Chunghwa Telecom Co Ltd 6-K, filed Nov 10, 2025
Chunghwa Telecom Co Ltd (CHT)
About this 6-K
Chunghwa Telecom Co Ltd filed this 6-K on November 10, 2025.
1934 Act Registration No. 1-31731
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Dated November 10, 2025
Chunghwa Telecom Co., Ltd.
(Translation of Registrant’s Name into English)
21-3 Xinyi Road Sec. 1,
Taipei, Taiwan, 100 R.O.C.
(Address of Principal Executive Office)
(Indicate by check mark whether the registrant files or will file annual reports under cover of form 20-F or Form 40-F.)
Form 20-F ☒ Form 40-F ☐
(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ☐ No ☒
(If “Yes” is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable)
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 | To announce the differences between consolidated financial statements for the nine months ended September 30, 2025 under Taiwan-IFRSs and that under IFRSs | |
| 99.2 | Consolidated Financial Statements for the Nine Months Ended September 30, 2025 and 2024 and Independent Auditors’ Review Report pursuant to International Financial Reporting Standards adopted by ROC (“Taiwan-IFRSs”) | |
| 99.3 | Consolidated Financial Statements for the Nine Months Ended September 30, 2025 and 2024 pursuant to International Financial Reporting Standards issued by the International Accounting Standards Board (“IFRSs”) | |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant Chunghwa Telecom Co., Ltd. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: November 10, 2025 |
||||||
| Chunghwa Telecom Co., Ltd. | ||||||
| By: |
/s/ Wen-Hsin Hsu | |||||
| Name: |
Wen-Hsin Hsu | |||||
| Title: |
Chief Financial Officer | |||||
3
Exhibit 99.1
Chunghwa Telecom’s Material Information as Reported to Taiwan Stock Exchange Corporation
| Subject: | To announce the differences between consolidated financial statements for the nine months ended September 30, 2025 under Taiwan-IFRSs and that under IFRSs |
To which item it meets – article 4 paragraph xx:47 (Form 1)
Date of events: 2025/11/10
Contents:
| 1. | Date of occurrence of the event: |
2025/11/10
| 2. | Year/Quarter of the financial report: |
The third quarter of 2025
| 3. | Accounting principles applied for securities listed domestically: |
Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China (“Taiwan-IFRSs”)
| 4. | Inconsistent items/amounts in financial reports for securities listed domestically: |
Under Taiwan-IFRSs, Chunghwa Telecom Co., Ltd. and its subsidiaries (or the “Company”) reported consolidated net income of NT$9,854,849 thousand and NT$30,655,286 thousand, consolidated net income attributable to stockholders of the parent of NT$9,440,098 thousand and NT$29,406,456 thousand, and basic earnings per share of NT$1.22 and NT$3.79 for the three months and nine months ended September 30, 2025, respectively. The Company also reported total consolidated assets of NT$513,095,556 thousand, total consolidated liabilities of NT$122,665,684 thousand, and total consolidated equity of NT$390,429,872 thousand as of September 30, 2025.
- 1 -
| 5. | Accounting principles applied for securities issued overseas: |
IAS 34 “Interim Financial Reporting” as issued by the International Accounting Standard Board (“IFRSs”)
| 6. | Inconsistent items/ amounts (securities issued overseas): |
Under IFRSs, the Company reported consolidated net income of NT$9,336 million and NT$31,153 million, consolidated net income attributable to stockholders of the parent of NT$8,941 million and NT$29,896 million, and basic earnings per share of NT$1.15 and NT$3.85 for the three months and nine months ended September 30, 2025, respectively. The Company also reported total consolidated assets of NT$512,903 million, total consolidated liabilities of NT$124,268 million, and total consolidated equity of NT$388,635 million as of September 30, 2025.
| 7. | Inconsistent items/amounts in financial information for securities issued overseas: |
The differences between consolidated net income under Taiwan-IFRSs and that under IFRSs followed by the Company mainly come from the timing of the recognition of income tax on unappropriated earnings. In addition, prior to incorporation, the Company was subject to the laws and regulations applicable to state-owned enterprises in Taiwan which differed from the generally accepted accounting principles as applicable to commercial companies. As such, revenue from providing fixed line connection service and selling prepaid phone cards was recognized at the time the service was performed or the card was sold by the Company. Upon incorporation, net assets greater than the capital stock were credited as additional paid-in-capital and part of the additional paid-in-capital was from the unearned revenues generated from connection fees and prepaid cards as of the date of incorporation. Under IFRSs, revenue from connection fees and prepaid phone cards was deferred at the time of the service performed or sale and recognized as revenue over time as the service is continuously performed or as consumed. This reclassification from additional paid-in capital to retained earnings did not affect total equity.
| 8. | Any other matters that need to be specified: |
Chunghwa Telecom’s earnings distribution and stockholders’ equity matters are in accordance with Taiwan-IFRSs.
- 2 -
Exhibit 99.2
Chunghwa Telecom Co., Ltd. and Subsidiaries
Consolidated Financial Statements for the
Nine Months Ended September 30, 2025 and 2024 and
Independent Auditors’ Review Report
INDEPENDENT AUDITORS’ REVIEW REPORT
PWCR25002096
To the Board of Directors and Stockholders of Chunghwa Telecom Co., Ltd.
Introduction
We have reviewed the accompanying consolidated balance sheets of Chunghwa Telecom Co., Ltd. and its subsidiaries (the “Company”) as of September 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine-month periods then ended, and notes to the consolidated financial statements, including a summary of material accounting policy information. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting”, that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.
Scope of Review
We conducted our reviews in accordance with the Standards on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company as of September 30, 2025 and 2024, and of its consolidated financial performance for the three-month and nine-month periods then ended and its consolidated cash flows for the nine-month periods then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting”, that came into effect as endorsed by the Financial Supervisory Commission.
| /s/ Huang, Shih-Chun | /s/ Hsu, Chien-Yeh | |||||
| For and on behalf of PricewaterhouseCoopers, Taiwan | ||||||
| November 7, 2025 | ||||||
Notice to Readers
The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ review report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
- 1 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands of New Taiwan Dollars)
| September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | |||||||||||||||||||
| ASSETS |
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| CURRENT ASSETS |
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| Cash and cash equivalents (Notes 6, 14 and 38) |
$ | 23,526,659 | 5 | $ | 36,259,689 | 6 | $ | 31,214,852 | 6 | |||||||||||||||
| Financial assets at fair value through profit or loss (Note 7) |
1,482 | — | 290 | — | 517 | — | ||||||||||||||||||
| Hedging financial assets (Note 21) |
6,275 | — | 1,133 | — | — | — | ||||||||||||||||||
| Contract assets (Note 30) |
8,052,300 | 2 | 8,401,343 | 2 | 7,444,080 | 1 | ||||||||||||||||||
| Trade notes and accounts receivable, net (Notes 10 and 30) |
26,520,593 | 5 | 26,025,696 | 5 | 23,085,802 | 5 | ||||||||||||||||||
| Receivables from related parties (Note 38) |
234,085 | — | 193,004 | — | 182,085 | — | ||||||||||||||||||
| Inventories (Notes 11, 30, 39 and 40) |
13,209,430 | 3 | 12,087,118 | 2 | 11,807,287 | 2 | ||||||||||||||||||
| Prepayments (Note 12) |
6,420,189 | 1 | 3,138,313 | 1 | 5,933,459 | 1 | ||||||||||||||||||
| Other current monetary assets (Notes 13 and 38) |
17,488,671 | 3 | 23,408,001 | 4 | 14,692,754 | 3 | ||||||||||||||||||
| Incremental costs of obtaining contracts (Note 30) |
338,581 | — | 339,172 | — | 339,055 | — | ||||||||||||||||||
| Other current assets (Notes 20 and 39) |
3,989,687 | 1 | 3,114,554 | 1 | 4,222,645 | 1 | ||||||||||||||||||
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|
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|||||||||||||
| Total current assets |
99,787,952 | 20 | 112,968,313 | 21 | 98,922,536 | 19 | ||||||||||||||||||
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| NONCURRENT ASSETS |
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| Financial assets at fair value through profit or loss (Note 7) |
1,221,640 | — | 1,005,236 | — | 1,032,819 | — | ||||||||||||||||||
| Financial assets at fair value through other comprehensive income (Note 8) |
5,682,562 | 1 | 4,666,976 | 1 | 4,808,272 | 1 | ||||||||||||||||||
| Financial assets at amortized cost (Note 9) |
2,000,000 | — | 2,000,000 | — | — | — | ||||||||||||||||||
| Investments accounted for using equity method (Note 15) |
8,823,513 | 2 | 9,073,464 | 2 | 8,745,273 | 2 | ||||||||||||||||||
| Contract assets (Note 30) |
4,483,188 | 1 | 4,327,424 | 1 | 4,243,524 | 1 | ||||||||||||||||||
| Property, plant and equipment (Notes 14, 16, 35, 38, 39 and 40) |
283,739,631 | 55 | 289,840,144 | 55 | 283,083,272 | 56 | ||||||||||||||||||
| Right-of-use assets (Notes 17 and 38) |
11,055,176 | 2 | 10,912,329 | 2 | 11,001,831 | 2 | ||||||||||||||||||
| Investment properties (Note 18) |
12,303,927 | 3 | 12,301,719 | 2 | 11,642,246 | 2 | ||||||||||||||||||
| Intangible assets (Notes 19 and 38) |
61,373,411 | 12 | 66,283,202 | 12 | 67,857,608 | 14 | ||||||||||||||||||
| Deferred income tax assets (Note 3) |
1,729,228 | — | 1,661,402 | — | 2,054,672 | — | ||||||||||||||||||
| Incremental costs of obtaining contracts (Note 30) |
1,133,181 | — | 1,221,652 | — | 1,125,205 | — | ||||||||||||||||||
| Net defined benefit assets (Note 3) |
9,372,847 | 2 | 8,883,719 | 2 | 6,416,911 | 1 | ||||||||||||||||||
| Prepayments (Notes 12 and 40) |
5,737,876 | 1 | 4,461,017 | 1 | 4,144,143 | 1 | ||||||||||||||||||
| Other noncurrent assets (Notes 20, 39 and 40) |
4,651,424 | 1 | 4,885,230 | 1 | 4,544,478 | 1 | ||||||||||||||||||
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| Total noncurrent assets |
413,307,604 | 80 | 421,523,514 | 79 | 410,700,254 | 81 | ||||||||||||||||||
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| TOTAL |
$ | 513,095,556 | 100 | $ | 534,491,827 | 100 | $ | 509,622,790 | 100 | |||||||||||||||
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| LIABILITIES AND EQUITY |
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| CURRENT LIABILITIES |
||||||||||||||||||||||||
| Short-term loans (Notes 14 and 22) |
$ | 755,000 | — | $ | 215,000 | — | $ | 430,000 | — | |||||||||||||||
| Financial liabilities at fair value through profit or loss (Note 7) |
68 | — | — | — | 1,080 | — | ||||||||||||||||||
| Hedging financial liabilities (Note 21) |
— | — | 1,907 | — | 662 | — | ||||||||||||||||||
| Contract liabilities (Notes 30 and 40) |
19,010,040 | 4 | 16,300,986 | 3 | 16,238,717 | 3 | ||||||||||||||||||
| Trade notes and accounts payable (Note 25) |
13,471,366 | 3 | 17,742,532 | 3 | 12,379,605 | 2 | ||||||||||||||||||
| Payables to related parties (Note 38) |
121,245 | — | 480,401 | — | 196,470 | — | ||||||||||||||||||
| Current tax liabilities (Note 3) |
2,999,228 | 1 | 4,718,103 | 1 | 2,438,114 | — | ||||||||||||||||||
| Lease liabilities (Notes 17, 35 and 38) |
3,811,130 | 1 | 3,557,874 | 1 | 3,539,219 | 1 | ||||||||||||||||||
| Other payables (Notes 26 and 35) |
23,055,133 | 4 | 26,581,353 | 5 | 21,693,143 | 5 | ||||||||||||||||||
| Provisions (Note 27) |
437,013 | — | 441,801 | — | 308,999 | — | ||||||||||||||||||
| Current portion of long-term liabilities (Notes 23, 24 and 39) |
1,899,750 | — | 8,802,526 | 2 | 8,798,425 | 2 | ||||||||||||||||||
| Other current liabilities |
958,011 | — | 1,050,559 | — | 1,248,054 | — | ||||||||||||||||||
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| Total current liabilities |
66,517,984 | 13 | 79,893,042 | 15 | 67,272,488 | 13 | ||||||||||||||||||
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| NONCURRENT LIABILITIES |
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| Long-term loans (Notes 23 and 39) |
1,600,000 | — | 1,631,354 | — | 1,600,000 | — | ||||||||||||||||||
| Bonds payable (Note 24) |
23,287,336 | 5 | 21,689,326 | 4 | 21,688,442 | 5 | ||||||||||||||||||
| Contract liabilities (Notes 30 and 40) |
6,599,428 | 1 | 7,540,730 | 2 | 7,638,614 | 2 | ||||||||||||||||||
| Deferred income tax liabilities (Note 3) |
2,741,963 | 1 | 2,658,419 | — | 2,596,198 | 1 | ||||||||||||||||||
| Provisions (Note 27) |
318,779 | — | 534,684 | — | 501,057 | — | ||||||||||||||||||
| Lease liabilities (Notes 17, 35 and 38) |
7,225,607 | 1 | 7,333,503 | 2 | 7,456,843 | 1 | ||||||||||||||||||
| Customers’ deposits (Note 38) |
5,226,712 | 1 | 5,310,453 | 1 | 5,114,595 | 1 | ||||||||||||||||||
| Net defined benefit liabilities (Note 3) |
2,147,596 | — | 2,107,224 | — | 2,133,807 | — | ||||||||||||||||||
| Other noncurrent liabilities |
7,000,279 | 1 | 7,688,236 | 2 | 6,933,145 | 1 | ||||||||||||||||||
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| Total noncurrent liabilities |
56,147,700 | 10 | 56,493,929 | 11 | 55,662,701 | 11 | ||||||||||||||||||
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| Total liabilities |
122,665,684 | 23 | 136,386,971 | 26 | 122,935,189 | 24 | ||||||||||||||||||
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| EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT (Notes 14 and 29) |
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| Common stocks |
77,574,465 | 15 | 77,574,465 | 15 | 77,574,465 | 15 | ||||||||||||||||||
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| Additional paid-in capital |
172,120,952 | 34 | 171,587,279 | 32 | 171,572,234 | 34 | ||||||||||||||||||
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| Retained earnings |
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| Legal reserve |
77,574,465 | 15 | 77,574,465 | 15 | 77,574,465 | 15 | ||||||||||||||||||
| Special reserve |
2,675,419 | 1 | 2,675,419 | — | 2,675,419 | 1 | ||||||||||||||||||
| Unappropriated earnings |
45,570,881 | 9 | 54,953,379 | 10 | 44,148,475 | 9 | ||||||||||||||||||
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| Total retained earnings |
125,820,765 | 25 | 135,203,263 | 25 | 124,398,359 | 25 | ||||||||||||||||||
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| Others |
1,097,574 | — | 585,683 | — | 560,077 | — | ||||||||||||||||||
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| Total equity attributable to stockholders of the parent |
376,613,756 | 74 | 384,950,690 | 72 | 374,105,135 | 74 | ||||||||||||||||||
| NONCONTROLLING INTERESTS (Notes 14 and 29) |
13,816,116 | 3 | 13,154,166 | 2 | 12,582,466 | 2 | ||||||||||||||||||
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| Total equity |
390,429,872 | 77 | 398,104,856 | 74 | 386,687,601 | 76 | ||||||||||||||||||
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| TOTAL |
$ | 513,095,556 | 100 | $ | 534,491,827 | 100 | $ | 509,622,790 | 100 | |||||||||||||||
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The accompanying notes are an integral part of the consolidated financial statements.
- 2 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
| REVENUES (Notes 30, 38 and 44) |
$ | 57,924,337 | 100 | $ | 55,613,476 | 100 | $ | 170,463,142 | 100 | $ | 164,672,680 | 100 | ||||||||||||||||||||
| OPERATING COSTS (Notes 11, 28, 30, 31 and 38) |
36,412,454 | 63 | 35,207,760 | 63 | 105,570,809 | 62 | 102,948,193 | 63 | ||||||||||||||||||||||||
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| GROSS PROFIT |
21,511,883 | 37 | 20,405,716 | 37 | 64,892,333 | 38 | 61,724,487 | 37 | ||||||||||||||||||||||||
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| OPERATING EXPENSES (Notes 10, 28, 31 and 38) |
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| Marketing |
6,418,454 | 11 | 6,294,507 | 11 | 18,969,991 | 11 | 18,416,022 | 11 | ||||||||||||||||||||||||
| General and administrative |
1,785,161 | 3 | 1,662,723 | 3 | 5,373,339 | 3 | 4,979,880 | 3 | ||||||||||||||||||||||||
| Research and development |
1,097,567 | 2 | 1,067,585 | 2 | 3,228,357 | 2 | 3,015,340 | 2 | ||||||||||||||||||||||||
| Expected credit loss (reversal of credit loss) |
112,529 | — | (4,385 | ) | — | 160,931 | — | 75,556 | — | |||||||||||||||||||||||
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| Total operating expenses |
9,413,711 | 16 | 9,020,430 | 16 | 27,732,618 | 16 | 26,486,798 | 16 | ||||||||||||||||||||||||
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| OTHER INCOME AND EXPENSES (Note 31) |
2,005 | — | (9,026 | ) | — | 8,219 | — | (9,715 | ) | — | ||||||||||||||||||||||
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| INCOME FROM OPERATIONS |
12,100,177 | 21 | 11,376,260 | 21 | 37,167,934 | 22 | 35,227,974 | 21 | ||||||||||||||||||||||||
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| NON-OPERATING INCOME AND EXPENSES |
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| Interest income (Note 38) |
180,894 | — | 173,554 | — | 694,718 | — | 568,319 | 1 | ||||||||||||||||||||||||
| Other income (Notes 31 and 38) |
62,363 | — | 93,238 | — | 442,104 | — | 418,640 | — | ||||||||||||||||||||||||
| Other gains and losses (Notes 14, 15, 31, 37 and 38) |
(52,773 | ) | — | (108,599 | ) | — | (40,503 | ) | — | (202,750 | ) | — | ||||||||||||||||||||
| Interest expenses (Notes 17, 31 and 38) |
(91,141 | ) | — | (85,814 | ) | — | (272,678 | ) | — | (252,274 | ) | — | ||||||||||||||||||||
| Share of profits of associates and joint ventures accounted for using equity method (Note 15) |
58,554 | — | 40,463 | — | 95,767 | — | 63,658 | — | ||||||||||||||||||||||||
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| Total non-operating income and expenses |
157,897 | — | 112,842 | — | 919,408 | — | 595,593 | 1 | ||||||||||||||||||||||||
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| INCOME BEFORE INCOME TAX |
12,258,074 | 21 | 11,489,102 | 21 | 38,087,342 | 22 | 35,823,567 | 22 | ||||||||||||||||||||||||
| INCOME TAX EXPENSE (Notes 3 and 32) |
2,403,225 | 4 | 2,203,816 | 4 | 7,432,056 | 4 | 6,822,893 | 4 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| NET INCOME |
9,854,849 | 17 | 9,285,286 | 17 | 30,655,286 | 18 | 29,000,674 | 18 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| TOTAL OTHER COMPREHENSIVE INCOME (LOSS) |
||||||||||||||||||||||||||||||||
| Items that will not be reclassified to profit or loss: |
||||||||||||||||||||||||||||||||
| Unrealized gain or loss on investments in equity instruments at fair value through other comprehensive income (Notes 29 and 37) |
(284,150 | ) | — | (154,544 | ) | — | 753,466 | — | 86,254 | — | ||||||||||||||||||||||
| Gain or loss on hedging instruments subject to basis adjustment (Note 21) |
19,430 | — | (763 | ) | — | 7,049 | — | (618 | ) | — | ||||||||||||||||||||||
| Share of other comprehensive income (loss) of associates and joint ventures (Notes 15 and 29) |
245 | — | (1,646 | ) | — | (552 | ) | — | (407 | ) | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (264,475 | ) | — | (156,953 | ) | — | 759,963 | — | 85,229 | — | |||||||||||||||||||||||
|
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|
|||||||||||||||||
(Continued)
- 3 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
| Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||||||||||||||||||
| Exchange differences arising from the translation of the foreign operations |
$ | 161,071 | — | $ | (21,603 | ) | — | $ | (269,914 | ) | — | $ | 115,246 | — | ||||||||||||||||||
| Share of other comprehensive income (loss) of associates and joint ventures (Notes 15 and 29) |
19,807 | — | 20,043 | — | (3,576 | ) | — | 41,413 | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 180,878 | — | (1,560 | ) | — | (273,490 | ) | — | 156,659 | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total other comprehensive income (loss), net of income tax |
(83,597 | ) | — | (158,513 | ) | — | 486,473 | — | 241,888 | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| TOTAL COMPREHENSIVE INCOME |
$ | 9,771,252 | 17 | $ | 9,126,773 | 17 | $ | 31,141,759 | 18 | $ | 29,242,562 | 18 | ||||||||||||||||||||
|
|
|
|
|
|
|
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|
|
|
|
|
|
|||||||||||||||||
| NET INCOME ATTRIBUTABLE TO |
||||||||||||||||||||||||||||||||
| Stockholders of the parent |
$ | 9,440,098 | 16 | $ | 9,005,006 | 16 | $ | 29,406,456 | 17 | $ | 28,216,292 | 18 | ||||||||||||||||||||
| Noncontrolling interests |
414,751 | 1 | 280,280 | 1 | 1,248,830 | 1 | 784,382 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 9,854,849 | 17 | $ | 9,285,286 | 17 | $ | 30,655,286 | 18 | $ | 29,000,674 | 18 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO |
||||||||||||||||||||||||||||||||
| Stockholders of the parent |
$ | 9,345,099 | 16 | $ | 8,843,774 | 16 | $ | 29,916,625 | 17 | $ | 28,423,830 | 18 | ||||||||||||||||||||
| Noncontrolling interests |
426,153 | 1 | 282,999 | 1 | 1,225,134 | 1 | 818,732 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 9,771,252 | 17 | $ | 9,126,773 | 17 | $ | 31,141,759 | 18 | $ | 29,242,562 | 18 | |||||||||||||||||||||
|
|
|
|
|
|
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|
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|
|||||||||||||||||
| EARNINGS PER SHARE (Note 33) |
||||||||||||||||||||||||||||||||
| Basic |
$ | 1.22 | $ | 1.16 | $ | 3.79 | $ | 3.64 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Diluted |
$ | 1.22 | $ | 1.16 | $ | 3.78 | $ | 3.63 | ||||||||||||||||||||||||
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|
|||||||||||||||||||||||||
| The accompanying notes are an integral part of the consolidated financial statements. | (Concluded) |
- 4 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In Thousands of New Taiwan Dollars)
| Equity Attributable to Stockholders of the Parent (Notes 14, 21 and 29) | ||||||||||||||||||||||||||||||||||||||||||||
| Others | ||||||||||||||||||||||||||||||||||||||||||||
| Exchange Differences Arising from the Translation of the Foreign Operations |
Unrealized Gain or Loss on Financial Assets at Fair Value Through Other Comprehensive Income |
|||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings | Gain or Loss on Hedging Instruments |
Noncontrolling Interests (Notes 14 and 29) |
||||||||||||||||||||||||||||||||||||||||||
| Common Stocks |
Additional Paid-in Capital |
Legal Reserve |
Special Reserve | Unappropriated Earnings |
Total | Total Equity | ||||||||||||||||||||||||||||||||||||||
| BALANCE, JANUARY 1, 2024 |
$ | 77,574,465 | $ | 171,289,086 | $ | 77,574,465 | $ | 2,898,503 | $ | 52,618,677 | $ | (167,812 | ) | $ | 520,748 | $ | (44 | ) | $ | 382,308,088 | $ | 12,596,252 | $ | 394,904,340 | ||||||||||||||||||||
| Appropriation of 2023 earnings |
||||||||||||||||||||||||||||||||||||||||||||
| Special reserve |
— | — | — | (223,084 | ) | 223,084 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| Cash dividends distributed by Chunghwa |
— | — | — | — | (36,909,931 | ) | — | — | — | (36,909,931 | ) | — | (36,909,931 | ) | ||||||||||||||||||||||||||||||
| Cash dividends distributed by subsidiaries |
— | — | — | — | — | — | — | — | — | (898,565 | ) | (898,565 | ) | |||||||||||||||||||||||||||||||
| Payment of unclaimed dividend |
— | (123 | ) | — | — | — | — | — | — | (123 | ) | — | (123 | ) | ||||||||||||||||||||||||||||||
| Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method |
— | 62,904 | — | — | — | — | — | — | 62,904 | (1,728 | ) | 61,176 | ||||||||||||||||||||||||||||||||
| Actual disposal of interests in subsidiaries |
— | 224,293 | — | — | — | — | — | — | 224,293 | 34,480 | 258,773 | |||||||||||||||||||||||||||||||||
| Net income for the nine months ended September 30, 2024 |
— | — | — | — | 28,216,292 | — | — | — | 28,216,292 | 784,382 | 29,000,674 | |||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) for the nine months ended September 30, 2024 |
— | — | — | — | 353 | 121,595 | 86,208 | (618 | ) | 207,538 | 34,350 | 241,888 | ||||||||||||||||||||||||||||||||
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|
|
|||||||||||||||||||||||
| Total comprehensive income (loss) for the nine months ended September 30, 2024 |
— | — | — | — | 28,216,645 | 121,595 | 86,208 | (618 | ) | 28,423,830 | 818,732 | 29,242,562 | ||||||||||||||||||||||||||||||||
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|
|||||||||||||||||||||||
| Changes in equities of subsidiaries |
— | (3,926 | ) | — | — | — | — | — | — | (3,926 | ) | 33,295 | 29,369 | |||||||||||||||||||||||||||||||
|
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|
|||||||||||||||||||||||
| BALANCE, SEPTEMBER 30, 2024 |
$ | 77,574,465 | $ | 171,572,234 | $ | 77,574,465 | $ | 2,675,419 | $ | 44,148,475 | $ | (46,217 | ) | $ | 606,956 | $ | (662 | ) | $ | 374,105,135 | $ | 12,582,466 | $ | 386,687,601 | ||||||||||||||||||||
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|
|||||||||||||||||||||||
| BALANCE, JANUARY 1, 2025 |
$ | 77,574,465 | $ | 171,587,279 | $ | 77,574,465 | $ | 2,675,419 | $ | 54,953,379 | $ | 22,852 | $ | 563,605 | $ | (774 | ) | $ | 384,950,690 | $ | 13,154,166 | $ | 398,104,856 | |||||||||||||||||||||
| Appropriation of 2024 earnings |
||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends distributed by Chunghwa |
— | — | — | — | (38,787,232 | ) | — | — | — | (38,787,232 | ) | — | (38,787,232 | ) | ||||||||||||||||||||||||||||||
| Cash dividends distributed by subsidiaries |
— | — | — | — | — | — | — | — | — | (1,094,115 | ) | (1,094,115 | ) | |||||||||||||||||||||||||||||||
| Unclaimed dividend |
— | 2,033 | — | — | — | — | — | — | 2,033 | — | 2,033 | |||||||||||||||||||||||||||||||||
| Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method |
— | (6,128 | ) | — | — | — | — | — | — | (6,128 | ) | — | (6,128 | ) | ||||||||||||||||||||||||||||||
| Change in additional paid-in capital for not participating in the capital increase of subsidiaries |
— | 531,781 | — | — | — | — | — | — | 531,781 | 500,016 | 1,031,797 | |||||||||||||||||||||||||||||||||
| Net income for the nine months ended September 30, 2025 |
— | — | — | — | 29,406,456 | — | — | — | 29,406,456 | 1,248,830 | 30,655,286 | |||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) for the nine months ended September 30, 2025 |
— | — | — | — | (1,722 | ) | (260,824 | ) | 765,666 | 7,049 | 510,169 | (23,696 | ) | 486,473 | ||||||||||||||||||||||||||||||
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|
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|
|
|
|
|
|
|||||||||||||||||||||||
| Total comprehensive income (loss) for the nine months ended September 30, 2025 |
— | — | — | — | 29,404,734 | (260,824 | ) | 765,666 | 7,049 | 29,916,625 | 1,225,134 | 31,141,759 | ||||||||||||||||||||||||||||||||
|
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|
|
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|
|
|
|
|
|
|
|||||||||||||||||||||||
| Changes in equities of subsidiaries |
— | 5,987 | — | — | — | — | — | — | 5,987 | 11,381 | 17,368 | |||||||||||||||||||||||||||||||||
| Net increase in noncontrolling interests |
— | — | — | — | — | — | — | — | — | 19,534 | 19,534 | |||||||||||||||||||||||||||||||||
|
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|
|||||||||||||||||||||||
| BALANCE, SEPTEMBER 30, 2025 |
$ | 77,574,465 | $ | 172,120,952 | $ | 77,574,465 | $ | 2,675,419 | $ | 45,570,881 | $ | (237,972 | ) | $ | 1,329,271 | $ | 6,275 | $ | 376,613,756 | $ | 13,816,116 | $ | 390,429,872 | |||||||||||||||||||||
|
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|
|||||||||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
- 5 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
| Nine Months Ended September 30 | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
| Income before income tax |
$ | 38,087,342 | $ | 35,823,567 | ||||
| Adjustments for: |
||||||||
| Depreciation |
25,050,161 | 24,658,206 | ||||||
| Amortization |
5,002,602 | 5,021,075 | ||||||
| Amortization of incremental costs of obtaining contracts |
709,247 | 670,972 | ||||||
| Expected credit loss |
160,931 | 75,556 | ||||||
| Valuation loss on financial assets and liabilities at fair value through profit or loss, net |
75,282 | 125,526 | ||||||
| Interest expense |
272,678 | 252,274 | ||||||
| Interest income |
(694,718 | ) | (568,319 | ) | ||||
| Dividend income |
(280,667 | ) | (239,908 | ) | ||||
| Compensation cost of share-based payment transactions |
3,721 | 6,782 | ||||||
| Share of profits of associates and joint ventures accounted for using equity method |
(95,767 | ) | (63,658 | ) | ||||
| Loss (gain) on disposal of property, plant and equipment |
(8,219 | ) | 9,715 | |||||
| Gain on disposal of financial instruments |
— | (1,073 | ) | |||||
| Loss on disposal of investments accounted for using equity method |
2 | — | ||||||
| Provision for impairment loss and obsolescence of inventory |
54,684 | 63,286 | ||||||
| Gain on disposal of subsidiaries |
(15,290 | ) | — | |||||
| Others |
(5,541 | ) | 14,062 | |||||
| Changes in operating assets and liabilities: |
||||||||
| Decrease (increase) in: |
||||||||
| Contract assets |
180,976 | (1,207,484 | ) | |||||
| Trade notes and accounts receivable |
(685,351 | ) | 1,707,701 | |||||
| Receivables from related parties |
(41,081 | ) | (103,996 | ) | ||||
| Inventories |
(1,183,517 | ) | (349,808 | ) | ||||
| Prepayments |
(3,074,612 | ) | (2,864,919 | ) | ||||
| Other current assets |
(877,429 | ) | (1,400,386 | ) | ||||
| Other current monetary assets |
(1,471,562 | ) | (11,322 | ) | ||||
| Incremental cost of obtaining contracts |
(620,185 | ) | (984,900 | ) | ||||
| Increase (decrease) in: |
||||||||
| Contract liabilities |
1,775,128 | 2,228,563 | ||||||
| Trade notes and accounts payable |
(4,261,847 | ) | (2,016,221 | ) | ||||
| Payables to related parties |
(359,156 | ) | (188,619 | ) | ||||
| Other payables |
(2,029,372 | ) | (1,625,974 | ) | ||||
| Provisions |
(220,693 | ) | (12,617 | ) | ||||
| Net defined benefit plans |
(448,756 | ) | (417,951 | ) | ||||
| Other current liabilities |
(93,860 | ) | 275,702 | |||||
|
|
|
|
|
|||||
| Cash generated from operations |
54,905,131 | 58,875,832 | ||||||
| Interests paid |
(311,543 | ) | (288,396 | ) | ||||
| Income taxes paid |
(9,136,858 | ) | (8,830,588 | ) | ||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
45,456,730 | 49,756,848 | ||||||
|
|
|
|
|
|||||
(Continued)
- 6 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
| Nine Months Ended September 30 | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
| Acquisition of financial assets at fair value through other comprehensive income |
$ | (261,875 | ) | $ | (312,780 | ) | ||
| Proceeds from capital reduction of financial assets at fair value through other comprehensive income |
— | 6,431 | ||||||
| Acquisition of financial assets at fair value through profit or loss |
(296,841 | ) | (128,018 | ) | ||||
| Proceeds from disposal of financial assets at fair value through profit or loss |
— | 4,468 | ||||||
| Acquisition of investments accounted for using equity method |
(14,400 | ) | (400,319 | ) | ||||
| Proceeds from disposal of investments accounted for using equity method |
5,026 | — | ||||||
| Net cash outflow from loss of control of subsidiaries |
(8,664 | ) | — | |||||
| Acquisition of property, plant and equipment |
(17,300,638 | ) | (16,015,567 | ) | ||||
| Proceeds from disposal of property, plant and equipment |
14,709 | 10,236 | ||||||
| Acquisition of intangible assets |
(90,630 | ) | (137,447 | ) | ||||
| Acquisition of investment properties |
(7,060 | ) | — | |||||
| Acquisition of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months |
(43,442,773 | ) | (56,160,759 | ) | ||||
| Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months |
50,766,532 | 61,787,927 | ||||||
| Decrease in other noncurrent assets |
221,446 | 81,535 | ||||||
| Increase in prepayments for leases |
(1,485,418 | ) | (1,042,629 | ) | ||||
| Interests received |
687,104 | 605,270 | ||||||
| Dividends received |
563,740 | 570,622 | ||||||
| Proceeds from profit distribution of financial assets at fair value through profit or loss |
4,031 | 3,446 | ||||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(10,645,711 | ) | (11,127,584 | ) | ||||
|
|
|
|
|
|||||
| CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
| Proceeds from short-term loans |
2,880,000 | 720,000 | ||||||
| Repayment of short-term loans |
(2,275,000 | ) | (875,000 | ) | ||||
| Proceeds from issuance of bonds |
3,500,000 | — | ||||||
| Repayment of bonds payable |
(8,800,000 | ) | — | |||||
| Payments for transaction costs attributable to the issuance of bonds |
(4,985 | ) | — | |||||
| Repayment of long-term loans |
(35,000 | ) | — | |||||
| Decrease in customers’ deposits |
(75,303 | ) | (205,489 | ) | ||||
| Payments for the principal of lease liabilities |
(3,156,992 | ) | (2,923,928 | ) | ||||
| Decrease in other noncurrent liabilities |
(687,957 | ) | (472,413 | ) | ||||
| Cash dividends paid |
(38,787,232 | ) | (36,909,931 | ) | ||||
| Partial disposal of interests in subsidiaries without a loss of control |
— | 258,773 | ||||||
(Continued)
- 7 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
| Nine Months Ended September 30 | ||||||||
| 2025 | 2024 | |||||||
| Cash dividends distributed to noncontrolling interests |
$ | (1,078,594 | ) | $ | (887,217 | ) | ||
| Change in other noncontrolling interests |
1,045,444 | 22,587 | ||||||
| Unclaimed dividend (payment of unclaimed dividend) |
2,033 | (123 | ) | |||||
|
|
|
|
|
|||||
| Net cash used in financing activities |
(47,473,586 | ) | (41,272,741 | ) | ||||
|
|
|
|
|
|||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
(70,463 | ) | 34,445 | |||||
|
|
|
|
|
|||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS |
(12,733,030 | ) | (2,609,032 | ) | ||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
36,259,689 | 33,823,884 | ||||||
|
|
|
|
|
|||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 23,526,659 | $ | 31,214,852 | ||||
|
|
|
|
|
|||||
| The accompanying notes are an integral part of the consolidated financial statements. | (Concluded) |
- 8 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| 1. | GENERAL |
Chunghwa Telecom Co., Ltd. (“Chunghwa”; Chunghwa together with its subsidiaries are hereinafter referred to collectively as the “Company”.) was incorporated on July 1, 1996 in the Republic of China (“ROC”). Chunghwa is a company limited by shares and, prior to August 2000, was wholly owned by the Ministry of Transportation and Communications (“MOTC”). Prior to July 1, 1996, the current operations of Chunghwa were carried out under the Directorate General of Telecommunications (“DGT”). The DGT was established by the MOTC in June 1943 to take primary responsibility in the development of telecommunications infrastructure and to formulate policies related to telecommunications. On July 1, 1996, the telecom operations of the DGT were spun-off as Chunghwa which continues to carry out the business and the DGT continues to be the industry regulator.
