |
US$ |
148,413 (5,000 |
) |
|
|
100 |
|
US$ |
91,771 (3,108 |
) |
US$ |
(16,058
|
) )) |
US$ |
(16,058 ((541 |
) )) |
Subsidiary |
|
|
|
|
|
Senao International Trading (Shanghai) Co., Ltd.
|
|
China |
|
Information technology services and sale of communication products |
|
US$ |
57,860 (2,000 |
) |
US$ |
57,860 |
) |
|
|
100 |
|
US$ |
56,848 (1,925 |
) |
US$ |
(1,115
|
) )) |
US$ |
(1,115 ((38 |
) )) |
Subsidiary (Note 5) |
|
|
|
|
|
Semao International Trading (Jiangsu) Co., Ltd. |
|
China |
|
Information technology services and sale of communication products |
|
US$ |
263,736 (9,000 |
) |
US$ |
115,971 (4,000 |
) |
|
|
100 |
|
US$ |
210,157 (Note 4) |
) |
US$ |
(13,956
|
) )) |
US$ |
(13,956 (Note 4) |
) )) |
Subsidiary |
|
27 |
|
Prime Asia Investments Group, Ltd. (B.V.I.) |
|
Chunghwa Hsingta Co., Ltd. |
|
Hong Kong |
|
Investment |
|
RMB |
206,089 (45,448 |
) |
RMB |
206,089 (45,448 |
) |
|
|
100 |
|
RMB |
175,125 (Note 4) |
) |
RMB |
(8,214
|
) )) |
RMB |
(8,214 (Note 4) |
) )) |
Subsidiary |
|
29 |
|
Chunghwa Hsingta Company Ltd. |
|
Chunghwa Telecom (China) Co., Ltd. |
|
China |
|
Planning and design of energy conservation and software and hareware system services, and integration of information system |
|
RMB |
177,176 (39,376 |
) |
RMB |
177,176 (39,376 |
) |
|
|
100 |
|
RMB |
147,604 (Note 4) |
) |
RMB |
(7,257
|
) )) |
RMB |
(7,257 (Note 4) |
) )) |
Subsidiary |
|
|
|
|
|
Jiangsu Zhenhua Information Technology Company, LLC |
|
China |
|
Intelligent energy conserving and intelligent building services |
|
RMB |
28,912 (6,072 |
) |
|
|
|
|
75 |
|
RMB |
27,521 (Note 4) |
) |
RMB |
(1,275
|
) )) |
RMB |
(957 (Note 4) |
) )) |
Subsidiary |
|
Note 1: The equity in net income (loss) of investees was based on unreviewed financial statements, except the equity in earnings of Senao International Co., Ltd. and its subsidiaries, and HopeTech Technologies Limited.
Note 2: The equity in net income (loss) of investees includes amortization of differences between the investment cost and net value and elimination of unrealized transactions.
Note 3: New Prospect Investments Holdings Ltd. (B.V.I.) was incorporated in March 2006, but has not yet begun operation as of March 31, 2012. Chunghwa has 100% ownership right in an amount of US$1 in the holding company.
Note 4: The amount was eliminated upon consolidation.
Note 5: The English name is the same as the above entity; however, the Chinese names included in the respective Articles of Incorporations are different.
(concluded)
TABLE 7
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
INVESTMENT IN MAINLAND CHINA
THREE MONTHS ENDED MARCH 31, 2012
(Amounts in Thousands of New Taiwan Dollars, in Thousands of U.S. Dollars)
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
Total Amount |
|
Investment |
|
Outflow of |
|
Investment Flows |
|
Outflow of |
|
% Ownership |
|
Investment |
|
Carrying Value |
|
Accumulated |
| ||||||||||
Investee |
|
Main Businesses and Products |
|
Capital |
|
Type |
|
January 1, 2012 |
|
Outflow |
|
Inflow |
|
March 31, 2012 |
|
Investment |
|
(Note 2) |
|
March 31, 2012 |
|
March 31, 2012 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Glory Network System Service (Shanghai) Co., Ltd. |
|
Providing advanced business solutions to telecommunications |
|
$ |
47,321 |
|
Note 1 |
|
$ |
31,973 |
|
$ |
15,348 |
|
$ |
|
|
$ |
47,321 |
|
100 |
% |
$ |
(779 |
) |
$ |
20,407 |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Xiamen Sertec Business Technology Co., Ltd. |
|
Customer services and platform rental activities |
|
51,552 |
|
Note 1 |
|
13,862 |
|
11,552 |
|
|
|
25,414 |
|
49 |
% |
(1,363 (Note 7) |
) |
