Exhibit 99.3
Chunghwa Telecom Co., Ltd. and Subsidiaries
Consolidated Financial Statements for the Nine Months Ended September 30, 2017 and 2016 |
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Millions of New Taiwan Dollars)
September 30, 2017 (Unaudited) | December 31, 2016 (Audited) | September 30, 2016 (Unaudited) | September 30, 2017 (Unaudited) | December 31, 2016 (Audited) | September 30, 2016 (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||||||||||||||||
ASSETS | LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||
CURRENT ASSETS | CURRENT LIABILITIES | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 25,466 | 6 | $ | 31,100 | 7 | $ | 10,844 | 3 | Short-term loans | $ | 423 | — | $ | 138 | — | $ | 138 | — | |||||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss | 2 | — | — | — | — | — | Financial liabilities at fair value through profit or loss | — | — | 1 | — | 10 | — | |||||||||||||||||||||||||||||||||||||
Hedging derivative financial assets | 1 | — | — | — | — | — | Hedging derivative financial liabilities | — | — | 1 | — | — | — | |||||||||||||||||||||||||||||||||||||
Held-to-maturity financial assets | — | — | 2,140 | — | 3,091 | 1 | Trade notes and accounts payable | 17,643 | 4 | 18,810 | 5 | 18,486 | 4 | |||||||||||||||||||||||||||||||||||||
Trade notes and accounts receivable, net | 29,833 | 7 | 31,022 | 7 | 35,714 | 8 | Payables to related parties | 586 | — | 762 | — | 528 | — | |||||||||||||||||||||||||||||||||||||
Receivables from related parties | 41 | — | 14 | — | 20 | — | Current tax liabilities | 6,090 | 2 | 6,522 | 1 | 4,078 | 1 | |||||||||||||||||||||||||||||||||||||
Inventories | 9,041 | 2 | 7,423 | 2 | 7,869 | 2 | Other payables | 20,332 | 5 | 26,418 | — | 21,134 | 5 | |||||||||||||||||||||||||||||||||||||
Prepayments | 5,143 | 1 | 2,978 | 1 | 6,040 | 1 | Provisions | 146 | — | 119 | 6 | 96 | — | |||||||||||||||||||||||||||||||||||||
Other current monetary assets | 5,447 | 1 | 4,821 | 1 | 4,149 | 1 | Advance receipts | 9,171 | 2 | 10,059 | 3 | 9,430 | 3 | |||||||||||||||||||||||||||||||||||||
Other current assets | 2,745 | — | 2,122 | — | 2,465 | 1 | Current portion of long-term loans | 1,600 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other current liabilities | 1,214 | — | 1,330 | — | 1,328 | — | ||||||||||||||||||||||||||||||||||||||||||||
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Total current assets | 77,719 | 17 | 81,620 | 18 | 70,192 | 17 | Total current liabilities | 57,205 | 13 | 64,160 | 15 | 55,228 | 13 | |||||||||||||||||||||||||||||||||||||
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NONCURRENT ASSETS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale financial assets | 5,274 | 1 | 4,764 | 1 | 4,782 | 1 | NONCURRENT LIABILITIES | |||||||||||||||||||||||||||||||||||||||||||
Investments accounted for using equity method | 2,340 | 1 | 2,386 | 1 | 2,317 | — | Long-term loans | — | — | 1,600 | — | 1,600 | — | |||||||||||||||||||||||||||||||||||||
Property, plant and equipment | 283,501 | 65 | 291,170 | 65 | 285,350 | 66 | Deferred income tax liabilities | 1,446 | — | 1,464 | — | 667 | — | |||||||||||||||||||||||||||||||||||||
Investment properties | 8,094 | 2 | 8,115 | 2 | 7,888 | 2 | Provisions | 68 | — | 66 | — | 60 | — | |||||||||||||||||||||||||||||||||||||
Intangible assets | 44,792 | 10 | 47,353 | 11 | 48,044 | 11 | Customers’ deposits | 4,548 | 1 | 4,610 | 1 | 4,523 | 1 | |||||||||||||||||||||||||||||||||||||
Deferred income tax assets | 2,373 | 1 | 2,322 | — | 1,024 | — | Net defined benefit liabilities | 1,567 | — | 1,537 | — | 1,389 | — | |||||||||||||||||||||||||||||||||||||
Net defined benefit assets | 958 | — | 919 | — | 2,871 | 1 | Deferred revenue | 3,612 | 1 | 3,546 | 1 | 3,550 | 1 | |||||||||||||||||||||||||||||||||||||