Effective August 12, 2005, the MOTC completed the process of privatizing Chunghwa by reducing the government ownership to below 50% in various stages. In July 2000, Chunghwa received approval from the Securities and Futures Commission (the “SFC”) for a domestic initial public offering and its common stocks were listed and traded on the Taiwan Stock Exchange (the “TWSE”) on October 27, 2000. Certain of Chunghwa’s common stocks were sold, in connection with the foregoing privatization plan, in domestic public offerings at various dates from August 2000 to July 2003. Certain of Chunghwa’s common stocks were also sold in an international offering of securities in the form of American Depository Shares (“ADS”) on July 17, 2003 and were listed and traded on the New York Stock Exchange (the “NYSE”). The MOTC sold common stocks of Chunghwa by auction in the ROC on August 9, 2005 and completed the second international offering on August 10, 2005. Upon completion of the share transfers associated with these offerings on August 12, 2005, the MOTC owned less than 50% of the outstanding shares of Chunghwa and completed the privatization plan.
The consolidated financial statements are presented in Chunghwa’s functional currency, New Taiwan dollars.
| 2. | APPROVAL OF FINANCIAL STATEMENTS |
The consolidated financial statements were approved by the Board of Directors on November 7, 2025.
| 3. | SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION |
Except for the following items, the accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024. Please refer to the consolidated financial statements for the year ended December 31, 2024 for the details.
Statement of Compliance
The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission (the “FSC”). The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements as required by International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), International Financial Reporting Interpretations Committee (IFRIC) and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the FSC.
- 9 -
Basis of Consolidation
The detail information of the subsidiaries at the end of reporting period was as follows:
| Percentage of Ownership Interests | ||||||||||||
| Name of Investor | Name of Investee | Main Businesses and Products |
September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
Note | ||||||
| Chunghwa Telecom Co., Ltd. |
Senao International Co., Ltd. (“SENAO”) |
Handset and peripherals retailer, sales of CHT mobile phone plans as an agent |
28 | 28 | 28 | a. | ||||||
| Light Era Development Co., Ltd. (“LED”) |
Planning and development of real estate and intelligent buildings, and property management |
100 | 100 | 100 | ||||||||
| Donghwa Telecom Co., Ltd. (“DHT”) |
International private leased circuit, IP VPN service, and IP transit services |
100 | 100 | 100 | ||||||||
| Chunghwa Telecom Singapore Pte., Ltd. (“CHTS”) |
International private leased circuit, IP VPN service, and IP transit services |
100 | 100 | 100 | ||||||||
| Chunghwa System Integration Co., Ltd. (“CHSI”) |
Providing system integration services and telecommunications equipment |
100 | 100 | 100 | ||||||||
| Chunghwa Investment Co., Ltd. (“CHI”) |
Investment |
89 | 89 | 89 | ||||||||
| CHIEF Telecom Inc. (“CHIEF”) |
Network integration, internet data center (“IDC”), communications integration and cloud application services |
56 | 56 | 56 | b. | |||||||
| CHYP Multimedia Marketing & Communications Co., Ltd. (“CHYP”) |
Digital information supply services and advertisement services |
100 | 100 | 100 | ||||||||
| Prime Asia Investments Group Ltd. (“Prime Asia”) |
Investment |
100 | 100 | 100 | ||||||||
| Spring House Entertainment Tech. Inc. (“SHE”) |
Software design services, internet contents production and play, and motion picture production and distribution |
56 | 56 | 56 | ||||||||
| Chunghwa Telecom Global, Inc. (“CHTG”) |
International private leased circuit, internet services, and transit services |
100 | 100 | 100 | ||||||||
| Chunghwa Telecom Vietnam Co., Ltd. (“CHTV”) |
Intelligent energy saving solutions, international circuit, and information and communication technology (“ICT”) services |
100 | 100 | 100 | ||||||||
| Smartfun Digital Co., Ltd. (“SFD”) |
Providing diversified family education digital services |
65 | 65 | 65 | ||||||||
| Chunghwa Telecom Japan Co., Ltd. (“CHTJ”) |
International private leased circuit, IP VPN service, and IP transit services |
100 | 100 | 100 | ||||||||
| Chunghwa Sochamp Technology Inc. (“CHST”) |
Design, development and production of Automatic License Plate Recognition software and hardware |
— | 37 | 37 | c. | |||||||
| Honghwa International Co., Ltd. (“HHI”) |
Telecommunications engineering, sales agent of mobile phone plan application and other business services, etc. |
100 | 100 | 100 | ||||||||
| Chunghwa Leading Photonics Tech Co., Ltd. (“CLPT”) |
Production and sale of electronic components and finished products |
70 | 70 | 70 | d. | |||||||
| Chunghwa Telecom (Thailand) Co., Ltd. (“CHTT”) |
International private leased circuit, IP VPN service, ICT and cloud VAS services |
100 | 100 | 100 | ||||||||
(Continued)
- 10 -
| Percentage of Ownership Interests | ||||||||||||
| Name of Investor | Name of Investee | Main Businesses and Products |
September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
Note | ||||||
| CHT Security Co., Ltd. (“CHTSC”) |
Computing equipment installation, wholesale of computing and business machinery equipment and software, management consulting services, data processing services, digital information supply services and internet identity services |
57 | 63 | 63 | e. | |||||||
| International Integrated Systems, Inc. (“IISI”) |
IT solution provider, IT application consultation, system integration and package solution |
50 | 50 | 50 | f. | |||||||
| Chunghwa Digital Cultural and Creative Capital Co., Ltd (“CDCC Capital”) |
Investment and management consulting |
100 | 100 | 100 | g. | |||||||
| Chunghwa Telecom Europe GmbH (“CHTEU”) |
International private leased circuit, internet services, transit services and ICT services |
100 | 100 | 100 | h. | |||||||
| Senao International Co., Ltd. |
Youth Co., Ltd. (“Youth”) |
Sale of information and communication technologies products |
96 | 96 | 96 | |||||||
| Aval Technologies Co., Ltd. (“Aval”) |
Sale of information and communication technologies products |
100 | 100 | 100 | ||||||||
| Senyoung Insurance Agent Co., Ltd. (“SENYOUNG”) |
Property and liability insurance agency |
100 | 100 | 100 | ||||||||
| Youth Co., Ltd. |
ISPOT Co., Ltd. (“ISPOT”) |
Sale of information and communication technologies products |
100 | 100 | 100 | |||||||
| Aval Technologies Co., Ltd. |
Wiin Technology Co., Ltd. (“Wiin”) |
Sale of information and communication technologies products |
100 | 100 | 100 | |||||||
| CHIEF Telecom Inc. |
Unigate Telecom Inc. (“Unigate”) |
Telecommunications and internet service |
100 | 100 | 100 | |||||||
| Chief International Corp. (“CIC”) |
Telecommunications and internet service |
100 | 100 | 100 | ||||||||
| Shanghai Chief Telecom Co., Ltd. (“SCT”) |
Telecommunications and internet service |
49 | 49 | 49 | i. | |||||||
| Chunghwa Investment Co., Ltd. |
Chunghwa Precision Test Tech. Co., Ltd. (“CHPT”) |
Production and sale of semiconductor testing components and printed circuit board |
34 | 34 | 34 | j. | ||||||
| Chunghwa Precision Test Tech. Co., Ltd. |
Chunghwa Precision Test Tech. USA Corporation (“CHPT (US)”) |
Design and after-sale services of semiconductor testing components and printed circuit board |
100 | 100 | 100 | |||||||
| CHPT Japan Co., Ltd. (“CHPT (JP)”) |
Related services of electronic parts, machinery processed products and printed circuit board |
100 | 100 | 100 | ||||||||
| Chunghwa Precision Test Tech. International, Ltd. (“CHPT (International)”) |
Wholesale and retail of electronic materials, and investment |
100 | 100 | 100 | ||||||||
| TestPro Investment Co., Ltd. (“TestPro”) |
Investment |
100 | 100 | 100 | ||||||||
| TestPro Investment Co., Ltd. |
NavCore Tech. Co., Ltd (“NavCore”) |
Sale and manufacturing of smart equipment, smart factory software and hardware integration and technical consulting service |
54 | 54 | 54 | |||||||
(Continued)
- 11 -
| Percentage of Ownership Interests | ||||||||||||
| Name of Investor | Name of Investee | Main Businesses and Products |
September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
Note | ||||||
| Prime Asia Investments Group Ltd. |
Chunghwa Hsingta Co., Ltd. (“CHC”) |
Investment |
100 | 100 | 100 | |||||||
| Chunghwa Precision Test Tech. International, Ltd. |
Shanghai Taihua Electronic Technology Limited (“STET”) |
Design of printed circuit board and related consultation service |
100 | 100 | 100 | |||||||
| Su Zhou Precision Test Tech. Ltd. (“SZPT”) |
Assembly processed of circuit board, design of printed circuit board and related consultation service |
100 | 100 | 100 | ||||||||
| International Integrated Systems, Inc. |
Unitronics Technology Corp. (“UTC”) |
Development and maintenance of information system |
100 | 100 | 100 | |||||||
| Chunghwa Telecom Singapore Pte., Ltd. |
Chunghwa Telecom Malaysia SDN. BHD. (“CHTM”) |
International private leased circuit, IP VPN service, and ICT services |
100 | — | — | k. | ||||||
(Concluded)
| a. | Chunghwa continues to control more than half of seats of the Board of Directors of SENAO through the support of large beneficial stockholders. As a result, the Company treated SENAO as a subsidiary. |
| b. | CHIEF issued new shares in December 2024 and March 2025 as its employees exercised options. Therefore, the Company’s ownership interest in CHIEF decreased to 58.57% and 58.56% as of December 31, 2024 and September 30, 2025, respectively. |
| c. | Chunghwa controlled more than half of seats of the Board of Directors of CHST as of December 31, 2024; therefore, the Company treated CHST as a subsidiary. Chunghwa no longer had more than half of seats of the Board of Directors of CHST since January 2025. As a result, the Company lost control over CHST and recognized CHST as an investment in associate. Please refer to Note 14(c) for details. |
| d. | CLPT issued new shares in July 2024 as its employees exercised options. Therefore, the Company’s ownership interest in CLPT decreased to 69.87% as of December 31, 2024. |
| e. | CHTSC conducted its initial public offering through public underwriting in September 2025, and Chunghwa did not participate in the capital increase of CHTSC in accordance with applicable regulations. CHTSC issued new shares in January 2024, March 2024, December 2024, February 2025, May 2025 and August 2025 as its employees exercised options. In addition, Chunghwa disposed of some shares of CHTSC in August 2024 before CHTSC traded its shares on the emerging stock market according to the local requirements. Therefore, the Company’s ownership interest in CHTSC decreased to 63.49%, 63.45% and 56.69% as of September 30, 2024, December 31, 2024 and September 30, 2025, respectively. |
| f. | Chunghwa disposed of some shares of IISI in August 2024 before IISI traded its shares on the emerging stock market according to the local requirements. Therefore, the Company’s ownership interest in IISI decreased to 49.64% as of December 31, 2024. Chunghwa continues to control more than half of seats of the Board of Directors of IISI. As a result, the Company treated IISI as a subsidiary. |
| g. | Chunghwa invested and established CDCC Capital in February 2024. Chunghwa obtained 100% ownership interest of CDCC Capital. |
- 12 -
| h. | Chunghwa invested and established CHTEU in July 2024. Chunghwa obtained 100% ownership interest of CHTEU. |
| i. | CHIEF has more than half of seats of the Board of Directors of SCT according to the mutual agreements among stockholders and gained control over SCT; hence, SCT is deemed as a subsidiary of the Company. |
| j. | Though the Company’s ownership interest in CHPT is less than 50%, the management considered the absolute and relative size of ownership interest, and the dispersion of shares owned by the other stockholders and concluded that the Company has a sufficiently dominant voting interest to direct the relevant activities; hence, CHPT is deemed as a subsidiary of the Company. |
| k. | CHTS established CHTM in June 2025 and obtained 100% ownership interest in CHTM. The investment capital was remitted in October 2025. |
The following diagram presented information regarding the relationship and percentages of ownership interests between Chunghwa and its subsidiaries as of September 30, 2025.
Other Material Accounting Policies
| a. | Defined benefit retirement benefits |
Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for other significant one-off events.
| b. | Taxation |
Income tax expense represents the sum of the tax currently payable and deferred tax. Income taxes for interim period are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.
The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Company expects to recover or settle the carrying amount of its assets and liabilities at balance sheet date.
- 13 -
| c. | Loss of control of subsidiaries |
When the Company loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (a) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (b) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Company accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Company directly disposed of the related assets or liabilities.
The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the cost on initial recognition of an investment in an associate.
| 4. | MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION, UNCERTAINTY AND ASSUMPTION |
In the application of the Company’s accounting policies, the management is required to make judgments, estimates and assumptions which are based on historical experience and other factors that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed by the management on an ongoing basis.
For the material accounting judgments and key sources of estimation, uncertainty and assumption applied in these consolidated financial statements, please refer to the consolidated financial statements for the year ended December 31, 2024.
| 5. | APPLICATION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS |
| a. | Initial application of the amendments to the IFRSs endorsed and issued into effect by the FSC |
The initial application of the amendments to the IFRSs issued by the International Accounting Standards Board and endorsed and issued into effect by the FSC does not have a material impact on the Company’s consolidated financial statements.
| b. | The IFRSs endorsed by the FSC for application starting from 2026 |
| New, Revised or Amended Standards and Interpretations |
Effective Date Announced by IASB | |||
| Amendments to IFRS 9 and IFRS 7 | Amendments to the Classification and Measurement of Financial Instruments |
January 1, 2026 | ||
| Amendments to IFRS 9 and IFRS 7 | Contracts Referencing Nature-Dependent Electricity |
January 1, 2026 | ||
| Amendments to IFRS Accounting Standards | Annual Improvements—Volume 11 | January 1, 2026 | ||
The application of the above new, revised or amended standards and interpretations will not have a material impact on the Company’s consolidated financial statements.
- 14 -
| c. | IFRSs issued by the IASB but not yet endorsed and issued into effect by the FSC |
|
New, Revised or Amended Standards and Interpretations |
Effective Date Announced by IASB | |||
| Amendments to IFRS 10 and IAS 28 | Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture |
To be determined by IASB | ||
| IFRS 18 | Presentation and Disclosure in Financial Statements |
January 1, 2027 | ||
| IFRS 19 | Subsidiaries without Public Accountability: Disclosures |
January 1, 2027 | ||
As of the date the consolidated financial statements were authorized for issue, the Company is continuously assessing the possible impact that the application of above standards and interpretations will have on the Company’s financial position and operating result and will disclose the relevant impact when the assessment is completed.
| 6. | CASH AND CASH EQUIVALENTS |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Cash |
||||||||||||
| Cash on hand |
$ | 322,378 | $ | 443,745 | $ | 446,732 | ||||||
| Bank deposits |
15,642,437 | 13,242,716 | 11,606,077 | |||||||||
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| 15,964,815 | 13,686,461 | 12,052,809 | ||||||||||
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| Cash equivalents (with maturities of less than three months) |
||||||||||||
| Commercial paper |
4,866,946 | 16,887,390 | 12,162,589 | |||||||||
| Negotiable certificates of deposit |
— | 2,800,000 | 4,100,000 | |||||||||
| Time deposits |
2,693,572 | 2,883,479 | 2,896,506 | |||||||||
| Stimulus vouchers |
1,326 | 2,359 | 2,948 | |||||||||
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| 7,561,844 | 22,573,228 | 19,162,043 | ||||||||||
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| $ | 23,526,659 | $ | 36,259,689 | $ | 31,214,852 | |||||||
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The annual yield rates of bank deposits, commercial paper, negotiable certificates of deposit and time deposits as of balance sheet dates were as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 | ||||
| Bank deposits |
0.00%~2.30% | 0.00%~2.55% | 0.00%~2.75% | |||
| Commercial paper |
0.95%~1.45% | 0.95%~1.56% | 0.95%~1.54% | |||
| Negotiable certificates of deposit |
— | 1.55%~1.70% | 1.50%~1.51% | |||
| Time deposits |
0.01%~4.10% | 0.01%~4.90% | 0.01%~5.56% |
- 15 -
| 7. | FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Financial assets-current |
||||||||||||
| Mandatorily measured at FVTPL |
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| Derivatives (not designated for hedge) |
||||||||||||
| Forward exchange contracts |
$ | 1,482 | $ | 290 | $ | 65 | ||||||
| Non-derivatives |
||||||||||||
| Listed stocks - domestic |
— | — | 452 | |||||||||
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| $ | 1,482 | $ | 290 | $ | 517 | |||||||
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| Financial assets-noncurrent |
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| Mandatorily measured at FVTPL |
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| Non-derivatives |
||||||||||||
| Non-listed stocks - domestic |
$ | 630,947 | $ | 628,737 | $ | 617,728 | ||||||
| Non-listed stocks - foreign |
31,112 | 32,415 | 67,891 | |||||||||
| Limited partnership - domestic |
496,374 | 307,327 | 308,063 | |||||||||
| Other investing agreements |
63,207 | 36,757 | 39,137 | |||||||||
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| $ | 1,221,640 | $ | 1,005,236 | $ | 1,032,819 | |||||||
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| Financial liabilities-current |
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| Held for trading |
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| Derivatives (not designated for hedge) |
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| Forward exchange contracts |
$ | 68 | $ | — | $ | 1,080 | ||||||
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Chunghwa’s Board of Directors approved an investment in TRF 1 L.P. at the amount of $300,000 thousand in January 2025. As of September 30, 2025, Chunghwa invested $120,000 thousand.
Chunghwa’s Board of Directors approved an investment in Taiwania Capital Buffalo Fund VI, L.P. at the amount of $600,000 thousand in January 2022. As of September 30, 2025, Chunghwa invested $400,000 thousand.
Outstanding forward exchange contracts not designated for hedge as of balance sheet dates were as follows:
| Currency | Maturity Period |
Contract Amount (In Thousands) | ||||||||
| September 30, 2025 |
||||||||||
| Forward exchange contracts—buy |
NT$/USD | October 2025 | NT$167,376/USD5,548 | |||||||
| Forward exchange contracts—sell |
USD/NT$ | October 2025 | USD300/NT$9,065 | |||||||
| (Continued) | ||||||||||
- 16 -
| Currency | Maturity Period |
Contract Amount (In Thousands) | ||||||||
| December 31, 2024 |
||||||||||
| Forward exchange contracts—buy |
NT$ | /EUR | March 2025 | NT$10,177/EUR300 | ||||||
| Forward exchange contracts—buy |
NT$ | /USD | January 2025 | NT$45,879/USD1,408 | ||||||
| September 30, 2024 |
||||||||||
| Forward exchange contracts—buy |
NT$ | /EUR | December 2024 | NT$70,581/EUR2,000 | ||||||
| Forward exchange contracts—buy |
NT$ | /USD | October 2024 | NT$71,940/USD2,245 | ||||||
| (Concluded) | ||||||||||
The Company entered into the above forward exchange contracts to manage its exposure to foreign currency risk due to fluctuations in exchange rates. However, the aforementioned derivatives did not meet the criteria for hedge accounting.
| 8. | FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NONCURRENT |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
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| Domestic investments |
||||||||||||
| Listed and emerging stocks |
$ | 102,198 | $ | 126,013 | $ | 208,063 | ||||||
| Non-listed stocks |
4,767,094 | 3,873,647 | 3,910,698 | |||||||||
| Foreign investments |
||||||||||||
| Non-listed stocks |
813,270 | 667,316 | 689,511 | |||||||||
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| $ | 5,682,562 | $ | 4,666,976 | $ | 4,808,272 | |||||||
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The Company holds the above foreign and domestic stocks for medium to long-term strategic purposes and expects to profit from long-term investment. Accordingly, the management elected to designate these investments in equity instruments at FVOCI as they believe that recognizing short-term fair value fluctuations of these investments in profit or loss is not consistent with the Company’s strategy of holding these investments for long-term purposes.
| 9. | FINANCIAL ASSETS AT AMORTIZED COST - NONCURRENT |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
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| Corporate bonds |
$ | 2,000,000 | $ | 2,000,000 | $ | — | ||||||
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The Company acquired the 10-year unsecured cumulative subordinated corporate bond of Fubon Life Insurance Co., Ltd. at the amount of $2,000,000 thousand in October 2024.
- 17 -
| 10. | TRADE NOTES AND ACCOUNTS RECEIVABLE, NET |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Trade notes and accounts receivable |
$ | 27,703,570 | $ | 27,168,306 | $ | 24,160,818 | ||||||
| Less: Loss allowance |
(1,182,977 | ) | (1,142,610 | ) | (1,075,016 | ) | ||||||
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| $ | 26,520,593 | $ | 26,025,696 | $ | 23,085,802 | |||||||
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The main credit terms range from 30 to 90 days.
The Company serves a large consumer base for telecommunications business; therefore, the concentration of credit risk is limited. When having transactions with customers, the Company considers the record of arrears in the past. In addition, the Company may also collect some telecommunication charges in advance to reduce the payment arrears in subsequent periods.
The Company adopted a policy of dealing with counterparties with certain credit ratings for project business and to obtain collateral where necessary to mitigate the risk of loss arising from defaults. Credit rating information is provided by independent rating agencies where available and, if such credit rating information is not available, the Company uses other publicly available financial information and its own historical transaction experience to rate its major customers. The Company continues to monitor the credit exposure and credit ratings of its counterparties and spread the credit risk amongst qualified counterparties.
In order to mitigate credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure the recoverability of receivables. In addition, the Company reviews the recoverable amount of receivables at balance sheet dates to ensure that adequate allowance is provided for possible irrecoverable amounts. In this regard, the management believes the Company’s credit risk could be reasonably reduced.
The Company applies the simplified approach to recognize expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for receivables. The expected credit losses on receivables are estimated using a provision matrix by reference to past default experience of the customers and an analysis of the customers’ current financial positions, as well as the forward-looking indicators such as macroeconomic business indicators.
When there is evidence indicating that the counterparty is in evasion, bankruptcy, deregistration or the accounts receivable are over two years past due and the recoverable amount cannot be reasonable estimated, the Company writes off the trade notes and accounts receivable. For accounts receivable that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.
Except for receivables arising from telecommunications business and project business, the Company’s remaining accounts receivable are insignificant. Therefore, only Chunghwa’s provision matrix arising from telecommunications business and project business is disclosed below:
September 30, 2025
| Not Past Due | Past Due Less than 30 Days |
Past Due 31 to 60 Days |
Past Due 61 to 90 Days |
Past Due 91 to 120 Days |
Past Due 121 to 180 Days |
Past Due over 180 Days |
Total | |||||||||||||||||||||||||
| Telecommunications business |
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| Expected credit loss rate (Note a) |
0%~1% | 1%~22% | 3%~67% | 13%~84% | 25%~91% | 52%~96% | 100% | |||||||||||||||||||||||||
| Gross carrying amount |
$ | 18,113,384 | $ | 386,351 | $ | 300,435 | $ | 94,127 | $ | 39,162 | $ | 27,104 | $ | 605,651 | $ | 19,566,214 | ||||||||||||||||
| Loss allowance (lifetime ECL) |
(49,986 | ) | (27,261 | ) | (32,572 | ) | (31,279 | ) | (31,448 | ) | (23,216 | ) | (605,651 | ) | (801,413 | ) | ||||||||||||||||
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|||||||||||||||||
| Amortized cost |
$ | 18,063,398 | $ | 359,090 | $ | 267,863 | $ | 62,848 | $ | 7,714 | $ | 3,888 | $ | — | $ | 18,764,801 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(Continued)
- 18 -
| Not Past Due | Past Due Less than 30 Days |
Past Due 31 to 60 Days |
Past Due 61 to 90 Days |
Past Due 91 to 120 Days |
Past Due 121 to 180 Days |
Past Due over 180 Days |
Total | |||||||||||||||||||||||||
| Project business |
||||||||||||||||||||||||||||||||
| Expected credit loss rate (Note b) |
0%~5% | 5% | 10% | 30% | 50% | 80% | 100% | |||||||||||||||||||||||||
| Gross carrying amount |
$ | 3,253,167 | $ | 671,511 | $ | 26,805 | $ | 55,862 | $ | 2,706 | $ | — | $ | 275,884 | $ | 4,285,935 | ||||||||||||||||
| Loss allowance (lifetime ECL) |
(2,645 | ) | (33,576 | ) | (2,681 | ) | (16,759 | ) | (1,352 | ) | — | (275,884 | ) | (332,897 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Amortized cost |
$ | 3,250,522 | $ | 637,935 | $ | 24,124 | $ | 39,103 | $ | 1,354 | $ | — | $ | — | $ | 3,953,038 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
(Concluded)
December 31, 2024
| Not Past Due | Past Due Less than 30 Days |
Past Due 31 to 60 Days |
Past Due 61 to 90 Days |
Past Due 91 to 120 Days |
Past Due 121 to 180 Days |
Past Due over 180 Days |
Total | |||||||||||||||||||||||||
| Telecommunications business |
||||||||||||||||||||||||||||||||
| Expected credit loss rate (Note a) |
0%~1% | 1%~22% | 2%~68% | 11%~84% | 21%~92% | 39%~96% | 100% | |||||||||||||||||||||||||
| Gross carrying amount |
$ | 16,477,102 | $ | 335,307 | $ | 138,573 | $ | 74,834 | $ | 49,884 | $ | 48,247 | $ | 605,994 | $ | 17,729,941 | ||||||||||||||||
| Loss allowance (lifetime ECL) |
(51,501 | ) | (23,505 | ) | (34,429 | ) | (31,370 | ) | (33,080 | ) | (34,412 | ) | (605,994 | ) | (814,291 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Amortized cost |
$ | 16,425,601 | $ | 311,802 | $ | 104,144 | $ | 43,464 | $ | 16,804 | $ | 13,835 | $ | — | $ | 16,915,650 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Project business |
||||||||||||||||||||||||||||||||
| Expected credit loss rate (Note b) |
0%~5% | 5% | 10% | 30% | 50% | 80% | 100% | |||||||||||||||||||||||||
| Gross carrying amount |
$ | 5,547,739 | $ | 44,167 | $ | 82,518 | $ | 3,204 | $ | 1,242 | $ | 44 | $ | 279,974 | $ | 5,958,888 | ||||||||||||||||
| Loss allowance (lifetime ECL) |
(3,355 | ) | (2,215 | ) | (8,252 | ) | (993 | ) | (621 | ) | (35 | ) | (279,974 | ) | (295,445 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Amortized cost |
$ | 5,544,384 | $ | 41,952 | $ | 74,266 | $ | 2,211 | $ | 621 | $ | 9 | $ | — | $ | 5,663,443 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
September 30, 2024
| Not Past Due | Past Due Less than 30 Days |
Past Due 31 to 60 Days |
Past Due 61 to 90 Days |
Past Due 91 to 120 Days |
Past Due 121 to 180 Days |
Past Due over 180 Days |
Total | |||||||||||||||||||||||||
| Telecommunications business |
||||||||||||||||||||||||||||||||
| Expected credit loss rate (Note a) |
0%~5% | 1%~20% | 3%~65% | 12%~82% | 23%~91% | 31%~96% | 100% | |||||||||||||||||||||||||
| Gross carrying amount |
$ | 16,583,773 | $ | 361,091 | $ | 211,070 | $ | 84,972 | $ | 54,171 | $ | 33,543 | $ | 576,460 | $ | 17,905,080 | ||||||||||||||||
| Loss allowance (lifetime ECL) |
(50,791 | ) | (22,817 | ) | (29,922 | ) | (26,503 | ) | (30,430 | ) | (21,856 | ) | (576,460 | ) | (758,779 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Amortized cost |
$ | 16,532,982 | $ | 338,274 | $ | 181,148 | $ | 58,469 | $ | 23,741 | $ | 11,687 | $ | — | $ | 17,146,301 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Project business |
||||||||||||||||||||||||||||||||
| Expected credit loss rate (Note b) |
0%~5% | 5% | 10% | 30% | 50% | 80% | 100% | |||||||||||||||||||||||||
| Gross carrying amount |
$ | 2,751,123 | $ | 149,094 | $ | 30,165 | $ | 19,931 | $ | 6,767 | $ | 298 | $ | 262,906 | $ | 3,220,284 | ||||||||||||||||
| Loss allowance (lifetime ECL) |
(2,722 | ) | (7,455 | ) | (3,016 | ) | (7,751 | ) | (3,383 | ) | (239 | ) | (262,906 | ) | (287,472 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Amortized cost |
$ | 2,748,401 | $ | 141,639 | $ | 27,149 | $ | 12,180 | $ | 3,384 | $ | 59 | $ | — | $ | 2,932,812 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Note a: | Please refer to Note 44 for the information of disaggregation of telecommunications service revenue. The expected credit loss rate applicable to different business revenue varies so as to reflect the risk level indicating by factors like historical experience. | |||||
| Note b: | The project business has different loss types according to the customer types. The expected credit loss rate listed above is for general customers. When the customer is a government-affiliated entity, it is anticipated that there will not be an instance of credit loss. Customers with past history of bounced checks or accounts receivable exceeding six months overdue are classified as high-risk customers, with an expected credit loss rate of 50%, increasing by period as the days overdue increase. | |||||
- 19 -
Movements of loss allowance for trade notes and accounts receivable were as follows:
| Nine Months Ended September 30 | ||||||||
| 2025 | 2024 | |||||||
| Beginning balance |
$ | 1,142,610 | $ | 1,101,640 | ||||
| Add: Provision for credit loss |
158,432 | 76,101 | ||||||
| Less: Amounts written off |
(118,065 | ) | (102,725 | ) | ||||
|
|
|
|
|
|||||
| Ending balance |
$ | 1,182,977 | $ | 1,075,016 | ||||
|
|
|
|
|
|||||
| 11. | INVENTORIES |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Merchandise |
$ | 4,375,708 | $ | 4,874,164 | $ | 3,992,057 | ||||||
| Project in process |
6,147,659 | 4,564,444 | 5,328,106 | |||||||||
| Work in process |
136,899 | 268,570 | 152,083 | |||||||||
| Raw materials |
215,466 | 221,856 | 192,899 | |||||||||
|
|
|
|
|
|
|
|||||||
| 10,875,732 | 9,929,034 | 9,665,145 | ||||||||||
| Land held under development |
1,998,733 | 1,998,733 | 1,998,733 | |||||||||
| Construction in progress |
334,965 | 159,351 | 143,409 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 13,209,430 | $ | 12,087,118 | $ | 11,807,287 | |||||||
|
|
|
|
|
|
|
|||||||
The operating costs related to inventories were $13,336,150 thousand (including the valuation loss on inventories of $40,648 thousand) and $37,487,694 thousand (including the valuation loss on inventories of $54,684 thousand) for the three months and nine months ended September 30, 2025, respectively. The operating costs related to inventories were $11,893,571 thousand (including the valuation loss on inventories of $27,565 thousand) and $35,100,378 thousand (including the valuation loss on inventories of $63,286 thousand) for the three months and nine months ended September 30, 2024, respectively.
As of September 30, 2025, December 31, 2024 and September 30, 2024, inventories of $2,333,698 thousand, $2,158,084 thousand and $2,142,142 thousand, respectively, were expected to be realized from the sale after more than twelve months. The aforementioned amount of inventories is related to property development owned by LED.
Land held under development and construction in progress was mainly developed by LED for Qingshan Sec., Dayuan Dist., Taoyuan City project. The Board of Directors of LED resolved to sign a joint construction and separate sale contract with Farglory Land Development Co., Ltd. in June 2021. LED entrusts Land Bank of Taiwan to execute fund control and property right management for the land held under development.
Construction in progress also included the Datong S. Sec., Sanchong Dist., New Taipei City project. The Board of Directors of Chunghwa resolved to sign a joint construction with separate sale and partition contract with LED in August 2021. Chunghwa classified the land of the project as investment properties.
Regarding the aforementioned two projects, the Company has signed the house and land presale contracts with customers and has received payments in accordance with the contracts. Please refer to Notes 30 and 40 for details.
- 20 -
| 12. | PREPAYMENTS |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Prepayments for leases—satellite (Note 40) |
$ | 4,614,610 | $ | 3,129,192 | $ | 2,771,747 | ||||||
| Prepaid salary and bonus |
2,465,461 | 4,556 | 2,479,090 | |||||||||
| Prepaid rents |
1,569,852 | 1,761,848 | 1,839,597 | |||||||||
| Others |
3,508,142 | 2,703,734 | 2,987,168 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 12,158,065 | $ | 7,599,330 | $ | 10,077,602 | |||||||
|
|
|
|
|
|
|
|||||||
| Current |
||||||||||||
| Prepaid salary and bonus |
$ | 2,465,461 | $ | 4,556 | $ | 2,479,090 | ||||||
| Prepaid rents |
544,711 | 496,790 | 522,180 | |||||||||
| Others |
3,410,017 | 2,636,967 | 2,932,189 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 6,420,189 | $ | 3,138,313 | $ | 5,933,459 | |||||||
|
|
|
|
|
|
|
|||||||
| Noncurrent |
||||||||||||
| Prepayments for leases—satellite (Note 40) |
$ | 4,614,610 | $ | 3,129,192 | $ | 2,771,747 | ||||||
| Prepaid rents |
1,025,141 | 1,265,058 | 1,317,417 | |||||||||
| Others |
98,125 | 66,767 | 54,979 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 5,737,876 | $ | 4,461,017 | $ | 4,144,143 | |||||||
|
|
|
|
|
|
|
|||||||
Prepaid rents comprised the prepayments from the lease agreements applying the recognition exemption and the prepayments for leases that do not meet the definition of leases under IFRS 16.
| 13. | OTHER CURRENT MONETARY ASSETS |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months |
$ | 14,250,053 | $ | 21,679,910 | $ | 12,998,224 | ||||||
| Accrued custodial receipts |
902,423 | 725,414 | 788,742 | |||||||||
| Others |
2,336,195 | 1,002,677 | 905,788 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 17,488,671 | $ | 23,408,001 | $ | 14,692,754 | |||||||
|
|
|
|
|
|
|
|||||||
The annual yield rates of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months at the balance sheet dates were as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months |
0.03%~4.47% | 0.03%~5.10% | 0.03%~5.10% | |||||||||
- 21 -
| 14. | SUBSIDIARIES |
| a. | Information on subsidiaries with material noncontrolling interests |
| Principal | Proportion of Ownership Interests and Voting Rights Held by Noncontrolling Interests | |||||||||
| Subsidiaries | Place of Business |
September 30, 2025 |
December 31, 2024 |
September 30, 2024 | ||||||
| SENAO |
Taiwan | 72% | 72% | 72% | ||||||
| CHPT |
Taiwan | 66% | 66% | 66% | ||||||
| Profit Allocated to Noncontrolling Interests | ||||||||||||||||
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| SENAO |
$ | 52,900 | $ | 79,344 | $ | 196,101 | $ | 243,988 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| CHPT |
$ | 177,754 | $ | 62,092 | $ | 459,183 | $ | 99,347 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Accumulated Noncontrolling Interests | ||||||||||||
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| SENAO |
$ | 4,554,963 | $ | 4,683,629 | $ | 4,569,015 | ||||||
| CHPT |
5,584,383 | 5,305,195 | 5,090,657 | |||||||||
| Individually immaterial subsidiaries with noncontrolling interests |
3,676,770 | 3,165,342 | 2,922,794 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 13,816,116 | $ | 13,154,166 | $ | 12,582,466 | |||||||
|
|
|
|
|
|
|
|||||||
Summarized financial information in respect of SENAO and its subsidiaries that has material noncontrolling interests is set out below. The summarized financial information below represented amounts before intercompany eliminations.