10,793 (Note 7) |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senao Trading (Fujian) Co., Ltd. |
|
Information technology services and sale of communication products |
|
175,972 |
|
Note 1 |
|
116,821 |
|
59,151 |
|
|
|
175,972 |
|
100 |
% |
(11,320 (Note 7) |
) |
119,476 (Note 7) |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senao International Trading (Shanghai) Co., Ltd. |
|
Information technology services and sale of communication products |
|
178,713 |
|
Note 1 |
|
148,413 |
|
30,300 |
|
|
|
178,713 |
|
100 |
% |
(16,058 (Note 7) |
) |
91,771 (Note 7) |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senao International Trading (Shanghai) Co., Ltd. (Note 8) |
|
Information technology services and sale of communication products |
|
57,860 |
|
Note 1 |
|
57,860 |
|
|
|
|
|
57,860 |
|
100 |
% |
(1,115 (Note 7) |
) |
56,848 (Note 7) |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senao International Trading (Jiangsu) Co., Ltd. |
|
Information technology services and sale of communication products |
|
263,736 |
|
Note 1 |
|
115,971 |
|
147,765 |
|
|
|
263,736 |
|
100 |
% |
(13,956 (Note 7) |
) |
210,157 (Note 7) |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Chunghwa Telecom (China) Co., Ltd. |
|
Energy conserving and providing installation, design and maintenance services |
|
177,176 |
|
Note 1 |
|
177,176 |
|
|
|
|
|
177,176 |
|
100 |
% |
(7,257 (Note 7) |
) |
147,604 (Note 7) |
|
|
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Jiangsu Zhenhua Information Technology Company, LLC |
|
Intelligent energy conserving and intelligent building services |
|
38,549 |
|
Note 1 |
|
28,912 |
|
|
|
|
|
28,912 |
|
75 |
% |
(957 (Note 7) |
) |
27,521 (Note 7) |
|
|
| ||||||||
(Continued)
Accumulated Investment in |
|
Investment Amounts Authorized |
|
Upper Limit on Investment |
| ||||||
Mainland China as of |
|
by Investment Commission, |
|
Stipulated by Investment |
| ||||||
March 31, 2012 |
|
MOEA |
|
Commission, MOEA |
| ||||||
|
|
|
|
|
| ||||||
$ |
47,321 |
|
$ |
48,169 |
|
$ |
410,739 |
| |||
US$ |
(1,500 |
) |
US$ |
(1,500 |
) |
(Note 3) |
| ||||
25,414 |
|
79,882 |
|
1,308,565 |
| ||||||
US$ |
(820 |
) |
US$ |
(2,500 |
) |
(Note 4) |
| ||||
676,281 |
|
676,281 |
|
3,411,200 |
| ||||||
US$ |
(23,000 |
) |
US$ |
(23,000 |
) |
(Note 5) |
| ||||
177,176 |
|
177,176 |
|
229,818,425 |
| ||||||
US$ |
(6,000 |
) |
US$ |
(6,000 |
) |
(Note 6) |
| ||||
28,912 |
|
141,077 |
|
229,818,425 |
| ||||||
US$ |
(960 |
) |
US$ |
(4,800 |
) |
(Note 6) |
| ||||
Note 1: Investments were through an holding company registered in a third region.
Note 2: Recognition of investment gains (losses) was calculated based on the investees unreviewed financial statements, except the recognition of investment gains (losses) of Senao Trading (Fujian) Co., Ltd., Senao International Trading (Shanghai) Co., Ltd., Senao International Trading (Shanghai) Co., Ltd. (Note 8), and Senao International Trading (Jiangsu) Co., Ltd. was calculated based on the reviewed financial statements.
Note 3: The amount was calculated based on the consolidated net assets value of Chunghwa System Integration Co., Ltd.
Note 4: The amount was calculated based on the consolidated net assets value of Chunghwa Investment Co., Ltd.
Note 5: The amount was calculated based on the consolidated net assets value of Senao International Co., Ltd.
Note 6: The amount was calculated based on the consolidated net assets value of Chunghwa Telecom Co., Ltd.
Note 7: The amount was eliminated upon consolidation.
Note 8: The English name is the same as the above entity; however, the Chinese names included in the respective Articles of Incorporations are different.
