Exhibit 1
Chunghwa Telecom Co., Ltd.
Financial Statements for the
Years Ended December 31, 2011 and 2010 and
Independent Auditors’ Report
INDEPENDENT AUDITORS’ REPORT
The Board of Directors and Stockholders
Chunghwa Telecom Co., Ltd.
We have audited the accompanying balance sheets of Chunghwa Telecom Co., Ltd. as of December 31, 2011 and 2010, and the related statements of income, changes in stockholders’ equity and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the Rules Governing the Audit of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Those rules and standards required that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to first paragraph present fairly, in all material respects, the financial position of the Company as of December 31, 2011 and 2010, and the results of its operations and its cash flows for the years then ended 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 audited the consolidated financial statements of the Company and its subsidiaries as of and for the years ended December 31, 2011 and 2010, and have expressed a unqualified opinion on those consolidated financial statements.
/s/ DELOITTE & TOUCHE |
|
Deloitte & Touche |
|
Taipei, Taiwan |
|
The Republic of China |
|
March 27, 2012
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 audit such financial statements are those generally accepted and applied in the Republic of China.
For the convenience of readers, the auditors’ 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 auditors’ report and financial statements shall prevail.
CHUNGHWA TELECOM CO., LTD.
BALANCE SHEETS
DECEMBER 31, 2011 AND 2010
(Amounts in Thousands of New Taiwan Dollars, Except Par Value Data)
|
| 2011 |
| 2010 |
| ||||||
|
| Amount |
| % |
| Amount |
| % |
| ||
ASSETS |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
CURRENT ASSETS |
|
|
|
|
|
|
|
|
| ||
Cash and cash equivalents (Notes 2 and 4) |
| $ | 61,283,240 |
| 14 |
| $ | 84,700,525 |
| 19 |
|
Financial assets at fair value through profit or loss (Notes 2 and 5) |
| 6,094 |
| — |
| 34,278 |
| — |
| ||
Available-for-sale financial assets (Notes 2 and 6) |
| 1,974,606 |
| 1 |
| 1,030,500 |
| — |
| ||
Held-to-maturity financial assets (Notes 2 and 7) |
| 1,201,301 |
| — |
| 1,963,608 |
| — |
| ||
Trade notes and accounts receivable, net of allowance for doubtful accounts of $2,398,470 thousand in 2011 and $2,528,044 thousand in 2010 (Notes 2 and 8) |
| 20,526,988 |
| 5 |
| 12,948,183 |
| 3 |
| ||
Receivables from related parties (Note 23) |
| 867,782 |
| — |
| 466,422 |
| — |
| ||
Other monetary assets (Note 9) |
| 1,913,684 |
| 1 |
| 2,094,714 |
| 1 |
| ||
Inventories, net (Notes 2 and 10) |
| 1,451,778 |
| — |
| 1,120,024 |
| — |
| ||
Deferred income tax assets (Notes 2 and 20) |
| 51,846 |
| — |
| 53,838 |
| — |
| ||
Other current assets (Notes 11 and 23) |
| 4,342,301 |
| 1 |
| 3,489,243 |
| 1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total current assets |
| 93,619,620 |
| 22 |
| 107,901,335 |
| 24 |
| ||
|
|
|
|
|
|
|
|
|
| ||
LONG-TERM INVESTMENTS |
|
|
|
|
|
|
|
|
| ||
Investments accounted for using equity method (Notes 2 and 12) |
| 12,756,948 |
| 3 |
| 11,066,543 |
| 2 |
| ||
Financial assets carried at cost (Notes 2 and 13) |
| 2,244,593 |
| 1 |
| 2,305,354 |
| 1 |
| ||
Held-to-maturity financial assets (Notes 2 and 7) |
| 13,494,891 |
| 3 |
| 8,408,090 |
| 2 |
| ||
Other monetary assets (Notes 14 and 24) |
| 1,000,000 |
| — |
| 1,000,000 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total long-term investments |
| 29,496,432 |
| 7 |
| 22,779,987 |
| 5 |
| ||
|
|
|
|
|
|
|
|
|
| ||
PROPERTY, PLANT AND EQUIPMENT (Notes 2, 15 and 23) |
|
|
|
|
|
|
|
|
| ||
Cost |
|
|
|
|
|
|
|
|
| ||
Land |
| 101,386,926 |
| 23 |
| 101,709,013 |
| 23 |
| ||
Land improvements |
| 1,552,549 |
| — |
| 1,554,776 |
| — |
| ||
Buildings |
| 65,954,833 |
| 15 |
| 65,720,709 |
| 15 |
| ||
Computer equipment |
| 14,435,797 |
| 3 |
| 15,422,954 |
| 3 |
| ||
Telecommunications equipment |
| 653,730,240 |
| 151 |
| 654,890,287 |
| 147 |
| ||
Transportation equipment |
| 2,524,245 |
| 1 |
| 2,371,493 |
| 1 |
| ||
Miscellaneous equipment |
| 6,584,655 |
| 2 |
| 6,968,946 |
| 2 |
| ||
Total cost |
| 846,169,245 |
| 195 |
| 848,638,178 |
| 191 |
| ||
Revaluation increment on land |
| 5,762,535 |
| 2 |
| 5,800,701 |
| 1 |
| ||
|
| 851,931,780 |
| 197 |
| 854,438,879 |
| 192 |
| ||
Less: Accumulated depreciation |
| 568,061,502 |
| 131 |
| 565,756,859 |
| 127 |
| ||
|
| 283,870,278 |
| 66 |
| 288,682,020 |
| 65 |
| ||
Construction in progress and advances related to acquisition of equipment |
| 13,459,107 |
| 3 |
| 12,014,639 |
| 3 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Property, plant and equipment, net |
| 297,329,385 |
| 69 |
| 300,696,659 |
| 68 |
| ||
|
|
|
|
|
|
|
|
|
| ||
INTANGIBLE ASSETS (Note 2) |
|
|
|
|
|
|
|
|
| ||
3G concession |
| 5,240,262 |
| 1 |
| 5,988,870 |
| 1 |
| ||
Others |
| 722,749 |
| — |
| 447,294 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total intangible assets |
| 5,963,011 |
| 1 |
| 6,436,164 |
| 1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
OTHER ASSETS |
|
|
|
|
|
|
|
|
| ||
Idle assets (Note 2) |
| 878,896 |
| — |
| 878,896 |
| — |
| ||
Refundable deposits |
| 1,656,096 |
| — |
| 1,478,342 |
| 1 |
| ||
Deferred income tax assets (Notes 2 and 20) |
| 254,934 |
| — |
| 398,050 |
| — |
| ||
Others (Note 23) |
| 4,099,496 |
| 1 |
| 3,817,546 |
| 1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total other assets |
| 6,889,422 |
| 1 |
| 6,572,834 |
| 2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
TOTAL |
| $ | 433,297,870 |
| 100 |
| $ | 444,386,979 |
| 100 |
|
|
| 2011 |
| 2010 |
| ||||||
|
| Amount |
| % |
| Amount |
| % |
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| ||
Financial liabilities at fair value through profit or loss (Notes 2 and 5) |
| $ | 3,665 |
| — |
| $ | — |
| — |
|
Trade notes and accounts payable |
| 11,425,662 |
| 3 |
| 8,754,445 |
| 2 |
| ||
Payables to related parties (Note 23) |
| 3,456,719 |
| 1 |
| 2,407,985 |
| — |
| ||
Income tax payable (Notes 2 and 20) |
| 3,336,087 |
| 1 |
| 4,411,541 |
| 1 |
| ||
Accrued expenses (Note 16) |
| 17,165,393 |
| 4 |
| 17,262,155 |
| 4 |
| ||
Due to stockholders for capital reduction (Note 18) |
| — |
| — |
| 19,393,617 |
| 4 |
| ||
Other current liabilities (Note 17) |
| 19,242,436 |
| 4 |
| 16,051,057 |
| 4 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total current liabilities |
| 54,629,962 |
| 13 |
| 68,280,800 |
| 15 |
| ||
|
|
|
|
|
|
|
|
|
| ||
DEFERRED INCOME |
| 2,577,462 |
| — |
| 2,588,910 |
| 1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
RESERVE FOR LAND VALUE INCREMENTAL TAX (Note 15) |
| 94,986 |
| — |
| 94,986 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
OTHER LIABILITIES |
|
|
|
|
|
|
|
|
| ||
Accrued pension liabilities (Notes 2 and 22) |
| 1,437,136 |
| 1 |
| 1,283,022 |
| — |
| ||
Customers’ deposits (Note 23) |
| 4,967,605 |
| 1 |
| 5,853,704 |
| 1 |
| ||
Deferred credits - profit on intercompany transactions (Note 23) |
| 539,243 |
| — |
| 1,440,007 |
| 1 |
| ||
Others |
| 320,450 |
| — |
| 266,808 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total other liabilities |
| 7,264,434 |
| 2 |
| 8,843,541 |
| 2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total liabilities |
| 64,566,844 |
| 15 |
| 79,808,237 |
| 18 |
| ||
|
|
|
|
|
|
|
|
|
| ||
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 |
| 38 |
| ||
Donated capital |
| 13,170 |
| — |
| 13,170 |
| — |
| ||
Equity in additional paid-in capital reported by equity-method investees |
| 26,830 |
| — |
| 5,643 |
| — |
| ||
Total additional paid-in capital |
| 169,536,289 |
| 39 |
| 169,515,102 |
| 38 |
| ||
Retained earnings |
|
|
|
|
|
|
|
|
| ||
Legal reserve |
| 66,122,145 |
| 15 |
| 61,361,255 |
| 14 |
| ||
Special reserve |
| 2,675,894 |
| 1 |
| 2,675,894 |
| — |
| ||
Unappropriated earnings |
| 47,068,830 |
| 11 |
| 47,615,807 |
| 11 |
| ||
Total retained earnings |
| 115,866,869 |
| 27 |
| 111,652,956 |
| 25 |
| ||
Other adjustments |
|
|
|
|
|
|
|
|
| ||
Cumulative translation adjustments |
| (38,918 | ) | — |
| (102,885 | ) | — |
| ||
Unrecognized net loss of pension |
| (38,106 | ) | — |
| (40,182 | ) | — |
| ||
Unrealized gain on financial instruments |
| 67,674 |
| — |
| 176,048 |
| — |
| ||
Unrealized revaluation increment |
| 5,762,753 |
| 1 |
| 5,803,238 |
| 1 |
| ||
Total other adjustments |
| 5,753,403 |
| 1 |
| 5,836,219 |
| 1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total stockholders’ equity |
| 368,731,026 |
| 85 |
| 364,578,742 |
| 82 |
| ||
|
|
|
|
|
|
|
|
|
| ||
TOTAL |
| $ | 433,297,870 |
| 100 |
| $ | 444,386,979 |
| 100 |
|
The accompanying notes are an integral part of the financial statements.
CHUNGHWA TELECOM CO., LTD.
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
(Amounts in Thousands of New Taiwan Dollars, Except Earnings Per Share Data)
|
| 2011 |
| 2010 |
| ||||||
|
| Amount |
| % |
| Amount |
| % |
| ||
|
|
|
|
|
|
|
|
|
| ||
NET REVENUES (Note 23) |
| $ | 192,462,104 |
| 100 |
| $ | 186,410,943 |
| 100 |
|
|
|
|
|
|
|
|
|
|
| ||
OPERATING COSTS (Note 23) |
| 106,887,392 |
| 55 |
| 98,675,571 |
| 53 |
| ||
|
|
|
|
|
|
|
|
|
| ||
GROSS PROFIT |
| 85,574,712 |
| 45 |
| 87,735,372 |
| 47 |
| ||
|
|
|
|
|
|
|
|
|
| ||
OPERATING EXPENSES (Note 23) |
|
|
|
|
|
|
|
|
| ||
Marketing |
| 27,472,129 |
| 14 |
| 25,325,544 |
| 13 |
| ||
General and administrative |
| 3,449,054 |
| 2 |
| 3,396,438 |
| 2 |
| ||
Research and development |
| 3,413,032 |
| 2 |
| 3,261,176 |
| 2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total operating expenses |
| 34,334,215 |
| 18 |
| 31,983,158 |
| 17 |
| ||
|
|
|
|
|
|
|
|
|
| ||
INCOME FROM OPERATIONS |
| 51,240,497 |
| 27 |
| 55,752,214 |
| 30 |
| ||
|
|
|
|
|
|
|
|
|
| ||
NON-OPERATING INCOME AND GAINS |
|
|
|
|
|
|
|
|
| ||
Equity in earnings of equity method investees, net |
| 2,097,064 |
| 1 |
| 778,664 |
| 1 |
| ||
Gain on disposal of property, plant and equipment, net |
| 1,207,582 |
| 1 |
| — |
| — |
| ||
Interest income |
| 655,080 |
| — |
| 445,894 |
| — |
| ||
Foreign exchange gain, net |
| 63,033 |
| — |
| 6,798 |
| — |
| ||
Dividend income |
| 15,378 |
| — |
| 17,156 |
| — |
| ||
Others |
| 312,433 |
| — |
| 236,679 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total non-operating income and gains |
| 4,350,570 |
| 2 |
| 1,485,191 |
| 1 |
| ||
|
|
|
|
|
|
|
|
|
| ||
NON-OPERATING EXPENSES AND LOSSES |
|
|
|
|
|
|
|
|
| ||
Impairment loss on assets |
| 98,500 |
| — |
| 61,323 |
| — |
| ||
Loss on disposal of financial instruments, net |
| 56,016 |
| — |
| 385,544 |
| — |
| ||
Valuation loss on financial instruments, net |
| 31,849 |
| — |
| 11,626 |
| — |
| ||
Interest expense |
| 222 |
| — |
| 75,458 |
| — |
| ||
Loss on disposal of property, plant and equipment, net |
| — |
| — |
| 208,878 |
| — |
| ||
Others |
| 25,842 |
| — |
| 56,511 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
Total non-operating expenses and losses |
| 212,429 |
| — |
| 799,340 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
INCOME BEFORE INCOME TAX |
| 55,378,638 |
| 29 |
| 56,438,065 |
| 31 |
| ||
|
|
|
|
|
|
|
|
|
| ||
INCOME TAX EXPENSE (Notes 2 and 20) |
| 8,310,263 |
| 5 |
| 8,829,165 |
| 5 |
| ||
|
|
|
|
|
|
|
|
|
| ||
NET INCOME |
| $ | 47,068,375 |
| 24 |
| $ | 47,608,900 |
| 26 |
|
(Continued)
CHUNGHWA TELECOM CO., LTD.
STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
(Amounts in Thousands of New Taiwan Dollars, Except Earnings Per Share Data)
|
| 2011 |
| 2010 |
| ||||||||
|
| Income |
| Net |
| Income |
| Net |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
EARNINGS PER SHARE (Note 21) |
|
|
|
|
|
|
|
|
| ||||
Basic earnings per share |
| $ | 7.11 |
| $ | 6.04 |
| $ | 5.82 |
| $ | 4.91 |
|
Diluted earnings per share |
| $ | 7.09 |
| $ | 6.03 |
| $ | 5.80 |
| $ | 4.89 |
|
The accompanying notes are an integral part of the financial statements. | (Concluded) |
CHUNGHWA TELECOM CO., LTD.
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
YEARS ENDED DECEMBER 31, 2011 AND 2010
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Adjustments |
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized |
|
|
|
|
| ||||||||||
|
|
|
|
|
| Retained Earnings |
| Cumulative |
| Unrecognized |
| Gain (Loss) on |
| Unrealized |
| Total |
| ||||||||||||||||
|
| Common Stock |
| Additional |
|
|
|
|
| Unappropriated |
| Translation |
| Net Loss of |
| Financial |
| Revaluation |
| Stockholders’ |
| ||||||||||||
|
| Shares |
| Amount |
| Paid-in Capital |
| Legal Reserve |
| Special Reserve |
| Earnings |
| Adjustments |
| Pension |
| Instruments |
| Increment |
| Equity |
| ||||||||||
|
| (Thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
BALANCE, JANUARY 1, 2010 |
| 9,696,808 |
| $ | 96,968,082 |
| $ | 169,509,763 |
| $ | 56,987,241 |
| $ | 2,675,894 |
| $ | 43,749,962 |
| $ | 7,626 |
| $ | (43,750 | ) | $ | (447,129 | ) | $ | 5,803,446 |
| $ | 375,211,135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Transfer of unrealized revaluation increment to income upon disposal of revalued assets |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| (208 | ) | (208 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Appropriation of 2009 earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Legal reserve |
| — |
| — |
| — |
| 4,374,014 |
| — |
| (4,374,014 | ) | — |
| — |
| — |
| — |
| — |
| ||||||||||
Cash dividends - NT$4.06 per share |
| — |
| — |
| — |
| — |
| — |
| (39,369,041 | ) | — |
| — |
| — |
| — |
| (39,369,041 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Capital reduction (Note 18) |
| (1,939,361 | ) | (19,393,617 | ) | — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| (19,393,617 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net income in 2010 |
| — |
| — |
| — |
| — |
| — |
| 47,608,900 |
| — |
| — |
| — |
| — |
| 47,608,900 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Unrealized loss on financial instruments held by investees |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 176,916 |
| — |
| 176,916 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Equity adjustments in investees |
| — |
| — |
| 5,339 |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 5,339 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Cumulative translation adjustment for foreign-currency investments held by investees |
| — |
| — |
| — |
| — |
| — |
| — |
| (110,511 | ) | — |
| — |
| — |
| (110,511 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Defined benefit pension plan adjustments of investees |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 3,568 |
| — |
| — |
| 3,568 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Unrealized gain on financial instruments |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 446,261 |
| — |
| 446,261 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
BALANCE, DECEMBER 31, 2010 |
| 7,757,447 |
| 77,574,465 |
| 169,515,102 |
| 61,361,255 |
| 2,675,894 |
| 47,615,807 |
| (102,885 | ) | (40,182 | ) | 176,048 |
| 5,803,238 |
| 364,578,742 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Transfer of unrealized revaluation increment to income upon disposal of revalued assets |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| (40,485 | ) | (40,485 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Appropriation of 2010 earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Legal reserve |
| — |
| — |
| — |
| 4,760,890 |
| — |
| (4,760,890 | ) | — |
| — |
| — |
| — |
| — |
| ||||||||||
Cash dividends - NT$5.52 per share |
| — |
| — |
| — |
| — |
| — |
| (42,854,462 | ) | — |
| — |
| — |
| — |
| (42,854,462 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Net income in 2011 |
| — |
| — |
| — |
| — |
| — |
| 47,068,375 |
| — |
| — |
| — |
| — |
| 47,068,375 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Unrealized gain on financial instruments held by investees |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| (204,555 | ) | — |
| (204,555 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Equity adjustments in investees |
| — |
| — |
| 21,187 |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 21,187 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Cumulative translation adjustment for foreign-currency investments held by investees |
| — |
| — |
| — |
| — |
| — |
| — |
| 63,967 |
| — |
| — |
| — |
| 63,967 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Defined benefit pension plan adjustments of investees |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 2,076 |
| — |
| — |
| 2,076 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Unrealized gain on financial instruments |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 96,181 |
| — |
| 96,181 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
BALANCE, DECEMBER 31, 2011 |
| 7,757,447 |
| $ | 77,574,465 |
| $ | 169,536,289 |
| $ | 66,122,145 |
| $ | 2,675,894 |
| $ | 47,068,830 |
| $ | (38,918 | ) | $ | (38,106 | ) | $ | 67,674 |
| $ | 5,762,753 |
| $ | 368,731,026 |
|
The accompanying notes are an integral part of the financial statements.
CHUNGHWA TELECOM CO., LTD.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
(Amounts in Thousands of New Taiwan Dollars)
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
| ||
Net income |
| $ | 47,068,375 |
| $ | 47,608,900 |
|
Impairment loss on assets |
| 98,500 |
| 61,323 |
| ||
Provision for doubtful accounts |
| 109,292 |
| 227,057 |
| ||
Depreciation and amortization |
| 31,914,060 |
| 33,647,930 |
| ||
Amortization of premium of financial assets |
| 60,047 |
| 37,200 |
| ||
Loss on disposal of financial instruments, net |
| 56,016 |
| 385,544 |
| ||
Valuation loss on financial instruments, net |
| 31,849 |
| 11,626 |
| ||
Loss (gain) on disposal of property, plant and equipment, net |
| (1,207,582 | ) | 208,878 |
| ||
Loss arising from natural calamities |
| 985 |
| 18,553 |
| ||
Equity in earnings of equity method investees, net |
| (2,097,064 | ) | (778,664 | ) | ||
Dividends received from equity investees |
| 532,857 |
| 278,677 |
| ||
Deferred income taxes |
| 145,108 |
| 7,235 |
| ||
Changes in operating assets and liabilities: |
|
|
|
|
| ||
Decrease (increase) in: |
|
|
|
|
| ||
Financial assets held for trading |
| (52,997 | ) | 33,173 |
| ||
Trade notes and accounts receivable |
| (7,677,485 | ) | (2,095,986 | ) | ||
Receivables from related parties |
| (401,360 | ) | (83,204 | ) | ||
Other monetary assets |
| 170,419 |
| (336,694 | ) | ||
Inventories |
| (331,754 | ) | 66,499 |
| ||
Other current assets |
| (279,830 | ) | (394,960 | ) | ||
Increase (decrease) in: |
|
|
|
|
| ||
Trade notes and accounts payable |
| 2,302,505 |
| 1,230,002 |
| ||
Payables to related parties |
| 1,052,073 |
| 484,481 |
| ||
Income tax payable |
| (1,075,454 | ) | 253,555 |
| ||
Accrued expenses |
| (98,177 | ) | 762,095 |
| ||
Other current liabilities |
| 1,829,477 |
| 1,470,186 |
| ||
Deferred income |
| (11,448 | ) | 105,146 |
| ||
Accrued pension liabilities |
| 154,114 |
| 75,065 |
| ||
|
|
|
|
|
| ||
Net cash provided by operating activities |
| 72,292,526 |
| 83,283,617 |
| ||
|
|
|
|
|
| ||
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
| ||
Acquisition of available-for-sale financial assets |
| (3,113,994 | ) | (2,289,718 | ) | ||
Proceeds from disposal of available-for-sale financial assets |
| 2,263,889 |
| 17,931,915 |
| ||
Acquisition of held-to-maturity financial assets |
| (6,543,575 | ) | (6,917,141 | ) | ||
Proceeds from disposal of held-to-maturity financial assets |
| 2,159,034 |
| 1,537,500 |
| ||
Acquisition of financial assets carried at cost |
| (45,239 | ) | (79,306 | ) | ||
Capital reduction of financial assets carried at cost |
| 7,500 |
| — |
| ||
Acquisition of investments accounted for using equity method |
| (1,060,192 | ) | (320,740 | ) | ||
Proceeds from capital reduction of investments accounted for using equity method |
| 815,827 |
| — |
| ||
Acquisition of property, plant and equipment |
| (26,484,469 | ) | (24,303,478 | ) | ||
Proceeds from disposal of property, plant and equipment |
| 648,629 |
| 21,029 |
| ||
(Continued)
CHUNGHWA TELECOM CO., LTD.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
(Amounts in Thousands of New Taiwan Dollars)
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Increase in intangible assets |
| $ | (538,599 | ) | $ | (265,374 | ) |
Increase in other assets |
| (736,345 | ) | (3,233,515 | ) | ||
|
|
|
|
|
| ||
Net cash used in investing activities |
| (32,627,534 | ) | (17,918,828 | ) | ||
|
|
|
|
|
| ||
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
| ||
Decrease in customers’ deposits |
| (887,839 | ) | (33,489 | ) | ||
Increase in other liabilities |
| 53,641 |
| 41,695 |
| ||
Cash dividends paid |
| (42,854,462 | ) | (39,369,041 | ) | ||
Capital reduction |
| (19,393,617 | ) | (9,696,808 | ) | ||
|
|
|
|
|
| ||
Net cash used in financing activities |
| (63,082,277 | ) | (49,057,643 | ) | ||
|
|
|
|
|
| ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
| (23,417,285 | ) | 16,307,146 |
| ||
|
|
|
|
|
| ||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR |
| 84,700,525 |
| 68,393,379 |
| ||
|
|
|
|
|
| ||
CASH AND CASH EQUIVALENTS, END OF YEAR |
| $ | 61,283,240 |
| $ | 84,700,525 |
|
|
|
|
|
|
| ||
SUPPLEMENTAL INFORMATION |
|
|
|
|
| ||
Interest paid |
| $ | 222 |
| $ | 68,766 |
|
Income tax paid |
| $ | 9,240,609 |
| $ | 8,568,375 |
|
|
|
|
|
|
| ||
NON-CASH FINANCING ACTIVITIES |
|
|
|
|
| ||
Reclassification from common capital stock to due to stockholders for capital reduction |
| $ | — |
| $ | 19,393,617 |
|
|
|
|
|
|
| ||
CASH AND NON-CASH INVESTING ACTIVITIES |
|
|
|
|
| ||
Increase in property, plant and equipment |
| $ | 27,846,188 |
| $ | 22,945,900 |
|
Decrease (increase) in payables to suppliers |
| (1,361,719 | ) | 1,357,578 |
| ||
|
| $ | 26,484,469 |
| $ | 24,303,478 |
|
The accompanying notes are an integral part of the financial statements. | (Concluded) |
CHUNGHWA TELECOM CO., LTD.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
(Amounts in Thousands of New Taiwan Dollars, Unless Stated Otherwise)
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 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.
