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Equibles

6-K

Chunghwa Telecom Co Ltd (CHT)

6-K 2025-08-11 For: 2025-08-11
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Added on April 06, 2026

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 August 11, 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)

1

EXHIBIT INDEX

Exhibit Description
99.1 To announce the differences between consolidated financial statements for the six months ended June 30, 2025 under Taiwan-IFRSs and that under IFRSs
99.2 Consolidated Financial Statements for the Six Months Ended June 30, 2025 and 2024 and Independent Auditors’ Review Report pursuant to International Financial Reporting Standards adopted by ROC<br>(“Taiwan-IFRSs”)
99.3 Consolidated Financial Statements for the Six Months Ended June 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: August 11, 2025

Chunghwa Telecom Co., Ltd.
By: /s/ Wen-Hsin Hsu
Name: Wen-Hsin Hsu
Title: Chief Financial Officer

3

EX-99.1

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 six months ended June 30, 2025under Taiwan-IFRSs and that under IFRSs

To which item it meets—article 4 paragraph xx:47 (Form 1)

Date of events:2025/8/11

Contents:

1. Date of occurrence of the event:

2025/8/11

2. Year/Quarter of the financial report:

The second 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$10,604,626 thousand and NT$20,800,437 thousand, consolidated net income attributable to stockholders of the parent of NT$10,167,164 thousand and NT$19,966,358 thousand, and basic earnings per share of NT$1.31 and NT$2.57 for the three months and six months ended June 30, 2025, respectively. The Company also reported total consolidated assets of NT$544,484,355 thousand, total consolidated liabilities of NT$164,861,133 thousand, and total consolidated equity of NT$379,623,222 thousand as of June 30, 2025.

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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$12,085 million and NT$21,817 million, consolidated net income attributable to stockholders of the parent of NT$11,636 million and NT$20,955 million, and basic earnings per share of NT$1.50 and NT$2.70 for the three months and six months ended June 30, 2025, respectively. The Company also reported total consolidated assets of NT$544,295 million, total consolidated liabilities of NT$165,948 million, and total consolidated equity of NT$378,347 million as of June 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 was 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.

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EX-99.2

Exhibit 99.2

Chunghwa Telecom Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the

Six MonthsEnded June 30, 2025 and 2024 and

Independent Auditors’ Review Report

INDEPENDENT AUDITORS’ REVIEW REPORT

PWCR25001369

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 June 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three-month and six-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the six-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 June 30, 2025 and 2024, and of its consolidated financial performance for the three-month and six-month periods then ended and its consolidated cash flows for the six-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,<br>Chien-Yeh

For and on behalf of PricewaterhouseCoopers, Taiwan

August 8, 2025

Notice to Readers

Theaccompanying 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 theRepublic 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 theRepublic 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 errorsor misunderstandings that may derive from the translation.

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of NewTaiwan Dollars)

June 30, 2025 December 31, 2024 June 30, 2024
ASSETS Amount % Amount % Amount %
CURRENT ASSETS
Cash and cash equivalents (Notes 6, 14 and 38) $ 35,033,086 6 $ 36,259,689 6 $ 37,711,905 7
Financial assets at fair value through profit or loss (Note 7) 535 — 290 — 1,539 —
Hedging financial assets (Note 21) — — 1,133 — 313 —
Contract assets (Note 30) 8,061,646 2 8,401,343 2 7,495,318 1
Trade notes and accounts receivable, net (Notes 10 and 30) 23,649,161 5 26,025,696 5 23,630,846 5
Receivables from related parties (Note 38) 127,691 — 193,004 — 86,178 —
Inventories (Notes 11, 30, 39 and 40) 11,947,493 2 12,087,118 2 11,071,753 2
Prepayments (Note 12) 6,300,301 1 3,138,313 1 6,370,093 1
Other current monetary assets (Notes 13 and 38) 39,730,822 7 23,408,001 4 32,416,618 6
Incremental costs of obtaining contracts (Note 30) 338,581 — 339,172 — 281,637 —
Other current assets (Notes 20 and 39) 3,508,242 1 3,114,554 1 3,808,980 1
Total current assets 128,697,558 24 112,968,313 21 122,875,180 23
NONCURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7) 1,110,057 — 1,005,236 — 1,071,625 —
Financial assets at fair value through other comprehensive income (Note 8) 5,769,592 1 4,666,976 1 4,965,921 1
Financial assets at amortized cost (Note 9) 2,000,000 — 2,000,000 — — —
Investments accounted for using equity method (Note 15) 8,731,771 2 9,073,464 2 8,394,349 2
Contract assets (Note 30) 4,402,028 1 4,327,424 1 4,165,895 1
Property, plant and equipment (Notes 14, 16, 35, 39 and 40) 285,035,364 52 289,840,144 55 284,970,301 53
Right-of-use assets<br>(Notes 17 and 38) 11,121,371 2 10,912,329 2 11,130,387 2
Investment properties (Note 18) 12,281,328 2 12,301,719 2 11,505,658 2
Intangible assets (Notes 19 and 38) 63,003,077 12 66,283,202 12 69,488,813 13
Deferred income tax assets (Note 3) 1,746,964 — 1,661,402 — 2,063,121 —
Incremental costs of obtaining contracts (Note 30) 1,174,225 — 1,221,652 — 1,059,621 —
Net defined benefit assets (Note 3) 9,226,342 2 8,883,719 2 6,278,381 1
Prepayments (Notes 12 and 40) 5,457,342 1 4,461,017 1 3,895,015 1
Other noncurrent assets (Notes 20, 39 and 40) 4,727,336 1 4,885,230 1 4,571,973 1
Total noncurrent assets 415,786,797 76 421,523,514 79 413,561,060 77
TOTAL $ 544,484,355 100 $ 534,491,827 100 $ 536,436,240 100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans (Notes 14 and 22) $ 480,000 — $ 215,000 — $ 365,000 —
Financial liabilities at fair value through profit or loss (Note 7) 303 — — — 141 —
Hedging financial liabilities (Note 21) 13,155 — 1,907 — 212 —
Contract liabilities (Notes 30 and 40) 16,456,942 3 16,300,986 3 15,219,078 3
Trade notes and accounts payable (Note 25) 11,120,995 2 17,742,532 3 9,826,528 2
Payables to related parties (Note 38) 144,783 — 480,401 — 225,571 —
Current tax liabilities (Note 3) 5,336,587 1 4,718,103 1 4,747,572 1
Lease liabilities (Notes 17, 35 and 38) 3,803,522 1 3,557,874 1 3,561,502 1
Dividends payable (Note 29) 38,787,232 7 — — 36,909,931 7
Other payables (Notes 26 and 35) 23,170,450 4 26,581,353 5 22,466,992 4
Provisions (Note 27) 661,429 — 441,801 — 317,116 —
Current portion of long-term liabilities (Notes 23, 24 and 39) 10,707,503 2 8,802,526 2 1,600,000 —
Other current liabilities 946,990 — 1,050,559 — 978,980 —
Total current liabilities 111,629,891 20 79,893,042 15 96,218,623 18
NONCURRENT LIABILITIES
Long-term loans (Notes 23 and 39) 1,626,979 — 1,631,354 — — —
Bonds payable (Note 24) 19,791,510 4 21,689,326 4 30,485,537 6
Contract liabilities (Notes 30 and 40) 6,970,774 1 7,540,730 2 7,724,889 1
Deferred income tax liabilities (Note 3) 2,720,161 1 2,658,419 — 2,572,860 1
Provisions (Note 27) 317,449 — 534,684 — 498,285 —
Lease liabilities (Notes 17, 35 and 38) 7,236,033 1 7,333,503 2 7,452,555 1
Customers’ deposits (Note 38) 5,179,087 1 5,310,453 1 5,136,924 1
Net defined benefit liabilities (Note 3) 2,133,967 — 2,107,224 — 2,137,615 1
Other noncurrent liabilities 7,255,282 1 7,688,236 2 6,916,569 1
Total noncurrent liabilities 53,231,242 9 56,493,929 11 62,925,234 12
Total liabilities 164,861,133 29 136,386,971 26 159,143,857 30
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT (Notes 14 and 29)
Common stocks 77,574,465 15 77,574,465 15 77,574,465 14
Additional paid-in capital 171,587,138 32 171,587,279 32 171,351,359 32
Retained earnings
Legal reserve 77,574,465 15 77,574,465 15 77,574,465 14
Special reserve 2,675,419 — 2,675,419 — 2,675,419 1
Unappropriated earnings 36,130,783 7 54,953,379 10 35,143,469 7
Total retained earnings 116,380,667 22 135,203,263 25 115,393,353 22
Others 1,192,573 — 585,683 — 721,309 —
Total equity attributable to stockholders of the parent 366,734,843 69 384,950,690 72 365,040,486 68
NONCONTROLLING INTERESTS (Notes 14 and 29) 12,888,379 2 13,154,166 2 12,251,897 2
Total equity 379,623,222 71 398,104,856 74 377,292,383 70
TOTAL $ 544,484,355 100 $ 534,491,827 100 $ 536,436,240 100

The accompanying notes are an integral part of the consolidated financial statements.

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(InThousands of New Taiwan Dollars, Except Earnings Per Share)

Three Months Ended June 30 Six Months Ended June 30
2025 2024 2025 2024
Amount % Amount % Amount % Amount %
REVENUES (Notes 30, 38 and 44) $ 56,730,396 100 $ 54,115,733 100 $ 112,538,805 100 $ 109,059,204 100
OPERATING COSTS (Notes 11, 28, 30, 31 and 38) 34,955,117 62 33,286,141 62 69,158,355 61 67,740,433 62
GROSS PROFIT 21,775,279 38 20,829,592 38 43,380,450 39 41,318,771 38
OPERATING EXPENSES (Notes 10, 28, 31 and 38)
Marketing 6,410,909 11 6,189,996 11 12,551,537 11 12,121,515 11
General and administrative 1,794,679 3 1,680,050 3 3,588,178 3 3,317,157 3
Research and development 1,100,949 2 1,004,688 2 2,130,790 2 1,947,755 2
Expected credit loss (reversal of credit loss) (71,133 ) — 24,155 — 48,402 — 79,941 —
Total operating expenses 9,235,404 16 8,898,889 16 18,318,907 16 17,466,368 16
OTHER INCOME AND EXPENSES (Note 31) 5,196 — (3,209 ) — 6,214 — (689 ) —
INCOME FROM OPERATIONS 12,545,071 22 11,927,494 22 25,067,757 23 23,851,714 22
NON-OPERATING INCOME AND EXPENSES
Interest income (Note 38) 302,307 — 238,965 — 513,824 — 394,765 —
Other income (Notes 31 and 38) 341,293 1 287,633 1 379,741 — 325,402 —
Other gains and losses (Notes 14, 31, 37 and 38) 37,388 — (32,887 ) — 12,270 — (94,151 ) —
Interest expenses (Notes 17, 31 and 38) (92,180 ) — (83,173 ) — (181,537 ) — (166,460 ) —
Share of profits (loss) of associates and joint ventures accounted for using equity method (Note<br>15) (3,622 ) — 8,693 — 37,213 — 23,195 —
Total non-operating income and expenses 585,186 1 419,231 1 761,511 — 482,751 —
INCOME BEFORE INCOME TAX 13,130,257 23 12,346,725 23 25,829,268 23 24,334,465 22
INCOME TAX EXPENSE (Notes 3 and 32) 2,525,631 4 2,235,520 4 5,028,831 5 4,619,077 4
NET INCOME 10,604,626 19 10,111,205 19 20,800,437 18 19,715,388 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<br>comprehensive income (Notes 29 and 37) 469,192 1 (385,670 ) (1 ) 1,037,616 1 240,798 —
Gain or loss on hedging instruments subject to basis adjustment (Note 21) (13,185 ) — 72 — (12,381 ) — 145 —
Share of other comprehensive income (loss) of associates and joint ventures (Notes 15 and<br>29) (1,466 ) — 1,363 — (797 ) — 1,239 —
454,541 1 (384,235 ) (1 ) 1,024,438 1 242,182 —

(Continued)

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(InThousands of New Taiwan Dollars, Except Earnings Per Share)

Three Months Ended June 30 Six Months Ended June 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 $ (504,794 ) (1 ) $ 33,070 — $ (430,985 ) — $ 136,849 —
Share of other comprehensive income (loss) of associates and joint ventures (Notes 15 and<br>29) (30,651 ) — (4,262 ) — (23,383 ) — 21,370 —
(535,445 ) (1 ) 28,808 — (454,368 ) — 158,219 —
Total other comprehensive income (loss), net of income tax (80,904 ) — (355,427 ) (1 ) 570,070 1 400,401 —
TOTAL COMPREHENSIVE INCOME $ 10,523,722 19 $ 9,755,778 18 $ 21,370,507 19 $ 20,115,789 18
NET INCOME ATTRIBUTABLE TO
Stockholders of the parent $ 10,167,164 18 $ 9,819,867 17 $ 19,966,358 17 $ 19,211,286 18
Noncontrolling interests 437,462 1 291,338 1 834,079 1 504,102 —
$ 10,604,626 19 $ 10,111,205 18 $ 20,800,437 18 $ 19,715,388 18
COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent $ 10,127,478 18 $ 9,460,822 17 $ 20,571,526 18 $ 19,580,056 18
Noncontrolling interests 396,244 1 294,956 1 798,981 1 535,733 —
$ 10,523,722 19 $ 9,755,778 18 $ 21,370,507 19 $ 20,115,789 18
EARNINGS PER SHARE <br>(Note 33)
Basic $ 1.31 $ 1.27 $ 2.57 $ 2.48
Diluted $ 1.31 $ 1.27 $ 2.57 $ 2.47
The accompanying notes are an integral part of the consolidated financial statements. (Concluded)
--- ---
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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(InThousands of New Taiwan Dollars)

Equity Attributable to Stockholders of the Parent (Notes 14, 21 and 29)
Others
UnrealizedGain<br><br><br>or Loss on<br><br><br>FinancialAssets<br> <br>atFair<br> <br>Value<br> <br>ThroughOther<br> <br>ComprehensiveIncome
Exchange<br><br><br>Differences<br> <br>Arisingfromthe<br> <br>Translationof<br><br><br>the ForeignOperations
Retained Earnings Gain orLoss<br><br><br>on HedgingInstruments Noncontrolling<br><br><br>Interests(Notes 14 and29)
CommonStocks AdditionalPaid-inCapital LegalReserve SpecialReserve UnappropriatedEarnings 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 recognized by Chunghwa — — — — (36,909,931 ) — — — (36,909,931 ) — (36,909,931 )
Cash dividends recognized by subsidiaries — — — — — — — — — (897,678 ) (897,678 )
Change in additional paid-in capital from investments in<br>associates and joint ventures accounted for using equity method — 62,678 — — — — — — 62,678 (1,728 ) 60,950
Net income for the six months ended June 30, 2024 — — — — 19,211,286 — — — 19,211,286 504,102 19,715,388
Other comprehensive income for the six months ended June 30, 2024 — — — — 353 134,616 233,656 145 368,770 31,631 400,401
Total comprehensive income for the six months ended June 30, 2024 — — — — 19,211,639 134,616 233,656 145 19,580,056 535,733 20,115,789
Changes in equities of subsidiaries — (405 ) — — — — — — (405 ) 18,279 17,874
Net increase in noncontrolling interests — — — — — — — — — 1,039 1,039
BALANCE, JUNE 30, 2024 $ 77,574,465 $ 171,351,359 $ 77,574,465 $ 2,675,419 $ 35,143,469 $ (33,196 ) $ 754,404 $ 101 $ 365,040,486 $ 12,251,897 $ 377,292,383
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 recognized by Chunghwa — — — — (38,787,232 ) — — — (38,787,232 ) — (38,787,232 )
Cash dividends recognized by subsidiaries — — — — — — — — — (1,094,115 ) (1,094,115 )
Change in additional paid-in capital from investments in<br>associates and joint ventures accounted for using equity method — (6,128 ) — — — — — — (6,128 ) — (6,128 )
Net income for the six months ended June 30, 2025 — — — — 19,966,358 — — — 19,966,358 834,079 20,800,437
Other comprehensive income (loss) for the six months ended June 30, 2025 — — — — (1,722 ) (417,433 ) 1,036,704 (12,381 ) 605,168 (35,098 ) 570,070
Total comprehensive income (loss) for the six months ended June 30, 2025 — — — — 19,964,636 (417,433 ) 1,036,704 (12,381 ) 20,571,526 798,981 21,370,507
Changes in equities of subsidiaries — 5,987 — — — — — — 5,987 9,813 15,800
Net increase in noncontrolling interests — — — — — — — — — 19,534 19,534
BALANCE, JUNE 30, 2025 $ 77,574,465 $ 171,587,138 $ 77,574,465 $ 2,675,419 $ 36,130,783 $ (394,581 ) $ 1,600,309 $ (13,155 ) $ 366,734,843 $ 12,888,379 $ 379,623,222

The accompanying notes are an integral part of the consolidated financial statements.