(Concluded)
TABLE 8
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
|
|
Transaction Details |
| |||||||
Year |
|
No. |
|
Company Name |
|
Related Party |
|
Nature of |
|
Financial Statement Account |
|
Amount |
|
Payment Terms |
|
% to |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
2012 |
|
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Senao International Co., Ltd. |
|
a |
|
Accounts receivable |
|
$ |
5,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
1,137,849 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accrued custodial receipts |
|
296,437 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Amounts collected in trust for others |
|
355,862 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
76,366 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
2,391,632 |
|
|
|
4 |
| |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
8,378 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
1,208 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
a |
|
Accounts receivable |
|
32,918 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
48,044 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Amounts collected in trust for others |
|
4,239 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
61,981 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
87,043 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
333 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
a |
|
Accounts receivable |
|
23 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
3 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
618 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Non-operating income and gains |
|
68 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa International Yellow Pages Co., Ltd. |
|
a |
|
Accounts receivable |
|
2,788 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
16,677 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Amounts collected in trust for others |
|
22,850 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accrued custodial payments |
|
14,383 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
3,513 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
27,025 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa System Integration Co., Ltd |
|
a |
|
Accounts receivable |
|
1,308 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accrued custodial receipts |
|
9,655 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
325,321 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
2,221 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Non-operating income and gains |
|
26 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
235,111 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
243,695 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Work in process |
|
1,876 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Spare parts |
|
1,148 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Intangible assets |
|
35,439 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Other deferred expenses |
|
1,693 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
14,030 |
|
|
|
|
| |
(Continued)
|
|
|
|
|
|
|
|
|
|
Transaction Details |
| |||||||
Year |
|
No. |
|
Company Name |
|
Related Party |
|
Nature of |
|
Financial Statement Account |
|
Amount |
|
Payment Terms |
|
% to |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Global Inc. |
|
a |
|
Accounts receivable |
|
$ |
19,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
65,671 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
19,378 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
66,108 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
23,805 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
14,481 |
|
|
|
|
| |
|
|
|
|
|
|
Donghwa Telecom Co., Ltd. |
|
a |
|
Accounts receivable |
|
31,499 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
81,273 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
31,136 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
31,818 |
|
|
|
|
| |
|
|
|
|
|
|
Spring House Entertainment Inc. |
|
a |
|
Accounts receivable |
|
685 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
4,146 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Amounts collected in trust for others |
|
35,070 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
3,231 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Non-operating income and gains |
|
1 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
7,271 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
5 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Japan Co., Ltd. |
|
a |
|
Accounts receivable |
|
7,094 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
6,565 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
7,697 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
17,478 |
|
|
|
|
| |
|
|
|
|
|
|
Light Era Development Co., Ltd |
|
a |
|
Accounts payable |
|
278 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Amounts collected in trust for others |
|
1,696 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
627 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
91 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Singapore Pte., Ltd. |
|
a |
|
Accounts receivable |
|
3,520 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
4,035 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
14,559 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
9,836 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Investment Co., Ltd. |
|
a |
|
Revenues |
|
49 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom (China) Co., Ltd. |
|
a |
|
Accounts payable |
|
852 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
2,598 |
|
|
|
|
| |
|
|
|
|
|
|
Smartfun Digital Co., Ltd. |
|
a |
|
Revenues |
|
377 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Vietnam Co., Ltd. |
|
a |
|
Accounts payable |
|
151 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
447 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Sochamp Technology Inc. |
|
a |
|
Accounts payable |
|
113 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
39 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
250 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 |
|
Senao International Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
1,208,541 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Other receivables |
|
285,156 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
14 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
302,121 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Deferred revenue |
|
36,899 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
2,363,097 |
|
|
|
4 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Details |
| |||||||
Year |
|
No. |
|
Company Name |
|
Related Party |
|
Nature of (Note 2) |
|
Financial Statement Account |
|
Amount (Note 5) |
|
Payment Terms |
|
% to Total Sales or (Note 4) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating income and gains |
|
$ |
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases |
|
62,486 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
13,880 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
1,208 |
|
|
|
|
| |
|
|
|
|
|
|
Spring House Entertainment Inc. |
|
c |
|
Revenues |
|
298 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
59 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa International Yellow Pages Co., Ltd. |
|
c |
|
Revenues |
|
90 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
94 |
|
|
|
|
| |
|
|
|
|
|
|
Light Era Development Co., Ltd |
|
c |
|
Revenues |
|
46 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
2 |
|
CHIEF Telecom Inc. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
50,606 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
24 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Other deferred expenses |
|
1,653 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
32,469 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
449 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
87,043 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
61,981 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
333 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
c |
|
Revenues |
|
23 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
8 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Singapore Pte., Ltd. |
|
c |
|
Accounts receivable |
|
3,544 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
1,385 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
6,078 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
2,991 |
|
|
|
|
| |
|
|
|
|
|
|
Donghwa Telecom Co., Ltd. |
|
c |
|