Prepayments | 3,614 | 1 | 3,241 | 1 | 3,274 | 1 | Other noncurrent liabilities | 3,548 | 1 | 3,004 | 1 | 2,998 | 1 | |||||||||||||||||||||||||||||||||||||
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Other noncurrent assets | 6,048 | 2 | 5,025 | 1 | 4,957 | 1 | Total noncurrent liabilities | 14,789 | 3 | 15,827 | 3 | 14,787 | 3 | |||||||||||||||||||||||||||||||||||||
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Total noncurrent assets | 356,994 | 83 | 365,295 | 82 | 360,507 | 83 | Total liabilities | 71,994 | 16 | 79,987 | 18 | 70,015 | 16 | |||||||||||||||||||||||||||||||||||||
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EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT | ||||||||||||||||||||||||||||||||||||||||||||||||||
Common stocks | 77,574 | 18 | 77,574 | 17 | 77,574 | 18 | ||||||||||||||||||||||||||||||||||||||||||||
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Additionalpaid-in capital | 148,071 | 34 | 147,180 | 33 | 147,180 | 34 | ||||||||||||||||||||||||||||||||||||||||||||
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Retained earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||
Legal reserve | 77,574 | 18 | 77,574 | 17 | 77,574 | 18 | ||||||||||||||||||||||||||||||||||||||||||||
Special reserve | 2,681 | 1 | 2,676 | 1 | 2,676 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Unappropriated earnings | 48,353 | 11 | 55,657 | 13 | 50,265 | 12 | ||||||||||||||||||||||||||||||||||||||||||||
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Total retained earnings | 128,608 | 30 | 135,907 | 31 | 130,515 | 31 | ||||||||||||||||||||||||||||||||||||||||||||
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Other adjustments | 351 | — | (5 | ) | — | (613 | ) | — | ||||||||||||||||||||||||||||||||||||||||||
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Total equity attributable to stockholders of the parent | 354,604 | 82 | 360,656 | 81 | 354,656 | 83 | ||||||||||||||||||||||||||||||||||||||||||||
NONCONTROLLING INTERESTS | 8,115 | 2 | 6,272 | 1 | 6,028 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
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Total equity | 362,719 | 84 | 366,928 | 82 | 360,684 | 84 | ||||||||||||||||||||||||||||||||||||||||||||
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TOTAL | $ | 434,713 | 100 | $ | 446,915 | 100 | $ | 430,699 | 100 | TOTAL | $ | 434,713 | 100 | $ | 446,915 | 100 | $ | 430,699 | 100 | |||||||||||||||||||||||||||||||
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- 2 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Millions of New Taiwan Dollars, Except Earnings Per Share)
(Unaudited)
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
REVENUES | $ | 56,424 | 100 | $ | 58,518 | 100 | $ | 166,629 | 100 | $ | 171,658 | 100 | ||||||||||||||||||||
OPERATING COSTS | 35,655 | 63 | 38,516 | 66 | 105,354 | 63 | 108,875 | 63 | ||||||||||||||||||||||||
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GROSS PROFIT | 20,769 | 37 | 20,002 | 34 | 61,275 | 37 | 62,783 | 37 | ||||||||||||||||||||||||
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OPERATING EXPENSES | ||||||||||||||||||||||||||||||||
Marketing | 6,270 | 11 | 6,451 | 11 | 18,705 | 11 | 18,456 | 11 | ||||||||||||||||||||||||
General and administrative | 1,121 | 2 | 1,108 | 2 | 3,443 | 2 | 3,362 | 2 | ||||||||||||||||||||||||
Research and development | 946 | 2 | 942 | 1 | 2,825 | 2 | 2,788 | 2 | ||||||||||||||||||||||||
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Total operating expenses | 8,337 | 15 | 8,501 | 14 | 24,973 | 15 | 24,606 | 15 | ||||||||||||||||||||||||
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OTHER INCOME AND EXPENSES | (16 | ) | — | (10 | ) | — | (33 | ) | — | (27 | ) | — | ||||||||||||||||||||