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands ofNew Taiwan Dollars)

Six Months Ended June 30
2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax $ 25,829,268 $ 24,334,465
Adjustments for:
Depreciation 16,708,158 16,450,250
Amortization 3,335,748 3,344,912
Amortization of incremental costs of obtaining contracts 471,691 436,680
Expected credit loss 48,402 79,941
Valuation loss on financial assets and liabilities at fair value through profit or loss,<br>net 85,188 72,447
Interest expense 181,537 166,460
Interest income (513,824 ) (394,765 )
Dividend income (275,484 ) (234,965 )
Compensation cost of share-based payment transactions 2,326 4,629
Share of profits of associates and joint ventures accounted for using equity method (37,213 ) (23,195 )
Loss (gain) on disposal of property, plant and equipment (6,214 ) 689
Gain on disposal of financial instruments — (1,073 )
Provision for impairment loss and obsolescence of inventory 14,036 35,721
Gain on disposal of subsidiaries (15,290 ) —
Others (51,659 ) 33,275
Changes in operating assets and liabilities
Decrease (increase) in:
Contract assets 255,549 (1,181,575 )
Trade notes and accounts receivable 2,300,237 1,126,101
Receivables from related parties 65,313 (8,089 )
Inventories 119,068 413,291
Prepayments (2,968,772 ) (3,404,852 )
Other current assets (395,984 ) (986,721 )
Other current monetary assets (205,547 ) (70,888 )
Incremental cost of obtaining contracts (423,673 ) (627,606 )
Increase (decrease) in:
Contract liabilities (406,624 ) 1,295,199
Trade notes and accounts payable (6,612,199 ) (4,569,383 )
Payables to related parties (335,618 ) (159,518 )
Other payables (2,876,413 ) (2,126,880 )
Provisions 2,393 (7,272 )
Net defined benefit plans (315,880 ) (275,613 )
Other current liabilities (106,186 ) (3,719 )
Cash generated from operations 33,872,334 33,717,946
Interests paid (153,611 ) (138,204 )
Income taxes paid (4,435,812 ) (4,349,101 )
Net cash provided by operating activities 29,282,911 29,230,641

(Continued)

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands ofNew Taiwan Dollars)

Six Months Ended June 30
2025 2024
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income $ (65,000 ) $ (312,780 )
Proceeds from capital reduction of financial assets at fair value through other comprehensive<br>income — 3,326
Acquisition of financial assets at fair value through profit or loss (190,650 ) (112,695 )
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 ) (111,914 )
Net cash outflow from loss of control of subsidiaries (8,664 ) —
Acquisition of property, plant and equipment (11,490,083 ) (10,250,655 )
Proceeds from disposal of property, plant and equipment 10,142 8,435
Acquisition of intangible assets (54,118 ) (102,453 )
Acquisition of investment properties (2,067 ) —
Acquisition of time deposits, negotiable certificates of deposit and commercial paper with<br>maturities of more than three months (34,493,704 ) (47,077,553 )
Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper<br>with maturities of more than three months 18,770,898 35,505,117
Decrease in other noncurrent assets 129,090 55,271
Increase in prepayments for leases (1,190,836 ) (690,202 )
Interests received 368,914 380,842
Dividends received 158,840 153,262
Proceeds from profit distribution of financial assets at fair value through profit or<br>loss 699 435
Net cash used in investing activities (28,070,939 ) (22,547,096 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans 580,000 540,000
Repayments of short-term loans (250,000 ) (760,000 )
Decrease in customers’ deposits (121,623 ) (172,813 )
Payments for the principal of lease liabilities (2,116,692 ) (1,941,741 )
Decrease in other noncurrent liabilities (432,954 ) (488,989 )
Cash dividends distributed to noncontrolling interests (688 ) (4,283 )
Change in other noncontrolling interests 13,474 14,284
Net cash used in financing activities (2,328,483 ) (2,813,542 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (110,092 ) 18,018

(Continued)

  • 7 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands ofNew Taiwan Dollars)

Six Months Ended June 30
2025 2024
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ (1,226,603 ) $ 3,888,021
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 36,259,689 33,823,884
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 35,033,086 $ 37,711,905
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

SIX MONTHSENDED JUNE 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 August 8, 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 June 30,<br><br><br>2025 December 31,2024 June 30,<br><br><br>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<br>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<br>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<br>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<br>hardware — 37 37 c.
Honghwa International Co., Ltd. (“HHI”) Telecommunications engineering, sales agent of mobile phone plan application and other business<br>services, etc. 100 100 100
Chunghwa Leading Photonics Tech Co., Ltd. (“CLPT”) Production and sale of electronic components and finished products 70 70 75 d.
Chunghwa Telecom (Thailand) Co., Ltd. (“CHTT”) International private leased circuit, IP VPN service, ICT and cloud VAS services 100 100 100

(Continued)

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Percentage of Ownership Interests
Name of Investor Name of Investee Main Businesses and Products June 30,<br><br><br>2025 December 31,2024 June 30,<br><br><br>2024 Note
CHT Security Co., Ltd. (“CHTSC”) Computing equipment installation, wholesale of computing and business machinery equipment and<br>software, management consulting services, data processing services, digital information supply services and internet identity services 62 63 66 e.
International Integrated Systems, Inc. (“IISI”) IT solution provider, IT application consultation, system integration and package solution 50 50 51 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 — 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<br>board 100 100 100
CHPT Japan Co., Ltd. (“CHPT (JP)”) Related services of electronic parts, machinery processed products and printed circuit<br>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<br>technical consulting service 54 54 54

(Continued)

  • 11 -
Percentage of Ownership Interests
Name of Investor Name of Investee Main Businesses and Products June 30,<br><br><br>2025 December 31,2024 June 30,<br><br><br>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<br>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<br>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<br>Company’s ownership interest in CHIEF decreased to 58.57% and 58.56% as of December 31, 2024 and June 30, 2025, respectively.
--- ---
c. Chunghwa controlled more than half of seats of the Board of Directors of CHST as of December 31, 2024;<br>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<br>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<br>interest in CLPT decreased to 69.87% as of December 31, 2024.
--- ---
e. CHTSC issued new shares in January 2024, March 2024, December 2024, February 2025 and May 2025 as its employees<br>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<br>decreased to 66.08%, 63.45% and 62.34% as of June 30, 2024, December 31, 2024 and June 30, 2025, respectively.
--- ---
f. Chunghwa disposed of some shares of IISI in August 2024 before IISI traded its shares on the emerging stock<br>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,<br>the Company treated IISI as a subsidiary.
--- ---
g. Chunghwa invested and established CDCC Capital in February 2024. Chunghwa obtained 100% ownership interest of<br>CDCC Capital.
--- ---
h. Chunghwa invested and established CHTEU in July 2024. Chunghwa obtained 100% ownership interest of CHTEU.<br>
--- ---
  • 12 -
i. CHIEF has more than half of seats of the Board of Directors of SCT according to the mutual agreements among<br>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<br>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<br>of the Company.
--- ---
k. CHTS established CHTM in June 2025 and obtained 100% ownership interest in CHTM. As of June 30, 2025, the<br>investment capital had not been remitted.
--- ---

The following diagram presented information regarding the relationship and percentages of ownership interests between Chunghwa and its subsidiaries as of June 30, 2025.

LOGO

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<br>
--- ---

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. 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<br><br><br>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 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
Amendments to IFRS Accounting Standards Annual Improvements—Volume 11 January 1, 2026
  • 14 -

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
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Cash
Cash on hand $ 469,823 $ 443,745 $ 431,744
Bank deposits 13,400,149 13,242,716 11,250,075
13,869,972 13,686,461 11,681,819
Cash equivalents (with maturities of less than three months)
Commercial paper 8,834,626 16,887,390 15,960,205
Negotiable certificates of deposit 6,900,000 2,800,000 6,800,000
Time deposits 5,427,116 2,883,479 3,268,548
Stimulus vouchers 1,372 2,359 1,333
21,163,114 22,573,228 26,030,086
$ 35,033,086 $ 36,259,689 $ 37,711,905

The annual yield rates of bank deposits, commercial paper, negotiable certificates of deposit and time deposits as of balance sheet dates were as follows:

June 30, 2025 December 31,2024 June 30, 2024
Bank deposits 0.00%~2.55% 0.00%~2.55% 0.00%~3.10%
Commercial paper 0.96%~1.50% 0.95%~1.56% 0.95%~1.48%
Negotiable certificates of deposit 1.46%~1.67% 1.55%~1.70% 1.46%~1.48%
Time deposits 0.01%~4.45% 0.01%~4.90% 0.01%~5.60%
7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
--- ---
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Financial assets-current
Mandatorily measured at FVTPL
Derivatives (not designated for hedge)
Forward exchange contracts $ 535 $ 290 $ 1,100
Non-derivatives
Listed stocks - domestic — — 439
$ 535 $ 290 $ 1,539

(Continued)

  • 15 -
June 30, 2025 December 31,2024 June 30, 2024
Financial assets-noncurrent
Mandatorily measured at FVTPL
Non-derivatives
Non-listed stocks - domestic $ 583,317 $ 628,737 $ 632,868
Non-listed stocks - foreign 31,431 32,415 91,718
Limited partnership - domestic 430,965 307,327 315,340
Other investing agreements 64,344 36,757 31,699
$ 1,110,057 $ 1,005,236 $ 1,071,625
Financial liabilities-current
Held for trading
Derivatives (not designated for hedge)
Forward exchange contracts $ 303 $ — $ 141

(Concluded)

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 June 30, 2025, Chunghwa invested $60,000 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 June 30, 2025, Chunghwa invested $400,000 thousand.

Outstanding forward exchange contracts not designated for hedge as of balance sheet dates were as follows:

Currency Contract Amount (InThousands)
June 30, 2025
Forward exchange contracts - buy NT/ July 2025 NT$124,584/USD4,197
December 31, 2024
Forward exchange contracts - buy NT/ March 2025 NT$10,177/EUR300
Forward exchange contracts - buy NT/ January 2025 NT$45,879/USD1,408
June 30, 2024
Forward exchange contracts - buy NT/ September 2024 NT$220,050/EUR6,400

All values are in US Dollars.

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.

  • 16 -
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NONCURRENT
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Domestic investments
Listed and emerging stocks $ 102,747 $ 126,013 $ 217,190
Non-listed stocks 4,871,374 3,873,647 4,057,183
Foreign investments
Non-listed stocks 795,471 667,316 691,548
$ 5,769,592 $ 4,666,976 $ 4,965,921

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
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Corporate bonds $ 2,000,000 $ 2,000,000 $ —

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.

10. TRADE NOTES AND ACCOUNTS RECEIVABLE, NET
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- --- --- --- ---
Trade notes and accounts receivable $ 24,776,258 $ 27,168,306 $ 24,748,287
Less: Loss allowance (1,127,097 ) (1,142,610 ) (1,117,441 )
$ 23,649,161 $ 26,025,696 $ 23,630,846

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.

  • 17 -

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:

June 30, 2025

Not Past Due Past Due Lessthan 30 Days Past Due<br><br><br>31 to 60 Days Past Due<br><br><br>61 to 90 Days Past Due<br><br><br>91 to 120 Days Past Due<br><br><br>121 to 180 Days Past Due<br><br><br>over 180 Days Total
Telecommunications<br><br><br>business
Expected credit loss rate (Note a) 0%~1% 1%~21% 3%~68% 15%~84% 25%~91% 52%~96% 100%
Gross carrying amount $ 16,503,570 $ 330,167 $ 125,337 $ 66,135 $ 40,942 $ 30,956 $ 602,584 $ 17,699,691
Loss allowance (lifetime ECL) (50,603 ) (25,789 ) (34,914 ) (32,760 ) (25,622 ) (22,463 ) (602,584 ) (794,735 )
Amortized cost $ 16,452,967 $ 304,378 $ 90,423 $ 33,375 $ 15,320 $ 8,493 $ — $ 16,904,956
Project business
Expected credit loss rate (Note b) 0%~5% 5% 10% 30% 50% 80% 100 %
Gross carrying amount $ 3,058,330 $ 211,215 $ 19,680 $ 2,693 $ 2 $ 2,480 $ 275,942 $ 3,570,342
Loss allowance (lifetime ECL) (2,908 ) (10,561 ) (1,968 ) (808 ) (1 ) (1,973 ) (275,942 ) (294,161 )
Amortized cost $ 3,055,422 $ 200,654 $ 17,712 $ 1,885 $ 1 $ 507 $ — $ 3,276,181

December 31, 2024

Not Past Due Past Due Lessthan 30 Days Past Due<br><br><br>31 to 60 Days Past Due<br><br><br>61 to 90 Days Past Due<br><br><br>91 to 120 Days Past Due<br><br><br>121 to 180 Days Past Due<br><br><br>over 180 Days Total
Telecommunications<br><br><br>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
  • 18 -

June 30, 2024

Not Past Due Past DueLess than 30 Days Past Due<br><br><br>31 to 60 Days Past Due<br><br><br>61 to 90 Days Past Due<br><br><br>91 to 120 Days Past Due<br><br><br>121 to 180 Days Past Due<br><br><br>over 180 Days Total
Telecommunications<br><br><br>business
Expected credit loss rate (Note a) 0%~1% 1%~20% 3%~65% 11%~82% 23%~91% 34%~96% 100%
Gross carrying amount $ 17,858,251 $ 440,927 $ 128,538 $ 72,157 $ 36,539 $ 24,735 $ 577,263 $ 19,138,410
Loss allowance (lifetime ECL) (49,981 ) (21,258 ) (34,851 ) (32,498 ) (24,954 ) (23,100 ) (577,263 ) (763,905 )
Amortized cost $ 17,808,270 $ 419,669 $ 93,687 $ 39,659 $ 11,585 $ 1,635 $ — $ 18,374,505
Project business
Expected credit loss rate (Note b) 0%~5% 5% 10% 30% 50% 80% 100%
Gross carrying amount $ 2,356,285 $ 64,270 $ 46,118 $ 46,627 $ 6,141 $ 6 $ 281,109 $ 2,800,556
Loss allowance (lifetime ECL) (2,946 ) (3,214 ) (4,612 ) (32,379 ) (3,070 ) (5 ) (281,109 ) (327,335 )
Amortized cost $ 2,353,339 $ 61,056 $ 41,506 $ 14,248 $ 3,071 $ 1 $ — $ 2,473,221
Note a: Please refer to Note 44 for the information of disaggregation of telecommunications service revenue. The<br>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<br>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<br>months overdue are classified as high-risk customers, with an expected credit loss rate of 50%, increasing by period as the days overdue increase.
--- ---

Movements of loss allowance for trade notes and accounts receivable were as follows:

Six Months Ended June 30
2025 2024
Beginning balance $ 1,142,610 $ 1,101,640
Add: Provision for credit loss 54,119 82,602
Less: Amounts written off (69,632 ) (66,801 )
Ending balance $ 1,127,097 $ 1,117,441
11. INVENTORIES
--- ---
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Merchandise $ 3,770,686 $ 4,874,164 $ 3,480,593
Project in process 5,580,014 4,564,444 5,118,831
Work in process 155,312 268,570 152,160
Raw materials 202,466 221,856 201,816
9,708,478 9,929,034 8,953,400
Land held under development 1,998,733 1,998,733 1,998,733
Construction in progress 240,282 159,351 119,620
$ 11,947,493 $ 12,087,118 $ 11,071,753
  • 19 -

The operating costs related to inventories were $12,197,482 thousand (including the reversal of valuation loss on inventories of $24,117 thousand) and $24,151,544 thousand (including the valuation loss on inventories of $14,036 thousand) for the three months and six months ended June 30, 2025, respectively. The operating costs related to inventories were $10,617,955 thousand (including the valuation loss on inventories of $10,145 thousand) and $23,206,807 thousand (including the valuation loss on inventories of $35,721 thousand) for the three months and six months ended June 30, 2024, respectively.

As of June 30, 2025, December 31, 2024 and June 30, 2024, inventories of $2,239,015 thousand, $2,158,084 thousand and $2,118,353 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.

12. PREPAYMENTS
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Prepayments for leases - satellite (Note 40) $ 4,320,028 $ 3,129,192 $ 2,419,320
Prepaid salary and bonus 2,962,522 4,556 2,884,120
Prepaid rents 1,625,268 1,761,848 1,980,044
Others 2,849,825 2,703,734 2,981,624
$ 11,757,643 $ 7,599,330 $ 10,265,108
Current
Prepaid salary and bonus $ 2,962,522 $ 4,556 $ 2,884,120
Prepaid rents 556,625 496,790 547,240
Others 2,781,154 2,636,967 2,938,733
$ 6,300,301 $ 3,138,313 $ 6,370,093
Noncurrent
Prepayments for leases - satellite (Note 40) $ 4,320,028 $ 3,129,192 $ 2,419,320
Prepaid rents 1,068,643 1,265,058 1,432,804
Others 68,671 66,767 42,891
$ 5,457,342 $ 4,461,017 $ 3,895,015

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.

  • 20 -
13. OTHER CURRENT MONETARY ASSETS
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Time deposits, negotiable certificates of deposit and commercial paper with maturities of more<br>than three months $ 37,215,734 $ 21,679,910 $ 30,199,427
Accrued custodial receipts 815,124 725,414 814,140
Others 1,699,964 1,002,677 1,403,051
$ 39,730,822 $ 23,408,001 $ 32,416,618

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:

June 30, 2025 December 31,2024 June 30, 2024
Time deposits, negotiable certificates of deposit and commercial paper with maturities of more<br>than three months 0.03%~4.88% 0.03%~5.10% 0.03%~5.10%
14. SUBSIDIARIES
--- ---
a. Information on subsidiaries with material noncontrolling interests
--- ---
Principal Proportion of OwnershipInterests and Voting Rights Heldby Noncontrolling Interests
--- --- --- --- --- --- --- --- --- --- --- ---
Subsidiaries Place ofBusiness June 30,2025 December 31,2024 June 30,2024
SENAO Taiwan 72 % 72 % 72 %
CHPT Taiwan 66 % 66 % 66 %
Profit Allocated to<br>Noncontrolling Interests
--- --- --- --- --- --- --- --- ---
Three Months Ended June 30 Six Months Ended June 30
2025 2024 2025 2024
SENAO $ 60,483 $ 67,818 $ 143,201 $ 164,644
CHPT $ 139,275 $ 34,870 $ 281,429 $ 37,255
Accumulated<br>Noncontrolling Interests
--- --- --- --- --- --- ---
June 30,2025 December 31,2024 June 30,2024
SENAO $ 4,497,898 $ 4,683,629 $ 4,481,652
CHPT 5,399,647 5,305,195 5,030,999
Individually immaterial subsidiaries with noncontrolling interests 2,990,834 3,165,342 2,739,246
$ 12,888,379 $ 13,154,166 $ 12,251,897
  • 21 -

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.

