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Equity
 12 Months Ended
Dec. 31, 2024
Disclosure of classes of share capital [abstract]  
Equity
30.
EQUITY
a.
Share capital
1)
Common stocks

 

 

 

December 31

 

 

 

2023

 

 

2024

 

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Number of authorized shares

 

 

12,000

 

 

 

12,000

 

Authorized shares

 

$

120,000

 

 

$

120,000

 

Number of issued and paid shares

 

 

7,757

 

 

 

7,757

 

Issued shares

 

$

77,574

 

 

$

77,574

 

 

Each issued common stock with par value of $10 is entitled the right to vote and receive dividends.

2)
Global depositary receipts

The MOTC and some stockholders sold some common stocks of Chunghwa in an international offering of securities in the form of American Depositary Shares (“ADS”) (one ADS represents 10 common stocks) in July 2003, August 2005, and September 2006. The ADSs were traded on the New York Stock Exchange since July 17, 2003. As of December 31, 2024, the outstanding ADSs were 178 million common stocks, which equaled 18 million units and represented 2.29% of Chunghwa’s total outstanding common stocks.

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 are entitled to, 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.
b.
Additional paid-in capital

The adjustments of additional paid-in capital for the years ended December 31, 2022, 2023 and 2024 were as follows:

 

 

 

Share
Premium

 

 

Movements of
Additional
Paid-in
Capital
for Associates
and Joint
Ventures
Accounted for
Using Equity
Method

 

 

Movements of
Additional
Paid-in
Capital
Arising from
Changes in
Equities of
Subsidiaries

 

 

Difference
between
Consideration
Received or
Paid and
Carrying
Amount of the
Subsidiaries’
Net Assets
during Actual
Disposal or
Acquisition

 

 

Donated
Capital

 

 

Stockholders’
Contribution
Due to
Privatization

 

 

Total

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Balance on January 1, 2022

 

$

126,045

 

 

$

1

 

 

$

2,106

 

 

$

987

 

 

$

23

 

 

$

20,648

 

 

$

149,810

 

Unclaimed dividend

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

2

 

Changes in equities of subsidiaries

 

 

—

 

 

 

—

 

 

 

32

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

32

 

Balance on December 31, 2022

 

$

126,045

 

 

$

1

 

 

$

2,138

 

 

$

987

 

 

$

25

 

 

$

20,648

 

 

$

149,844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on January 1, 2023

 

$

126,045

 

 

$

1

 

 

$

2,138

 

 

$

987

 

 

$

25

 

 

$

20,648

 

 

$

149,844

 

Unclaimed dividend

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

2

 

Change in additional paid-in capital from
   investments in associates and joint ventures
   accounted for using equity method

 

 

—

 

 

 

(26

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(26

)

Actual acquisition of interests in subsidiaries

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Changes in equities of subsidiaries

 

 

—

 

 

 

—

 

 

 

8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8

 

Balance on December 31, 2023

 

$

126,045

 

 

$

(25

)

 

$

2,146

 

 

$

987

 

 

$

27

 

 

$

20,648

 

 

$

149,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance on January 1, 2024

 

$

126,045

 

 

$

(25

)

 

$

2,146

 

 

$

987

 

 

$

27

 

 

$

20,648

 

 

$

149,828

 

Unclaimed dividend

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

—

 

 

 

2

 

Actual disposal of interests in subsidiaries

 

 

—

 

 

 

—

 

 

 

—

 

 

 

224

 

 

 

—

 

 

 

—

 

 

 

224

 

Changes in equities of subsidiaries

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Balance on December 31, 2024

 

$

126,045

 

 

$

(25

)

 

$

2,146

 

 

$

1,211

 

 

$

29

 

 

$

20,648

 

 

$

150,054

 

 

Under the R.O.C. relevant laws, additional paid-in capital from share premium, donated capital and the difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition may be utilized to offset deficits. Furthermore, when Chunghwa has no deficit, it may be distributed in cash or capitalized, which however is limited to a certain percentage of Chunghwa’s paid-in capital except the additional paid-in capital arising from unclaimed dividend can only be utilized to offset deficits.

The additional paid-in capital from movements of paid-in capital arising from changes in equities of subsidiaries may only be utilized to offset deficits.

