Business Context and Reporting Period
This Form 6-K filing by Chunghwa Telecom Co., Ltd. is dated November 12, 2003. The report covers corporate governance changes and financial performance updates for the third quarter of 2003 and the ten-month period ending October 2003.
Key Financial Metrics
Third Quarter 2003 Results
- Revenue: NT$45.9 billion
- Gross Profit: NT$33.3 billion
- Income from Operations: NT$16.0 billion
- Net Income: NT$12.5 billion
- Earnings Per Share (EPS): NT$1.3
October 2003 and Year-to-Date (Jan-Oct) Sales
- October Net Sales: NT$14.83 billion (up 2.26% year-over-year)
- Jan-Oct Net Sales: NT$148.73 billion (up 1.56% year-over-year)
- October Invoice Amount: NT$17.21 billion (up 0.94% year-over-year)
- Jan-Oct Invoice Amount: NT$175.54 billion (up 1.34% year-over-year)
Liquidity and Contingencies
- Funds Lent to Others: NT$0 (No balance for CHT or subsidiaries)
- Endorsements and Guarantees: NT$0 (No balance for CHT, subsidiaries, or PRC companies)
- Financial Derivatives: No trading purpose transactions; hedging details listed as N/A.
Material Changes
Net sales for October 2003 increased by 2.26% compared to the same period in 2002. Year-to-date net sales through October 2003 rose by 1.56% compared to the prior year. The filing clarifies that a media report citing an accumulated ten-month pretax EPS of NT$5.24 was an external estimate and not an official disclosure by the company.
Management Commentary, Risks, and Unusual Items
Corporate Governance Change
On October 16, 2003, Ching Nain Tsai was replaced as Supervisor by Ming Daw Chang. Both individuals are representatives of the Ministry of Transportation and Communications (MoTC). The change resulted from Mr. Tsai's change in his primary position at the Ministry of Finance.
Clarification on EPS Reporting
Management explicitly stated that the NT$5.24 pretax EPS figure for the ten-month period reported by the Commercial Times was purely estimated by the press. The company officially disclosed only the October revenue figure of NT$14.83 billion on November 10, 2003.
Investor Verification Checklist
- Verify the official EPS figures for the full year 2003, as the NT$5.24 pretax figure cited in media was unconfirmed by management.
- Confirm the impact of the Supervisor change on future regulatory oversight, noting both appointees are MoTC representatives.
- Review the full annual report (Form 20-F) for detailed cash flow and debt metrics, as this 6-K filing does not provide specific debt or cash flow values.
- Monitor subsequent filings for the official full-year 2003 earnings release.