Accounts receivable |
|
70 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
200 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Japan Co., Ltd. |
|
c |
|
Accounts payable |
|
265 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
476 |
|
|
|
|
| |
|
|
|
|
|
|
Yao Yong Real Property Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
21,695 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
3 |
|
Chunghwa System Integration Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
325,321 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
10,963 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Deferred revenue |
|
146,965 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
665,927 |
|
|
|
1 |
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
2,247 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
14,030 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
c |
|
Operating costs and expenses |
|
23 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
8 |
|
|
|
|
| |
|
|
|
|
|
|
Spring House Entertainment Inc. |
|
c |
|
Accounts receivable |
|
123 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
349 |
|
|
|
|
| |
|
|
|
|
|
|
Light Era Development Co., Ltd |
|
c |
|
Revenues |
|
45 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
4 |
|
Chunghwa International Yellow Pages Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
29,429 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accrued custodial receipts |
|
9,205 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
893 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
1,528 |
|
|
|
|
|
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction Details |
| |||||||
Year |
|
No. (Note 1) |
|
Company Name |
|
Related Party |
|
Nature of (Note 2) |
|
Financial Statement Account |
|
Amount (Note 5) |
|
Payment Terms (Note 3) |
|
% to Total Sales or (Note 4) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Amounts collected in trust for others |
|
$ |
14,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
1,260 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
27,025 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
3,513 |
|
|
|
|
| |
|
|
|
|
|
|
Senao International Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
90 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
94 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
5 |
|
Chunghwa Telecom Global, Inc. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
65,665 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
6 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
1,402 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
17,654 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
89,913 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
19,378 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
14,481 |
|
|
|
|
| |
|
|
|
|
|
|
Donghwa Telecom Co., Ltd. |
|
c |
|
Revenues |
|
964 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
964 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
c |
|
Accounts receivable |
|
136 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
102 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
7 |
|
Spring House Entertainment Inc. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
39,216 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
685 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
7,271 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
3,232 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
5 |
|
|
|
|
| |
|
|
|
|
|
|
Senao International Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
298 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
59 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
c |
|
Accounts payable |
|
123 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
349 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
6 |
|
Donghwa Telecom Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
22,212 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
59,061 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
9,224 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
22,275 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
31,818 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
31,136 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
c |
|
Accounts payable |
|
70 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
200 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Global, Inc. |
|
c |
|
Accounts payable |
|
964 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
964 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
8 |
|
Light Era Development Co., Ltd |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
1,696 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
278 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
627 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
91 |
|
|
|
|
| |
|
|
|
|
|
|
Senao International Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
46 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
45 |
|
|
|
|
|
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Transaction Details |
| |||||||
Year |
|
No. (Note 1) |
|
Company Name |
|
Related Party |
|
Nature of (Note 2) |
|
Financial Statement Account |
|
Amount (Note 5) |
|
Payment Terms |
|
% to Total Sales or (Note 4) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
9 |
|
Chunghwa Telecom Singapore Pte., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
$ |
4,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
3,520 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
9,836 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
14,559 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
c |
|
Accounts receivable |
|
1,385 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
3,544 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
2,991 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
6,078 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
10 |
|
Chunghwa Telecom Japan Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
6,565 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
6,209 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
885 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
17,478 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
7,697 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
c |
|
Accounts receivable |
|
265 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
476 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
14 |
|
Chunghwa Investment Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Operating costs and expenses |
|
49 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
20 |
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
3 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
23 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
686 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Global, Inc. |
|
c |
|
Accounts payable |
|
136 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
102 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
25 |
|
Yao Yong Real Property Co., Ltd. |
|
CHIEF Telecom Inc. |
|
c |
|
Revenues |
|
21,695 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
30 |
|
Chunghwa Telecom (China) Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
852 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
2,598 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
31 |
|
Smartfun Digital Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Operating costs and expenses |
|
377 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
32 |
|
Chunghwa Telecom Vietnam Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
151 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
447 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
33 |
|
Chunghwa Sochamp Technology Inc. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Operating costs and expenses |
|
39 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
113 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
250 |
|
|
|
|
| |
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Transaction Details |
| |||||||
Year |
|
No. (Note 1) |
|
Company Name |
|
Related Party |
|
Nature of (Note 2) |
|
Financial Statement Account |
|
Amount (Note 5) |
|
Payment Terms |
|
% to Total Sales or (Note 4) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
0 |
|
Chunghwa Telecom Co., Ltd. |
|
Senao International Co., Ltd. |
|
a |
|
Accounts receivable |
|
$ |
319,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
836,679 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Amounts collected in trust for others |
|
235,102 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