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Current assets |
$ | 7,280,982 | $ | 6,737,556 | $ | 7,391,993 | ||||||
| Noncurrent assets |
3,590,568 | 3,675,523 | 3,307,773 | |||||||||
| Current liabilities |
(4,242,042 | ) | (3,549,249 | ) | (3,936,661 | ) | ||||||
| Noncurrent liabilities |
(360,761 | ) | (415,771 | ) | (474,930 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Equity |
$ | 6,268,747 | $ | 6,448,059 | $ | 6,288,175 | ||||||
|
|
|
|
|
|
|
|||||||
| Equity attributable to the parent |
$ | 1,713,784 | $ | 1,764,430 | $ | 1,719,160 | ||||||
| Equity attributable to noncontrolling interests |
4,554,963 | 4,683,629 | 4,569,015 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 6,268,747 | $ | 6,448,059 | $ | 6,288,175 | |||||||
|
|
|
|
|
|
|
|||||||
- 22 -
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues and income |
$ | 7,963,586 | $ | 7,866,235 | $ | 22,962,977 | $ | 23,491,166 | ||||||||
| Costs and expenses |
7,889,147 | 7,755,659 | 22,689,630 | 23,152,033 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Profit for the period |
$ | 74,439 | $ | 110,576 | $ | 273,347 | $ | 339,133 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Profit attributable to the parent |
$ | 21,539 | $ | 31,232 | $ | 77,246 | $ | 95,145 | ||||||||
| Profit attributable to noncontrolling interests |
52,900 | 79,344 | 196,101 | 243,988 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Profit for the period |
$ | 74,439 | $ | 110,576 | $ | 273,347 | $ | 339,133 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other comprehensive income (loss) attributable to the parent |
$ | 1,634 | $ | 3,185 | $ | (7,480 | ) | $ | 11,369 | |||||||
| Other comprehensive income (loss) attributable to noncontrolling interests |
4,165 | 8,119 | (19,062 | ) | 28,976 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other comprehensive income (loss) for the period |
$ | 5,799 | $ | 11,304 | $ | (26,542 | ) | $ | 40,345 | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total comprehensive income attributable to the parent |
$ | 23,173 | $ | 34,417 | $ | 69,766 | $ | 106,514 | ||||||||
| Total comprehensive income attributable to noncontrolling interests |
57,065 | 87,463 | 177,039 | 272,964 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total comprehensive income for the period |
$ | 80,238 | $ | 121,880 | $ | 246,805 | $ | 379,478 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Nine Months Ended September 30 | ||||||||
| 2025 | 2024 | |||||||
| Net cash flow from operating activities |
$ | 111,958 | $ | 1,016,024 | ||||
| Net cash flow from investing activities |
4,839 | (36,539 | ) | |||||
| Net cash flow from financing activities |
(118,509 | ) | (742,936 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents |
(5 | ) | 50 | |||||
|
|
|
|
|
|||||
| Net cash inflow (outflow) |
$ | (1,717 | ) | $ | 236,599 | |||
|
|
|
|
|
|||||
| Dividends paid to noncontrolling interests |
$ | 306,040 | $ | 370,957 | ||||
|
|
|
|
|
|||||
- 23 -
Summarized financial information in respect of CHPT and its subsidiaries that has material noncontrolling interests is set out below. The summarized financial information below represented amounts before intercompany eliminations.
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Current assets |
$ | 5,429,968 | $ | 4,936,011 | $ | 4,166,549 | ||||||
| Noncurrent assets |
4,039,828 | 4,222,292 | 4,249,868 | |||||||||
| Current liabilities |
(969,550 | ) | (1,079,055 | ) | (663,537 | ) | ||||||
| Noncurrent liabilities |
(13,053 | ) | (21,470 | ) | (21,804 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Equity |
$ | 8,487,193 | $ | 8,057,778 | $ | 7,731,076 | ||||||
|
|
|
|
|
|
|
|||||||
| Equity attributable to CHI |
$ | 2,902,810 | $ | 2,752,583 | $ | 2,640,419 | ||||||
| Equity attributable to noncontrolling interests |
5,584,383 | 5,305,195 | 5,090,657 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 8,487,193 | $ | 8,057,778 | $ | 7,731,076 | |||||||
|
|
|
|
|
|
|
|||||||
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues and income |
$ | 1,252,245 | $ | 905,402 | $ | 3,644,440 | $ | 2,355,499 | ||||||||
| Costs and expenses |
980,101 | 806,771 | 2,941,273 | 2,191,877 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Profit for the period |
$ | 272,144 | $ | 98,631 | $ | 703,167 | $ | 163,622 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Profit attributable to CHI |
$ | 94,390 | $ | 36,539 | $ | 243,984 | $ | 64,275 | ||||||||
| Profit attributable to noncontrolling interests |
177,754 | 62,092 | 459,183 | 99,347 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Profit for the period |
$ | 272,144 | $ | 98,631 | $ | 703,167 | $ | 163,622 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other comprehensive income (loss) attributable to CHI |
$ | 3,637 | $ | (1,268 | ) | $ | (6,164 | ) | $ | 3,536 | ||||||
| Other comprehensive income (loss) attributable to noncontrolling interests |
6,982 | (2,434 | ) | (11,834 | ) | 6,789 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other comprehensive income (loss) for the period |
$ | 10,619 | $ | (3,702 | ) | $ | (17,998 | ) | $ | 10,325 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total comprehensive income attributable to CHI |
$ | 98,027 | $ | 35,271 | $ | 237,820 | $ | 67,811 | ||||||||
| Total comprehensive income attributable to noncontrolling interests |
184,736 | 59,658 | 447,349 | 106,136 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total comprehensive income for the period |
$ | 282,763 | $ | 94,929 | $ | 685,169 | $ | 173,947 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
- 24 -
| Nine Months Ended September 30 | ||||||||
| 2025 | 2024 | |||||||
| Net cash flow from operating activities |
$ | 1,107,250 | $ | 316,055 | ||||
| Net cash flow from investing activities |
(113,590 | ) | (64,659 | ) | ||||
| Net cash flow from financing activities |
(276,634 | ) | (36,529 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents |
(12,261 | ) | 11,777 | |||||
|
|
|
|
|
|||||
| Net cash inflow |
$ | 704,765 | $ | 226,644 | ||||
|
|
|
|
|
|||||
| Dividends paid to noncontrolling interests |
$ | 168,161 | $ | 10,780 | ||||
|
|
|
|
|
|||||
| b. | Equity transactions with noncontrolling interests |
CHIEF issued new shares in December 2024 and March 2025 as its employees exercised options. Therefore, the Company’s ownership interest in CHIEF decreased. See Note 34(a) for details.
CHTSC conducted its initial public offering through public underwriting in September 2025, and Chunghwa did not participate in the capital increase of CHTSC in accordance with applicable regulations. CHTSC issued new shares in January 2024, March 2024, December 2024, February 2025, May 2025 and August 2025 as its employees exercised options. Therefore, the Company’s ownership interest in CHTSC decreased. See Note 34(b)(c) for details. In addition, Chunghwa disposed of some shares of CHTSC in August 2024 before CHTSC traded its shares on the emerging stock market according to the local requirements. Therefore, the Company’s ownership interest in CHTSC decreased.
Chunghwa disposed of some shares of IISI in August 2024 before IISI traded its shares on the emerging stock market according to the local requirements. Therefore, the Company’s ownership interest in IISI decreased.
CLPT issued new shares in July 2024 as its employees exercised options. Therefore, the Company’s ownership interest in CLPT decreased. See Note 34(d) for details.
The above transactions were accounted for as equity transactions since the Company did not cease to have control over these subsidiaries.
Information of the Company’s equity transactions with noncontrolling interests for the nine months ended September 30, 2025 and 2024 was as follows:
| Nine Months Ended September 30, 2025 | ||||||||||||
| Not the Capital Increase of CHTSC |
CHTSC Share-Based Payment |
CHIEF Share-Based Payment |
||||||||||
| Cash consideration received from noncontrolling interests |
$ | 1,031,797 | $ | 12,482 | $ | 1,165 | ||||||
| The proportionate share of the carrying amount of the net assets of the subsidiary transferred from (to) noncontrolling interests |
(500,016 | ) | (15,836 | ) | 8,176 | |||||||
|
|
|
|
|
|
|
|||||||
| Differences arising from equity transactions |
$ | 531,781 | $ | (3,354 | ) | $ | 9,341 | |||||
|
|
|
|
|
|
|
|||||||
| (Continued | ) | |||||||||||
- 25 -
| Nine Months Ended September 30, 2025 | ||||||||||||
| Not the Capital Increase of CHTSC |
CHTSC Share-Based Payment |
CHIEF Share-Based Payment |
||||||||||
| Line items for equity transaction adjustments |
||||||||||||
| Additional paid-in capital—arising from changes in equities of subsidiaries |
$ | 531,781 | $ | (3,354 | ) | $ | 9,341 | |||||
|
|
|
|
|
|
|
|||||||
| (Concluded | ) | |||||||||||
| Nine Months Ended September 30, 2024 | ||||||||||||||||
| CHTSC Payment |
CLPT Share-Based |
Disposal of CHTSC Shares |
Disposal of IISI Shares |
|||||||||||||
| Cash consideration received from noncontrolling interests (Note) |
$ | 13,245 | $ | 9,342 | $ | 206,618 | $ | 52,155 | ||||||||
| The proportionate share of the carrying amount of the net assets of the subsidiary transferred to noncontrolling interests |
(13,650 | ) | (12,863 | ) | (19,150 | ) | (15,330 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Differences arising from equity transactions |
$ | (405 | ) | $ | (3,521 | ) | $ | 187,468 | $ | 36,825 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Line items for equity transaction adjustments |
||||||||||||||||
| Additional paid-in capital—arising from the difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition |
$ | — | $ | — | $ | 187,076 | $ | 36,811 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Additional paid-in capital—arising from changes in equities of subsidiaries |
$ | (405 | ) | $ | (3,521 | ) | $ | 392 | $ | 14 | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
Note: The proceeds from the new shares issued in January 2024 by CHTSC have been received in advance in December 2023.
- 26 -
| c. | Loss of control of subsidiaries |
Chunghwa no longer had more than half of seats of the Board of Directors of CHST since January 2025. As a result, the Company lost control over CHST and recognized CHST as an investment in associate.
The Company recognized the retained interest in CHST at the fair value on the date control was lost; therefore, the Company recognized the disposal gain of $15,290 thousand based on the difference between the fair value and the carrying amount. The disposal gain was included in other gains or losses in the consolidated statements of comprehensive income.
Analysis of assets and liabilities over which the Company lost control:
| CHST | ||||
| Current assets |
||||
| Cash and cash equivalents |
$ | 8,664 | ||
| Contract assets |
9,132 | |||
| Trade notes and accounts receivable, net |
9,148 | |||
| Inventories |
6,521 | |||
| Others |
6,631 | |||
| Noncurrent assets |
||||
| Property, plant and equipment |
202 | |||
| Right-of-use assets |
3,369 | |||
| Deferred income tax assets |
1,645 | |||
| Others |
12,415 | |||
| Current liabilities |
||||
| Short-term loans |
(65,000 | ) | ||
| Contract liabilities |
(7,376 | ) | ||
| Trade notes and accounts payable |
(9,036 | ) | ||
| Others |
(2,309 | ) | ||
| Noncurrent liabilities |
||||
| Customers’ deposits |
(7,126 | ) | ||
| Others |
(1,704 | ) | ||
|
|
|
|||
| Net liabilities |
$ | (34,824 | ) | |
|
|
|
|||
| 15. | INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Investments in associates |
$ | 8,814,430 | $ | 9,064,213 | $ | 8,735,947 | ||||||
| Investment in joint venture |
9,083 | 9,251 | 9,326 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 8,823,513 | $ | 9,073,464 | $ | 8,745,273 | |||||||
|
|
|
|
|
|
|
|||||||
- 27 -
| a. | Investments in associates |
Investments in associates were as follows:
| Carrying Amount | ||||||||||||
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Material associate |
||||||||||||
| Non-listed |
||||||||||||
| Next Commercial Bank Co., Ltd. (“NCB”) |
$ | 3,680,266 | $ | 3,950,922 | $ | 4,028,346 | ||||||
|
|
|
|
|
|
|
|||||||
| Associates that are not individually material |
||||||||||||
| Listed |
||||||||||||
| Senao Networks, Inc. (“SNI”) |
2,009,391 | 1,998,346 | 1,583,693 | |||||||||
| KingwayTek Technology Co., Ltd. (“KWT”) |
256,721 | 278,967 | 267,887 | |||||||||
| Non-listed |
||||||||||||
| Viettel-CHT Co., Ltd. (“Viettel-CHT”) |
607,325 | 573,275 | 547,601 | |||||||||
| ST-2 Satellite Ventures Pte., Ltd. (“STS”) |
444,886 | 313,467 | 423,874 | |||||||||
| Taiwan International Standard Electronics Co., Ltd. (“TISE”) |
379,949 | 379,357 | 297,362 | |||||||||
| WiAdvance Technology Corporation (“WATC”) |
267,098 | 273,440 | 281,579 | |||||||||
| Chunghwa PChome Fund I Co., Ltd. (“CPFI”) |
248,538 | 252,625 | 253,519 | |||||||||
| Taiwania Hive Technology Fund L.P. (“TWTF”) |
239,488 | 276,180 | 281,855 | |||||||||
| So-net Entertainment Taiwan Limited (“So-net”) |
145,224 | 192,968 | 200,625 | |||||||||
| KKBOX Taiwan Co., Ltd. (“KKBOXTW”) |
128,797 | 151,241 | 157,526 | |||||||||
| Taiwan International Ports Logistics Corporation (“TIPL”) |
125,855 | 133,836 | 122,309 | |||||||||
| Porrima Inc. (“PORRIMA”) |
73,334 | 77,634 | 78,715 | |||||||||
| Imedtac Co., Ltd. (“IME”) |
54,501 | 56,667 | 58,479 | |||||||||
| CHT Infinity Singapore Pte., Ltd. (“CISG”) |
54,216 | 60,782 | 57,084 | |||||||||
| Click Force Co., Ltd. (“CF”) |
46,731 | 51,011 | 52,133 | |||||||||
| AgriTalk Technology Inc. (“ATT”) |
22,710 | 26,254 | 27,244 | |||||||||
| Baohwa Trust Co., Ltd. (“BHT”) |
16,364 | 11,967 | 10,862 | |||||||||
| Gather Works Co., Ltd. (“GW”) |
13,036 | — | — | |||||||||
| Cornerstone Ventures Co., Ltd. (“CVC”) |
— | 5,274 | 5,254 | |||||||||
| Chunghwa Sochamp Technology Inc. (“CHST”) (Note 14) |
— | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| 5,134,164 | 5,113,291 | 4,707,601 | ||||||||||
|
|
|
|
|
|
|
|||||||
| $ | 8,814,430 | $ | 9,064,213 | $ | 8,735,947 | |||||||
|
|
|
|
|
|
|
|||||||
- 28 -
The percentages of ownership interests and voting rights in associates held by the Company as of balance sheet dates were as follows:
| % of Ownership Interests and Voting Rights | |||||||||||||||
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 | |||||||||||||
| Material associate |
|||||||||||||||
| Non-listed |
|||||||||||||||
| Next Commercial Bank Co., Ltd. (“NCB”) |
46 | 46 | 46 | ||||||||||||
| Associates that are not individually material |
|||||||||||||||
| Listed |
|||||||||||||||
| Senao Networks, Inc. (“SNI”) |
33 | 33 | 34 | ||||||||||||
| KingwayTek Technology Co., Ltd. (“KWT”) |
23 | 23 | 23 | ||||||||||||
| Non-listed |
|||||||||||||||
| Viettel-CHT Co., Ltd. (“Viettel-CHT”) |
30 | 30 | 30 | ||||||||||||
| ST-2 Satellite Ventures Pte., Ltd. (“STS”) |
38 | 38 | 38 | ||||||||||||
| Taiwan International Standard Electronics Co., Ltd. (“TISE”) |
40 | 40 | 40 | ||||||||||||
| WiAdvance Technology Corporation (“WATC”) |
16 | 16 | 16 | ||||||||||||
| Chunghwa PChome Fund I Co., Ltd. (“CPFI”) |
50 | 50 | 50 | ||||||||||||
| Taiwania Hive Technology Fund L.P. (“TWTF”) |
40 | 42 | 42 | ||||||||||||
| So-net Entertainment Taiwan Limited (“So-net”) |
30 | 30 | 30 | ||||||||||||
| KKBOX Taiwan Co., Ltd. (“KKBOXTW”) |
30 | 30 | 30 | ||||||||||||
| Taiwan International Ports Logistics Corporation (“TIPL”) |
27 | 27 | 27 | ||||||||||||
| Porrima Inc. (“PORRIMA”) |
10 | 10 | 10 | ||||||||||||
| Imedtac Co., Ltd. (“IME”) |
10 | 10 | 10 | ||||||||||||
| CHT Infinity Singapore Pte., Ltd. (“CISG”) |
40 | 40 | 40 | ||||||||||||
| Click Force Co., Ltd. (“CF”) |
49 | 49 | 49 | ||||||||||||
| AgriTalk Technology Inc. (“ATT”) |
29 | 29 | 29 | ||||||||||||
| Baohwa Trust Co., Ltd. (“BHT”) |
25 | 25 | 25 | ||||||||||||
| Gather Works Co., Ltd. (“GW”) |
48 | — | — | ||||||||||||
| Cornerstone Ventures Co., Ltd. (“CVC”) |
— | 49 | 49 | ||||||||||||
| Chunghwa Sochamp Technology Inc. (“CHST”) (Note 14) |
37 | — | — | ||||||||||||
- 29 -
Summarized financial information of NCB was set out below:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Assets |
$ | 62,980,622 | $ | 48,636,633 | $ | 41,603,098 | ||||||
| Liabilities |
(54,982,196 | ) | (40,043,113 | ) | (32,838,872 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Equity |
$ | 7,998,426 | $ | 8,593,520 | $ | 8,764,226 | ||||||
|
|
|
|
|
|
|
|||||||
| The percentage of ownership interest held by the Company |
46.26% | 46.26% | 46.26% | |||||||||
| Equity attributable to the Company |
$ | 3,700,072 | $ | 3,975,362 | $ | 4,054,331 | ||||||
| Unrealized gain or loss from downstream transactions |
(19,806 | ) | (24,440 | ) | (25,985 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| The carrying amount of investment |
$ | 3,680,266 | $ | 3,950,922 | $ | 4,028,346 | ||||||
|
|
|
|
|
|
|
|||||||
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net revenues |
$ | 111,417 | $ | 54,042 | $ | 191,124 | $ | 195,958 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss for the period |
$ | (188,387 | ) | $ | (204,538 | ) | $ | (642,285 | ) | $ | (582,667 | ) | ||||
| Other comprehensive income (loss) |
28,578 | 18,445 | 47,191 | (183 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total comprehensive loss for the period |
$ | (159,809 | ) | $ | (186,093 | ) | $ | (595,094 | ) | $ | (582,850 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
Except for NCB, no associate is considered individually material to the Company. Summarized financial information of associates that are not individually material to the Company was as follows:
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| The Company’s share of profits |
$ | 144,232 | $ | 133,579 | $ | 388,422 | $ | 328,702 | ||||||||
| The Company’s share of other comprehensive income (loss) |
6,831 | 9,865 | (25,959 | ) | 41,091 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| The Company’s share of total comprehensive income |
$ | 151,063 | $ | 143,444 | $ | 362,463 | $ | 369,793 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
- 30 -
The Level 1 fair values of associates based on the closing market prices as of the balance sheet dates were as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| SNI |
$ | 3,094,028 | $ | 3,838,161 | $ | 2,743,830 | ||||||
|
|
|
|
|
|
|
|||||||
| KWT |
$ | 833,148 | $ | 896,747 | $ | 873,851 | ||||||
|
|
|
|
|
|
|
|||||||
CVC was approved to end and dissolve its business in November 2024, and CVC completed its liquidation in August 2025. The Company received the liquidation distribution of $5,026 thousand and recognized loss on disposal of $2 thousand under “other gains and losses” on the consolidated statements of comprehensive income.
CHST was approved to end and dissolve its business in July 2025.
KWT transferred its treasury stock repurchased from December 2019 to February 2020 to employees in October 2024. In addition, KWT repurchased its stock from April 2025 to May 2025. Therefore, the Company’s ownership interest in KWT decreased to 22.58% and 22.78% as of December 31, 2024 and September 30, 2025, respectively.
The Company invested $14,400 thousand and obtained 48.00% ownership interest in GW in April 2025. GW mainly engages in film and drama IP development, copyright management and copyright sales.
Chunghwa’s Board of Directors approved an investment in TWTF at the amount of USD 30,000 thousand in February 2024. The Company initially invested $288,405 thousand (USD 9,000 thousand) in TWTF in August 2024 and obtained 41.75% ownership interest. TWTF raised capital in multiple stages. New capital was received in April 2025, resulting in an increase in the fund size; therefore, the Company’s ownership interest in TWTF changed to 39.81% as of September 30, 2025. TWTF mainly engages in investment.
The Company increased its investment in SNI in lower proportion to the original shareholder percentage in October 2024. Therefore, the Company’s ownership interest in SNI decreased to 33.16% as of December 31, 2024.
The Company did not participate in the capital increase of WATC in January 2024. WATC issued new shares in March 2024 and September 2024 as its employees exercised option. Therefore, the Company’s ownership interest in WATC decreased to 16.24% as of September 30, 2024. However, as the Company continues to control one out of five seats of the Board of Directors of WATC, the Company has significant influence over WATC.
The Company participated in the capital increase of PORRIMA at the amount of $80,000 thousand in May 2024 and obtained 10.00% ownership interest. PORRIMA mainly engages in designing and selling zero-emission ships. As the Company has one out of five seats of the Board of Directors of PORRIMA, the Company has significant influence over PORRIMA.
The Company increased its investment in IME in higher proportion to the original shareholder percentage at the amount of $31,914 thousand in April 2024. Therefore, the Company’s ownership interest in IME increased to 10.00%. As the Company continues to control one out of five seats of the Board of Directors of IME, the Company has significant influence over IME.
Although Chunghwa is the single largest stockholder of NCB, it only obtained six out of fifteen seats of the Board of Directors of NCB. In addition, the management considered the size of ownership interest and the dispersion of shares owned by the other stockholders, other holdings are not extremely dispersed. Chunghwa is not able to direct its relevant activities. Therefore,
- 31 -
Chunghwa does not have control over NCB and merely has significant influence over NCB and treats it as an associate.
The Company invested and obtained 50% ownership interest in CPFI. However, as the Company has only two out of five seats of the Board of Directors of CPFI, the Company has no control but significant influence over CPFI. Therefore, the Company recognized CPFI as an investment in associate.
The Company’s share of profits and other comprehensive income (loss) of associates was recognized based on the reviewed financial statements.
| b. | Investment in joint venture |
Investment in joint venture was as follows:
| Carrying Amount | % of Ownership Interests and Voting Rights | |||||||||||||||||||||||
| Name of Joint Venture | September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||||||||||
| Non-listed |
||||||||||||||||||||||||
| Chunghwa SEA Holdings (“CHT SEA”) |
$ | 9,083 | $ | 9,251 | $ | 9,326 | 51% | 51% | 51% | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
The Company invested and established a joint venture, CHT SEA, with Delta Electronics, Inc. and Kwang Hsing Industrial Co., Ltd. and obtained 51% ownership interest of CHT SEA. However, according to the mutual agreements among stockholders, the Company does not individually direct CHT SEA’s relevant activities and has joint control with the other party; therefore, the Company treated CHT SEA as a joint venture. CHT SEA was approved to end and dissolve its business in June 2025. The liquidation of CHT SEA is still in process.
The joint venture is not considered individually material to the Company. Summarized financial information of CHT SEA was set out below:
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| The Company’s share of loss |
$ | (75 | ) | $ | (41 | ) | $ | (168 | ) | $ | (137 | ) | ||||
| The Company’s share of other comprehensive income |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| The Company’s share of total comprehensive loss |
$ | (75 | ) | $ | (41 | ) | $ | (168 | ) | $ | (137 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
The Company’s share of loss and other comprehensive income of the joint venture was recognized based on the reviewed financial statements.
- 32 -
| 16. | PROPERTY, PLANT AND EQUIPMENT |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Assets used by the Company |
$ | 278,027,165 | $ | 284,714,764 | $ | 276,930,430 | ||||||
| Assets subject to operating leases |
5,712,466 | 5,125,380 | 6,152,842 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 283,739,631 | $ | 289,840,144 | $ | 283,083,272 | |||||||
|
|
|
|
|
|
|
|||||||
| a. | Assets used by the Company |
| Land | Land Improvements |
Buildings | Computer Equipment |
Telecommuni- cations Equipment |
Transportation Equipment |
Miscellaneous Equipment |
Construction in Progress and Equipment to be Accepted |
Total | ||||||||||||||||||||||||||||
| Cost |
||||||||||||||||||||||||||||||||||||
| Balance on January 1, 2024 |
$ | 102,885,454 | $ | 1,709,236 | $ | 71,754,783 | $ | 11,044,831 | $ | 721,434,979 | $ | 4,049,661 | $ | 12,091,029 | $ | 15,937,187 | $ | 940,907,160 | ||||||||||||||||||
| Additions |
— | — | 17,018 | 24,045 | 79,698 | 2,939 | 75,026 | 13,916,345 | 14,115,071 | |||||||||||||||||||||||||||
| Disposal |
(222 | ) | — | (6,375 | ) | (884,712 | ) | (20,502,761 | ) | (103,467 | ) | (335,048 | ) | — | (21,832,585 | ) | ||||||||||||||||||||
| Effect of foreign exchange differences |
— | — | — | 56 | 83,036 | 230 | 6,268 | 7,293 | 96,883 | |||||||||||||||||||||||||||
| Others |
(700,841 | ) | 11,066 | 75,487 | 387,805 | 13,133,152 | 86,405 | 661,836 | (14,585,537 | ) | (930,627 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Balance on September 30, 2024 |
$ | 102,184,391 | $ | 1,720,302 | $ | 71,840,913 | $ | 10,572,025 | $ | 714,228,104 | $ | 4,035,768 | $ | 12,499,111 | $ | 15,275,288 | $ | 932,355,902 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Accumulated depreciation and impairment |
||||||||||||||||||||||||||||||||||||
| Balance on January 1, 2024 |
$ | — | $ | (1,507,932 | ) | $ | (33,283,812 | ) | $ | (9,221,060 | ) | $ | (599,131,991 | ) | $ | (3,654,724 | ) | $ | (9,022,741 | ) | $ | — | $ | (655,822,260 | ) | |||||||||||
| Depreciation expense |
— | (25,701 | ) | (1,082,713 | ) | (563,249 | ) | (19,070,430 | ) | (93,338 | ) | (617,266 | ) | — | (21,452,697 | ) | ||||||||||||||||||||
| Disposal |
— | — | 6,375 | 884,234 | 20,497,943 | 102,922 | 321,160 | — | 21,812,634 | |||||||||||||||||||||||||||
| Effect of foreign exchange differences |
— | — | — | (51 | ) | (48,985 | ) | (275 | ) | (3,768 | ) | — | (53,079 | ) | ||||||||||||||||||||||
| Others |
— | — | 209,139 | (298 | ) | (9,807 | ) | (383 | ) | (108,721 | ) | — | 89,930 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Balance on September 30, 2024 |
$ | — | $ | (1,533,633 | ) | $ | (34,151,011 | ) | $ | (8,900,424 | ) | $ | (597,763,270 | ) | $ | (3,645,798 | ) | $ | (9,431,336 | ) | $ | — | $ | (655,425,472 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Balance on January 1, 2024, net |
$ | 102,885,454 | $ | 201,304 | $ | 38,470,971 | $ | 1,823,771 | $ | 122,302,988 | $ | 394,937 | $ | 3,068,288 | $ | 15,937,187 | $ | 285,084,900 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Balance on September 30, 2024, net |
$ | 102,184,391 | $ | 186,669 | $ | 37,689,902 | $ | 1,671,601 | $ | 116,464,834 | $ | 389,970 | $ | 3,067,775 | $ | 15,275,288 | $ | 276,930,430 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Cost | ||||||||||||||||||||||||||||||||||||
| Balance on January 1, 2025 |
$ | 102,346,031 | $ | 1,749,614 | $ | 74,178,077 | $ | 10,448,407 | $ | 718,353,045 | $ | 4,183,540 | $ | 12,680,123 | $ | 16,572,752 | $ | 940,511,589 | ||||||||||||||||||
| Additions |
— | — | 80,248 | 76,821 | 152,930 | 1,180 | 100,782 | 15,368,969 | 15,780,930 | |||||||||||||||||||||||||||
| Disposal |
— | (1,186 | ) | (387 | ) | (607,553 | ) | (9,490,648 | ) | (348,310 | ) | (266,722 | ) | — | (10,714,806 | ) | ||||||||||||||||||||
| Effect of deconsolidation of subsidiaries (Note 14) |
— | — | — | — | — | (2,009 | ) | (3,213 | ) | — | (5,222 | ) | ||||||||||||||||||||||||
| Effect of foreign exchange differences |
— | — | — | (264 | ) | (183,632 | ) | (298 | ) | (12,288 | ) | (12,806 | ) | (209,288 | ) | |||||||||||||||||||||
| Others |
(555,505 | ) | 34,010 | (59,393 | ) | 268,290 | 13,475,227 | 171,950 | 1,111,270 | (15,100,602 | ) | (654,753 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Balance on September 30, 2025 |
$ | 101,790,526 | $ | 1,782,438 | $ | 74,198,545 | $ | 10,185,701 | $ | 722,306,922 | $ | 4,006,053 | $ | 13,609,952 | $ | 16,828,313 | $ | 944,708,450 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Accumulated depreciation and impairment |
||||||||||||||||||||||||||||||||||||
| Balance on January 1, 2025 |
$ | — | $ | (1,543,373 | ) | $ | (34,721,367 | ) | $ | (8,727,171 | ) | $ | (597,674,608 | ) | $ | (3,629,903 | ) | $ | (9,500,403 | ) | $ | — | $ | (655,796,825 | ) | |||||||||||
| Depreciation expense |
— | (37,134 | ) | (1,132,880 | ) | (496,343 | ) | (19,274,605 | ) | (136,165 | ) | (651,033 | ) | — | (21,728,160 | ) | ||||||||||||||||||||
| Disposal |
— | 1,186 | 387 | 607,499 | 9,488,798 | 348,310 | 262,136 | — | 10,708,316 | |||||||||||||||||||||||||||
| Effect of deconsolidation of subsidiaries (Note 14) |
— | — | — | — | — | 2,009 | 3,011 | — | 5,020 | |||||||||||||||||||||||||||
| Effect of foreign exchange differences |
— | — | — | 226 | 119,478 | 109 | 7,655 | — | 127,468 | |||||||||||||||||||||||||||
| Others |
— | — | 32,176 | (314 | ) | 762,689 | (1,303 | ) | (790,352 | ) | — | 2,896 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Balance on September 30, 2025 |
$ | — | $ | (1,579,321 | ) | $ | (35,821,684 | ) | $ | (8,616,103 | ) | $ | (606,578,248 | ) | $ | (3,416,943 | ) | $ | (10,668,986 | ) | $ | — | $ | (666,681,285 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Balance on January 1, 2025, net |
$ | 102,346,031 | $ | 206,241 | $ | 39,456,710 | $ | 1,721,236 | $ | 120,678,437 | $ | 553,637 | $ | 3,179,720 | $ | 16,572,752 | $ | 284,714,764 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Balance on September 30, 2025, net |
$ | 101,790,526 | $ | 203,117 | $ | 38,376,861 | $ | 1,569,598 | $ | 115,728,674 | $ | 589,110 | $ | 2,940,966 | $ | 16,828,313 | $ | 278,027,165 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
There was no indication that property, plant and equipment was impaired; therefore, the Company did not recognize any impairment loss for the nine months ended September 30, 2025 and 2024.
Depreciation expense for assets used by the Company is computed using the straight-line method over the following estimated service lives:
| Land improvements |
10~30 years | |
| Buildings |
||
| Main buildings |
20~60 years | |
| Other building facilities |
3~15 years | |
| Computer equipment |
2~8 years | |
| Telecommunications equipment |
||
| Telecommunication circuits |
2~30 years | |
| Telecommunication machinery and antennas equipment |
2~30 years | |
| (Continued) |
- 33 -
| Transportation equipment |
2~10 years | |
| Miscellaneous equipment |
||
| Leasehold improvements |
1~18 years | |
| Mechanical and air conditioner equipment |
2~16 years | |
| Others |
1~15 years | |
| (Concluded) |
| b. | Assets subject to operating leases |
| Land | Buildings | Total | ||||||||||
| Cost |
||||||||||||
| Balance on January 1, 2024 |
$ | 4,924,387 | $ | 4,131,031 | $ | 9,055,418 | ||||||
| Additions |
— | 138 | 138 | |||||||||
| Others |
(1,128,922 | ) | 150,389 | (978,533 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Balance on September 30, 2024 |
$ | 3,795,465 | $ | 4,281,558 | $ | 8,077,023 | ||||||
|
|
|
|
|
|
|
|||||||
| Accumulated depreciation and impairment |
||||||||||||
| Balance on January 1, 2024 |
$ | — | $ | (1,802,576 | ) | $ | (1,802,576 | ) | ||||
| Depreciation expense |
— | (56,432 | ) | (56,432 | ) | |||||||
| Others |
— | (65,173 | ) | (65,173 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Balance on September 30, 2024 |
$ | — | $ | (1,924,181 | ) | $ | (1,924,181 | ) | ||||
|
|
|
|
|
|
|
|||||||
| Balance on January 1, 2024, net |
$ | 4,924,387 | $ | 2,328,455 | $ | 7,252,842 | ||||||
|
|
|
|
|
|
|
|||||||
| Balance on September 30, 2024, net |
$ | 3,795,465 | $ | 2,357,377 | $ | 6,152,842 | ||||||
|
|
|
|
|
|
|
|||||||
| Cost |
||||||||||||
| Balance on January 1, 2025 |
$ | 3,104,874 | $ | 3,737,084 | $ | 6,841,958 | ||||||
| Additions |
— | 127 | 127 | |||||||||
| Others |
532,321 | 111,574 | 643,895 | |||||||||
|
|
|
|
|
|
|
|||||||
| Balance on September 30, 2025 |
$ | 3,637,195 | $ | 3,848,785 | $ | 7,485,980 | ||||||
|
|
|
|
|
|
|
|||||||
| Accumulated depreciation and impairment |
||||||||||||
| Balance on January 1, 2025 |
$ | — | $ | (1,716,578 | ) | $ | (1,716,578 | ) | ||||
| Depreciation expense |
— | (50,106 | ) | (50,106 | ) | |||||||
| Others |
— | (6,830 | ) | (6,830 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Balance on September 30, 2025 |
$ | — | $ | (1,773,514 | ) | $ | (1,773,514 | ) | ||||
|
|
|
|
|
|
|
|||||||
| Balance on January 1, 2025, net |
$ | 3,104,874 | $ | 2,020,506 | $ | 5,125,380 | ||||||
|
|
|
|
|
|
|
|||||||
| Balance on September 30, 2025, net |
$ | 3,637,195 | $ | 2,075,271 | $ | 5,712,466 | ||||||
|
|
|
|
|
|
|
|||||||
The Company leases out land and buildings with lease terms between 1 to 20 years. The lessees do not have bargain purchase options to acquire the assets at the expiry of the lease periods.