June 30, 2025 December 31,2024 June 30, 2024
Current assets $ 6,781,248 $ 6,737,556 $ 7,102,676
Noncurrent assets 3,599,053 3,675,523 3,293,606
Current liabilities (3,800,621 ) (3,549,249 ) (3,741,910 )
Noncurrent liabilities (391,171 ) (415,771 ) (488,077 )
Equity $ 6,188,509 $ 6,448,059 $ 6,166,295
Equity attributable to the parent $ 1,690,611 $ 1,764,430 $ 1,684,643
Equity attributable to noncontrolling interests 4,497,898 4,683,629 4,481,652
$ 6,188,509 $ 6,448,059 $ 6,166,295
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Revenues and income $ 7,352,664 $ 7,453,750 $ 14,999,391 $ 15,624,931
Costs and expenses 7,269,041 7,360,103 14,800,483 15,396,374
Profit for the period $ 83,623 $ 93,647 $ 198,908 $ 228,557
Profit attributable to the parent $ 23,140 $ 25,829 $ 55,707 $ 63,913
Profit attributable to noncontrolling interests 60,483 67,818 143,201 164,644
Profit for the period $ 83,623 $ 93,647 $ 198,908 $ 228,557
Other comprehensive income (loss) attributable to the parent $ (9,900 ) $ 244 $ (9,114 ) $ 8,184
Other comprehensive income (loss) attributable to noncontrolling interests (25,231 ) 621 (23,227 ) 20,857
Other comprehensive income (loss) for the period $ (35,131 ) $ 865 $ (32,341 ) $ 29,041
Total comprehensive income attributable to the parent $ 13,240 $ 26,073 $ 46,593 $ 72,097
Total comprehensive income attributable to noncontrolling interests 35,252 68,439 119,974 185,501
Total comprehensive income for the period $ 48,492 $ 94,512 $ 166,567 $ 257,598
  • 22 -
Six Months Ended June 30
2025 2024
Net cash flow from operating activities $ 509,691 $ 740,625
Net cash flow from investing activities (21,119 ) (11,121 )
Net cash flow from financing activities (151,806 ) (151,052 )
Effect of exchange rate changes on cash and cash equivalents (8 ) 26
Net cash inflow $ 336,758 $ 578,478
Dividends paid to noncontrolling interests $ — $ —

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.

June 30, 2025 December 31,2024 June 30, 2024
Current assets $ 5,430,232 $ 4,936,011 $ 3,968,548
Noncurrent assets 4,083,602 4,222,292 4,327,909
Current liabilities (1,294,894 ) (1,079,055 ) (641,688 )
Noncurrent liabilities (14,510 ) (21,470 ) (18,622 )
Equity $ 8,204,430 $ 8,057,778 $ 7,636,147
Equity attributable to CHI $ 2,804,783 $ 2,752,583 $ 2,605,148
Equity attributable to noncontrolling interests 5,399,647 5,305,195 5,030,999
$ 8,204,430 $ 8,057,778 $ 7,636,147
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Revenues and income $ 1,221,907 $ 752,467 $ 2,392,195 $ 1,450,097
Costs and expenses 1,008,788 694,656 1,961,172 1,385,106
Profit for the period $ 213,119 $ 57,811 $ 431,023 $ 64,991
Profit attributable to CHI $ 73,844 $ 22,941 $ 149,594 $ 27,736
Profit attributable to noncontrolling interests 139,275 34,870 281,429 37,255
Profit for the period $ 213,119 $ 57,811 $ 431,023 $ 64,991
Other comprehensive income (loss) attributable to CHI $ (11,121 ) $ 1,065 $ (9,801 ) $ 4,804
Other comprehensive income (loss) attributable to noncontrolling interests (21,350 ) 2,046 (18,816 ) 9,223
Other comprehensive income (loss) for the period $ (32,471 ) $ 3,111 $ (28,617 ) $ 14,027
Total comprehensive income attributable to CHI $ 62,723 $ 24,006 $ 139,793 $ 32,540
Total comprehensive income attributable to noncontrolling interests 117,925 36,916 262,613 46,478
Total comprehensive income for the period $ 180,648 $ 60,922 $ 402,406 $ 79,018
  • 23 -
Six Months Ended June 30
2025 2024
Net cash flow from operating activities $ 832,175 $ 228,493
Net cash flow from investing activities (59,291 ) (46,211 )
Net cash flow from financing activities (16,696 ) (13,233 )
Effect of exchange rate changes on cash and cash equivalents (25,759 ) 14,151
Net cash inflow $ 730,429 $ 183,200
Dividends paid to noncontrolling interests $ — $ —
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 issued new shares in January 2024, March 2024, December 2024, February 2025 and May 2025 as its employees exercised options. Therefore, the Company’s ownership interest in CHTSC decreased. See Note 34(b) for details.

The above transactions were accounted for as equity transactions since the Company did not cease to have control over these subsidiaries.

  • 24 -

Information of the Company’s equity transactions with noncontrolling interests for the six months ended June 30, 2025 and 2024 was as follows:

Six Months Ended<br>June 30, 2025
CHTSC<br><br><br>Share-BasedPayment CHIEF<br><br><br>Share-BasedPayment
Cash consideration received from noncontrolling interests $ 12,309 $ 1,165
The proportionate share of the carrying amount of the net assets of the subsidiary transferred<br>from (to) noncontrolling interests (15,663 ) 8,176
Differences arising from equity transactions $ (3,354 ) $ 9,341
Line items for equity transaction adjustments
Additional paid-in capital - arising from changes in<br>equities of subsidiaries $ (3,354 ) $ 9,341
Six MonthsEndedJune 30, 2024
--- --- --- ---
CHTSCShare-BasedPayment
Cash consideration received from noncontrolling interests (Note) $ 13,245
The proportionate share of the carrying amount of the net assets of the subsidiary transferred to<br>noncontrolling interests (13,650 )
Differences arising from equity transactions $ (405 )
Line items for equity transaction adjustments
Additional paid-in capital - arising from changes in<br>equities of subsidiaries $ (405 )
Note: The proceeds from the new shares issued in January 2024 by CHTSC have been received in advance in December<br>2023.
--- ---
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.

  • 25 -

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<br>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
--- ---
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Investments in associates $ 8,722,613 $ 9,064,213 $ 8,384,982
Investment in joint venture 9,158 9,251 9,367
$ 8,731,771 $ 9,073,464 $ 8,394,349
  • 26 -
a. Investments in associates

Investments in associates were as follows:

Carrying Amount
June 30, 2025 December 31,2024 June 30, 2024
Material associate
Non-listed
Next Commercial Bank Co., Ltd. (“NCB”) $ 3,752,649 $ 3,950,922 $ 4,112,887
Associates that are not individually material
Listed
Senao Networks, Inc. (“SNI”) 1,983,154 1,998,346 1,551,669
KingwayTek Technology Co., Ltd. (“KWT”) 253,414 278,967 264,415
Non-listed
Viettel-CHT Co., Ltd. (“Viettel-CHT”) 567,065 573,275 519,071
ST-2 Satellite Ventures Pte., Ltd.<br>(“STS”) 381,135 313,467 370,774
Taiwan International Standard Electronics Co., Ltd. (“TISE”) 330,853 379,357 248,739
WiAdvance Technology Corporation (“WATC”) 269,006 273,440 280,768
Chunghwa PChome Fund I Co., Ltd. (“CPFI”) 249,897 252,625 254,873
Taiwania Hive Technology Fund L.P. (“TWTF”) 243,794 276,180 —
So-net Entertainment Taiwan Limited (“So-net”) 159,405 192,968 215,187
KKBOX Taiwan Co., Ltd. (“KKBOXTW”) 132,516 151,241 164,501
Taiwan International Ports Logistics Corporation (“TIPL”) 114,477 133,836 112,366
Porrima Inc. (“PORRIMA”) 74,696 77,634 80,000
Imedtac Co., Ltd. (“IME”) 54,203 56,667 60,373
CHT Infinity Singapore Pte., Ltd. (“CISG”) 50,828 60,782 58,680
Click Force Co., Ltd. (“CF”) 47,477 51,011 47,077
AgriTalk Technology Inc. (“ATT”) 24,004 26,254 28,279
Baohwa Trust Co., Ltd. (“BHT”) 14,869 11,967 10,011
Gather Works Co., Ltd. (“GW”) 13,898 — —
Cornerstone Ventures Co., Ltd. (“CVC”) 5,273 5,274 5,312
Chunghwa Sochamp Technology Inc. (“CHST”) (Note 14) — — —
4,969,964 5,113,291 4,272,095
$ 8,722,613 $ 9,064,213 $ 8,384,982
  • 27 -

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
June 30, 2025 December 31,2024 June 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.<br>(“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 —
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 49
Chunghwa Sochamp Technology Inc. (“CHST”) (Note 14) 37 — —
  • 28 -

Summarized financial information of NCB was set out below:

June 30, 2025 December 31,2024 June 30, 2024
Assets $ 55,729,141 $ 48,636,633 $ 39,522,184
Liabilities (47,570,906 ) (40,043,113 ) (30,571,865 )
Equity $ 8,158,235 $ 8,593,520 $ 8,950,319
The percentage of ownership interest held by the Company 46.26% 46.26% 46.26%
Equity attributable to the Company $ 3,774,000 $ 3,975,362 $ 4,140,417
Unrealized gain or loss from downstream transactions (21,351 ) (24,440 ) (27,530 )
The carrying amount of investment $ 3,752,649 $ 3,950,922 $ 4,112,887
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Net revenues (losses) $ (9,814 ) $ 72,952 $ 79,707 $ 141,916
Net loss for the period $ (270,321 ) $ (192,617 ) $ (453,898 ) $ (378,129 )
Other comprehensive income (loss) 9,471 (16,096 ) 18,613 (18,628 )
Total comprehensive loss for the period $ (260,850 ) $ (208,713 ) $ (435,285 ) $ (396,757 )

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 June 30 Six Months Ended June 30
2025 2024 2025 2024
The Company’s share of profits $ 119,914 $ 96,285 $ 244,190 $ 195,123
The Company’s share of other comprehensive income (loss) (36,498 ) 4,547 (32,790 ) 31,226
The Company’s share of total comprehensive income $ 83,416 $ 100,832 $ 211,400 $ 226,349

The Level 1 fair values of associates based on the closing market prices as of the balance sheet dates were as follows:

June 30, 2025 December 31, 2024 June 30, 2024
SNI $ 3,368,182 $ 3,838,161 $ 3,116,858
KWT $ 903,107 $ 896,747 $ 913,514

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 June 30, 2025, respectively.

  • 29 -

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 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 June 30, 2025. TWTF mainly engages in investment.

CVC was approved to end and dissolve its business in November 2024. The liquidation of CVC is still in process.

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 16.35% and 16.24% as of June 30, 2024 and December 31, 2024, respectively. 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, 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.

  • 30 -
b. Investment in joint venture

Investment in joint venture was as follows:

Carrying Amount % of Ownership Interests and Voting Rights
Name of Joint Venture June 30,2025 December 31,2024 June 30,2024 June 30,2025 December 31,2024 June 30,2024
Non-listed
Chunghwa SEA Holdings (“CHT SEA”) $ 9,158 $ 9,251 $ 9,367 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 June 30 Six Months Ended June 30
2025 2024 2025 2024
The Company’s share of loss $ (30 ) $ (33 ) $ (93 ) $ (96 )
The Company’s share of other comprehensive income — — — —
The Company’s share of total comprehensive loss $ (30 ) $ (33 ) $ (93 ) $ (96 )

The Company’s share of loss and other comprehensive income of the joint venture was recognized based on the reviewed financial statements.

16. PROPERTY, PLANT AND EQUIPMENT
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Assets used by the Company $ 279,507,322 $ 284,714,764 $ 278,913,666
Assets subject to operating leases 5,528,042 5,125,380 6,056,635
$ 285,035,364 $ 289,840,144 $ 284,970,301
a. Assets used by the Company
--- ---
Land LandImprovements Buildings ComputerEquipment Telecommuni-<br><br><br>cationsEquipment TransportationEquipment MiscellaneousEquipment Construction inProgress andEquipment tobe 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 — — 8,214 4,681 41,164 2,880 43,746 8,563,466 8,664,151
Disposal — — (5,916 ) (452,105 ) (13,262,926 ) (82,517 ) (239,133 ) — (14,042,597 )
Effect of foreign exchange differences — — — 31 128,887 65 7,891 11,443 148,317
Others (578,499 ) 11,066 (27,003 ) 321,363 9,370,089 87,655 401,229 (10,173,936 ) (588,036 )
Balance on June 30, 2024 $ 102,306,955 $ 1,720,302 $ 71,730,078 $ 10,918,801 $ 717,712,193 $ 4,057,744 $ 12,304,762 $ 14,338,160 $ 935,088,995

(Continued)

  • 31 -
Land LandImprovements Buildings ComputerEquipment Telecommuni-<br><br><br>cationsEquipment TransportationEquipment MiscellaneousEquipment Construction inProgress andEquipment tobe Accepted Total
Accumulated depreciation and<br><br><br>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 — (17,094 ) (721,172 ) (372,860 ) (12,745,443 ) (60,944 ) (407,481 ) — (14,324,994 )
Disposal — — 5,916 451,686 13,260,489 81,974 233,408 — 14,033,473
Effect of foreign exchange differences — — — (27 ) (78,654 ) 19 (4,339 ) — (83,001 )
Others — — 126,912 (121 ) (13,362 ) (294 ) (91,682 ) — 21,453
Balance on June 30, 2024 $ — $ (1,525,026 ) $ (33,872,156 ) $ (9,142,382 ) $ (598,708,961 ) $ (3,633,969 ) $ (9,292,835 ) $ — $ (656,175,329 )
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 June 30, 2024, net $ 102,306,955 $ 195,276 $ 37,857,922 $ 1,776,419 $ 119,003,232 $ 423,775 $ 3,011,927 $ 14,338,160 $ 278,913,666
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 — — 21,019 42,320 81,951 — 29,256 9,661,647 9,836,193
Disposal — — (90 ) (389,212 ) (6,628,218 ) (208,497 ) (179,085 ) — (7,405,102 )
Effect of deconsolidation of subsidiaries (Note 14) — — — — — (2,009 ) (3,213 ) — (5,222 )
Effect of foreign exchange differences — — — (343 ) (279,586 ) (501 ) (19,219 ) (29,248 ) (328,897 )
Others (382,088 ) 27,458 (57,369 ) 103,841 9,943,594 147,200 193,367 (10,397,932 ) (421,929 )
Balance on June 30, 2025 $ 101,963,943 $ 1,777,072 $ 74,141,637 $ 10,205,013 $ 721,470,786 $ 4,119,733 $ 12,701,229 $ 15,807,219 $ 942,186,632
Accumulated depreciation and<br><br><br>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 — (24,048 ) (758,256 ) (328,288 ) (12,856,220 ) (90,632 ) (437,027 ) — (14,494,471 )
Disposal — — 90 389,209 6,626,780 208,497 176,598 — 7,401,174
Effect of deconsolidation of subsidiaries (Note 14) — — — — — 2,009 3,011 — 5,020
Effect of foreign exchange differences — — — 295 191,730 228 13,283 — 205,536
Others — — 17,465 (169 ) 3,732 (835 ) (19,937 ) — 256
Balance on June 30, 2025 $ — $ (1,567,421 ) $ (35,462,068 ) $ (8,666,124 ) $ (603,708,586 ) $ (3,510,636 ) $ (9,764,475 ) $ — $ (662,679,310 )
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 June 30, 2025, net $ 101,963,943 $ 209,651 $ 38,679,569 $ 1,538,889 $ 117,762,200 $ 609,097 $ 2,936,754 $ 15,807,219 $ 279,507,322

(Concluded)

There was no indication that property, plant and equipment was impaired; therefore, the Company did not recognize any impairment loss for the six months ended June 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
Transportation equipment 2~10 years
Miscellaneous equipment
Leasehold improvements 1~18 years
Mechanical and air conditioner equipment 2~16 years
Others 1~15 years
  • 32 -
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 — 99 99
Others (1,132,317 ) (32,648 ) (1,164,965 )
Balance on June 30, 2024 $ 3,792,070 $ 4,098,482 $ 7,890,552
Accumulated depreciation and impairment
Balance on January 1, 2024 $ — $ (1,802,576 ) $ (1,802,576 )
Depreciation expense — (35,961 ) (35,961 )
Others — 4,620 4,620
Balance on June 30, 2024 $ — $ (1,833,917 ) $ (1,833,917 )
Balance on January 1, 2024, net $ 4,924,387 $ 2,328,455 $ 7,252,842
Balance on June 30, 2024, net $ 3,792,070 $ 2,264,565 $ 6,056,635
Cost
Balance on January 1, 2025 $ 3,104,874 $ 3,737,084 $ 6,841,958
Others 382,088 57,467 439,555
Balance on June 30, 2025 $ 3,486,962 $ 3,794,551 $ 7,281,513
Accumulated depreciation and impairment
Balance on January 1, 2025 $ — $ (1,716,578 ) $ (1,716,578 )
Depreciation expense — (33,096 ) (33,096 )
Others — (3,797 ) (3,797 )
Balance on June 30, 2025 $ — $ (1,753,471 ) $ (1,753,471 )
Balance on January 1, 2025, net $ 3,104,874 $ 2,020,506 $ 5,125,380
Balance on June 30, 2025, net $ 3,486,962 $ 2,041,080 $ 5,528,042

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.