305,409 |
|
|
|
1 |
| |
|
|
|
|
|
|
|
|
|
|
Non-operating income and gains |
|
5 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
1,650,294 |
|
|
|
4 |
| |
|
|
|
|
|
|
|
|
|
|
Work in process |
|
266 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
1,690 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
a |
|
Accounts receivable |
|
29,711 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
43,349 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Amounts collected in trust for others |
|
591 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
76,770 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
74,540 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
333 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa International Yellow Pages Co., Ltd. |
|
a |
|
Accounts receivable |
|
20,849 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
28,252 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Amounts collected in trust for others |
|
4,747 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
3,160 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Work in process |
|
1,301 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
6,526 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
a |
|
Accounts receivable |
|
12,907 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
123,698 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Payables to contractors |
|
53 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
2,098 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Non-operating income and gains |
|
305 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
67,488 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
133,468 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Work in process |
|
59 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Intangible assets |
|
7,122 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
21,566 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Global, Inc. |
|
a |
|
Accounts receivable |
|
25,206 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
45,039 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Amounts collected in trust for others |
|
201 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
24,216 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
44,907 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
6,069 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
14,429 |
|
|
|
|
| |
|
|
|
|
|
|
Donghwa Telecom Co., Ltd. |
|
a |
|
Accounts receivable |
|
36,671 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
61,634 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
25,753 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
15,522 |
|
|
|
|
| |
|
|
|
|
|
|
Spring House Entertainment Inc. |
|
a |
|
Accounts receivable |
|
14,167 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
18,637 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
2,237 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
7,167 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
5 |
|
|
|
|
|
(Continued)
|
|
|
|
|
|
|
|
|
|
Transaction Details |
| |||||||
Year |
|
No. (Note 1) |
|
Company Name |
|
Related Party |
|
Nature of (Note 2) |
|
Financial Statement Account |
|
Amount (Note 5) |
|
Payment Terms |
|
% to Total Sales or (Note 4) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Japan Co., Ltd. |
|
a |
|
Accounts receivable |
|
$ |
8,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
5,015 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
10,635 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
11,110 |
|
|
|
|
| |
|
|
|
|
|
|
Light Era Development Co., Ltd |
|
a |
|
Accounts payable |
|
12,447 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
98,668 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Singapore Co., Ltd. |
|
a |
|
Accounts receivable |
|
3,770 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
2,219 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
10,657 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
7,809 |
|
|
|
|
| |
|
|
|
|
|
|
InfoExplorer Co., Ltd. |
|
a |
|
Accounts receivable |
|
152 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
30,881 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
752 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
38,364 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Work in process |
|
1,192 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
1,225 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
a |
|
Accounts receivable |
|
488 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
475 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
468 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Non-operating income and gains |
|
25 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
1 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
157 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Investment Co., Ltd. |
|
a |
|
Revenues |
|
3 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 |
|
Senao International Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
825,482 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Other receivables |
|
246,299 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
108,547 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Other payables |
|
211,062 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
14,869 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
1,635,677 |
|
|
|
4 |
| |
|
|
|
|
|
|
|
|
|
|
Non-operating income and gains |
|
14 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
305,409 |
|
|
|
1 |
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
1,690 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Non-operating costs and expenses |
|
5 |
|
|
|
|
| |
|
|
|
|
|
|
Spring House Entertainment Inc. |
|
c |
|
Revenues |
|
290 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa International Yellow Pages Co., Ltd. |
|
c |
|
Revenues |
|
19 |
|
|
|
|
| |
|
|
|
|
|
|
InfoExplorer Co., Ltd. |
|
c |
|
Revenues |
|
152 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
c |
|
Revenues |
|
1 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
2 |
|
CHIEF Telecom Inc. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
43,686 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
254 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
29,262 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
449 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
74,540 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
76,770 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
333 |
|
|
|
|
| |
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Transaction Details |
| |||||||
Year |
|
No. (Note 1) |
|
Company Name |
|
Related Party |
|
Nature of |
|
Financial Statement Account |
|
Amount (Note 5) |
|
Payment Terms (Note 3) |
|
% to Total Sales or (Note 4) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Senao International Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
$ |
1 |
|
|
|
|
|
|
|
|
|
|
|
Chunghwa Telecom Singapore Co., Ltd. |
|
c |
|
Accounts receivable |
|
8 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
11 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
8 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
11 |
|
|
|
|
| |
|
|
|
|
|
|
Donghwa Telecom Co., Ltd. |
|
c |
|
Accounts receivable |
|
77 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
214 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Japan Co., Ltd. |
|
c |
|
Accounts payable |
|
168 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
226 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Global, Inc. |
|
c |
|
Operating costs and expenses |
|
18 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
c |
|
Revenues |
|
23 |
|
|
|
|
| |
|
|
|
|
|
|
Yao Yong Real Property Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
21,695 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
3 |
|
Chunghwa System Integration Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
123,570 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
181 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
12,907 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
208,137 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
2,403 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
21,566 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
c |
|
Operating costs and expenses |
|
23 |
|
|
|
|
| |
|
|
|
|
|
|
InfoExplorer Co., Ltd. |
|
c |
|
Accounts receivable |
|
1,935 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
86 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
2,002 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