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INCOME FROM OPERATIONS | 12,416 | 22 | 11,491 | 20 | 36,269 | 22 | 38,150 | 22 | ||||||||||||||||||||||||
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NON-OPERATING INCOME AND EXPENSES | ||||||||||||||||||||||||||||||||
Interest income | 52 | — | 46 | — | 159 | — | 150 | — | ||||||||||||||||||||||||
Other income | 130 | — | 291 | — | 634 | — | 1,062 | 1 | ||||||||||||||||||||||||
Other gains and losses | (85 | ) | — | 13 | — | (85 | ) | — | 20 | — | ||||||||||||||||||||||
Interest expenses | (5 | ) | — | (5 | ) | — | (16 | ) | — | (15 | ) | — | ||||||||||||||||||||
Share of profits of associates and joint ventures accounted for using equity method | 72 | — | 42 | — | 312 | — | 334 | — | ||||||||||||||||||||||||
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Totalnon-operating income and expenses | 164 | — | 387 | — | 1,004 | — | 1,551 | 1 | ||||||||||||||||||||||||
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INCOME BEFORE INCOME TAX | 12,580 | 22 | 11,878 | 20 | 37,273 | 22 | 39,701 | 23 | ||||||||||||||||||||||||
INCOME TAX EXPENSE | 3,165 | 5 | 2,987 | 5 | 5,279 | 3 | 5,452 | 3 | ||||||||||||||||||||||||
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NET INCOME | 9,415 | 17 | 8,891 | 15 | 31,994 | 19 | 34,249 | 20 | ||||||||||||||||||||||||
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TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||||||||||||||||||
Exchange differences arising from the translation of the foreign operations | 11 | — | (131 | ) | — | (175 | ) | — | (220 | ) | — | |||||||||||||||||||||
Unrealized gain (loss) onavailable-for-sale financial assets | 544 | 1 | (91 | ) | — | 515 | — | (698 | ) | (1 | ) | |||||||||||||||||||||
Cash flow hedges | (1 | ) | — | 3 | — | 1 | — | (1 | ) | — | ||||||||||||||||||||||
Share of exchange differences arising from the translation of the foreign operations of associates and joint ventures | — | — | (3 | ) | — | (3 | ) | — | (4 | ) | — | |||||||||||||||||||||
Income tax benefit (expense) relating to items that may be reclassified subsequently | — | — | — | — | 2 | — | — | — | ||||||||||||||||||||||||
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Total other comprehensive income (loss), net of income tax | 554 | 1 | (222 | ) | — | 340 | — | (923 | ) | (1 | ) | |||||||||||||||||||||
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TOTAL COMPREHENSIVE INCOME | $ | 9,969 | 18 | $ | 8,669 | 15 | $ | 32,334 | 19 | $ | 33,326 | 19 | ||||||||||||||||||||
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(Continued)
- 3 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Millions of New Taiwan Dollars, Except Earnings Per Share)
(Unaudited)
Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO | ||||||||||||||||||||||||||||||||
Stockholders of the parent | $ | 9,105 | 16 | $ | 8,583 | 15 | $ | 31,037 | 19 | $ | 33,368 | 19 | ||||||||||||||||||||
Noncontrolling interests | 310 | 1 | 308 | — | 957 | — | 881 | 1 | ||||||||||||||||||||||||
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$ | 9,415 | 17 | $ | 8,891 | 15 | $ | 31,994 | 19 | $ | 34,249 | 20 | |||||||||||||||||||||
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COMPREHENSIVE INCOME ATTRIBUTABLE TO | ||||||||||||||||||||||||||||||||
Stockholders of the parent | $ | 9,653 | 17 | $ | 8,379 | 15 | $ | 31,393 | 19 | $ | 32,486 | 18 | ||||||||||||||||||||
Noncontrolling interests | 316 | 1 | 290 | — | 941 | — | 840 | 1 | ||||||||||||||||||||||||
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$ | 9,969 | 18 | $ | 8,669 | 15 | $ | 32,334 | 19 | $ | 33,326 | 19 | |||||||||||||||||||||
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EARNINGS PER SHARE | ||||||||||||||||||||||||||||||||
Basic | $ | 1.17 | $ | 1.11 | $ | 4.00 | $ | 4.30 | ||||||||||||||||||||||||
