XML 35 R20.htm IDEA: XBRL DOCUMENT v3.19.1
Subsidiaries
 12 Months Ended
Dec. 31, 2018
Disclosure Of Significant Investments In Subsidiaries [Abstract]  
Subsidiaries

15.

SUBSIDIARIES

 

a.

Information on significant noncontrolling interest subsidiary

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

 

 

 

Place of Incorporation

 

Proportion of Ownership

Interests and Voting Rights

Held by Noncontrolling Interests

 

 

 

and Principal

 

December 31

 

Subsidiaries

 

Place of Business

 

2017

 

 

2018

 

SENAO

 

Taiwan

 

71%

 

 

72%

 

CHPT

 

Taiwan

 

62%

 

 

66%

 

 

 

 

Profit Allocated to

Noncontrolling Interests

 

 

Accumulated

Noncontrolling Interests

 

 

 

Year Ended December 31

 

 

December 31

 

 

 

2016

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

 

(In Millions)

 

 

 

 

 

 

 

 

 

SENAO

 

$

690

 

 

$

592

 

 

$

326

 

 

$

4,092

 

 

$

4,108

 

CHPT

 

$

341

 

 

$

431

 

 

$

477

 

 

 

3,513

 

 

 

4,022

 

Individually immaterial subsidiaries with

   noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

869

 

 

 

1,727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

8,474

 

 

$

9,857

 

 

Summarized financial information in respect of SENAO and its subsidiaries that has material noncontrolling interests is set out below.  The summarized financial information below represents amounts before intercompany eliminations.

 

 

 

December 31

 

 

 

2017

 

 

2018

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Current assets

 

$

7,584

 

 

$

7,041

 

Noncurrent assets

 

$

2,531

 

 

$

2,527

 

Current liabilities

 

$

4,278

 

 

$

3,757

 

Noncurrent liabilities

 

$

160

 

 

$

164

 

Equity attributable to the parent

 

$

1,585

 

 

$

1,539

 

Equity attributable to noncontrolling interests

 

$

4,092

 

 

$

4,108

 

 

 

 

 

Year Ended December 31

 

 

 

2016

 

 

2017

 

 

2018

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

 

(In Millions)

 

 

 

 

 

Revenue and income

 

$

34,453

 

 

$

36,038

 

 

$

31,540

 

Costs and expenses

 

 

33,476

 

 

 

35,200

 

 

 

31,081

 

Profit for the year

 

$

977

 

 

$

838

 

 

$

459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to the parent

 

$

287

 

 

$

246

 

 

$

133

 

Profit attributable to noncontrolling interests

 

 

690

 

 

 

592

 

 

 

326

 

Profit for the year

 

$

977

 

 

$

838

 

 

$

459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) attributable

   to the parent

 

$

(21

)

 

$

3

 

 

$

(2

)

Other comprehensive loss attributable to

   noncontrolling interests

 

 

(53

)

 

 

(17

)

 

 

(10

)

Other comprehensive loss for the year

 

$

(74

)

 

$

(14

)

 

$

(12

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income attributable to the

   parent

 

$

266

 

 

$

249

 

 

$

131

 

Total comprehensive income attributable to

   noncontrolling interests

 

 

637

 

 

 

575

 

 

 

316

 

Total comprehensive income for the year

 

$

903

 

 

$

824

 

 

$

447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid to noncontrolling interests

 

$

526

 

 

$

703

 

 

$

587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flow from operating activities

 

$

531

 

 

$

1,081

 

 

$

696

 

Net cash flow from investing activities

 

 

130

 

 

 

(57

)

 

 

(13

)

Net cash flow from financing activities

 

 

(677

)

 

 

(897

)

 

 

(491

)

Effect of exchange rate changes on cash and cash

   equivalents

 

 

(7

)

 

 

(2

)

 

 

1

 

Net cash inflow (outflow)

 

$

(23

)

 

$

125

 

 

$

193

 

 

Summarized financial information in respect of CHPT and its subsidiaries that has material noncontrolling interests is set out below.  

The summarized financial information below represents amounts before intercompany eliminations.

 

 

 

December 31

 

 

 

2017

 

 

2018

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Current assets

 

$

4,496

 

 

$

4,417

 

Noncurrent assets

 

$

2,167

 

 

$

2,779

 

Current liabilities

 

$

965

 

 

$

1,076

 

Noncurrent liabilities

 

$

1

 

 

$

1

 

Equity attributable to CHI

 

$

2,184

 

 

$

2,097

 

Equity attributable to noncontrolling interests

 

$

3,513

 

 

$

4,022

 

 

 

 

Year Ended December 31

 

 

 

2016

 

 

2017

 

 

2018

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

 

(In Millions)

 

 

 

 

 

Revenue and income

 

$

2,607

 

 

$

3,127

 

 

$

3,299

 

Costs and expenses

 

 

2,020

 

 

 

2,402

 

 

 

2,549

 

Profit for the year

 

$

587

 

 

$

725

 

 

$

750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to CHI

 

$

246

 

 

$

294

 

 

$

273

 

Profit attributable to noncontrolling interests

 

 

341

 

 

 

431

 

 

 

477

 

Profit for the year

 

$

587

 

 

$

725

 

 

$

750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss attributable

   to CHI

 

$

—

 

 

$

(1

)

 

$

—

 