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 Chunghwa’s 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 Chunghwa’s 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”) and released the stock to the staff. 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.
As of December 31, 2011 and 2010, the Company had 24,664 and 24,474 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 receivable’s 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 Company’s 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 Chunghwa’s 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 Company’s share of the investee’s 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
For defined benefit pension plans, net periodic pension benefit cost is recorded in the statement of income and includes service cost, interest cost, expected return on plan assets, amortization of prior service costs, amortization of pension gains (losses) and curtailment or settlement gains (losses).
The Company recognizes into income, any unrecognized actuarial net gains or losses that exceed 10% of the larger of projected benefit obligations or plan assets, defined as the “corridor”. Amounts inside this 10% corridor are amortized over the average remaining service life of active plan participants. Actuarial net gains and losses occur when actual experience differs from any of the many assumptions used to value the plans. Differences between the expected and actual returns on plan assets and changes in interest rate, which affect the discount rate used to value projected plan obligations, can have a significant impact on the calculation of pension net gains and losses from year to year.
The curtailments and settlement gains (losses) resulted from Chunghwa’s early retirement programs. Curtailment/settlement gains or losses are equal to the changes of underfunded status plus a pro rata portion of the unrecognized prior service cost, unrecognized net gains (losses), and unrecognized transition obligations/assets, before the settlement/curtailment event multiplied by the percentage reduction in projected benefit obligation.
The projected benefit obligation represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels.
The carrying amount of accrued pension liability should be the sum of the following amounts when the calculation is positive: (a) projected benefit obligation as of balance sheet date, (b) minus (plus) unamortized actuarial loss (gain), (c) minus unamortized prior service cost, and (d) minus the fair value of plan assets. If the amount determined by above calculation is negative, it is viewed as prepaid pension cost. The prepaid pension cost is measured at the lower of: (a) the amount determined above, and (b) the sum of the following amounts: (i) unamortized actuarial loss, (ii) unamortized prior service cost, and (iii) the present value of refunds from the plan or reductions in future contributions to the plan.
The measurement of benefit obligations and net periodic cost (income) is based on estimates and assumptions approved by the Company’s management such as compensation, age and seniority, as well as certain assumptions, including estimates of discount rates, expected return on plan assets and rate of compensation increases.
For employees under defined contribution pension plans, pension costs are recorded based on the actual contributions made to employees’ individual pension accounts during their service periods.
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 year’s 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 PRINCIPLE
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 was no effect on the net income and after-tax basic earnings per share for the year ended December 31, 2011 as a result of the adoption of SFAS No. 34.
4. CASH AND CASH EQUIVALENTS
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Cash |
|
|
|
|
| ||
Cash on hand |
| $ | 83,922 |
| $ | 72,994 |
|
Bank deposits |
| 2,224,474 |
| 3,178,461 |
| ||
Negotiable certificate of deposit, annual yield rate - ranging from 0.80-1.05% and 0.52-0.61% for 2011 and 2010, respectively |
| 41,450,000 |
| 53,150,000 |
| ||
|
| 43,758,396 |
| 56,401,455 |
| ||
(Continued)
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Cash equivalents |
|
|
|
|
| ||
Commercial paper, annual yield rate - ranging from 0.70% and 0.41-0.43% for 2011 and 2010, respectively |
| $ | 17,225,365 |
| $ | 25,410,753 |
|
Treasury bills, annual yield rate - ranging from 0.70% and 0.42-0.43% for 2011 and 2010, respectively |
| 299,479 |
| 2,888,317 |
| ||
|
| 17,524,844 |
| 28,299,070 |
| ||
|
|
|
|
|
| ||
|
| $ | 61,283,240 |
| $ | 84,700,525 |
|
(Concluded)
As of December 31, 2011 and 2010, foreign deposits in bank were as following:
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
United States of America - New York (US$2,467 thousand and US$1,535 thousand for 2011 and 2010, respectively) |
| $ | 74,693 |
| $ | 44,714 |
|
5. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Derivatives - financial assets |
|
|
|
|
| ||
Currency swap contracts |
| $ | 6,094 |
| $ | 34,278 |
|
|
|
|
|
|
| ||
Derivatives - financial liabilities |
|
|
|
|
| ||
Currency swap contracts |
| $ | 3,665 |
| $ | — |
|
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 December 31, 2011 and 2010 were as follows:
|
| Currency |
| Maturity Period |
| Contract Amount |
|
|
|
|
|
|
| (In Thousands) |
|
December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency swap contracts |
| USD/NTD |
| 2012.01-03 |
| USD43,000/NTD1,306,834 |
|
|
| USD/NTD |
| 2012.01-02 |
| USD19,000/NTD571,280 |
|
December 31, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency swap contracts |
| USD/NTD |
| 2011.01-03 |
| USD25,000/NTD767,274 |
|
Net gain arising from financial assets and liabilities at fair value through profit or loss for the years ended December 31, 2011 and 2010 were $84,847 thousand (including realized settlement loss of $52,998 thousand and valuation loss of $31,849 thousand) and $60,774 thousand (including realized settlement gain of $33,173 thousand and valuation gain of $27,601 thousand), respectively.
6. AVAILABLE-FOR-SALE FINANCIAL ASSETS
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Open-end mutual funds |
| $ | 1,974,606 |
| $ | 1,030,500 |
|
For the years ended December 31, 2011 and 2010, movements of unrealized gain or loss on financial instruments were as follows:
|
| Year Ended December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Balance, beginning of year |
| $ | (20,542 | ) | $ | (466,803 | ) |
Recognized in stockholders’ equity |
| 94,003 |
| 27,544 |
| ||
Transferred to profit or loss |
| 2,178 |
| 418,717 |
| ||
|
|
|
|
|
| ||
Balance, end of year |
| $ | 75,639 |
| $ | (20,542 | ) |
7. HELD-TO-MATURITY FINANCIAL ASSETS
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Corporate bonds, nominal interest rate ranging from 1.20-2.98% and 1.20-4.75% for 2011 and 2010, respectively; effective interest rate ranging from 0.83-2.89% and 1.00-2.95% for 2011 and 2010, respectively |
| $ | 13,790,447 |
| $ | 9,867,863 |
|
Bank debentures, nominal interest rate ranging from 1.37-1.60% and 1.60-2.11% for 2011 and 2010, respectively; effective interest rate ranging from 1.25-1.40% and 1.25-2.45% for 2011 and 2010, respectively |
| 905,745 |
| 503,835 |
| ||
|
| 14,696,192 |
| 10,371,698 |
| ||
Less: Current portion |
| 1,201,301 |
| 1,963,608 |
| ||
|
|
|
|
|
| ||
|
| $ | 13,494,891 |
| $ | 8,408,090 |
|
8. ALLOWANCE FOR DOUBTFUL ACCOUNTS
|
| Year Ended December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Balance, beginning of year |
| $ | 2,528,044 |
| $ | 2,774,868 |
|
Provision for doubtful accounts |
| 98,680 |
| 213,128 |
| ||
Accounts receivable written off |
| (228,254 | ) | (459,952 | ) | ||
|
|
|
|
|
| ||
Balance, end of year |
| $ | 2,398,470 |
| $ | 2,528,044 |
|
9. OTHER MONETARY ASSETS - CURRENT
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Accrued custodial receipts of MOD service |
| $ | 119,295 |
| $ | 53,437 |
|
Accrued custodial receipts from other carriers |
| 3,076 |
| 386,690 |
| ||
Other receivables |
| 1,791,313 |
| 1,654,587 |
| ||
|
|
|
|
|
| ||
|
| $ | 1,913,684 |
| $ | 2,094,714 |
|
10. INVENTORIES
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Work in process |
| $ | 808,957 |
| $ | 766,270 |
|
Merchandise |
| 642,821 |
| 353,754 |
| ||
|
|
|
|
|
| ||
|
| $ | 1,451,778 |
| $ | 1,120,024 |
|
The operating costs related to inventories were $10,852,608 thousand (including the valuation loss on inventories of $175,913 thousand) and $9,737,990 thousand (including the valuation loss on inventories of $11,956 thousand) for the years ended December 31, 2011 and 2010, respectively.
11. OTHER CURRENT ASSETS
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Spare parts |
| $ | 2,305,655 |
| $ | 1,796,921 |
|
Prepaid rents |
| 933,796 |
| 785,576 |
| ||
Prepaid expenses |
| 734,461 |
| 662,764 |
| ||
Miscellaneous |
| 368,389 |
| 243,982 |
| ||
|
|
|
|
|
| ||
|
| $ | 4,342,301 |
| $ | 3,489,243 |
|
12. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD
|
| December 31 |
| ||||||||
|
| 2011 |
| 2010 |
| ||||||
|
| Carrying |
| % of |
| Carrying |
| % of |
| ||
|
|
|
|
|
|
|
|
|
| ||
Listed |
|
|
|
|
|
|
|
|
| ||
Senao International Co., Ltd. (“SENAO”) |
| $ | 1,542,361 |
| 28 |
| $ | 1,422,326 |
| 28 |
|
Non-listed |
|
|
|
|
|
|
|
|
| ||
Light Era Development Co., Ltd. (“LED”) |
| 4,222,858 |
| 100 |
| 2,971,474 |
| 100 |
| ||
Chunghwa Investment Co., Ltd. (“CHI”) |
| 1,742,779 |
| 89 |
| 1,929,694 |
| 89 |
| ||
(Continued)
|
| December 31 |
| ||||||||
|
| 2011 |
| 2010 |
| ||||||
|
| Carrying |
| % of |
| Carrying |
| % of |
| ||
|
|
|
|
|
|
|
|
|
| ||
Donghwa Telecom Co., Ltd. (“DHT”) |
| $ | 891,526 |
| 100 |
| $ | 515,915 |
| 100 |
|
Chunghwa System Integration Co., Ltd. (“CHSI”) |
| 708,745 |
| 100 |
| 703,276 |
| 100 |
| ||
Chunghwa Telecom Singapore Pte., Ltd. (“CHTS”) |
| 659,128 |
| 100 |
| 1,399,258 |
| 100 |
| ||
Taiwan International Standard Electronics Co., Ltd. (“TISE”) |
| 608,933 |
| 40 |
| 556,360 |
| 40 |
| ||
CHIEF Telecom Inc. (“CHIEF”) |
| 574,283 |
| 69 |
| 523,965 |
| 69 |
| ||
International Integrated System, Inc. (“IISI”) |
| 257,371 |
| 33 |
| 266,490 |
| 49 |
| ||
Viettel-CHT Co., Ltd. (“Viettel-CHT”) |
| 255,121 |
| 30 |
| 246,220 |
| 30 |
| ||
Huada Digital Co., Ltd. (“HDD”) |
| 250,689 |
| 50 |
| — |
| — |
| ||
Chunghwa International Yellow Pages Co., Ltd. (“CIYP”) |
| 194,344 |
| 100 |
| 187,462 |
| 100 |
| ||
Prime Asia Investments Group Ltd. (B.V.I.) (“Prime Asia”) |
| 187,755 |
| 100 |
| — |
| 100 |
| ||
Skysoft Co., Ltd. (“SKYSOFT”) |
| 113,304 |
| 30 |
| 94,769 |
| 30 |
| ||
Dian Zuan Integrating Marketing Co., Ltd. (“DZIM”) |
| 109,783 |
| 40 |
| — |
| — |
| ||
Spring House Entertainment Inc. (“SHE”) |
| 101,142 |
| 56 |
| 81,881 |
| 56 |
| ||
Chunghwa Telecom Global, Inc. (“CHTG”) |
| 86,433 |
| 100 |
| 63,779 |
| 100 |
| ||
KingWaytek Technology Co., Ltd. (“KWT”) |
| 75,369 |
| 33 |
| 66,377 |
| 33 |
| ||
Smartfun Digital Co., Ltd. (“SFD”) |
| 60,125 |
| 65 |
| — |
| — |
| ||
Chunghwa Telecom Vietnam Co., Ltd. (“CHTV”) |
| 37,564 |
| 100 |
| — |
| — |
| ||
So-net Entertainment Taiwan Co., Ltd. (“So-net”) |
| 34,545 |
| 30 |
| 25,198 |
| 30 |
| ||
Chunghwa Telecom Japan Co., Ltd. (“CHTJ”) |
| 22,439 |
| 100 |
| 12,099 |
| 100 |
| ||
Chunghwa Sochamp Technology Inc. (“CHST”) |
| 20,351 |
| 51 |
| — |
| — |
| ||
New Prospect Investments Holdings Ltd. (B.V.I.) (“New Prospect”) |
| — |
| 100 |
| — |
| 100 |
| ||
|
| 11,214,587 |
|
|
| 9,644,217 |
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
|
| $ | 12,756,948 |
|
|
| $ | 11,066,543 |
|
|
|
(Concluded)
Chunghwa increased its investment in DHT for $360,216 thousand and $320,740 thousand in November 2011 and August 2010. DHT engages mainly in international telecommunications, IP fictitious internet and internet transfer services.
Chunghwa Telcom Singapore Pte., Ltd. reduced 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, Chunghwa’s 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 by $206,089 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 in March 2006. The holding company is operating as investment company and Chunghwa has invested an amount of US$1 in the holding company for the year ended December 31, 2011.
Market value of the listed investment accounted for using equity method calculated at its closing prices as of December 31, 2011 and 2010 was $6,660,549 thousand and $4,234,616 thousand, respectively.
The details of equity in earnings and losses of equity method investees were as follows:
|
| Year Ended December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Light Era Development Co., Ltd. (“LED”) |
| $ | 1,251,383 |
| $ | 44,797 |
|
Senao International Co., Ltd. (“SENAO”) |
| 389,424 |
| 333,983 |
| ||
Taiwan International Standard Electronics Co., Ltd. (“TISE”) |
| 158,205 |
| 125,141 |
| ||
CHIEF Telecom Inc. (“CHIEF”) |
| 106,974 |
| 76,759 |
| ||
Others |
| 191,078 |
| 197,984 |
| ||
|
|
|
|
|
| ||
|
| $ | 2,097,064 |
| $ | 778,664 |
|
The equity in earnings and losses for the years ended December 31, 2011 and 2010 were based on the audited financial statements.
All accounts of Chunghwa’s subsidiaries were included in Chunghwa’s consolidated financial statements.
13. FINANCIAL ASSETS CARRIED AT COST
|
| December 31 |
| ||||||||
|
| 2011 |
| 2010 |
| ||||||
|
| 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 |
| 8 |
| 127,018 |
| 8 |
| ||
Innovation Works Development Fund, L.P. (“IWDF”) |
| 73,154 |
| 4 |
| 38,035 |
| 13 |
| ||
iD Branding Ventures (“iDBV”) |
| 67,500 |
| 8 |
| 75,000 |
| 8 |
| ||
Innovation Works Limited (“IW”) |
| 31,391 |
| 2 |
| 21,271 |
| 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 |
|
|
| $ | 2,305,354 |
|
|
|
Chunghwa invested in IWDF for $38,035 thousand in June 2010. IWDF invests mainly in start-up companies of E-commerce, mobile internet and cloud computing, etc. Chunghwa made additional investment in IWDF for $35,119 thousand in October 2011.
iDBV reduced its capital by $7,500 thousand in December 2011. The reduction amount was received by Chunghwa.
Chunghwa invested in IW for $10,565 thousand, $10,706 thousand and $10,120 thousand in June 2010, July 2010 and January 2011, respectively. IW invests mainly in start-up companies and mentors such companies in the E-commerce, mobile internet and cloud computing fields, etc.
Chunghwa invested in CQi for $20,000 thousand in June 2010. CQi engages mainly in intelligent energy network management services.
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 the fair values cannot be reliably measured; therefore, these investments are carried at original cost.
14. OTHER MONETARY ASSETS - NONCURRENT
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Piping Fund |
| $ | 1,000,000 |
| $ | 1,000,000 |
|
As part of the government’s 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
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Cost |
|
|
|
|
| ||
Land |
| $ | 101,386,926 |
| $ | 101,709,013 |
|
Land improvements |
| 1,552,549 |
| 1,554,776 |
| ||
Buildings |
| 65,954,833 |
| 65,720,709 |
| ||
Computer equipment |
| 14,435,797 |
| 15,422,954 |
| ||
Telecommunications equipment |
| 653,730,240 |
| 654,890,287 |
| ||
Transportation equipment |
| 2,524,245 |
| 2,371,493 |
| ||
Miscellaneous equipment |
| 6,584,655 |
| 6,968,946 |
| ||
Total cost |
| 846,169,245 |
| 848,638,178 |
| ||
Revaluation increment on land |
| 5,762,535 |
| 5,800,701 |
| ||
|
| 851,931,780 |
| 854,438,879 |
| ||
Accumulated depreciation |
|
|
|
|
| ||
Land improvements |
| 1,040,885 |
| 1,003,811 |
| ||
Buildings |
| 19,533,607 |
| 18,424,498 |
| ||
Computer equipment |
| 10,619,313 |
| 11,761,168 |
| ||
Telecommunications equipment |
| 530,368,705 |
| 527,138,287 |
| ||
Transportation equipment |
| 1,252,360 |
| 1,635,491 |
| ||
Miscellaneous equipment |
| 5,246,632 |
| 5,793,604 |
| ||
|
| 568,061,502 |
| 565,756,859 |
| ||
Construction in progress and advances related to acquisition of equipment |
| 13,459,107 |
| 12,014,639 |
| ||
|
|
|
|
|
| ||
Property, plant and equipment, net |
| $ | 297,329,385 |
| $ | 300,696,659 |
|
Pursuant to the related regulation, Chunghwa revalued its land owned as of April 30, 2000 based on the publicly announced value as of 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 stockholder’s 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 December 31, 2011, the unrealized revaluation increment was decreased to $5,762,753 thousand by disposal revaluation assets.
Depreciation on property, plant and equipment for the years ended December 31, 2011 and 2010 amounted to $30,610,803 thousand and $32,459,110 thousand, respectively. No interest expense was capitalized for the years ended December 31, 2011 and 2010.
Chunghwa reclassified the unused transportation equipment amounting to $61,323 thousand to idle assets and recognized the impairment loss of $61,323 thousand on those assets for the year ended December 31, 2010.
16. ACCRUED EXPENSES
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Accrued salary and compensation |
| $ | 9,762,480 |
| $ | 9,974,505 |
|
Accrued franchise fees |
| 2,246,265 |
| 2,191,174 |
| ||
Accrued employees’ bonuses and remuneration to directors and supervisors |
| 2,084,632 |
| 2,189,118 |
| ||
Other accrued expenses |
| 3,072,016 |
| 2,907,358 |
| ||
|
|
|
|
|
| ||
|
| $ | 17,165,393 |
| $ | 17,262,155 |
|
17. OTHER CURRENT LIABILITIES
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Advances from subscribers |
| $ | 10,538,171 |
| $ | 7,966,130 |
|
Payables to equipment suppliers |
| 1,854,051 |
| 1,100,498 |
| ||
Payables to contractors |
| 1,834,254 |
| 1,261,643 |
| ||
Amounts collected in trust for others |
| 1,187,743 |
| 2,229,878 |
| ||
Refundable customers’ deposits |
| 1,095,183 |
| 1,096,923 |
| ||
Others |
| 2,733,034 |
| 2,395,985 |
| ||
|
|
|
|
|
| ||
|
| $ | 19,242,436 |
| $ | 16,051,057 |
|
18. STOCKHOLDERS’ EQUITY
Under Chunghwa’s Articles of Incorporation, Chunghwa’s 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 shares are issued and outstanding as of December 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 December 31, 2011, the outstanding ADSs representing 556,463 thousand common shares, which equaled approximately 55,646 thousand units and represented 7.17% of Chunghwa’s 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 capital surplus from shares issued in excess of par (additional paid-in capital from issuance of common shares, conversion of bonds and treasury stock transactions) and donations may be capitalized, which however is limited to a certain percentage of the Company’s 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 capital surplus also may be distributed in cash. The capital surplus 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 NT$0.10 per share, such cash dividend shall be distributed in the form of common shares.
For the years ended December 31, 2011 and 2010, 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 Chunghwa’s Articles of Incorporation and Implementation Guidance for the Employee’s 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 shareholders’ 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 Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.
