CHT(US:CHT)2025-08-11 10:30Financial Position - Total current assets as of June 30, 2025, increased to NT$128,697,558, representing 24% of total assets, compared to NT$112,968,313 (21%) as of December 31, 2024[9] - Total noncurrent assets decreased to NT$415,786,797, accounting for 76% of total assets, down from NT$421,523,514 (79%) as of December 31, 2024[9] - Total liabilities increased to NT$164,861,133, which is 29% of total assets, compared to NT$136,386,971 (26%) as of December 31, 2024[9] - Total equity attributable to stockholders of the parent decreased to NT$366,734,843, representing 69% of total assets, down from NT$384,950,690 (72%) as of December 31, 2024[9] - Retained earnings decreased to NT$116,380,667, which is 22% of total assets, compared to NT$135,203,263 (25%) as of December 31, 2024[9] - Total equity decreased to NT$379,623,222, which is 71% of total assets, down from NT$398,104,856 (74%) as of December 31, 2024[9] Revenue and Profitability - Revenues for Q2 2025 reached NT$56,730,396 thousand, a 4.8% increase from NT$54,115,733 thousand in Q2 2024[11] - Gross profit for the first half of 2025 was NT$43,380,450 thousand, up 5.0% from NT$41,318,771 thousand in the same period of 2024[11] - Net income for Q2 2025 was NT$10,604,626 thousand, representing a 4.9% increase compared to NT$10,111,205 thousand in Q2 2024[11] - Operating income for Q2 2025 was NT$12,545,071 thousand, a 5.2% increase from NT$11,927,494 thousand in Q2 2024[11] - For the six months ended June 30, 2025, Chunghwa Telecom reported a net income of NT$19,966,358, an increase from NT$19,211,286 in the same period of 2024, reflecting a growth of approximately 3.9%[16] - Total comprehensive income for the first half of 2025 was NT$21,370,507 thousand, an increase of 5.3% from NT$20,115,789 thousand in the first half of 2024[13] Cash Flow and Investments - Cash generated from operations for the six months ended June 30, 2025, was NT$33,872,334, slightly up from NT$33,717,946 in 2024[16] - The company reported a net cash used in investing activities of NT$28,070,939 for the six months ended June 30, 2025, compared to NT$22,547,096 in 2024, indicating a significant increase in investment outflows[18] - The net cash provided by operating activities for the six months ended June 30, 2025, was NT$29,282,911, slightly higher than NT$29,230,641 in 2024[16] - The company’s interest income for the six months ended June 30, 2025, was NT$513,824, an increase from NT$394,765 in 2024, reflecting a growth of approximately 30.1%[16] Assets and Liabilities - Total assets as of June 30, 2025, amounted to NT$379,623,222, compared to NT$377,292,383 as of June 30, 2024, showing a growth of about 0.6%[16] - Cash and cash equivalents as of June 30, 2025, were NT$35,033,086, a decrease from NT$36,259,689 as of December 31, 2024[9] - Total current liabilities increased to NT$111,629,891, representing 20% of total assets, compared to NT$79,893,042 (15%) as of December 31, 2024[9] - Long-term loans decreased slightly to NT$1,626,979, remaining negligible compared to total liabilities[9] Shareholder Information - The company recognized cash dividends of NT$38,787,232 for 2024, compared to NT$36,909,931 for 2023, representing an increase of approximately 5.1%[16] - Basic earnings per share for Q2 2025 were NT$1.31, compared to NT$1.27 in Q2 2024[13] - The number of issued and paid shares remained at 7,757,447, with a total issued share capital of NT$77,574,465 as of June 30, 2025[142] Subsidiaries and Investments - Chunghwa Telecom maintains a 100% ownership interest in several subsidiaries, including Chunghwa Telecom Singapore Pte., Ltd. and Chunghwa Telecom Vietnam Co., Ltd., which focus on international private leased circuits and ICT services[29][30] - The company has a 62% ownership interest in CHT Security Co., Ltd., which provides computing equipment installation and digital information supply services[30] - Chunghwa Telecom's investment strategy includes a 100% ownership in Chunghwa Digital Cultural and Creative Capital Co., Ltd., focusing on investment and management consulting[30] - The company has expanded its international presence with the establishment of Chunghwa Telecom Malaysia SDN. BHD., which offers IP VPN services and ICT services[32] Financial Reporting and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), ensuring compliance and transparency in financial reporting[27] - The consolidated financial statements were approved by the Board of Directors on August 8, 2025, indicating a timely review process[25] Employee Compensation and Benefits - Total employee benefit expenses for the first half of 2025 amounted to NT$25,292,318, up from NT$24,030,605 in the same period of 2024, representing a year-over-year increase of 5.2%[165] - The distribution rate of employees' compensation was amended to a range of 2% to 5% of pre-tax income, up from 1.7% to 4.3%[166] Stock Options and Compensation Costs - CHIEF did not recognize any compensation costs for stock options for the six months ended June 30, 2025, while the costs for the same period in 2024 were $1,632 thousand[178] - CHTSC recognized stock option compensation costs of $89 thousand for the six months ended June 30, 2025, compared to $389 thousand for the same period in 2024, reflecting a decrease of 77%[184] - CLPT's stock option compensation costs for the six months ended June 30, 2025, were $2,237 thousand, down from $2,608 thousand in 2024, indicating a reduction of approximately 14%[189] Future Projections and Strategies - The company plans to fully amortize 4G concession fees by December 2030 and December 2033, while 5G concession fees will be fully amortized by December 2040[121] - The management regularly reviews the capital structure, considering the cost of capital and associated risks[195] - The company aims to optimize the debt and equity balance to maximize returns to stakeholders while ensuring ongoing operations[194]