- 34 -
The future aggregate lease collection under operating lease for the freehold plant, property and equipment was as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Year 1 |
$ | 281,762 | $ | 305,357 | $ | 320,905 | ||||||
| Year 2 |
172,221 | 197,780 | 216,091 | |||||||||
| Year 3 |
116,027 | 121,845 | 129,951 | |||||||||
| Year 4 |
81,618 | 92,431 | 94,032 | |||||||||
| Year 5 |
51,873 | 62,415 | 66,857 | |||||||||
| Onwards |
107,733 | 136,567 | 173,110 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 811,234 | $ | 916,395 | $ | 1,000,946 | |||||||
|
|
|
|
|
|
|
|||||||
The above items of property, plant and equipment subject to operating leases are depreciated on a straight-line basis over their estimated useful lives as follows:
| Buildings |
||
| Main buildings |
35~60 years | |
| Other building facilities |
3~15 years |
| 17. | LEASE ARRANGEMENTS |
| a. | Right-of-use assets |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Land and buildings |
||||||||||||
| Handsets base stations |
$ | 7,739,861 | $ | 7,648,470 | $ | 7,668,373 | ||||||
| Others |
1,614,914 | 1,564,104 | 1,665,320 | |||||||||
| Equipment |
1,700,401 | 1,699,755 | 1,668,138 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 11,055,176 | $ | 10,912,329 | $ | 11,001,831 | |||||||
|
|
|
|
|
|
|
|||||||
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Additions to right-of-use assets |
$ | 3,622,272 | $ | 3,068,649 | ||||||||||||
|
|
|
|
|
|||||||||||||
| Depreciation charge for right-of-use assets |
||||||||||||||||
| Land and buildings |
||||||||||||||||
| Handsets base stations |
$ | 759,920 | $ | 756,725 | $ | 2,280,474 | $ | 2,249,304 | ||||||||
| Others |
204,998 | 204,090 | 613,269 | 602,871 | ||||||||||||
| Equipment |
115,114 | 87,755 | 344,422 | 263,371 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 1,080,032 | $ | 1,048,570 | $ | 3,238,165 | $ | 3,115,546 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
The Company did not have significant sublease or impairment of right-of-use assets for the nine months ended September 30, 2025 and 2024.
- 35 -
| b. | Lease liabilities |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Lease liabilities |
||||||||||||
| Current |
$ | 3,811,130 | $ | 3,557,874 | $ | 3,539,219 | ||||||
| Noncurrent |
7,225,607 | 7,333,503 | 7,456,843 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 11,036,737 | $ | 10,891,377 | $ | 10,996,062 | |||||||
|
|
|
|
|
|
|
|||||||
Ranges of discount rates for lease liabilities were as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Land and buildings |
||||||||||||
| Handsets base stations |
0.37%~2.00% | 0.37%~2.00% | 0.37%~1.98% | |||||||||
| Others |
0.37%~9.00% | 0.37%~9.00% | 0.37%~9.00% | |||||||||
| Equipment |
0.37%~3.50% | 0.37%~3.50% | 0.37%~3.50% | |||||||||
| c. | Important lease-in activities and terms |
The Company mainly enters into lease-in agreements of land and buildings for handsets base stations located throughout Taiwan with lease terms ranging from 1 to 20 years. The lease agreements do not contain bargain purchase options to acquire the assets at the expiration of the respective leases. For majority of the lease-in agreements on handsets base station, the Company has the right to terminate the agreement prior to the expiration date if the Company is unable to build the required telecommunication equipment, either due to legal restrictions, controversial events, or other events.
The Company also leases land and buildings for the use of offices, server rooms, and stores with lease terms from 1 to 30 years. Most of the lease agreements for national land adjust the lease payment according to the changes of the announced land values by the authority. At the expiry of the lease term, the Company does not have bargain purchase options to acquire the assets.
The lease agreements for equipment include a contract between Chunghwa and ST-2 Satellite Ventures Pte., Ltd. to lease capacity on the ST-2 satellite. For the information of lease agreements with related parties, please refer to Note 38 for details.
| d. | Other lease information |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Expenses relating to low-value asset leases |
$ | 2,281 | $ | 2,846 | $ | 6,628 | $ | 7,235 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Expenses relating to variable lease payments not included in the measurement of lease liabilities |
$ | 1,924 | $ | 1,653 | $ | 5,362 | $ | 4,719 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total cash outflow for leases |
$ | 3,283,830 | $ | 3,030,014 | ||||||||||||
|
|
|
|
|
|||||||||||||
- 36 -
The Company leases certain equipment which qualifies as low-value asset leases. The Company has elected to apply the recognition exemption and, thus, not to recognize right-of-use assets and lease liabilities for these leases.
Lease-out arrangements under operating leases for freehold property, plant, and equipment and investment properties were set out in Notes 16 and 18.
| 18. | INVESTMENT PROPERTIES |
| Cost | ||||
| Balance on January 1, 2024 |
$ | 11,161,834 | ||
| Reclassification |
1,894,977 | |||
|
|
|
|||
| Balance on September 30, 2024 |
$ | 13,056,811 | ||
|
|
|
|||
| Accumulated depreciation and impairment |
||||
| Balance on January 1, 2024 |
$ | (1,356,371 | ) | |
| Depreciation expense |
(33,531 | ) | ||
| Reclassification |
(24,663 | ) | ||
|
|
|
|||
| Balance on September 30, 2024 |
$ | (1,414,565 | ) | |
|
|
|
|||
| Balance on January 1, 2024, net |
$ | 9,805,463 | ||
|
|
|
|||
| Balance on September 30, 2024, net |
$ | 11,642,246 | ||
|
|
|
|||
| Cost |
||||
| Balance on January 1, 2025 |
$ | 13,592,694 | ||
| Additions |
7,060 | |||
| Reclassification |
30,235 | |||
|
|
|
|||
| Balance on September 30, 2025 |
$ | 13,629,989 | ||
|
|
|
|||
| Accumulated depreciation and impairment |
||||
| Balance on January 1, 2025 |
$ | (1,290,975 | ) | |
| Depreciation expense |
(33,730 | ) | ||
| Reclassification |
(1,357 | ) | ||
|
|
|
|||
| Balance on September 30, 2025 |
$ | (1,326,062 | ) | |
|
|
|
|||
| Balance on January 1, 2025, net |
$ | 12,301,719 | ||
|
|
|
|||
| Balance on September 30, 2025, net |
$ | 12,303,927 | ||
|
|
|
|||
Depreciation expense is computed using the straight-line method over the following estimated service lives:
| Land improvements |
15~30 years | |
| Buildings |
||
| Main buildings |
8~60 years | |
| Other building facilities |
10~35 years |
- 37 -
The fair values of the Company’s investment properties as of December 31, 2024 and 2023 were determined by Level 3 fair value measurements inputs based on the appraisal reports conducted by independent appraisers. The Company used the aforementioned appraisal reports as the basis to determine the fair values as of September 30, 2025 and 2024 because there was no material change in the economic environment or the market transaction price. Those appraisal reports are based on the comparison approach, income approach or cost approach. Key assumptions and the fair values were as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Fair value |
$ | 41,496,818 | $ | 41,284,758 | $ | 35,492,590 | ||||||
|
|
|
|
|
|
|
|||||||
| Overall capital interest rate |
1.47%~5.81% | 1.47%~5.81% | 1.43%~5.51% | |||||||||
| Profit margin ratio |
12%~20% | 12%~20% | 10%~20% | |||||||||
| Discount rate |
0%~10% | 0%~10% | — | |||||||||
| Capitalization rate |
1.12%~2.13% | 1.12%~2.13% | 0.23%~2.28% | |||||||||
All of the Company’s investment properties are held under freehold interest.
The future aggregate lease collection under operating lease for investment properties is as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Year 1 |
$ | 271,509 | $ | 274,163 | $ | 273,976 | ||||||
| Year 2 |
236,609 | 247,997 | 246,991 | |||||||||
| Year 3 |
206,136 | 216,256 | 215,571 | |||||||||
| Year 4 |
196,344 | 192,062 | 184,618 | |||||||||
| Year 5 |
188,973 | 190,020 | 179,463 | |||||||||
| Onwards |
1,168,348 | 1,306,456 | 1,229,287 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 2,267,919 | $ | 2,426,954 | $ | 2,329,906 | |||||||
|
|
|
|
|
|
|
|||||||
| 19. | INTANGIBLE ASSETS |
| Mobile Broadband Concession |
Computer Software |
Goodwill | Others | Total | ||||||||||||||||
| Cost |
||||||||||||||||||||
| Balance on January 1, 2024 |
$ | 109,963,431 | $ | 2,532,249 | $ | 291,206 | $ | 421,835 | $ | 113,208,721 | ||||||||||
| Additions-acquired separately |
— | 133,672 | — | 3,775 | 137,447 | |||||||||||||||
| Disposal |
— | (202,904 | ) | — | (7,440 | ) | (210,344 | ) | ||||||||||||
| Effect of foreign exchange differences |
— | 107 | — | 54 | 161 | |||||||||||||||
| Others |
— | 14,255 | — | — | 14,255 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance on September 30, 2024 |
$ | 109,963,431 | $ | 2,477,379 | $ | 291,206 | $ | 418,224 | $ | 113,150,240 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Accumulated amortization and impairment |
||||||||||||||||||||
| Balance on January 1, 2024 |
$ | (38,202,416 | ) | $ | (1,954,096 | ) | $ | (73,624 | ) | $ | (252,040 | ) | $ | (40,482,176 | ) | |||||
| Amortization expenses |
(4,792,604 | ) | (205,789 | ) | — | (22,682 | ) | (5,021,075 | ) | |||||||||||
| Disposal |
— | 202,904 | — | 7,440 | 210,344 | |||||||||||||||
| (Continued | ) | |||||||||||||||||||
- 38 -
| Mobile Broadband Concession |
Computer Software |
Goodwill | Others | Total | ||||||||||||||||
| Effect of foreign exchange differences |
$ | — | $ | (56 | ) | $ | — | $ | (33 | ) | $ | (89 | ) | |||||||
| Others |
— | 364 | — | — | 364 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance on September 30, 2024 |
$ | (42,995,020 | ) | $ | (1,956,673 | ) | $ | (73,624 | ) | $ | (267,315 | ) | $ | (45,292,632 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance on January 1, 2024, net |
$ | 71,761,015 | $ | 578,153 | $ | 217,582 | $ | 169,795 | $ | 72,726,545 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance on September 30, 2024, net |
$ | 66,968,411 | $ | 520,706 | $ | 217,582 | $ | 150,909 | $ | 67,857,608 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Cost |
||||||||||||||||||||
| Balance on January 1, 2025 |
$ | 109,963,431 | $ | 2,427,063 | $ | 291,206 | $ | 418,959 | $ | 113,100,659 | ||||||||||
| Additions-acquired separately |
— | 88,135 | — | 2,495 | 90,630 | |||||||||||||||
| Disposal |
— | (166,626 | ) | — | (1,256 | ) | (167,882 | ) | ||||||||||||
| Effect of foreign exchange differences |
— | (676 | ) | — | (10 | ) | (686 | ) | ||||||||||||
| Others |
— | 2,658 | — | — | 2,658 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance on September 30, 2025 |
$ | 109,963,431 | $ | 2,350,554 | $ | 291,206 | $ | 420,188 | $ | 113,025,379 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Accumulated amortization and impairment |
||||||||||||||||||||
| Balance on January 1, 2025 |
$ | (44,592,555 | ) | $ | (1,877,275 | ) | $ | (73,624 | ) | $ | (274,003 | ) | $ | (46,817,457 | ) | |||||
| Amortization expenses |
(4,792,604 | ) | (191,351 | ) | — | (18,647 | ) | (5,002,602 | ) | |||||||||||
| Disposal |
— | 166,626 | — | 1,256 | 167,882 | |||||||||||||||
| Effect of foreign exchange differences |
— | 202 | — | 7 | 209 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance on September 30, 2025 |
$ | (49,385,159 | ) | $ | (1,901,798 | ) | $ | (73,624 | ) | $ | (291,387 | ) | $ | (51,651,968 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance on January 1, 2025, net |
$ | 65,370,876 | $ | 549,788 | $ | 217,582 | $ | 144,956 | $ | 66,283,202 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance on September 30, 2025, net |
$ | 60,578,272 | $ | 448,756 | $ | 217,582 | $ | 128,801 | $ | 61,373,411 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(Concluded)
The concessions are granted and issued by the National Communications Commission (“NCC”). The concession fees are amortized using the straight-line method over the period from the date operations commence through the date the license expires or the useful life, whichever is shorter. The 4G concession fees will be fully amortized by December 2030 and December 2033 and 5G concession fees will be fully amortized by December 2040.
The computer software is amortized using the straight-line method over the estimated useful lives of 1 to 10 years. Other intangible assets, except for those assessed as having indefinite useful lives, are amortized using the straight-line method over the estimated useful lives of 3 to 20 years. Goodwill is not amortized.
| 20. | OTHER ASSETS |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Spare parts |
$ | 2,676,658 | $ | 2,005,946 | $ | 2,955,635 | ||||||
| Refundable deposits |
1,909,876 | 2,161,983 | 2,002,643 | |||||||||
| Other financial assets |
1,000,000 | 1,000,000 | 1,000,000 | |||||||||
| Others |
3,054,577 | 2,831,855 | 2,808,845 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 8,641,111 | $ | 7,999,784 | $ | 8,767,123 | |||||||
|
|
|
|
|
|
|
|||||||
| (Continued | ) | |||||||||||
- 39 -
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Current |
||||||||||||
| Spare parts |
$ | 2,676,658 | $ | 2,005,946 | $ | 2,955,635 | ||||||
| Others |
1,313,029 | 1,108,608 | 1,267,010 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 3,989,687 | $ | 3,114,554 | $ | 4,222,645 | |||||||
|
|
|
|
|
|
|
|||||||
| Noncurrent |
||||||||||||
| Refundable deposits |
$ | 1,909,876 | $ | 2,161,983 | $ | 2,002,643 | ||||||
| Other financial assets |
1,000,000 | 1,000,000 | 1,000,000 | |||||||||
| Others |
1,741,548 | 1,723,247 | 1,541,835 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 4,651,424 | $ | 4,885,230 | $ | 4,544,478 | |||||||
|
|
|
|
|
|
|
|||||||
| (Concluded | ) | |||||||||||
Other financial assets—noncurrent was Piping Fund. As part of the government’s effort to upgrade the existing telecommunications infrastructure, Chunghwa and other public utility companies were required by the ROC government to contribute to a Piping Fund administered by the Taipei City Government. This fund was used to finance various telecommunications infrastructure projects. Net assets of this fund will be returned proportionately after the project is completed.
| 21. | HEDGING FINANCIAL INSTRUMENTS |
Chunghwa’s hedge strategy is to enter into forward exchange contracts—buy to avoid its foreign currency exposure to certain foreign currency denominated equipment payments in the following six months. In addition, Chunghwa’s management considers the market condition to determine the hedge ratio and enters into forward exchange contracts with the banks to avoid the foreign currency risk.
Chunghwa signed equipment purchase contracts with suppliers and entered into forward exchange contracts to avoid foreign currency risk exposure to Euro-denominated purchase commitments. Those forward exchange contracts were designated as cash flow hedges. When forecast purchases actually take place, basis adjustments are made to the initial carrying amounts of hedged items.
For the hedges of highly probable forecast sales and purchases, as the critical terms (i.e. the notional amount, life and underlying) of the forward foreign exchange contracts and their corresponding hedged items are the same, the Company performs a qualitative assessment of effectiveness and it is expected that the value of the forward contracts and the value of the corresponding hedged items will systematically change in opposite direction in response to movements in the underlying exchange rates.
The main source of hedge ineffectiveness in these hedging relationships is the effect of credit risks of the Company and the counterparty on the fair value of the forward exchange contracts. Such credit risks do not impact the fair value of the hedged item attributable to changes in foreign exchange rates. No other sources of ineffectiveness emerged from these hedging relationships.
- 40 -
The following tables summarized the information relating to the hedges for foreign currency risk.
September 30, 2025
| Hedging Instruments | Notional Amount |
Forward Rate |
Line Item in | Carrying Amount |
Change in Fair Values of Hedging Instruments Used for Calculating Hedge |
|||||||||||||||||||||||||
| Currency | (In Thousands) | Maturity | (In Dollars) | Balance Sheet | Asset | Liability | Ineffectiveness | |||||||||||||||||||||||
| Cash flow hedge |
||||||||||||||||||||||||||||||
| Forecast purchases - forward exchange contracts |
NT$ | /EUR | |
NT$ 297,544 /EUR 8,500 |
|
December 2025 | $ | 35.01 | Hedging financial assets (liabilities) |
$ | 6,275 | $ | — | $ | 7,049 | |||||||||||||||
| Change in Calculating |
Accumulated Gain or Loss on Hedging Instruments in Other Equity |
|||||||||||
| Hedged Items | Continuing Hedges |
Hedge Accounting No Longer Applied |
||||||||||
| Cash flow hedge |
||||||||||||
| Forecast equipment purchases |
$ | (7,049 | ) | $ | 6,275 | $ | — | |||||
December 31, 2024
| Hedging Instruments |
Notional Amount |
Forward Rate |
Line Item in | Carrying Amount |
Change in Fair Values of Hedging Instruments Used for Calculating Hedge |
|||||||||||||||||||||||||
| Currency | (In Thousands) | Maturity | (In Dollars) | Balance Sheet | Asset | Liability | Ineffectiveness | |||||||||||||||||||||||
| Cash flow hedge |
||||||||||||||||||||||||||||||
| Forecast purchases - forward exchange contracts |
NT$/EUR | |
NT$341,036 /EUR10,000 |
March 2025 | $ | 34.10 | Hedging financial assets (liabilities) |
$ | 1,133 | $ | 1,907 | $ | (730 | ) | ||||||||||||||||
| Change in Value of Hedged Item Used for |
Accumulated Gain or Loss on Hedging Instruments in Other Equity |
|||||||||||
| Hedged Items | Calculating Hedge Ineffectiveness |
Continuing Hedges |
Hedge Accounting No Longer Applied |
|||||||||
| Cash flow hedge |
||||||||||||
| Forecast equipment purchases |
$ | 730 | $ | (774 | ) | $ | — | |||||
September 30, 2024
| Hedging Instruments |
Notional Amount |
Forward Rate |
Line Item in | Carrying Amount |
Change in Fair Values of Hedging Instruments Used for Calculating Hedge |
|||||||||||||||||||||||||
| Currency | (In Thousands) | Maturity | (In Dollars) | Balance Sheet | Asset | Liability | Ineffectiveness | |||||||||||||||||||||||
| Cash flow hedge |
||||||||||||||||||||||||||||||
| Forecast purchases - forward exchange contracts |
NT$ | /EUR | |
NT$ 141,607 / EUR 4,000 |
|
December 2024 | $ | 35.40 | Hedging financial assets (liabilities) |
$ | — | $ | 662 | $ | (618 | ) | ||||||||||||||
- 41 -
| Change in Value of Hedged Item Used for |
Accumulated Gain or Loss on Hedging Instruments in Other Equity |
|||||||||||
| Hedged Items | Calculating Hedge Ineffectiveness |
Continuing Hedges |
Hedge Accounting No Longer Applied |
|||||||||
| Cash flow hedge |
||||||||||||
| Forecast equipment purchases |
$ | 618 | $ | (662 | ) | $ | — | |||||
Nine months ended September 30, 2025
| Comprehensive Income | Reclassification from Equity to Assets and the Adjusted Line Item |
|||||||||||||||||||
| Hedge Transaction | Hedging Gain or Loss Recognized in OCI |
Amount of Hedge Ineffectiveness Recognized in Profit or Loss |
Line Item in Included |
Amount Reclassified to Assets and the Adjusted Line Item |
Due to Hedged Future Cash Flows No Longer Expected to Occur |
|||||||||||||||
| Cash flow hedge |
||||||||||||||||||||
| Forecast equipment purchases |
$ | 7,049 | $ | — | — | $ |
(5,660 Construction in |
) |
$
|
— Other gains and losses |
| |||||||||
Nine months ended September 30, 2024
| Comprehensive Income | Reclassification from Equity to Assets and the Adjusted Line Item |
|||||||||||||||||||
| Hedge Transaction | Hedging Gain or Loss Recognized in OCI |
Amount of Hedge Ineffectiveness Recognized in Profit or Loss |
Line Item in Included |
Amount Reclassified to Assets and the Adjusted Line Item |
Due to Hedged Future Cash Flows No Longer Expected to Occur |
|||||||||||||||
| Cash flow hedge |
||||||||||||||||||||
| Forecast equipment purchases |
$ | (618 | ) | $ | — | — | $ |
4,591 Construction in progress and equipment to be accepted |
|
$
|
— Other gains and losses |
| ||||||||
| 22. | SHORT-TERM LOANS |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Unsecured bank loans |
$ | 755,000 | $ | 215,000 | $ | 430,000 | ||||||
|
|
|
|
|
|
|
|||||||
The annual interest rates of bank loans were as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Unsecured bank loans |
1.76%~2.28% | 1.82%~3.49% | 1.82%~3.49% | |||||||||
- 42 -
| 23. | LONG-TERM LOANS |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Secured bank loans (Note 39) |
$ | 1,600,000 | $ | 1,600,000 | $ | 1,600,000 | ||||||
| Unsecured bank loans |
— | 35,000 | — | |||||||||
| Less: Current portion |
— | (3,646 | ) | — | ||||||||
|
|
|
|
|
|
|
|||||||
| $ | 1,600,000 | $ | 1,631,354 | $ | 1,600,000 | |||||||
|
|
|
|
|
|
|
|||||||
The annual interest rates of bank loans were as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Secured bank loans |
2.10 | % | 2.09 | % | 2.06 | % | ||||||
| Unsecured bank loans |
— | 2.22 | % | — | ||||||||
LED obtained a secured loan from Chang Hwa Bank with monthly interest payments. LED entered into a contract with Chang Hwa Bank to renew the contract upon the maturity of the aforementioned contract in August 2024, and the due date of the renewed contract is September 2027.
CLPT entered into an unsecured loan contract with Mega International Commercial Bank, and interest was paid monthly. The loan was fully repaid in July 2025.
| 24. | BONDS PAYABLE |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Unsecured domestic bonds |
$ | 25,200,000 | $ | 30,500,000 | $ | 30,500,000 | ||||||
| Less: Discounts on bonds payable |
(12,914 | ) | (11,794 | ) | (13,133 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| 25,187,086 | 30,488,206 | 30,486,867 | ||||||||||
| Less: Current portion |
(1,899,750 | ) | (8,798,880 | ) | (8,798,425 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| $ | 23,287,336 | $ | 21,689,326 | $ | 21,688,442 | |||||||
|
|
|
|
|
|
|
|||||||
The major terms of unsecured domestic bonds issued by Chunghwa were as follows:
| Issuance | Tranche | Issuance Period | Total Amount | Coupon Rate |
Repayment and Interest Payment | |||||
| 2020-1 |
A | July 2020 to July 2025 | $8,800,000 | 0.50% | One-time repayment upon maturity; interest payable annually | |||||
| B | July 2020 to July 2027 | 7,500,000 | 0.54% | The same as above | ||||||
| C | July 2020 to July 2030 | 3,700,000 | 0.59% | The same as above | ||||||
| 2021-1 |
A | April 2021 to April 2026 | 1,900,000 | 0.42% | The same as above | |||||
| B | April 2021 to April 2028 | 4,100,000 | 0.46% | The same as above | ||||||
| C | April 2021 to April 2031 | 1,000,000 | 0.50% | The same as above | ||||||
| 2022-1 (Sustainable Bond) |
— | March 2022 to March 2027 | 3,500,000 | 0.69% | The same as above | |||||
| 2025-1 (Sustainable Bond) |
— | August 2025 to August 2030 | 3,500,000 | 1.73% | The same as above |
- 43 -
| 25. | TRADE NOTES AND ACCOUNTS PAYABLE |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Trade notes and accounts payable |
$ | 13,471,366 | $ | 17,742,532 | $ | 12,379,605 | ||||||
|
|
|
|
|
|
|
|||||||
Trade notes and accounts payable were attributable to operating activities and the trading conditions were agreed separately.
| 26. | OTHER PAYABLES |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Accrued salary and compensation |
$ | 9,029,643 | $ | 10,721,819 | $ | 8,269,073 | ||||||
| Accrued compensation to employees and remuneration to directors and supervisors |
2,089,605 | 2,499,932 | 1,946,960 | |||||||||
| Amounts collected for others |
1,861,617 | 1,706,744 | 1,620,636 | |||||||||
| Accrued maintenance costs |
1,129,730 | 1,116,992 | 1,104,841 | |||||||||
| Payables to contractors |
1,049,818 | 2,264,856 | 1,284,815 | |||||||||
| Payables to equipment suppliers |
527,241 | 720,361 | 215,647 | |||||||||
| Others |
7,367,479 | 7,550,649 | 7,251,171 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 23,055,133 | $ | 26,581,353 | $ | 21,693,143 | |||||||
|
|
|
|
|
|
|
|||||||
| 27. | PROVISIONS |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Warranties |
$ | 261,521 | $ | 280,679 | $ | 230,178 | ||||||
| Onerous contracts |
256,833 | 266,755 | 167,830 | |||||||||
| Employee benefits |
225,166 | 415,477 | 409,081 | |||||||||
| Others |
12,272 | 13,574 | 2,967 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 755,792 | $ | 976,485 | $ | 810,056 | |||||||
|
|
|
|
|
|
|
|||||||
| Current |
$ | 437,013 | $ | 441,801 | $ | 308,999 | ||||||
| Noncurrent |
318,779 | 534,684 | 501,057 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 755,792 | $ | 976,485 | $ | 810,056 | |||||||
|
|
|
|
|
|
|
|||||||
| Warranties | Onerous Contracts |
Employee Benefits |
Others | Total | ||||||||||||||||
| Balance on January 1, 2024 |
$ | 237,873 | $ | 194,651 | $ | 387,082 | $ | 3,067 | $ | 822,673 | ||||||||||
| Additional / (reversal of) provisions recognized |
41,260 | (26,821 | ) | 27,394 | (100 | ) | 41,733 | |||||||||||||
| Used / forfeited during the period |
(49,012 | ) | — | (5,395 | ) | — | (54,407 | ) | ||||||||||||
| Effect of foreign exchange differences |
57 | — | — | — | 57 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance on September 30, 2024 |
$ | 230,178 | $ | 167,830 | $ | 409,081 | $ | 2,967 | $ | 810,056 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance on January 1, 2025 |
$ | 280,679 | $ | 266,755 | $ | 415,477 | $ | 13,574 | $ | 976,485 | ||||||||||
| Additional / (reversal of) provisions recognized |
50,036 | (9,561 | ) | 30,364 | 2,558 | 73,397 | ||||||||||||||
| Used / forfeited during the period |
(69,102 | ) | — | (220,675 | ) | (3,860 | ) | (293,637 | ) | |||||||||||
| Effect of foreign exchange differences |
(92 | ) | (361 | ) | — | — | (453 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Balance on September 30, 2025 |
$ | 261,521 | $ | 256,833 | $ | 225,166 | $ | 12,272 | $ | 755,792 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
- 44 -
| a. | The provision for warranty claims represents the present value of the management’s best estimate of the future outflow of economic benefits that will be required under the Company’s obligation for warranties in sales agreements. The estimate has been made based on historical warranty experience. |
| b. | The provision for employee benefits represents vested long-term service compensation accrued. |
| c. | The provision for onerous contracts represents the present obligation resulting from the measurement for the unavoidable costs of meeting the Company’s contractual obligations exceed the economic benefits expected to be received from the contracts. |
| 28. | RETIREMENT BENEFIT PLANS |
Relevant pension costs for defined benefit plans which were determined by the pension cost rates of actuarial valuation as of December 31, 2024 and 2023 were as follows:
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Operating costs |
$ | 79,608 | $ | 102,935 | $ | 240,598 | $ | 312,760 | ||||||||
| Marketing expenses |
63,436 | 79,082 | 189,795 | 234,666 | ||||||||||||
| General and administrative expenses |
15,470 | 18,588 | 45,702 | 54,490 | ||||||||||||
| Research and development expenses |
7,314 | 8,256 | 21,457 | 24,254 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 165,828 | $ | 208,861 | $ | 497,552 | $ | 626,170 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 29. | EQUITY |
| a. | Share capital |
| 1) | Common stocks |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Number of authorized shares (thousand) |
12,000,000 | 12,000,000 | 12,000,000 | |||||||||
|
|
|
|
|
|
|
|||||||
| Authorized shares |
$ | 120,000,000 | $ | 120,000,000 | $ | 120,000,000 | ||||||
|
|
|
|
|
|
|
|||||||
| Number of issued and paid shares (thousand) |
7,757,447 | 7,757,447 | 7,757,447 | |||||||||
|
|
|
|
|
|
|
|||||||
| Issued shares |
$ | 77,574,465 | $ | 77,574,465 | $ | 77,574,465 | ||||||
|
|
|
|
|
|
|
|||||||
- 45 -
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 September 30, 2025, the outstanding ADSs were 189,383 thousand common stocks, which equaled 18,938 thousand units and represented 2.44% 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 nine months ended September 30, 2025 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 | ||||||||||||||||||||||
| Balance on January 1, 2024 |
$ | 147,329,386 | $ | 151,952 | $ | 2,144,727 | $ | 987,607 | $ | 27,336 | $ | 20,648,078 | $ | 171,289,086 | ||||||||||||||
| Payment of unclaimed dividend |
— | — | — | — | (123 | ) | — | (123 | ) | |||||||||||||||||||
| Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method |
— | 62,904 | — | — | — | — | 62,904 | |||||||||||||||||||||
| Actual disposal of interests in subsidiaries |
— | — | 406 | 223,887 | — | — | 224,293 | |||||||||||||||||||||
| Changes in equities of subsidiaries |
— | — | (3,926 | ) | — | — | — | (3,926 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Balance on September 30, 2024 |
$ | 147,329,386 | $ | 214,856 | $ | 2,141,207 | $ | 1,211,494 | $ | 27,213 | $ | 20,648,078 | $ | 171,572,234 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Balance on January 1, 2025 |
$ | 147,329,386 | $ | 223,835 | $ | 2,145,041 | $ | 1,211,494 | $ | 29,445 | $ | 20,648,078 | $ | 171,587,279 | ||||||||||||||
| Unclaimed dividend |
— | — | — | — | 2,033 | — | 2,033 | |||||||||||||||||||||
| Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method |
— | (6,128 | ) | — | — | — | — | (6,128 | ) | |||||||||||||||||||
| Change in additional paid-in capital for not participating in the capital increase of subsidiaries |
— | — | 531,781 | — | — | — | 531,781 | |||||||||||||||||||||
| Changes in equities of subsidiaries |
— | — | 5,987 | — | — | — | 5,987 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Balance on September 30, 2025 |
$ | 147,329,386 | $ | 217,707 | $ | 2,682,809 | $ | 1,211,494 | $ | 31,478 | $ | 20,648,078 | $ | 172,120,952 | ||||||||||||||
|
|
|
|
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|
|
|
|
|||||||||||||||
- 46 -
Additional paid-in capital from share premium, donated capital and the difference between the 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 the 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 $0.10 per share, such cash dividend shall be distributed in the form of common stocks.
The Company should appropriate a special reserve when the net amount of other equity items is negative at the end of reporting period upon the earnings distribution. Distributions can be made out of any subsequent reversal of the debit to other equity items.
The appropriation for legal reserve shall be made until the accumulated reserve equals the aggregate par value of the outstanding capital stock of Chunghwa. This reserve can only be used to offset a deficit, or, when the legal reserve has exceeded 25% of Chunghwa’s paid-in capital, the excess may be transferred to capital or distributed in cash.
- 47 -
The appropriations of the 2024 and 2023 earnings of Chunghwa approved by the stockholders in their meetings on May 29, 2025 and May 31, 2024 were as follows:
| Appropriation of Earnings | Dividends Per Share (NT$) |
|||||||||||||||
| For Fiscal Year 2024 |
For Fiscal Year 2023 |
For Fiscal Year 2024 |
For Fiscal Year 2023 |
|||||||||||||
| Reversal of special reserve |
$ | — | $ | (223,084 | ) | |||||||||||
| Cash dividends |
38,787,232 | 36,909,931 | $ | 5.000 | $ | 4.758 | ||||||||||
Information of the appropriation of Chunghwa’s earnings proposed by the Board of Directors and approved by the stockholders is available on the Market Observation Post System website.
| 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 |
| Nine Months Ended September 30 | ||||||||
| 2025 | 2024 | |||||||
| Beginning balance |
$ | 563,605 | $ | 520,748 | ||||
| Recognized for the period |
||||||||
| Unrealized gain or loss |
||||||||
| Equity instruments |
742,655 | 87,065 | ||||||
| Share of profits (loss) of associates and joint ventures accounted for using equity method |
23,011 | (857 | ) | |||||
|
|
|
|
|
|||||
| Ending balance |
$ | 1,329,271 | $ | 606,956 | ||||
|
|
|
|
|
|||||
| e. | Noncontrolling interests |
| Nine Months Ended September 30 | ||||||||
| 2025 | 2024 | |||||||
| Beginning balance |
$ | 13,154,166 | $ | 12,596,252 | ||||
| Shares attributed to noncontrolling interests |
||||||||
| Net income for the period |
1,248,830 | 784,382 | ||||||
| Exchange differences arising from the translation of the foreign operations |
(16,096 | ) | 6,957 | |||||
| Unrealized gain or loss on financial assets at FVOCI |
10,811 | (811 | ) | |||||
| Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method |
(18,411 | ) | 28,204 | |||||
| Cash dividends distributed by subsidiaries |
(1,094,115 | ) | (898,565 | ) | ||||
| Loss of control of subsidiaries (Note 14) |
19,534 | — | ||||||
| Changes in additional paid-in capital from investments in associates and joint ventures accounted for using equity method |
— | (1,728 | ) | |||||
| Actual disposal of interests in subsidiaries |
— | 34,480 | ||||||
| Change in additional paid-in capital for not participating in the capital increase of subsidiaries |
500,016 | — | ||||||
| Net increase in noncontrolling interests |
11,381 | 33,295 | ||||||
|
|
|
|
|
|||||
| Ending balance |
$ | 13,816,116 | $ | 12,582,466 | ||||
|
|
|
|
|
|||||
- 48 -
| 30. | REVENUES |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue from contracts with customers |
$ | 57,321,629 | $ | 55,001,703 | $ | 168,615,562 | $ | 162,820,518 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other revenues |
||||||||||||||||
| Government grants income |
322,029 | 271,051 | 1,036,110 | 838,290 | ||||||||||||
| Rental income |
223,323 | 292,071 | 651,862 | 870,489 | ||||||||||||
| Others |
57,356 | 48,651 | 159,608 | 143,383 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 602,708 | 611,773 | 1,847,580 | 1,852,162 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 57,924,337 | $ | 55,613,476 | $ | 170,463,142 | $ | 164,672,680 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
For the information of performance obligations related to customer contracts, please refer to Note 3 Summary of Material Accounting Policy Information to the consolidated financial statements for the year ended December 31, 2024 for details.
| a. | Disaggregation of revenue |
Please refer to Note 44 Segment Information for details.
| b. | Contract balances |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
January 1, 2024 |
|||||||||||||
| Trade notes and accounts receivable (Note 10) |
$ | 26,520,593 | $ | 26,025,696 | $ | 23,085,802 | $ | 24,841,995 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Contract assets |
||||||||||||||||
| Products and service bundling |
$ | 10,598,390 | $ | 10,445,758 | $ | 10,081,628 | $ | 9,297,181 | ||||||||
| Others |
1,964,114 | 2,306,854 | 1,629,010 | 1,205,973 | ||||||||||||
| Less: Loss allowance |
(27,016 | ) | (23,845 | ) | (23,034 | ) | (21,282 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 12,535,488 | $ | 12,728,767 | $ | 11,687,604 | $ | 10,481,872 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Current |
$ | 8,052,300 | $ | 8,401,343 | $ | 7,444,080 | $ | 6,713,227 | ||||||||
| Noncurrent |
4,483,188 | 4,327,424 | 4,243,524 | 3,768,645 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 12,535,488 | $ | 12,728,767 | $ | 11,687,604 | $ | 10,481,872 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Contract liabilities |
||||||||||||||||
| Telecommunications business |
$ | 13,624,294 | $ | 13,931,238 | $ | 14,041,785 | $ | 14,015,949 | ||||||||
| Project business |
9,667,908 | 8,014,350 | 7,958,963 | 6,654,364 | ||||||||||||
| Advance house and land receipts (Notes 11 and 40) |
1,226,571 | 1,064,150 | 978,878 | 459,697 | ||||||||||||
| Others |
1,090,695 | 831,978 | 897,705 | 518,758 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 25,609,468 | $ | 23,841,716 | $ | 23,877,331 | $ | 21,648,768 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Current |
$ | 19,010,040 | $ | 16,300,986 | $ | 16,238,717 | $ | 14,088,416 | ||||||||
| Noncurrent |
6,599,428 | 7,540,730 | 7,638,614 | 7,560,352 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 25,609,468 | $ | 23,841,716 | $ | 23,877,331 | $ | 21,648,768 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
- 49 -
The changes in the contract asset and the contract liability balances primarily result from the timing difference between the satisfaction of performance obligations and the payments collected from customers.