The appropriations and distributions of the 2010 and 2009 earnings of Chunghwa have been approved by the stockholders on June 24, 2011 and June 18, 2010 as follows:
|
| Appropriation and Distribution |
| Dividend Per Share |
| ||||||||
|
| 2010 |
| 2009 |
| 2010 |
| 2009 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Legal reserve |
| $ | 4,760,890 |
| $ | 4,374,014 |
|
|
|
|
| ||
Cash dividends |
| 42,854,462 |
| 39,369,041 |
| $ | 5.52 |
| $ | 4.06 |
| ||
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 paid by cash, 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 amounts for bonuses to employees and remuneration to directors and supervisors approved in the stockholders’ meeting on June 18, 2010, were $1,800,929 thousand and $41,211 thousand paid by cash, 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 of Chunghwa has been approved and resolved by the board of directors on March 27, 2012 as follows:
|
| Appropriation |
| Dividends Per |
| ||
|
|
|
|
|
| ||
Legal reserve |
| $ | 4,706,838 |
|
|
| |
Cash dividends |
| 42,361,864 |
| $ | 5.46 |
| |
The appropriation and distribution of the 2011 earnings, and the amounts for bonuses to employees and remuneration to directors and supervisors will be approved in the stockholders’ meeting on June 22, 2012.
Information on the bonus to employees, directors and supervisors is available on the Market Observation Post System website of the Taiwan Stock Exchange.
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 registered with FSC. The board of directors of Chunghwa were authorized to designate the record date of capital reduction as of October 26, 2010. Subsequently, the stock transfer date of capital reduction was 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.
The stockholders, at a meeting held on June 19, 2009, resolved to transfer capital surplus in the amount of $9,696,808 thousand to common capital stock. The abovementioned 2009 capital increase proposal was effectively registered with FSC. The board of directors authorized the chairman of directors to decide the ex-dividend date of the aforementioned proposal and the chairman decided the ex-dividend date as August 9, 2009.
The stockholders, at the stockholders’ meeting held on June 19, 2009, also resolved to reduce the amount of capital in Chunghwa by a cash distribution to its stockholders in order to improve the financial condition of Chunghwa and better utilize its excess funds. The abovementioned 2009 capital reduction proposal was effectively approved by FSC. The board of directors of Chunghwa further authorized the chairman of board of directors of Chunghwa to designate the record date of capital reduction as of October 26, 2009. Subsequently, common capital stock was reduced by $9,696,808 thousand and the stock transfer date of capital reduction was January 28, 2010. The amount due to stockholders for capital reduction was paid in February 2010.
19. COMPENSATION, DEPRECIATION AND AMORTIZATION EXPENSES
|
| Year Ended December 31, 2011 |
| |||||||
|
| Operating |
| Operating |
|
|
| |||
|
| Costs |
| Expenses |
| Total |
| |||
|
|
|
|
|
|
|
| |||
Compensation expense |
|
|
|
|
|
|
| |||
Salaries |
| $ | 12,151,863 |
| $ | 8,622,719 |
| $ | 20,774,582 |
|
Insurance |
| 1,041,203 |
| 746,781 |
| 1,787,984 |
| |||
Pension |
| 1,710,046 |
| 1,163,277 |
| 2,873,323 |
| |||
Other compensation |
| 9,443,816 |
| 6,565,281 |
| 16,009,097 |
| |||
|
|
|
|
|
|
|
| |||
|
| $ | 24,346,928 |
| $ | 17,098,058 |
| $ | 41,444,986 |
|
|
|
|
|
|
|
|
| |||
Depreciation expense |
| $ | 28,921,464 |
| $ | 1,689,339 |
| $ | 30,610,803 |
|
Amortization expense |
| $ | 1,171,397 |
| $ | 131,585 |
| $ | 1,302,982 |
|
|
| Year Ended December 31, 2010 |
| |||||||
|
| Operating |
| Operating |
|
|
| |||
|
| Costs |
| Expenses |
| Total |
| |||
Compensation expense |
|
|
|
|
|
|
| |||
Salaries |
| $ | 12,009,566 |
| $ | 8,401,230 |
| $ | 20,410,796 |
|
Insurance |
| 1,003,278 |
| 705,193 |
| 1,708,471 |
| |||
Pension |
| 1,674,175 |
| 1,125,841 |
| 2,800,016 |
| |||
Other compensation |
| 9,544,031 |
| 6,601,653 |
| 16,145,684 |
| |||
|
|
|
|
|
|
|
| |||
|
| $ | 24,231,050 |
| $ | 16,833,917 |
| $ | 41,064,967 |
|
|
|
|
|
|
|
|
| |||
Depreciation expense |
| $ | 30,769,818 |
| $ | 1,689,292 |
| $ | 32,459,110 |
|
Amortization expense |
| $ | 1,041,438 |
| $ | 147,102 |
| $ | 1,188,540 |
|
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:
|
| Year Ended December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Income tax expense computed at statutory income tax rate |
| $ | 9,414,368 |
| $ | 9,594,471 |
|
Add (deduct) tax effects of: |
|
|
|
|
| ||
Permanent differences |
| (543,776 | ) | (171,496 | ) | ||
Temporary differences |
| (122,783 | ) | 5,152 |
| ||
10% undistributed earning |
| 45 |
| 1,286 |
| ||
Investment tax credits |
| (641,932 | ) | (605,556 | ) | ||
|
|
|
|
|
| ||
Income tax payable |
| $ | 8,105,922 |
| $ | 8,823,857 |
|
The balance of income tax payable as of December 31, 2011 and 2010 was shown net of prepaid income tax.
b. Income tax expense consists of the following:
|
| Year Ended December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Income tax payable |
| $ | 8,105,922 |
| $ | 8,823,857 |
|
Income tax - separated |
| — |
| 3,688 |
| ||
Income tax - deferred |
| 145,108 |
| 7,235 |
| ||
Adjustments of prior years’ income tax |
| 31,861 |
| (5,615 | ) | ||
Other |
| 27,372 |
| — |
| ||
|
|
|
|
|
| ||
|
| $ | 8,310,263 |
| $ | 8,829,165 |
|
In May 2010, the Legislative Yuan passed the amendment of Article 5 of the Income Tax Law, which reduces the income tax rate of profit-seeking enterprises from 20% to 17%, effective January 1, 2010. After the Legislative Yuan passed the amendment of Article 5 of the Income Tax Law, the Company recalculated its deferred income tax assets and liabilities in accordance with the amended Article and recorded the resulting difference as an income tax expense or benefit.
Under Article 10 of the Statute for Industrial Innovation (SII) passed by the Legislative Yuan in April 2010, a profit-seeking enterprise may deduct up to 15% of its research and development expenditures from its income tax payable for the fiscal year in which these expenditures are incurred, but this deduction should not exceed 30% of the income tax payable for that fiscal year. This incentive took effect from January 1, 2010 and is effective till December 31, 2019.
c. Net deferred income tax assets (liabilities) consists of the following:
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Current |
|
|
|
|
| ||
Provision for doubtful accounts |
| $ | 176,844 |
| $ | 239,720 |
|
Valuation loss on inventory |
| 39,132 |
| 9,229 |
| ||
Unrealized accrued expense |
| 25,786 |
| 51,310 |
| ||
Unrealized foreign exchange gain |
| (12,659 | ) | (1,814 | ) | ||
Valuation gain on financial instruments, net |
| (413 | ) | (5,827 | ) | ||
Other |
| — |
| 940 |
| ||
|
| 228,690 |
| 293,558 |
| ||
Valuation allowance |
| (176,844 | ) | (239,720 | ) | ||
|
|
|
|
|
| ||
Net deferred income tax assets - current |
| $ | 51,486 |
| $ | 53,838 |
|
|
|
|
|
|
| ||
Noncurrent |
|
|
|
|
| ||
Accrued pension cost |
| $ | 244,313 |
| $ | 298,495 |
|
Impairment loss |
| 10,514 |
| 61,993 |
| ||
Abandonment of equipment not approved by National Tax Administration |
| 107 |
| 37,562 |
| ||
|
|
|
|
|
| ||
Net deferred income tax assets - noncurrent |
| $ | 254,934 |
| $ | 398,050 |
|
d. The related information under the Integrated Income Tax System is as follows:
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Balance of Imputation Credit Account (“ICA”) |
| $ | 4,829,546 |
| $ | 4,502,203 |
|
The estimated and the actual creditable ratios distribution of Chunghwa’s 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 ratio may change when the actual distribution of imputation credit is made.
e. Undistributed earnings information
As of December 31, 2011 and 2010, there is no earnings generated prior to June 30, 1998 in Chunghwa’s undistributed earnings.
Income tax returns through the year ended December 31, 2007 have been examined by the ROC tax authorities.
21. EARNINGS PER SHARE
EPS was calculated as follows:
|
| Amount (Numerator) |
| Weighted- |
| Earnings Per Share |
| ||||||||
|
| Income |
| Net Income |
| Outstanding |
| Income |
| Net Income |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Year ended December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic EPS: |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders |
| $ | 55,378,638 |
| $ | 47,068,375 |
| 7,789,326 |
| $ | 7.11 |
| $ | 6.04 |
|
Effect of dilutive potential common stock |
|
|
|
|
|
|
|
|
|
|
| ||||
SENAO’s stock options |
| (8,928 | ) | (8,928 | ) | — |
|
|
|
|
| ||||
Employee bonus |
| — |
| — |
| 21,279 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders (including effect of dilutive potential common stock) |
| $ | 55,369,710 |
| $ | 47,059,447 |
| 7,810,605 |
| $ | 7.09 |
| $ | 6.03 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Year ended December 31, 2010 |
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic EPS: |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders |
| $ | 56,438,065 |
| $ | 47,608,900 |
| 9,696,808 |
| $ | 5.82 |
| $ | 4.91 |
|
Effect of dilutive potential common stock |
|
|
|
|
|
|
|
|
|
|
| ||||
SENAO’s stock options |
| (7,324 | ) | (7,324 | ) | — |
|
|
|
|
| ||||
Employee bonus |
| — |
| — |
| 28,653 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Diluted EPS |
|
|
|
|
|
|
|
|
|
|
| ||||
Income attributable to stockholders (including effect of dilutive potential common stock) |
| $ | 56,430,741 |
| $ | 47,601,576 |
| 9,725,461 |
| $ | 5.80 |
| $ | 4.89 |
|
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 employees 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 years ended December 31, 2011 and 2010. The number of shares is calculated by dividing the amount of bonuses by the closing price of the
Chunghwa’s 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 years ended December 31, 2011 and 2010 were 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.
Chunghwa’s pension plan is considered as a defined benefit plan under the Labor Standards Law that provide benefits based on an employee’s length of service and average six-month salary prior to retirement. Chunghwa 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.
The Company used December 31 as the measurement date for their pension plans.
Pension costs of Chunghwa were $2,954,112 thousand ($2,803,589 thousand subject to defined benefit plan and $150,523 thousand subject to defined contribution plan) and $2,874,480 thousand ($2,744,914 thousand subject to defined benefit plan and $129,566 thousand subject to defined contribution plan) for the years ended December 31, 2011 and 2010, respectively.
Pension information of the defined benefit plan was summarized as follows:
a. Components of net periodic pension cost
|
| Year Ended December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Service cost |
| $ | 2,759,070 |
| $ | 2,692,744 |
|
Interest cost |
| 261,522 |
| 237,413 |
| ||
Expected return on plan assets |
| (212,981 | ) | (181,189 | ) | ||
Amortization of unrecognized loss |
| (4,022 | ) | (4,054 | ) | ||
|
|
|
|
|
| ||
|
| $ | 2,803,589 |
| $ | 2,744,914 |
|
b. Reconciliation between the fund status and accrued pension cost is summarized as follows:
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Benefit obligation |
|
|
|
|
| ||
Vested benefit obligation |
| $ | (12,527,833 | ) | $ | (10,067,186 | ) |
Non-vested benefit obligation |
| (4,234,319 | ) | (3,618,185 | ) | ||
Accumulated benefit obligation |
| (16,762,152 | ) | (13,685,371 | ) | ||
Additional benefit obligation |
| (1,724,407 | ) | (1,491,074 | ) | ||
Projected benefit obligation |
| (18,486,559 | ) | (15,176,445 | ) | ||
Fair values of plan assets |
| 15,593,472 |
| 13,100,783 |
| ||
Funded status |
| (2,893,087 | ) | (2,075,662 | ) | ||
Unrecognized prior service cost effect |
| (37,677 | ) | (41,699 | ) | ||
Amortization of unrecognized net loss (gain) |
| 1,493,628 |
| 834,339 |
| ||
|
|
|
|
|
| ||
Accrued pension liabilities |
| $ | (1,437,136 | ) | $ | (1,283,022 | ) |
|
| December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
c. Vested benefit |
| $ | 16,164,494 |
| $ | 13,169,590 |
|
d. Actuarial assumptions
Discount rate used in determining present value |
| 1.75 | % | 1.75 | % |
Rate of compensation increase |
| 1.00 | % | 1.00 | % |
Rate of return on plan assets |
| 1.50 | % | 1.50 | % |
e. Contributions and payments of the Fund
|
| Year Ended December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Contributions |
| $ | 2,593,658 |
| $ | 2,603,310 |
|
Payments |
| $ | 321,925 |
| $ | 425,014 |
|
23. TRANSACTIONS WITH RELATED PARTIES
The ROC Government, one of Chunghwa’s 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 arm’s-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 |
(Continued)
Company |
| Relationship |
|
|
|
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 |
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 Telecom (Hong Kong) Limited (“CHK”) |
| Subsidiary of CHIEF, which completed its liquidation procedure in September 2010 |
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 |
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 |
Dian Zuan Integrating Marketing Co., Ltd. (“DZIM”) |
| Equity-method investee |
Viettel-CHT Co., Ltd. (“Viettel-CHT”) |
| 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 |
(Concluded)
b. Significant transactions with the above related parties are summarized as follows:
|
| December 31 |
| ||||||||
|
| 2011 |
| 2010 |
| ||||||
|
| Amount |
| % |
| Amount |
| % |
| ||
|
|
|
|
|
|
|
|
|
| ||
1) Receivables |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Trade notes, accounts receivable and other receivables |
|
|
|
|
|
|
|
|
| ||
SENAO |
| $ | 726,051 |
| 84 |
| $ | 271,695 |
| 59 |
|
DHT |
| 32,472 |
| 4 |
| 17,694 |
| 4 |
| ||
CHIEF |
| 30,852 |
| 4 |
| 37,107 |
| 8 |
| ||
CHTG |
| 19,817 |
| 2 |
| 39,187 |
| 8 |
| ||
CIYP |
| 13,982 |
| 2 |
| 15,904 |
| 3 |
| ||
CHSI |
| 13,377 |
| 1 |
| 21,914 |
| 5 |
| ||
So-net |
| 11,263 |
| 1 |
| 32,199 |
| 7 |
| ||
SHE |
| 731 |
| — |
| 19,903 |
| 4 |
| ||
Others |
| 19,237 |
| 2 |
| 10,819 |
| 2 |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
| $ | 867,782 |
| 100 |
| $ | 466,422 |
| 100 |
|
|
|
|
|
|
|
|
|
|
| ||
2) Payables |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Trade notes payable, accounts payable and accrued expenses |
|
|
|
|
|
|
|
|
| ||
SENAO |
| $ | 1,222,386 |
| 35 |
| $ | 824,042 |
| 34 |
|
CHSI |
| 704,538 |
| 20 |
| 649,378 |
| 27 |
| ||
TISE |
| 519,612 |
| 15 |
| 111,488 |
| 5 |
| ||
IFE |
| 120,165 |
| 3 |
| 93,352 |
| 4 |
| ||
STS |
| 82,437 |
| 2 |
| — |
| — |
| ||
DHT |
| 78,845 |
| 2 |
| 33,444 |
| 1 |
| ||
CHTG |
| 74,240 |
| 2 |
| 46,111 |
| 2 |
| ||
CHIEF |
| 46,849 |
| 1 |
| 42,485 |
| 2 |
| ||
CIYP |
| 21,323 |
| 1 |
| 42,415 |
| 2 |
| ||
LED |
| 249 |
| — |
| 196,581 |
| 8 |
| ||
Others |
| 32,794 |
| 2 |
| 45,505 |
| 2 |
| ||
|
| 2,903,438 |
| 83 |
| 2,084,801 |
| 87 |
| ||
Payables to contractors |
|
|
|
|
|
|
|
|
| ||
Others |
| — |
| — |
| 625 |
| — |
| ||
Amounts collected in trust for others |
|
|
|
|
|
|
|
|
| ||
SENAO |
| 366,211 |
| 11 |
| 234,807 |
| 10 |
| ||
CIYP |
| 104,363 |
| 3 |
| 84,708 |
| 3 |
| ||
SHE |
| 31,867 |
| 1 |
| — |
| — |
| ||
So-net |
| 20,383 |
| 1 |
| — |
| — |
| ||
LED |
| 17,070 |
| 1 |
| — |
| — |
| ||
Others |
| 13,387 |
| — |
| 3,044 |
| — |
| ||
|
| 553,281 |
| 17 |
| 322,559 |
| 13 |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
| $ | 3,456,719 |
| 100 |
| $ | 2,407,985 |
| 100 |
|
|
| December 31 |
| ||||||||
|
| 2011 |
| 2010 |
| ||||||
|
| Amount |
| % |
| Amount |
| % |
| ||
|
|
|
|
|
|
|
|
|
| ||
3) Customers’ deposits |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
CHSI |
| $ | 21,474 |
| 1 |
| $ | 25,148 |
| 1 |
|
CHTG |
| 14,846 |
| — |
| 14,891 |
| — |
| ||
Others |
| 3,680 |
| — |
| 6,647 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
| $ | 40,000 |
| 1 |
| $ | 46,686 |
| 1 |
|
|
| Year Ended December 31 |
| ||||||||
|
| 2011 |
| 2010 |
| ||||||
|
| Amount |
| % |
| Amount |
| % |
| ||
|
|
|
|
|
|
|
|
|
| ||
4) Revenues |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
SENAO |
| $ | 831,109 |
| 1 |
| $ | 1,431,057 |
| 1 |
|
So-net |
| 289,335 |
| — |
| 329,124 |
| — |
| ||
CHIEF |
| 272,276 |
| — |
| 267,139 |
| — |
| ||
DHT |
| 112,821 |
| — |
| — |
| — |
| ||
LED |
| 107,343 |
| — |
| 31,762 |
| — |
| ||
CHTG |
| 96,404 |
| — |
| 92,042 |
| — |
| ||
CHTS |
| 45,163 |
| — |
| 21,368 |
| — |
| ||
SKYSOFT |
| 41,156 |
| — |
| 37,672 |
| — |
| ||
CHTJ |
| 38,544 |
| — |
| 18,025 |
| — |
| ||
CIYP |
| 15,570 |
| — |
| 14,005 |
| — |
| ||
SHE |
| 10,775 |
| — |
| 3,545 |
| — |
| ||
CHSI |
| 10,141 |
| — |
| 26,930 |
| — |
| ||
Others |
| 15,030 |
| — |
| 9,684 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
| $ | 1,885,667 |
| 1 |
| $ | 2,282,353 |
| 1 |
|
|
|
|
|
|
|
|
|
|
| ||
5) Operating costs and expenses |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
SENAO |
| $ | 7,385,083 |
| 5 |
| $ | 5,265,950 |
| 4 |
|
CHSI |
| 499,937 |
| 1 |
| 701,030 |
| 1 |
| ||
TISE |
| 493,875 |
| 1 |
| 684,202 |
| 1 |
| ||
CHIEF |
| 307,458 |
| — |
| 290,802 |
| — |
| ||
CHTG |
| 243,584 |
| — |
| 148,139 |
| — |
| ||
IFE |
| 175,660 |
| — |
| 123,555 |
| — |
| ||
STS |
| 167,651 |
| — |
| — |
| — |
| ||
DHT |
| 106,327 |
| — |
| 19,025 |
| — |
| ||
CHTJ |
| 65,501 |
| — |
| 28,209 |
| — |
| ||
SKYSOFT |
| 49,146 |
| — |
| 25,406 |
| — |
| ||
CIYP |
| 45,732 |
| — |
| 45,413 |
| — |
| ||
KWT |
| 44,516 |
| — |
| 21,707 |
| — |
| ||
SHE |
| 36,641 |
| — |
| 86,673 |
| — |
| ||
CHTS |
| 36,479 |
| — |
| 27,554 |
| — |
| ||
Others |
| 18,545 |
| — |
| 2,036 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
| $ | 9,676,135 |
| 7 |
| $ | 7,469,701 |
| 6 |
|
|
| Year Ended December 31 |
| ||||||||
|
| 2011 |
| 2010 |
| ||||||
|
| Amount |
| % |
| Amount |
| % |
| ||
|
|
|
|
|
|
|
|
|
| ||
6) Acquisition of property, plant and equipment |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
TISE |
| $ | 1,332,495 |
| 5 |
| $ | 331,616 |
| 1 |
|
CHSI |
| 1,209,201 |
| 5 |
| 787,099 |
| 3 |
| ||
IFE |
| 151,644 |
| 1 |
| 129,202 |
| 1 |
| ||
CHTS |
| 53,588 |
| — |
| — |
| — |
| ||
CHTG |
| 49,418 |
| — |
| 31,630 |
| — |
| ||
Others |
| 67,051 |
| — |
| 52,387 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| ||
|
| $ | 2,863,397 |
| 11 |
| $ | 1,331,934 |
| 5 |
|
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 year ended December 31, 2011 was $167,651 thousand, which consisted of a reduction of the prepayment of $85,214 thousand and an additional accrual of $82,437 thousand. The prepayment was $2,982,497 thousand (classified as other current assets $204,514 thousand, and other assets - others $2,777,983 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 $900,764 thousand and $45,909 thousand were recognized in 2011 and 2010, respectively.
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. The unrealized loss is not recognized in earnings until it is sold to the third party and realized in the future.
The foregoing transactions with related parties were determined in accordance with mutual agreements.
c. The compensation of directors, supervisors and managements is showed as follows:
|
| Year Ended December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Salaries |
| $ | 45,736 |
| $ | 50,477 |
|
Compensations |
| 38,841 |
| 37,420 |
| ||
Bonus |
| 51,712 |
| 51,581 |
| ||
|
|
|
|
|
| ||
|
| $ | 136,289 |
| $ | 139,478 |
|
24. SIGNIFICANT COMMITMENTS AND CONTINGENCIES
As of December 31, 2011, in addition to those disclosed in other notes, Chunghwa’s remaining commitments under non-cancelable contracts with various parties were as follows:
a. Acquisition of land and buildings of $51,709 thousand.
b. Acquisition of telecommunications equipment of $20,908,648 thousand.
c. Contract to print billing, envelopes and marketing gifts of $34,660 thousand.
d. Chunghwa also has non-cancelable operating leases covering certain buildings, computers, computer peripheral equipment and operating system software under contracts that expire in various years. Future lease payments were as follows:
|
| Rental Amount |
| |
|
|
|
| |
2012 |
| $ | 1,728,028 |
|
2013 |
| 1,413,355 |
| |
2014 |
| 1,058,876 |
| |
2015 |
| 827,063 |
| |
2016 and thereafter |
| 681,927 |
| |
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. Based on Chunghwa’s understanding of the Piping Fund terms, if the project is considered to be no longer necessary by the ROC government, Chunghwa will receive back its proportionate share of the net equity of the Piping Fund upon its dissolution. Chunghwa does not know when its contribution to the Piping Fund will be returned; therefore, Chunghwa did not discount the face amount of its contribution on the Piping Fund.
