Business Context and Reporting Period
This Form 6-K filing by Chunghwa Telecom Co., Ltd. (CHT) is dated March 10, 2022. The report aggregates various corporate announcements made between February 16, 2022, and March 10, 2022. Key events include the approval of consolidated financial statements for the fiscal year ended December 31, 2021, the announcement of operating results for February 2022, and the resolution to distribute cash dividends for the 2021 fiscal year.
Key Financial Metrics
Fiscal Year 2021 (Consolidated)
- Operating Revenue: NT$210,477,948 thousand
- Gross Profit: NT$75,367,197 thousand
- Net Operating Income: NT$44,929,821 thousand
- Profit Before Tax: NT$46,066,624 thousand
- Net Profit (Attributable to Owners of Parent): NT$35,753,579 thousand
- Basic Earnings Per Share (EPS): NT$4.61
- Total Assets: NT$513,070,360 thousand
- Total Liabilities: NT$121,807,910 thousand
- Equity Attributable to Owners of Parent: NT$379,334,846 thousand
February 2022 (Unaudited Consolidated)
- Revenue: Approximately NT$16.55 billion
- Income from Operations: Approximately NT$3.98 billion
- Net Income (Attributable to Parent): Approximately NT$3.08 billion
- EBITDA: Approximately NT$7.23 billion
- Earnings Per Share: NT$0.40
January-February 2022 (Unaudited Consolidated)
- Revenue: Approximately NT$33.97 billion
- Income from Operations: Approximately NT$7.96 billion
- Net Income (Attributable to Parent): Approximately NT$6.24 billion
- EBITDA: Approximately NT$14.43 billion
- Earnings Per Share: NT$0.80
Debt and Liquidity
- Bond Issuance: Approved issuance of NT$3.5 billion in unsecured corporate bonds (Sustainability Bond) with a 5-year term and a coupon rate of 0.69% p.a.
- Guarantees: Accumulated limited amount for subsidiaries is NT$3,065,115 thousand.
- Dividends: Board resolved a cash dividend of NT$4.608 per share for 2021, totaling NT$35,746,313,679.
Material Changes vs. Prior Period
- February 2022 Sales: Net sales for February 2022 were NT$16,554,952 thousand, a decrease of NT$202,313 thousand (-1.21%) compared to February 2021.
- Year-to-Date Sales (Jan-Feb): Net sales for the two months ended February 28, 2022, were NT$33,971,344 thousand, an increase of NT$94,761 thousand (+0.28%) compared to the same period in 2021.
Guidance, Risks, and Unusual Items
Legal and Regulatory Matters
- Prosecution Raid: On February 16, 2022, the Tainan District Prosecutors Office raided the staff office of a local business operation center. The company stated it is fully cooperating and reported no effect on finances or business.
- Indictment: On March 1, 2022, a managerial officer of a local business operation center was indicted by the Taiwan Chiayi District Prosecutors Office for an alleged violation of the Securities and Exchange Act. The company reported no projected financial or business impact.
Corporate Actions
- Related Party Transactions: Subsidiaries CHYP Multimedia Marketing & Communications Co., Ltd. and Honghwa International Corporation acquired right-of-use assets (office premises and telecom service channels) from the parent company. Total transaction amounts were NT$10,803,096 and NT$2,126,214 respectively.
- Donation: The company donated NT$10,000,000 to the "Relieve Disaster Foundation" to aid Ukrainian refugees.
- Annual General Meeting: Scheduled for May 27, 2022, to ratify 2021 financial statements and elect directors.
Financial Derivatives
- As of February 2022, outstanding forward contracts for non-trading purposes totaled NT$173,035 thousand (non-hedge) and NT$65,080 thousand (hedge accounting). Unrealized gains/losses recognized in the current year were NT$6,132 thousand and NT$5,910 thousand respectively.
Investor Verification Checklist
- Verify the long-term impact of the ongoing legal investigations (Tainan raid and Chiayi indictment) on operational stability and reputation.
- Confirm the utilization of funds from the NT$3.5 billion sustainability bond issuance for environmental or social projects.
- Monitor the execution of the NT$35.7 billion cash dividend distribution.
- Review the details of related-party asset acquisitions to ensure pricing aligns with market conditions.
- Assess the sustainability of the slight year-over-year revenue decline in February 2022 against the year-to-date growth.