The Company applies the simplified approach to recognize expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for receivables. Contract assets will be reclassified to trade receivables when the corresponding invoice is billed to the client. Contract assets have substantially the same risk characteristics as the trade receivables of the same types of contracts. Therefore, the Company concluded that the expected loss rates for trade receivables can be applied to the contract assets.
| c. | Incremental costs of obtaining contracts |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Current |
||||||||||||
| Incremental costs of obtaining contracts |
$ | 338,581 | $ | 339,172 | $ | 339,055 | ||||||
|
|
|
|
|
|
|
|||||||
| Noncurrent |
||||||||||||
| Incremental costs of obtaining contracts |
$ | 1,133,181 | $ | 1,221,652 | $ | 1,125,205 | ||||||
|
|
|
|
|
|
|
|||||||
The Company considered the past experience and the default clauses in the telecommunications service contracts and believes the commissions and equipment subsidies paid for obtaining such contracts are expected to be recoverable; therefore, such costs were capitalized. The Company also believes the commissions paid for obtaining real estate sale contracts are expected to be recoverable; therefore, such costs were capitalized. Amortization expenses for the three months and nine months ended September 30, 2025 were $237,556 thousand and $709,247 thousand, respectively. Amortization expenses for the three months and nine months ended September 30, 2024 were $234,292 thousand and $670,972 thousand, respectively.
- 50 -
| 31. | NET INCOME |
| a. | Other income and expenses |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Gain (loss) on disposal of property, plant and equipment, net |
$ | 2,005 | $ | (9,026 | ) | $ | 8,219 | $ | (9,715 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| b. | Other income |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Dividend income |
$ | 5,183 | $ | 4,943 | $ | 280,667 | $ | 239,908 | ||||||||
| Rental income |
19,124 | 19,491 | 57,412 | 56,067 | ||||||||||||
| Others |
38,056 | 68,804 | 104,025 | 122,665 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 62,363 | $ | 93,238 | $ | 442,104 | $ | 418,640 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| c. | Other gains and losses |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Valuation gain (loss) on financial assets and liabilities at fair value through profit or loss, net |
$ | 9,906 | $ | (53,079 | ) | $ | (75,282 | ) | $ | (125,526 | ) | |||||
| Foreign currency exchange gain (loss), net |
(57,434 | ) | (51,593 | ) | 30,474 | (76,225 | ) | |||||||||
| Gain on disposal of financial instruments, net |
— | — | — | 1,073 | ||||||||||||
| Gain on disposal of subsidiaries |
— | — | 15,290 | — | ||||||||||||
| Loss on disposal of investments accounted for using equity method |
(2 | ) | — | (2 | ) | — | ||||||||||
| Others |
(5,243 | ) | (3,927 | ) | (10,983 | ) | (2,072 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | (52,773 | ) | $ | (108,599 | ) | $ | (40,503 | ) | $ | (202,750 | ) | |||||
|
|
|
|
|
|
|
|
|
|||||||||
| d. | Interest expenses |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Interest on bonds payable |
$ | 39,372 | $ | 41,909 | $ | 123,318 | $ | 125,840 | ||||||||
| Interest on lease liabilities |
39,099 | 33,274 | 114,848 | 94,132 | ||||||||||||
| Interest paid to financial institutions |
12,507 | 10,627 | 33,836 | 31,623 | ||||||||||||
| Others |
163 | 4 | 676 | 679 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 91,141 | $ | 85,814 | $ | 272,678 | $ | 252,274 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
- 51 -
| e. | Impairment loss (reversal of impairment loss) |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Contract assets |
$ | 2,759 | $ | (482 | ) | $ | 3,171 | $ | 1,752 | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Trade notes and accounts receivable |
$ | 104,313 | $ | (6,501 | ) | $ | 158,432 | $ | 76,101 | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other receivables |
$ | 5,457 | $ | 2,598 | $ | (672 | ) | $ | (2,297 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Inventories |
$ | 40,648 | $ | 27,565 | $ | 54,684 | $ | 63,286 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| f. | Depreciation and amortization expenses |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Property, plant and equipment |
$ | 7,250,699 | $ | 7,148,174 | $ | 21,778,266 | $ | 21,509,129 | ||||||||
| Right-of-use assets |
1,080,032 | 1,048,570 | 3,238,165 | 3,115,546 | ||||||||||||
| Investment properties |
11,272 | 11,212 | 33,730 | 33,531 | ||||||||||||
| Intangible assets |
1,666,854 | 1,676,163 | 5,002,602 | 5,021,075 | ||||||||||||
| Incremental costs of obtaining contracts |
237,556 | 234,292 | 709,247 | 670,972 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total depreciation and amortization expenses |
$ | 10,246,413 | $ | 10,118,411 | $ | 30,762,010 | $ | 30,350,253 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Depreciation expenses summarized by functions |
||||||||||||||||
| Operating costs |
$ | 7,798,382 | $ | 7,668,878 | $ | 23,407,279 | $ | 23,056,260 | ||||||||
| Operating expenses |
543,621 | 539,078 | 1,642,882 | 1,601,946 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 8,342,003 | $ | 8,207,956 | $ | 25,050,161 | $ | 24,658,206 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Amortization expenses summarized by functions |
||||||||||||||||
| Operating costs |
$ | 1,859,688 | $ | 1,860,173 | $ | 5,578,542 | $ | 5,545,850 | ||||||||
| Marketing expenses |
24,065 | 24,236 | 71,176 | 67,002 | ||||||||||||
| General and administrative expenses |
15,041 | 16,216 | 40,825 | 47,404 | ||||||||||||
| Research and development expenses |
5,616 | 9,830 | 21,306 | 31,791 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 1,904,410 | $ | 1,910,455 | $ | 5,711,849 | $ | 5,692,047 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
- 52 -
| g. | Employee benefit expenses |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Post-employment benefit |
||||||||||||||||
| Defined contribution plans |
$ | 305,377 | $ | 270,872 | $ | 897,824 | $ | 790,731 | ||||||||
| Defined benefit plans |
165,828 | 208,861 | 497,552 | 626,170 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 471,205 | 479,733 | 1,395,376 | 1,416,901 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Share-based payment |
||||||||||||||||
| Equity-settled share—based payment |
1,395 | 2,153 | 3,721 | 6,782 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other employee benefit (Note) |
12,282,321 | 11,772,188 | 36,648,142 | 34,860,996 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total employee benefit expenses |
$ | 12,754,921 | $ | 12,254,074 | $ | 38,047,239 | $ | 36,284,679 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Summary by functions |
||||||||||||||||
| Operating costs |
$ | 5,886,456 | $ | 5,709,537 | $ | 17,620,090 | $ | 16,927,710 | ||||||||
| Operating expenses |
6,868,465 | 6,544,537 | 20,427,149 | 19,356,969 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 12,754,921 | $ | 12,254,074 | $ | 38,047,239 | $ | 36,284,679 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Note: Other | employee benefit mainly includes salaries, compensation and labor and health insurance expenses, etc. |
According to the amendments to the Chunghwa’s Articles of Incorporation approved by the Chunghwa’s stockholders in their meeting on May 31, 2024, the distribution rate of employees’ compensation increased from 1.7% to 4.3% of pre-tax income to 2% to 5% of pre-tax income, while the distribution rate of directors’ remuneration remained at no more than 0.17%. According to the amendments to the Chunghwa’s Articles of Incorporation approved by the Chunghwa’s stockholders in their meeting on May 29, 2025, no less than 20% of the total employees’ compensation shall be distributed to non-executive employees.
If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the difference is recorded as a change in accounting estimate.
The compensation to the employees and remuneration to the directors of 2024 and 2023 approved by the Board of Directors on February 26, 2025 and February 23, 2024, respectively, were as follows:
| Cash | ||||||||
| 2024 | 2023 | |||||||
| Compensation distributed to the employees |
$ | 1,931,610 | $ | 1,522,481 | ||||
| Remuneration paid to the directors |
40,440 | 39,797 | ||||||
There was no difference between the initial accrued amounts recognized in 2024 and 2023 and the amounts approved by the Board of Directors in 2025 and 2024 of the aforementioned compensation to employees and the remuneration to directors.
Information of the appropriation of Chunghwa’s employees compensation and remuneration to directors and those approved by the Board of Directors is available on the Market Observation Post System website.
- 53 -
| 32. | INCOME TAX |
| a. | Income tax recognized in profit or loss |
The major components of income tax expense were as follows:
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Current tax |
||||||||||||||||
| Current tax expenses recognized for the period |
$ | 2,356,279 | $ | 2,217,676 | $ | 7,413,607 | $ | 6,832,853 | ||||||||
| Income tax on unappropriated earnings |
— | 20 | 19,042 | 5,620 | ||||||||||||
| Income tax adjustments on prior years |
4,685 | (49,765 | ) | (19,762 | ) | (200,118 | ) | |||||||||
| Others |
3,691 | 3,549 | 3,879 | 3,518 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 2,364,655 | 2,171,480 | 7,416,766 | 6,641,873 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Deferred tax |
||||||||||||||||
| Deferred tax expenses recognized for the period |
38,570 | 31,586 | 15,229 | 184,245 | ||||||||||||
| Income tax adjustments on prior years |
— | 750 | 61 | (3,225 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 38,570 | 32,336 | 15,290 | 181,020 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income tax recognized in profit or loss |
$ | 2,403,225 | $ | 2,203,816 | $ | 7,432,056 | $ | 6,822,893 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
The applicable tax rate used by the entities subject to the Income Tax Act of the Republic of China is 20%. Tax rates used by other entities of the Company operating in other jurisdictions are based on the tax laws in those jurisdictions.
| b. | Income tax examinations |
Income tax returns of Chunghwa and HHI have been examined by the tax authorities through 2022. Income tax returns of SENAO, Youth, ISPOT, Aval, Wiin, SENYOUNG, CHYP, CHSI, LED, SHE, CHIEF, Unigate, CHI, CHPT, NavCore, TestPro, SFD, CLPT, CHTSC, IISI and UTC have been examined by the tax authorities through 2023.
| c. | Pillar Two Model Rules |
The application of the Pillar Two rules does not have a material impact on the Company’s consolidated financial statements. The Company will continue to review the possible impact on the Company’s future financial performance.
- 54 -
| 33. | EARNINGS PER SHARE (“EPS”) |
Net income and weighted average number of common stocks used in the calculation of earnings per share were as follows:
Net Income
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net income used to compute the basic earnings per share |
||||||||||||||||
| Net income attributable to the parent |
$ | 9,440,098 | $ | 9,005,006 | $ | 29,406,456 | $ | 28,216,292 | ||||||||
| Assumed conversion of all dilutive potential common stocks |
||||||||||||||||
| Employee stock options and employee compensation of subsidiaries |
(421 | ) | (294 | ) | (2,783 | ) | (1,713 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income used to compute the diluted earnings per share |
$ | 9,439,677 | $ | 9,004,712 | $ | 29,403,673 | $ | 28,214,579 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Weighted Average Number of Common Stocks
(Thousand Shares)
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Weighted average number of common stocks used to compute the basic earnings per share |
7,757,447 | 7,757,447 | 7,757,447 | 7,757,447 | ||||||||||||
| Assumed conversion of all dilutive potential common stocks |
||||||||||||||||
| Employee compensation |
3,863 | 3,716 | 14,586 | 13,915 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average number of common stocks used to compute the diluted earnings per share |
7,761,310 | 7,761,163 | 7,772,033 | 7,771,362 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
As Chunghwa may settle the employee compensation in shares or cash, Chunghwa shall presume that it will be settled in shares and take those shares into consideration when calculating the weighted average number of outstanding shares used in the calculation of diluted EPS if the shares have a dilutive effect. The dilutive effect of the shares needs to be considered until the approval of the number of shares to be distributed to employees as compensation in the following year.
- 55 -
| 34. | SHARE-BASED PAYMENT ARRANGEMENT |
| a. | CHIEF share-based compensation plan (“CHIEF Plan”) described as follows: |
The Board of Directors of CHIEF resolved to issue 200 stock options on November 13, 2020. Each option is eligible to subscribe for one thousand common stocks when exercisable and the exercise price is $206.00 per share. The options are granted to specific employees that meet the vesting conditions. The CHIEF Plan has an exercise price adjustment formula upon the changes in common stocks or distribution of cash dividends. The options of the CHIEF Plan are valid for five years and the graded vesting schedule will vest two years after the grant date.
CHIEF did not recognize any compensation costs for stock options for the nine months ended September 30, 2025. The compensation costs for stock options for the three months and nine months ended September 30, 2024 were $816 thousand and $2,448 thousand, respectively.
CHIEF modified the plan terms of stock options granted on November 13, 2020 in July 2024; therefore, the exercise price changed from $171.70 to $166.50 per share. The modification did not cause any incremental fair value granted.
Information about CHIEF’s outstanding stock options for the nine months ended September 30, 2025 and 2024 was as follows:
| Nine Months Ended September 30, 2025 |
Nine Months Ended September 30, 2024 |
|||||||||||||||
| Granted on November 13, 2020 |
Granted on November 13, 2020 |
|||||||||||||||
| Number of Options |
Weighted Average Exercise Price (NT$) |
Number of Options |
Weighted Average Exercise Price (NT$) |
|||||||||||||
| Employee stock options |
||||||||||||||||
| Options outstanding at beginning of the period |
7 | $ | 166.50 | 93 | $ | 171.70 | ||||||||||
| Options exercised |
(7 | ) | 166.50 | — | — | |||||||||||
|
|
|
|
|
|||||||||||||
| Options outstanding at end of the period |
— | — | 93 | 166.50 | ||||||||||||
|
|
|
|
|
|||||||||||||
| Options exercisable at end of the period |
— | — | — | — | ||||||||||||
|
|
|
|
|
|||||||||||||
| Weighted average remaining contractual life (years) |
— | 1.12 | ||||||||||||||
- 56 -
CHIEF used the fair value method to evaluate the options using the Black-Scholes model and binomial option pricing model and the related assumptions and the fair value of the options were as follows:
| Stock Options Granted on November 13, 2020 |
||||
| Grant-date share price (NT$) |
$ | 356.00 | ||
| Exercise price (NT$) |
$ | 206.00 | ||
| Dividend yield |
— | |||
| Risk-free interest rate |
0.18 | % | ||
| Expected life |
5 years | |||
| Expected volatility |
34.61 | % | ||
| Weighted average fair value of grants (NT$) |
$ | 173,893 | ||
The expected volatility for the options granted in 2020 was based on CHIEF’s average annualized historical share price volatility from June 5, 2018, CHIEF’s listing date on Taipei Exchange, to the grant date.
| b. | New shares reserved for subscription by employees under capital increase of CHTSC |
On June 25, 2025, the Board of Directors of CHTSC approved the capital increase to issue 3,683 thousand shares and simultaneously reserved 552 thousand shares, representing 15% of the total issuance, for subscription by employees. Furthermore, when the employees did not fully subscribe or discarded their rights to subscribe shares, the Board of Directors of CHTSC authorized the chairman of the Board of Directors to contact specific people or group to subscribe.
The aforementioned options granted to employees are accounted for and measured at fair value of the grant date in accordance with IFRS 2 “Share-based Payment”. The fair value of CHTSC’s options granted to employees was $1.03 per share. The compensation costs for stock options for the three months and nine months ended September 30, 2025 were both $569 thousand.
CHTSC used the fair value method to evaluate the options granted to employees on August 20, 2025 using the Black-Scholes model and the related assumptions and the fair value of the options were as follows:
| Stock Options Granted on August 20, 2025 |
||||
| Grant-date share price (NT$) |
$ | 216.96 | ||
| Exercise price (NT$) |
$ | 238.00 | ||
| Dividend yield |
— | |||
| Risk-free interest rate |
0.97 | % | ||
| Expected life |
0.038 years | |||
| Expected volatility |
39.95 | % | ||
| Weighted average fair value of grants (NT$) |
$ | 1.03 | ||
Expected volatility was based on the average annualized historical share price volatility of CHTSC’s comparable companies before the grant date.
- 57 -
| c. | CHTSC share-based compensation plan (“CHTSC Plan”) described as follows: |
The Board of Directors of CHTSC resolved to issue 4,500 and 3,500 stock options on December 20, 2019 and February 20, 2021, respectively. Each option is eligible to subscribe for one thousand common stocks when exercisable and the exercise prices are both $19.085 per share. The options are granted to specific employees that meet the vesting conditions. The CHTSC Plan has an exercise price adjustment formula upon the changes in common stocks. The options of the CHTSC Plan are valid for five years and the graded vesting schedule will vest one year after the grant date.
CHTSC did not recognize any compensation costs for stock options for the three months ended September 30, 2025. The compensation costs for stock options for the three months ended September 30, 2024 were $194 thousand. The compensation costs for stock options for the nine months ended June 30, 2025 and 2024 were $89 thousand and $583 thousand, respectively.
Information about CHTSC’s outstanding stock options for the nine months ended September 30, 2025 and 2024 was as follows:
| Nine Months Ended September 30, 2025 | ||||||||
| Granted on February 20, 2021 |
||||||||
| Number of Options |
Weighted Exercise Price (NT$) |
|||||||
| Employee stock options |
||||||||
| Options outstanding at beginning of the period |
655 | $ | 19.085 | |||||
| Options exercised |
(649 | ) | 19.085 | |||||
|
|
|
|||||||
| Options outstanding at end of the period |
6 | 19.085 | ||||||
|
|
|
|||||||
| Options exercisable at end of the period |
2 | 19.085 | ||||||
|
|
|
|||||||
| Weighted average remaining contractual life (years) |
0.39 | |||||||
| Nine Months Ended September 30, 2024 | ||||||||||||||||
| Granted on February 20, 2021 |
Granted on December 20, 2019 |
|||||||||||||||
| Number of Options |
Weighted Average Exercise Price (NT$) |
Number of Options |
Weighted Average Exercise Price (NT$) |
|||||||||||||
| Employee stock options |
||||||||||||||||
| Options outstanding at beginning of the period |
1,519 | $ | 19.085 | 40 | $ | 19.085 | ||||||||||
| Options exercised |
(694 | ) | 19.085 | (5 | ) | 19.085 | ||||||||||
| Options forfeited |
(165 | ) | — | (5 | ) | — | ||||||||||
|
|
|
|
|
|||||||||||||
| Options outstanding at end of the period |
660 | 19.085 | 30 | 19.085 | ||||||||||||
|
|
|
|
|
|||||||||||||
| Options exercisable at end of the period |
10 | 19.085 | 15 | 19.085 | ||||||||||||
|
|
|
|
|
|||||||||||||
| Weighted average remaining contractual life (years) |
1.39 | 0.22 | ||||||||||||||
- 58 -
CHTSC used the fair value method to evaluate the options using the Black-Scholes model and the related assumptions and the fair value of the options were as follows:
| Stock Options Granted on Ferbuary 20, 2021 |
Stock Options Granted on December 20, 2019 |
|||||||
| Grant-date share price (NT$) |
$ | 23.76 | $ | 20.17 | ||||
| Exercise price (NT$) |
$ | 19.085 | $ | 19.085 | ||||
| Dividend yield |
15.18 | % | 12.49 | % | ||||
| Risk-free interest rate |
0.25 | % | 0.54 | % | ||||
| Expected life |
5 years | 5 years | ||||||
| Expected volatility |
47.35 | % | 42.41 | % | ||||
| Weighted average fair value of grants (NT$) |
$ | 3,350 | $ | 2,470 | ||||
Expected volatility was based on the average annualized historical share price volatility of CHTSC’s comparable companies before the grant date.
| d. | CLPT share-based compensation plan (“CLPT Plan”) described as follows: |
The Board of Directors of CLPT resolved to issue 690, 600 and 755 stock options on February 26, 2021, May 31, 2022 and September 26, 2023, respectively. Each option is eligible to subscribe for one thousand common stocks when exercisable and the exercise prices are all $16.87 per share. The options are granted to specific employees that meet the vesting conditions. The CLPT Plan has an exercise price adjustment formula upon the changes in common stocks or distribution of cash dividends. The options of the CLPT Plan are valid for four years and the graded vesting schedule will vest two years after the grant date.
The compensation costs for stock options for the three months ended September 30, 2025 and 2024 were $826 thousand and $1,143 thousand, respectively. The compensation costs for stock options for the nine months ended September 30, 2025 and 2024 were $3,063 thousand and $3,751 thousand, respectively.
- 59 -
CLPT modified the plan terms of stock options granted on September 26, 2023 in October 2024; therefore, the exercise price changed from $15.30 to $14.10 per share. The modification did not cause any incremental fair value granted.
CLPT modified the plan terms of stock options granted on May 31, 2022 in October 2024; therefore, the exercise price changed from $15.30 to $14.10 per share. The modification did not cause any incremental fair value granted.
CLPT modified the plan terms of stock options granted on February 26, 2021 in October 2024; therefore, the exercise price changed from $14.40 to $13.30 per share. The modification did not cause any incremental fair value granted.
Information about CLPT’s outstanding stock options for the nine months ended September 30, 2025 and 2024 was as follows:
| Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||
| Granted on September 26, 2023 |
Granted on May 31, 2022 |
Granted on February 26, 2021 |
||||||||||||||||||||||
| Number of Options |
Weighted Average Exercise Price (NT$) |
Number of Options |
Weighted Average Exercise Price (NT$) |
Number of Options |
Weighted Average Exercise Price (NT$) |
|||||||||||||||||||
| Employee stock options |
||||||||||||||||||||||||
| Options outstanding at beginning of the period |
750 | $ | 14.10 | 220 | $ | 14.10 | 25 | $ | 13.30 | |||||||||||||||
| Options forfeited |
— | — | — | — | (25 | ) | — | |||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Options outstanding at end of the period |
750 | 14.10 | 220 | 14.10 | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Options exercisable at end of the period |
375 | 14.10 | 220 | 14.10 | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Weighted average remaining contractual life (years) |
1.99 | 0.67 | — | |||||||||||||||||||||
| Nine Months Ended September 30, 2024 | ||||||||||||||||||||||||
| Granted on September 26, 2023 |
Granted on May 31, 2022 |
Granted on February 26, 2021 |
||||||||||||||||||||||
| Number of Options |
Weighted Average Exercise Price (NT$) |
Number of Options |
Weighted Average Exercise Price (NT$) |
Number of Options |
Weighted Average Exercise Price (NT$) |
|||||||||||||||||||
| Employee stock options |
||||||||||||||||||||||||
| Options outstanding at beginning of the period |
755 | $ | 15.30 | 440 | $ | 15.30 | 440 | $ | 14.40 | |||||||||||||||
| Options exercised |
— | — | (220 | ) | 15.30 | (415 | ) | 14.40 | ||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Options outstanding at end of the period |
755 | 15.30 | 220 | 15.30 | 25 | 14.40 | ||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Options exercisable at end of the period |
— | — | — | — | 25 | 14.40 | ||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||
| Weighted average remaining contractual life (years) |
2.99 | 1.67 | 0.41 | |||||||||||||||||||||
- 60 -
CLPT used the fair value method to evaluate the options using the Black-Scholes model and the related assumptions and the fair value of the options were as follows:
| Stock Options Granted on September 26, 2023 |
Stock Options 2022 |
Stock Options Granted on February 26, 2021 |
||||||||||
| Grant-date share price (NT$) |
$ | 28.43 | $ | 18.66 | $ | 17.63 | ||||||
| Exercise price (NT$) |
$ | 16.87 | $ | 16.87 | $ | 16.87 | ||||||
| Dividend yield |
— | — | — | |||||||||
| Risk-free interest rate |
1.10 | % | 0.98 | % | 0.31 | % | ||||||
| Expected life |
4 years | 4 years | 4 years | |||||||||
| Expected volatility |
31.99 | % | 35.76 | % | 35.22 | % | ||||||
| Weighted average fair value of grants (NT$) |
$ | 13,225 | $ | 5,665 | $ | 4,750 | ||||||
Expected volatility was based on the average annualized historical share price volatility of CLPT’s comparable companies before the grant date.
| 35. | CASH FLOW INFORMATION |
Except for those disclosed in other notes, the Company entered into the following non-cash investing and financing activities:
| Investing activities | Nine Months Ended September 30 |
|||||||
| 2025 | 2024 | |||||||
| Additions of property, plant and equipment |
$ | 15,781,057 | $ | 14,115,209 | ||||
| Changes in other payables |
1,519,581 | 1,900,358 | ||||||
|
|
|
|
|
|||||
| Payments for acquisition of property, plant and equipment |
$ | 17,300,638 | $ | 16,015,567 | ||||
|
|
|
|
|
|||||
Financing Activities
| Balance on January 1, 2025 |
Cash Flows from Activities |
Changes in Non-Cash Transactions |
Cash Flows from Operating |
Balance on September 30, 2025 |
||||||||||||||||||||
| New Leases | Others | Interest Paid | ||||||||||||||||||||||
| Lease liabilities |
$ | 10,891,377 | $ | (3,156,992 | ) | $ | 3,622,272 | $ | (205,072 | ) | $ | (114,848 | ) | $ | 11,036,737 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Balance on January 1, 2024 |
Cash Flows from Activities |
Changes in Non-Cash Transactions |
Cash Flows from Operating |
Balance on September 30, 2024 |
||||||||||||||||||||
| New Leases | Others | Interest Paid | ||||||||||||||||||||||
| Lease liabilities |
$ | 10,975,181 | $ | (2,923,928 | ) | $ | 3,068,649 | $ | (29,708 | ) | $ | (94,132 | ) | $ | 10,996,062 | |||||||||
|
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|
|||||||||||||
- 61 -
| 36. | CAPITAL MANAGEMENT |
The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.
The capital structure of the Company consists of debt of the Company and the equity attributable to the parent.
Some consolidated entities are required to maintain minimum paid-in capital amount as prescribed by the applicable laws.
The management reviews the capital structure of the Company as needed. As part of this review, the management considers the cost of capital and the risks associated with each class of capital. According to the management’s suggestions, the Company maintains a balanced capital structure through paying cash dividends, increasing its share capital, purchasing outstanding shares, and issuing new debt or repaying debt.
| 37. | FINANCIAL INSTRUMENTS |
Fair Value Information
The fair value measurement guidance establishes a framework for measuring fair value and expands disclosure about fair value measurements. The standard describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. These levels are:
Level 1 fair value measurements: These measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 fair value measurements: These measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 fair value measurements: These measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).
| a. | Financial instruments that are not measured at fair value but for which fair value is disclosed |
Except those listed in the table below, the Company considers that the carrying amounts of financial assets and liabilities not measured at fair value approximate their fair values.
| September 30, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||||||||||||
| Carrying Value | Fair Value | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
| Financial assets |
||||||||||||||||||||||||
| Financial assets at amortized cost |
||||||||||||||||||||||||
| Corporate bonds |
$ | 2,000,000 | $ | 2,023,316 | $ | 2,000,000 | $ | 2,002,268 | $ | — | $ | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Financial liabilities |
||||||||||||||||||||||||
| Financial liabilities at amortized cost |
||||||||||||||||||||||||
| Bonds payable |
$ | 25,187,086 | $ | 25,195,428 | $ | 30,488,206 | $ | 30,485,103 | $ | 30,486,867 | $ | 30,480,904 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
The fair value of bonds is measured using Level 2 inputs. The valuation of fair value is based on the quoted market prices provided by third party pricing services.
- 62 -
| b. | Financial instruments that are measured at fair value on a recurring basis |
September 30, 2025
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Financial assets at FVTPL |
||||||||||||||||
| Derivatives |
$ | — | $ | 1,482 | $ | — | $ | 1,482 | ||||||||
| Non-listed stocks |
— | — | 662,059 | 662,059 | ||||||||||||
| Limited partnership |
— | — | 496,374 | 496,374 | ||||||||||||
| Other investing agreements |
— | — | 63,207 | 63,207 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | — | $ | 1,482 | $ | 1,221,640 | $ | 1,223,122 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Financial assets at FVOCI |
||||||||||||||||
| Listed and emerging stocks |
$ | 102,198 | $ | — | $ | — | $ | 102,198 | ||||||||
| Non-listed stocks |
— | — | 5,580,364 | 5,580,364 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 102,198 | $ | — | $ | 5,580,364 | $ | 5,682,562 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Hedging financial assets |
$ | — | $ | 6,275 | $ | — | $ | 6,275 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Financial liabilities at FVTPL |
||||||||||||||||
| Derivatives |
$ | — | $ | 68 | $ | — | $ | 68 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2024
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Financial assets at FVTPL |
||||||||||||||||
| Derivatives |
$ | — | $ | 290 | $ | — | $ | 290 | ||||||||
| Non-listed stocks |
— | — | 661,152 | 661,152 | ||||||||||||
| Limited partnership |
— | — | 307,327 | 307,327 | ||||||||||||
| Other investing agreements |
— | — | 36,757 | 36,757 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | — | $ | 290 | $ | 1,005,236 | $ | 1,005,526 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Financial assets at FVOCI |
||||||||||||||||
| Listed and emerging stocks |
$ | 126,013 | $ | — | $ | — | $ | 126,013 | ||||||||
| Non-listed stocks |
— | — | 4,540,963 | 4,540,963 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 126,013 | $ | — | $ | 4,540,963 | $ | 4,666,976 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Hedging financial assets |
$ | — | $ | 1,133 | $ | — | $ | 1,133 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Hedging financial liabilities |
$ | — | $ | 1,907 | $ | — | $ | 1,907 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
- 63 -
September 30, 2024
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Financial assets at FVTPL |
||||||||||||||||
| Derivatives |
$ | — | $ | 65 | $ | — | $ | 65 | ||||||||
| Listed stocks |
452 | — | — | 452 | ||||||||||||
| Non-listed stocks |
— | — | 685,619 | 685,619 | ||||||||||||
| Limited partnership |
— | — | 308,063 | 308,063 | ||||||||||||
| Other investing agreements |
— | — | 39,137 | 39,137 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 452 | $ | 65 | $ | 1,032,819 | $ | 1,033,336 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Financial assets at FVOCI |
||||||||||||||||
| Listed and emerging stocks |
$ | 208,063 | $ | — | $ | — | $ | 208,063 | ||||||||
| Non-listed stocks |
— | — | 4,600,209 | 4,600,209 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 208,063 | $ | — | $ | 4,600,209 | $ | 4,808,272 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Financial liabilities at FVTPL |
||||||||||||||||
| Derivatives |
$ | — | $ | 1,080 | $ | — | $ | 1,080 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Hedging financial liabilities |
$ | — | $ | 662 | $ | — | $ | 662 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
There were no transfers between Levels 1 and 2 for the nine months ended September 30, 2025 and 2024.
The reconciliations for financial assets measured at Level 3 were listed below:
Nine months ended September 30, 2025
| Financial Assets | Measured at Fair Value through Profit or Loss |
Measured at Fair Value through Other Comprehensive Income |
Total | |||||||||
| Balance on January 1, 2025 |
$ | 1,005,236 | $ | 4,540,963 | $ | 5,546,199 | ||||||
| Acquisition |
296,841 | 262,120 | 558,961 | |||||||||
| Recognized in profit or loss under “Other gains and losses” |
(76,406 | ) | — | (76,406 | ) | |||||||
| Recognized in other comprehensive income under “Unrealized gain or loss on financial assets at fair value through other comprehensive income” |
— | 777,281 | 777,281 | |||||||||
| Proceeds from profit distribution of the investees |
(4,031 | ) | — | (4,031 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Balance on September 30, 2025 |
$ | 1,221,640 | $ | 5,580,364 | $ | 6,802,004 | ||||||
|
|
|
|
|
|
|
|||||||
| Unrealized gain or loss for the nine months ended September 30, 2025 |
$ | (76,406 | ) | |||||||||
|
|
|
|||||||||||
- 64 -
Nine months ended September 30, 2024
| Financial Assets | Measured at Fair Value through Profit or Loss |
Measured at Fair Value through Other Comprehensive Income |
Total | |||||||||
| Balance on January 1, 2024 |
$ | 1,035,701 | $ | 4,168,694 | $ | 5,204,395 | ||||||
| Acquisition |
124,623 | 312,780 | 437,403 | |||||||||
| Recognized in profit or loss under “Other gains and losses” |
(124,059 | ) | — | (124,059 | ) | |||||||
| Recognized in other comprehensive income under “Unrealized gain or loss on financial assets at fair value through other comprehensive income” |
— | 121,840 | 121,840 | |||||||||
| Proceeds from capital reduction of the investees and profit distribution |
(3,446 | ) | (3,105 | ) | (6,551 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Balance on September 30, 2024 |
$ | 1,032,819 | $ | 4,600,209 | $ | 5,633,028 | ||||||
|
|
|
|
|
|
|
|||||||
| Unrealized gain or loss for the nine months ended September 30, 2024 |
$ | (124,059 | ) | |||||||||
|
|
|
|||||||||||
The fair values of financial assets and financial liabilities of Level 2 are determined as follows:
| 1) | The fair values of financial assets and financial liabilities with standard terms and conditions and traded in active markets are determined with reference to quoted market prices. |
| 2) | For derivatives, fair values are estimated using discounted cash flow model. Future cash flows are estimated based on observable inputs including forward exchange rates at the end of the reporting periods and the forward and spot exchange rates stated in the contracts, discounted at a rate that reflects the credit risk of various counterparties. |
The fair values of non-listed domestic and foreign equity investments and other investing agreements were Level 3 financial assets and determined using the market approach by reference the Price-to-Book ratios (P/B ratios) of peer companies that traded in active markets, using the income approach, in which the discounted cash flow is used to capture the present value of the expected future economic benefits to be derived from the investments, or using assets approach. The significant unobservable inputs used were listed in the below table. An increase in growth rate of long-term revenue, a decrease in discount for the lack of marketability or noncontrolling interests discount, or a decrease in the discount rate would result in increases in the fair values.