25. FAIR VALUE OF FINANCIAL INSTRUMENTS
a. Carrying amounts and fair value of financial instruments were as follows:
|
| December 31 |
| ||||||||||
|
| 2011 |
| 2010 |
| ||||||||
|
| Carrying |
|
|
| Carrying |
|
|
| ||||
|
| Amount |
| Fair Value |
| Amount |
| Fair Value |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Assets |
|
|
|
|
|
|
|
|
| ||||
Cash and cash equivalents |
| $ | 61,283,240 |
| $ | 61,283,240 |
| $ | 84,700,525 |
| $ | 84,700,525 |
|
Financial assets at fair value through profit or loss |
| 6,094 |
| 6,094 |
| 34,278 |
| 34,278 |
| ||||
Available-for-sale financial assets |
| 1,974,606 |
| 1,974,606 |
| 1,030,500 |
| 1,030,500 |
| ||||
Held-to-maturity financial assets - current |
| 1,201,301 |
| 1,201,301 |
| 1,963,608 |
| 1,963,608 |
| ||||
Trade notes and accounts receivable, net |
| 20,526,988 |
| 20,526,988 |
| 12,948,183 |
| 12,948,183 |
| ||||
Receivables from related parties |
| 867,782 |
| 867,782 |
| 466,422 |
| 466,422 |
| ||||
Other current monetary assets |
| 1,913,684 |
| 1,913,684 |
| 2,094,714 |
| 2,094,714 |
| ||||
Financial assets carried at cost |
| 2,244,593 |
| — |
| 2,305,354 |
| — |
| ||||
Held-to-maturity financial assets - noncurrent |
| 13,494,891 |
| 13,494,891 |
| 8,408,090 |
| 8,408,090 |
| ||||
Other noncurrent monetary assets |
| 1,000,000 |
| 1,000,000 |
| 1,000,000 |
| 1,000,000 |
| ||||
Refundable deposits |
| 1,656,096 |
| 1,656,096 |
| 1,478,342 |
| 1,478,342 |
| ||||
(Continued)
|
| December 31 |
| ||||||||||
|
| 2011 |
| 2010 |
| ||||||||
|
| Carrying |
|
|
| Carrying |
|
|
| ||||
|
| Amount |
| Fair Value |
| Amount |
| Fair Value |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Liabilities |
|
|
|
|
|
|
|
|
| ||||
Financial liabilities at fair value through profit or loss |
| $ | 3,665 |
| $ | 3,665 |
| $ | — |
| $ | — |
|
Trade notes and accounts payable |
| 11,425,662 |
| 11,425,662 |
| 8,754,445 |
| 8,754,445 |
| ||||
Payables to related parties |
| 3,456,719 |
| 3,456,719 |
| 2,407,985 |
| 2,407,985 |
| ||||
Accrued expenses |
| 17,165,393 |
| 17,165,393 |
| 17,262,155 |
| 17,262,155 |
| ||||
Due to stockholders for capital reduction |
| — |
| — |
| 19,393,617 |
| 19,393,617 |
| ||||
Payables to equipment suppliers (included in “other current liabilities”) |
| 1,854,051 |
| 1,854,051 |
| 1,100,498 |
| 1,100,498 |
| ||||
Payables to contractors (included in “other current liabilities”) |
| 1,834,254 |
| 1,834,254 |
| 1,261,643 |
| 1,261,643 |
| ||||
Amounts collected in trust for others (included in “other current liabilities”) |
| 1,187,743 |
| 1,187,743 |
| 2,229,878 |
| 2,229,878 |
| ||||
Refundable customers’ deposits (included in “other current liabilities”) |
| 1,095,183 |
| 1,095,183 |
| 1,096,923 |
| 1,096,923 |
| ||||
Customers’ deposits |
| 4,967,605 |
| 4,967,605 |
| 5,853,704 |
| 5,853,704 |
| ||||
(Concluded)
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 follow:
|
| Amount Based on Quoted |
| Amount Determined Using |
| ||||||||
|
| December 31 |
| December 31 |
| ||||||||
|
| 2011 |
| 2010 |
| 2011 |
| 2010 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Assets |
|
|
|
|
|
|
|
|
| ||||
Financial assets at fair value through profit or loss |
| $ | — |
| $ | — |
| $ | 6,094 |
| $ | 34,278 |
|
Available-for-sale financial assets |
| 1,974,606 |
| 1,030,500 |
| — |
| — |
| ||||
Liabilities |
|
|
|
|
|
|
|
|
| ||||
Financial liabilities at fair value through profit or loss |
| — |
| — |
| 3,665 |
| — |
| ||||
d. Information about financial risks
1) Market risk
The foreign exchange rate fluctuations would result in Chunghwa’s 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 Chunghwa’s exposure to default by those parties to be material. The Company held a variety of financial instruments. The maximum amount of credit risk of the financial instruments held by counter-parties or third parties is equal to the book value.
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 risks 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
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.
According to the regulations of Securities and Futures Bureau, Chunghwa should disclose the derivative transactions of Chunghwa’s investees, SENAO and CHI, which was as follows:
a. 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 financial risk management objective of SENAO and CHI are to minimize risks due to market risk.
The outstanding forward exchange contracts of SENAO as of December 31, 2011 and 2010 were as follows:
|
|
|
|
|
| Contract Amount |
|
|
| Currency |
| Maturity Date |
| (In Thousands) |
|
|
|
|
|
|
|
|
|
December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts - buy |
| NTD/USD |
| 2012.01 |
| NT$59,638/US$1,967 |
|
|
|
|
|
|
|
|
|
December 31, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward exchange contracts - buy |
| NTD/USD |
| 2011.01 |
| NT$17,965/US$600 |
|
Outstanding index future contracts as of December 31, 2011 was as follows:
|
|
|
|
|
| Contract |
| ||
|
|
|
|
|
| Amount |
| ||
|
| Maturity Period |
| Units |
| (In Thousands) |
| ||
|
|
|
|
|
|
|
|
| |
December 31, 2011 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
TAIFEX futures |
|
|
|
|
|
|
|
| |
TX |
| 2012.01 |
| 2 |
|
| NT$ | 2,952 |
|
TX |
| 2012.02 |
| 4 |
|
| 5,558 |
| |
TX |
| 2012.03 |
| 37 |
|
| 51,614 |
| |
TE |
| 2012.03 |
| 19 |
|
| 11,370 |
| |
TF |
| 2012.01 |
| 8 |
|
| 6,401 |
| |
TF |
| 2012.02 |
| 5 |
|
| 3,877 |
| |
TF |
| 2012.03 |
| 15 |
|
| 11,658 |
| |
There was no outstanding index future contracts of CHI as of December 31, 2010.
Net gain of SANEO arising from derivative financial products for the years ended December 31, 2011 and 2010 were $12,043 thousand and $2,223 thousand, respectively.
Net (loss) gain of CHI arising from derivative financial products for the years ended December 31, 2011 and 2010 were $6,406 thousand and $(6,217) thousand, respectively.
b. Market risk
The foreign exchange rate fluctuations would result in SENAO’s foreign-currency-dominated assets and liabilities and open forward exchange contracts exposed to rate risk.
The fluctuations of market price would result in CHI’s index future contracts exposed to price risk.
c. 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 SENAO’s and CHI’s exposure to default by those parties to be material. The maximum amount of credit risk of the financial instruments held by counter-parties or third parties is equal to the book value.
d. 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 SFB for Chunghwa and its investees:
a. Financings 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: Please see Table 4.
g. Total purchase from or sale to related parties amounting to at least $100 million or 20% of the paid-in capital: Please see Table 5.
h. Receivables from related parties amounting to $100 million or 20% of the paid-in capital: Please see Table 6.
i. Names, locations, and other information of investees on which Chunghwa exercises significant influence: Please see Table 7.
j. Financial transactions: Please see Notes 5 and 25.
k. Investment in Mainland China: Please see Table 8.
27. SEGMENT FINANCIAL INFORMATION
a. Segment information: Please see Table 9.
b. Products and service revenues from external customer information: Please see Table 10.
c. Geographic information
The users of Chunghwa’s services are mainly from Taiwan, ROC. The revenues it derived outside Taiwan are mainly revenues from international long distance telephone and leased line services. The geographic information for revenues is as follows:
|
| Year Ended December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Taiwan, ROC |
| $ | 187,554,728 |
| $ | 181,520,413 |
|
Overseas |
| 4,907,376 |
| 4,890,530 |
| ||
|
|
|
|
|
| ||
|
| $ | 192,462,104 |
| $ | 186,410,943 |
|
The Company does not have material non-current assets in foreign operations for the year ended December 31, 2011.
d. Major customers’ information
For the years ended December 31, 2011 and 2010, the Company did not have any single customer whose net revenue exceeded 10% of the total net revenues.
28. OTHERS
The significant information of foreign-currency financial assets and liabilities as below:
|
| December 31 |
| ||||||||||||||
|
| 2011 |
| 2010 |
| ||||||||||||
|
| Foreign |
| Exchange Rate |
| New Taiwan |
| Foreign |
| Exchange Rate |
| New Taiwan |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Monetary items |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cash |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
| $ | 5,963 |
| 30.28 |
| $ | 180,557 |
| $ | 3,440 |
| 29.13 |
| $ | 100,205 |
|
Available-for-sale financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
| 65,222 |
| 30.28 |
| 1,974,606 |
| 34,305 |
| 29.13 |
| 999,308 |
| ||||
Accounts receivable |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
| 161,682 |
| 30.28 |
| 4,894,927 |
| 155,365 |
| 29.13 |
| 4,525,781 |
| ||||
Investments accounted for using equity method |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
| 2,854 |
| 30.28 |
| 86,433 |
| 2,189 |
| 29.13 |
| 63,779 |
| ||||
HKD |
| 228,596 |
| 3.90 |
| 891,526 |
| 137,651 |
| 3.75 |
| 515,915 |
| ||||
SGD |
| 28,277 |
| 23.31 |
| 659,128 |
| 61,560 |
| 22.73 |
| 1,399,258 |
| ||||
JPY |
| 57,536 |
| 0.39 |
| 22,439 |
| 33,776 |
| 0.36 |
| 12,099 |
| ||||
VND |
| 210,564,304 |
| 0.00139 |
| 292,685 |
| 170,985,852 |
| 0.00144 |
| 246,220 |
| ||||
RMB |
| 39,088 |
| 4.81 |
| 187,755 |
| — |
| 4.44 |
| — |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Monetary items |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Accounts payable |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
USD |
| 114,654 |
| 30.28 |
| 3,471,726 |
| 109,575 |
| 29.13 |
| 3,191,909 |
| ||||
EUR |
| 28,037 |
| 39.18 |
| 1,098,504 |
| 21,633 |
| 38.92 |
| 841,958 |
| ||||
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-discloses the information on the adoption of International Financial Reporting Standards (IFRSs) as well as the material differences between the existing accounting policies and the accounting policies to be adopted under IFRSs assessed by the Company on its 2011 consolidated financial statements.
TABLE 1
CHUNGHWA TELECOM CO., LTD.
ENDORSEMENTS/GUARANTEES PROVIDED
FOR THE YEAR ENDED DECEMBER 31, 2011
(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 |
| $ | 3,687,310 |
| $ | 1,362,375 |
| $ | 1,362,375 |
| $ | — |
| 0.4 | % | $ | 14,749,241 |
|
|
|
|
|
|
|
|
| (Note 3) |
|
|
| (Note 4) |
|
|
|
|
| (Note 6) |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
25 |
| Yao Yong Real Property Co., Ltd. |
| Light Era Development Co., Ltd. |
| d |
| 3,859,207 |
| 2,750,000 |
| 2,150,000 |
| 2,150,000 |
| 0.6 | % | 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 Company’s directly-owned subsidiary.
e. Guaranteed by the Company according to the construction contract.
f. An investee company. The guarantees were provided based on the Company’s 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 latest financial statements of the Company.
Note 4: The actual amount used by guaranteed party is $646,602 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
DECEMBER 31, 2011
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)
|
|
|
|
|
|
|
|
|
| December 31, 2011 |
|
|
| ||||||||||||
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 |
| $ |
| 1,542,361 |
| 28 |
| $ |
| 6,660,549 |
| Note 4 |
| ||
|
|
|
| Light Era Development Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| 300,000 |
| 4,222,858 |
| 100 |
| 4,224,489 |
| Note 1 |
| ||||||
|
|
|
| Chunghwa Investment Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| 178,000 |
| 1,742,779 |
| 89 |
| 1,799,865 |
| Note 1 |
| ||||||
|
|
|
| Donghwa Telecom Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| 223,190 |
| 891,526 |
| 100 |
| 891,526 |
| Note 1 |
| ||||||
|
|
|
| Chunghwa System Integration Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| 60,000 |
| 708,745 |
| 100 |
| 676,414 |
| Note 1 |
| ||||||
|
|
|
| Chunghwa Telecom Singapore Pte., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| 26,383 |
| 659,128 |
| 100 |
| 659,128 |
| Note 1 |
| ||||||
|
|
|
| Taiwan International Standard Electronics Co., Ltd. |
| Equity-method investee |
| Investments accounted for using equity method |
| 1,760 |
| 608,933 |
| 40 |
| 899,190 |
| Note 1 |
| ||||||
|
|
|
| CHIEF Telecom Inc. |
| Subsidiary |
| Investments accounted for using equity method |
| 37,942 |
| 574,283 |
| 69 |
| 518,108 |
| Note 1 |
| ||||||
|
|
|
| International Integrated System, Inc. |
| Equity-method investee |
| Investments accounted for using equity method |
| 22,498 |
| 257,371 |
| 33 |
| 237,497 |
| Note 1 |
| ||||||
|
|
|
| Viettel-CHT Co., Ltd. |
| Equity-method investee |
| Investments accounted for using equity method |
| — |
| 255,121 |
| 30 |
| 255,121 |
| Note 1 |
| ||||||
|
|
|
| Huada Digital Corporation |
| Equity-method investee |
| Investments accounted for using equity method |
| 25,000 |
| 250,689 |
| 50 |
| 250,689 |
| Note 1 |
| ||||||
|
|
|
| Chunghwa International Yellow Pages Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| 15,000 |
| 194,344 |
| 100 |
| 194,344 |
| Note 1 |
| ||||||
|
|
|
| Prime Asia Investments Group Ltd. (B.V.I.) |
| Subsidiary |
| Investments accounted for using equity method |
| 6,960 |
| 187,755 |
| 100 |
| 187,896 |
| Note 1 |
| ||||||
|
|
|
| Skysoft Co., Ltd. |
| Equity-method investee |
| Investments accounted for using equity method |
| 4,438 |
| 113,304 |
| 30 |
| 75,797 |
| Note 1 |
| ||||||
|
|
|
| Dian Zuan Integrating Marketing Co., Ltd. |
| Equity-method investee |
| Investments accounted for using equity method |
| 11,464 |
| 109,783 |
| 40 |
| 109,783 |
| Note 1 |
| ||||||
|
|
|
| Spring House Entertainment Tech. Inc. |
| Subsidiary |
| Investments accounted for using equity method |
| 5,996 |
| 101,142 |
| 56 |
| 88,811 |
| Note 1 |
| ||||||
|
|
|
| Chunghwa Telecom Global, Inc. |
| Subsidiary |
| Investments accounted for using equity method |
| 6,000 |
| 86,433 |
| 100 |
| 101,715 |
| Note 1 |
| ||||||
|
|
|
| Kingwaytek Technology Co., Ltd. |
| Equity-method investee |
| Investments accounted for using equity method |
| 1,703 |
| 75,369 |
| 33 |
| 35,581 |
| Note 1 |
| ||||||
|
|
|
| Smartfun Digital Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| 6,500 |
| 60,125 |
| 65 |
| 60,172 |
| Note 1 |
| ||||||
|
|
|
| Chunghwa Telecom Vietnam Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| — |
| 37,564 |
| 100 |
| 37,564 |
| Note 1 |
| ||||||
|
|
|
| So-net Entertainment Taiwan Co., Ltd. |
| Equity-method investee |
| Investments accounted for using equity method |
| 3,429 |
| 34,545 |
| 30 |
| 17,125 |
| Note 1 |
| ||||||
|
|
|
| Chunghwa Telecom Japan Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| 1 |
| 22,439 |
| 100 |
| 22,439 |
| Note 1 |
| ||||||
|
|
|
| Chunghwa Sochamp Technology Inc. |
| Subsidiary |
| Investments accounted for using equity method |
| 2,040 |
| 20,351 |
| 51 |
| 20,511 |
| Note 1 |
| ||||||
|
|
|
| New Prospect Investments Holdings Ltd. (B.V.I.) |
| Subsidiary |
| Investments accounted for using equity method |
| — |
| — |
| 100 |
| — |
| Note 8 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| US$ | (1 dollar | ) |
|
| US$ | (1 dollar | ) |
|
| ||||
|
|
|
| Taipei Financial Center Corp. |
| - |
| Financial assets carried at cost |
| 172,927 |
| 1,789,530 |
| 12 |
| 1,594,089 |
| Note 1 |
| ||||||
|
|
|
| Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II) |
| - |
| Financial assets carried at cost |
| 20,000 |
| 200,000 |
| 17 |
| 202,576 |
| Note 2 |
| ||||||
|
|
|
| Global Mobile Corp. |
| - |
| Financial assets carried at cost |
| 7,617 |
| 77,018 |
| 8 |
| 60,666 |
| Note 2 |
| ||||||
|
|
|
| Innovation Works Development Fund, L.P. |
| - |
| Financial assets carried at cost |
| — |
| 73,154 |
| 4 |
| 64,685 |
| Note 2 |
| ||||||
|
|
|
| iD Branding Ventures |
| - |
| Financial assets carried at cost |
| 6,750 |
| 67,500 |
| 8 |
| 60,834 |
| Note 2 |
| ||||||
|
|
|
| Innovation Works Limited |
| - |
| Financial assets carried at cost |
| 1,000 |
| 31,391 |
| 2 |
| 36,403 |
| Note 2 |
| ||||||
|
|
|
| CQi Energy Infocom Inc. |
| - |
| Financial assets carried at cost |
| 2,000 |
| 6,000 |
| 18 |
| 2,774 |
| Note 2 |
| ||||||
|
|
|
| RPTI Intergroup International Ltd. |
| - |
| Financial assets carried at cost |
| 4,765 |
| — |
| 10 |
| 33,654 |
| Note 2 |
| ||||||
|
|
|
| Essence Technology Solution, Inc. |
| - |
| Financial assets carried at cost |
| 200 |
| — |
| 7 |
| 694 |
| Note 2 |
| ||||||
(Continued)
|
|
|
|
|
|
|
|
|
| December 31, 2011 |
|
|
| ||||||||
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) |
|
|
|
|
| 304 |
| $ | 172,231 |
| — |
| $ | 173,911 |
| Note 3 |
|
|
|
|
| HSBC Glbl Emerging Markets Bd A Inc. |
| - |
| Available-for-sale financial assets |
| 418 |
| 307,114 |
| — |
| 308,136 |
| Note 3 |
| ||
|
|
|
| Templeton Global Bond A (Acc) |
| - |
| Available-for-sale financial assets |
| 751 |
| 307,245 |
| — |
| 326,996 |
| Note 3 |
| ||
|
|
|
| PIMCO Global Investment Grade Credit - Ins H Acc |
| - |
| Available-for-sale financial assets |
| 770 |
| 534,453 |
| — |
| 554,134 |
| Note 3 |
| ||
|
|
|
| PIMCO GIS Total Return Bond Fund - H Institutional Class (Acc) |
| - |
| Available-for-sale financial assets |
| 671 |
| 230,472 |
| — |
| 244,558 |
| Note 3 |
| ||
|
|
|
| Janus Flexible Income Bond Fund |
| - |
| Available-for-sale financial assets |
| 984 |
| 347,452 |
| — |
| 366,871 |
| Note 3 |
| ||
|
|
|
| PIMCO GIS Diversified Bond Fund - H Institutional Class (Acc) |
| - |
| Available-for-sale financial assets |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Bond |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| TSMC 1st Unsecured Corporate Bond-C Issue in 2002 |
| - |
| Held-to-maturity financial assets |
| — |
| 300,177 |
| — |
| 300,177 |
| Note 6 |
| ||
|
|
|
| TSMC 1st Unsecured Corporate Bond-C Issue in 2002 |
| - |
| Held-to-maturity financial assets |
| — |
| 300,249 |
| — |
| 300,249 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co. 2nd Unsecured Bond-EB Issue in 2005 |
| - |
| Held-to-maturity financial assets |
| — |
| 205,109 |
| — |
| 205,109 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co. 2nd Unsecured Bond-EB Issue in 2005 |
| - |
| Held-to-maturity financial assets |
| — |
| 308,390 |
| — |
| 308,390 |
| Note 6 |
| ||
|
|
|
| Chinese Petroleum Corporation 1st Unsecured Corporate Bond-B Issue in 2006 |
| - |
| Held-to-maturity financial assets |
| — |
| 406,003 |
| — |
| 406,003 |
| Note 6 |
| ||
|
|
|
| Chinese Petroleum Corporation 1st Unsecured Corporate Bond-B Issue in 2006 |
| - |
| Held-to-maturity financial assets |
| — |
| 304,502 |
| — |
| 304,502 |
| Note 6 |
| ||
|
|
|
| Chinese Petroleum Corporation 1st Unsecured Corporate Bond-C Issue in 2006 |
| - |
| Held-to-maturity financial assets |
| — |
| 104,393 |
| — |
| 104,393 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co. 2nd Unsecured Corporate Bond-C Issue in 2006 |
| - |
| Held-to-maturity financial assets |
| — |
| 210,328 |
| — |
| 210,328 |
| Note 6 |
| ||
|
|
|
| Yuanta Securities Co., Ltd. 1st Unsecured Corporate Bonds-B Issue in 2007 |
| - |
| Held-to-maturity financial assets |
| — |
| 200,672 |
| — |
| 200,672 |
| Note 6 |
| ||
|
|
|
| China Development Financial Holding Corporation 1st Unsecured Corporate Bonds Issue in 2006 |
| - |
| Held-to-maturity financial assets |
| — |
| 200,102 |
| — |
| 200,102 |
| Note 6 |
| ||
|
|
|
| China Development Financial Holding Corporation 1st Unsecured Corporate Bonds Issue in 2006 |
| - |
| Held-to-maturity financial assets |
| — |
| 200,102 |
| — |
| 200,102 |
| Note 6 |
| ||
|
|
|
| Chinese Petroleum Corporation 1st Unsecured Corporate Bond-A Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 101,947 |
| — |
| 101,947 |
| Note 6 |
| ||
|
|
|
| China Steel Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 101,570 |
| — |
| 101,570 |
| Note 6 |
| ||
|
|
|
| China Steel Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 101,503 |
| — |
| 101,503 |
| Note 6 |
| ||
|
|
|
