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Subsidiaries
 12 Months Ended
Dec. 31, 2023
Disclosure of subsidiaries [abstract]  
Subsidiaries
14.
SUBSIDIARIES
a.
Information on subsidiaries with material noncontrolling interests

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

 

2022

 

2023

SENAO

 

Taiwan

 

72%

 

72%

CHPT

 

Taiwan

 

66%

 

66%

 

 

 

Profit Allocated to
Noncontrolling
Interests

 

 

Accumulated
Noncontrolling
Interests

 

 

 

Year Ended December 31

 

 

December 31

 

 

 

2021

 

 

2022

 

 

2023

 

 

2022

 

 

2023

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

SENAO

 

$

421

 

 

$

462

 

 

$

510

 

 

$

4,454

 

 

$

4,533

 

CHPT

 

$

588

 

 

$

496

 

 

$

15

 

 

 

5,235

 

 

 

4,994

 

Individually immaterial subsidiaries with
   noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

2,719

 

 

 

2,905

 

 

 

 

 

 

 

 

 

 

 

 

$

12,408

 

 

$

12,432

 

 

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

 

 

December 31

 

 

 

2022

 

 

2023

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Current assets

 

$

7,249

 

 

$

6,540

 

Noncurrent assets

 

$

3,053

 

 

$

3,141

 

Current liabilities

 

$

3,714

 

 

$

2,982

 

Noncurrent liabilities

 

$

460

 

 

$

459

 

Equity attributable to the parent

 

$

1,674

 

 

$

1,707

 

Equity attributable to noncontrolling interests

 

$

4,454

 

 

$

4,533

 

 

 

 

Year Ended December 31

 

 

 

2021

 

 

2022

 

 

2023

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

(In Millions)

 

 

 

 

Revenues and income

 

$

31,302

 

 

$

31,602

 

 

$

31,675

 

Costs and expenses

 

 

30,715

 

 

 

30,958

 

 

 

30,964

 

Profit for the year

 

$

587

 

 

$

644

 

 

$

711

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to the parent

 

$

166

 

 

$

182

 

 

$

201

 

Profit attributable to noncontrolling interests

 

 

421

 

 

 

462

 

 

 

510

 

Profit for the year

 

$

587

 

 

$

644

 

 

$

711

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) attributable to the parent

 

$

2

 

 

$

11

 

 

$

(9

)

Other comprehensive income (loss) attributable to noncontrolling
     interests

 

 

5

 

 

 

26

 

 

 

(23

)

Other comprehensive income (loss) for the year

 

$

7

 

 

$

37

 

 

$

(32

)

 

 

 

 

 

 

 

 

 

 

Total comprehensive income attributable to the parent

 

$

168

 

 

$

192

 

 

$

192

 

Total comprehensive income attributable to noncontrolling
     interests

 

 

426

 

 

 

488

 

 

 

487

 

Total comprehensive income for the year

 

$

594

 

 

$

680

 

 

$

679

 

 

 

 

 

 

 

 

 

 

 

Net cash flow from operating activities

 

$

654

 

 

$

(329

)

 

$

1,146

 

Net cash flow from investing activities

 

 

215

 

 

 

36

 

 

 

36

 

Net cash flow from financing activities

 

 

(690

)

 

 

(826

)

 

 

(873

)

Effect of exchange rate changes on cash and cash equivalents

 

 

—

 

 

 

1

 

 

 

—

 

Net cash inflow (outflow)

 

$

179

 

 

$

(1,118

)

 

$

309

 

 

 

 

 

 

 

 

 

 

 

Dividends paid to noncontrolling interests

 

$

278

 

 

$

371

 

 

$

408

 

 

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

 

 

 

December 31

 

 

 

2022

 

 

2023

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Current assets

 

$

4,406

 

 

$

3,773

 

Noncurrent assets

 

$

4,631

 

 

$

4,499

 

Current liabilities

 

$

1,087

 

 

$

677

 

Noncurrent liabilities

 

$

26

 

 

$

23

 

Equity attributable to CHI

 

$

2,689

 

 

$

2,578

 

Equity attributable to noncontrolling interests

 

$

5,235

 

 

$

4,994

 

 

 

 

Year Ended December 31

 

 

 

2021

 

 

2022

 

 

2023

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

 

 

 

(In Millions)

 

 

 

 

Revenues and income

 

$

4,254

 

 

$

4,434

 

 

$

2,941

 

Costs and expenses

 

 

3,360

 

 

 

3,673

 

 

 

2,905

 

Profit for the year

 

$

894

 

 

$

761

 

 

$

36

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to CHI

 

$

306

 

 

$

265

 

 

$

21

 

Profit attributable to noncontrolling interests

 

 

588

 

 

 

496

 

 

 

15

 

Profit for the year

 

$

894

 

 

$

761

 

 

$

36

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) attributable to CHI

 

$

(1

)

 

$

5

 

 

$

(1

)

Other comprehensive income (loss) attributable to noncontrolling
     interests

 

 

(2

)

 

 

7

 

 

 

(2

)

Other comprehensive income (loss) for the year

 

$

(3

)