82 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
15 |
|
|
|
|
| |
|
|
|
|
|
|
Light Era Development Co., Ltd |
|
c |
|
Revenues |
|
48 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
c |
|
Revenues |
|
70 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
4 |
|
Chunghwa International Yellow Pages Co., |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
13,836 |
|
|
|
|
| |
|
|
|
|
Ltd. |
|
|
|
|
|
Accrued custodial receipts |
|
18,219 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
944 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
1,815 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
2,826 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Amounts collected in trust for others |
|
16,208 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
6,526 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
3,160 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Deferred revenue |
|
1,301 |
|
|
|
|
| |
|
|
|
|
|
|
Senao International Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
19 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
5 |
|
Chunghwa Telecom Global, Inc. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
45,227 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
13 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
24,464 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
515 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accrued expenses |
|
227 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
50,976 |
|
|
|
|
| |
(Continued)
|
|
|
|
|
|
|
|
|
|
Transaction Details |
| |||||||
Year |
|
No. |
|
Company Name |
|
Related Party |
|
Nature of |
|
Financial Statement Account |
|
Amount |
|
Payment Terms |
|
% to |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
$ |
24,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
14,429 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
c |
|
Accounts receivable |
|
136 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
406 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
c |
|
Revenues |
|
18 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
7 |
|
Spring House Entertainment Inc. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
18,637 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accrued expenses |
|
501 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
13,666 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
7,167 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
2,237 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
5 |
|
|
|
|
| |
|
|
|
|
|
|
Senao International Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
290 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
6 |
|
Donghwa Telecom Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
41,752 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
19,882 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
18,709 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
17,962 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
15,522 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
25,753 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
c |
|
Accounts payable |
|
77 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
214 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Singapore Co., Ltd. |
|
c |
|
Accounts payable |
|
821 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
1,223 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
8 |
|
Light Era Development Co., Ltd |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
11,926 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses |
|
521 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
98,668 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
48 |
|
|
|
|
| |
|
|
|
|
|
|
InfoExplorer Co., Ltd. |
|
c |
|
Revenues |
|
2,587 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Non-operating costs and expenses |
|
4 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Customers deposits |
|
1,486 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
9 |
|
Chunghwa Telecom Singapore Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
2,219 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
3,770 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
7,809 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
10,657 |
|
|
|
|
| |
|
|
|
|
|
|
Donghwa Telecom Co., Ltd. |
|
c |
|
Accounts receivable |
|
821 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
1,223 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
c |
|
Accounts receivable |
|
11 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
8 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
11 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
8 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Japan Co., Ltd. |
|
c |
|
Prepaid expenses |
|
941 |
|
|
|
|
| |
(Continued)
|
|
|
|
|
|
|
|
|
|
Transaction Details |
| |||||||
Year |
|
No. |
|
Company Name |
|
Related Party |
|
Nature of |
|
Financial Statement Account |
|
Amount |
|
Payment Terms |
|
% to |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
11 |
|
|
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
$ |
30,881 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
152 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
39,556 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
752 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
1,225 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
c |
|
Accounts receivable |
|
86 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
1,935 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
82 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
2,002 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
15 |
|
|
|
|
| |
|
|
|
|
|
|
Light Era Development Co., Ltd |
|
c |
|
Non-operating income and gains |
|
4 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
2,587 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
1,486 |
|
|
|
|
| |
|
|
|
|
|
|
Senao International Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
152 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
10 |
|
Chunghwa Telecom Japan Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Accounts receivable |
|
5,015 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
8,675 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Advances from customers |
|
274 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
11,110 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
10,635 |
|
|
|
|
| |
|
|
|
|
|
|
CHIEF Telecom Inc. |
|
c |
|
Accounts receivable |
|
168 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Revenues |
|
226 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Singapore Co., Ltd. |
|
c |
|
Advances from customers |
|
941 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
14 |
|
Chunghwa Investment Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Operating costs and expenses |
|
3 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
20 |
|
Chunghwa Precision Test Tech. Co., Ltd. |
|
Chunghwa Telecom Co., Ltd. |
|
b |
|
Prepaid expenses |
|
475 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
472 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accrued expenses |
|
16 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Non-operating income and gains |
|
1 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
493 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Refundable deposits |
|
157 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa Telecom Global, Inc. |
|
c |
|
Accounts payable |
|
136 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses |
|
406 |
|
|
|
|
| |
|
|
|
|
|
|
Chunghwa System Integration Co., Ltd. |
|
c |
|
Operating costs and expenses |
|
70 |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
25 |
|
Yao Yong Real Property Co., Ltd. |
|
CHIEF Telecom Inc. |
|
c |
|
Revenues |
|
21,695 |
|
|
|
|
| |
Note 1: Significant transactions between the Company and its subsidiaries or amount subsidiaries are numbered as follows:
a. 0 for the Company.
b. Subsidiaries are numbered from 1.
(Continued)
Note 2: Related party transactions are divided into three categories as follows:
a. The Company to subsidiaries.
b. Subsidiaries to the Company.
c. Subsidiaries to subsidiaries.
Note 3: Transaction terms were determined in accordance with mutual agreements.
Note 4: For assets and liabilities, amount is shown as a percentage to consolidated total assets as of March 31, 2012, while revenues, costs and expenses are shown as a percentage to consolidated total operating revenues for the three months ended March 31, 2012.
Note 5: The amount was eliminated upon consolidation.