| China Steel Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 100,014 |
| — |
| 100,014 |
| Note 6 |
| ||
|
|
|
| China Steel Corporation 2nd Unsecured Corporate Bonds-B Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 206,094 |
| — |
| 206,094 |
| Note 6 |
| ||
|
|
|
| China Steel Corporation 2nd Unsecured Corporate Bonds-B Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 310,753 |
| — |
| 310,753 |
| Note 6 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
| December 31, 2011 |
|
|
| ||||||||
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 Bonds-B Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| $ | 153,188 |
| — |
| $ | 153,188 |
| Note 6 |
|
|
|
|
| Taiwan Power Co. 3rd Unsecured Corporate Bond-B Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 50,681 |
| — |
| 50,681 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co. 4th Unsecured Corporate Bond-B Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 204,800 |
| — |
| 204,800 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co. 7th Unsecured Corporate Bond-A Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 153,259 |
| — |
| 153,259 |
| Note 6 |
| ||
|
|
|
| NAN YA Company 2nd Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 403,118 |
| — |
| 403,118 |
| Note 6 |
| ||
|
|
|
| NAN YA Company 3rd Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 201,973 |
| — |
| 201,973 |
| Note 6 |
| ||
|
|
|
| China Development Financial Holding Corporation 1st Unsecured Corporate Bonds-A Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 101,570 |
| — |
| 101,570 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 99,951 |
| — |
| 99,951 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 101,136 |
| — |
| 101,136 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 2nd Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 405,898 |
| — |
| 405,898 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 49,972 |
| — |
| 49,972 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 203,616 |
| — |
| 203,616 |
| Note 6 |
| ||
|
|
|
| Chinese Petroleum Corporation 1st Unsecured Corporate Bonds-A Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 200,628 |
| — |
| 200,628 |
| Note 6 |
| ||
|
|
|
| FCFC 1st Unsecured Corporate Bonds Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 251,467 |
| — |
| 251,467 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co. 1st Secured Corporate Bond-A Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 40,438 |
| — |
| 40,438 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co. 1st Secured Corporate Bond-A Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 200,962 |
| — |
| 200,962 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co. 2nd Secured Corporate Bond-B Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 100,316 |
| — |
| 100,316 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Company 4th Secured Corporate Bond-B Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 349,099 |
| — |
| 349,099 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Company 5th Secured Corporate Bond-B Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 100,537 |
| — |
| 100,537 |
| Note 6 |
| ||
|
|
|
| NAN YA Company 1st Unsecured Corporate Bond-A Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 303,565 |
| — |
| 303,565 |
| Note 6 |
| ||
|
|
|
| NAN YA Company 1st Unsecured Corporate Bond-A Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 202,542 |
| — |
| 202,542 |
| Note 6 |
| ||
|
|
|
| NAN YA Company 1st Unsecured Corporate Bond-A Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 99,949 |
| — |
| 99,949 |
| Note 6 |
| ||
|
|
|
| NAN YA Company 3rd Unsecured Corporate Bond-A Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 50,288 |
| — |
| 50,288 |
| Note 6 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
| December 31, 2011 |
|
|
| ||||||||
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 3rd Unsecured Corporate Bond-A Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| $ | 200,506 |
| — |
| $ | 200,506 |
| Note 6 |
|
|
|
|
| NAN YA Company 4th Unsecured Corporate Bond-A Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 199,740 |
| — |
| 199,740 |
| Note 6 |
| ||
|
|
|
| NAN YA Company 4th Unsecured Corporate Bond-A Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 302,484 |
| — |
| 302,484 |
| Note 6 |
| ||
|
|
|
| MLPC 1st Unsecured Corporate Bond Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 199,851 |
| — |
| 199,851 |
| Note 6 |
| ||
|
|
|
| MLPC 1st Unsecured Corporate Bond Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 304,018 |
| — |
| 304,018 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 200,528 |
| — |
| 200,528 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 201,887 |
| — |
| 201,887 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2008 |
| - |
| Held-to-maturity financial assets |
| — |
| 303,894 |
| — |
| 303,894 |
| Note 6 |
| ||
|
|
|
| Hon Hai Precision Industry Co., Ltd. First Debenture Issuing of 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 100,817 |
| — |
| 100,817 |
| Note 6 |
| ||
|
|
|
| Hon Hai Precision Industry Co., Ltd. First Debenture Issuing of 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 100,974 |
| — |
| 100,974 |
| Note 6 |
| ||
|
|
|
| Hon Hai Precision Industry Co., Ltd. First Debenture Issuing of 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 176,625 |
| — |
| 176,625 |
| Note 6 |
| ||
|
|
|
| FCFC 2nd Unsecured Corporate Bonds Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 100,356 |
| — |
| 100,356 |
| Note 6 |
| ||
|
|
|
| FCFC 2nd Unsecured Corporate Bonds Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 201,012 |
| — |
| 201,012 |
| Note 6 |
| ||
|
|
|
| TaipeiFubon Bank 5th Financial Debenturees-A Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 100,654 |
| — |
| 100,654 |
| Note 6 |
| ||
|
|
|
| TaipeiFubon Bank 5th Financial Debenturees-A Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 201,639 |
| — |
| 201,639 |
| Note 6 |
| ||
|
|
|
| TaipeiFubon Bank 5th Financial Debenturees-A Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 303,452 |
| — |
| 303,452 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 100,431 |
| — |
| 100,431 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 302,558 |
| — |
| 302,558 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Company 2nd Secured Corporate Bond-A Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 100,225 |
| — |
| 100,225 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co 3rd Secured Corporate Bond-A Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 201,428 |
| — |
| 201,428 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co. 4th Secured Corporate Bond-A Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 99,937 |
| — |
| 99,937 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co. 4th Secured Corporate Bond-A Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 199,874 |
| — |
| 199,874 |
| Note 6 |
| ||
|
|
|
| Taiwan Power Co. 4th Secured Corporate Bond-A Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 300,635 |
| — |
| 300,635 |
| 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)
|
|
|
|
|
|
|
|
|
| December 31, 2011 |
|
|
| ||||||||
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 |
| — |
| $ | 50,477 |
| — |
| $ | 50,477 |
| Note 6 |
|
|
|
|
| China Development Holding Corporation 1st Unsecured Corporate Bond-A Issue in 2009 |
| - |
| Held-to-maturity financial assets |
| — |
| 202,768 |
| — |
| 202,768 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2010 |
| - |
| Held-to-maturity financial assets |
| — |
| 299,638 |
| — |
| 299,638 |
| 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 |
| — |
| 100,456 |
| — |
| 100,456 |
| Note 6 |
| ||
|
|
|
| FCFC 1st Unsecured Corporate Bonds Issue in 2011 |
| - |
| Held-to-maturity financial assets |
| — |
| 299,422 |
| — |
| 299,422 |
| Note 6 |
| ||
|
|
|
| TSMC 1st Unsecured Corporate Bond-A Issue in 2011 |
| - |
| Held-to-maturity financial assets |
| — |
| 299,721 |
| — |
| 299,721 |
| 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 |
| — |
| 149,721 |
| — |
| 149,721 |
| Note 6 |
| ||
|
|
|
| Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2011 |
| - |
| Held-to-maturity financial assets |
| — |
| 199,603 |
| — |
| 199,603 |
| Note 6 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1 |
| Senao International Co., Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Senao Networks, Inc. |
| Equity-method investee |
| Investments accounted for using equity method |
| 16,824 |
| 345,505 |
| 41 |
| 345,505 |
| Note 1 |
| ||
|
|
|
| Senao International (Samoa) Holding Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| 15,875 |
| 313,515 |
| 100 |
| 314,056 |
| Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| US$ | (10,350 | ) |
|
| US$ | (10,368 | ) |
|
|
|
|
|
| N.T.U. Innovation Incubation Corporation |
| - |
| Financial assets carried at cost |
| 1,200 |
| 12,000 |
| 9 |
| 12,000 |
| Note 2 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
2 |
| CHIEF Telecom Inc. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Unigate Telecom Inc. |
| Subsidiary |
| Investments accounted for using equity method |
| 200 |
| 1,804 |
| 100 |
| 1,804 |
| Note 1 |
| ||
|
|
|
| Chief International Corp. |
| Subsidiary |
| Investments accounted for using equity method |
| 200 |
| 10,211 |
| 100 |
| 10,211 |
| Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| US$ | (337 | ) |
|
| US$ | (337 | ) |
|
|
|
|
|
| 3 Link Information Service Co., Ltd. |
| - |
| Financial assets carried at cost |
| 374 |
| 3,450 |
| 10 |
| 7,069 |
| Note 2 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
3 |
| Chunghwa System Integration Co., Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Concord Technology Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| 1,010 |
| 6,875 |
| 100 |
| 6,875 |
| Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| RMB | (1,430 | ) |
|
| RMB | (1,430 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
7 |
| Spring House Entertainment Tech. Inc. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Ceylon Innovation Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| — |
| 954 |
| 100 |
| 954 |
| Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
8 |
| Light Era Development Co., Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Yao Yong Real Property Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| 83,290 |
| 2,828,083 |
| 100 |
| 2,828,083 |
| Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
9 |
| Chunghwa Telecom Singapore Pte., Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| ST-2 Satellite Ventures Pte., Ltd. |
| Equity-method investee |
| Investments accounted for using equity method |
| 18,102 |
| 462,161 |
| 38 |
| 462,161 |
| Note 1 |
| ||
|
|
|
|
|
|
|
|
|
|
|
| SG$ | (19,827 | ) |
|
| SG$ | (19,827 | ) |
|
|
(Continued)
|
|
|
|
|
|
|
|
|
| December 31, 2011 |
|
|
| ||||||||
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 |
| $ | 121,546 |
| 53 |
| $ | 121,546 |
| Note 1 |
|
|
|
|
| Chunghwa Investment Holding Co., Ltd. (CIHC) |
| Subsidiary |
| Investments accounted for using equity method |
| 1,043 |
| 11,373 |
| 100 |
| 11,373 |
| 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 |
| 26,966 |
| 4 |
| 26,966 |
| Note 1 |
| ||
|
|
|
| Senao International Co., Ltd. |
| Equity-method investee |
| Investments accounted for using equity method |
| 1,001 |
| 48,762 |
| — |
| 92,893 |
| Note 4 |
| ||
|
|
|
| Tatung Technology Inc. |
| - |
| Financial assets carried at cost |
| 7,727 |
| 60,081 |
| 11 |
| 94,041 |
| Note 2 |
| ||
|
|
|
| Digimax Inc. |
| - |
| Financial assets carried at cost |
| 2,000 |
| 15,080 |
| 4 |
| 14,160 |
| Note 2 |
| ||
|
|
|
| iD Branding Ventures |
| - |
| Financial assets carried at cost |
| 2,250 |
| 22,500 |
| 3 |
| 20,183 |
| Note 2 |
| ||
|
|
|
| Uni Display Inc. |
| - |
| Financial assets carried at cost |
| 4,630 |
| 55,450 |
| 3 |
| 32,364 |
| Note 2 |
| ||
|
|
|
| A2peak Power Co., Ltd. |
| - |
| Financial assets carried at cost |
| 990 |
| — |
| 3 |
| 2,109 |
| Note 2 |
| ||
|
|
|
| CoaTronics Inc. |
| - |
| Financial assets carried at cost |
| 1,200 |
| 12,000 |
| 9 |
| 4,644 |
| Note 2 |
| ||
|
|
|
| VisEra Technologies Company Ltd. |
| - |
| Financial assets carried at cost |
| 649 |
| 29,371 |
| — |
| 12,072 |
| Note 2 |
| ||
|
|
|
| Ultra Fine Optical Technology Co., Ltd. |
| - |
| Financial assets carried at cost |
| 1,800 |
| 27,000 |
| 8 |
| 21,528 |
| Note 2 |
| ||
|
|
|
| Procrystal Technology Co., Ltd. |
| - |
| Financial assets carried at cost |
| 1,350 |
| 68,185 |
| 2 |
| 30,696 |
| Note 7 |
| ||
|
|
|
| Tons Lightology Inc. |
| - |
| Financial assets carried at cost |
| 1,113 |
| 66,150 |
| 4 |
| 31,689 |
| Note 7 |
| ||
|
|
|
| Alder Optomechanical Corp. |
| - |
| Financial assets carried at cost |
| 350 |
| 29,750 |
| 1 |
| 8,497 |
| Note 2 |
| ||
|
|
|
| Aide Energy (Cayman) Holding Co., Ltd. |
| - |
| Financial assets carried at cost |
| 800 |
| 9,380 |
| 1 |
| 9,380 |
| Note 2 |
| ||
|
|
|
| XinTec Inc. |
| - |
| Financial assets carried at cost |
| 24 |
| 1,076 |
| — |
| 467 |
| Note 7 |
| ||
|
|
|
| DelSolar Co., Ltd. |
| - |
| Financial assets carried at cost |
| 127 |
| 6,084 |
| — |
| 1,924 |
| Note 7 |
| ||
|
|
|
| Subtron Technology Co., Ltd. |
| - |
| Financial assets carried at cost |
| 187 |
| 3,483 |
| — |
| 2,378 |
| Note 2 |
| ||
|
|
|
| Cando Corporation |
| - |
| Financial assets carried at cost |
| 376 |
| 4,937 |
| — |
| 3,305 |
| Note 7 |
| ||
|
|
|
| Tatung Fine Chemicals Co. |
| - |
| Financial assets carried at cost |
| 117 |
| 4,600 |
| — |
| 2,888 |
| Note 7 |
| ||
|
|
|
| OptiVision Technology Inc. |
| - |
| Financial assets carried at cost |
| 325 |
| 5,511 |
| 1 |
| 1,495 |
| Note 7 |
| ||
|
|
|
| SuperAlloy Industrial Co., Ltd. |
| - |
| Financial assets carried at cost |
| 509 |
| 7,123 |
| — |
| 6,201 |
| Note 7 |
| ||
|
|
|
| Hiroca Holdings Ltd. |
| - |
| Financial assets carried at cost |
| 140 |
| 17,847 |
| — |
| 14,370 |
| Note 7 |
| ||
|
|
|
| Asia Cement Corporation |
| - |
| Available-for-sale financial assets |
| 146 |
| 4,898 |
| — |
| 4,950 |
| Note 4 |
| ||
|
|
|
| G-TECH Optoelectronics Corporation |
| - |
| Available-for-sale financial assets |
| 9 |
| 703 |
| — |
| 578 |
| Note 4 |
| ||
|
|
|
| Fubon Financial Holding Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 140 |
| 4,862 |
| — |
| 4,488 |
| Note 4 |
| ||
|
|
|
| Cathay Financial Holding Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 52 |
| 2,739 |
| — |
| 1,685 |
| Note 4 |
| ||
|
|
|
| Dynapack International Technology Corp. |
| - |
| Available-for-sale financial assets |
| 1 |
| 77 |
| — |
| 81 |
| Note 4 |
| ||
|
|
|
| Taiwan Hon Chuan Enterprise Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 60 |
| 3,500 |
| — |
| 3,373 |
| Note 4 |
| ||
|
|
|
| Wei Chuan Foods Corp. |
| - |
| Available-for-sale financial assets |
| 203 |
| 8,913 |
| — |
| 6,547 |
| Note 4 |
| ||
|
|
|
| Gemtek Technology Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 49 |
| 2,620 |
| — |
| 990 |
| Note 4 |
| ||
|
|
|
| Coxon Precise Industrial Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 107 |
| 8,206 |
| — |
| 3,691 |
| Note 4 |
| ||
|
|
|
| Altek Corp. |
| - |
| Available-for-sale financial assets |
| 36 |
| 1,824 |
| — |
| 869 |
| Note 4 |
| ||
|
|
|
| I-Chiun Precision Industry Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 80 |
| 3,904 |
| — |
| 1,120 |
| Note 4 |
| ||
|
|
|
| Taiwan Semiconductor Manufacturing Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 100 |
| 7,336 |
| — |
| 7,580 |
| Note 4 |
| ||
|
|
|
| Fulltech Fiber Glass Corp. |
| - |
| Available-for-sale financial assets |
| 51 |
| 1,538 |
| — |
| 765 |
| Note 4 |
| ||
|
|
|
| Wistron NeWeb Corporation |
| - |
| Available-for-sale financial assets |
| 57 |
| 4,889 |
| — |
| 2,835 |
| Note 4 |
| ||
|
|
|
| MasterLink Securities Corporation |
| - |
| Available-for-sale financial assets |
| 250 |
| 3,162 |
| — |
| 2,338 |
| Note 4 |
| ||
|
|
|
| Chipbond Technology Corporation |
| - |
| Available-for-sale financial assets |
| 60 |
| 2,724 |
| — |
| 1,770 |
| Note 4 |
| ||
|
|
|
| Chung Hwa Pulp Corp. |
| - |
| Available-for-sale financial assets |
| 144 |
| 2,217 |
| — |
| 1,319 |
| Note 4 |
| ||
|
|
|
| Taiwan Cement Corp. |
| - |
| Available-for-sale financial assets |
| 75 |
| 2,581 |
| — |
| 2,625 |
| Note 4 |
| ||
|
|
|
| Makalot Industrial Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 25 |
| 1,760 |
| — |
| 1,752 |
| Note 4 |
| ||
|
|
|
| Macronix International Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 170 |
| 3,075 |
| — |
| 2,057 |
| Note 4 |
| ||
|
|
|
| Thxe Ming Industrial Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 70 |
| 2,609 |
| — |
| 1,907 |
| Note 4 |
| ||
|
|
|
| Apex Biotechnology Corp. |
| - |
| Available-for-sale financial assets |
| 50 |
| 3,209 |
| — |
| 3,050 |
| Note 4 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
| December 31, 2011 |
|
|
| ||||||||
No. |
| Held Company Name |
| Marketable Securities Type and Name |
| Relationship with the |
| Financial Statement Account |
| Shares |
| Carrying Value |
| Percentage of |
| Market Value or |
| Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Cyberlink Co. |
| - |
| Available-for-sale financial assets |
| 36 |
| $ | 5,645 |
| — |
| $ | 2,303 |
| Note 4 |
|
|
|
|
| Optotech Corporation |
| - |
| Available-for-sale financial assets |
| 320 |
| 7,106 |
| — |
| 3,616 |
| Note 4 |
| ||
|
|
|
| Tang Eng Iron Works Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 95 |
| 2,744 |
| — |
| 2,755 |
| Note 4 |
| ||
|
|
|
| Ability Enterprise Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 15 |
| 793 |
| — |
| 390 |
| Note 4 |
| ||
|
|
|
| Yuanta Financial Holdings |
| - |
| Available-for-sale financial assets |
| 246 |
| 4,666 |
| — |
| 3,795 |
| Note 4 |
| ||
|
|
|
| Taiwan Semiconductor Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 12 |
| 268 |
| — |
| 174 |
| Note 4 |
| ||
|
|
|
| Visual Photonics Epitaxy Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 140 |
| 6,607 |
| — |
| 4,630 |
| Note 4 |
| ||
|
|
|
| Realtek Semiconductor Corp. |
| - |
| Available-for-sale financial assets |
| 53 |
| 2,378 |
| — |
| 2,369 |
| Note 4 |
| ||
|
|
|
| Taiwan PCB Techvest Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 21 |
| 1,023 |
| — |
| 495 |
| Note 4 |
| ||
|
|
|
| Chung Hung Steel Corporation |
| - |
| Available-for-sale financial assets |
| 303 |
| 3,653 |
| — |
| 2,665 |
| Note 4 |
| ||
|
|
|
| Newmax Technology Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 46 |
| 2,225 |
| — |
| 1,856 |
| Note 4 |
| ||
|
|
|
| Edison Opto Corporation |
| - |
| Available-for-sale financial assets |
| — |
| 16 |
| — |
| 12 |
| Note 4 |
| ||
|
|
|
| Kung Long Batteries Industrial Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 120 |
| 6,839 |
| — |
| 4,920 |
| Note 4 |
| ||
|
|
|
| Digital China Holdings Limited |
| - |
| Available-for-sale financial assets |
| 30 |
| 911 |
| — |
| 693 |
| Note 4 |
| ||
|
|
|
| Richtek Technology Corp. |
| - |
| Available-for-sale financial assets |
| 19 |
| 3,030 |
| — |
| 2,385 |
| Note 4 |
| ||
|
|
|
| Delta Electronics Inc. |
| - |
| Available-for-sale financial assets |
| 80 |
| 8,041 |
| — |
| 5,760 |
| Note 4 |
| ||
|
|
|
| San Shing Fastech Corp. |
| - |
| Available-for-sale financial assets |
| 488 |
| 16,643 |
| — |
| 20,472 |
| Note 4 |
| ||
|
|
|
| USI Corp. |
| - |
| Available-for-sale financial assets |
| 165 |
| 4,800 |
| — |
| 4,018 |
| Note 4 |
| ||
|
|
|
| President Chain Store Corp. |
| - |
| Available-for-sale financial assets |
| 55 |
| 9,167 |
| — |
| 9,075 |
| Note 4 |
| ||
|
|
|
| Champion Microelectronic Corp. |
| - |
| Available-for-sale financial assets |
| 72 |
| 3,755 |
| — |
| 1,447 |
| Note 4 |
| ||
|
|
|
| Unimicron Corporation |
| - |
| Available-for-sale financial assets |
| 115 |
| 4,511 |
| — |
| 4,094 |
| Note 4 |
| ||
|
|
|
| Taiwan Cooperative Bank |
| - |
| Available-for-sale financial assets |