Other comprehensive loss attributable to

   noncontrolling interests

 

 

—

 

 

 

(2

)

 

 

—

 

Other comprehensive loss for the year

 

$

—

 

 

$

(3

)

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income attributable

   to CHI

 

$

246

 

 

$

293

 

 

$

273

 

Total comprehensive income attributable to

   noncontrolling interests

 

 

341

 

 

 

429

 

 

 

477

 

Total comprehensive income for the year

 

$

587

 

 

$

722

 

 

$

750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid to noncontrolling interests

 

$

109

 

 

$

146

 

 

$

210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flow from operating activities

 

$

671

 

 

$

1,052

 

 

$

862

 

Net cash flow from investing activities

 

 

(904

)

 

 

(639

)

 

 

(733

)

Net cash flow from financing activities

 

 

841

 

 

 

2,306

 

 

 

(328

)

Effect of exchange rate changes on cash and cash

   equivalents

 

 

(2

)

 

 

(4

)

 

 

1

 

Net cash inflow (outflow)

 

$

606

 

 

$

2,715

 

 

$

(198

)

 

 

b.

Equity transactions with noncontrolling interests

CHI disposed of some shares of CHPT in March 2016, and did not participate in the capital increase of CHPT in March 2016 and September 2017.  Additionally, CHI disposed some shares of CHPT from April to August 2018.  Therefore, the Company’s ownership interest in CHPT decreased to 34.25% as of December 31, 2018.  See Note 34(e) for details.

Chunghwa and CHI disposed some shares of CHIEF in June 2017 and May 2018 before CHIEF traded its shares on the emerging stock market and the General Stock Market of the Taipei Exchange according to the local requirements.  In addition, Chunghwa and CHI did not participate in the capital increase of CHIEF in June 2018.  Furthermore, CHIEF issued new shares in March and November 2018 as its employees exercised their options.  Therefore, the Company’s equity ownership interest in CHIEF decreased to 60.23% as of December 31, 2018.  See Note 34(c)(d) for details.

SENAO transferred its treasury stock to employees in June and November 2017, and June 2018.  The Company’s ownership interest in SENAO decreased to 28.93% and 28.18% as of December 31, 2017 and 2018, respectively.  See Note 34(b) for details.

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

The above transactions were accounted for as equity transactions since the Company did not cease to have control over these subsidiaries.

The detailed information of the equity transactions for the years ended December 31, 2016, 2017 and 2018 was as follows:

 

 

 

Year Ended December 31

 

 

 

2016

 

 

2017

 

 

 

CHI Disposed Some Shares of CHPT

 

 

CHI Did Not Participate in the Capital Increase of CHPT

 

 

CHI Did Not Participate in the Capital Increase of CHPT

 

 

SENAO Transferred its Treasury Stock

 

 

Chunghwa and CHI Disposed Some Shares of CHIEF

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

 

(In Millions)

 

Cash consideration received

   from (paid to)

   Noncontrolling interests

 

$

83

 

 

$

1,175

 

 

$

2,552

 

 

$

164

 

 

$

106

 

The proportionate share of

   the carrying amount of

   the net assets of the

   subsidiary transferred (to)

   from noncontrolling

   interests

 

 

(25

)

 

 

(786

)

 

 

(1,750

)

 

 

(137

)

 

 

(29

)

Differences arising from

   equity transactions

 

$

58

 

 

$

389

 

 

$

802

 

 

$

27

 

 

$

77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Line items for equity

   transaction adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital -

   difference between

   consideration received or

   paid and the carrying

   amount of the subsidiaries’

   net assets upon actual

   disposal or acquisition

 

$

58

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

77

 

Additional paid-in capital -

   arising from changes in

   equities of subsidiaries

 

$

—

 

 

$

389

 

 

$

802

 

 

$

27

 

 

$

—

 

Unappropriated earnings

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

Year Ended December 31

 

 

 

2018

 

 

 

SENAO not Proportionately participating in the Capital Increase of Youth

 

 

SENAO Transferred its Treasury Stock

 

 

CHI Disposed Some Shares of CHPT

 

 

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

 

 

Chunghwa and CHI Disposed Some Shares of CHIEF

 

 

Share-Based Payment of CHIEF

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

NT$

 

 

 

(In Millions)

 

Cash consideration received

   from noncontrolling interests

 

$

—

 

 

$

327

 

 

$

1,042

 

 

$

1,477

 

 

$

133

 

 

$

35

 

The proportionate share of

   the carrying amount of

   the net assets of the

   subsidiary transferred to

   noncontrolling interests

 

 

—

 

 

 

(272

)

 

 

(330

)

 

 

(700

)

 

 

(19

)

 

 

(24

)

Differences arising from

   equity transactions

 

$

—

 

 

$

55

 

 

$

712

 

 

$

777

 

 

$

114

 

 

$

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Line items for equity

   transaction adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital -

   difference between

   consideration received or

   paid and the carrying

   amount of the subsidiaries’

   net assets upon actual

   disposal or acquisition

 

$

—

 

 

$

—

 

 

$

712

 

 

$

—

 

 

$

114

 

 

$

—

 

Additional paid-in capital -

   arising from changes in

   equities of subsidiaries

 

$

—

 

 

$

55

 

 

$

—

 

 

$

777

 

 

$

—

 

 

$

11