(Concluded)
TABLE 9
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
SEGMENT INFORMATION
THREE MONTHS ENDED MARCH 31, 2012 AND 2011
(Amount in Thousands of New Taiwan Dollars)
|
|
Domestic Fixed |
|
Mobile |
|
Internet Business |
|
International |
|
Others |
|
Adjustment |
|
Total |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Three months ended March 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenues from external customers |
|
$ |
18,998,403 |
|
$ |
25,581,549 |
|
$ |
6,186,001 |
|
$ |
3,643,905 |
|
$ |
1,008,436 |
|
$ |
|
|
$ |
55,418,294 |
|
Intersegment revenues (Note 2) |
|
$ |
4,096,960 |
|
$ |
1,661,560 |
|
$ |
670,616 |
|
$ |
523,129 |
|
$ |
284,875 |
|
$ |
(7,237,140 |
) |
$ |
|
|
Segment income before tax |
|
$ |
4,465,817 |
|
$ |
5,178,112 |
|
$ |
2,235,330 |
|
$ |
113,195 |
|
$ |
(159,581 |
) |
$ |
|
|
$ |
11,832,873 |
|
Total assets |
|
$ |
227,957,496 |
|
$ |
65,080,192 |
|
$ |
19,999,970 |
|
$ |
25,062,019 |
|
$ |
111,295,128 |
|
$ |
|
|
$ |
449,394,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Three months ended March 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenues from external customers |
|
$ |
19,200,760 |
|
$ |
22,843,551 |
|
$ |
6,081,948 |
|
$ |
3,793,884 |
|
$ |
554,888 |
|
$ |
|
|
$ |
52,475,031 |
|
Intersegment revenues (Note 2) |
|
$ |
3,726,226 |
|
$ |
1,449,844 |
|
$ |
385,797 |
|
$ |
388,699 |
|
$ |
92,143 |
|
$ |
(6,042,709 |
) |
$ |
|
|
Segment income before tax |
|
$ |
5,717,609 |
|
$ |
6,369,326 |
|
$ |
2,684,163 |
|
$ |
292,276 |
|
$ |
(626,954 |
) |
$ |
|
|
$ |
14,436,420 |
|
Total assets |
|
$ |
226,798,835 |
|
$ |
65,464,969 |
|
$ |
17,410,691 |
|
$ |
22,747,542 |
|
$ |
113,151,312 |
|
$ |
|
|
$ |
445,573,349 |
|
Note 1: The Company organizes its reporting segments based on types of organizational business. The five reporting segments are segregated as below: Domestic fixed communications business, mobile communications business, internet business, international fixed communications business and others.
· Domestic fixed communications business - the provision of local telephone services, domestic long distance telephone services, broadband access, and related services;
· Mobile communications business - the provision of mobile services, sales of mobile handsets and data cards, and related services;
· Internet business - the provision of HiNet services and related services;
· International fixed communications business - the provision of international long distance telephone services and related services;
· Others - the provision of non-Telecom Services, and the corporate related items not allocated to reportable segments.
Note 2: Represents intersegment revenues from goods and services, etc.
Exhibit 5
Chunghwa Telecom Co., Ltd. and
Subsidiaries
GAAP Reconciliations of
Consolidated Financial Statements for the
Three Months Ended March 31, 2012 and 2011
1. SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN ACCOUNTING POLICIES FOLLOWED BY THE COMPANY AND GENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN THE UNITED STATES OF AMERICA (UNAUDITED) (AMOUNTS IN MILLIONS OF NEW TAIWAN DOLLARS, UNLESS STATED OTHERWISE)
The following is a reconciliation of consolidated net income and stockholders equity under ROC GAAP as reported in the unaudited consolidated financial statements to unaudited consolidated net income and stockholders equity determined under US GAAP. For the descriptions of principal differences between ROC GAAP and US GAAP, please refer to Form 20-F filed with the Securities and Exchange Commission of the United States (the SEC) on April 20, 2012 (File No. 001-31731).
1) Net Income Reconciliation
|
|
Three Months Ended |
| ||||
|
|
March 31 |
| ||||
|
|
2011 |
|
2012 |
| ||
|
|
NT$ |
|
NT$ |
| ||
|
|
|
|
|
| ||
Consolidated net income based on ROC GAAP |
|
$ |
12,117 |
|
$ |
9,878 |
|
Adjustment: |
|
|
|
|
| ||
a. Property, plant and equipment |
|
|
|
|
| ||
1. Adjustments of gains and losses on disposal of property, plant and equipment |
|
207 |
|
98 |
| ||
2. Adjustments for depreciation expenses |
|
28 |
|
27 |
| ||
b. 10% tax on unappropriated earnings |
|
(1,209 |
) |
(928 |
) | ||
d. Revenues recognized from deferred one-time connection fees |
|
244 |
|
187 |
| ||
f. Defined benefit pension plan |
|
1 |
|
|
| ||
h. Income tax effect of US GAAP adjustments |
|
(60 |
) |
(47 |
) | ||
i. Noncontrolling interests of acquired subsidiary |
|
(2 |
) |
|
| ||
Other minor GAAP differences not listed above |
|
(16 |
) |
(15 |
) | ||