| 200 |
| 4,443 |
| — |
| 3,635 |
| Note 4 |
| ||
|
|
|
| Taiwan FamilyMart Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 38 |
| 5,036 |
| — |
| 4,598 |
| Note 4 |
| ||
|
|
|
| Taiwan 50 Index |
| - |
| Available-for-sale financial assets |
| 521 |
| 25,998 |
| — |
| 25,951 |
| Note 4 |
| ||
|
|
|
| Polaris/P-shares MSCITaiwanFinancial ETF |
| - |
| Available-for-sale financial assets |
| 25 |
| 315 |
| — |
| 264 |
| Note 4 |
| ||
|
|
|
| Ho Tung Chemical Corp. |
| - |
| Available-for-sale financial assets |
| 107 |
| 1,668 |
| — |
| 1,594 |
| Note 4 |
| ||
|
|
|
| Test Rite International Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 186 |
| 4,648 |
| — |
| 3,869 |
| Note 4 |
| ||
|
|
|
| Far New Century Corporation |
| - |
| Available-for-sale financial assets |
| 220 |
| 8,197 |
| — |
| 7,719 |
| Note 4 |
| ||
|
|
|
| Formosa Plastics Corporation |
| - |
| Available-for-sale financial assets |
| 6 |
| 465 |
| — |
| 460 |
| Note 4 |
| ||
|
|
|
| Formosa Petrochemical Corporation |
| - |
| Available-for-sale financial assets |
| 40 |
| 3,737 |
| — |
| 3,752 |
| Note 4 |
| ||
|
|
|
| Oriental Union Chemical Corporation |
| - |
| Available-for-sale financial assets |
| 29 |
| 1,092 |
| — |
| 1,102 |
| Note 4 |
| ||
|
|
|
| Huga Optotech Inc. |
| - |
| Available-for-sale financial assets |
| 90 |
| 2,291 |
| — |
| 1,221 |
| Note 4 |
| ||
|
|
|
| Lextar Electronics Corporation |
| - |
| Available-for-sale financial assets |
| — |
| 2 |
| — |
| 1 |
| Note 4 |
| ||
|
|
|
| ScinoPharm Taiwan Ltd. |
| - |
| Available-for-sale financial assets |
| 15 |
| 651 |
| — |
| 650 |
| Note 4 |
| ||
|
|
|
| Far Eastern Department Stores Ltd. |
| - |
| Available-for-sale financial assets |
| 166 |
| 6,388 |
| — |
| 5,923 |
| Note 4 |
| ||
|
|
|
| Cleanaway Company Limited |
| - |
| Available-for-sale financial assets |
| 28 |
| 4,907 |
| — |
| 4,942 |
| Note 4 |
| ||
|
|
|
| MediaTek Inc. |
| - |
| Available-for-sale financial assets |
| 20 |
| 6,678 |
| — |
| 5,550 |
| Note 4 |
| ||
|
|
|
| Career Technology (MFG.) Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 165 |
| 7,406 |
| — |
| 6,452 |
| Note 4 |
| ||
|
|
|
| Actron Technology Corporation |
| - |
| Available-for-sale financial assets |
| 22 |
| 1,889 |
| — |
| 1,758 |
| Note 4 |
| ||
|
|
|
| ALi Corporation |
| - |
| Available-for-sale financial assets |
| 77 |
| 2,423 |
| — |
| 2,306 |
| Note 4 |
| ||
|
|
|
| Want Want China Holdings Limited |
| - |
| Available-for-sale financial assets |
| 15 |
| 449 |
| — |
| 447 |
| Note 4 |
| ||
|
|
|
| Global Unichip Corp. |
| - |
| Available-for-sale financial assets |
| 12 |
| 1,171 |
| — |
| 1,194 |
| Note 4 |
| ||
|
|
|
| Hon Hai Precision Ind. Co., Ltd. |
| - |
| Available-for-sale financial assets |
| 50 |
| 4,156 |
| — |
| 4,145 |
| Note 4 |
| ||
|
|
|
| Gigasolar Materials Corporation |
| - |
| Available-for-sale financial assets |
| 248 |
| 31,836 |
| — |
| 63,475 |
| Note 4 |
| ||
|
|
|
| Taimide Technology Ltd. |
| - |
| Available-for-sale financial assets - noncurrent |
| 930 |
| 23,283 |
| — |
| 21,665 |
| Note 4 |
| ||
|
|
|
| PChome Store Inc. |
| - |
| Available-for-sale financial assets - noncurrent |
| 325 |
| 14,073 |
| — |
| 33,800 |
| Note 4 |
| ||
|
|
|
| IC Plus Corp. |
| - |
| Available-for-sale financial assets - noncurrent |
| 211 |
| 5,630 |
| — |
| 2,274 |
| Note 4 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
| December 31, 2011 |
|
|
| ||||||||
No. |
| Held Company Name |
| Marketable Securities Type and Name |
| Relationship with the |
| Financial Statement Account |
| Shares |
| Carrying Value |
| Percentage of |
| Market Value or |
| Note |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| MEDIAPRO TECHNOLOGY LTD. |
| - |
| Prepayments for long-term investments in stocks |
| — |
| $ | 44,871 |
| — |
| $ | 44,871 |
| - |
|
|
|
|
| Fashion Guide Co., Ltd. |
| - |
| Prepayments for long-term investments in stocks |
| — |
| 10,000 |
| — |
| 10,000 |
| - |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Beneficiary certificates (mutual fund) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Mega Diamond Bond Fund |
| - |
| Available-for-sale financial assets |
| 4,185 |
| 50,002 |
| — |
| 50,492 |
| Note 3 |
| ||
|
|
|
| Manulife Asia Pacific Bond |
| - |
| Available-for-sale financial assets |
| 749 |
| 8,000 |
| — |
| 7,944 |
| Note 3 |
| ||
|
|
|
| Paradigm high Yield Bond Fund-A |
| - |
| Available-for-sale financial assets |
| 2,110 |
| 23,000 |
| — |
| 23,298 |
| Note 3 |
| ||
|
|
|
| Upamc Quality Growth Fund |
| - |
| Available-for-sale financial assets |
| 237 |
| 5,000 |
| — |
| 3,995 |
| Note 3 |
| ||
|
|
|
| Cathay Mandarin Fund |
| - |
| Available-for-sale financial assets |
| 500 |
| 5,000 |
| — |
| 3,745 |
| Note 3 |
| ||
|
|
|
| Fubon Agribusiness Equity Fund |
| - |
| Available-for-sale financial assets |
| 1,000 |
| 10,000 |
| — |
| 8,460 |
| Note 3 |
| ||
|
|
|
| Fuh Hwa Emerging Market Active Allocation Fund of Funds |
| - |
| Available-for-sale financial assets |
| 1,000 |
| 10,000 |
| — |
| 9,380 |
| Note 3 |
| ||
|
|
|
| Franklin Templeton Sinoam Franklin Templeton Global Fund of Funds |
| - |
| Available-for-sale financial assets |
| 870 |
| 11,621 |
| — |
| 10,982 |
| Note 3 |
| ||
|
|
|
| PowerShares QQQ |
| - |
| Available-for-sale financial assets |
| 2 |
| 2,854 |
| — |
| 3,381 |
| Note 3 |
| ||
|
|
|
| iShares Dow Jones U.S. Financial Sector Index Fund |
| - |
| Available-for-sale financial assets |
| 1 |
| 1,715 |
| — |
| 1,485 |
| Note 3 |
| ||
|
|
|
| Pro Shares UltraShort 20+ Year Treasury |
| - |
| Available-for-sale financial assets |
| 3 |
| 3,124 |
| — |
| 1,641 |
| Note 3 |
| ||
|
|
|
| iShares FTSE/Xinhua A50 China Index ETF |
| - |
| Available-for-sale financial assets |
| 85 |
| 4,113 |
| — |
| 3,425 |
| Note 3 |
| ||
|
|
|
| WISE-CSI 300 China Tracker |
| - |
| Available-for-sale financial assets |
| 14 |
| 2,047 |
| — |
| 1,508 |
| Note 3 |
| ||
|
|
|
| Manulife China offshore Bond Fund-A |
| - |
| Available-for-sale financial assets |
| 2,000 |
| 20,000 |
| — |
| 19,973 |
| Note 3 |
| ||
|
|
|
| Cathy Man AHL Futures Trust Fund of Funds |
| - |
| Available-for-sale financial assets |
| 998 |
| 10,053 |
| — |
| 9,716 |
| Note 3 |
| ||
|
|
|
| iPath S&P 500VIX Short-Term Futures ETN |
| - |
| Available-for-sale financial assets |
| 3 |
| 3,279 |
| — |
| 2,689 |
| Note 3 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Bond |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Hua Nan Financial Holdings Company 1st Unsecured Subordinate Corporate Bonds Issue in 2006 |
| - |
| Available-for-sale financial assets |
| 50,000 |
| 50,611 |
| — |
| 50,910 |
| Note 9 |
| ||
|
|
|
| AU Optronics Corporation 1st Secured Corporate Bonds Issue in 2008 |
| - |
| Available-for-sale financial assets |
| 25,000 |
| 25,194 |
| — |
| 25,299 |
| Note 9 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Convertible bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Epistar Corporation Ltd. 3rd Convertible Bond |
| - |
| Financial assets at fair value through profit or loss |
| 17 |
| 1,815 |
| — |
| 1,683 |
| Note 4 |
| ||
|
|
|
| Everlight Electronics Co., Ltd. 3rd Convertible Bonds |
| - |
| Financial assets at fair value through profit or loss |
| 60 |
| 6,415 |
| — |
| 5,895 |
| Note 4 |
| ||
|
|
|
| King Slide Works Co., Ltd. 2nd Convertible Bond |
| - |
| Financial assets at fair value through profit or loss |
| 20 |
| 2,000 |
| — |
| 2,020 |
| Note 4 |
| ||
|
|
|
| Ability Enterprise Co., Ltd. 1st Unsecured Convertible Bonds |
| - |
| Financial assets at fair value through profit or loss |
| 40 |
| 4,008 |
| — |
| 3,960 |
| Note 4 |
| ||
|
|
|
| TUL the Third Security Convertible Bond |
| - |
| Financial assets at fair value through profit or loss |
| 15 |
| 1,500 |
| — |
| 1,492 |
| Note 4 |
| ||
|
|
|
| Yuanta Financial Holding Co., Ltd. 1st Domestic Convertible Bond |
| - |
| Financial assets at fair value through profit or loss |
| 70 |
| 7,000 |
| — |
| 7,073 |
| Note 4 |
| ||
(Continued)
|
|
|
|
|
|
|
|
|
| December 31, 2011 |
|
|
| |||||||||||
No. |
| Held Company Name |
| Marketable Securities Type and Name |
| Relationship with the |
| Financial Statement Account |
| Shares |
| Carrying Value |
| Percentage of |
| Market Value or |
| Note |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
| Ruentex Industry Co., Ltd. 2010 1st Domestic Unsecured Convertible Corporate Bonds |
| - |
| Financial assets at fair value through profit or loss |
| 10 |
| $ | 1,007 |
| — |
| $ | 985 |
| Note 4 |
| |||
|
|
|
| Ruentex Development Co., Ltd. 2010 1st Domestic Unsecured Convertible Corporate Bonds. |
| - |
| Financial assets at fair value through profit or loss |
| 25 |
| 2,521 |
| — |
| 2,388 |
| Note 4 |
| |||||
|
|
|
| Synnex Technology International Corporation 2nd Unsecured Convertible Bond Issue |
| - |
| Financial assets at fair value through profit or loss |
| 20 |
| 2,004 |
| — |
| 2,003 |
| 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 |
| — |
| 6,620 |
| Note 4 |
| |||||
|
|
|
| Asia Optical 3rd Domestic Unsecured Convertible Bond |
| - |
| Financial assets at fair value through profit or loss |
| 15 |
| 1,505 |
| — |
| 1,450 |
| Note 4 |
| |||||
|
|
|
| Hon Chuan Enterprise Co., Ltd. Domestic 1st Unsecured Convertible Bond |
| - |
| Financial assets at fair value through profit or loss |
| 20 |
| 2,020 |
| — |
| 1,920 |
| Note 4 |
| |||||
|
|
|
| HiTi Digital Inc. Domestic Unsecured Convertible Corporate Bond |
| - |
| Financial assets at fair value through profit or loss |
| 8 |
| 693 |
| — |
| 696 |
| Note 4 |
| |||||
|
|
|
| Globe Union Industrial Corp. 2nd Unsecured Convertible Bonds Issue in 2011 |
| - |
| Financial assets at fair value through profit or loss |
| 15 |
| 1,500 |
| — |
| 1,471 |
| Note 4 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
18 |
| Concord Technology Co., Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
| Glory Network System Service (Shanghai) Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
|
|
| 6,875 |
|
|
| 6,875 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
| 1,010 |
| RMB | (1,430 | ) | 100 |
| RMB | (1,430 | ) | Note 1 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
20 |
| Chunghwa Precision Test Tech. Co., Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
| Chunghwa Precision Test Tech. USA Corporation |
| Subsidiary |
| Investments accounted for using equity method |
|
|
| 8,350 |
|
|
| 8,350 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
| 400 |
| US$ | (276 | ) | 100 |
| US$ | (276 | ) | Note 1 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
22 |
| Senao International (Samoa) Holding Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
| Senao International HK Limited |
| Subsidiary |
| Investments accounted for using equity method |
|
|
| 292,039 |
|
|
| 292,039 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
| 15,180 |
| US$ | (9,641 | ) | 100 |
| US$ | (9,641 | ) | Note 1 |
| |||
|
|
|
| HopeTech Technologies Limited |
| Equity-method investee |
| Investments accounted for using equity method |
|
|
| 21,511 |
|
|
| 21,511 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
| 5,240 |
| US$ | (710 | ) | 45 |
| US$ | (710 | ) | Note 1 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
23 |
| Senao International HK Limited |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
| Senao Trading (Fujian) Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
|
|
| 73,475 |
|
|
| 73,475 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
| — |
| US$ | (2,426 | ) | 100 |
| US$ | (2,426 | ) | Note 1 |
| |||
|
|
|
| Senao International Trading (Shanghai) Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
|
|
| 80,136 |
|
|
| 80,136 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
| — |
| US$ | (2,426 | ) | 100 |
| US$ | (2,426 | ) | Note 1 |
| |||
|
|
|
| Senao International Trading (Shanghai) Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
|
|
| 59,370 |
|
|
| 59,370 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
| — |
| US$ | (1,960 | ) | 100 |
| US$ | (1,960 | ) | Notes 1 and 10 |
| |||
|
|
|
| Senao International Trading (Jiangsu) Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
|
|
| 78,438 |
|
|
| 78,438 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
| — |
| US$ | (2,590 | ) | 100 |
| US$ | (2,590 | ) | Note 1 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
24 |
| Chunghwa Investment Holding Co., Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
| CHI One Investment Co., Limited |
| Subsidiary |
| Investments accounted for using equity method |
|
|
| 1,192 |
|
|
| 1,192 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
| 3,500 |
| HK$ | (306 | ) | 100 |
| HK$ | (306 | ) | Note 1 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
26 |
| CHI One Investment Co., Limited |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
| Xiamen Sertec Business Technology Co., Ltd. |
| Equity-method investee |
| Investments accounted for using equity method |
|
|
| 698 |
|
|
| 698 |
|
|
| |||||
|
|
|
|
|
|
|
|
|
| — |
| RMB | (145 | ) | 49 |
| RMB | (145 | ) | Note 1 |
| |||
(Continued)
|
|
|
|
|
|
|
|
|
| December 31, 2011 |
|
|
| |||||||||||
No. |
| Held Company Name |
| Marketable Securities Type and Name |
| Relationship with the |
| Financial Statement Account |
| Shares |
| Carrying Value |
| Percentage of |
| Market Value or |
| Note |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
27 |
| Prime Asia Investments Group, Ltd. (B.V.I.) |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
| Chunghwa Hsingta Company Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| — |
| $ | 187,896 |
| 100 |
| $ | 187,896 |
| Note 1 |
| |||
|
|
|
|
|
|
|
|
|
|
|
| RMB | (39,088 | ) |
|
| RMB | (39,088 | ) |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
29 |
| Chunghwa Hsingta Company Ltd. |
| Stocks |
|
|
|
|
|
|
| 158,708 |
|
|
| 158,708 |
|
|
| |||||
|
|
|
| Chunghwa Telecom (China) Co., Ltd. |
| Subsidiary |
| Investments accounted for using equity method |
| — |
| RMB | (33,016 | ) | 100 |
| RMB | (33,016 | ) | Note 1 |
| |||
Note 1: | The net asset values of investees based on audited financial statements. |
|
|
Note 2: | The net asset values of investees were based on unaudited financial statements. |
|
|
Note 3: | The net asset values of beneficiary certificates (mutual fund) were based on the net asset values on December 31, 2011. |
|
|
Note 4: | Market value was based on the closing price of December 31, 2011. |
|
|
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 December 31, 2011. |
|
|
Note 8: | New Prospect Investments Holdings Ltd. (B.V.I.) was incorporated in March 2006, but not yet begun operation as of December 31, 2011. |
|
|
Note 9: | The market value is determined by the hundred price of transaction market on December 31, 2011. |
|
|
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
YEAR ENDED DECEMBER 31, 2011
(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) on |
| Shares |
| Amount |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
0 |
| Chunghwa Telecom Co., Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Donghwa Telecom Co., Ltd. |
| Investments accounted for using equity method |
| - |
| Subsidiary |
| 129,590 |
| $ | 515,915 |
| 93,600 |
| $ | 360,216 |
| — |
| $ | — |
| $ | — |
| $ | — |
| 223,190 |
| $ | 891,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 3) |
| ||||||
|
|
|
| Chunghwa Telecom Singapore Pte., Ltd. |
| Investments accounted for using equity method |
| - |
| Subsidiary |
| 61,869 |
| 1,399,258 |
| — |
| — |
| 35,486 |
| 815,827 |
| 815,827 |
| — |
| 26,383 |
| 659,128 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 4) |
|
|
|
|
| (Note 3) |
| ||||||
|
|
|
| Huada Digital Corporation |
| Investments accounted for using equity method |
| - |
| - |
| — |
| — |
| 25,000 |
| 250,000 |
| — |
| — |
| — |
| — |
| 25,000 |
| 250,689 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 3) |
| ||||||
|
|
|
| Prime Asia Investments Group Ltd. |
| Investments accounted for using equity method |
| - |
| Subsidiary |
| — |
| — |
| 6,960 |
| 206,089 |
| — |
| — |
| — |
| — |
| 6,960 |
| 187,982 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 3) |
| ||||||
|
|
|
| Dian Zuan Integrating Marketing Co., Ltd. |
| Investments accounted for using equity method |
| - |
| - |
| — |
| — |
| 11,464 |
| 114,640 |
| — |
| — |
| — |
| — |
| 11,464 |
| 109,783 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 3) |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
| Beneficiary certificates (mutual fund) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
| Yuanta Wan Tai Money Market |
| Available-for-sale financial assets |
| - |
| - |
| — |
| — |
| 137,562 |
| 2,000,000 |
| 137,562 |
| 2,001,073 |
| 2,000,000 |
| 1,073 |
| — |
| — |
| ||||||
|
|
|
| PIMCO GIS Total Return Bond Fund - H Institutional Class (Acc) |
| Available-for-sale financial assets |
| - |
| - |
| 349 |
| 242,784 |
| 421 |
| 291,669 |
| — |
| — |
| — |
| — |
| 770 |
| 534,453 |
| ||||||
|
|
|
| PIMCO GIS Diversified Bond Fund - E Institutional Class (Inc) |
| Available-for-sale financial assets |
| - |
| - |
| — |
| — |
| 656 |
| 236,082 |
| 656 |
| 231,176 |
| 236,082 |
| 4,906 |
| — |
| — |
| ||||||
|
|
|
| Janus Flexible Income Bond Fund |
| Available-for-sale financial assets |
| - |
| - |
| — |
| — |
| 671 |
| 230,472 |
| — |
| — |
| — |
| — |
| 671 |
| 230,472 |
| ||||||
|
|
|
| PIMCO GIS Diversified Bond Fund - H Institutional Class (Acc) |
| Available-for-sale financial assets |
| - |
| - |
| — |
| — |
| 984 |
| 347,452 |
| — |
| — |
| — |
| — |
| 984 |
| 347,452 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
| Bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
| TSMC 1st Unsecured Corporate Bond-C Issue in 2002 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 300,000 |
| — |
| — |
| — |
| — |
| — |
| 300,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| TSMC 1st Unsecured Corporate Bond-C Issue in 2002 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 300,000 |
| — |
| — |
| — |
| — |
| — |
| 300,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| Taiwan Power Co. 2nd Unsecured Bond-EB Issue in 2005 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 500,000 |
| — |
| — |
| — |
| — |
| — |
| 500,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| Chinese Petroleum Corporation 1st Unsecured Corporate Bond-B Issue in 2006 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 300,000 |
| — |
| 400,000 |
| — |
| — |
| — |
| — |
| — |
| 700,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| Chinese Petroleum Corporation 1st Unsecured Corporate Bond-C Issue in 2006 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 100,000 |
| — |
| — |
| — |
| — |
| — |
| 100,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| Taiwan Power Co. 2nd Unsecured Corporate Bond-C Issue in 2006 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 200,000 |
| — |
| — |
| — |
| — |
| — |
| 200,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
(Continued)
|
|
|
|
|
|
|
|
|
|
|
| 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) on |
| Shares |
| Amount |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
| Taiwan Power Co. 3rd Unsecured Corporate Bond-A Issue in 2006 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| $ | 200,000 |
| — |
| $ | — |
| — |
| $ | 200,000 |
| $ | 200,000 |
| $ | — |
| — |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
| (Note 2) |
| (Note 2) |
|
|
|
|
|
|
| ||||||
|
|
|
| China Development Industrial Bank 5th Financial Debentures Issue in 2006 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 200,000 |
| — |
| — |
| — |
| 200,000 |
| 200,000 |
| — |
| — |
| — |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
| (Note 2) |
| (Note 2) |
|
|
|
|
|
|
| ||||||
|
|
|
| Formosa Petrochemical Corporation 4th Unsecured Corporate Bonds Issue in 2006 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 150,000 |
| — |
| — |
| — |
| 150,000 |
| 150,000 |
| — |
| — |