The future aggregate lease collection under operating lease for the freehold plant, property and equipment was as follows:

June 30, 2025 December 31,2024 June 30, 2024
Year 1 $ 297,895 $ 305,357 $ 327,178
Year 2 173,634 197,780 228,043
Year 3 117,526 121,845 130,999
Year 4 87,821 92,431 89,926
Year 5 54,437 62,415 63,203
Onwards 115,119 136,567 175,699
$ 846,432 $ 916,395 $ 1,015,048
  • 33 -

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<br>
--- ---
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Land and buildings
Handsets base stations $ 7,722,141 $ 7,648,470 $ 7,636,464
Others 1,718,711 1,564,104 1,741,737
Equipment 1,680,519 1,699,755 1,752,186
$ 11,121,371 $ 10,912,329 $ 11,130,387
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Additions to<br>right-of-use assets $ 2,512,247 $ 2,074,978
Depreciation charge for<br>right-of-use assets
Land and buildings
Handsets base stations $ 760,872 $ 748,733 $ 1,520,554 $ 1,492,579
Others 206,968 202,795 408,271 398,781
Equipment 114,916 88,293 229,308 175,616
$ 1,082,756 $ 1,039,821 $ 2,158,133 $ 2,066,976

The Company did not have significant sublease or impairment of right-of-use assets for the six months ended June 30, 2025 and 2024.

b. Lease liabilities
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Lease liabilities
Current $ 3,803,522 $ 3,557,874 $ 3,561,502
Noncurrent 7,236,033 7,333,503 7,452,555
$ 11,039,555 $ 10,891,377 $ 11,014,057
  • 34 -

Ranges of discount rates for lease liabilities were as follows:

June 30, 2025 December 31,2024 June 30, 2024
Land and buildings
Handsets base stations 0.37%~2.02% 0.37%~2.00% 0.37%~1.87%
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 June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Expenses relating to low-value asset leases $ 2,093 $ 2,326 $ 4,347 $ 4,389
Expenses relating to variable lease payments not included in the measurement of lease<br>liabilities $ 1,834 $ 1,588 $ 3,438 $ 3,066
Total cash outflow for leases $ 2,200,226 $ 2,010,054

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.

  • 35 -
18. INVESTMENT PROPERTIES
Cost
--- --- --- ---
Balance on January 1, 2024 $ 11,161,834
Reclassification 1,747,177
Balance on June 30, 2024 $ 12,909,011
Accumulated depreciation and impairment
Balance on January 1, 2024 $ (1,356,371 )
Depreciation expense (22,319 )
Reclassification (24,663 )
Balance on June 30, 2024 $ (1,403,353 )
Balance on January 1, 2024, net $ 9,805,463
Balance on June 30, 2024, net $ 11,505,658
Cost
Balance on January 1, 2025 $ 13,592,694
Additions 2,067
Balance on June 30, 2025 $ 13,594,761
Accumulated depreciation and impairment
Balance on January 1, 2025 $ (1,290,975 )
Depreciation expense (22,458 )
Balance on June 30, 2025 $ (1,313,433 )
Balance on January 1, 2025, net $ 12,301,719
Balance on June 30, 2025, net $ 12,281,328

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

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 June 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:

  • 36 -
June 30, 2025 December 31,2024 June 30, 2024
Fair value $41,286,825 $41,284,758 $35,336,628
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:

June 30, 2025 December 31,2024 June 30, 2024
Year 1 $ 278,707 $ 274,163 $ 270,323
Year 2 245,123 247,997 244,074
Year 3 213,387 216,256 213,800
Year 4 197,474 192,062 182,133
Year 5 191,729 190,020 169,506
Onwards 1,214,526 1,306,456 1,230,112
$ 2,340,946 $ 2,426,954 $ 2,309,948
19. INTANGIBLE ASSETS
--- ---
MobileBroadbandConcession ComputerSoftware 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 — 99,676 — 2,777 102,453
Disposal — (118,288 ) — (7,360 ) (125,648 )
Effect of foreign exchange differences — 214 — (9 ) 205
Others — 4,609 — — 4,609
Balance on June 30, 2024 $ 109,963,431 $ 2,518,460 $ 291,206 $ 417,243 $ 113,190,340
Accumulated amortization and impairment
Balance on January 1, 2024 $ (38,202,416 ) $ (1,954,096 ) $ (73,624 ) $ (252,040 ) $ (40,482,176 )
Amortization expenses (3,195,069 ) (134,714 ) — (15,129 ) (3,344,912 )
Disposal — 118,288 — 7,360 125,648
Effect of foreign exchange differences — (91 ) — 4 (87 )
Balance on June 30, 2024 $ (41,397,485 ) $ (1,970,613 ) $ (73,624 ) $ (259,805 ) $ (43,701,527 )
Balance on January 1, 2024, net $ 71,761,015 $ 578,153 $ 217,582 $ 169,795 $ 72,726,545
Balance on June 30, 2024, net $ 68,565,946 $ 547,847 $ 217,582 $ 157,438 $ 69,488,813
Cost
Balance on January 1, 2025 $ 109,963,431 $ 2,427,063 $ 291,206 $ 418,959 $ 113,100,659
Additions-acquired separately — 52,507 — 1,611 54,118
Disposal — (100,520 ) — (909 ) (101,429 )
Effect of foreign exchange differences — (1,146 ) — (40 ) (1,186 )
Others — 2,658 — — 2,658
Balance on June 30, 2025 $ 109,963,431 $ 2,380,562 $ 291,206 $ 419,621 $ 113,054,820
Accumulated amortization and impairment
Balance on January 1, 2025 $ (44,592,555 ) $ (1,877,275 ) $ (73,624 ) $ (274,003 ) $ (46,817,457 )
Amortization expenses (3,195,070 ) (128,283 ) — (12,395 ) (3,335,748 )
Disposal — 100,520 — 909 101,429
Effect of foreign exchange differences — 316 — 29 345
Others — (312 ) — — (312 )
Balance on June 30, 2025 $ (47,787,625 ) $ (1,905,034 ) $ (73,624 ) $ (285,460 ) $ (50,051,743 )
Balance on January 1, 2025, net $ 65,370,876 $ 549,788 $ 217,582 $ 144,956 $ 66,283,202
Balance on June 30, 2025, net $ 62,175,806 $ 475,528 $ 217,582 $ 134,161 $ 63,003,077
  • 37 -

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
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Spare parts $ 2,248,577 $ 2,005,946 $ 2,871,996
Refundable deposits 2,022,911 2,161,983 1,978,753
Other financial assets 1,000,000 1,000,000 1,000,000
Others 2,964,090 2,831,855 2,530,204
$ 8,235,578 $ 7,999,784 $ 8,380,953
Current
Spare parts $ 2,248,577 $ 2,005,946 $ 2,871,996
Others 1,259,665 1,108,608 936,984
$ 3,508,242 $ 3,114,554 $ 3,808,980
Noncurrent
Refundable deposits $ 2,022,911 $ 2,161,983 $ 1,978,753
Other financial assets 1,000,000 1,000,000 1,000,000
Others 1,704,425 1,723,247 1,593,220
$ 4,727,336 $ 4,885,230 $ 4,571,973
  • 38 -

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.

The following tables summarized the information relating to the hedges for foreign currency risk.

June 30, 2025

Forward<br><br><br>Rate Line Item in CarryingAmount Change in FairValues ofHedgingInstruments Usedfor CalculatingHedge
Hedging Instruments Currency (In Dollars) Balance Sheet Asset Liability Ineffectiveness
Cash flow hedge
Forecast purchases - forward exchange contracts NT$ / NTD184,700 /5,000 September 2025 $ 36.94 Hedging financial<br>assets (liabilities) $ — $ 13,155 $ (12,381 )

All values are in Euros.

  • 39 -
Change inValue ofHedged ItemUsed for<br><br><br>CalculatingHedgeIneffectiveness Accumulated Gain or Loss<br>on Hedging Instruments<br>in Other Equity
Hedged Items ContinuingHedges HedgeAccountingNo LongerApplied
Cash flow hedge
Forecast equipment purchases $ 12,381 $ (13,155 ) $ —

December 31, 2024

Forward Rate Line Item in CarryingAmount Change in FairValues ofHedgingInstruments Usedfor CalculatingHedge
Hedging Instruments Currency (In Dollars) Balance Sheet Asset Liability Ineffectiveness
Cash flow hedge
Forecast purchases - forward exchange contracts NT$ / NT341,036 /10,000 March 2025 $ 34.10 Hedging financial<br>assets (liabilities) $ 1,133 $ 1,907 $ (730 )

All values are in Euros.

Change inValue ofHedged ItemUsed for<br><br><br>CalculatingHedgeIneffectiveness Accumulated Gain or Loss<br>on Hedging Instruments<br>in Other Equity
Hedged Items ContinuingHedges HedgeAccountingNo LongerApplied
Cash flow hedge
Forecast equipment purchases $ 730 $ (774 ) $ —

June 30, 2024

Forward<br><br><br>Rate<br><br><br>(In Dollars) Line Item in Carrying Amount Change in FairValues ofHedgingInstrumentsUsed forCalculatingHedge
Hedging Instruments Currency Balance Sheet Asset Liability Ineffectiveness
Cash flow hedge
Forecast purchases - forward exchange contracts NT$ / NTD 79,313 / 2,300 September 2024 $ 34.48 Hedging financial<br>assets (liabilities) $ 313 $ 212 $ 145

All values are in Euros.

Change inValue ofHedged ItemUsed for<br><br><br>CalculatingHedgeIneffectiveness Accumulated Gain or Loss<br>on Hedging Instruments<br>in Other Equity
Hedged Items ContinuingHedges HedgeAccounting NoLonger Applied
Cash flow hedge
Forecast equipment purchases $ (145 ) $ 101 $ —
  • 40 -

Six Months Ended June 30, 2025

Comprehensive Income Reclassification from Equity<br>to Assets and the Adjusted Line Item
Hedge Transaction Hedging<br><br><br>Gain orLossRecognized<br><br><br>in OCI Amount ofHedgeIneffectivenessRecognized inProfit or Loss Line Item inWhich HedgeIneffectivenessis Included AmountReclassified toAssets and theAdjusted LineItem Due to HedgedFuture CashFlows No LongerExpected toOccur
Cash flow hedge
Forecast equipment purchases $ (12,381 ) $ — — $ 1,334 $ —
Construction in<br>progress and<br>equipment<br>to be<br>accepted Other gains and<br>losses

Six Months Ended June 30, 2024

Comprehensive Income Reclassification from Equity<br>to Assets and the Adjusted Line Item
Hedge Transaction Hedging<br><br><br>Gain orLossRecognized<br><br><br>in OCI Amount ofHedgeIneffectivenessRecognized inProfit or Loss Line Item inWhich HedgeIneffectivenessis Included AmountReclassifiedto Assets andthe AdjustedLine Item Due to HedgedFuture CashFlows No LongerExpected toOccur
Cash flow hedge
Forecast equipment purchases $ 145 $ — — $ 2,497 $ —
Construction<br>in progress and<br>equipment<br>to be<br>accepted Other gains and<br>losses
22. SHORT-TERM LOANS
--- ---
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Unsecured bank loans $ 480,000 $ 215,000 $ 365,000

The annual interest rates of bank loans were as follows:

June 30, 2025 December 31,2024 June 30, 2024
Unsecured bank loans 2.29%~2.35% 1.82%~3.49% 1.70%~3.49%
  • 41 -
23. LONG-TERM LOANS
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- --- --- --- ---
Secured bank loans (Note 39) $ 1,600,000 $ 1,600,000 $ 1,600,000
Unsecured bank loans 35,000 35,000 —
Less: Current portion (8,021 ) (3,646 ) (1,600,000 )
$ 1,626,979 $ 1,631,354 $ —

The annual interest rates of bank loans were as follows:

June 30, 2025 December 31,2024 June 30, 2024
Secured bank loans 2.10 % 2.09 % 2.01 %
Unsecured bank loans 2.22 % 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, interest is paid monthly, and the principal will be repaid in 48 equal installments from August 2025 to July 2029.

24. BONDS PAYABLE
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- --- --- --- ---
Unsecured domestic bonds $ 30,500,000 $ 30,500,000 $ 30,500,000
Less: Discounts on bonds payable (9,008 ) (11,794 ) (14,463 )
30,490,992 30,488,206 30,485,537
Less: Current portion (10,699,482 ) (8,798,880 ) —
$ 19,791,510 $ 21,689,326 $ 30,485,537

The major terms of unsecured domestic bonds issued by Chunghwa were as follows:

Issuance Tranche Issuance Period TotalAmount CouponRate 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<br><br><br>(Sustainable Bond) - March 2022 to March 2027 3,500,000 0.69 % The same as above
  • 42 -
25. TRADE NOTES AND ACCOUNTS PAYABLE
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Trade notes and accounts payable $ 11,120,995 $ 17,742,532 $ 9,826,528

Trade notes and accounts payable were attributable to operating activities and the trading conditions were agreed separately.

26. OTHER PAYABLES
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Accrued salary and compensation $ 6,535,024 $ 10,721,819 $ 6,249,715
Accrued compensation to employees and remuneration to directors and supervisors 3,575,685 2,499,932 3,029,794
Amounts collected for others 1,833,881 1,706,744 1,627,580
Accrued maintenance costs 1,086,274 1,116,992 1,102,704
Payables to contractors 960,137 2,264,856 1,228,845
Payables to equipment suppliers 484,701 720,361 563,700
Others 8,694,748 7,550,649 8,664,654
$ 23,170,450 $ 26,581,353 $ 22,466,992
27. PROVISIONS
--- ---
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Employee benefits $ 431,494 $ 415,477 $ 400,939
Warranties 274,066 280,679 237,133
Onerous contracts 260,617 266,755 174,262
Others 12,701 13,574 3,067
$ 978,878 $ 976,485 $ 815,401
Current $ 661,429 $ 441,801 $ 317,116
Noncurrent 317,449 534,684 498,285
$ 978,878 $ 976,485 $ 815,401
  • 43 -
EmployeeBenefits Warranties OnerousContracts Others Total
Balance on January 1, 2024 $ 387,082 $ 237,873 $ 194,651 $ 3,067 $ 822,673
Additional / (reversal of) provisions recognized 18,262 22,305 (20,389 ) — 20,178
Used / forfeited during the period (4,405 ) (23,110 ) — — (27,515 )
Effect of foreign exchange differences — 65 — — 65
Balance on June 30, 2024 $ 400,939 $ 237,133 $ 174,262 $ 3,067 $ 815,401
Balance on January 1, 2025 $ 415,477 $ 280,679 $ 266,755 $ 13,574 $ 976,485
Additional / (reversal of) provisions recognized 20,242 41,178 (5,584 ) 2,658 58,494
Used / forfeited during the period (4,225 ) (47,613 ) — (3,531 ) (55,369 )
Effect of foreign exchange differences — (178 ) (554 ) — (732 )
Balance on June 30, 2025 $ 431,494 $ 274,066 $ 260,617 $ 12,701 $ 978,878
a. The provision for warranty claims represents the present value of the management’s best estimate of the<br>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.<br>
--- ---
c. The provision for onerous contracts represents the present obligation resulting from the measurement for the<br>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 June 30 Six Months Ended June 30
2025 2024 2025 2024
Operating costs $ 80,557 $ 104,919 $ 160,990 $ 209,825
Marketing expenses 63,115 77,752 126,359 155,584
General and administrative expenses 15,102 18,019 30,232 35,902
Research and development expenses 7,067 7,986 14,143 15,998
$ 165,841 $ 208,676 $ 331,724 $ 417,309
29. EQUITY
--- ---
a. Share capital
--- ---
1) Common stocks
--- ---
June 30, 2025 December 31,2024 June 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
  • 44 -

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 June 30, 2025, the outstanding ADSs were 182,722 thousand common stocks, which equaled 18,272 thousand units and represented 2.36% 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 six months ended June 30, 2025 and 2024 were as follows:

SharePremium Movements ofAdditionalPaid-in Capitalfor Associatesand JointVenturesAccounted forUsing EquityMethod Movements ofAdditionalPaid-inCapitalArising fromChanges inEquities ofSubsidiaries DifferencebetweenConsiderationReceived orPaid andCarryingAmount oftheSubsidiaries’Net Assetsduring ActualDisposal orAcquisition DonatedCapital Stockholders’Contribution dueto 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
Change in additional paid-in capital from investments in<br>associates and joint ventures accounted for using equity method — 62,678 — — — — 62,678
Changes in equities of subsidiaries — — (405 ) — — — (405 )
Balance on June 30, 2024 $ 147,329,386 $ 214,630 $ 2,144,322 $ 987,607 $ 27,336 $ 20,648,078 $ 171,351,359
Balance on January 1, 2025 $ 147,329,386 $ 223,835 $ 2,145,041 $ 1,211,494 $ 29,445 $ 20,648,078 $ 171,587,279
Change in additional paid-in capital from investments in<br>associates and joint ventures accounted for using equity method — (6,128 ) — — — — (6,128 )
Changes in equities of subsidiaries — — 5,987 — — — 5,987
Balance on June 30, 2025 $ 147,329,386 $ 217,707 $ 2,151,028 $ 1,211,494 $ 29,445 $ 20,648,078 $ 171,587,138

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.