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 | ||||
| Discount for lack of marketability |
10.00%~30.00% | 20.00%~30.00% | 13.84%~20.00% | |||
| Noncontrolling interests discount |
10.00%~29.04% | 15.00%~29.04% | 15.00%~25.00% | |||
| Growth rate of long-term revenue |
1.33% | 0.12% | 0.12% | |||
| Discount rate |
7.94%~10.80% | 8.32%~14.40% | 8.18%~14.00% |
- 65 -
If the inputs to the valuation model were changed to reflect reasonably possible alternative assumptions while all the other variables were held constant, the fair values of Level 3 financial assets would increase (decrease) as below table.
| September 30, 2025 |
September 30, 2024 |
|||||||
| Discount for lack of marketability |
||||||||
| 5% increase |
$ | (65,808 | ) | $ | (64,782 | ) | ||
|
|
|
|
|
|||||
| 5% decrease |
$ | 65,808 | $ | 64,782 | ||||
|
|
|
|
|
|||||
| Noncontrolling interests discount |
||||||||
| 5% increase |
$ | (55,184 | ) | $ | (50,981 | ) | ||
|
|
|
|
|
|||||
| 5% decrease |
$ | 55,184 | $ | 50,981 | ||||
|
|
|
|
|
|||||
| Growth rate of long-term revenue |
||||||||
| 0.1% increase |
$ | 42,010 | $ | 31,620 | ||||
|
|
|
|
|
|||||
| 0.1% decrease |
$ | (41,234 | ) | $ | (31,060 | ) | ||
|
|
|
|
|
|||||
| Discount rate |
||||||||
| 1% increase |
$ | (482,569 | ) | $ | (372,711 | ) | ||
|
|
|
|
|
|||||
| 1% decrease |
$ | 592,812 | $ | 452,054 | ||||
|
|
|
|
|
|||||
Categories of Financial Instruments
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Financial assets |
||||||||||||
| Measured at FVTPL |
||||||||||||
| Mandatorily measured at FVTPL |
$ | 1,223,122 | $ | 1,005,526 | $ | 1,033,336 | ||||||
| Hedging financial assets |
6,275 | 1,133 | — | |||||||||
| Financial assets at amortized cost (Note a) |
72,679,884 | 91,048,373 | 72,178,136 | |||||||||
| Financial assets at FVOCI |
5,682,562 | 4,666,976 | 4,808,272 | |||||||||
| Financial liabilities |
||||||||||||
| Measured at FVTPL |
||||||||||||
| Held for trading |
$ | 68 | $ | — | $ | 1,080 | ||||||
| Hedging financial liabilities |
— | 1,907 | 662 | |||||||||
| Financial liabilities at amortized cost (Note b) |
58,297,294 | 69,231,194 | 61,684,647 | |||||||||
| Note a: | The balances included cash and cash equivalents, trade notes and accounts receivable, receivables from related parties, other current monetary assets, financial assets at amortized cost and refundable deposits (classified as other noncurrent assets). | |
| Note b: | The balances included short-term loans, trade notes and accounts payable, payables to related parties, partial other payables, customers’ deposits, bonds payable (including the current portion) and long-term loans (including the current portion). | |
Financial Risk Management Objectives
The main financial instruments of the Company include investments in equity and debt instruments, trade notes and accounts receivable, trade notes and accounts payable, lease liabilities, loans and bonds payable. The Company’s Finance Department provides services to its business units, co-ordinates access to domestic and international capital markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk, and liquidity risk.
- 66 -
The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company’s policies approved by the Board of Directors. Those derivatives are used to hedge the risks of exchange rate fluctuation arising from operating or investment activities. Compliance with policies and risk exposure limits is reviewed by the Company’s Finance Department on a continuous basis. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
Chunghwa reports the significant risk exposures and related action plans timely and actively to the audit committee and if needed to the Board of Directors.
| a. | Market risk |
The Company is exposed to market risks of changes in foreign currency exchange rates and interest rates. The Company uses forward exchange contracts to hedge the exchange rate risk arising from assets and liabilities denominated in foreign currencies.
There were no changes to the Company’s exposure to market risks or the manner in which these risks are managed and measured.
| 1) | Foreign currency risk |
For details about the carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the balance sheet dates, please refer to Note 42 Significant Assets and Liabilities Denominated in Foreign Currencies.
The carrying amounts of the Company’s derivatives with exchange rate risk exposures at the balance sheet dates were as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Assets |
||||||||||||
| USD |
$ | 1,482 | $ | 263 | $ | — | ||||||
| EUR |
6,275 | 1,160 | 65 | |||||||||
| Liabilities |
||||||||||||
| USD |
68 | — | 951 | |||||||||
| EUR |
— | 1,907 | 791 | |||||||||
Foreign currency sensitivity analysis
The Company is mainly exposed to the fluctuations of the currencies USD, EUR, SGD and RMB.
The following table details the Company’s sensitivity to a 5% increase and decrease in the functional currency against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible changes in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and forward exchange contracts. A positive number below indicates an increase in pre-tax profit or equity where the functional currency weakens 5% against the relevant currency.
- 67 -
| Nine Months Ended September 30 | ||||||||
| 2025 | 2024 | |||||||
| Profit or loss |
||||||||
| Monetary assets and liabilities (a) |
||||||||
| USD |
$ | 89,374 | $ | 50,461 | ||||
| EUR |
(41,192 | ) | (44,363 | ) | ||||
| SGD |
(18,979 | ) | (37,515 | ) | ||||
| RMB |
1,173 | 8,389 | ||||||
| Derivatives (b) |
||||||||
| USD |
7,989 | 3,552 | ||||||
| EUR |
— | 3,538 | ||||||
| Equity |
||||||||
| Derivatives (c) |
||||||||
| EUR |
15,202 | 7,076 | ||||||
| a) | This is mainly attributable to the exposure to foreign currency denominated receivables and payables of the Company outstanding at the balance sheet dates. |
| b) | This is mainly attributable to forward exchange contracts. |
| c) | This is mainly attributable to the changes in the fair value of derivatives that are designated as cash flow hedges. |
For a 5% strengthening of the functional currency against the relevant currencies, there would be an equal and opposite effect on the pre-tax profit or equity for the amounts shown above.
| 2) | Interest rate risk |
The carrying amounts of the Company’s exposures to interest rates on financial assets and financial liabilities at the balance sheet dates were as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Fair value interest rate risk |
||||||||||||
| Financial assets |
$ | 25,205,797 | $ | 47,562,672 | $ | 33,406,988 | ||||||
| Financial liabilities |
36,223,823 | 41,444,583 | 41,547,929 | |||||||||
| Cash flow interest rate risk |
||||||||||||
| Financial assets |
14,739,532 | 12,949,846 | 10,667,961 | |||||||||
| Financial liabilities |
2,355,000 | 1,785,000 | 1,965,000 | |||||||||
Interest rate sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments at the end of the reporting period. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.
If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Company’s pre-tax income would increase/decrease by $30,961 thousand and $21,757 thousand for the nine months ended September 30, 2025 and 2024 respectively. This is mainly attributable to the Company’s exposure to floating interest rates on its financial assets, short-term and long-term loans.
- 68 -
| 3) | Other price risk |
The Company is exposed to equity price risks arising from holding other company’s equity. Equity investments are held for strategic rather than trading purposes. The management managed the risk through holding various risk portfolios. Further, the Company assigned finance and investment departments to monitor the price risk.
Equity price sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to equity price risks at the end of the reporting period.
If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income would have increased/decreased by $57,922 thousand and $284,128 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the nine months ended September 30, 2025. If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income would have increased/decreased by $49,707 thousand and $240,414 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the nine months ended September 30, 2024.
| b. | Credit risk |
Credit risk refers to the risk that a counterparty would default on its contractual obligations resulting in financial loss to the Company. The maximum credit exposure of the aforementioned financial instruments is equal to their carrying amounts recognized in the consolidated balance sheet as of the balance sheet date.
The Company has large trade receivables outstanding with its customers. A substantial majority of the Company’s outstanding trade receivables are not covered by collateral or credit insurance. The Company has implemented ongoing measures including enhancing credit assessments and strengthening overall risk management to reduce its credit risk. While the Company has procedures to monitor and limit exposure to credit risk on trade receivables, there can be no assurance such procedures will effectively limit its credit risk and avoid losses. This risk is heightened during periods when economic conditions worsen. As the Company serves a large number of unrelated consumers, the concentration of credit risk was limited.
The Company mitigates its financial credit risk by selecting counterparties with investment grade credit ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors and reviews market conditions, and adjusts the limit applied to counterparties according to their credit standing.
In accordance with the Company’s investment and risk management policies, counterparties for debt investments must be financial institutions with investment grade or higher, and thus there is no significant credit exposure resulting from such investments. The Company assesses whether there has been a significant increase in credit risk on debt instruments since initial recognition by reviewing changes in financial market conditions, and external credit ratings and material information of the issuers.
The Company assesses the 12-month expected credit loss and lifetime expected credit loss for debt instruments based on the probability of default and loss given default provided by external credit rating agencies.
- 69 -
| c. | Liquidity risk |
The Company manages and maintains sufficient cash and cash equivalent position to support the operations and reduce the impact on fluctuation of cash flow.
| 1) | Liquidity and interest risk tables |
The following tables detailed the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company is required to pay.
September 30, 2025
| Weighted Average Effective Interest Rate (%) |
Less than 1 Month |
1-3 Months | 3 Months to 1 Year |
1-5 Years | More than 5 Years |
Total | ||||||||||||||||||||||
| Non-derivative financial liabilities |
||||||||||||||||||||||||||||
| Non-interest bearing |
— | $ | 34,516,586 | $ | — | $ | 2,089,605 | $ | 5,226,712 | $ | — | $ | 41,832,903 | |||||||||||||||
| Floating interest rate instruments |
2.07 | 339,598 | 207,106 | 248,126 | 1,633,600 | — | 2,428,430 | |||||||||||||||||||||
| Fixed interest rate instruments |
0.71 | 14,906 | 29,811 | 2,071,604 | 22,716,523 | 1,002,917 | 25,835,761 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 34,871,090 | $ | 236,917 | $ | 4,409,335 | $ | 29,576,835 | $ | 1,002,917 | $ | 70,097,094 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Information about the maturity analysis for lease liabilities was as follows:
| Less than 1 Year |
1-3 Years | 3-5 Years | More than 5 Years |
Total | ||||||||||||||||
| Lease liabilities |
$ | 3,839,145 | $ | 5,502,996 | $ | 1,804,189 | $ | 155,700 | $ | 11,302,030 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
December 31, 2024
| Weighted Average Effective Interest Rate (%) |
Less than 1 Month |
1-3 Months | 3 Months to 1 Year |
1-5 Years | More than 5 Years |
Total | ||||||||||||||||||||||
| Non-derivative financial liabilities |
||||||||||||||||||||||||||||
| Non-interest bearing |
— | $ | 42,220,071 | $ | — | $ | 2,499,932 | $ | 5,310,453 | $ | — | $ | 50,030,456 | |||||||||||||||
| Floating interest rate instruments |
2.08 | 103,653 | 5,794 | 79,384 | 1,691,150 | — | 1,879,981 | |||||||||||||||||||||
| Fixed interest rate instruments |
0.54 | 78,746 | 45,166 | 8,968,938 | 17,248,299 | 4,719,401 | 31,060,550 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 42,402,470 | $ | 50,960 | $ | 11,548,254 | $ | 24,249,902 | $ | 4,719,401 | $ | 82,970,987 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Information about the maturity analysis for lease liabilities was as follows:
| Less than 1 Year |
1-3 Years | 3-5 Years | More than 5 Years |
Total | ||||||||||||||||
| Lease liabilities |
$ | 3,586,029 | $ | 5,255,191 | $ | 2,142,230 | $ | 164,061 | $ | 11,147,511 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
- 70 -
September 30, 2024
| Weighted Average Effective Interest Rate (%) |
Less than 1 Month |
1-3 Months | 3 Months to 1 Year |
1-5 Years | More than 5 Years |
Total | ||||||||||||||||||||||
| Non-derivative financial liabilities |
||||||||||||||||||||||||||||
| Non-interest bearing |
— | $ | 32,278,644 | $ | — | $ | 1,946,960 | $ | 5,114,595 | $ | — | $ | 39,340,199 | |||||||||||||||
| Floating interest rate instruments |
2.08 | 3,922 | 6,807 | 393,121 | 1,665,920 | — | 2,069,770 | |||||||||||||||||||||
| Fixed interest rate instruments |
0.54 | 13,744 | 92,277 | 8,957,470 | 17,271,172 | 4,726,108 | 31,060,771 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 32,296,310 | $ | 99,084 | $ | 11,297,551 | $ | 24,051,687 | $ | 4,726,108 | $ | 72,470,740 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Information about the maturity analysis for lease liabilities was as follows:
| Less than 1 Year |
1-3 Years | 3-5 Years | More than 5 Years |
Total | ||||||||||||||||
| Lease liabilities |
$ | 3,561,370 | $ | 5,148,440 | $ | 2,329,210 | $ | 205,368 | $ | 11,244,388 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
The following table detailed the Company’s liquidity analysis for its derivative financial instruments. The table had been drawn up based on the undiscounted gross inflows and outflows on those derivatives that require gross settlement.
| Less than 1 Month |
1-3 Months | 3 Months to 1 Year |
1-5 Years | Total | ||||||||||||||||
| September 30, 2025 |
||||||||||||||||||||
| Gross settled |
||||||||||||||||||||
| Forward exchange contracts |
||||||||||||||||||||
| Inflow |
$ | 177,923 | $ | 303,819 | $ | — | $ | — | $ | 481,742 | ||||||||||
| Outflow |
176,509 | 297,544 | — | — | 474,053 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 1,414 | $ | 6,275 | $ | — | $ | — | $ | 7,689 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| December 31, 2024 |
||||||||||||||||||||
| Gross settled |
||||||||||||||||||||
| Forward exchange contracts |
||||||||||||||||||||
| Inflow |
$ | 46,142 | $ | 350,466 | $ | — | $ | — | $ | 396,608 | ||||||||||
| Outflow |
45,879 | 351,213 | — | — | 397,092 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | 263 | $ | (747 | ) | $ | — | $ | — | $ | (484 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| September 30, 2024 |
||||||||||||||||||||
| Gross settled |
||||||||||||||||||||
| Forward exchange contracts |
||||||||||||||||||||
| Inflow |
$ | 70,989 | $ | 211,462 | $ | — | $ | — | $ | 282,451 | ||||||||||
| Outflow |
71,940 | 212,188 | — | — | 284,128 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| $ | (951 | ) | $ | (726 | ) | $ | — | $ | — | $ | (1,677 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
2) Financing facilities
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Unsecured bank loan facilities |
||||||||||||
| Amount used |
$ | 755,000 | $ | 250,000 | $ | 430,000 | ||||||
| Amount unused |
25,986,772 | 56,438,486 | 56,858,684 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 26,741,772 | $ | 56,688,486 | $ | 57,288,684 | |||||||
|
|
|
|
|
|
|
|||||||
| Secured bank loan facilities |
||||||||||||
| Amount used |
$ | 1,600,000 | $ | 1,600,000 | $ | 1,600,000 | ||||||
| Amount unused |
15,000 | 15,000 | 15,000 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 1,615,000 | $ | 1,615,000 | $ | 1,615,000 | |||||||
|
|
|
|
|
|
|
|||||||
- 71 -
| 38. | RELATED PARTIES TRANSACTIONS |
The ROC Government has significant equity interest in Chunghwa. Chunghwa provides fixed-line services, mobile services, internet and data and other services to the various departments and institutions of the ROC Government in the normal course of business and at arm’s-length prices. Except for those disclosed in other notes or this note, the transactions with the ROC government bodies have not been disclosed because the transactions are not individually or collectively significant. However, the related revenues and operating costs have been appropriately recorded.
| a. | The Company engages in business transactions with the following related parties: |
| Company |
Relationship | |
| Taiwan International Standard Electronics Co., Ltd. | Associate | |
| So-net Entertainment Taiwan Limited | Associate | |
| KKBOX Taiwan Co., Ltd. | Associate | |
| KingwayTek Technology Co., Ltd. | Associate | |
| Taiwan International Ports Logistics Corporation | Associate | |
| Senao Networks, Inc. | Associate | |
| EnGenius Networks Inc. | Subsidiary of the Company’s associate, SNI | |
| EnRack Technology Inc. | Subsidiary of the Company’s associate, SNI | |
| Emplus Technologies, Inc. | Subsidiary of the Company’s associate, SNI | |
| ST-2 Satellite Ventures Pte., Ltd. | Associate | |
| CHT Infinity Singapore Pte., Ltd. | Associate | |
| Viettel-CHT Co., Ltd. | Associate | |
| PT. CHT Infinity Indonesia | Subsidiary of the Company’s associate, CISG | |
| Click Force Co., Ltd. | Associate | |
| Chunghwa PChome Fund I Co., Ltd. | Associate | |
| Cornerstone Ventures Co., Ltd. | Associate | |
| Next Commercial Bank Co., Ltd. | Associate | |
| WiAdvance Technology Corporation | Associate | |
| AgriTalk Technology Inc. | Associate | |
| Imedtac Co., Ltd. | Associate | |
| Baohwa Trust Co., Ltd. | Associate | |
| Porrima Inc. | Associate | |
| Taiwania Hive Technology Fund L.P. | Associate | |
| Chunghwa Sochamp Technology Inc. | Associate | |
| Gather Works Co., Ltd. | Associate | |
| Chunghwa SEA Holdings | Joint venture | |
| Other related parties | ||
| Chunghwa Telecom Foundation |
A nonprofit organization of which the funds donated by Chunghwa exceeds one third of its total funds | |
| Senao Technical and Cultural Foundation |
A nonprofit organization of which the funds donated by SENAO exceeds one third of its total funds | |
| Ba Gua Liao Foundation |
Substantial related party of SENAO | |
| Cih Yue Charity Foundation |
Substantial related party of SENAO | |
| Tsann Kuen Enterprise Co., Ltd. |
Substantial related party of SENAO | |
| E-Life Mall Co., Ltd. |
Substantial related party of SENAO | |
| Engenius Technologies Co., Ltd. |
Substantial related party of SENAO | |
| Cheng Keng Investment Co., Ltd. |
Substantial related party of SENAO | |
| Cheng Feng Investment Co., Ltd. |
Substantial related party of SENAO | |
| All Oriented Investment Co., Ltd. |
Substantial related party of SENAO | |
(Continued)
- 72 -
| Company |
Relationship | |
| Hwa Shun Investment Co., Ltd. |
Substantial related party of SENAO | |
| Yu Yu Investment Co., Ltd. |
Substantial related party of SENAO | |
| Kangsin Co., Ltd. |
Substantial related party of SENAO | |
| United Daily News Co., Ltd. |
Investor of significant influence over SFD | |
| Shenzhen Century Communication Co., Ltd. |
Investor of significant influence over SCT | |
| Advantech Co., Ltd. |
Investor of significant influence over IISI | |
(Concluded)
| b. | Balances and transactions between Chunghwa and its subsidiaries, which are related parties of Chunghwa, have been eliminated on consolidation and are not disclosed in this note. Terms of the foregoing transactions with related parties were not significantly different from transactions with non-related parties. When no similar transactions with non-related parties can be referenced, terms were determined in accordance with mutual agreements. Details of transactions between the Company and other related parties are disclosed below: |
| 1) | Operating transactions |
| Revenues | ||||||||||||||||
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Associates |
$ | 77,334 | $ | 146,505 | $ | 244,513 | $ | 301,586 | ||||||||
| Others |
41,223 | 17,336 | 129,645 | 38,918 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 118,557 | $ | 163,841 | $ | 374,158 | $ | 340,504 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating Costs and Expenses | ||||||||||||||||
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Associates |
$ | 226,461 | $ | 225,305 | $ | 623,966 | $ | 599,047 | ||||||||
| Others |
7,032 | 5,827 | 81,290 | 76,883 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 233,493 | $ | 231,132 | $ | 705,256 | $ | 675,930 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 2) | Non-operating transactions |
| Non-operating Income and Expenses | ||||||||||||||||
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Associates |
$ | 12,386 | $ | 10,319 | $ | 33,364 | $ | 29,905 | ||||||||
| Others |
508 | (9 | ) | 1,402 | 433 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 12,894 | $ | 10,310 | $ | 34,766 | $ | 30,338 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
- 73 -
| 3) | Receivables |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Associates |
$ | 219,496 | $ | 183,753 | $ | 174,358 | ||||||
| Others |
14,589 | 9,251 | 7,727 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 234,085 | $ | 193,004 | $ | 182,085 | |||||||
|
|
|
|
|
|
|
|||||||
| 4) | Payables |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Associates |
$ | 109,396 | $ | 476,069 | $ | 192,322 | ||||||
| Others |
11,849 | 4,332 | 4,148 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 121,245 | $ | 480,401 | $ | 196,470 | |||||||
|
|
|
|
|
|
|
|||||||
| 5) | Customers’ deposits |
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Associates |
$ | 2,299 | $ | 3,557 | $ | 26,183 | ||||||
|
|
|
|
|
|
|
|||||||
| 6) | Acquisition of property, plant and equipment |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Associates |
$ | 7,999 | $ | — | $ | 12,987 | $ | 63 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 7) | Acquisition of intangible assets |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Associates |
$ | — | $ | — | $ | — | $ | 429 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 8) | Lease-in agreements |
Chunghwa entered into a contract with ST-2 Satellite Ventures Pte., Ltd. on March 12, 2010 to lease capacity on the ST-2 satellite. This lease term is for 15 years which should start from the official operation of ST-2 satellite and the total contract value is approximately $6,000,000 thousand (SGD 260,723 thousand), including a prepayment of $3,067,711 thousand at the inception of the lease, and the rest of amount should be paid annually when ST-2 satellite starts its official operation. ST-2 satellite was launched in May 2011 and began its official operation in August 2011. As ST-2 satellite is in good operating condition, the useful life is extended for another 3 years and 3 months after evaluation in 2021. The Board of Directors of Chunghwa approved to extend the lease period accordingly with the original contract terms in December 2021; therefore, Chunghwa acquired right-of-use asset of $1,124,780 thousand from the aforementioned lease extension.
- 74 -
The lease liabilities of ST-2 Satellite Ventures Pte., Ltd. as of balance sheet dates were as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Lease liabilities—current |
$ | 234,831 | $ | 204,393 | $ | 209,391 | ||||||
| Lease liabilities—noncurrent |
1,251,262 | 1,463,029 | 1,549,439 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 1,486,093 | $ | 1,667,422 | $ | 1,758,830 | |||||||
|
|
|
|
|
|
|
|||||||
The interest expense recognized for the aforementioned lease liabilities for the three months and nine months ended September 30, 2025 were $1,591 thousand and $5,055 thousand, respectively. The interest expense recognized for the aforementioned lease liabilities for the three months and nine months ended September 30, 2024 were $1,870 thousand and $5,654 thousand, respectively.
| 9) | Others |
The bank deposits and other financial assets of NCB as of balance sheet dates were as follows:
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Bank deposits and other financial assets |
$ | 3,141,675 | $ | 2,708,878 | $ | 1,635,069 | ||||||
|
|
|
|
|
|
|
|||||||
The interest income recognized for the aforementioned bank deposits and other financial assets for the three months and nine months ended September 30, 2025 were $11,445 thousand and $37,932 thousand, respectively. The interest income recognized for the aforementioned bank deposits and other financial assets for the three months and nine months ended September 30, 2024 were $4,534 thousand and $12,640 thousand, respectively.
| c. | Compensation of key management personnel |
The compensation of directors and key management personnel was as follows:
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Short-term employee benefits |
$ | 111,240 | $ | 82,552 | $ | 319,463 | $ | 267,025 | ||||||||
| Post-employment benefits |
2,413 | 3,404 | 7,222 | 6,808 | ||||||||||||
| Share-based payment |
110 | 295 | 413 | 929 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 113,763 | $ | 86,251 | $ | 327,098 | $ | 274,762 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
The compensation of directors and key management personnel was mainly determined by the compensation committee having regard to the performances and market trends.
- 75 -
| 39. | PLEDGED ASSETS |
The following assets are mainly pledged as collaterals for bank loans, customs duties of the imported materials and warranties of contract performance, or the trust account the Company entrusts to Land Bank of Taiwan for fund control and property rights management.
| September 30, 2025 |
December 31, 2024 |
September 30, 2024 |
||||||||||
| Property, plant and equipment |
$ | 2,417,185 | $ | 2,439,320 | $ | 2,446,699 | ||||||
| Land held under development (included in inventories) |
1,998,733 | 1,998,733 | 1,998,733 | |||||||||
| Restricted assets (included in other assets—others) |
1,286,768 | 1,189,118 | 1,116,193 | |||||||||
|
|
|
|
|
|
|
|||||||
| $ | 5,702,686 | $ | 5,627,171 | $ | 5,561,625 | |||||||
|
|
|
|
|
|
|
|||||||
| 40. | SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS |
Except for those disclosed in other notes, the Company’s significant commitments and contingent liabilities as of September 30, 2025 were as follows:
| a. | Acquisitions of property, plant and equipment of $13,856,471 thousand. |
| b. | Acquisitions of telecommunications-related inventory of $15,243,166 thousand. |
| c. | Unused letters of credit amounting to $10,000 thousand. |
| d. | A commitment to contribute $2,000,000 thousand to a Piping Fund administered by the Taipei City Government, of which $1,000,000 thousand was contributed by Chunghwa on August 15, 1996 (classified as other financial assets—noncurrent). If the fund is not sufficient, Chunghwa will contribute the remaining $1,000,000 thousand upon notification from the Taipei City Government. |
| e. | Chunghwa committed that when its ownership interest in NCB is greater than 25% and NCB encounters financial difficulty or the capital adequacy ratio of NCB cannot meet the related regulation requirements, Chunghwa will provide financial support to assist NCB in maintaining a healthy financial condition. |
| f. | Chunghwa signed a contract, the ST-2 Satellite Succession Plan, with Singapore Telecommunications Limited, for a total transaction price of EUR 177,000 thousand and SGD 51,000 thousand; as of September 30, 2025, Chunghwa had paid the amount of EUR 111,510 thousand. Chunghwa signed a contract for Astranis block 3 Satellite with Astranis Space Technologies Corp. for a total transaction price of USD 115,000 thousand; as of September 30, 2025, Chunghwa had paid the amount of USD 17,080 thousand. The aforementioned amounts are classified as prepayments—noncurrent. |
| g. | The Company has signed the house and land presale contracts amounting to $7,691,358 thousand and has received $1,226,571 thousand in accordance with the contracts (classified as contract liabilities). |
| h. | Chunghwa’s Board of Directors approved an investment in Cultural Content Industry Fund in February 2024. The investment amount is capped at $1,200,000 thousand. |
- 76 -
| 41. | SIGNIFICANT SUBSEQUENT EVENTS |
None to report.
| 42. | SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES |
The following information summarizes the disclosure of foreign currencies other than the functional currency of Chunghwa and its subsidiaries. The following exchange rates are the exchange rates used to translate to the presentation currency of the consolidated financial statements, which is the NTD:
| September 30, 2025 | ||||||||||||
| Foreign Currencies (Thousands) |
Exchange Rate |
New Taiwan Dollars (Thousands) |
||||||||||
| Assets denominated in foreign currencies |
||||||||||||
| Monetary items |
||||||||||||
| USD |
$ | 95,033 | 30.45 | $ | 2,893,292 | |||||||
| EUR |
634 | 35.77 | 22,692 | |||||||||
| SGD |
49,621 | 23.61 | 1,171,546 | |||||||||
| RMB |
15,253 | 4.271 | 65,148 | |||||||||
| Non-monetary items |
||||||||||||
| Investments accounted for using equity method |
||||||||||||
| USD |
7,866 | 30.45 | 239,488 | |||||||||
| SGD |
18,843 | 23.61 | 444,886 | |||||||||
| VND |
532,741,049 | 0.0011 | 607,325 | |||||||||
| Liabilities denominated in foreign currencies |
||||||||||||
| Monetary items |
||||||||||||
| USD |
36,322 | 30.45 | 1,105,812 | |||||||||
| EUR |
23,666 | 35.77 | 846,532 | |||||||||
| SGD |
65,698 | 23.61 | 1,551,133 | |||||||||
| RMB |
9,763 | 4.271 | 41,696 | |||||||||
| December 31, 2024 | ||||||||||||
| Foreign Currencies (Thousands) |
Exchange Rate |
New Taiwan Dollars (Thousands) |
||||||||||
| Assets denominated in foreign currencies |
||||||||||||
| Monetary items |
||||||||||||
| USD |
$ | 90,344 | 32.79 | $ | 2,961,914 | |||||||
| EUR |
1,663 | 34.14 | 56,783 | |||||||||
| SGD |
44,547 | 24.13 | 1,074,925 | |||||||||
| RMB |
39,339 | 4.478 | 176,160 | |||||||||
| (Continued | ) | |||||||||||
- 77 -
| December 31, 2024 | ||||||||||||
| Foreign Currencies (Thousands) |
Exchange Rate |
New Taiwan Dollars (Thousands) |
||||||||||
| Non-monetary items |
||||||||||||
| Investments accounted for using equity method |
||||||||||||
| USD |
$ | 8,424 | 32.79 | $ | 276,180 | |||||||
| SGD |
12,991 | 24.13 | 313,467 | |||||||||
| VND |
451,398,010 | 0.0013 | 573,275 | |||||||||
| Liabilities denominated in foreign currencies |
||||||||||||
| Monetary items |
||||||||||||
| USD |
37,087 | 32.79 | 1,215,887 | |||||||||
| EUR |
30,433 | 34.14 | 1,038,994 | |||||||||
| SGD |
72,054 | 24.13 | 1,738,668 | |||||||||
| RMB |
9,244 | 4.478 | 41,394 | |||||||||
| (Concluded | ) | |||||||||||
| September 30, 2024 | ||||||||||||
| Foreign Currencies (Thousands) |
Exchange Rate |
New Taiwan Dollars (Thousands) |
||||||||||
| Assets denominated in foreign currencies |
||||||||||||
| Monetary items |
||||||||||||
| USD |
$ | 59,033 | 31.65 | $ | 1,868,410 | |||||||
| EUR |
687 | 35.38 | 24,291 | |||||||||
| SGD |
43,762 | 24.72 | 1,081,791 | |||||||||
| RMB |
45,979 | 4.523 | 207,964 | |||||||||
| Non-monetary items |
||||||||||||
| Investments accounted for using equity method |
||||||||||||
| USD |
8,905 | 31.65 | 281,855 | |||||||||
| SGD |
17,147 | 24.72 | 423,874 | |||||||||
| VND |
431,182,269 | 0.0013 | 547,601 | |||||||||
| Liabilities denominated in foreign currencies |
||||||||||||
| Monetary items |
||||||||||||
| USD |
27,146 | 31.65 | 859,183 | |||||||||
| EUR |
25,765 | 35.38 | 911,549 | |||||||||
| SGD |
74,114 | 24.72 | 1,832,091 | |||||||||
| RMB |
8,882 | 4.523 | 40,175 | |||||||||
The unrealized foreign currency exchange losses were $61,156 thousand and $21,282 thousand for the three months ended September 30, 2025 and 2024, respectively. The unrealized foreign currency exchange losses were $46,868 thousand and $30,111 thousand for the nine months ended September 30, 2025 and 2024, respectively. Due to the various foreign currency transactions and the functional currency of each individual entity of the Company, foreign exchange gains and losses cannot be disclosed by the respective significant foreign currency.
- 78 -
| 43. | ADDITIONAL DISCLOSURES |
Following are the additional disclosures required by the FSC for the Company:
| a. | Financing provided: None. |
| b. | Endorsement/guarantee provided: Please see Table 1. |
| c. | Significant marketable securities held (excluding investments in subsidiaries, associates and interests in joint ventures): Please see Table 2. |
| d. | Total purchases from or sales to related parties amounting to at least $100 million or 20% of the paid-in capital: Please see Table 3. |
| e. | Receivables from related parties amounting to $100 million or 20% of the paid-in capital: Please see Table 4. |
| f. | Names, locations, and other information of investees on which the Company exercises significant influence (excluding investments in Mainland China): Please see Table 5. |
| g. | Information on investments in Mainland China: |
| 1) | The name of the investee in Mainland China, its main businesses and products, paid-in capital, method of investment, information on inflow or outflow of capital, ownership percentage, net income (loss) of the investee, share of profit (loss) of the investee, ending balance, amount received as dividends from the investee, and the limit on the amount of investment in Mainland China: Please see Table 6. |
| 2) | Significant transactions with the investee in Mainland China occurring directly or indirectly through a third region, and the prices, terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in Mainland China on financial reports: None. |
| h. | Intercompany relationships and significant intercompany transactions: Please see Table 7. |
| 44. | SEGMENT INFORMATION |
The Company’s reportable segments are “Consumer Business”, “Enterprise Business”, “International Business” and “Others”, which are managed separately because each segment represents a strategic business unit that serves different customers. Segment information is provided to the chief operating decision maker who allocates resources and assesses segment performance. The Company’s measure of segment performance is mainly based on revenues and income before income tax.
Some operating segments have been aggregated into a single operating segment taking into account the following factors: (a) the type or class of customer for the telecommunications products and services are similar; (b) the nature of the telecommunications products and services are similar; and (c) the methods used to provide the services to the customers are similar.
The accounting policies of the operating segments are the same as those described in Note 3.