| — |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
| (Note 2) |
| (Note 2) |
|
|
|
|
|
|
| ||||||
|
|
|
| Formosa Petrochemical Corporation 5th Unsecured Corporate Bonds Issue in 2006 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 200,000 |
| — |
| — |
| — |
| 200,000 |
| 200,000 |
| — |
| — |
| — |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
| (Note 2) |
| (Note 2) |
|
|
|
|
|
|
| ||||||
|
|
|
| Yuanta Securities Co., Ltd. 1st Unsecured Corporate Bonds-B Issue in 2007 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 400,000 |
| — |
| — |
| — |
| 200,000 |
| 200,000 |
| — |
| — |
| 200,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
| (Note 2) |
| (Note 2) |
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| Yuanta FHC 1st Unsecured Corporate Bonds-A Issue in 2007 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 100,000 |
| — |
| — |
| — |
| 100,000 |
| 100,000 |
| — |
| — |
| — |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
| (Note 2) |
| (Note 2) |
|
|
|
|
|
|
| ||||||
|
|
|
| China Steel Corporation 2nd Unsecured Corporate Bonds-A Issue in 2008 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 100,000 |
| — |
| 100,000 |
| — |
| — |
| — |
| — |
| — |
| 200,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| China Steel Corporation 2nd Unsecured Corporate Bonds-B Issue in 2008 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 500,000 |
| — |
| — |
| — |
| — |
| — |
| 500,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| Taiwan Power Co. 2nd Unsecured Corporate Bond-B Issue in 2008 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 150,000 |
| — |
| — |
| — |
| — |
| — |
| 150,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| Taiwan Power Co. 3rd Unsecured Corporate Bond-A Issue in 2008 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 150,000 |
| — |
| — |
| — |
| 150,000 |
| 150,000 |
| — |
| — |
| — |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
| (Note 2) |
| (Note 2) |
|
|
|
|
|
|
| ||||||
|
|
|
| Taiwan Power Co. 4th Unsecured Corporate Bond-A Issue in 2008 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 300,000 |
| — |
| — |
| — |
| 300,000 |
| 300,000 |
| — |
| — |
| — |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
| (Note 2) |
| (Note 2) |
|
|
|
|
|
|
| ||||||
|
|
|
| Taiwan Power Co. 5th Unsecured Corporate Bond-A Issue in 2008 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 270,000 |
| — |
| — |
| — |
| 270,000 |
| 270,000 |
| — |
| — |
| — |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
| (Note 2) |
| (Note 2) |
|
|
|
|
|
|
| ||||||
|
|
|
| Taiwan Power Co. 7th Unsecured Corporate Bond-A Issue in 2008 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 150,000 |
| — |
| — |
| — |
| — |
| — |
| 150,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| Mega Financial Holding Co., Ltd. 1st Unsecured Corporate Bond Issue in 2008 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 300,000 |
| — |
| — |
| — |
| 300,000 |
| 300,000 |
| — |
| — |
| — |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
| (Note 2) |
| (Note 2) |
|
|
|
|
|
|
| ||||||
|
|
|
| Taiwan Power Co. 2nd Unsecured Corporate Bond-B Issue in 2009 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 100,000 |
| — |
| — |
| — |
| — |
| — |
| 100,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| Taiwan Power Co. 5th Unsecured Corporate Bond-B Issue in 2009 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 100,000 |
| — |
| — |
| — |
| — |
| — |
| 100,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| NAN YA Company 1st Unsecured Corporate Bond Issue in 2009 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 300,000 |
| — |
| 300,000 |
| — |
| — |
| — |
| — |
| — |
| 600,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
|
|
|
| MLPC 1st Unsecured Corporate Bond Issue in 2008 Bond-A Issue in 2007 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 200,000 |
| — |
| 300,000 |
| — |
| — |
| — |
| — |
| — |
| 500,000 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||
(Continued)
|
|
|
|
|
|
|
|
|
|
|
| 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) on |
| Shares |
| Amount |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
| Hon Hai Precision Industry Co., Ltd. First Debenture Issuing of 2009 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| $ | 175,000 |
| — |
| $ | 200,000 |
| — |
| $ | — |
| $ | — |
| $ | — |
| — |
| $ | 375,000 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| FCFC 2nd Unsecured Corporate Bonds Issue in 2010 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 200,000 |
| — |
| 100,000 |
| — |
| — |
| — |
| — |
| — |
| 300,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| TaipeiFubon Bank 5th Financial Debenturees-A Issue in 2010 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 300,000 |
| — |
| 300,000 |
| — |
| — |
| — |
| — |
| — |
| 600,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2010 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 300,000 |
| — |
| 100,000 |
| — |
| — |
| — |
| — |
| — |
| 400,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| Taiwan Power Co. 2nd Secured Corporate Bond-A Issue in 2010 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 100,000 |
| — |
| — |
| — |
| — |
| — |
| 100,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| Taiwan Power Co. 4th Secured Corporate Bond-A Issue in 2010 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| 300,000 |
| — |
| 300,000 |
| — |
| — |
| — |
| — |
| — |
| 600,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| China Development Holding Corporation 1st Unsecured Corporate Bond-A Issue in 2009 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 200,000 |
| — |
| — |
| — |
| — |
| — |
| 200,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| Yuanta FHC 1st Unsecured Corporate Bonds-A Issue in 2011 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 300,000 |
| — |
| — |
| — |
| — |
| — |
| 300,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| China Steel Corporation 1st Unsecured Corporate Bonds-B Issue in 2011 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 100,000 |
| — |
| — |
| — |
| — |
| — |
| 100,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| FCFC 1st Unsecured Corporate Bonds Issue in 2011 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 300,000 |
| — |
| — |
| — |
| — |
| — |
| 300,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| TSMC 1st Unsecured Corporate Bond-A Issue in 2011 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 300,000 |
| — |
| — |
| — |
| — |
| — |
| 300,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| HSBC Bank (Taiwan) Limited 1st Financial Debenture-D Issue in 2011 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 300,000 |
| — |
| — |
| — |
| — |
| — |
| 300,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| Formosa Petrochemical Corporation 1st Unsecured Corporate Bonds Issue in 2011 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 150,000 |
| — |
| — |
| — |
| — |
| — |
| 150,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
| Formosa Petrochemical Corporation 3rd Unsecured Corporate Bonds Issue in 2011 |
| Held-to-maturity financial assets |
| - |
| - |
| — |
| — |
| — |
| 200,000 |
| — |
| — |
| — |
| — |
| — |
| 200,000 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
|
|
|
|
|
|
|
|
|
|
| (Note 2) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
1 |
| Senao International Co., Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
| Senao International (Samoa) Holding Ltd. |
| Investments accounted for using equity method |
| - |
| Subsidiary |
| 875 |
| 27,452 |
| 15,000 |
| 439,065 |
| — |
| — |
| — |
| — |
| 15,875 |
| 466,517 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| US$ | (875 | ) |
|
| US$ | (15,000 | ) |
|
|
|
|
|
|
|
|
|
| US$ | (15,875 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 3) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
| Beneficiary certificates (mutual fund) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
| Fuh Hwa Strategic High Income Fd of Fds |
| Available-for-sale financial assets |
| - |
| - |
| 5,000 |
| 50,000 |
| 6,649 |
| 75,000 |
| 11,649 |
| 129,594 |
| 125,000 |
| 4,594 |
| — |
| — |
| ||||||||
|
|
|
| Taishin Ta-Chong Money Market Fund |
| Available-for-sale financial assets |
| - |
| - |
| 3,691 |
| 50,000 |
| 3,676 |
| 50,000 |
| 7,367 |
| 100,380 |
| 100,000 |
| 380 |
| — |
| — |
| ||||||||
(Continued)
|
|
|
|
|
|
|
|
|
|
|
| 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) on |
| Shares |
| Amount |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
14 |
| Chunghwa Investment Holding Co., Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
| Giga Solar Materials Co., Ltd. |
| Available-for-sale financial assets |
| - |
| - |
| 333 |
| $ | 38,342 |
| 36 |
| $ | 16,962 |
| 196 |
| $ | 109,380 |
| $ | 23,469 |
| $ | 85,911 |
| 248 |
| $ | 31,835 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 5) |
| (Note 1) |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
22 |
| Senao International (Samoa) Holding Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
| Senao International HK Limited |
| Investments accounted for using equity method |
| - |
| Subsidiary |
| 180 |
| 5,647 |
| 15,000 |
| 439,065 |
| — |
| — |
| — |
| — |
| 15,180 |
| 466,517 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| US$ | (180 | ) |
|
| US$ | (15,000 | ) |
|
|
|
|
|
|
|
|
|
| US$ | (15,875 | ) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 3) |
| |||||||
|
| Senao International HK Limited |
| Senao Trading (Fujian) Co., Ltd. |
| Investments accounted for using equity method |
| - |
| Subsidiary |
| — |
| — |
| — |
| 116,821 |
| — |
| — |
| — |
| — |
| — |
| 116,821 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| US$ | (4,000 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| US$ | (4,000 | ) |
|
|
|
|
|
|
|
|
|
| (Note 3) |
| ||||||
|
|
|
| Senao International Trading (Shanghai) Co., Ltd. |
| Investments accounted for using equity method |
| - |
| Subsidiary |
| — |
| — |
| — |
| 148,413 |
| — |
| — |
| — |
| — |
| — |
| 148,413 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| US$ | (5,000 | ) |
|
|
|
|
|
|
|
|
|
| US$ | (5,000 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 3) |
| |||||||
|
|
|
| Senao International Trading (Jiangsu) Co., Ltd. |
| Investments accounted for using equity method |
| - |
| Subsidiary |
| — |
| — |
| — |
| 115,971 |
| — |
| — |
| — |
| — |
| — |
| 115,971 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| US$ | (4,000 | ) |
|
|
|
|
|
|
|
|
|
| US$ | (4,000 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 3) |
| |||||||
27 |
| Prime Asia Investments Group, Ltd. (B.V.I.) |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
| Chunghwa Hsingta Company Ltd. |
| Investments accounted for using equity method |
| - |
| Subsidiary |
| — |
| — |
| — |
| 206,089 |
| — |
| — |
| — |
| — |
| — |
| 187,896 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RMB | (45,448 | ) |
|
|
|
|
|
|
|
|
|
| RMB | (39,088 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 3) |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
29 |
| Chunghwa Hsingta Company Ltd. |
| Stocks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
| Chunghwa Telecom (China) Co., Ltd. |
| Investments accounted for using equity method |
| - |
| Subsidiary |
| — |
| — |
| — |
| 177,176 |
| — |
| — |
| — |
| — |
| — |
| 158,708 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RMB | (39,376 | ) |
|
|
|
|
|
|
|
|
|
| RMB | (33,016 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 3) |
| |||||||
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 equity in earnings or losses of equity method investees and cumulative transaction adjustments.
Note 4: The amount decrease was because of capital reduction.
Note 5: The amount includes the stock dividends $75 thousands distributed by Gigasolar Materials Corporation in 2011.
(Concluded)
TABLE 4
CHUNGHWA TELECOM CO., LTD.
ACQUISITION OF REAL ESTATE AMOUNTING AT COST OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
YEAR ENDED DECEMBER 31, 2011
(Amounts in Thousands of New Taiwan Dollars)
Company Name |
| Type of Property |
| Transaction Date |
| Original |
| Carrying |
| Transaction |
| Proceeds Collection |
| Gain (Loss) |
| Counter-party |
| Nature of |
| Purpose of |
| Price |
| Other Terms | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Chunghwa Telecom Co., Ltd. (Chunghwa) |
| Land |
| March 2011 |
| April 2000 |
| $ | 338,347 |
| $ | 647,717 |
| $615,331 was collected in March 2011; the rest of $32,386 was collected upon land delivery in May 2011 |
| $ | 305,280 |
| Taiwan Stock Exchange Corporation (TSE) |
| None |
| With the presence of TSE, to create cluster effect of IDC clients |
| In accordance with land valuation report and mutual agreement |
| — |
TABLE 5
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
YEAR ENDED DECEMBER 31, 2011
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Notes/Accounts Payable or |
| ||||
|
|
|
|
|
| Nature of |
| Transaction Details |
| Abnormal Transaction (Note 2) |
| 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 |
| Sales |
| $ | 831,109 |
| 1 |
| 30 days |
| — |
| — |
| $ | 726,051 |
| 3 |
|
|
|
|
|
|
|
|
|
|
| (Note 4) |
|
|
|
|
|
|
|
|
| (Note 5) |
|
|
| ||
|
|
|
|
|
|
|
| Purchase |
| 7,385,083 |
| 7 |
| 30-90 days |
| — |
| — |
| (1,222,386 | ) | (8 | ) | ||
|
|
|
|
|
|
|
|
|
| (Note 3) |
|
|
|
|
|
|
|
|
| (Note 6) |
|
|
| ||
|
|
|
| CHIEF Telecom Inc. |
| Subsidiary |
| Sales |
| 272,276 |
| — |
| 30 days |
| — |
| — |
| 30,852 |
| — |
| ||
|
|
|
|
|
|
|
|
|
| (Note 7) |
|
|
|
|
|
|
|
|
| (Note 8) |
|
|
| ||
|
|
|
|
|
|
|
| Purchase |
| 307,458 |
| — |
| 60 days |
| — |
| — |
| (46,849 | ) | — |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 9) |
|
|
| ||
|
|
|
| Chunghwa System Integration Co., Ltd. |
| Subsidiary |
| Purchase |
| 499,937 |
| — |
| 30 days |
| — |
| — |
| (704,538 | ) | (5 | ) | ||
|
|
|
|
|
|
|
|
|
| (Note 10) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Taiwan International Standard Electronics Co., Ltd. |
| Equity-method investee |
| Purchase |
| 493,875 |
| — |
| 30-90 days |
| — |
| — |
| (519,612 | ) | (3 | ) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Chunghwa Telecom Global Inc. |
| Subsidiary |
| Purchase |
| 243,584 |
| — |
| 90 days |
| — |
| — |
| (74,240 | ) | — |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Light Era Development Co., Ltd. |
| Subsidiary |
| Sales |
| 107,343 |
| — |
| — |
| — |
| — |
| — |
| — |
| ||
|
|
|
|
|
|
|
|
|
| (Note 11) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| So-net Entertainment Taiwan |
| Equity-method investee |
| Sales |
| 289,335 |
| — |
| 60 days |
| — |
| — |
| 11,263 |
| — |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| Donghwa Telecom Co., Ltd. |
| Subsidiary |
| Sales |
| 112,821 |
| — |
| 30 days |
| — |
| — |
| 32,472 |
| — |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
| Purchase |
| 106,327 |
| — |
| 30 days |
| — |
| — |
| (78,845 | ) | (1 | ) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| InfoExplorer Co., Ltd. |
| Equity-method investee |
| Purchase |
| 175,660 |
| — |
| 90 days |
| — |
| — |
| (120,165 | ) | (1 | ) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
| ST-Satellite Ventures Pte. Ltd |
| Equity-method investee |
| Purchase |
| 167,651 |
| — |
| — |
| — |
| — |
| (82,437 | ) | (1 | ) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
1 |
| Senao International Co., Ltd. |
| Chunghwa Telecom Co., Ltd. |
| Parent company |
| Sales |
| 7,427,731 |
| 27 |
| 30-90 days |
| — |
| — |
| 1,253,842 |
| 48 |
| ||
|
|
|
|
|
|
|
|
|
| (Note 3) |
|
|
|
|
|
|
|
|
| (Note 6) |
|
|
| ||
|
|
|
|
|
|
|
| Purchase |
| 782,839 |
| 3 |
| 30 days |
| — |
| — |
| (44,874 | ) | — |
| ||
|
|
|
|
|
|
|
|
|
| (Note 4) |
|
|
|
|
|
|
|
|
| (Note 5) |
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
2 |
| CHIEF Telecom Inc. |
| Chunghwa Telecom Co., Ltd. |
| Parent company |
| Sales |
| 307,458 |
| 2 |
| 60 days |
| — |
| — |
| 48,728 |
| 33 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Note 9) |
|
|
| ||
|
|
|
|
|
|
|
| Purchase |
| 270,897 |
| 28 |
| 30 days |
| — |
| — |
| (30,223 | ) | (26 | ) | ||
|
|
|
|
|
|
|
|
|
| (Note 7) |
|
|
|
|
|
|
|
|
| (Note 8) |
|
|
| ||
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Notes/Accounts Payable or |
| ||||
|
|
|
|
|
| Nature of |
| Transaction Details |
| Abnormal Transaction (Note 2) |
| Ending Balance |
|
|
| ||||||||||
No. |
| Company Name |
| Related Party |
| Relationship |
| Purchase/Sale |
| Amount |
| % to Total |
| Payment Terms |
| Units Price |
| Payment Terms |
| (Note 1) |
| % to Total |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
3 |
| Chunghwa System Integration Co., Ltd. |
| Chunghwa Telecom Co., Ltd. |
| Parent company |
| Sales |
| $ | 2,167,860 |
| 90 |
| 30 days |
| — |
| — |
| $ | 704,538 |
| 91 |
|
|
|
|
|
|
|
|
|
|
| (Note 10) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
5 |
| Chunghwa Telecom Global Inc. |
| Chunghwa Telecom Co., Ltd. |
| Parent company |
| Sales |
| 243,584 |
| — |
| 90 days |
| — |
| — |
| 74,240 |
| 88 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
6 |
| Donghwa Telecom Co., Ltd. |
| Chunghwa Telecom Co., Ltd. |
| Parent company |
| Sales |
| 106,327 |
| — |
| 30 days |
| — |
| — |
| 78,845 |
| 41 |
| ||
|
|
|
|
|
|
|
| Purchase |
| 112,821 |
| — |
| 30 days |
| — |
| — |
| (32,472 | ) | 19 |
| ||
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 Chunghwa Telecom Co., Ltd. classified the amount as inventories, and property, plant and equipment.
Note 4: The difference was because Senao International Co., Ltd. classified the amount as operating expenses.
Note 5: The difference was because Senao International Co., Ltd. classified the amount as other payable.
Note 6: The difference was because Chunghwa Telecom Co., Ltd. classified the amount as amounts collected in trust for others.
Note 7: The difference was because CHIEF Telecom Inc. classified the amount as operating expenses and property, plant and equipment.
Note 8: The difference was because CHIEF Telecom Inc. classified the amount as other current liabilities.
Note 9: The difference was because CHIEF Telecom Inc. classified the amounts collected in trust for others.
Note 10: The difference was because Chunghwa Telecom Co., Ltd. classified the amount as inventories, property, plant and equipment, and intangible assets.
Note 11: The difference was because Light Era Development Co., Ltd. classified the amount as intangible assets, construction in progress and operating expenses.
(Concluded)
TABLE 6
CHUNGHWA TELECOM CO., LTD.
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
DECEMBER 31, 2011
(Amounts in Thousands of New Taiwan Dollars)
|
|
|
|
|
|
|
|
|
| Turnover |
| Overdue |
| Amounts Received |
| Allowance for |
| ||||||
No. |
| Company Name |
| Related Party |
| Nature of Relationship |
| Ending Balance |
| (Note 1) |
| Amounts |
| Action Taken |
| Period |
| Bad Debts |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
0 |
| Chunghwa Telecom Co., Ltd. |
| Senao International Co., Ltd. |
| Subsidiary |
| $ | 726,051 |
| 12.60 |
| $ | — |
| — |
| $ | 721,876 |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
1 |
| Senao International Co., Ltd. |
| Chunghwa Telecom Co., Ltd. |
| Parent company |
| 1,588,343 |
| 7.19 |
| — |
| — |
| 1,588,343 |
| — |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
3 |
| Chunghwa System Integration Co., Ltd. |
| Chunghwa Telecom Co., Ltd. |
| Parent company |
| 704,538 |
| 3.49 |
| — |
| — |
| 697,876 |
| — |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
4 |
| Chunghwa International Yellow Pages Co., Ltd. |
| Chunghwa Telecom Co., Ltd. |
| Parent company |
| 124,256 |
| 1.04 |
| — |
| — |
| 122,695 |
| — |
| ||||
Note 1: Payments and receipts collected in trust for others are excluded from the accounts receivable for calculating the turnover rate.
TABLE 7
CHUNGHWA TELECOM CO., LTD.
NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES IN WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE
YEAR ENDED DECEMBER 31, 2011
(Amounts in Thousands of New Taiwan Dollars, Unless Otherwise Specified)
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of December 31, 2011 |
|
|
| Recognized Gain |
|
|
| ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| Original Investment Amount |
|
|
| Percentage of |
|
|
| Net Income (Loss) |
| (Loss) |
|
|
| ||||||||||||||||
No. |
| Investor Company |
| Investee Company |
| Location |
| Main Businesses and Products |
| December 31, 2011 |
| December 31, 2010 |
| Shares (Thousands) |
| Ownership (%) |
| Carrying Value |
| of the Investee |
| (Notes 1 and 2) |
| 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 |
| $ | 1,542,361 |
| $ | 1,383,040 |
| $ | 389,424 |
| Subsidiary |
| |||||||||
|
|
|
| Light Era Development Co., Ltd. |
| Taiwan |
| Housing, office building development, rent and sale services |
| 3,000,000 |
| 3,000,000 |
| 300,000 |
| 100 |
| 4,222,858 |
| 1,252,890 |
| 1,251,383 |
| 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 |
| 1,742,779 |
| 28,454 |
| 24,922 |
| Subsidiary |
| ||||||||||||||
|
|
|
| Donghwa Telecom Co., Ltd. |
| Hong Kong |
| International telecommunications IP fictitious internet and internet transfer services |
| 882,219 |
| 522,003 |
| 223,190 |
| 100 |
| 891,526 |
| (9,358 | ) | (9,358 | ) | Subsidiary |
| ||||||||||||||
|
|
|
| Chunghwa System Integration Co., Ltd. |
| Taiwan |
| Providing communication and information aggregative services |
| 838,506 |
| 838,506 |
| 60,000 |
| 100 |
| 708,745 |
| 49,929 |
| 28,797 |
| Subsidiary |
| ||||||||||||||
|
|
|
| Chunghwa Telecom Singapore Pte., Ltd. |
| Singapore |
| Telecommunication wholesale, internet transfer services international data and long distance call wholesales to carriers |
| 574,112 |
| 1,389,939 |
| 26,383 |
| 100 |
| 659,128 |
| 51,503 |
| 51,503 |
| 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 |
| 608,933 |
| 644,765 |
| 158,205 |
| Equity-method investee |
| ||||||||||||||
|
|
|
| CHIEF Telecom Inc. |
| Taiwan |
| Internet communication and internet data center (“IDC”) service |
| 482,165 |
| 482,165 |
| 37,942 |
| 69 |
| 574,283 |
| 150,467 |
| 106,974 |
| Subsidiary |
| ||||||||||||||
|
|
|
| InfoExplorer Co., Ltd. |
| Taiwan |
| IT solution provider, IT application consultation, system integration and package solution |
| 283,500 |
| 283,500 |
| 22,498 |
| 33 |
| 257,371 |
| 536 |
| (17,543 | ) | Equity-method investee |
| ||||||||||||||
|
|
|
| Viettel-CHT Co., Ltd. |
| Vietnam |
| IDC services |
| 288,327 |
| 288,327 |
| — |
| 30 |
| 255,121 |
| 57,514 |
| 17,262 |
| Equity-method investee |
| ||||||||||||||
|
|
|
| Huada Digital Corporation |
| Taiwan |
| Providing software service |
| 250,000 |
| — |
| 25,000 |
| 50 |
| 250,689 |
| 1,322 |
| 689 |
| Equity-method investee |
| ||||||||||||||
|
|
|
| Chunghwa International Yellow Pages Co., Ltd. |
| Taiwan |
| Yellow pages sales and advertisement services |
| 150,000 |
| 150,000 |
| 15,000 |
| 100 |
| 194,344 |
| 38,619 |
| 38,619 |
| Subsidiary |
| ||||||||||||||
|
|
|
| Prime Asia Investments Group Ltd. (B.V.I.) |
| British Virgin Islands |
| Investment |
| 206,089 |
| — |
| 6,960 |
| 100 |
| 187,755 |
| (29,047 | ) | (29,187 | ) | Subsidiary |
| ||||||||||||||
|
|
|
| Skysoft Co., Ltd. |
| Taiwan |
| Providing of music on-line, software, electronic information, and advertisement services |
| 67,025 |
| 67,025 |
| 4,438 |
| 30 |
| 113,304 |
| 96,047 |
| 26,955 |
| Equity-method investee |
| ||||||||||||||
|
|
|
| Dian Zuan Integrating Marketing Co., Ltd. |
| Taiwan |
| Information technology service and general advertisement service |
| 114,640 |
| — |
| 11,464 |
| 40 |
| 109,783 |
| (12,142 | ) | (4,857 | ) | Equity-method investee |
| ||||||||||||||
|
|
|
| Spring House Entertainment Tech. Inc. |
| Taiwan |
| Network services, producing digital entertainment contents and broadband visual sound terrace development |
| 62,209 |
| 62,209 |
| 5,996 |
| 56 |
| 101,142 |
| 50,669 |
| 24,991 |
| Subsidiary |
| ||||||||||||||
|
|
|
| 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 |
| 86,433 |
| 16,880 |
| 19,013 |
| Subsidiary |
| ||||||||||||||
|
|
|
| KingWay Technology Co., Ltd. |
| Taiwan |
| Publishing books, data processing and software services |
| 71,770 |
| 71,770 |
| 1,703 |
| 33 |
| 75,369 |
| 51,289 |
| 11,479 |
| Equity-method investee |
| ||||||||||||||
|
|
|
| Smartfun Digital Co., Ltd. |
| Taiwan |
| Software retail |
| 65,000 |
| — |
| 6,500 |
| 65 |
| 60,125 |
| (7,427 | ) | (4,875 | ) | Subsidiary |
| ||||||||||||||
|
|
|
| Chunghwa Telecom Vietnam Co., Ltd. |
| Vietnam |
| Information and communications technology, international circuit, and intelligent energy network service |
| 43,847 |
| — |
| — |
| 100 |
| 37,564 |
| (5,363 | ) | (5,363 | ) | Subsidiary |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| VND | (30,921,368 | ) |
|
|
|
|
|
| VND | (28,188,004 | ) | VND | ((2,738,996 | )) | VND | ((2,738,996 | )) |
|
| ||||||||||
|
|
|
| So-net Entertainment Taiwan |
| Taiwan |
| Online service and sale of computer hardware |
| 60,008 |
| 60,008 |
| 3,429 |
| 30 |
| 34,545 |
| 30,954 |
| 9,348 |
| 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 |
| 22,439 |
| 8,732 |
| 8,732 |
| Subsidiary |
| ||||||||||||||
|
|
|
| Chunghwa Sochamp Technology Inc. |
| Taiwan |
| License plate recognition system |
| 20,400 |
| — |
| 2,040 |
| 51 |
| 20,351 |
| 217 |
| (49 | ) | Subsidiary |
| ||||||||||||||
|
|
|
| New Prospect Investments Holdings Ltd. (B.V.I.) |
| British Virgin Islands |
| Investment |
| — |
| — |
| — |
| 100 |
| — |
| — |
| — |
| Subsidiary |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| (Note 3) |
| (Note 3) |
|
|
|
|
| (Note 3) |
|
|
| (Note 3) |
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
1 |
| Senao International Co., Ltd. |
| Senao Networks, Inc. |
| Taiwan |
| Telecommunication facilities manufactures and sales |
| 206,190 |
| 206,190 |
| 16,824 |
| 41 |
| 345,505 |
| 170,048 |
| 69,726 |
| Equity-method investee |
| ||||||||||||||
|
|
|
| Senao International (Samoa) Holding Ltd. |
| Samoa Islands |
| International investment |
| 466,517 |
| 27,452 |
| 15,875 |
| 100 |
| 313,515 |
| (166,649 | ) | (166,567 | ) | Subsidiary |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (15,875 | ) | US$ | (875 | ) |
|
|
|
| US$ | (10,350 | ) | US$ | ((5,670 | )) | US$ | ((5,668 | )) |
|
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
2 |
| CHIEF Telecom Inc. |
| Unigate Telecom Inc. |
| Taiwan |
| Telecommunication and internet service |
| $ | 2,000 |
| $ | 2,000 |
| 200 |
| 100 |
| $ | 1,804 |
| $ | (132 | ) | $ | (132 | ) | Subsidiary |
| |||||||||
|
|
|
| Chief International Corp. |
| Samoa Islands |
| Network communication and engine room hiring |
| 6,068 |
| 6,068 |
| 200 |
| 100 |
| 10,211 |
| 1,874 |
| 1,874 |
| Subsidiary |
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (200 | ) | US$ | (200 | ) |
|
|
|
| US$ | (337 | ) | US$ | (64 | ) | US$ | (64 | ) |
|
| |||||||||
(Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of December 31, 2011 |
|
|
| Recognized Gain |
|
|
| ||||||||||||||
|
|
|
|
|
|
|
|
|
| Original Investment Amount |
|
|
| Percentage of |
|
|
| Net Income (Loss) |
| (Loss) |
|
|
| ||||||||||||
No. |
| Investor Company |
| Investee Company |
| Location |
| Main Businesses and Products |
| December 31, 2011 |
| December 31, 2010 |
| Shares (Thousands) |
| Ownership (%) |
| Carrying Value |
| of the Investee |
| (Notes 1 and 2) |
| Note |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
3 |
| Chunghwa System Integrated Co., Ltd. |
| Concord Technology Co., Ltd. |
| Brunei |
| Providing advanced business solutions to telecommunications |
| 31,973 |
| 31,973 |
| 1,010 |
| 100 |
| 6,875 |
| (4,341 | ) | (4,341 | ) | Subsidiary |
| ||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (1,010 | ) | US$ | (1,010 | ) |
|
|
|
| RMB | (1,430 | ) | RMB | ((951 | )) | RMB | ((951 | )) |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
7 |
| Spring House Entertainment Tech. Inc. |
| Ceylon Innovation Co., Ltd. |
| Taiwan |
| International trading, general advertisement and book publishment service |
| 1,000 |
| — |
| — |
| 100 |
| 954 |
| (46 | ) | (46 | ) | 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 |
| 2,828,083 |
| 49,014 |
| 3,903 |
| 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 |
| 462,161 |
| 123,773 |
| 53,984 |
| Equity-method |
| ||||||||||
|
|
|
|
|
|
|
|
|
| SG$ | (18,102 | ) | SG$ | (18,102 | ) |
|
|
|
| SG$ | (19,827 | ) | SG$ | (5,294 | ) | SG$ | (2,309 | ) | 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 |
| 122,333 |
| 11,892 |
| 6,353 |
| Subsidiary |
| ||||||||||
|
|
|
| Chunghwa Investment Holding Co., Ltd. |
| Burnei |
| General investment |
| 34,483 |
| 34,483 |
| 1,043 |
| 100 |
| 11,372 |
| (7,366 | ) | (7,366 | ) | Subsidiary |
| ||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (1,043 | ) | US$ | (1,043 | ) |
|
|
|
| US$ | (376 | ) | US$ | ((251 | )) | US$ | ((251 | )) |
|
| |||||
|
|
|
| Panda Monium Company Ltd. |
| Cayman |
| The production of animation |
| 20,000 |
| 20,000 |
| 602 |
| 43 |
| — |
| — |
| — |
| Equity-method investee |
| ||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (602 | ) | US$ | (602 | ) |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
|
| CHIEF Telecom Inc. |
| Taiwan |
| Telecommunication and internet service |
| 20,000 |
| 20,000 |
| 2,000 |
| 4 |
| 26,966 |
| 150,467 |
| 5,507 |
| Equity-method investee |
| ||||||||||
|
|
|
| Senao International Co., Ltd. |
| Taiwan |
| Selling and maintaining mobile phones and its peripheral products |
| 49,731 |
| 49,731 |
| 1,001 |
| — |
| 48,841 |
| 1,383,040 |
| 3,470 |
| Equity-method investee |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
18 |
| Concord Technology Co., Ltd. |
| Glory Network System Service (Shanghai) Co., Ltd. |
| China |
| Providing advanced business solutions to telecommunications |
| 31,973 |
| 31,973 |
| 1,010 |
| 100 |
| 6,875 |
| (4,341 | ) | (4,341 | ) | Subsidiary |
| ||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (1,010 | ) | US$ | (1,010 | ) |
|
|
|
| RMB | (1,430 | ) | RMB | ((951 | ) | RMB | ((951 | ) |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
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 |
| 100 |
| 8,350 |
| (3,514 | ) | (3,514 | ) | Subsidiary |
| ||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (400 | ) | US$ | (400 | ) |
|
|
|
| US$ | (276 | ) | US$ | ((120 | )) | US$ | ((120 | )) |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
22 |
| Senao International (Samoa) Holding Ltd. |
| Senao International HK Limited |
| Hong Kong |
| Sales of communication business |
| 444,712 |
| 5,647 |
| 15,180 |
| 100 |
| 292,039 |
| (168,649 | ) | (168,649 | ) | Subsidiary |
| ||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (15,180 | ) | US$ | (180 | ) |
|
|
|
| US$ | (9,641 | ) | US$ | ((5,738 | )) | US$ | ((5,738 | )) |
|
| |||||
|
|
|
| HopeTech Technologies Limited |
| Hong Kong |
| Information technology and telecommunication products sales |
| 21,177 |
| 21,177 |
| 5,240 |
| 45 |
| 21,511 |
| (2,811 | ) | (1,264 | ) | Equity-method |
| ||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (675 | ) | US$ | (675 | ) |
|
|
|
| US$ | (710 | ) | US$ | ((96 | )) | US$ | ((43 | )) | investee |
| |||||
24 |
| Chunghwa Investment Holding Co., Ltd. |
| CHI One Investment Co., Limited |
| Hong Kong |
| General investment |
| 14,483 |
| 14,483 |
| 3,500 |
| 100 |
| 1,192 |
| (7,341 | ) | (7,341 | ) | Subsidiary |
| ||||||||||
|
|
|
|
|
|
|
|
|
| HK$ | (3,924 | ) | HK$ | (3,924 | ) |
|
|
|
| HK$ | (306 | ) | HK$ | ((1,944 | )) | HK$ | ((1,944 | )) |
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
26 |
| CHI One Investment Co., Limited |
| Xiamen Sertec Business Technology Co., Ltd. |
| China |
| Customer Services and platform rental activities |
| 13,862 |
| 13,862 |
| — |
| 49 |
| 698 |
| (14,853 | ) | (7,279 | ) | Equity-method |
| ||||||||||
|
|
|
|
|
|
|
|
|
| RMB | (2,963 | ) | RMB | (2,963 | ) |
|
|
|
| RMB | (145 | ) | RMB | ((3,252 | )) | RMB | ((1,594 | )) | investee |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
23 |
| Senao International HK Limited |
| Senao Trading (Fujian) Co., Ltd. |
| China |
| Information technology services and sale of communication products |
| 116,821 |
| — |
| — |
| 100 |
| 73,475 |
| (47,942 | ) | (47,942 | ) | Subsidiary |
| ||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (4,000 | ) |
|
|
|
|
|
| US$ | (2,426 | ) | US$ | ((1,631 | )) | US$ | ((1,631 | )) |
|
| ||||||
|
|
|
| Senao International Trading (Shanghai) Co., Ltd. |
| China |
| Information technology services and sale of communication products |
| 148,413 |
| — |
| — |
| 100 |
| 80,136 |
| (71,229 | ) | (71,229 | ) | Subsidiary |
| ||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (5,000 | ) |
|
|
|
|
|
| US$ | (2,646 | ) | US$ | ((2,423 | )) | US$ | ((2,423 | )) |
|
| ||||||
|
|
|
| Senao International Trading (Shanghai) Co., Ltd. |
| China |
| Information technology services and sale of communication products |
| 57,860 |
| — |
| — |
| 100 |
| 59,370 |
| (2,703 | ) | (2,703 | ) | Subsidiary |
| ||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (2,000 | ) |
|
|
|
|
|
| US$ | (1,960 | ) | US$ | ((92 | )) | US$ | ((92 | )) | (Note 4) |
| ||||||
|
|
|
| Senao International Trading (Jiangsu) Co., Ltd. |
| China |
| Information technology services and sale of communication products |
| 115,971 |
| — |
| — |
| 100 |
| 78,438 |
| (43,101 | ) | (43,101 | ) | Subsidiary |
| ||||||||||
|
|
|
|
|
|
|
|
|
| US$ | (4,000 | ) |
|
|
|
|
|
| US$ | (2,590 | ) | US$ | ((1,466 | )) | US$ | ((1,466 | )) |
|
| ||||||
27 |
| Prime Asia Investments Group, Ltd. (B.V.I.) |
| Chunghwa Hsingta Co., Ltd. |
| Hong Kong |
| Investment |
| $ | 206,089 |
| $ | — |
| — |
| 100 |
| $ | 187,896 |
| $ | (29,046 | ) | $ | (29,046 | ) | Subsidiary |
| |||||
|
|
|
|
|
|
|
|
|
| RMB | (45,448 | ) |
|
|
|
|
|
| RMB | (39,088 | ) | RMB | ((6,360 | )) | RMB | ((6,360 | )) |
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
29 |
| Chunghwa Hsingta Co., Ltd. |
| Chunghwa Telecom (China) Co ., Ltd. |
| China |
| Planning and design of energy conservation and software and hareware system services, and intergartion of information system |
| 177,176 |
| — |
| — |
| 100 |
| 158,708 |
| (29,046 | ) | (29,046 | ) | Subsidiary |
| ||||||||||
|
|
|
|
|
|
|
|
|
| RMB | (39,376 | ) |
|
|
|
|
|
| RMB | (33,016 | ) | RMB | ((6,360 | )) | RMB | ((6,360 | )) |
|
| ||||||
Note 1: The equity in net income (loss) of investees was based on audited financial statements.
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 have not yet begun operation as of December 31, 2011.
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.
TABLE 8
CHUNGHWA TELECOM CO., LTD.
INVESTMENT IN MAINLAND CHINA
YEAR ENDED DECEMBER 31, 2011
(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, 2011 |
| Outflow |
| Inflow |
| 2011 |
| Investment |
| (Note 2) |
| 2011 |
| 2011 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Glory Network System Service (Shanghai) Co., Ltd. |
| Providing advanced business solutions to telecommunications |
| $ | 31,973 |
| Note 1 |
| $ | 31,973 |
| $ | — |
| $ | — |
| $ | 31,973 |
| 100 | % | $ | (4,341 | ) | $ | 6,875 |
| $ | — |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Xiamen Sertec Business Technology Co., Ltd. |
| Customer services and platform rental activities |
| 28,282 |
| Note 1 |
| 13,862 |
| — |
| — |
| 13,862 |
| 49 | % | (7,279 | ) | 698 |
| — |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senao Trading (Fujian) Co., Ltd. |
| Information technology services and sale of communication products |
| 116,821 |
| Note 1 |
| — |
| 116,821 |
| — |
| 116,821 |
| 100 | % | (47,942 | ) | 73,475 |
| — |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senao International Trading (Shanghai) Co., Ltd. |
| Information technology services and sale of communication products |
| 148,413 |
| Note 1 |
| — |
| 148,413 |
| — |
| 148,413 |
| 100 | % | (71,229 | ) | 80,136 |
| — |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
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 | % | (2,703 | ) | 59,370 |
| — |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Senao International Trading (Jiangsu) Co., Ltd. |
| Information technology services and sale of communication products |
| 115,971 |
| Note 1 |
| — |
| 115,971 |
| — |
| 115,971 |
| 100 | % | (43,101 | ) | 78,438 |
| — |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Chunghwa Telecom (China) Co., Ltd. |
| Energy conserving and providing installation, design and maintenance services |
| 177,176 |
| Note 1 |
| — |
| 177,176 |
| — |
| 177,176 |
| 100 | % | (29,046 | ) | 158,708 |
| — |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Jiangsu Zhenhua Information Technology Company, LLC. |
| Intelligent energy conserving and intelligent building services |
| — |
| Note 1 |
| — |
| 28,912 |
| — |
| 28,912 |
| 75 | % | — (Note 7) |
| 28,912 (Note 7) |
| — |
| ||||||||
(Continued)
Accumulated Investment in |
| Investment Amounts Authorized |
| Upper Limit on Investment |
| |||
Mainland China as of |
| by Investment Commission, |
| Stipulated by Investment |
| |||
December 31, 2011 |
| MOEA |
| Commission, MOEA |
| |||
|
|
|
|
|
| |||
$ | 31,973 |
| $ | 48,169 |
| $ | 405,048 |
|
US$ | (1,010 | ) | US$ | (1,500 | ) | (Note 3) |
| |
| 13,862 |
|
| 79,882 |
| 1,277,573 |
| |
US$ | (431 | ) | US$ | (2,500 | ) | (Note 4) |
| |
| 439,065 |
|
| 439,065 |
| 3,091,691 |
| |
US$ | (15,000 | ) | US$ | (15,000 | ) | (Note 5) |
| |
| 177,176 |
|
| 177,176 |
| 223,825,589 |
| |
US$ | (6,000 | ) | US$ | (6,000 | ) | (Note 6) |
| |
| 28,912 |
|
| 141,077 |
| 223,825,589 |
| |
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 investee’s audited financial statements.
Note 3: The amount was calculated based on the 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: Prepayment for long-term investment, NT$28,912 thousands, was injected in Jiangsu Zhenhua in December 2011. Jiangsu Zhenhua has not completed its registration on December 31, 2011.
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.
TABLE 9
CHUNGHWA TELECOM CO., LTD.
SEGMENT INFORMATION
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
(Amount in Thousands of New Taiwan Dollars)
|
| Domestic Fixed |
| Mobile |
| Internet Business |
| International |
| Others |
| Adjustment |
| Total |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Year ended December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenues from external customers |
| $ | 79,596,975 |
| $ | 73,670,839 |
| $ | 23,907,744 |
| $ | 15,048,946 |
| $ | 237,600 |
| $ | — |
| $ | 192,462,104 |
|
Intersegment revenues (Note 2) |
| 15,058,063 |
| 6,917,665 |
| 1,786,850 |
| 1,611,001 |
| 668 |
| (25,374,247 | ) | — |
| |||||||
Interest income |
| 4,401 |
| 97 |
| 644 |
| 1,079 |
| 648,859 |
| — |
| 655,080 |
| |||||||
Other income |
| 515,470 |
| 36,359 |
| 840 |
| 899,669 |
| 2,243,152 |
| — |
| 3,695,490 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
| $ | 95,174,909 |
| $ | 80,624,960 |
| $ | 25,696,078 |
| $ | 17,560,695 |
| $ | 3,130,279 |
| $ | (25,374,247 | ) | $ | 196,812,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Interest expense |
| $ | 169 |
| $ | 11 |
| $ | 3 |
| $ | 1 |
| $ | 38 |
| $ | — |
| $ | 222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Depreciation and amortization |
| $ | 20,138,758 |
| $ | 8,157,650 |
| $ | 2,138,366 |
| $ | 1,259,428 |
| $ | 219,858 |
| $ | — |
| $ | 31,914,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Other expense |
| $ | 14,863 |
| $ | 4,710 |
| $ | 979 |
| $ | 2,321 |
| $ | 189,059 |
| $ | — |
| $ | 211,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Segment income before tax |
| $ | 18,481,679 |
| $ | 26,248,914 |
| $ | 9,404,326 |
| $ | 2,018,612 |
| $ | (774,893 | ) | $ | — |
| $ | 55,378,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total assets |
| $ | 227,866,308 | �� | $ | 58,024,956 |
| $ | 19,137,318 |
| $ | 22,848,593 |
| $ | 105,420,695 |
| $ | — |
| $ | 433,297,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Capital expenditures for segment assets |
| $ | 16,569,480 |
| $ | 4,258,614 |
| $ | 3,637,400 |
| $ | 1,409,548 |
| $ | 609,427 |
| $ | — |
| $ | 26,484,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Year ended December 31, 2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Revenues from external customers |
| $ | 70,851,943 |
| $ | 76,185,340 |
| $ | 23,592,536 |
| $ | 15,557,015 |
| $ | 224,109 |
| $ | — |
| $ | 186,410,943 |
|
Intersegment revenues (Note 2) |
| 14,492,338 |
| 2,047,870 |
| 1,010,260 |
| 1,562,581 |
| 1,816 |
| (19,114,865 | ) | — |
| |||||||
Interest income |
| 1,065 |
| 728 |
| 1,111 |
| 603 |
| 442,736 |
| (349 | ) | 445,894 |
| |||||||
Other income |
| 36,602 |
| 154,438 |
| 16,931 |
| 95,548 |
| 905,882 |
| (170,104 | ) | 1,039,297 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
| $ | 85,381,948 |
| $ | 78,388,376 |
| $ | 24,620,838 |
| $ | 17,215,747 |
| $ | 1,574,543 |
| $ | (19,285,318 | ) | $ | 187,896,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Interest expense |
| $ | 75,105 |
| $ | 508 |
| $ | 140 |
| $ | 54 |
| $ | — |
| $ | (349 | ) | $ | 75,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Depreciation and amortization |
| $ | 21,947,782 |
| $ | 8,080,515 |
| $ | 2,075,907 |
| $ | 1,369,406 |
| $ | 174,320 |
| $ | — |
| $ | 33,647,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Other expense |
| $ | 284,462 |
| $ | 10,424 |
| $ | 1,046 |
| $ | 191,775 |
| $ | 405,999 |
| $ | (170,104 | ) | $ | 723,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Segment income before tax |
| $ | 18,048,409 |
| $ | 27,933,263 |
| $ | 9,651,111 |
| $ | 2,617,614 |
| $ | (1,812,332 | ) | $ | — |
| $ | 56,438,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total assets |
| $ | 227,450,818 |
| $ | 57,125,409 |
| $ | 16,434,019 |
| $ | 21,608,356 |
| $ | 121,768,377 |
| $ | — |
| $ | 444,386,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Capital expenditures for segment assets |
| $ | 14,259,706 |
| $ | 5,237,274 |
| $ | 1,794,855 |
| $ | 1,654,047 |
| $ | 1,357,596 |
| $ | — |
| $ | 24,303,478 |
|
(Continued)
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.
Note 3: According to Regulations Governing Network Interconnection among Telecommunications Enterprises Article 20, ownership of the tariffs for the communications between mobile telecommunications network and fixed telecommunications network except for international communications shall follow the following principles:
The tariff is collected from the call-originating subscribers by the call-originating telecommunications enterprises pursuant to the pricing of the mobile telecommunications network enterprises, and the revenue from the tariff belongs to the mobile telecommunications network enterprises. However, from January 1, 2011, the tariff shall be both priced and collected from the call-originating subscribers by the call-originating telecommunications enterprise; revenue from the tariff shall belong to the call-originating telecommunications enterprises as well.
(Concluded)
TABLE 10
CHUNGHWA TELECOM CO., LTD.
PRODUCTS AND SERVICE REVENUES
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
(Amount in Thousands of New Taiwan Dollars)
|
| Year Ended December 31 |
| ||||
|
| 2011 |
| 2010 |
| ||
|
|
|
|
|
| ||
Mobile services revenue |
| $ | 70,779,411 |
| $ | 72,960,755 |
|
Local telephone services revenue |
| 42,956,117 |
| 33,248,675 |
| ||
Leased line services revenue |
| 27,036,649 |
| 27,530,898 |
| ||
Internet services revenue |
| 21,152,593 |
| 21,143,817 |
| ||
International long distance telephone services revenue |
| 12,214,117 |
| 12,785,515 |
| ||
Domestic long distance telephone services revenue |
| 5,796,342 |
| 6,653,479 |
| ||
Others |
| 12,526,875 |
| 12,087,804 |
| ||
|
|
|
|
|
| ||
|
| $ | 192,462,104 |
| $ | 186,410,943 |
|