  • 45 -

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.

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 FiscalYear 2024 For FiscalYear 2023 For FiscalYear 2024 For FiscalYear 2023
Reversal of special reserve $ — $ (223,084 )
Cash dividends 38,787,232 36,909,931 $ 4.758

All values are in US Dollars.

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.

  • 46 -
2) Unrealized gain or loss on financial assets at FVOCI
Six Months Ended June 30
--- --- --- --- --- ---
2025 2024
Beginning balance $ 563,605 $ 520,748
Recognized for the period
Unrealized gain or loss
Equity instruments 1,027,157 241,399
Share of profits (loss) of associates and joint ventures accounted for using equity<br>method 9,547 (7,743 )
Ending balance $ 1,600,309 $ 754,404
e. Noncontrolling interests
--- ---
Six Months Ended June 30
--- --- --- --- --- --- ---
2025 2024
Beginning balance $ 13,154,166 $ 12,596,252
Shares attributed to noncontrolling interests
Net income for the period 834,079 504,102
Exchange differences arising from the translation of the foreign operations (22,413 ) 12,300
Unrealized gain or loss on financial assets at FVOCI 10,459 (601 )
Share of other comprehensive income (loss) of associates and joint ventures accounted for using<br>equity method (23,144 ) 19,932
Cash dividends recognized by subsidiaries (1,094,115 ) (897,678 )
Loss of control of subsidiaries (Note 14) 19,534 —
Changes in additional paid-in capital from investments in<br>associates and joint ventures accounted for using equity method — (1,728 )
Net increase in noncontrolling interests 9,813 19,318
Ending balance $ 12,888,379 $ 12,251,897
30. REVENUES
--- ---
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Revenue from contracts with customers $ 56,129,881 $ 53,489,054 $ 111,293,933 $ 107,818,815
Other revenues
Government grants income 334,216 292,887 714,081 567,239
Rental income 215,054 286,918 428,539 578,418
Others 51,245 46,874 102,252 94,732
600,515 626,679 1,244,872 1,240,389
$ 56,730,396 $ 54,115,733 $ 112,538,805 $ 109,059,204

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.

  • 47 -
a. Disaggregation of revenue

Please refer to Note 44 Segment Information for details.

b. Contract balances
June 30,2025 December 31,2024 June 30,2024 January 1,2024
--- --- --- --- --- --- --- --- --- --- --- --- ---
Trade notes and accounts receivable (Note 10) $ 23,649,161 $ 26,025,696 $ 23,630,846 $ 24,841,995
Contract assets
Products and service bundling $ 10,513,403 $ 10,445,758 $ 9,969,190 $ 9,297,181
Others 1,974,528 2,306,854 1,715,539 1,205,973
Less: Loss allowance (24,257 ) (23,845 ) (23,516 ) (21,282 )
$ 12,463,674 $ 12,728,767 $ 11,661,213 $ 10,481,872
Current $ 8,061,646 $ 8,401,343 $ 7,495,318 $ 6,713,227
Noncurrent 4,402,028 4,327,424 4,165,895 3,768,645
$ 12,463,674 $ 12,728,767 $ 11,661,213 $ 10,481,872
Contract liabilities
Telecommunications business $ 13,207,855 $ 13,931,238 $ 14,154,278 $ 14,015,949
Project business 7,997,618 8,014,350 7,363,091 6,654,364
Advance house and land receipts (Notes 11 and 40) 1,226,571 1,064,150 760,704 459,697
Others 995,672 831,978 665,894 518,758
$ 23,427,716 $ 23,841,716 $ 22,943,967 $ 21,648,768
Current $ 16,456,942 $ 16,300,986 $ 15,219,078 $ 14,088,416
Noncurrent 6,970,774 7,540,730 7,724,889 7,560,352
$ 23,427,716 $ 23,841,716 $ 22,943,967 $ 21,648,768

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.

  • 48 -
c. Incremental costs of obtaining contracts
June 30, 2025 December 31,2024 June 30, 2024
--- --- --- --- --- --- ---
Current
Incremental costs of obtaining contracts $ 338,581 $ 339,172 $ 281,637
Noncurrent
Incremental costs of obtaining contracts $ 1,174,225 $ 1,221,652 $ 1,059,621

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 six months ended June 30, 2025 were $233,474 thousand and $471,691 thousand, respectively. Amortization expenses for the three months and six months ended June 30, 2024 were $221,960 thousand and $436,680 thousand, respectively.

31. NET INCOME
a. Other income and expenses
--- ---
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Gain (loss) on disposal of property, plant and equipment, net $ 5,196 $ (3,209 ) $ 6,214 $ (689 )
b. Other income
--- ---
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Dividend income $ 275,484 $ 234,965 $ 275,484 $ 234,965
Rental income 19,066 19,089 38,288 36,576
Others 46,743 33,579 65,969 53,861
$ 341,293 $ 287,633 $ 379,741 $ 325,402
c. Other gains and losses
--- ---
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Valuation loss on financial assets and liabilities at fair value through profit or loss,<br>net $ (85,381 ) $ (10,790 ) $ (85,188 ) $ (72,447 )
Foreign currency exchange gain (loss), net 127,095 (17,988 ) 87,908 (24,632 )
Gain on disposal of financial instruments, net $ — $ — $ — $ 1,073
Gain on disposal of subsidiaries — — 15,290 —
Others (4,326 ) (4,109 ) (5,740 ) 1,855
$ 37,388 $ (32,887 ) $ 12,270 $ (94,151 )
  • 49 -
d. Interest expenses
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Interest on bonds payable $ 41,968 $ 41,961 $ 83,946 $ 83,931
Interest on lease liabilities 38,358 31,409 75,749 60,858
Interest paid to financial institutions 11,597 9,797 21,329 20,996
Others 257 6 513 675
$ 92,180 $ 83,173 $ 181,537 $ 166,460
e. Impairment loss (reversal of impairment loss)
--- ---
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Contract assets $ 288 $ 1,150 $ 412 $ 2,234
Trade notes and accounts receivable $ (63,614 ) $ 26,430 $ 54,119 $ 82,602
Other receivables $ (7,807 ) $ (3,425 ) $ (6,129 ) $ (4,895 )
Inventories $ (24,117 ) $ 10,145 $ 14,036 $ 35,721
f. Depreciation and amortization expenses
--- ---
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Property, plant and equipment $ 7,273,981 $ 7,162,728 $ 14,527,567 $ 14,360,955
Right-of-use<br>assets 1,082,756 1,039,821 2,158,133 2,066,976
Investment properties 11,233 11,212 22,458 22,319
Intangible assets 1,666,861 1,672,640 3,335,748 3,344,912
Incremental costs of obtaining contracts 233,474 221,960 471,691 436,680
Total depreciation and amortization expenses $ 10,268,305 $ 10,108,361 $ 20,515,597 $ 20,231,842
Depreciation expenses summarized by functions
Operating costs $ 7,821,729 $ 7,685,649 $ 15,608,897 $ 15,387,382
Operating expenses 546,241 528,112 1,099,261 1,062,868
$ 8,367,970 $ 8,213,761 $ 16,708,158 $ 16,450,250
Amortization expenses summarized by functions
Operating costs $ 1,856,566 $ 1,846,888 $ 3,718,854 $ 3,685,677
Marketing expenses 23,586 22,333 47,111 42,766
General and administrative expenses 13,634 15,442 25,784 31,188
Research and development expenses 6,549 9,937 15,690 21,961
$ 1,900,335 $ 1,894,600 $ 3,807,439 $ 3,781,592
  • 50 -
g. Employee benefit expenses
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Post-employment benefit
Defined contribution plans $ 302,611 $ 263,689 $ 592,447 $ 519,859
Defined benefit plans 165,841 208,676 331,724 417,309
468,452 472,365 924,171 937,168
Share-based payment
Equity-settled share-based payment 1,101 2,256 2,326 4,629
Other employee benefit (Note) 12,355,687 11,705,536 24,365,821 23,088,808
Total employee benefit expenses $ 12,825,240 $ 12,180,157 $ 25,292,318 $ 24,030,605
Summary by functions
Operating costs $ 5,956,640 $ 5,695,461 $ 11,733,634 $ 11,218,173
Operating expenses 6,868,600 6,484,696 13,558,684 12,812,432
$ 12,825,240 $ 12,180,157 $ 25,292,318 $ 24,030,605

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.

  • 51 -

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.

32. INCOME TAX
a. Income tax recognized in profit or loss
--- ---

The major components of income tax expense were as follows:

Three Months Ended June 30 Six Months Ended June 30
2025 2024 2025 2024
Current tax
Current tax expenses recognized for the period $ 2,523,618 $ 2,312,844 $ 5,057,328 $ 4,615,177
Income tax on unappropriated earnings 19,042 5,600 19,042 5,600
Income tax adjustments on prior years (25,160 ) (152,121 ) (24,447 ) (150,353 )
Others 171 (58 ) 188 (31 )
2,517,671 2,166,265 5,052,111 4,470,393
Deferred tax
Deferred tax expenses recognized for the period 7,899 73,230 (23,341 ) 152,659
Income tax adjustments on prior years 61 (3,975 ) 61 (3,975 )
7,960 69,255 (23,280 ) 148,684
Income tax recognized in profit or loss $ 2,525,631 $ 2,235,520 $ 5,028,831 $ 4,619,077

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.

  • 52 -
b. Income tax examinations

Income tax returns of Chunghwa, CHIEF, CHPT, HHI, IISI and UTC have been examined by the tax authorities through 2022. Income tax returns of SENAO, Youth, ISPOT, Aval, Wiin, SENYOUNG, CHYP, CHSI, LED, SHE, Unigate, CHI, NavCore, TestPro, SFD, CLPT and CHTSC 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.

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 June 30 Six Months Ended June 30
2025 2024 2025 2024
Net income used to compute the basic earnings per share
Net income attributable to the parent $ 10,167,164 $ 9,819,867 $ 19,966,358 $ 19,211,286
Assumed conversion of all dilutive potential common stocks
Employee stock options and employee compensation of subsidiaries (499 ) (645 ) (1,760 ) (1,154 )
Net income used to compute the diluted earnings per share $ 10,166,665 $ 9,819,222 $ 19,964,598 $ 19,210,132

Weighted Average Number of Common Stocks

(Thousand Shares)
Three Months Ended June 30 Six Months Ended June 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 3,810 3,961 12,260 11,442
Weighted average number of common stocks used to compute the diluted earnings per share 7,761,257 7,761,408 7,769,707 7,768,889
  • 53 -

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.

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 six months ended June 30, 2025. The compensation costs for stock options for the three months and six months ended June 30, 2024 were $816 thousand and $1,632 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 six months ended June 30, 2025 and 2024 was as follows:

Six Months Ended June 30, 2025 Six Months Ended June 30, 2024
Granted onNovember 13, 2020 Granted onNovember 13, 2020
Number of<br><br><br>Options WeightedAverageExercise<br>Price (NT) Number of<br><br><br>Options WeightedAverageExercise<br>Price (NT)
Employee stock options
Options outstanding at beginning of the period 7 93
Options exercised (7 ) —
Options outstanding at end of the period — 93
Options exercisable at end of the period — —
Weighted average remaining contractual life (years) — 1.37

All values are in US Dollars.

  • 54 -

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 OptionsGranted onNovember 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. 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 June 30, 2025. The compensation costs for stock options for the three months ended June 30, 2024 were $195 thousand. The compensation costs for stock options for the six months ended June 30, 2025 and 2024 were $89 thousand and $389 thousand, respectively.

Information about CHTSC’s outstanding stock options for the six months ended June 30, 2025 and 2024 was as follows:

Six Months Ended<br>June 30, 2025
Granted onFebruary 20, 2021
Number of<br><br><br>Options WeightedAverageExercisePrice(NT)
Employee stock options
Options outstanding at beginning of the period 655
Options exercised (649 )
Options outstanding at end of the period 6
Options exercisable at end of the period 2
Weighted average remaining contractual life (years) 0.64

All values are in US Dollars.

  • 55 -
Six Months Ended June 30, 2024
Granted onFebruary 20, 2021 Granted onDecember 20, 2019
Number of<br><br><br>Options WeightedAverageExercisePrice(NT) Number of<br><br><br>Options WeightedAverageExercisePrice(NT)
Employee stock options
Options outstanding at beginning of the period 1,519 40
Options exercised (689 ) (5 )
Options forfeited (134 ) —
Options outstanding at end of the period 696 35
Options exercisable at end of the period 15 —
Weighted average remaining contractual life (years) 1.64 0.47

All values are in US Dollars.

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 OptionsGranted onFebruary 20,2021 Stock OptionsGranted onDecember 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.

c. 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.

  • 56 -

The compensation costs for stock options for the three months ended June 30, 2025 and 2024 were $1,101 thousand and $1,245 thousand, respectively. The compensation costs for stock options for the six months ended June 30, 2025 and 2024 were $2,237 thousand and $2,608 thousand, respectively.

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 six months ended June 30, 2025 and 2024 was as follows:

Six Months Ended June 30, 2025
Granted on<br>September 26, 2023 Granted on May 31,2022 Granted on February<br>26, 2021
Number of<br><br><br>Options WeightedAverageExercisePrice(NT) Number of<br><br><br>Options WeightedAverageExercisePrice(NT) Number of<br><br><br>Options WeightedAverageExercisePrice(NT)
Options outstanding at beginning of the period 750 220 25
Options forfeited — — (25 )
Options outstanding at end of the period 750 220 —
Options exercisable at end of the period — 220 —
Weighted average remaining contractual life (years) 2.24 0.92 —

All values are in US Dollars.

Six Months Ended June 30, 2024
Granted on<br>September 26, 2023 Granted on<br>May 31, 2022 Granted on<br>February 26, 2021
Number of<br><br><br>Options WeightedAverageExercisePrice(NT) Number of<br><br><br>Options WeightedAverageExercisePrice(NT) Number of<br><br><br>Options WeightedAverageExercisePrice(NT)
Options outstanding at beginning and end of the period 755 440 440
Options exercisable at end of the period — 220 440
Weighted average remaining contractual life (years) 3.24 1.92 0.66

All values are in US Dollars.

  • 57 -

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 OptionsGranted onSeptember 26,2023 Stock OptionsGranted onMay 31,<br><br><br>2022 Stock OptionsGranted onFebruary 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 Six Months Ended June 30
2025 2024
Additions of property, plant and equipment $ 9,836,193 $ 8,664,250
Changes in other payables 1,653,890 1,586,405
Payments for acquisition of property, plant and equipment $ 11,490,083 $ 10,250,655

Financing Activities

Balance on<br><br><br>January 1, Cash Flows<br><br><br>fromFinancing Changes in Non-CashTransactions Cash Flows<br><br><br>from<br><br><br>OperatingActivities - Balance on<br><br><br>June 30,
2025 Activities New Leases Others Interest Paid 2025
Lease liabilities $ 10,891,377 $ (2,116,692 ) $ 2,512,247 $ (171,628 ) $ (75,749 ) $ 11,039,555
Balance on<br><br><br>January 1, Cash Flows<br><br><br>fromFinancing Changes in Non-CashTransactions Cash Flows<br><br><br>from<br><br><br>OperatingActivities - Balance on<br><br><br>June 30,
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
2024 Activities New Leases Others Interest Paid 2024
Lease liabilities $ 10,975,181 $ (1,941,741 ) $ 2,074,978 $ (33,503 ) $ (60,858 ) $ 11,014,057
  • 58 -
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<br>

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.

June 30, 2025 December 31, 2024 June 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 $ 2,023,662 $ 2,000,000 $ 2,002,268 $ — $ —
Financial liabilities
Financial liabilities at amortized cost
Bonds payable $ 30,490,992 $ 30,493,321 $ 30,488,206 $ 30,485,103 $ 30,485,537 $ 30,476,804

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.

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b. Financial instruments that are measured at fair value on a recurring basis

June 30, 2025

Level 1 Level 2 Level 3 Total
Financial assets at FVTPL
Derivatives $ — $ 535 $ — $ 535
Non-listed stocks — — 614,748 614,748
Limited partnership — — 430,965 430,965
Other investing agreements — — 64,344 64,344
$ — $ 535 $ 1,110,057 $ 1,110,592
Financial assets at FVOCI
Listed and emerging stocks $ 102,747 $ — $ — $ 102,747
Non-listed stocks — — 5,666,845 5,666,845
$ 102,747 $ — $ 5,666,845 $ 5,769,592
Financial liabilities at FVTPL
Derivatives $ — $ 303 $ — $ 303
Hedging financial liabilities $ — $ 13,155 $ — $ 13,155

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
  • 60 -

June 30, 2024

Level 1 Level 2 Level 3 Total
Financial assets at FVTPL
Derivatives $ — $ 1,100 $ — $ 1,100
Listed stocks 439 — — 439
Non-listed stocks — — 724,586 724,586
Limited partnership — — 315,340 315,340
Other investing agreements — — 31,699 31,699
$ 439 $ 1,100 $ 1,071,625 $ 1,073,164
Financial assets at FVOCI
Listed and emerging stocks $ 217,190 $ — $ — $ 217,190
Non-listed stocks — — 4,748,731 4,748,731
$ 217,190 $ — $ 4,748,731 $ 4,965,921
Hedging financial assets $ — $ 313 $ — $ 313
Financial liabilities at FVTPL
Derivatives $ — $ 141 $ — $ 141
Hedging financial liabilities $ — $ 212 $ — $ 212

There were no transfers between Levels 1 and 2 for the six months ended June 30, 2025 and 2024.