Among additional paid-in capital from movements of investments in associates and joint ventures accounted for using equity method, the portion arising from the difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition may be utilized to offset deficits; furthermore, when the Company has no deficit, it may be distributed in cash or capitalized. However, other additional paid-in capital recognized in proportion of share ownership may only be utilized to offset deficits.

c.
Retained earnings and dividends policy

In accordance with the Chunghwa’s Articles of Incorporation, Chunghwa must pay all outstanding taxes, offset deficits in prior years and set aside a legal reserve equal to 10% of its net income before distributing a dividend or making any other distribution to stockholders, except when the accumulated amount of such legal reserve equals to Chunghwa’s total issued capital, and depending on its business needs or requirements, may also set aside or reverse special reserves. No less than 50% of the

remaining earnings comprising remaining balance of net income, if any, plus cumulative undistributed earnings shall be distributed as stockholders’ dividends, of which cash dividends to be distributed shall not be less than 50% of the total amount of dividends to be distributed. If cash dividend to be distributed is less than $0.10 per share, such cash dividend shall be distributed in the form of common stocks.

Special reserve was appropriated in accordance with the relevant laws and regulations or as requested by local authority. Pursuant to existing regulations, the Company should appropriate a special reserve when the net amount of other equity items is negative at the end of reporting period upon the earnings distribution. Distributions can be made out of any subsequent reversal of the debit to other equity items.

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 when the legal reserve has exceeded 25% of Chunghwa’s paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of the 2022 and 2023 earnings of Chunghwa approved by the stockholders in their meetings on May 26, 2023 and May 31, 2024, respectively, were as follows:

 

 

 

Appropriation of Earnings

 

 

Dividends Per Share
(NT$)

 

 

 

For Fiscal
Year 2022

 

 

For Fiscal
Year 2023

 

 

For Fiscal
Year 2022

 

 

For Fiscal
Year 2023

 

Reversal of special reserve

 

$

(185

)

 

$

(223

)

 

 

 

 

 

 

Cash dividends

 

 

36,476

 

 

 

36,910

 

 

$

4.702

 

 

$

4.758

 

 

The appropriations of earnings for 2024 had been proposed by Chunghwa’s Board of Directors on February 26, 2025. The appropriations and dividends per share were as follows:

 

 

Appropriation
of Earnings

 

 

Dividends
Per Share (NT$)

 

 

 

 

 

 

 

 

Cash dividends

 

 

38,787

 

 

$

5.000

 

 

The appropriations of earnings for 2024 are subject to the resolution of the stockholders’ meeting planned to be held on May 29, 2025.

d.
Others
1)
Exchange differences arising from the translation of the foreign operations

The exchange differences arising from the translation of the foreign operations from their functional currency to New Taiwan dollars were recognized as exchange differences arising from the translation of the foreign operations in other comprehensive income.

2)
Unrealized gain or loss on financial assets at FVOCI

 

 

 

Year Ended December 31

 

 

 

2022

 

 

2023

 

 

2024

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Beginning balance

 

$

(8

)

 

$

(125

)

 

$

521

 

Recognized for the year

 

 

 

 

 

 

 

 

 

     Unrealized gain or loss

 

 

 

 

 

 

 

 

 

          Equity instruments

 

 

(111

)

 

 

641

 

 

 

45

 

     Share of profits (loss) of associates and joint
         ventures accounted for using
         equity method

 

 

(6

)

 

 

5

 

 

 

(2

)

     Transferred accumulated gain or loss to unappropriated
         earnings resulting from the disposal of equity
         instruments (Note 9)

 

 

—

 

 

 

—

 

 

 

—

 

Ending balance

 

$

(125

)

 

$

521

 

 

$

564

 

 

e.
Noncontrolling interests

 

 

Year Ended December 31

 

 

 

2022

 

 

2023

 

 

2024

 

 

 

NT$

 

 

NT$

 

 

NT$

 

 

 

(In Millions)

 

Beginning balance

 

$

11,747

 

 

$

12,408

 

 

$

12,432

 

Attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

Net income for the year

 

 

1,511

 

 

 

1,103

 

 

 

1,319

 

Exchange differences arising from the translation of the
     foreign operations

 

 

21

 

 

 

2

 

 

 

12

 

Unrealized gain or loss on financial assets at FVOCI

 

 

(25

)

 

 

(22

)

 

 

4

 

Remeasurements of defined benefit pension plans

 

 

24

 

 

 

12

 

 

 

18

 

Income tax relating to remeasurements of defined benefit
     pension plans

 

 

(5

)

 

 

(2

)

 

 

(4

)

Share of other comprehensive income (loss) of associates and
     joint ventures accounted for using equity method

 

 

5

 

 

 

(21

)

 

 

17

 

Cash dividends distributed by subsidiaries

 

 

(1,053

)

 

 

(1,092

)

 

 

(898

)

Actual acquisition or disposal of interests in subsidiaries

 

 

—

 

 

 

—

 

 

 

35

 

Net increase in noncontrolling interests

 

 

183

 

 

 

44

 

 

 

45

 

Ending balance

 

$

12,408

 

 

$

12,432

 

 

$

12,980