- 79 -
Segment Revenues and Operating Results
Analysis by reportable segment of revenues and operating results of continuing operations are as follows:
| Consumer Business |
Enterprise Business |
International Business |
Others | Total | ||||||||||||||||
| Three months ended September 30, 2025 |
||||||||||||||||||||
| Revenues |
||||||||||||||||||||
| From external customers |
$ | 35,178,788 | $ | 18,906,181 | $ | 2,325,352 | $ | 1,514,016 | $ | 57,924,337 | ||||||||||
| Intersegment revenues |
576,452 | 270,099 | 236,258 | 97,024 | 1,179,833 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Segment revenues |
$ | 35,755,240 | $ | 19,176,280 | $ | 2,561,610 | $ | 1,611,040 | 59,104,170 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Intersegment elimination |
(1,179,833 | ) | ||||||||||||||||||
|
|
|
|||||||||||||||||||
| Consolidated revenues |
$ | 57,924,337 | ||||||||||||||||||
|
|
|
|||||||||||||||||||
| Segment income before income tax |
$ | 8,010,869 | $ | 2,943,804 | $ | 497,424 | $ | 805,977 | $ | 12,258,074 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nine months ended September 30, 2025 |
||||||||||||||||||||
| Revenues |
||||||||||||||||||||
| From external customers |
$ | 103,821,207 | $ | 55,220,153 | $ | 6,957,267 | $ | 4,464,515 | $ | 170,463,142 | ||||||||||
| Intersegment revenues |
1,818,535 | 743,280 | 719,298 | 288,069 | 3,569,182 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Segment revenues |
$ | 105,639,742 | $ | 55,963,433 | $ | 7,676,565 | $ | 4,752,584 | 174,032,324 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Intersegment elimination |
(3,569,182 | ) | ||||||||||||||||||
|
|
|
|||||||||||||||||||
| Consolidated revenues |
$ | 170,463,142 | ||||||||||||||||||
|
|
|
|||||||||||||||||||
| Segment income before income tax |
$ | 24,235,582 | $ | 9,549,798 | $ | 1,653,632 | $ | 2,648,330 | $ | 38,087,342 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Three months ended September 30, 2024 |
||||||||||||||||||||
| Revenues |
||||||||||||||||||||
| From external customers |
$ | 34,429,900 | $ | 17,595,361 | $ | 2,370,996 | $ | 1,217,219 | $ | 55,613,476 | ||||||||||
| Intersegment revenues |
665,558 | 251,136 | 279,212 | 94,497 | 1,290,403 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Segment revenues |
$ | 35,095,458 | $ | 17,846,497 | $ | 2,650,208 | $ | 1,311,716 | 56,903,879 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Intersegment elimination |
(1,290,403 | ) | ||||||||||||||||||
|
|
|
|||||||||||||||||||
| Consolidated revenues |
$ | 55,613,476 | ||||||||||||||||||
|
|
|
|||||||||||||||||||
| Segment income before income tax |
$ | 7,194,787 | $ | 3,103,432 | $ | 610,543 | $ | 580,340 | $ | 11,489,102 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Nine months ended September 30, 2024 |
||||||||||||||||||||
| Revenues |
||||||||||||||||||||
| From external customers |
$ | 102,651,208 | $ | 51,437,172 | $ | 7,423,160 | $ | 3,161,140 | $ | 164,672,680 | ||||||||||
| Intersegment revenues |
1,787,826 | 567,598 | 816,975 | 279,809 | 3,452,208 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Segment revenues |
$ | 104,439,034 | $ | 52,004,770 | $ | 8,240,135 | $ | 3,440,949 | 168,124,888 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Intersegment elimination |
(3,452,208 | ) | ||||||||||||||||||
|
|
|
|||||||||||||||||||
| Consolidated revenues |
$ | 164,672,680 | ||||||||||||||||||
|
|
|
|||||||||||||||||||
| Segment income before income tax |
$ | 22,662,543 | $ | 9,666,918 | $ | 1,829,235 | $ | 1,664,871 | $ | 35,823,567 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Main Products and Service Revenues
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Consumer Business |
||||||||||||||||
| Mobile services |
$ | 14,762,242 | $ | 14,358,410 | $ | 43,858,999 | $ | 42,638,330 | ||||||||
| Fixed-line services |
10,793,854 | 10,688,228 | 32,219,243 | 32,154,161 | ||||||||||||
| Sales |
8,906,189 | 8,673,419 | 25,630,438 | 25,942,062 | ||||||||||||
| Others |
716,503 | 709,843 | 2,112,527 | 1,916,655 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 35,178,788 | 34,429,900 | 103,821,207 | 102,651,208 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
(Continued)
- 80 -
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Enterprise Business |
||||||||||||||||
| Fixed-line services |
$ | 8,381,628 | $ | 8,427,314 | $ | 24,997,229 | $ | 25,248,393 | ||||||||
| ICT business |
6,899,297 | 6,027,689 | 19,817,822 | 16,458,571 | ||||||||||||
| Mobile services |
2,415,996 | 2,282,057 | 7,064,986 | 6,824,138 | ||||||||||||
| Others |
1,209,260 | 858,301 | 3,340,116 | 2,906,070 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 18,906,181 | 17,595,361 | 55,220,153 | 51,437,172 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| International Business |
||||||||||||||||
| Fixed-line services |
1,065,477 | 1,283,400 | 3,543,991 | 3,874,562 | ||||||||||||
| ICT business |
1,097,633 | 966,180 | 2,954,874 | 2,876,895 | ||||||||||||
| Others |
162,242 | 121,416 | 458,402 | 671,703 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 2,325,352 | 2,370,996 | 6,957,267 | 7,423,160 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Others |
||||||||||||||||
| Sales |
1,277,862 | 979,111 | 3,775,390 | 2,466,829 | ||||||||||||
| Others |
236,154 | 238,108 | 689,125 | 694,311 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 1,514,016 | 1,217,219 | 4,464,515 | 3,161,140 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 57,924,337 | $ | 55,613,476 | $ | 170,463,142 | $ | 164,672,680 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
(Concluded)
- 81 -
TABLE 1
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
ENDORSEMENTS/GUARANTEES PROVIDED
NINE MONTHS ENDED SEPTEMBER 30, 2025
(Amounts in Thousands of New Taiwan Dollars)
| No. (Note 1) |
Endorsement/ |
Guaranteed Party |
Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party |
Maximum Balance for the Period |
Ending Balance |
Actual Borrowing Amount |
Amount of Endorsement/ Guarantee Collateralized by Properties |
Ratio of Accumulated Endorsement/ Guarantee to Net Equity Per Latest Financial Statements |
Maximum Endorsement/ Guarantee Amount Allowable |
Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries |
Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent |
Endorsement/ Guarantee Given on Behalf of Companies in Mainland China |
Note | |||||||||||||||||||||||||||||
| Name |
Nature of Relationship (Note 2) | |||||||||||||||||||||||||||||||||||||||||
| 1 |
Senao International Co., Ltd. |
Aval Technologies Co., Ltd. |
b | $ | 625,990 | $ | 300,000 | $ | 300,000 | $ | 300,000 | $ | — | 4.79 | $ | 3,129,950 | Yes | No | No | Notes 3 and 4 | ||||||||||||||||||||||
| Wiin Technology Co., Ltd. |
b | 625,990 | 200,000 | 200,000 | 200,000 | — | 3.19 | 3,129,950 | Yes | No | No | Notes 3 and 4 | ||||||||||||||||||||||||||||||
| Note 1: | Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as follows: |
| a. | “0” for the Company. |
| b. | Subsidiaries are numbered from “1”. |
| Note 2: | Relationships between the endorsement/guarantee provider and the guaranteed party: |
| a. | A company with which it does business. |
| b. | A company in which the Company directly and indirectly holds more than 50 percent of the voting shares. |
| c. | A company that directly and indirectly holds more than 50 percent of the voting shares in the Company. |
| d. | Companies in which the Company holds, directly or indirectly, 90% or more of the voting shares. |
| e. | The Company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project. |
| f. | All capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages. |
| g. | Companies in the same industry provide among themselves jointly and severally guarantee for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other. |
| Note 3: | The limits on endorsement or guarantee amount provided to each guaranteed party is up to 10% of the net assets value of the latest financial statements of Senao International Co., Ltd. |
| Note 4: | The total amount of endorsement or guarantee that the Company is allowed to provide is up to 50% of the net assets value of the latest financial statements of Senao International Co., Ltd. |
- 82 -
TABLE 2
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
SIGNIFICANT MARKETABLE SECURITIES HELD
SEPTEMBER 30, 2025
(Amounts in Thousands of New Taiwan Dollars)
| Held Company Name |
Marketable Securities |
Relationship with the Company |
Financial Statement |
September 30, 2025 | Note | |||||||||||||||||||||||
| Shares (Thousands/ Thousand Units) |
Carrying Value (Note 1) |
Percentage of Ownership |
Fair Value |
|||||||||||||||||||||||||
| Chunghwa Telecom Co., Ltd. |
Stocks | |||||||||||||||||||||||||||
| Taipei Financial Center Corp. | — | Financial assets at FVOCI | 172,927 | $ | 4,452,757 | 12 | $ | 4,452,757 | — | |||||||||||||||||||
| iKala Global Online Corp. | — | Financial assets at FVOCI | 112,500 | 360,373 | — | 360,373 | Note 4 | |||||||||||||||||||||
| KKCompany Technologies Inc. | — | Financial assets at FVOCI | 2,762 | 237,642 | 2 | 237,642 | — | |||||||||||||||||||||
| 4 Gamers Entertainment Inc. | — | Financial assets at FVOCI | 136 | 106,392 | — | 106,392 | Note 4 | |||||||||||||||||||||
| Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II) | — | Financial assets at FVOCI | 5,252 | 19,183 | 17 | 19,183 | — | |||||||||||||||||||||
| Taiwan mobile payment Co., Ltd. | — | Financial assets at FVOCI | 1,200 | 4,686 | 2 | 4,686 | — | |||||||||||||||||||||
| Innovation Works Limited | — | Financial assets at FVOCI | 1,000 | 6,730 | — | 6,730 | Note 4 | |||||||||||||||||||||
| RPTI Intergroup International Ltd. | — | Financial assets at FVOCI | 4,765 | — | 10 | — | — | |||||||||||||||||||||
| Global Mobile Corp. | — | Financial assets at FVOCI | 7,617 | — | 3 | — | — | |||||||||||||||||||||
| Taiwan Smart Electricity & Energy Co., Ltd. | — | Financial assets at FVOCI | 19,688 | 196,875 | 13 | 196,875 | — | |||||||||||||||||||||
| Cornerstone Ventures Co., Ltd. | — | Financial assets at FVOCI | 25 | 245 | 5 | 245 | — | |||||||||||||||||||||
| Taiwania Capital Buffalo Fund Co., Ltd. | — | Financial assets at FVTPL—noncurrent | 555,600 | 421,969 | — | 421,969 | Note 4 | |||||||||||||||||||||
| TOP TAIWAN XIV VENTURE CAPITAL CO., LTD. | — | Financial assets at FVTPL—noncurrent | 20,000 | 178,978 | 9 | 178,978 | — | |||||||||||||||||||||
| Innovation Works Development Fund, L.P. | — | Financial assets at FVTPL—noncurrent | — | 17,273 | 4 | 17,273 | — | |||||||||||||||||||||
| Limited partnership | ||||||||||||||||||||||||||||
| Taiwania Capital Buffalo Fund VI, L.P. | — | Financial assets at FVTPL—noncurrent | — | 345,361 | 10 | 345,361 | — | |||||||||||||||||||||
| TRF 1 L.P. | — | Financial assets at FVTPL—noncurrent | — | 122,175 | 10 | 122,175 | — | |||||||||||||||||||||
| Corporate bonds | ||||||||||||||||||||||||||||
| Fubon Life Insurance Co., Ltd. | — | Financial assets at amortized cost | 2 | 2,000,000 | — | 2,023,316 | Note 3 | |||||||||||||||||||||
| Senao International Co., Ltd. |
Stocks | |||||||||||||||||||||||||||
| N.T.U. Innovation Incubation Corporation | — | Financial assets at FVOCI | 1,200 | 10,191 | 9 | 10,191 | — | |||||||||||||||||||||
| CHIEF Telecom Inc. |
Stocks | |||||||||||||||||||||||||||
| WT Microelectronics Co., Ltd. | — | Financial assets at FVOCI | 361 | 18,267 | — | 18,267 | |
Notes 2 and 4 |
| |||||||||||||||||||
| 3 Link Information Service Co., Ltd. | — | Financial assets at FVOCI | 37 | 6,390 | 10 | 6,390 | — | |||||||||||||||||||||
| Chunghwa Investment Co., Ltd. |
Stocks | |||||||||||||||||||||||||||
| PChome Online Inc. | — | Financial assets at FVOCI | 1,875 | 59,916 | 1 | 59,916 | Note 2 | |||||||||||||||||||||
| Tatung Technology Inc. | — | Financial assets at FVOCI | 4,571 | 36,633 | 11 | 36,633 | — | |||||||||||||||||||||
| Bossdom Digiinnovation Co., Ltd. | — | Financial assets at FVOCI | 2,309 | 24,015 | 7 | 24,015 | Note 2 | |||||||||||||||||||||
| KEYXENTIC INC. | — | Financial assets at FVOCI | 600 | 25,947 | 9 | 25,947 | — | |||||||||||||||||||||
| ioNetworks Inc. | — | Financial assets at FVOCI | 107 | 14,187 | — | 14,187 | Note 4 | |||||||||||||||||||||
(Continued)
- 83 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
SIGNIFICANT MARKETABLE SECURITIES HELD
SEPTEMBER 30, 2025
(Amounts in Thousands of New Taiwan Dollars)
| Held Company Name |
Marketable Securities |
Relationship with the Company |
Financial Statement |
September 30, 2025 | Note | |||||||||||||||||||
| Shares (Thousands/ Thousand Units) |
Carrying Value (Note 1) |
Percentage of Ownership |
Fair Value |
|||||||||||||||||||||
| iSing99 Inc. | — | Financial assets at FVOCI | 10,000 | $ | — | 7 | $ | — | — | |||||||||||||||
| Powtec ElectroChemical Corporation | — | Financial assets at FVOCI | 20,000 | — | 2 | — | — | |||||||||||||||||
| Navstar Electronics Co., Ltd. | — | Financial assets at FVTPL - noncurrent | 3,000 | 30,000 | — | 30,000 | Note 4 | |||||||||||||||||
| Limited partnership | ||||||||||||||||||||||||
| Taiwania Capital Buffalo Fund V, L.P. | — | Financial assets at FVTPL - noncurrent | — | 28,838 | 3 | 28,838 | — | |||||||||||||||||
| CHT Security Co., Ltd. |
Stocks | |||||||||||||||||||||||
| TXOne Networks Inc. | — | Financial assets at FVTPL - noncurrent | 91 | 13,839 | — | 13,839 | Note 4 | |||||||||||||||||
| CyCraft Technology Corporation | — | Financial assets at FVOCI | 912 | 102,133 | 3 | 102,133 | — | |||||||||||||||||
| Note 1: | Except debt instrument investments are shown at amortized cost, the remaining are shown at carrying amounts with fair value adjustments. |
| Note 2: | Fair value was based on the closing price on the last trading day of the reporting period in the stock market. |
| Note 3: | Fair value was based on the weighted average price per 100 units of par value for bonds on the last trading day of the reporting period in the over-the-counter market. |
| Note 4: | Preferred stocks. |
(Concluded)
- 84 -
TABLE 3
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
NINE MONTHS ENDED SEPTEMBER 30, 2025
(Amounts in Thousands of New Taiwan Dollars)
| Company |
Related Party |
Nature of Relationship |
Transaction Details | Abnormal Transaction (Note 3) |
Notes / Accounts Payable or Receivable |
|||||||||||||||||||||||||
| Purchases/Sales (Note 1) |
Amount (Note 4) |
% to Total |
Payment Terms |
Unit Price |
Payment Terms |
Ending Balance (Notes 2 and 4) |
% to Total |
|||||||||||||||||||||||
| Chunghwa Telecom Co., Ltd. |
Senao International Co., Ltd. |
Subsidiary | Sales | $ | 2,855,035 | 2 | 30 days | $ | — | — | $ | 492,881 | 2 | |||||||||||||||||
| Purchase | 944,629 | 1 | 30~90 days | — | — | (948,744 | ) | (10 | ) | |||||||||||||||||||||
| CHIEF Telecom Inc. |
Subsidiary | Sales | 391,463 | — | 30 days | — | — | 67,202 | — | |||||||||||||||||||||
| Purchase | 101,930 | — | 30 days | — | — | (18,181 | ) | — | ||||||||||||||||||||||
| Chunghwa System Integration Co., Ltd. |
Subsidiary | Purchase | 911,949 | 1 | 30 days | — | — | (377,756 | ) | (4 | ) | |||||||||||||||||||
| Honghwa International Co., Ltd. |
Subsidiary | Sales | 168,028 | — | 30~60 days | — | — | 5,611 | — | |||||||||||||||||||||
| Purchase | 5,280,798 | 6 | 30~60 days | — | — | (1,192,367 | ) | (12 | ) | |||||||||||||||||||||
| Donghwa Telecom Co., Ltd. |
Subsidiary | Sales | 139,527 | — | 30 days | — | — | 59,488 | — | |||||||||||||||||||||
| Purchase | 375,717 | — | 90 days | — | — | (99,233 | ) | (1 | ) | |||||||||||||||||||||
| Chunghwa Telecom Global, Inc. |
Subsidiary | Sales | 104,971 | — | 30~90 days | — | — | 20,318 | — | |||||||||||||||||||||
| Purchase | 212,575 | — | 90 days | — | — | (70,794 | ) | (1 | ) | |||||||||||||||||||||
| Chunghwa Telecom Singapore Pte., Ltd. |
Subsidiary | Purchase | 138,160 | — | 30 days | — | — | (172,195 | ) | (2 | ) | |||||||||||||||||||
| CHT Security Co., Ltd. |
Subsidiary | Purchase | 260,642 | — | 30 days | — | — | (7,906 | ) | — | ||||||||||||||||||||
| International Integrated Systems, Inc. |
Subsidiary | Purchase | 522,208 | 1 | 30 days | — | — | (86,065 | ) | (1 | ) | |||||||||||||||||||
| Senyoung Insurance Agent Co., Ltd. |
Subsidiary | Sales | 121,770 | — | 30 days | — | — | 44,419 | — | |||||||||||||||||||||
| Taiwan International Standard Electronics Co., Ltd. |
Associate | Purchase | 231,771 | — | 30~90 days | — | — | (8,051 | ) | — | ||||||||||||||||||||
| WiAdvance Technology Corporation |
Associate | Purchase | 121,002 | — | 60 days | — | — | (43,662 | ) | — | ||||||||||||||||||||
| Senao International Co., Ltd. |
Aval Technologies Co., Ltd. |
Subsidiary | Purchase | 228,067 | 1 | 30 days | — | — | (4,474 | ) | — | |||||||||||||||||||
| CHIEF Telecom Inc. |
So-net Entertainment Taiwan Limited |
Associate | Sales | 105,877 | 4 | 30 days | — | — | 10,913 | 3 | ||||||||||||||||||||
| Chunghwa Precision Test Tech. Co., Ltd. |
Su Zhou Precision Test Tech. Ltd. |
Subsidiary | Sales | 119,621 | 3 | 90 days | — | — | 48,596 | 7 | ||||||||||||||||||||
| Note 1: | Purchases include costs to acquire services. |
| Note 2: | Notes and accounts receivable did not include the amounts collected for others and other receivables. |
| Note 3: | Transaction terms with related parties were determined in accordance with mutual agreements when there were no similar transactions with third parties. Other transactions with related parties were not significantly different from those with third parties. |
| Note 4: | All intercompany transactions, balances, income and expenses are eliminated upon consolidation. |
- 85 -
TABLE 4
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
SEPTEMBER 30, 2025
(Amounts in Thousands of New Taiwan Dollars)
| Company Name |
Related Party |
Nature of Relationship |
Ending Balance |
Turnover Rate (Note 1) |
Overdue | Amounts Received in Subsequent Period |
Allowance for Bad Debts |
|||||||||||||||||||||
| Amounts | Action Taken |
|||||||||||||||||||||||||||
| Chunghwa Telecom Co., Ltd. |
Senao International Co., Ltd. | Subsidiary | $
|
662,988 (Note 2 |
) |
10.91 | $ | — | — | $ | 62,486 | $ | — | |||||||||||||||
| Chunghwa Telecom Singapore Pte. Ltd. |
Chunghwa Telecom Co., Ltd. | Subsidiary | |
172,195 (Note 2 |
) |
8.26 | — | — | 156,900 | — | ||||||||||||||||||
| Senao International Co., Ltd. |
Chunghwa Telecom Co., Ltd. | Parent company | |
1,117,866 (Note 2 |
) |
8.57 | — | — | 172,340 | — | ||||||||||||||||||
| Chunghwa System Integration Co., Ltd. |
Chunghwa Telecom Co., Ltd. | Parent company | |
377,756 (Note 2 |
) |
4.18 | — | — | 184,745 | — | ||||||||||||||||||
| Honghwa International Co., Ltd. |
Chunghwa Telecom Co., Ltd. | Parent company | |
1,213,997 (Note 2 |
) |
5.11 | — | — | 166,315 | — | ||||||||||||||||||
| Note 1: | Payments and receipts collected in trust for others are excluded from the accounts receivable in calculating the turnover rate. |
| Note 2: | The amount was eliminated upon consolidation. |
- 86 -
TABLE 5
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES IN WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INVESTMENT IN MAINLAND CHINA)
NINE MONTHS ENDED SEPTEMBER 30, 2025
(Amounts in Thousands of New Taiwan Dollars)
| Investor Company |
Investee Company |
Location |
Main Businesses and Products |
Original Investment Amount | Balance as of September 30, 2025 | Net Income (Loss) of the Investee |
Recognized Gain (Loss) (Notes 1 and 2) |
Note | ||||||||||||||||||||||||||||
| September 30, 2025 |
December 31, 2024 |
Shares (Thousands) |
Percentage of Ownership (%) |
Carrying Value |
||||||||||||||||||||||||||||||||
| Chunghwa Telecom Co., Ltd. |
Senao International Co., Ltd. | Taiwan | Handset and peripherals retailer; sales of CHT mobile phone plans as an agent | $ | 1,065,813 | $ | 1,065,813 | 71,773 | 28 | $ | 1,697,091 | $ | 274,122 | $ | 71,429 | Subsidiary (Notes 3 and 5) | ||||||||||||||||||||
| Light Era Development Co., Ltd. | Taiwan | Planning and development of real estate and intelligent buildings, and property management | 3,000,000 | 3,000,000 | 300,000 | 100 | 3,829,046 | 16,827 | 9,796 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Donghwa Telecom Co., Ltd. | Hong Kong | International private leased circuit, IP VPN service, and IP transit services | 691,163 | 691,163 | 178,590 | 100 | 928,800 | 70,183 | 70,183 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Chunghwa Telecom Singapore Pte., Ltd. | Singapore | International private leased circuit, IP VPN service, and IP transit services | 574,112 | 574,112 | 26,383 | 100 | 1,365,181 | 164,558 | 164,563 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Chunghwa System Integration Co., Ltd. | Taiwan | Providing system integration services and telecommunications equipment | 838,506 | 838,506 | 60,000 | 100 | 696,216 | 21,150 | 41,123 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| CHIEF Telecom Inc. | Taiwan | Network integration, internet data center (“IDC”), communications integration and cloud application services | 459,652 | 459,652 | 43,368 | 56 | 2,319,791 | 912,733 | 520,481 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Chunghwa Investment Co., Ltd. | Taiwan | Investment | 639,559 | 639,559 | 68,085 | 89 | 3,334,638 | 233,234 | 207,727 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Prime Asia Investments Group Ltd. | British Virgin Islands | Investment | 385,274 | 385,274 | 1 | 100 | 174,171 | (1,109 | ) | (1,109 | ) | Subsidiary (Note 5) | ||||||||||||||||||||||||
| Honghwa International Co., Ltd. | Taiwan | Telecommunication engineering, sales agent of mobile phone plan application and other business services, etc. | 180,000 | 180,000 | 18,000 | 100 | 646,938 | 279,514 | 284,108 | Subsidiary (Notes 3 and 5) | ||||||||||||||||||||||||||
| CHYP Multimedia Marketing & Communications Co., Ltd. | Taiwan | Digital information supply services and advertisement services | 150,000 | 150,000 | 15,000 | 100 | 190,551 | 2,383 | 487 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Chunghwa Telecom Vietnam Co., Ltd. | Vietnam | Intelligent energy saving solutions, international circuit, and information and communication technology (“ICT”) services | 148,275 | 148,275 | — | 100 | 77,104 | 8,973 | 8,973 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Chunghwa Telecom Global, Inc. | United States | International private leased circuit, internet services, and transit services | 70,429 | 70,429 | 6,000 | 100 | 857,362 | 64,333 | 64,333 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| CHT Security Co., Ltd. | Taiwan | Computing equipment installation, wholesale of computing and business machinery equipment and software, management consulting services, data processing services, digital information supply services and internet identify services | 230,580 | 230,580 | 23,058 | 57 | 1,054,424 | 317,140 | 216,370 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Chunghwa Telecom (Thailand) Co., Ltd. | Thailand | International private leased circuit, IP VPN service, ICT and cloud VAS services | 119,624 | 119,624 | 1,300 | 100 | 151,170 | 3,784 | 3,784 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Spring House Entertainment Tech. Inc. | Taiwan | Software design services, internet contents production and play, and motion picture production and distribution | 62,209 | 62,209 | 8,251 | 56 | 160,232 | 22,109 | 12,390 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Chunghwa Leading Photonics Tech Co., Ltd. | Taiwan | Production and sale of electronic components and finished products | 70,500 | 70,500 | 7,050 | 70 | 202,109 | 39,520 | 27,613 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Smartfun Digital Co., Ltd. | Taiwan | Providing diversified family education digital services | 65,000 | 65,000 | 6,500 | 65 | 80,592 | 13,163 | 7,631 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Chunghwa Telecom Japan Co., Ltd. | Japan | International private leased circuit, IP VPN service, and IP transit services | 17,291 | 17,291 | 1 | 100 | 338,538 | 73,080 | 64,897 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| International Integrated Systems, Inc. | Taiwan | IT solution provider, IT application consultation, system integration and package solution | 507,363 | 507,363 | 36,205 | 50 | 631,062 | 63,125 | 31,053 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Chunghwa Digital Cultural and Creative Capital Co., Ltd | Taiwan | Investment and management consulting | 50,000 | 50,000 | 5,000 | 100 | 31,314 | (7,737 | ) | (7,887 | ) | Subsidiary (Note 5) | ||||||||||||||||||||||||
| Chunghwa Telecom Europe GmbH | Germany | International private leased circuit, internet services, transit services and ICT services | 122,675 | 122,675 | 3,500 | 100 | 112,786 | (9,296 | ) | (9,296 | ) | Subsidiary (Note 5) | ||||||||||||||||||||||||
| Viettel-CHT Co., Ltd. | Vietnam | IDC services | 288,327 | 288,327 | — | 30 | 607,325 | 307,651 | 92,295 | Associate | ||||||||||||||||||||||||||
(Continued)
- 87 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES IN WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INVESTMENT IN MAINLAND CHINA)
NINE MONTHS ENDED SEPTEMBER 30, 2025
(Amounts in Thousands of New Taiwan Dollars)
| Investor Company |
Investee Company |
Location |
Main Businesses and Products |
Original Investment Amount | Balance as of September 30, 2025 | Net Income (Loss) of the Investee |
Recognized Gain (Loss) (Notes 1 and 2) |
Note | ||||||||||||||||||||||||||
| September 30, 2025 |
December 31, 2024 |
Shares (Thousands) |
Percentage of Ownership (%) |
Carrying Value |
||||||||||||||||||||||||||||||
| Taiwan International Standard Electronics Co., Ltd. | Taiwan | Manufacturing, selling, designing, and maintaining of telecommunications systems and equipment | $ | 164,000 | $ | 164,000 | 1,760 | 40 | $ | 379,949 | $ | 292,653 | $ | 123,521 | Associate | |||||||||||||||||||
| KKBOX Taiwan Co., Ltd. | Taiwan | Providing of music on-line, software, electronic information, and advertisement services | 67,025 | 67,025 | 4,438 | 30 | 128,797 | (74,815 | ) | (22,445 | ) | Associate | ||||||||||||||||||||||
| So-net Entertainment Taiwan Limited | Taiwan | Online service and sale of computer hardware | 120,008 | 120,008 | 9,429 | 30 | 145,224 | (159,906 | ) | (47,972 | ) | Associate | ||||||||||||||||||||||
| KingwayTek Technology Co., Ltd. | Taiwan | Design and sale of digital map, technical support for computer peripherals device, design and development of system programming projects | 66,684 | 66,684 | 12,720 | 23 | 256,721 | 49,951 | 11,593 | Associate | ||||||||||||||||||||||||
| Taiwan International Ports Logistics Corporation | Taiwan | Import and export storage, logistic warehouse, and ocean shipping service | 80,000 | 80,000 | 8,000 | 27 | 125,855 | 120,056 | 32,019 | Associate | ||||||||||||||||||||||||
| Chunghwa PChome Fund I Co., Ltd. | Taiwan | Investment, venture capital, investment advisor, management consultant and other consultancy service | 200,000 | 200,000 | 20,000 | 50 | 248,538 | (8,175 | ) | (4,087 | ) | Associate | ||||||||||||||||||||||
| Cornerstone Ventures Co., Ltd. | Taiwan | Investment, venture capital, investment advisor, management consultant and other consultancy service | — | 4,900 | — | — | — | (1 | ) | — | Associate (Note 6) | |||||||||||||||||||||||
| Next Commercial Bank Co., Ltd. | Taiwan | Online banking business | 5,733,847 | 5,733,847 | 462,643 | 46 | 3,680,266 | (642,285 | ) | (292,487 | ) | Associate | ||||||||||||||||||||||
| Chunghwa SEA Holdings | Taiwan | Investment business | 10,200 | 10,200 | 1,020 | 51 | 9,083 | (329 | ) | (168 | ) | Joint venture | ||||||||||||||||||||||
| WiAdvance Technology Corporation | Taiwan | Software solution integration | 273,800 | 273,800 | 3,700 | 16 | 267,098 | (13,776 | ) | (6,341 | ) | Associate | ||||||||||||||||||||||
| Taiwania Hive Technology Fund L.P. | Cayman Islands |
Investment business | 288,405 | 288,405 | — | 40 | 239,488 | (36,206 | ) | (14,710 | ) | Associate | ||||||||||||||||||||||
| Chunghwa Sochamp Technology Inc. | Taiwan | Design, development and production of Automatic License Plate Recognition software and hardware | 20,400 | 20,400 | 2,040 | 37 | — | (11,414 | ) | — | Associate | |||||||||||||||||||||||
| Senao International Co., Ltd. |
Senao Networks, Inc. | Taiwan | Telecommunication facilities manufactures and sales | 578,186 | 578,186 | 19,582 | 33 | 2,009,391 | 287,831 | 95,434 | Associate | |||||||||||||||||||||||
| Youth Co., Ltd. | Taiwan | Sale of information and communication technologies products | 427,850 | 427,850 | 14,752 | 96 | 154,162 | (1,097 | ) | (7,236 | ) | Subsidiary (Note 5) | ||||||||||||||||||||||
| Aval Technologies Co., Ltd. | Taiwan | Sale of information and communication technologies products | 89,550 | 89,550 | 13,740 | 100 | 148,004 | 5,286 | 5,283 | Subsidiary (Note 5) | ||||||||||||||||||||||||
| Senyoung Insurance Agent Co., Ltd. | Taiwan | Property and liability insurance agency | 59,000 | 59,000 | 8,909 | 100 | 132,225 | 25,348 | 25,348 | Subsidiary (Note 5) | ||||||||||||||||||||||||
| CHIEF Telecom Inc. |
Unigate Telecom Inc. | Taiwan | Telecommunications and internet service | 2,000 | 2,000 | 200 | 100 | 1,491 | 45 | 45 | Subsidiary (Note 5) | |||||||||||||||||||||||
| Chief International Corp. | Samoa Islands |
Telecommunications and internet service | 6,068 | 6,068 | 200 | 100 | 43,597 | 3,798 | 3,798 | Subsidiary (Note 5) | ||||||||||||||||||||||||
| Chunghwa Telecom Singapore Pte., Ltd. |
ST-2 Satellite Ventures Pte., Ltd. | Singapore | Operation of ST-2 telecommunications satellite | 21,309 | 21,309 | 943 | 38 | 444,886 | 364,865 | 139,124 | Associate | |||||||||||||||||||||||
| CHT Infinity Singapore Pte., Ltd. | Singapore | Investment business | 55,720 | 55,720 | 2,000 | 40 | 54,216 | 3,480 | 1,392 | Associate | ||||||||||||||||||||||||
| Chunghwa Telecom Malaysia SDN. BHD. | Malaysia | International private leased circuit, IP VPN service, and ICT services | — | — | — | 100 | — | — | — | Subsidiary (Note 5) | ||||||||||||||||||||||||
| Chunghwa Investment Co., Ltd. |
Chunghwa Precision Test Tech. Co., Ltd. | Taiwan | Production and sale of semiconductor testing components and printed circuit board | 178,608 | 178,608 | 11,230 | 34 | 2,902,809 | 712,385 | 243,984 | Subsidiary (Note 5) | |||||||||||||||||||||||
| CHIEF Telecom Inc. | Taiwan | Network integration, internet data center (“IDC”), communications integration and cloud application services | 19,064 | 19,064 | 2,286 | 3 | 112,391 | 912,733 | 26,762 | Associate (Note 5) | ||||||||||||||||||||||||
| Senao International Co., Ltd. | Taiwan | Selling and maintaining mobile phones and its peripheral products | 49,731 | 49,731 | 1,001 | — | 45,008 | 274,122 | 1,063 | Associate (Note 5) | ||||||||||||||||||||||||
| AgriTalk Technology Inc. | Taiwan | Providing smart agricultural solutions, scientific agricultural product, biological inhibitor, and biochips | 65,175 | 65,175 | 3,300 | 29 | 22,710 | (12,983 | ) | (3,544 | ) | Associate | ||||||||||||||||||||||
(Continued)
- 88 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES IN WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INVESTMENT IN MAINLAND CHINA)
NINE MONTHS ENDED SEPTEMBER 30, 2025
(Amounts in Thousands of New Taiwan Dollars)
| Investor Company |
Investee Company | Location |
Main Businesses and Products |
Original Investment Amount | Balance as of September 30, 2025 | Net Income (Loss) of the Investee |
Recognized Gain (Loss) (Notes 1 and 2) |
Note | ||||||||||||||||||||||||||||
| September 30, 2025 |
December 31, 2024 |
Shares (Thousands) |
Percentage of Ownership (%) |
Carrying Value |
||||||||||||||||||||||||||||||||
| Imedtac Co., Ltd. |
Taiwan | Providing medical AIoT solution, biomedical engineering services, and sales of medical device as an agent | $ | 91,381 | $ | 91,381 | 1,828 | 10 | $ | 54,501 | $ | (15,521 | ) | $ | (2,311 | ) | Associate | |||||||||||||||||||
| Porrima Inc. | Taiwan | Designing and selling zero-emission ships | 80,000 | 80,000 | 8,000 | 10 | 73,334 | (42,997 | ) | (4,299 | ) | Associate | ||||||||||||||||||||||||
| Gather Works Co., Ltd. |
Taiwan | Film and drama IP development, copyright management and copyright sales | 14,400 | — | 1,440 | 48 | 13,036 | (2,842 | ) | (1,364 | ) | Associate | ||||||||||||||||||||||||
| Chunghwa Precision Test Tech. Co., Ltd. |
Chunghwa Precision Test Tech USA Corporation |
United States |
Design and after-sale services of semiconductor testing components and printed circuit board | 74,192 | 74,192 | 2,600 | 100 | 107,034 | 5,204 | 5,231 | Subsidiary (Note 5) | |||||||||||||||||||||||||
| CHPT Japan Co., Ltd. |
Japan | Related services of electronic parts, machinery processed products and printed circuit board | 2,008 | 2,008 | 1 | 100 | 2,264 | 82 | 82 | Subsidiary (Note 5) | ||||||||||||||||||||||||||
| Chunghwa Precision Test Tech. International, Ltd. |
Samoa Islands |
Wholesale and retail of electronic materials, and investment | 173,649 | 173,649 | 5,700 | 100 | 127,840 | (27,990 | ) | (21,845 | ) | Subsidiary (Note 5) | ||||||||||||||||||||||||
| TestPro Investment Co., Ltd. |
Taiwan | Investment | 135,000 | 135,000 | 13,500 | 100 | 25,856 | (11,418 | ) | (9,976 | ) | Subsidiary (Note 5) | ||||||||||||||||||||||||
| TestPro Investment Co., Ltd. |
NavCore Tech. Co., Ltd |