The reconciliations for financial assets measured at Level 3 were listed below:

Six months ended June 30, 2025

Financial Assets Measured atFair Valuethrough Profitor Loss Measured atFair Valuethrough OtherComprehensiveIncome Total
Balance on January 1, 2025 $ 1,005,236 $ 4,540,963 $ 5,546,199
Acquisition 190,650 65,000 255,650
Recognized in profit or loss under “Other gains and losses” (85,130 ) — (85,130 )
Recognized in other comprehensive income under “Unrealized gain or loss on financial assets<br>at fair value through other comprehensive income” — 1,060,882 1,060,882
Proceeds from profit distribution of the investees (699 ) — (699 )
Balance on June 30, 2025 $ 1,110,057 $ 5,666,845 $ 6,776,902
Unrealized gain or loss for the six months ended June 30, 2025 $ (85,130 )
  • 61 -

Six months ended June 30, 2024

Financial Assets Measured atFair Valuethrough Profitor Loss Measured atFair Valuethrough OtherComprehensiveIncome Total
Balance on January 1, 2024 $ 1,035,701 $ 4,168,694 $ 5,204,395
Acquisition 109,300 312,780 422,080
Recognized in profit or loss under “Other gains and losses” (72,941 ) — (72,941 )
Recognized in other comprehensive income under “Unrealized gain or loss on financial assets<br>at fair value through other comprehensive income” — 267,257 267,257
Proceeds from profit distribution of the investees (435 ) — (435 )
Balance on June 30, 2024 $ 1,071,625 $ 4,748,731 $ 5,820,356
Unrealized gain or loss for the six months ended June 30, 2024 $ (72,941 )

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<br>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<br>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.<br>
--- ---

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.

June 30,2025 December 31,2024 June 30,2024
Discount for lack of marketability 10.00%~30.00% 20.00%~30.00% 4.68%~20.00%
Noncontrolling interests discount 10.00%~29.04% 15.00%~29.04% 17.01%~25.00%
Growth rate of long-term revenue 1.33% 0.12% 0.12%
Discount rate 7.37%~10.80% 8.32%~14.40% 7.83%~10.00%
  • 62 -

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.

June 30,2025 June 30,2024
Discount for lack of marketability
5% increase $ (64,043 ) $ (47,063 )
5% decrease $ 64,043 $ 46,822
Noncontrolling interests discount
5% increase $ (54,181 ) $ (21,253 )
5% decrease $ 54,181 $ 21,253
Growth rate of long-term revenue
0.1% increase $ 46,901 $ 33,380
0.1% decrease $ (46,012 ) $ (32,781 )
Discount rate
1% increase $ (542,467 ) $ (401,407 )
1% decrease $ 671,551 $ 482,413

Categories of Financial Instruments

June 30,2025 December 31,2024 June 30,2024
Financial assets
Measured at FVTPL
Mandatorily measured at FVTPL $ 1,110,592 $ 1,005,526 $ 1,073,164
Hedging financial assets — 1,133 313
Financial assets at amortized cost (Note a) 103,563,671 91,048,373 96,824,300
Financial assets at FVOCI 5,769,592 4,666,976 4,965,921
Financial liabilities
Measured at FVTPL
Held for trading 303 — 141
Hedging financial liabilities 13,155 1,907 212
Financial liabilities at amortized cost (Note b) 100,897,830 69,231,194 97,736,974
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<br>noncurrent assets).
--- ---
Note b: The balances included short-term loans, trade notes and accounts payable, payables to related parties, dividends payable, partial other payables, customers’ deposits, bonds payable (including the current portion) and long-term<br>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.

  • 63 -

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:

December 31,2024 June 30,2024
Assets
535 $ 263 $ —
— 1,160 1,413
Liabilities
303 — —
13,155 1,907 353

All values are in Euros.

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.

  • 64 -
2024
Profit or loss
Monetary assets and liabilities (a)
50,551 $ 39,454
(41,302 ) (23,209 )
SGD (21,012 ) (38,879 )
RMB 1,542 5,248
Derivatives (b)
6,149 —
— 7,636
Equity
Derivatives (c)
8,588 3,992

All values are in Euros.

a) This is mainly attributable to the exposure to foreign currency denominated receivables and payables of the<br>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<br>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:

June 30,2025 December 31,2024 June 30,2024
Fair value interest rate risk
Financial assets $ 61,797,211 $ 47,562,672 $ 57,190,582
Financial liabilities 41,780,547 41,444,583 41,599,594
Cash flow interest rate risk
Financial assets 12,439,010 12,949,846 10,906,086
Financial liabilities 1,865,000 1,785,000 1,865,000

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 $26,435 thousand and $22,603 thousand for the six months ended June 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.

  • 65 -
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 $52,286 thousand and $288,480 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the six months ended June 30, 2025. If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income would have increased/decreased by $52,018 thousand and $248,296 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the six months ended June 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.

  • 66 -
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.

June 30, 2025

WeightedAverageEffectiveInterest Rate(%) Less than1 Month 1-3 Months 3 Months to1 Year 1-5 Years More than5 Years Total
Non-derivative financial liabilities
Non-interest bearing — $ 32,723,170 $ 38,787,232 $ — $ 6,782,722 $ — $ 78,293,124
Floating interest rate instruments 2.10 183,716 57,284 32,273 1,669,927 — 1,943,200
Fixed interest rate instruments 0.55 8,911,623 270,674 1,998,754 15,303,884 4,705,986 31,190,921
$ 41,818,509 $ 39,115,190 $ 2,031,027 $ 23,756,533 $ 4,705,986 $ 111,427,245

Information about the maturity analysis for lease liabilities was as follows:

Less than1 Year 1-3 Years 3-5 Years More than5 Years Total
Lease liabilities $ 3,827,975 $ 5,464,957 $ 1,847,751 $ 162,161 $ 11,302,844

December 31, 2024

WeightedAverageEffectiveInterest Rate(%) Less than1 Month 1-3 Months 3 Months to1 Year 1-5 Years More than5 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 than1 Year 1-3 Years 3-5 Years More than5 Years Total
Lease liabilities $ 3,586,029 $ 5,255,191 $ 2,142,230 $ 164,061 $ 11,147,511

June 30, 2024

WeightedAverageEffectiveInterest Rate(%) Less than1 Month 1-3 Months 3 Months to1 Year 1-5 Years More than5 Years Total
Non-derivative financial liabilities
Non-interest bearing — $ 30,942,076 $ 36,909,931 $ — $ 6,604,440 $ — $ 74,456,447
Floating interest rate instruments 2.09 53,894 1,621,306 202,887 — — 1,878,087
Fixed interest rate instruments 0.54 111,177 27,336 233,649 26,097,711 4,732,816 31,202,689
$ 31,107,147 $ 38,558,573 $ 436,536 $ 32,702,151 $ 4,732,816 $ 107,537,223
  • 67 -

Information about the maturity analysis for lease liabilities was as follows:

Less than1 Year 1-3 Years 3-5 Years More than5 Years Total
Lease liabilities $ 3,582,570 $ 5,036,262 $ 2,327,089 $ 306,691 $ 11,252,612

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 than1 Month 1-3 Months 3 Months to<br><br><br>1 Year 1-5 Years Total
June 30, 2025
Gross settled
Forward exchange contracts
Inflow $ 124,816 $ 171,545 $ — $ — $ 296,361
Outflow 124,584 184,700 — — 309,284
$ 232 $ (13,155 ) $ — $ — $ (12,923 )
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 )
June 30, 2024
Gross settled
Forward exchange contracts
Inflow $ — $ 300,423 $ — $ — $ 300,423
Outflow — 299,363 — — 299,363
$ — $ 1,060 $ — $ — $ 1,060
2) Financing facilities
--- ---
June 30,2025 December 31,2024 June 30,2024
--- --- --- --- --- --- ---
Unsecured bank loan facilities
Amount used $ 515,000 $ 250,000 $ 365,000
Amount unused 47,202,895 56,438,486 58,490,564
$ 47,717,895 $ 56,688,486 $ 58,855,564
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
  • 68 -
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<br>funds
Senao Technical and Cultural Foundation A nonprofit organization of which the funds donated by SENAO exceeds one third of its total<br>funds
Ba Gua Liao 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

(Continued)

  • 69 -
Company Relationship
All Oriented Investment Co., Ltd. Substantial related party of SENAO
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<br>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<br>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<br>disclosed below:
1) Operating transactions
--- ---
Revenues
--- --- --- --- --- --- --- --- ---
Three Months Ended June 30 Six Months Ended June 30
2025 2024 2025 2024
Associates $ 86,274 $ 75,502 $ 167,179 $ 155,081
Others 45,296 16,419 88,422 21,582
$ 131,570 $ 91,921 $ 255,601 $ 176,663
Operating Costs and Expenses
--- --- --- --- --- --- --- --- ---
Three Months Ended June 30 Six Months Ended June 30
2025 2024 2025 2024
Associates $ 206,511 $ 156,733 $ 397,505 $ 373,742
Others 3,968 628 74,258 71,056
$ 210,479 $ 157,361 $ 471,763 $ 444,798
2) Non-operating transactions
--- ---
Non-operating Income and Expenses
--- --- --- --- --- --- --- --- ---
Three Months Ended June 30 Six Months Ended June 30
2025 2024 2025 2024
Associates $ 10,516 $ 10,073 $ 20,978 $ 19,586
Others 894 342 894 442
$ 11,410 $ 10,415 $ 21,872 $ 20,028
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3) Receivables
June 30,2025 December 31,2024 June 30,2024
--- --- --- --- --- --- ---
Associates $ 102,194 $ 183,753 $ 82,469
Others 25,497 9,251 3,709
$ 127,691 $ 193,004 $ 86,178
4) Payables
--- ---
June 30,2025 December 31,2024 June 30,2024
--- --- --- --- --- --- ---
Associates $ 135,286 $ 476,069 $ 219,708
Others 9,497 4,332 5,863
$ 144,783 $ 480,401 $ 225,571
5) Customers’ deposits
--- ---
June 30,2025 December 31,2024 June 30,2024
--- --- --- --- --- --- ---
Associates $ 3,927 $ 3,557 $ 19,758
6) Acquisition of property, plant and equipment
--- ---
Three Months Ended June 30 Six Months Ended June 30
--- --- --- --- --- --- --- --- ---
2025 2024 2025 2024
Associates $ 4,988 $ 63 $ 4,988 $ 63
7) Acquisition of intangible assets
--- ---
Three Months Ended June 30 Six Months Ended June 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.

  • 71 -

The lease liabilities of ST-2 Satellite Ventures Pte., Ltd. as of balance sheet dates were as follows:

June 30,2025 December 31,2024 June 30,2024
Lease liabilities - current $ 194,821 $ 204,393 $ 202,614
Lease liabilities - noncurrent 1,300,139 1,463,029 1,548,243
$ 1,494,960 $ 1,667,422 $ 1,750,857

The interest expense recognized for the aforementioned lease liabilities for the three months and six months ended June 30, 2025 were $1,701 thousand and $3,464 thousand, respectively. The interest expense recognized for the aforementioned lease liabilities for the three months and six months ended June 30, 2024 were $1,886 thousand and $3,784 thousand, respectively.

9) Others

The bank deposits and other financial assets of NCB as of balance sheet dates were as follows:

June 30,2025 December 31,2024 June 30,<br><br><br>2024
Bank deposits and other financial assets $ 2,746,912 $ 2,708,878 $ 1,425,692

The interest income recognized for the aforementioned bank deposits and other financial assets for the three months and six months ended June 30, 2025 were $11,424 thousand and $26,487 thousand, respectively. The interest income recognized for the aforementioned bank deposits and other financial assets for the three months and six months ended June 30, 2024 were $4,250 thousand and $8,106 thousand, respectively.

c. Compensation of key management personnel

The compensation of directors and key management personnel was as follows:

Three Months Ended June 30 Six Months Ended June 30
2025 2024 2025 2024
Short-term employee benefits $ 87,350 $ 82,984 $ 208,223 $ 184,427
Post-employment benefits 2,370 1,152 4,809 3,450
Share-based payment 149 310 303 634
$ 89,869 $ 84,446 $ 213,335 $ 188,511

The compensation of directors and key management personnel was mainly determined by the compensation committee having regard to the performances and market trends.

  • 72 -
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.

June 30,2025 December 31,2024 June 30,2024
Property, plant and equipment $ 2,424,563 $ 2,439,320 $ 2,454,078
Land held under development (included in inventories) 1,998,733 1,998,733 1,998,733
Restricted assets (included in other assets - others) 1,306,696 1,189,118 825,949
$ 5,729,992 $ 5,627,171 $ 5,278,760
40. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS
--- ---

Except for those disclosed in other notes, the Company’s significant commitments and contingent liabilities as of June 30, 2025 were as follows:

a. Acquisitions of property, plant and equipment of $12,879,080 thousand.
b. Acquisitions of telecommunications-related inventory of $18,225,505 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<br>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<br>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<br>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<br>Singapore Telecommunications Limited, for a total transaction price of EUR 177,000 thousand and SGD 51,000 thousand; as of June 30, 2025, Chunghwa had paid the amount of EUR 105,315 thousand. Chunghwa signed a contract for<br>Astranis block 3 Satellite with Astranis Space Technologies Corp. for a total transaction price of USD 115,000 thousand; as of June 30, 2025, Chunghwa had paid the amount of USD 15,000 thousand. The aforementioned amounts are<br>classified as prepayments - noncurrent.
--- ---
g. The Company has signed the house and land presale contracts amounting to $7,691,358 thousand and has<br>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.<br>The investment amount is capped at $1,200,000 thousand.
--- ---
  • 73 -
41. SIGNIFICANT SUBSEQUENT EVENTS

Chunghwa issued its first 5-year unsecured corporate bond (sustainable bond) at the amount of $3,500,000 thousand in August 2025.

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:
ExchangeRate New TaiwanDollars(Thousands)
Assets denominated in foreign currencies
Monetary items
71,811 29.30 $ 2,104,069
588 34.35 20,189
SGD 49,659 23.00 1,142,166
RMB 16,696 4.091 68,304
Non-monetary items
Investments accounted for using equity method
8,321 29.30 243,794
SGD 16,571 23.00 381,135
VND 510,869,409 0.0011 567,065
Liabilities denominated in foreign currencies
Monetary items
37,305 29.30 1,093,046
24,636 34.35 846,235
SGD 67,930 23.00 1,562,400
RMB 9,158 4.091 37,466

All values are in Euros.
ExchangeRate New TaiwanDollars(Thousands)
Assets denominated in foreign currencies
Monetary items
90,344 32.79 $ 2,961,914
1,663 34.14 56,783
SGD 44,547 24.13 1,074,925
RMB 39,339 4.478 176,160

All values are in Euros.

(Continued)

  • 74 -
ExchangeRate New TaiwanDollars(Thousands)
Non-monetary items
Investments accounted for using equity method
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
37,087 32.79 1,215,887
30,433 34.14 1,038,994
SGD 72,054 24.13 1,738,668
RMB 9,244 4.478 41,394

All values are in US Dollars.

(Concluded)
ExchangeRate New TaiwanDollars(Thousands)
Assets denominated in foreign currencies
Monetary items
65,430 32.45 $ 2,123,201
1,281 34.71 44,448
SGD 43,700 23.92 1,045,315
RMB 33,221 4.445 147,665
Non-monetary items
Investments accounted for using equity method
SGD 15,501 23.92 370,774
VND 411,961,096 0.0013 519,071
Liabilities denominated in foreign currencies
Monetary items
41,113 32.45 1,334,127
14,654 34.71 508,627
SGD 76,208 23.92 1,822,901
RMB 9,608 4.445 42,706

All values are in Euros.

The unrealized foreign currency exchange gains and losses were gain of $77,111 thousand and loss of $14,014 thousand for the three months ended June 30, 2025 and 2024, respectively. The unrealized foreign currency exchange gains and losses were gain of $14,288 thousand and loss of $8,829 thousand for the six months ended June 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.

  • 75 -
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<br>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<br>paid-in capital: Please see Table 4.
--- ---
f. Names, locations, and other information of investees on which the Company exercises significant influence<br>(excluding investments in Mainland China): Please see Table 5.
--- ---
g. Investments in Mainland China: Please see Table 6.
--- ---
h. Intercompany relationships and significant intercompany transactions: Please see Table 7.<br>
--- ---
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.