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Diluted | $ | 1.17 | $ | 1.11 | $ | 4.00 | $ | 4.30 | ||||||||||||||||||||||||
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(Concluded)
- 4 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In Millions of New Taiwan Dollars)
(Unaudited)
Equity Attributable to Stockholders of the Parent | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Adjustments | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Exchange Differences Arising from the Translation of the Foreign | Unrealized Gain (Loss) on Available- for-sale | Total Equity Attributable to Stockholders | ||||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stocks | Additional Capital | Legal Reserve | Special Reserve | Unappropriated Earnings | Total Retained | Cash Flow | Total Other Adjustments | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||||
BALANCE, JANUARY 1, 2016 | $ | 77,574 | $ | 146,733 | $ | 77,574 | $ | 2,676 | $ | 59,448 | $ | 139,698 | $ | 177 | $ | 91 | $ | 1 | $ | 269 | $ | 364,274 | $ | 5,065 | $ | 369,339 | ||||||||||||||||||||||||||
Appropriation of 2015 earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends distributed by Chunghwa | — | — | — | — | (42,551 | ) | (42,551 | ) | — | — | — | — | (42,551 | ) | — | (42,551 | ) | |||||||||||||||||||||||||||||||||||
Cash dividends distributed by subsidiaries | — | — | — | — | — | — | — | — | — | — | — | (710 | ) | (710 | ) | |||||||||||||||||||||||||||||||||||||
Partial disposal of interests in subsidiaries | — | 58 | — | — | — | — | — | — | — | — | 58 | 25 | 83 | |||||||||||||||||||||||||||||||||||||||
Change in additionalpaid-in capital for not participating in the capital increase of a subsidiary | — | 389 | — | — | — | — | — | — | — | — | 389 | 786 | 1,175 | |||||||||||||||||||||||||||||||||||||||
Net income for the nine months ended September 30, 2016 | — | — | — | — | 33,368 | 33,368 | — | — | — | — | 33,368 | 881 | 34,249 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss for the nine months ended September 30, 2016 | �� | — | — | — | — | — | (183 | ) | (698 | ) | (1 | ) | (882 | ) | (882 | ) | (41 | ) | (923 | ) | ||||||||||||||||||||||||||||||||
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Total comprehensive income (loss) for the nine months ended September 30, 2016 | — | — | — | — | 33,368 | 33,368 | (183 | ) | (698 | ) | (1 | ) | (882 | ) | 32,486 | 840 | 33,326 | |||||||||||||||||||||||||||||||||||
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Share-based payment transactions of subsidiaries | — | — | — | — | — | — | — | — | — | — | — | 17 | 17 | |||||||||||||||||||||||||||||||||||||||
Net increase in noncontrolling interests | — | — | — | — | — | — | — | — | — | — | — | 5 | 5 | |||||||||||||||||||||||||||||||||||||||
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BALANCE, SEPTEMBER 30, 2016 | $ | 77,574 | $ | 147,180 | $ | 77,574 | $ | 2,676 | $ | 50,265 | $ | 130,515 | $ | (6 | ) | $ | (607 | ) | $ | — | $ | (613 | ) | $ | 354,656 | $ | 6,028 | $ | 360,684 | |||||||||||||||||||||||
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BALANCE, JANUARY 1, 2017 | $ | 77,574 | $ | 147,180 | $ | 77,574 | $ | 2,676 | $ | 55,657 | $ | 135,907 | $ | 46 | $ | (51 | ) | $ | — | $ | (5 | ) | $ | 360,656 | $ | 6,272 | $ | 366,928 | ||||||||||||||||||||||||
Appropriation of 2016 earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Reserve | — | — | — | 5 | (5 | ) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Cash dividends distributed by Chunghwa | — | — | — | — | (38,336 | ) | (38,336 | ) | — | — | — | — | (38,336 | ) | — | (38,336 | ) | |||||||||||||||||||||||||||||||||||
Cash dividends distributed by subsidiaries | — | — | — | — | — | — | — | — | — | — | — | (942 | ) | (942 | ) | |||||||||||||||||||||||||||||||||||||
