Business Context and Reporting Period
This Form 6-K filing by Chunghwa Telecom Co., Ltd. covers the period ending August 10, 2026. The report discloses unaudited consolidated operating results for July 2026 and the seven months ended July 31, 2026. Additionally, it details a Board of Directors resolution dated August 7, 2026, approving Phase 1 of a reconstruction project for the Pei-Yi Telecommunications Site under the Urban Unsafe and Old Buildings Plan.
Key Financial Metrics
July 2026 Performance
- Revenue: NT$19.88 billion
- Income from Operations: NT$4.44 billion
- Net Income (Parent): NT$3.34 billion
- EBITDA: NT$7.87 billion
- Earnings Per Share (EPS): NT$0.43
Seven Months Ended July 31, 2026
- Revenue: NT$141.24 billion
- Income from Operations: NT$30.81 billion
- Net Income (Parent): NT$24.09 billion
- EBITDA: NT$54.69 billion
- Earnings Per Share (EPS): NT$3.11
Liquidity and Contingencies
- Funds Lent: No funds lent to parent or subsidiaries.
- Guarantees: Accumulated limited amount for subsidiaries is NT$3,107,565,000 (with an increase of NT$850,000,000 in the current month).
- Derivatives: The company holds forward contracts for non-trading purposes. Total unrealized loss recognized year-to-date is approximately NT$4.34 million (sum of non-hedge and hedge accounting positions), while realized gains are approximately NT$2.99 million.
Material Changes vs. Prior Period
Compared to the same periods in 2025, the company reported growth in net sales:
- July 2026 vs. July 2025: Net sales increased by NT$705.83 million, representing a 3.68% year-over-year increase.
- Jan-Jul 2026 vs. Jan-Jul 2025: Net sales increased by NT$9.52 billion, representing a 7.23% year-over-year increase.
The filing does not provide specific comparative figures for operating income, net income, or EBITDA for the prior year periods.
Outlook, Risks, and Unusual Items
Capital Expenditure and Projects
The Board approved a reconstruction project for the Pei-Yi Telecommunications Site in Taipei. The estimated total investment for Phase 1 is approximately NT$2.46 billion. The stated purpose is to reconstruct outdated facilities and enhance operational efficiency.
Management Commentary and Dissent
Director Shiow-Long Horng expressed a dissenting opinion regarding the reconstruction project, suggesting the plan should be implemented in a single phase rather than the proposed two phases.
Risks and Contingencies
The filing notes the existence of financial derivative transactions (forward contracts) with outstanding positions totaling approximately NT$139 million. While unrealized losses were recognized for the year, the filing does not explicitly detail specific market risks beyond the standard disclosure of derivative positions.
Investor Verification Checklist
- Verify the full-year 2026 guidance and whether the 7.23% YTD revenue growth trend is expected to continue.
- Confirm the total projected cost for the Pei-Yi Telecommunications Site reconstruction, including Phase 2, and the timeline for completion.
- Review the specific terms of the NT$3.1 billion in guarantees provided for subsidiaries to assess potential contingent liabilities.
- Investigate the impact of the dissenting director's opinion on the execution timeline of the reconstruction project.
- Clarify the specific currency exposure and hedging strategy given the unrealized losses on forward contracts.