Segment Revenues and Operating Results

Analysis by reportable segment of revenues and operating results of continuing operations are as follows:

ConsumerBusiness EnterpriseBusiness InternationalBusiness Others Total
Three months ended June 30, 2025
Revenues
From external customers $ 34,073,391 $ 18,978,192 $ 2,196,659 $ 1,482,154 $ 56,730,396
Intersegment revenues 644,909 249,510 241,075 95,444 1,230,938
Segment revenues $ 34,718,300 $ 19,227,702 $ 2,437,734 $ 1,577,598 57,961,334
Intersegment elimination (1,230,938 )
Consolidated revenues $ 56,730,396
Segment income before income tax $ 8,093,578 $ 3,319,533 $ 523,664 $ 1,193,482 $ 13,130,257

(Continued)

  • 76 -
ConsumerBusiness EnterpriseBusiness InternationalBusiness Others Total
Six months ended June 30, 2025
Revenues
From external customers $ 68,642,419 $ 36,313,972 $ 4,631,915 $ 2,950,499 $ 112,538,805
Intersegment revenues 1,242,083 473,181 483,040 191,045 2,389,349
Segment revenues $ 69,884,502 $ 36,787,153 $ 5,114,955 $ 3,141,544 114,928,154
Intersegment elimination (2,389,349 )
Consolidated revenues $ 112,538,805
Segment income before income tax $ 16,224,713 $ 6,605,994 $ 1,156,208 $ 1,842,353 $ 25,829,268
Three months ended June 30, 2024
Revenues
From external customers $ 33,596,766 $ 16,889,502 $ 2,638,751 $ 990,714 $ 54,115,733
Intersegment revenues 534,434 140,403 297,837 94,336 1,067,010
Segment revenues $ 34,131,200 $ 17,029,905 $ 2,936,588 $ 1,085,050 55,182,743
Intersegment elimination (1,067,010 )
Consolidated revenues $ 54,115,733
Segment income before income tax $ 7,724,251 $ 3,146,591 $ 596,075 $ 879,808 $ 12,346,725
Six months ended June 30, 2024
Revenues
From external customers $ 68,221,308 $ 33,841,811 $ 5,052,164 $ 1,943,921 $ 109,059,204
Intersegment revenues 1,122,268 316,462 537,763 185,312 2,161,805
Segment revenues $ 69,343,576 $ 34,158,273 $ 5,589,927 $ 2,129,233 111,221,009
Intersegment elimination (2,161,805 )
Consolidated revenues $ 109,059,204
Segment income before income tax $ 15,467,756 $ 6,563,486 $ 1,218,692 $ 1,084,531 $ 24,334,465

(Concluded)

Main Products and Service Revenues

Three Months Ended June 30 Six Months Ended June 30
2025 2024 2025 2024
Consumer Business
Mobile services $ 14,566,203 $ 14,187,325 $ 29,096,757 $ 28,279,920
Fixed-line services 10,731,048 10,774,803 21,425,389 21,465,933
Sales 8,110,319 8,024,537 16,724,249 17,268,643
Others 665,821 610,101 1,396,024 1,206,812
34,073,391 33,596,766 68,642,419 68,221,308
Enterprise Business
Fixed-line services 8,379,031 8,486,594 16,615,601 16,821,079
ICT business 6,991,633 5,119,648 12,918,525 10,430,882
Mobile services 2,360,997 2,289,165 4,648,990 4,542,081
Others 1,246,531 994,095 2,130,856 2,047,769
18,978,192 16,889,502 36,313,972 33,841,811
International Business
Fixed-line services 1,212,884 1,323,581 2,478,514 2,591,162
ICT business 834,943 1,065,890 1,857,241 1,910,715
Others 148,832 249,280 296,160 550,287
2,196,659 2,638,751 4,631,915 5,052,164

(Continued)

  • 77 -
Three Months Ended June 30 Six Months Ended June 30
2025 2024 2025 2024
Others
Sales $ 1,260,571 $ 767,619 $ 2,497,528 $ 1,487,718
Others 221,583 223,095 452,971 456,203
1,482,154 990,714 2,950,499 1,943,921
$ 56,730,396 $ 54,115,733 $ 112,538,805 $ 109,059,204

(Concluded)

  • 78 -

TABLE 1

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

SIX MONTHS ENDEDJUNE 30, 2025

(Amounts in Thousands of New Taiwan Dollars)

No.<br><br><br>(Note 1) Endorsement/<br>Guarantee<br>Provider Guaranteed Party Limits onEndorsement/<br>GuaranteeAmountProvided toEachGuaranteedParty MaximumBalancefor thePeriod EndingBalance ActualBorrowingAmount Amount ofEndorsement/<br>GuaranteeCollateralizedby<br>Properties RatioofAccumulatedEndorsement/Guarantee to<br>Net<br>Equity PerLatestFinancialStatements MaximumEndorsement/<br>GuaranteeAmountAllowable Endorsement/<br>GuaranteeGiven<br>by Parent onBehalf ofSubsidiaries Endorsement/<br>GuaranteeGiven<br>bySubsidiaries<br>on<br>Behalf ofParent Endorsement/<br>GuaranteeGivenon Behalf ofCompanies inMainlandChina Note
Name Nature ofRelationship<br>(Note 2)
1 Senao<br>International<br>Co., Ltd. Aval<br>Technologies<br>Co., Ltd. b $ 617,944 $ 300,000 $ 300,000 $ 300,000 $ — 4.85 $ 3,089,721 Yes No No Notes 3 and 4
Wiin<br>Technology<br>Co., Ltd. b 617,944 200,000 200,000 200,000 — 3.24 3,089,721 Yes No No Notes 3 and 4
Note 1: Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as<br>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.<br>
--- ---
c. A company that directly and indirectly holds more than 50 percent of the voting shares in the Company.<br>
--- ---
d. Companies in which the Company holds, directly or indirectly, 90% or more of the voting shares.<br>
--- ---
e. The Company fulfills its contractual obligations by providing mutual endorsements/guarantees for another<br>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<br>proportion to their shareholding percentages.
--- ---
g. Companies in the same industry provide among themselves jointly and severally guarantee for a performance<br>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<br>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<br>assets value of the latest financial statements of Senao International Co., Ltd.
--- ---
  • 79 -

TABLE 2

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

JUNE 30,2025

(Amounts in Thousands of New Taiwan Dollars)

Held Company Name Marketable SecuritiesType and Name Relationship withthe Company Financial StatementAccount June 30, 2025 Note
Shares<br>(Thousands/<br>Thousand Units) Carrying Value<br>(Note 1) Percentage ofOwnership Fair Value
Chunghwa Telecom Co., Ltd. Stocks
Taipei Financial Center Corp. — Financial assets at FVOCI 172,927 $ 4,760,476 12 $ 4,760,476 —
iKala Global Online Corp. — Financial assets at FVOCI 112,500 353,661 8 353,661 —
KKCompany Technologies Inc. — Financial assets at FVOCI 2,762 237,247 2 237,247 —
4 Gamers Entertainment Inc. — Financial assets at FVOCI 136 96,053 19.9 96,053 —
Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II) — Financial assets at FVOCI 5,252 19,182 17 19,182 —
Taiwan mobile payment Co., Ltd. — Financial assets at FVOCI 1,200 4,630 2 4,630 —
Innovation Works Limited — Financial assets at FVOCI 1,000 6,377 2 6,377 —
RPTI Intergroup International Ltd. — Financial assets at FVOCI 4,765 — 10 — —
Global Mobile Corp. — Financial assets at FVOCI 7,617 — 3 — —
Taiwania Capital Buffalo Fund Co., Ltd. — Financial assets at FVTPL - noncurrent 555,600 411,403 13 411,403 —
TOP TAIWAN XIV VENTURE CAPITAL CO., LTD. — Financial assets at FVTPL - noncurrent 20,000 171,914 9 171,914 —
Innovation Works Development Fund, L.P. — Financial assets at FVTPL - noncurrent — 16,808 4 16,808 —
Limited partnership
Taiwania Capital Buffalo Fund VI, L.P. — Financial assets at FVTPL - noncurrent — 342,995 10 342,995 —
TRF 1 L.P. — Financial assets at FVTPL - noncurrent — 58,964 10 58,964 —
Corporate bonds
Fubon Life Insurance Co., Ltd. — Financial assets at amortized cost 2 2,000,000 — 2,023,662 Note 3
Senao International Co., Ltd. Stocks
N.T.U. Innovation Incubation Corporation — Financial assets at FVOCI 1,200 10,978 9 10,978 —
CHIEF Telecom Inc. Stocks
WT Microelectronics Co., Ltd. — Financial assets at FVOCI 361 18,032 — 18,032 Note 2
3 Link Information Service Co., Ltd. — Financial assets at FVOCI 37 6,390 10 6,390 —

(Continued)

  • 80 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

JUNE 30,2025

(Amounts in Thousands of New Taiwan Dollars)

Held Company Name Marketable SecuritiesType and Name Relationship withthe Company Financial StatementAccount June 30, 2025 Note
Shares<br>(Thousands/<br>Thousand Units) Carrying Value<br>(Note 1) Percentage ofOwnership Fair Value
Chunghwa Investment Co., Ltd. Stocks
PChome Online Inc. — Financial assets at FVOCI 1,875 $ 64,510 1 $ 64,510 Note 2
Tatung Technology Inc. — Financial assets at FVOCI 4,571 32,629 11 32,629 —
Bossdom Digiinnovation Co., Ltd. — Financial assets at FVOCI 2,309 20,205 7 20,205 Note 2
KEYXENTIC INC. — Financial assets at FVOCI 600 25,265 9 25,265 —
ioNetworks Inc. — Financial assets at FVOCI 107 11,824 2 11,824 —
iSing99 Inc. — Financial assets at FVOCI 10,000 — 7 — —
Powtec ElectroChemical Corporation — Financial assets at FVOCI 20,000 — 2 — —
Limited partnership
Taiwania Capital Buffalo Fund V, L.P. — Financial assets at FVTPL - noncurrent — 29,006 3 29,006 —
CHT Security Co., Ltd. Stocks
TXOne Networks Inc. — Financial assets at FVTPL - noncurrent 91 14,623 — 14,623 —
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.

(Concluded)

  • 81 -

TABLE 3

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

TOTALPURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

SIX MONTHS ENDED JUNE 30, 2025

(Amounts inThousands of New Taiwan Dollars)

Company Name Related Party Nature of Relationship Transaction Details Abnormal Transaction (Note 3) Notes / Accounts Payableor Receivable
Purchases/Sales<br>(Note 1) Amount<br>(Note 4) % to Total Payment Terms Unit Price Payment Terms Ending Balance<br>(Notes 2 and 4) % to Total
Chunghwa Telecom Co., Ltd. Senao International Co., Ltd. Subsidiary Sales $ 2,002,107 2 30 days $ — — $ 297,541 1
Purchase 634,467 1 30~90 days — — (971,765 ) (13 )
CHIEF Telecom Inc. Subsidiary Sales 260,770 — 30 days — — 70,282 —
Chunghwa System Integration Co., Ltd. Subsidiary Purchase 490,902 1 30 days — — (213,403 ) (3 )
Honghwa International Co., Ltd. Subsidiary Sales 113,070 — 30~60 days — — 4,942 —
Purchase 3,527,131 6 30~60 days — — (1,136,886 ) (15 )
Donghwa Telecom Co., Ltd. Subsidiary Purchase 241,349 — 90 days — — (95,439 ) (1 )
Chunghwa Telecom Global, Inc. Subsidiary Purchase 131,896 — 90 days — — (60,560 ) (1 )
CHT Security Co., Ltd. Subsidiary Purchase 131,704 — 30 days — — (24,101 ) (1 )
International Integrated Systems, Inc. Subsidiary Purchase 344,629 1 30 days — — (90,722 ) (1 )
Taiwan International Standard Electronics Co., Ltd. Associate Purchase 132,704 — 30~90 days — — (4,944 ) —
Senao International Co., Ltd. Aval Technologies Co., Ltd. Subsidiary Purchase 165,928 1 30 days — — (21,200 ) (1 )
CHIEF Telecom Inc. Chunghwa Telecom Co., Ltd. Parent<br>Company Sales 120,385 6 30 days — — 15,551 3
Chunghwa Precision Test Tech. Co., Ltd. Su Zhou Precision Test Tech. Ltd. Subsidiary Sales 87,688 4 90 days — — 56,874 9

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.

  • 82 -

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

JUNE 30, 2025

(Amounts in Thousands of New TaiwanDollars)

Company Name Related Party Nature of Relationship Ending Balance Turnover Rate<br>(Note 1) Overdue AmountsReceived inSubsequentPeriod Allowance for<br>Bad Debts
Amounts Action Taken
Chunghwa Telecom Co., Ltd. Senao<br>International Co., Ltd. Subsidiary $ 393,378<br> <br>(Note 2 ) 10.91 $ — — $ 68,368 $ —
Senao International Co., Ltd. Chunghwa Telecom<br>Co., Ltd. Parent<br>company 1,130,050<br> <br>(Note 2 ) 8.38 — — 181,736 —
Chunghwa System Integration Co., Ltd. Chunghwa Telecom<br>Co., Ltd. Parent<br>company 213,403<br> <br>(Note 2 ) 4.12 — — 23,650 —
Honghwa International Co., Ltd. Chunghwa Telecom<br>Co., Ltd. Parent<br>company 1,157,441<br> <br>(Note 2 ) 5.21 — — 255,515 —

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.

  • 83 -

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)

SIXMONTHS ENDED JUNE 30, 2025

(Amounts in Thousands of New Taiwan Dollars)

Investor Company Investee Company Location Main Businesses and Products Original Investment Amount Balance as of June 30, 2025 Net Income(Loss) of theInvestee RecognizedGain (Loss)<br>(Notes 1 and 2) Note
June 30,2025 December 31,2024 Shares<br>(Thousands) Percentage ofOwnership(%) 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 $ 1,676,239 $ 199,463 $ 52,188 Subsidiary<br>(Notes 3<br>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 3,827,869 12,793 8,618 Subsidiary<br>(Note 5)
Donghwa Telecom Co., Ltd. Hong<br>Kong International private leased circuit, IP VPN service, and IP transit services 691,163 691,163 178,590 100 863,240 46,949 46,949 Subsidiary<br>(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 1,267,854 119,154 119,184 Subsidiary<br>(Note 5)
Chunghwa System Integration Co., Ltd. Taiwan Providing system integration services and telecommunications equipment 838,506 838,506 60,000 100 684,928 11,560 29,835 Subsidiary<br>(Note 5)
CHIEF Telecom Inc. Taiwan Network integration, internet data center (“IDC”), communications integration and cloud application<br>services 459,652 459,652 43,368 56 2,163,932 642,039 365,837 Subsidiary<br>(Note 5)
Chunghwa Investment Co., Ltd. Taiwan Investment 639,559 639,559 68,085 89 3,241,664 138,807 123,643 Subsidiary<br>(Note 5)
Prime Asia Investments Group Ltd. British<br>Virgin<br>Islands Investment 385,274 385,274 1 100 166,886 (1,067 ) (1,067 ) Subsidiary<br>(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 18,000 100 572,735 205,666 209,905 Subsidiary<br>(Notes 3<br>and 5)
CHYP Multimedia Marketing & Communications Co., Ltd. Taiwan Digital information supply services and advertisement services 150,000 150,000 15,000 100 189,850 1,565 (214 ) Subsidiary<br>(Note 5)
Chunghwa Telecom Vietnam Co., Ltd. Vietnam Intelligent energy saving solutions, international circuit, and information and communication technology (“ICT”)<br>services 148,275 148,275 — 100 76,126 10,355 10,355 Subsidiary<br>(Note 5)
Chunghwa Telecom Global, Inc. United<br>States International private leased circuit, internet services, and transit services 70,429 70,429 6,000 100 803,354 41,669 41,669 Subsidiary<br>(Note 5)
CHT Security Co., Ltd. Taiwan Computing equipment installation, wholesale of computing and business machinery equipment and software, management<br>consulting services, data processing services, digital information supply services and internet identify services 230,580 230,580 23,058 62 456,911 220,943 150,509 Subsidiary<br>(Note 5)
Chunghwa Telecom (Thailand) Co., Ltd. Thailand International private leased circuit, IP VPN service, ICT and cloud VAS services 119,624 119,624 1,300 100 144,595 3,566 3,566 Subsidiary<br>(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 56 156,270 15,038 8,428 Subsidiary<br>(Note 5)
Chunghwa Leading Photonics Tech Co., Ltd. Taiwan Production and sale of electronic components and finished products 70,500 70,500 7,050 70 200,826 37,684 26,330 Subsidiary<br>(Note 5)
Smartfun Digital Co., Ltd. Taiwan Providing diversified family education digital services 65,000 65,000 6,500 65 75,205 3,382 2,244 Subsidiary<br>(Note 5)
Chunghwa Telecom Japan Co., Ltd. Japan International private leased circuit, IP VPN service, and IP transit services 17,291 17,291 1 100 312,639 51,624 43,170 Subsidiary<br>(Note 5)
International Integrated Systems, Inc. Taiwan IT solution provider, IT application consultation, system integration and package solution 507,363 507,363 36,205 50 616,775 33,536 16,767 Subsidiary<br>(Note 5)
Chunghwa Digital Cultural and Creative Capital Co., Ltd Taiwan Investment and management consulting 50,000 50,000 5,000 100 34,326 (4,757 ) (4,875 ) Subsidiary<br>(Note 5)
Chunghwa Telecom Europe GmbH Germany International private leased circuit, internet services, transit services and ICT services 122,675 122,675 3,500 100 112,553 (4,979 ) (4,979 ) Subsidiary<br>(Note 5)
Viettel-CHT Co., Ltd. Vietnam IDC services 288,327 288,327 — 30 567,065 173,452 52,036 Associate

(Continued)

  • 84 -

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)

SIX MONTHS ENDED JUNE 30, 2025

(Amounts inThousands of New Taiwan Dollars)