Partial disposal of interests in subsidiaries | — | 77 | — | — | — | — | — | — | — | — | 77 | 29 | 106 | |||||||||||||||||||||||||||||||||||||||
Change in additionalpaid-in capital for not participating in the capital increase of a subsidiary | — | 803 | — | — | — | — | — | — | — | — | 803 | 1,754 | 2,557 | |||||||||||||||||||||||||||||||||||||||
Net income for the nine months ended September 30, 2017 | — | — | — | — | 31,037 | 31,037 | — | — | — | — | 31,037 | 957 | 31,994 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) for the nine months ended September 30, 2017 | — | — | — | — | — | — | (163 | ) | 518 | 1 | 356 | 356 | (16 | ) | 340 | |||||||||||||||||||||||||||||||||||||
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Total comprehensive income for the nine months ended September 30, 2017 | — | — | — | — | 31,037 | 31,037 | (163 | ) | 518 | 1 | 356 | 31,393 | 941 | 32,334 | ||||||||||||||||||||||||||||||||||||||
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Share-based payment transactions of subsidiaries | — | 2 | — | — | — | — | — | — | — | — | 2 | 16 | 18 | |||||||||||||||||||||||||||||||||||||||
Net increase in noncontrolling interests | — | 9 | — | — | — | — | — | — | — | — | 9 | 45 | 54 | |||||||||||||||||||||||||||||||||||||||
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BALANCE, SEPTEMBER 30, 2017 | $ | 77,574 | $ | 148,071 | $ | 77,574 | $ | 2,681 | $ | 48,353 | $ | 128,608 | $ | (117 | ) | $ | 467 | $ | 1 | $ | 351 | $ | 354,604 | $ | 8,115 | $ | 362,719 | |||||||||||||||||||||||||
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- 5 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions of New Taiwan Dollars)
(Unaudited)
Nine Months Ended September 30 | ||||||||
2017 | 2016 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Income before income tax | $ | 37,273 | $ | 39,701 | ||||
Adjustments to reconcile income before income tax to net cash provided by operating activities: | ||||||||
Depreciation | 21,225 | 21,827 | ||||||
Amortization | 2,688 | 2,518 | ||||||
Provision for doubtful accounts | 462 | 524 | ||||||
Interest expenses | 16 | 15 | ||||||
Interest income | (159 | ) | (150 | ) | ||||
Dividend income | (328 | ) | (371 | ) | ||||
Compensation cost of share-based payment transactions | 18 | 17 | ||||||
Share of profits of associates and joint ventures accounted for using equity method | (312 | ) | (334 | ) | ||||
Provision for inventory and obsolescence | 23 | 168 | ||||||
Loss on disposal of investments accounted for using equity method | — | — | ||||||
Gain on disposal of financial instruments | (3 | ) | — | |||||
Loss on disposal of property, plant and equipment | 33 | 27 | ||||||
Valuation loss (gain) on financial assets and liabilities at fair value through profit or loss, net | (3 | ) | 9 | |||||
Loss (gain) on foreign exchange, net | 74 | (34 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Decrease (increase) in: | ||||||||
Financial assets held for trading | — | — | ||||||
Trade notes and accounts receivable | 1,004 | (9,021 | ) | |||||
Receivables from related parties | (27 | ) | 22 | |||||
Inventories | (1,642 | ) | 743 | |||||
Prepayments | (2,538 | ) | (3,033 | ) | ||||
Other current monetary assets | (394 | ) | (623 | ) | ||||
Other current assets | (623 | ) | (129 | ) | ||||
Increase (decrease) in: | ||||||||
Trade notes and accounts payable | (1,166 | ) | 2,193 | |||||
Payables to related parties | (176 | ) | (83 | ) | ||||
Other payables | (3,420 | ) | (2,851 | ) | ||||
Provisions | 30 | (91 | ) | |||||
Advance receipts | (310 | ) | (126 | ) | ||||
Other current liabilities | (78 | ) | 5 | |||||
Deferred revenue | 65 | (66 | ) | |||||
Net defined benefit plans | (10 | ) | (8,570 | ) | ||||