 

$

12

 

 

$

(3

)

 

 

 

 

 

 

 

 

 

 

Total comprehensive income attributable to CHI

 

$

305

 

 

$

270

 

 

$

20

 

Total comprehensive income attributable to noncontrolling
     interests

 

 

586

 

 

 

503

 

 

 

13

 

Total comprehensive income for the year

 

$

891

 

 

$

773

 

 

$

33

 

 

 

 

 

 

 

 

 

 

 

Net cash flow from operating activities

 

$

1,090

 

 

$

1,401

 

 

$

325

 

Net cash flow from investing activities

 

 

(519

)

 

 

(1,011

)

 

 

(244

)

Net cash flow from financing activities

 

 

(414

)

 

 

(388

)

 

 

(409

)

Effect of exchange rate changes on cash and cash equivalents

 

 

(1

)

 

 

8

 

 

 

(2

)

Net cash inflow (outflow)

 

$

156

 

 

$

10

 

 

$

(330

)

 

 

 

 

 

 

 

 

 

 

Dividends paid to noncontrolling interests

 

$

259

 

 

$

293

 

 

$

253

 

 

b.
Equity transactions with noncontrolling interests

IISI purchased shares of UTC in August 2023. Therefore, the Company’s ownership interest in UTC increased.

CHIEF issued new shares in March 2021, December 2021, March 2022, December 2022, and December 2023, as its employees exercised options. Therefore, the Company’s ownership interest in CHIEF decreased to 58.67% and 58.63% as of December 31, 2022 and 2023, respectively. See Note 34(a) for details.

CHTSC issued new shares in February 2021, February 2022, May 2022, Feb 2023 and May 2023 as its employees exercised options. Therefore, the Company’s ownership interest in CHTSC decreased to 73.09% and 69.28% as of December 31, 2022 and 2023. See Note 34(b) for details.

IISI issued new shares in January 2021 as its employees exercised options. Therefore, the Company’s ownership interest in IISI decreased to 51.02%. See Note 34(c) for details.

CLPT issued new shares in May 2023 as its employees exercised options. Therefore, the Company’s ownership interest in CLPT decreased to 74.56%. See Note 34(d) for details.

Chunghwa did not participate in the capital increase of CHST in November 2022. Therefore, the Company’s ownership interest in CHST decreased.

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, 2021, 2022 and 2023 was as follows:

 

 

 

Year Ended December 31, 2021

 

 

 

CHIEF
Share-Based
Payment

 

 

CHTSC
Share-Based
Payment

 

 

IISI
Share-Based
Payment

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Cash consideration received from noncontrolling interests

 

$

29

 

 

$

21

 

 

$

4

 

The proportionate share of the carrying amount of the net assets
   of the subsidiary transferred to noncontrolling interests

 

 

(17

)

 

 

(19

)

 

 

(1

)

Differences arising from equity transactions

 

$

12

 

 

$

2

 

 

$

3

 

 

 

 

 

 

 

 

 

 

Line items for equity transaction adjustments

 

 

 

 

 

 

 

 

 

Additional paid-in capital - arising from changes in equities of
   subsidiaries

 

$

12

 

 

$

2

 

 

$

3

 

 

 

 

Year Ended December 31, 2022

 

 

 

CHIEF
Share-Based
Payment

 

 

CHTSC
Share-Based
Payment

 

 

Chunghwa
Not Proportionately
Participating in the
Capital Increase of
CHST

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Cash consideration received from noncontrolling interests

 

$

39

 

 

$

35

 

 

$

15

 

The proportionate share of the carrying amount of the net assets
   of the subsidiary transferred to noncontrolling interests

 

 

(17

)

 

 

(30

)

 

 

(10

)

Differences arising from equity transactions

 

$

22

 

 

$

5

 

 

$

5

 

 

 

 

 

 

 

 

 

 

Line items for equity transaction adjustments

 

 

 

 

 

 

 

 

 

Additional paid-in capital - arising from changes in equities of
   subsidiaries

 

$

22

 

 

$

5

 

 

$

5

 

 

 

 

 

Year Ended December 31, 2023

 

 

 

CHIEF
Share-Based
Payment

 

 

CHTSC
Share-Based
Payment

 

 

CLPT
Share-Based Payment

 

 

Purchasing
UTC
shares

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Cash consideration received from (paid to) noncontrolling interests

 

$

8

 

 

$

15

 

 

$

1

 

 

$

—

 

The proportionate share of the carrying amount of the net assets
   of the subsidiary transferred from (to) noncontrolling interests

 

 

(2

)

 

 

(13

)

 

 

(1

)

 

 

—

 

Differences arising from equity transactions

 

$

6

 

 

$

2

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Line items for equity transaction adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital - arising from the difference
   between the consideration received or paid and the
   carrying amount of the subsidiaries’ net assets during
   actual disposal or acquisition

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Additional paid-in capital - arising from changes in equities of
   subsidiaries

 

$

6

 

 

$

2

 

 

$

—

 

 

$

—

 

 

Note: The proceeds from the new shares issued in February 2023 by CHTSC has been received in advance in December 2022.