Net adjustment |
|
(807 |
) |
(678 |
) | ||
|
|
|
|
|
| ||
Consolidated net income based on US GAAP |
|
$ |
11,310 |
|
$ |
9,200 |
|
|
|
|
|
|
| ||
Attributable to |
|
|
|
|
| ||
Stockholders of the parent |
|
$ |
11,104 |
|
$ |
8,851 |
|
Noncontrolling interests |
|
206 |
|
349 |
| ||
|
|
|
|
|
| ||
|
|
$ |
11,310 |
|
$ |
9,200 |
|
|
|
|
|
|
| ||
Basic earnings per common share |
|
$ |
1.41 |
|
$ |
1.14 |
|
|
|
|
|
|
| ||
Diluted earnings per common share |
|
$ |
1.40 |
|
$ |
1.14 |
|
(Continued)
|
|
Three Months Ended |
| ||||
|
|
March 31 |
| ||||
|
|
2011 |
|
2012 |
| ||
|
|
NT$ |
|
NT$ |
| ||
|
|
|
|
|
| ||
Weighted-average number of common shares outstanding (in 1,000 shares) |
|
|
|
|
| ||
Basic |
|
7,886,737 |
|
7,757,447 |
| ||
Diluted |
|
7,914,120 |
|
7,782,833 |
| ||
|
|
|
|
|
| ||
Net income per pro forma equivalent ADSs |
|
|
|
|
| ||
Basic |
|
$ |
14.08 |
|
$ |
11.41 |
|
Diluted |
|
$ |
14.01 |
|
$ |
11.37 |
|
|
|
|
|
|
| ||
Weighted-average number of pro forma equivalent ADSs (in 1,000 shares) |
|
|
|
|
| ||
Basic |
|
788,674 |
|
775,745 |
| ||
Diluted |
|
791,412 |
|
778,283 |
|
(Concluded)
2) Stockholders Equity Reconciliation
|
|
March 31 |
| ||||
|
|
2011 |
|
2012 |
| ||
|
|
NT$ |
|
NT$ |
| ||
|
|
|
|
|
| ||
Total stockholders equity based on ROC GAAP |
|
$ |
380,834 |
|
$ |
383,031 |
|
Adjustment: |
|
|
|
|
| ||
a. Property, plant and equipment |
|
|
|
|
| ||
1. Capital surplus reduction |
|
(60,168 |
) |
(60,168 |
) | ||
2. Adjustment on depreciation expenses, and disposal gains and losses |
|
4,523 |
|
5,250 |
| ||
3. Adjustments of revaluation of land |
|
(5,765 |
) |
(5,763 |
) | ||
b. 10% tax on unappropriated earnings |
|
(5,626 |
) |
(5,470 |
) | ||
c. Deferred income of prepaid phone cards |
|
|
|
|
| ||
1. Capital surplus reduction |
|
(2,798 |
) |
(2,798 |
) | ||
2. Adjustment on deferred income recognition |
|
2,798 |
|
2,798 |
| ||
d. Revenues recognized from deferred one-time connection fees |
|
|
|
|
| ||
1. Capital surplus reduction |
|
(18,487 |
) |
(18,487 |
) | ||
2. Adjustment on deferred income recognition |
|
15,944 |
|
16,748 |
| ||
e. Share-based compensation |
|
|
|
|
| ||
1. Adjustment on capital surplus |
|
15,705 |
|
15,707 |
| ||
2. Adjustment on retained earnings |
|
(15,705 |
) |
(15,707 |
) | ||
f. 1. Accrual for accumulative other comprehensive income under pension guidance |
|
(609 |
) |
(1,115 |
) | ||
2. Accrual for pension cost |
|
(27 |
) |
(27 |
) | ||
g. Adjustment for pension plan upon privatization |
|
|
|
|
| ||
1. Adjustment on capital surplus |
|
1,782 |
|
1,782 |
| ||
2. Adjustment on retained earnings |
|
(9,665 |
) |
(9,665 |
) | ||
(Continued)
|
|
March 31 |
| ||||
|
|
2011 |
|
2012 |
| ||
|
|
NT$ |
|
NT$ |
| ||
|
|
|
|
|
| ||
h. Income tax effect of US GAAP adjustments |
|
$ |
4,716 |
|
$ |
4,503 |
|
i. Noncontrolling interests of acquired |
|
|
|
|
| ||
Subsidiary |
|
17 |
|
(21 |
) | ||
Other GAAP differences not listed above |
|
134 |
|
134 |
| ||
Net adjustment |
|
(73,231 |
) |
(72,299 |
) | ||
|
|
|
|
|
| ||
Total equity based on US GAAP |
|
$ |
307,603 |
|
$ |
310,732 |
|
|
|
|
|
|
| ||
Attributable to |
|
|
|
|
| ||
Stockholders of the parent |
|
$ |
303,348 |
|
$ |
306,215 |
|
Noncontrolling interests |
|
4,255 |
|
4,517 |
| ||
|
|
|
|
|
| ||
|
|
$ |
307,603 |
|
$ |
310,732 |
|
(Concluded)
3) Cash Flows Differences
The Company applies ROC SFAS No. 17, Statement of Cash Flows. Its objectives and principles are similar to those set out in U.S. standards. The principal differences between the two standards relate to classification. Cash flows from investing activities for changes in other assets, and cash flows from financing activities for changes in customers deposits and other liabilities are reclassified to operating activities under U.S. standards. In addition, the effect of change on consolidated subsidiaries, which was shown as a separate item under ROC standards, is reclassified to investing activities under U.S. standards
Note 1: There is a significant difference in the classification of items on the statements of income under ROC GAAP and US GAAP. This item includes:
Gains (losses) on disposal of property, plant and equipment and other assets, and impairment loss on property, plant and equipment and other assets, and loss arising from natural calamities:
· Under ROC GAAP: Such accounts are included in non-operating income (expenses).
· Under US GAAP: Such accounts are included in cost of revenues.
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