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Cash generated from operations | 51,722 | 42,287 | ||||||
Interest paid | (16 | ) | (15 | ) | ||||
Income tax paid | (5,777 | ) | (8,989 | ) | ||||
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Net cash provided by operating activities | 45,929 | 33,283 | ||||||
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(Continued)
- 6 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions of New Taiwan Dollars)
(Unaudited)
Nine Months Ended September 30 | ||||||||
2017 | 2016 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Acquisition ofavailable-for-sale financial assets | $ | — | $ | (40 | ) | |||
Proceeds from disposal ofavailable-for-sale financial assets | 7 | 36 | ||||||
Proceeds from capital reduction ofavailable-for-sale financial assets | 1 | 33 | ||||||
Acquisition of time deposits and negotiable certificates of deposit with maturities of more than three months | (5,636 | ) | (2,698 | ) | ||||
Proceeds from disposal of time deposits and negotiable certificates of deposit with maturities of more than three months | 5,334 | 2,463 | ||||||
Proceeds from disposal ofheld-to-maturity financial assets | 2,140 | 925 | ||||||
Proceeds from disposal of investments accounted for using equity method | — | 182 | ||||||
Acquisition of property, plant and equipment | (16,591 | ) | (12,312 | ) | ||||
Proceeds from disposal of property, plant and equipment | 149 | 6 | ||||||
Acquisition of intangible assets | (127 | ) | (114 | ) | ||||
Decrease (increase) in other noncurrent assets | (1,258 | ) | 310 | |||||
Interest received | 186 | 159 | ||||||
Cash dividends received | 626 | 1,046 | ||||||
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Net cash used in investing activities | (15,169 | ) | (10,004 | ) | ||||
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CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from short-term loans | 5,352 | 585 | ||||||
Repayment of short-term loans | (5,067 | ) | (557 | ) | ||||
Repayment of long-term loans | — | (150 | ) | |||||
Decrease in customers’ deposits | (100 | ) | (381 | ) | ||||
Decrease in other noncurrent liabilities | (35 | ) | (111 | ) | ||||
Cash dividends | (38,336 | ) | (42,551 | ) | ||||
Partial disposal of interest in subsidiaries without losing control | 106 | 83 | ||||||
Cash dividends distributed to noncontrolling interests | (942 | ) | (710 | ) | ||||
Other change in noncontrolling interests | 2,611 | 1,180 | ||||||
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Net cash used in financing activities | (36,411 | ) | (42,612 | ) | ||||
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EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 17 | (94 | ) | |||||
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NET DECREASE IN CASH AND CASH EQUIVALENTS | (5,634 | ) | (19,427 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 31,100 | 30,271 | ||||||
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CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 25,466 | $ | 10,844 | ||||
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(Concluded)
- 7 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017 and 2016
(Unaudited)
STATEMENT OF COMPLIANCE
The Company has prepared its consolidated balance sheets as of September 30, 2017 and 2016, the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2017 and 2016, as well as the consolidated statements of changes in equity and cash flows for the nine months ended September 30, 2017 and 2016 in accordance with IAS 34 “Interim Financial Reporting” as issued by the International Accounting Standard Board (IASB). The consolidated financial statements are incomplete as they omit the related footnote disclosures as required under International Financial Reporting Standards as issued by IASB.
- 8 -