Taiwan | Sale and manufacturing of smart equipment, smart factory software and hardware integration and technical consulting service | 108,500 | 108,500 | 10,850 | 54 | 19,582 | (21,226 | ) | (11,515 | ) | Subsidiary (Note 5) | |||||||||||||||||||||||
| Prime Asia Investments Group, Ltd. |
Chunghwa Hsingta Co., Ltd. |
Hong Kong |
Investment | 375,274 | 375,274 | 1 | 100 | 174,171 | (1,109 | ) | (1,109 | ) | Subsidiary (Note 5) | |||||||||||||||||||||||
| Youth Co., Ltd. |
ISPOT Co., Ltd. |
Taiwan | Sale of information and communication technologies products | 53,021 | 53,021 | — | 100 | 13,428 | (5 | ) | (21 | ) | Subsidiary (Note 5) | |||||||||||||||||||||||
| Aval Technologies Co., Ltd. |
Wiin Technology Co., Ltd. |
Taiwan | Sale of information and communication technologies products | 29,550 | 29,550 | 5,029 | 100 | 56,124 | 3,524 | 3,524 | Subsidiary (Note 5) | |||||||||||||||||||||||||
| CHYP Multimedia Marketing & Communications Co., Ltd |
Click Force Marketing Company |
Taiwan | Advertisement services | 44,607 | 44,607 | 2,450 | 49 | 46,731 | (8,927 | ) | (4,280 | ) | Associate | |||||||||||||||||||||||
| International Integrated Systems, Inc. |
Unitronics Technology Corp. |
Taiwan | Development and maintenance of information system | 55,610 | 55,610 | 5,067 | 100 | 60,980 | (1,133 | ) | (1,133 | ) | Subsidiary (Note 5) | |||||||||||||||||||||||
| CHT Security Co., Ltd. |
Baohwa Trust Co., Ltd. |
Taiwan | VR integration and AIoT security services | 20,000 | 20,000 | 2,000 | 25 | 16,364 | 17,591 | 4,397 | Associate | |||||||||||||||||||||||||
| Note 1: | The amounts were based on reviewed financial statements. |
| Note 2: | Recognized gain (loss) of investees includes amortization of differences between the investment cost and net value and elimination of unrealized transactions. |
| Note 3: | Recognized gain (loss) and carrying value of the investees did not include the adjustment of the difference between the accounting treatment on standalone basis and consolidated basis as a result of the application of IFRS 15. |
| Note 4: | Investments in mainland China are included in Table 6. |
| Note 5: | The amount was eliminated upon consolidation. |
| Note 6: | CVC was approved to end and dissolve its business in November 2024, and CVC completed its liquidation in August 2025. |
(Concluded)
- 89 -
TABLE 6
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
INVESTMENTS IN MAINLAND CHINA
NINE MONTHS ENDED SEPTEMBER 30, 2025
(Amounts in Thousands of New Taiwan Dollars)
| Investee |
Main Businesses and Products |
Total Amount of Paid-in Capital |
Investment Type (Note 1) |
Accumulated Outflow of Investment from Taiwan as of January 1, 2025 |
Investment Flows |
Accumulated Outflow of Investment from Taiwan as of September 30, 2025 |
Net Income (Loss) of the Investee |
% Ownership of Direct or Indirect Investment |
Investment Gain (Loss) (Note 2) |
Carrying Value as of September 30, 2025 |
Accumulated Inward Remittance of Earnings as of September 30, 2025 |
Note | ||||||||||||||||||||||||||||||||||||
| Outflow | Inflow | |||||||||||||||||||||||||||||||||||||||||||||||
| Chunghwa Telecom (China) Co., Ltd. |
Integrated information and communication solution services for enterprise clients, and intelligent energy network service | $ | 177,176 | 2 | $ | 177,176 | $ | — | $ | — | $ | 177,176 | $ | — | 100 | $ | — | $ | — | $ | — | |
Notes 6 and 9 |
| ||||||||||||||||||||||||
| Jiangsu Zhenghua Information Technology Company, LLC |
Providing intelligent energy saving solution and intelligent buildings services | 189,410 | 2 | 142,057 | — | — | 142,057 | — | 75 | — | — | — | |
Notes 7 and 9 |
| |||||||||||||||||||||||||||||||||
| Shanghai Taihua Electronic Technology Limited |
Design of printed circuit board and related consultation service | 51,233 | 2 | 51,233 | — | — | 51,233 | 639 | 100 | 639 | 9,354 | — | |
Notes 8 and 9 |
| |||||||||||||||||||||||||||||||||
| Su Zhou Precision Test Tech. Ltd. |
Assembly processed of circuit board, design of printed circuit board and related consultation service | 119,199 | 2 | 119,199 | — | — | 119,199 | (28,703 | ) | 100 | (28,703 | ) | 120,820 | — | |
Notes 8 and 9 |
| |||||||||||||||||||||||||||||||
| Shanghai Chief Telecom Co., Ltd. |
Telecommunications and internet service | 10,150 | 1 | 4,973 | — | — | 4,973 | 4,374 | 49 | 2,143 | 7,523 | 10,194 | Note 9 | |||||||||||||||||||||||||||||||||||
| Investee |
Accumulated Investment in Mainland China as of September 30, 2025 |
Investment Amounts Authorized by Investment Commission, MOEA |
Upper Limit on Investment Stipulated by Investment Commission, MOEA |
|||||||||
| Chunghwa Telecom Co., Ltd. (Note 3) |
$ | 319,233 | $ | 319,233 | $ | 234,257,923 | ||||||
| Chunghwa Precision Test Tech. Co., Ltd. and its subsidiaries (Note 4) |
170,432 | 216,185 | 5,092,315 | |||||||||
| CHIEF Telecom Inc. and its subsidiaries (Note 5) |
4,973 | 4,973 | 2,305,519 | |||||||||
| Note 1: | Investments are divided into three categories as follows: |
| a. | Direct investment. |
| b. | Investments through a holding company registered in a third region. |
| c. | Others. |
| Note 2: | The amounts were calculated based on the investee’s reviewed financial statements. |
| Note 3: | Chunghwa Telecom Co., Ltd. was calculated based on the consolidated net assets value of Chunghwa Telecom Co., Ltd. |
| Note 4: | Chunghwa Precision Test Tech. Co., Ltd. and its subsidiaries were calculated based on the consolidated net assets value of Chunghwa Precision Test Tech. Co., Ltd. |
| Note 5: | CHIEF Telecom Inc. and its subsidiaries were calculated based on the consolidated net assets value of CHIEF Telecom Inc. |
| Note 6: | Chunghwa Telecom (China) Co., Ltd., a reinvestment through Chunghwa Hsingta Co., Ltd., completed its liquidation in October 2022. |
| Note 7: | Jiangsu Zhenhua Information Technology Company, LLC., a reinvestment through Chunghwa Hsingta Co., Ltd., completed its liquidation in December 2018. |
| Note 8: | Shanghai Taihua Electronic Technology Limited and Su Zhou Precision Test Tech. Ltd. were reinvestments through Chunghwa Precision Test Tech. International, Ltd. |
| Note 9: | The amount was eliminated upon consolidation. |
- 90 -
TABLE 7
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS
NINE MONTHS ENDED SEPTEMBER 30, 2025
(Amounts in Thousands of New Taiwan Dollars)
| Year |
No. (Note 1) |
Company Name |
Related Party |
Nature of Relationship (Note 2) |
Transaction Details | |||||||||||||||
| Financial Statement Account |
Amount (Note 5) |
Payment Terms (Note 3) |
% to Total Sales or Assets (Note 4) | |||||||||||||||||
| 2025 |
0 | Chunghwa Telecom Co., Ltd. | Senao International Co., Ltd. | a | Accounts receivable | $ | 492,881 | — | — | |||||||||||
| Accrued custodial receipts | 170,107 | — | — | |||||||||||||||||
| Accounts payable | 948,744 | — | — | |||||||||||||||||
| Amounts collected for others | 169,122 | — | — | |||||||||||||||||
| Revenues | 2,855,035 | — | 2 | |||||||||||||||||
| Operating costs and expenses | 944,629 | — | 1 | |||||||||||||||||
| CHIEF Telecom Inc. | a | Revenues | 391,463 | — | — | |||||||||||||||
| Operating costs and expenses | 101,930 | — | — | |||||||||||||||||
| Chunghwa System Integration Co., Ltd. | a | Accounts payable | 377,756 | — | — | |||||||||||||||
| Operating costs and expenses | 911,949 | — | 1 | |||||||||||||||||
| Honghwa International Co., Ltd. | a | Accounts payable | 1,192,367 | — | — | |||||||||||||||
| Revenues | 168,028 | — | — | |||||||||||||||||
| Operating costs and expenses | 5,280,798 | — | 3 | |||||||||||||||||
| Donghwa Telecom Co., Ltd. | a | Revenues | 139,527 | — | — | |||||||||||||||
| Operating costs and expenses | 375,717 | — | — | |||||||||||||||||
| Chunghwa Telecom Global Inc. | a | Revenues | 104,971 | — | — | |||||||||||||||
| Operating costs and expenses | 212,575 | — | — | |||||||||||||||||
| CHT Security Co., Ltd. | a | Operating costs and expenses | 260,642 | — | — | |||||||||||||||
| International Integrated Systems, Inc. | a | Operating costs and expenses | 522,208 | — | — | |||||||||||||||
| Chunghwa Telecom Singapore Pte., Ltd. | a | Accounts payable | 172,195 | — | — | |||||||||||||||
| Operating costs and expenses | 138,160 | — | — | |||||||||||||||||
| Senyoung Insurance Agent Co., Ltd. | a | Revenues | 121,770 | — | — | |||||||||||||||
| Note 1: | Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as follows: |
| a. | “0” for the Company. |
| b. | Subsidiaries are numbered from “1”. |
| Note 2: | Related party transactions are divided into three categories as follows: |
| a. | The Company to subsidiaries. |
| b. | Subsidiaries to the Company. |
| c. | Subsidiaries to subsidiaries. |
| Note 3: | Transaction terms with the related parties were determined in accordance with mutual agreements when there were no similar transactions with third parties. Other transactions with related parties were not significantly different from those with third parties. |
| Note 4: | For assets and liabilities, amount is shown as a percentage to consolidated total assets as of September 30, 2025, while revenues, costs and expenses are shown as a percentage to consolidated revenues for the nine months ended September 30, 2025. |
| Note 5: | The amount was eliminated upon consolidation. |
- 91 -
Exhibit 99.3
Chunghwa Telecom Co., Ltd. and Subsidiaries
Consolidated Financial Statements for the
Nine Months Ended September 30, 2025 and 2024
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Millions of New Taiwan Dollars)
| September 30, 2025 (Unaudited) |
December 31, 2024 (Audited) |
September 30, 2024 (Unaudited) |
||||||||||||||||||||||
| ASSETS |
Amount | % | Amount | % | Amount | % | ||||||||||||||||||
| CURRENT ASSETS |
||||||||||||||||||||||||
| Cash and cash equivalents |
$ | 23,527 | 5 | $ | 36,260 | 7 | $ | 31,215 | 6 | |||||||||||||||
| Financial assets at fair value through profit or loss |
1 | — | — | — | 1 | — | ||||||||||||||||||
| Hedging financial assets |
6 | — | 1 | — | — | — | ||||||||||||||||||
| Contract assets |
8,052 | 2 | 8,401 | 1 | 7,444 | 1 | ||||||||||||||||||
| Trade notes and accounts receivable, net |
26,521 | 5 | 26,026 | 5 | 23,086 | 5 | ||||||||||||||||||
| Receivables from related parties |
234 | — | 193 | — | 182 | — | ||||||||||||||||||
| Inventories |
13,209 | 3 | 12,087 | 2 | 11,807 | 2 | ||||||||||||||||||
| Prepayments |
6,420 | 1 | 3,138 | 1 | 5,933 | 1 | ||||||||||||||||||
| Other current monetary assets |
17,489 | 3 | 23,408 | 4 | 14,693 | 3 | ||||||||||||||||||
| Incremental costs of obtaining contracts |
339 | — | 339 | — | 339 | — | ||||||||||||||||||
| Other current assets |
3,990 | 1 | 3,115 | 1 | 4,223 | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total current assets |
99,788 | 20 | 112,968 | 21 | 98,923 | 19 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| NONCURRENT ASSETS |
||||||||||||||||||||||||
| Financial assets at fair value through profit or loss |
1,222 | — | 1,005 | — | 1,033 | — | ||||||||||||||||||
| Financial assets at fair value through other comprehensive income |
5,683 | 1 | 4,667 | 1 | 4,808 | 1 | ||||||||||||||||||
| Financial assets at amortized cost |
2,000 | — | 2,000 | — | — | — | ||||||||||||||||||
| Investments accounted for using equity method |
8,631 | 2 | 8,879 | 2 | 8,558 | 2 | ||||||||||||||||||
| Contract assets |
4,483 | 1 | 4,327 | 1 | 4,244 | 1 | ||||||||||||||||||
| Property, plant and equipment |
283,740 | 55 | 289,840 | 54 | 283,083 | 56 | ||||||||||||||||||
| Right-of-use assets |
11,055 | 2 | 10,912 | 2 | 11,002 | 2 | ||||||||||||||||||
| Investment properties |
12,304 | 3 | 12,302 | 2 | 11,642 | 2 | ||||||||||||||||||
| Intangible assets |
61,373 | 12 | 66,283 | 12 | 67,858 | 13 | ||||||||||||||||||
| Deferred income tax assets |
1,729 | — | 1,661 | — | 2,055 | — | ||||||||||||||||||
| Incremental costs of obtaining contracts |
1,133 | — | 1,222 | — | 1,125 | — | ||||||||||||||||||
| Net defined benefit assets |
9,373 | 2 | 8,884 | 2 | 6,417 | 2 | ||||||||||||||||||
| Prepayments |
5,738 | 1 | 4,461 | 1 | 4,144 | 1 | ||||||||||||||||||
| Other noncurrent assets |
4,651 | 1 | 4,886 | 2 | 4,543 | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total noncurrent assets |
413,115 | 80 | 421,329 | 79 | 410,512 | 81 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| TOTAL |
$ | 512,903 | 100 | $ | 534,297 | 100 | $ | 509,435 | 100 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| September 30, 2025 (Unaudited) |
December 31, 2024 (Audited) |
September 30, 2024 (Unaudited) |
||||||||||||||||||||||
| LIABILITIES AND EQUITY | Amount | % | Amount | % | Amount | % | ||||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||||||||||
| Short-term loans |
$ | 755 | — | $ | 215 | — | $ | 430 | — | |||||||||||||||
| Financial liabilities at fair value through profit or loss |
— | — | — | — | 1 | — | ||||||||||||||||||
| Hedging financial liabilities |
— | — | 2 | — | 1 | — | ||||||||||||||||||
| Contract liabilities |
19,010 | 4 | 16,301 | 3 | 16,239 | 3 | ||||||||||||||||||
| Trade notes and accounts payable |
13,471 | 3 | 17,743 | 3 | 12,380 | 3 | ||||||||||||||||||
| Payables to related parties |
121 | — | 480 | — | 196 | — | ||||||||||||||||||
| Current tax liabilities |
4,602 | 1 | 6,822 | 1 | 3,944 | 1 | ||||||||||||||||||
| Lease liabilities |
3,811 | 1 | 3,558 | 1 | 3,539 | 1 | ||||||||||||||||||
| Other payables |
23,055 | 4 | 26,581 | 5 | 21,693 | 4 | ||||||||||||||||||
| Provisions |
437 | — | 442 | — | 309 | — | ||||||||||||||||||
| Current portion of long-term liabilities |
1,900 | — | 8,803 | 2 | 8,798 | 2 | ||||||||||||||||||
| Other current liabilities |
958 | — | 1,050 | — | 1,249 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total current liabilities |
68,120 | 13 | 81,997 | 15 | 68,779 | 14 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| NONCURRENT LIABILITIES | ||||||||||||||||||||||||
| Long-term loans |
1,600 | — | 1,631 | 1 | 1,600 | — | ||||||||||||||||||
| Bonds payable |
23,287 | 5 | 21,689 | 4 | 21,688 | 4 | ||||||||||||||||||
| Contract liabilities |
6,599 | 1 | 7,541 | 2 | 7,639 | 2 | ||||||||||||||||||
| Deferred income taxes liabilities |
2,742 | 1 | 2,658 | 1 | 2,596 | 2 | ||||||||||||||||||
| Provisions |
319 | — | 535 | — | 501 | — | ||||||||||||||||||
| Lease liabilities |
7,226 | 2 | 7,334 | 1 | 7,457 | 1 | ||||||||||||||||||
| Customers’ deposits |
5,227 | 1 | 5,311 | 1 | 5,115 | 1 | ||||||||||||||||||
| Net defined benefit liabilities |
2,148 | — | 2,107 | — | 2,133 | — | ||||||||||||||||||
| Other noncurrent liabilities |
7,000 | 1 | 7,688 | 1 | 6,933 | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total noncurrent liabilities |
56,148 | 11 | 56,494 | 11 | 55,662 | 11 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total liabilities |
124,268 | 24 | 138,491 | 26 | 124,441 | 25 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT | ||||||||||||||||||||||||
| Common stocks |
77,574 | 15 | 77,574 | 15 | 77,574 | 15 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Additional paid-in capital |
150,594 | 29 | 150,054 | 28 | 150,049 | 29 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Retained earnings |
||||||||||||||||||||||||
| Legal reserve |
77,574 | 15 | 77,574 | 15 | 77,574 | 15 | ||||||||||||||||||
| Special reserve |
2,676 | 1 | 2,676 | — | 2,676 | 1 | ||||||||||||||||||
| Unappropriated earnings |
65,469 | 13 | 74,362 | 14 | 64,123 | 13 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total retained earnings |
145,719 | 29 | 154,612 | 29 | 144,373 | 29 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Others |
1,098 | — | 586 | — | 561 | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total equity attributable to stockholders of the parent |
374,985 | 73 | 382,826 | 72 | 372,557 | 73 | ||||||||||||||||||
| NONCONTROLLING INTERESTS | 13,650 | 3 | 12,980 | 2 | 12,437 | 2 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total equity |
388,635 | 76 | 395,806 | 74 | 384,994 | 75 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| TOTAL | $ | 512,903 | 100 | $ | 534,297 | 100 | $ | 509,435 | 100 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
- 1 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Millions of New Taiwan Dollars, Except Earnings Per Share)
(Unaudited)
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
| REVENUES |
$ | 57,924 | 100 | $ | 55,614 | 100 | $ | 170,463 | 100 | $ | 164,673 | 100 | ||||||||||||||||||||
| OPERATING COSTS |
36,413 | 62 | 35,208 | 63 | 105,571 | 62 | 102,948 | 63 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| GROSS PROFIT |
21,511 | 38 | 20,406 | 37 | 64,892 | 38 | 61,725 | 37 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| OPERATING EXPENSES |
||||||||||||||||||||||||||||||||
| Marketing |
6,418 | 11 | 6,294 | 11 | 18,970 | 11 | 18,416 | 11 | ||||||||||||||||||||||||
| General and administrative |
1,785 | 3 | 1,663 | 3 | 5,373 | 3 | 4,980 | 3 | ||||||||||||||||||||||||
| Research and development |
1,098 | 2 | 1,067 | 2 | 3,229 | 2 | 3,015 | 2 | ||||||||||||||||||||||||
| Expected credit loss (reversal of credit loss) |
113 | — | (4 | ) | — | 161 | — | 76 | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total operating expenses |
9,414 | 16 | 9,020 | 16 | 27,733 | 16 | 26,487 | 16 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| OTHER INCOME AND EXPENSES |
2 | — | (9 | ) | — | 8 | — | (10 | ) | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| INCOME FROM OPERATIONS |
12,099 | 22 | 11,377 | 21 | 37,167 | 22 | 35,228 | 21 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| NON-OPERATING INCOME AND EXPENSES |
||||||||||||||||||||||||||||||||
| Interest income |
181 | — | 173 | — | 695 | — | 568 | — | ||||||||||||||||||||||||
| Other income |
62 | — | 94 | — | 443 | — | 419 | — | ||||||||||||||||||||||||
| Other gains and losses |
(52 | ) | — | (109 | ) | — | (46 | ) | — | (142 | ) | — | ||||||||||||||||||||
| Interest expenses |
(91 | ) | — | (86 | ) | — | (273 | ) | — | (252 | ) | — | ||||||||||||||||||||
| Share of profits of associates and joint ventures accounted for using equity method |
55 | — | 37 | — | 98 | — | 74 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total non-operating income and expenses |
155 | — | 109 | — | 917 | — | 667 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| INCOME BEFORE INCOME TAX |
12,254 | 22 | 11,486 | 21 | 38,084 | 22 | 35,895 | 21 | ||||||||||||||||||||||||
| INCOME TAX EXPENSE |
2,918 | 5 | 2,686 | 5 | 6,931 | 4 | 6,343 | 3 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| NET INCOME |
9,336 | 17 | 8,800 | 16 | 31,153 | 18 | 29,552 | 18 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| TOTAL OTHER COMPREHENSIVE INCOME (LOSS) |
||||||||||||||||||||||||||||||||
| Items that will not be reclassified to profit or loss: |
||||||||||||||||||||||||||||||||
| Unrealized gain or loss on investments in equity instruments at fair value through other comprehensive income |
(283 | ) | — | (155 | ) | — | 754 | 1 | 86 | — | ||||||||||||||||||||||
| Gain or loss on hedging instruments subject to basis adjustment |
19 | — | (1 | ) | — | 7 | — | (1 | ) | — | ||||||||||||||||||||||
| Share of other comprehensive income (loss) of associates and joint ventures |
— | — | (1 | ) | — | (1 | ) | — | — | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (264 | ) | — | (157 | ) | — | 760 | 1 | 85 | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||||||||||||||||||
| Exchange differences arising from the translation of the foreign operations |
161 | — | (22 | ) | — | (270 | ) | — | 115 | — | ||||||||||||||||||||||
(Continued)
- 2 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Millions of New Taiwan Dollars, Except Earnings Per Share)
(Unaudited)
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||
| Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
| Share of other comprehensive income (loss) of associates and joint ventures |
$ | 19 | — | $ | 20 | — | $ | (4 | ) | — | $ | 42 | — | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| 180 | — | (2 | ) | — | (274 | ) | — | 157 | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total other comprehensive income (loss), net of income tax |
(84 | ) | — | (159 | ) | — | 486 | 1 | 242 | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| TOTAL COMPREHENSIVE INCOME |
$ | 9,252 | 17 | $ | 8,641 | 16 | $ | 31,639 | 19 | $ | 29,794 | 18 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| NET INCOME ATTRIBUTABLE TO |
||||||||||||||||||||||||||||||||
| Stockholders of the parent |
$ | 8,941 | 16 | $ | 8,534 | 16 | $ | 29,896 | 17 | $ | 28,751 | 18 | ||||||||||||||||||||
| Noncontrolling interests |
395 | 1 | 266 | — | 1,257 | 1 | 801 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 9,336 | 17 | $ | 8,800 | 16 | $ | 31,153 | 18 | $ | 29,552 | 18 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| COMPREHENSIVE INCOME ATTRIBUTABLE TO |
||||||||||||||||||||||||||||||||
| Stockholders of the parent |
$ | 8,846 | 16 | $ | 8,373 | 16 | $ | 30,406 | 18 | $ | 28,959 | 18 | ||||||||||||||||||||
| Noncontrolling interests |
406 | 1 | 268 | — | 1,233 | 1 | 835 | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| $ | 9,252 | 17 | $ | 8,641 | 16 | $ | 31,639 | 19 | $ | 29,794 | 18 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| EARNINGS PER SHARE |
||||||||||||||||||||||||||||||||
| Basic |
$ | 1.15 | $ | 1.11 | $ | 3.85 | $ | 3.71 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Diluted |
$ | 1.15 | $ | 1.10 | $ | 3.85 | $ | 3.70 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
(Concluded)
- 3 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In Millions of New Taiwan Dollars)
(Unaudited)
| Equity Attributable to Stockholders of the Parent | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Others | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exchange Differences Arising from the Translation of the
Foreign |
Unrealized Gain or Loss on Financial Assets at |
Gain or Loss on Hedging |
Total |
Total Equity Attributable to Stockholders |
||||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stocks |
Additional Paid-in Capital |
Legal Reserve |
Special Reserve |
Unappropriated Earnings |
Total Retained Earnings |
Noncontrolling Interests |
Total Equity |
|||||||||||||||||||||||||||||||||||||||||||||
| BALANCE, JANUARY 1, 2024 |
$ | 77,574 | $ | 149,828 | $ | 77,574 | $ | 2,899 | $ | 72,059 | $ | 152,532 | $ | (168 | ) | $ | 521 | $ | — | $ | 353 | $ | 380,287 | $ | 12,432 | $ | 392,719 | |||||||||||||||||||||||||
| Appropriation of 2023 earnings |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Special reserve |
— | — | — | (223 | ) | 223 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
| Cash dividends distributed by Chunghwa |
— | — | — | — | (36,910 | ) | (36,910 | ) | — | — | — | — | (36,910 | ) | — | (36,910 | ) | |||||||||||||||||||||||||||||||||||
| Cash dividends distributed by subsidiaries |
— | — | — | — | — | — | — | — | — | — | — | (898 | ) | (898 | ) | |||||||||||||||||||||||||||||||||||||
| Payment of unclaimed dividend |
— | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method |
— | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Actual disposal of interests in subsidiaries |
— | 224 | — | — | — | — | — | — | — | — | 224 | 35 | 259 | |||||||||||||||||||||||||||||||||||||||
| Net income for the nine months ended September 30, 2024 |
— | — | — | — | 28,751 | 28,751 | — | — | — | — | 28,751 | 801 | 29,552 | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) for the nine months ended September 30, 2024 |
— | — | — | — | — | — | 122 | 87 | (1 | ) | 208 | 208 | 34 | 242 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| Total comprehensive income (loss) for the nine months ended September 30, 2024 |
— | — | — | — | 28,751 | 28,751 | 122 | 87 | (1 | ) | 208 | 28,959 | 835 | 29,794 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| Changes in equities of subsidiaries |
— | (3 | ) | — | — | — | — | — | — | — | — | (3 | ) | 33 | 30 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| BALANCE, SEPTEMBER 30, 2024 |
$ | 77,574 | $ | 150,049 | $ | 77,574 | $ | 2,676 | $ | 64,123 | $ | 144,373 | $ | (46 | ) | $ | 608 | $ | (1 | ) | $ | 561 | $ | 372,557 | $ | 12,437 | $ | 384,994 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| BALANCE, JANUARY 1, 2025 |
$ | 77,574 | $ | 150,054 | $ | 77,574 | $ | 2,676 | $ | 74,362 | $ | 154,612 | $ | 23 | $ | 564 | $ | (1 | ) | $ | 586 | $ | 382,826 | $ | 12,980 | $ | 395,806 | |||||||||||||||||||||||||
| Appropriation of 2024 earnings |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash dividends distributed by Chunghwa |
— | — | — | — | (38,787 | ) | (38,787 | ) | — | — | — | — | (38,787 | ) | — | (38,787 | ) | |||||||||||||||||||||||||||||||||||
| Cash dividends distributed by subsidiaries |
— | — | — | — | — | — | — | — | — | — | — | (1,094 | ) | (1,094 | ) | |||||||||||||||||||||||||||||||||||||
| Unclaimed dividend |
— | 2 | — | — | — | — | — | — | — | — | 2 | — | 2 | |||||||||||||||||||||||||||||||||||||||
| Change in additional paid-in capital for not participating in the capital increase of subsidiaries |
— | 532 | — | — | — | — | — | — | — | — | 532 | 500 | 1,032 | |||||||||||||||||||||||||||||||||||||||
| Net income for the nine months ended September 30, 2025 |
— | — | — | — | 29,896 | 29,896 | — | — | — | — | 29,896 | 1,257 | 31,153 | |||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) for the nine months ended September 30, 2025 |
— | — | — | — | (2 | ) | (2 | ) | (260 | ) | 765 | 7 | 512 | 510 | (24 | ) | 486 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| Total comprehensive income (loss) for the nine months ended September 30, 2025 |
— | — | — | — | 29,894 | 29,894 | (260 | ) | 765 | 7 | 512 | 30,406 | 1,233 | 31,639 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| Changes in equities of subsidiaries |
— | 6 | — | — | — | — | — | — | — | — | 6 | 12 | 18 | |||||||||||||||||||||||||||||||||||||||
| Net increase in noncontrolling interests |
— | — | — | — | — | — | — | — | — | — | — | 19 | 19 | |||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| BALANCE, SEPTEMBER 30, 2025 |
$ | 77,574 | $ | 150,594 | $ | 77,574 | $ | 2,676 | $ | 65,469 | $ | 145,719 | $ | (237) | $ | 1,329 | $ | 6 | $ | 1,098 | $ | 374,985 | $ | 13,650 | $ | 388,635 | ||||||||||||||||||||||||||
|
|
|
|
|
|
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|
|
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|
|||||||||||||||||||||||||||
- 4 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions of New Taiwan Dollars)
(Unaudited)
| Nine Months Ended September 30 |
||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
| Income before income tax |
$ | 38,084 | $ | 35,895 | ||||
| Adjustments to reconcile income before income tax to net cash provided by operating activities: |
||||||||
| Depreciation |
25,050 | 24,658 | ||||||
| Amortization |
5,003 | 5,021 | ||||||
| Amortization of incremental costs of obtaining contracts |
709 | 671 | ||||||
| Expected credit loss |
161 | 76 | ||||||
| Valuation loss on financial assets and liabilities at fair value through profit or loss, net |
75 | 126 | ||||||
| Interest expense |
273 | 252 | ||||||
| Interest income |
(695 | ) | (568 | ) | ||||
| Dividend income |
(281 | ) | (240 | ) | ||||
| Compensation cost of share-based payment transactions |
4 | 7 | ||||||
| Share of profits of associates and joint ventures accounted for using equity method |
(98 | ) | (74 | ) | ||||
| Loss (gain) on disposal of property, plant and equipment |
(8 | ) | 10 | |||||
| Gain on disposal of financial instruments |
— | (1 | ) | |||||
| Loss (gain) on disposal of investments accounted for using equity method |
6 | (61 | ) | |||||
| Provision for impairment loss and obsolescence of inventory |
55 | 63 | ||||||
| Gain on disposal of subsidiaries |
(15 | ) | — | |||||
| Others |
(6 | ) | 13 | |||||
| Changes in operating assets and liabilities: |
||||||||
| Decrease (increase) in: |
||||||||
| Contract assets |
181 | (1,208 | ) | |||||
| Trade notes and accounts receivable |
(685 | ) | 1,707 | |||||
| Receivables from related parties |
(41 | ) | (104 | ) | ||||
| Inventories |
(1,184 | ) | (349 | ) | ||||
| Prepayments |
(3,075 | ) | (2,864 | ) | ||||
| Other current assets |
(877 | ) | (1,401 | ) | ||||
| Other current monetary assets |
(1,471 | ) | (11 | ) | ||||
| Incremental cost of obtaining contracts |
(620 | ) | (985 | ) | ||||
| Increase (decrease) in: |
||||||||
| Contract liabilities |
1,775 | 2,230 | ||||||
| Trade notes and accounts payable |
(4,262 | ) | (2,016 | ) | ||||
| Payables to related parties |
(359 | ) | (189 | ) | ||||
| Other payables |
(2,029 | ) | (1,626 | ) | ||||
| Provisions |
(221 | ) | (12 | ) | ||||
| Net defined benefit plans |
(448 | ) | (419 | ) | ||||
| Other current liabilities |
(95 | ) | 275 | |||||
|
|
|
|
|
|||||
| Cash generated from operations |
54,906 | 58,876 | ||||||
(Continued)
- 5 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions of New Taiwan Dollars)
(Unaudited)
| Nine Months Ended September 30 | ||||||||
| 2025 | 2024 | |||||||
| Interests paid |
$ | (312 | ) | $ | (288 | ) | ||
| Income taxes paid |
(9,137 | ) | (8,831 | ) | ||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
45,457 | 49,757 | ||||||
|
|
|
|
|
|||||
| CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
| Acquisition of financial assets at fair value through other comprehensive income |
(262 | ) | (313 | ) | ||||
| Proceeds from capital reduction of financial assets at fair value through other comprehensive income |
— | 6 | ||||||
| Acquisition of financial assets at fair value through profit or loss |
(297 | ) | (127 | ) | ||||
| Proceeds from disposal of financial assets at fair value through profit or loss |
— | 4 | ||||||
| Acquisition of investments accounted for using equity method |
(14 | ) | (400 | ) | ||||
| Proceeds from disposal of investments accounted for using equity method |
5 | — | ||||||
| Net cash outflow from loss of control of subsidiaries |
(9 | ) | — | |||||
| Acquisition of property, plant and equipment |
(17,301 | ) | (16,016 | ) | ||||
| Proceeds from disposal of property, plant and equipment |
15 | 10 | ||||||
| Acquisition of intangible assets |
(91 | ) | (137 | ) | ||||
| Acquisition of investment properties |
(7 | ) | — | |||||
| Acquisition of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months |
(43,443 | ) | (56,161 | ) | ||||
| Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months |
50,767 | 61,788 | ||||||
| Decrease in other noncurrent assets |
221 | 82 | ||||||
| Increase in prepayments for leases |
(1,485 | ) | (1,043 | ) | ||||
| Interests received |
687 | 605 | ||||||
| Dividends received |
564 | 571 | ||||||
| Proceeds from profit distribution of financial assets at fair value through profit or loss |
4 | 3 | ||||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(10,646 | ) | (11,128 | ) | ||||
|
|
|
|
|
|||||
| CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
| Proceeds from short-term loans |
2,880 | 720 | ||||||
| Repayment of short-term loans |
(2,275 | ) | (875 | ) | ||||
| Proceeds from issuance of bonds |
3,500 | — | ||||||
| Repayment of bonds payable |
(8,800 | ) | — | |||||
| Payments for transaction costs attributable to the issuance of bonds |
(5 | ) | — | |||||
(Continued)
- 6 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions of New Taiwan Dollars)
(Unaudited)
| Nine Months Ended September 30 | ||||||||
| 2025 | 2024 | |||||||
| Repayment of long-term loans |
$ | (35 | ) | $ | — | |||
| Decrease in customers’ deposits |
(75 | ) | (205 | ) | ||||
| Payments for the principal of lease liabilities |
(3,157 | ) | (2,924 | ) | ||||
| Decrease in other noncurrent liabilities |
(688 | ) | (473 | ) | ||||
| Cash dividends paid |
(38,787 | ) | (36,910 | ) | ||||
| Partial disposal of interests in subsidiaries without losing control |
— | 259 | ||||||
| Cash dividends distributed to noncontrolling interests |
(1,079 | ) | (887 | ) | ||||
| Change in other noncontrolling interests |
1,045 | 23 | ||||||
| Unclaimed dividend (payment of unclaimed dividend) |
2 | — | ||||||
|
|
|
|
|
|||||
| Net cash used in financing activities |
(47,474 | ) | (41,272 | ) | ||||
|
|
|
|
|
|||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
(70 | ) | 34 | |||||
|
|
|
|
|
|||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS |
(12,733 | ) | (2,609 | ) | ||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
36,260 | 33,824 | ||||||
|
|
|
|
|
|||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 23,527 | $ | 31,215 | ||||
|
|
|
|
|
|||||
(Concluded)
- 7 -
CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
NINE MONTHS ENDED SEPTEMBER 30, 2025 and 2024
(Unaudited)
STATEMENT OF COMPLIANCE
The Company has prepared its consolidated balance sheets as of September 30, 2025 and 2024, the related consolidated statements of comprehensive income for the three months ended September 30, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the nine months ended September 30, 2025 and 2024 in accordance with International Accounting Standards No. 34 “Interim Financial Reporting” as issued by the International Accounting Standard Board (IASB). The consolidated financial statements are incomplete as they omit the related footnote disclosures as required under International Financial Reporting Standards as issued by IASB.
- 8 -