Investor Company Investee Company Location Main Businesses and Products Original Investment Amount Balance as of June 30, 2025 Net Income(Loss) of theInvestee RecognizedGain (Loss)<br>(Notes 1 and 2) Note
June 30,2025 December 31,2024 Shares<br>(Thousands) Percentage ofOwnership(%) 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 $ 330,853 $ 174,733 $ 74,425 Associate
KKBOX Taiwan Co., Ltd. Taiwan Providing of music on-line, software, electronic information, and advertisement<br>services 67,025 67,025 4,438 30 132,516 (62,419 ) (18,726 ) Associate
So-net Entertainment Taiwan Limited Taiwan Online service and sale of computer hardware 120,008 120,008 9,429 30 159,405 (112,637 ) (33,791 ) Associate
KingwayTek Technology Co., Ltd. Taiwan Design and sale of digital map, technical support for computer peripherals device, design and development of system<br>programming projects 66,684 66,684 12,720 23 253,414 37,663 8,531 Associate
Taiwan International Ports Logistics Corporation Taiwan Import and export storage, logistic warehouse, and ocean shipping service 80,000 80,000 8,000 27 114,477 77,391 20,640 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 50 249,897 (5,457 ) (2,728 ) Associate
Cornerstone Ventures Co., Ltd. Taiwan Investment, venture capital, investment advisor, management consultant and other consultancy service 4,900 4,900 490 49 5,273 (1 ) — Associate
Next Commercial Bank Co., Ltd. Taiwan Online banking business 5,733,847 5,733,847 462,643 46 3,752,649 (453,898 ) (206,884 ) Associate
Chunghwa SEA Holdings Taiwan Investment business 10,200 10,200 1,020 51 9,158 (183 ) (93 ) Joint<br>venture
WiAdvance Technology Corporation Taiwan Software solution integration 273,800 273,800 3,700 16 269,006 (10,451 ) (4,433 ) Associate
Taiwania Hive Technology Fund L.P. Cayman<br>Islands Investment business 288,405 288,405 — 40 243,794 (25,353 ) (10,405 ) 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 — (10,648 ) — Associate
Senao International Co., Ltd. Senao Networks, Inc. Taiwan Telecommunication facilities manufactures and sales 578,186 578,186 19,582 33 1,983,154 228,564 75,783 Associate
Youth Co., Ltd. Taiwan Sale of information and communication technologies products 427,850 427,850 14,752 96 155,701 (1,649 ) (5,697 ) Subsidiary<br>(Note 5)
Aval Technologies Co., Ltd. Taiwan Sale of information and communication technologies products 89,550 89,550 13,740 100 144,069 1,351 1,348 Subsidiary<br>(Note 5)
Senyoung Insurance Agent Co., Ltd. Taiwan Property and liability insurance agency 59,000 59,000 8,909 100 123,547 16,671 16,671 Subsidiary<br>(Note 5)
CHIEF Telecom Inc. Unigate Telecom Inc. Taiwan Telecommunications and internet service 2,000 2,000 200 100 1,484 38 38 Subsidiary<br>(Note 5)
Chief International Corp. Samoa<br>Islands Telecommunications and internet service 6,068 6,068 200 100 41,203 3,056 3,056 Subsidiary<br>(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 38 381,135 242,528 92,476 Associate
CHT Infinity Singapore Pte., Ltd. Singapore Investment business 55,720 55,720 2,000 40 50,828 (1,718 ) (687 ) Associate
Chunghwa Telecom Malaysia SDN. BHD. Malaysia International private leased circuit, IP VPN service, and ICT services — — — 100 — — — Subsidiary<br>(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 2,804,783 436,786 149,594 Subsidiary<br>(Note 5)
CHIEF Telecom Inc. Taiwan Network integration, internet data center (“IDC”), communications integration and cloud application<br>services 19,064 19,064 2,286 3 104,390 642,039 18,826 Associate<br>(Note 5)
Senao International Co., Ltd. Taiwan Selling and maintaining mobile phones and its peripheral products 49,731 49,731 1,001 — 44,696 199,463 773 Associate<br>(Note 5)
AgriTalk Technology Inc. Taiwan Providing smart agricultural solutions, scientific agricultural product, biological inhibitor, and biochips 65,175 65,175 3,300 29 24,004 (8,346 ) (2,250 ) Associate

(Continued)

  • 85 -

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)

SIX MONTHS ENDED JUNE 30, 2025

(Amounts inThousands of New Taiwan Dollars)

Investor Company Investee Company Location Main Businesses and Products Original Investment Amount Balance as of June 30, 2025 Net Income(Loss) of theInvestee RecognizedGain (Loss)<br>(Notes 1 and 2) Note
June 30,2025 December 31,2024 Shares<br>(Thousands) Percentage ofOwnership(%) 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 $ 54,203 $ (20,393 ) $ (2,609 ) Associate
Porrima Inc. Taiwan Designing and selling zero-emission ships 80,000 80,000 8,000 10 74,696 (29,386 ) (2,939 ) Associate
Gather Works Co., Ltd. Taiwan Film and drama IP development, copyright management and copyright sales 14,400 — 1,440 48 13,898 (1,046 ) (502 ) Associate
Chunghwa Precision Test Tech. Co., Ltd. Chunghwa Precision Test Tech USA Corporation United<br>States Design and after-sale services of semiconductor testing components and printed circuit board 74,192 74,192 2,600 100 102,466 4,735 4,753 Subsidiary<br>(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 2,210 54 54 Subsidiary<br>(Note 5)
Chunghwa Precision Test Tech. International, Ltd. Samoa<br>Islands Wholesale and retail of electronic materials, and investment 173,649 173,649 5,700 100 134,837 (15,018 ) (13,259 ) Subsidiary<br>(Note 5)
TestPro Investment Co., Ltd. Taiwan Investment 135,000 135,000 13,500 100 29,647 (7,133 ) (6,185 ) Subsidiary<br>(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<br>service 108,500 108,500 10,850 54 23,890 (13,285 ) (7,207 ) Subsidiary<br>(Note 5)
Prime Asia Investments Group, Ltd. Chunghwa Hsingta Co., Ltd. Hong<br>Kong Investment 375,274 375,274 1 100 166,886 (1,067 ) (1,067 ) Subsidiary<br>(Note 5)
Youth Co., Ltd. ISPOT Co., Ltd. Taiwan Sale of information and communication technologies products 53,021 53,021 — 100 13,286 (147 ) (163 ) Subsidiary<br>(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 53,187 587 587 Subsidiary<br>(Note 5)
CHYP Multimedia Marketing & Communications Co., Ltd Click Force Marketing Company Taiwan Advertisement services 44,607 44,607 1,960 49 47,477 (7,404 ) (3,533 ) Associate
International Integrated Systems, Inc. Unitronics Technology Corp. Taiwan Development and maintenance of information system 55,610 55,610 5,067 100 73,148 (1,126 ) (1,126 ) Subsidiary<br>(Note 5)
CHT Security Co., Ltd. Baohwa Trust Co., Ltd. Taiwan VR integration and AIoT security services 20,000 20,000 2,000 25 14,869 11,609 2,902 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<br>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<br>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.
--- ---

(Concluded)

  • 86 -

TABLE 6

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

INVESTMENTS IN MAINLAND CHINA

SIX MONTHS ENDEDJUNE 30, 2025

(Amounts in Thousands of New Taiwan Dollars)

Investee Main<br>Businesses<br>and<br>Products Total Amountof Paid-inCapital InvestmentType<br>(Note 1) AccumulatedOutflow ofInvestmentfrom Taiwanas ofJanuary 1,2025 Investment<br>Flows AccumulatedOutflow ofInvestmentfrom Taiwanas ofJune 30,2025 Net Income(Loss) of theInvestee % Ownershipof Direct orIndirectInvestment Investment<br>Gain(Loss)<br>(Note 2) Carrying Valueas of<br>June 30,<br>2025 AccumulatedInwardRemittanceof Earningsas ofJune 30,2025 Note
Outflow Inflow
Chunghwa Telecom (China) Co., Ltd. Integrated<br>information and<br>communication<br>solution services for<br>enterprise clients,<br>and intelligent<br>energy network<br>service $ 177,176 2 $ 177,176 $ — $ — $ 177,176 $ — 100 $ — $ — $ — Notes 6 and 9
Jiangsu Zhenghua Information Technology Company, LLC Providing intelligent<br>energy saving<br>solution and<br>intelligent buildings<br>services 189,410 2 142,057 — — 142,057 — 75 — — — Notes 7 and 9
Shanghai Taihua Electronic Technology Limited Design of printed<br>circuit board and<br>related consultation<br>service 51,233 2 51,233 — — 51,233 564 100 564 8,856 — Notes 8 and 9
Su Zhou Precision Test Tech. Ltd. Assembly processed<br>of circuit board,<br>design of printed<br>circuit board and<br>related consultation<br>service 119,199 2 119,199 — — 119,199 (15,659 ) 100 (15,659 ) 127,923 — Notes 8 and 9
Shanghai Chief Telecom Co., Ltd. Telecommunications<br>and internet service 10,150 1 4,973 — — 4,973 2,838 49 1,390 6,472 10,194 Note 9
Investee Accumulated Investment in<br>Mainland China as of<br>June 30, 2025 Investment AmountsAuthorized by InvestmentCommission, MOEA Upper Limit on InvestmentStipulated by InvestmentCommission, MOEA
--- --- --- --- --- --- ---
Chunghwa Telecom Co., Ltd. (Note 3) $ 319,233 $ 319,233 $ 227,773,933
Chunghwa Precision Test Tech. Co., Ltd. and its subsidiaries (Note 4) 170,432 216,185 4,922,658
CHIEF Telecom Inc. and its subsidiaries (Note 5) 4,973 4,973 2,140,871
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.,<br>Ltd.
--- ---
Note 4: Chunghwa Precision Test Tech. Co., Ltd. and its subsidiaries were calculated based on the consolidated net<br>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<br>Telecom Inc.
--- ---
Note 6: Chunghwa Telecom (China) Co., Ltd., a reinvestment through Chunghwa Hsingta Co., Ltd., completed its<br>liquidation in October 2022.
--- ---
Note 7: Jiangsu Zhenhua Information Technology Company, LLC., a reinvestment through Chunghwa Hsingta Co., Ltd.,<br>completed its liquidation in December 2018.
--- ---
Note 8: Shanghai Taihua Electronic Technology Limited and Su Zhou Precision Test Tech. Ltd. were reinvestments through<br>Chunghwa Precision Test Tech. International, Ltd.
--- ---
Note 9: The amount was eliminated upon consolidation.
--- ---
  • 87 -

TABLE 7

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS

SIX MONTHS ENDED JUNE 30, 2025

(Amounts inThousands of New Taiwan Dollars)

Year No.<br>(Note 1) Company Name Related Party Nature ofRelationship<br>(Note 2) Transaction Details
Financial Statement Account Amount<br>(Note 5) Payment Terms<br>(Note 3) % to TotalSales or Assets(Note 4)
2025 0 Chunghwa Telecom Co., Ltd. Senao International Co., Ltd. a Accounts receivable $ 297,541 — —
Accounts payable 971,765 — —
Amounts collected for others 158,285 — —
Revenues 2,002,107 — 2
Operating costs and expenses 634,467 — 1
CHIEF Telecom Inc. a Revenues 260,770 — —
Chunghwa System Integration Co., Ltd. a Accounts payable 213,403 — —
Operating costs and expenses 490,902 — —
Honghwa International Co., Ltd. a Accounts payable 1,136,886 — —
Revenues 113,070 — —
Operating costs and expenses 3,527,131 — 3
Donghwa Telecom Co., Ltd. a Operating costs and expenses 241,349 — —
Chunghwa Telecom Global Inc. a Operating costs and expenses 131,896 — —
CHT Security Co., Ltd. a Operating costs and expenses 131,704 — —
International Integrated Systems, Inc. a Operating costs and expenses 344,629 — —
Note 1: Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as<br>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<br>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 June 30,<br>2025, while revenues, costs and expenses are shown as a percentage to consolidated revenues for the six months ended June 30, 2025.
--- ---
Note 5: The amount was eliminated upon consolidation.
--- ---
  • 88 -

EX-99.3

Exhibit 99.3

Chunghwa Telecom Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the

Six MonthsEnded June 30, 2025 and 2024

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Millions of New TaiwanDollars)

June 30, 2025<br>(Unaudited) December 31, 2024<br>(Audited) June 30, 2024<br>(Unaudited)
Amount % Amount % Amount %
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 35,033 6 $ 36,260 7 $ 37,712 7
Financial assets at fair value through profit or loss 1 — — — 1 —
Hedging financial assets — — 1 — — —
Contract assets 8,062 2 8,401 1 7,495 2
Trade notes and accounts receivable, net 23,649 5 26,026 5 23,631 4
Receivables from related parties 128 — 193 — 86 —
Inventories 11,947 2 12,087 2 11,072 2
Prepayments 6,300 1 3,138 1 6,370 1
Other current monetary assets 39,731 7 23,408 4 32,417 6
Incremental costs of obtaining contracts 339 — 339 — 282 —
Other current assets 3,508 1 3,115 1 3,809 1
Total current assets 128,698 24 112,968 21 122,875 23
NONCURRENT ASSETS
Financial assets at fair value through profit or loss 1,110 — 1,005 — 1,072 —
Financial assets at fair value through other comprehensive income 5,770 1 4,667 1 4,966 1
Financial assets at amortized cost 2,000 — 2,000 — — —
Investments accounted for using equity method 8,543 2 8,879 2 8,211 2
Contract assets 4,402 1 4,327 1 4,166 1
Property, plant and equipment 285,035 52 289,840 54 284,970 53
Right-of-use<br>assets 11,121 2 10,912 2 11,130 2
Investment properties 12,281 2 12,302 2 11,506 2
Intangible assets 63,003 12 66,283 12 69,489 13
Deferred income tax assets 1,747 — 1,661 — 2,063 —
Incremental costs of obtaining contracts 1,174 — 1,222 — 1,060 —
Net defined benefit assets 9,227 2 8,884 2 6,278 1
Prepayments 5,457 1 4,461 1 3,895 1
Other noncurrent assets 4,727 1 4,886 2 4,572 1
Total noncurrent assets 415,597 76 421,329 79 413,378 77
TOTAL $ 544,295 100 $ 534,297 100 $ 536,253 100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans $ 480 — $ 215 — $ 365 —
Financial liabilities at fair value through profit or loss — — — — — —
Hedging financial liabilities 13 — 2 — — —
Contract liabilities 16,457 3 16,301 3 15,219 3
Trade notes and accounts payable 11,121 2 17,743 3 9,827 2
Payables to related parties 145 — 480 — 226 —
Current tax liabilities 6,424 1 6,822 1 5,773 1
Lease liabilities 3,804 1 3,558 1 3,562 1
Dividends Payable 38,787 7 — — 36,910 7
Other payables 23,170 4 26,581 5 22,467 4
Provisions 661 — 442 — 317 —
Current portion of long-term loans 10,708 2 8,803 2 1,600 —
Other current liabilities 947 — 1,050 — 978 —
Total current liabilities 112,717 20 81,997 15 97,244 18
NONCURRENT LIABILITIES
Long-term loans 1,627 — 1,631 1 — —
Bonds payable 19,792 4 21,689 4 30,486 6
Contract liabilities 6,971 1 7,541 2 7,725 2
Deferred income taxes liabilities 2,720 1 2,658 1 2,573 1
Provisions 317 — 535 — 498 —
Lease liabilities 7,236 1 7,334 1 7,452 1
Customers’ deposits 5,179 1 5,311 1 5,137 1
Net defined benefit liabilities 2,134 — 2,107 — 2,138 —
Other noncurrent liabilities 7,255 1 7,688 1 6,916 1
Total noncurrent liabilities 53,231 9 56,494 11 62,925 12
Total liabilities 165,948 29 138,491 26 160,169 30
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT
Common stocks 77,574 15 77,574 15 77,574 14
Additional paid-in capital 150,060 28 150,054 28 149,828 28
Retained earnings
Legal reserve 77,574 15 77,574 15 77,574 14
Special reserve 2,676 — 2,676 — 2,676 —
Unappropriated earnings 56,528 10 74,362 14 55,589 11
Total retained earnings 136,778 25 154,612 29 135,839 25
Others 1,193 — 586 — 722 —
Total equity attributable to stockholders of the parent 365,605 68 382,826 72 363,963 67
NONCONTROLLING INTERESTS 12,742 3 12,980 2 12,121 3
Total equity 378,347 71 395,806 74 376,084 70
TOTAL $ 544,295 100 $ 534,297 100 $ 536,253 100
  • 1 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(InMillions of New Taiwan Dollars, Except Earnings Per Share)

(Unaudited)

Three Months Ended June 30 Six Months Ended June 30
2025 2024 2025 2024
Amount % Amount % Amount % Amount %
REVENUES $ 56,731 100 $ 54,116 100 $ 112,539 100 $ 109,059 100
OPERATING COSTS 34,955 62 33,286 62 69,158 61 67,740 62
GROSS PROFIT 21,776 38 20,830 38 43,381 39 41,319 38
OPERATING EXPENSES
Marketing 6,412 11 6,191 11 12,552 11 12,122 11
General and administrative 1,795 3 1,680 3 3,588 3 3,317 3
Research and development 1,101 2 1,005 2 2,131 2 1,948 2
Expected credit loss (reversal of credit loss) (72 ) — 24 — 48 — 80 —
Total operating expenses 9,236 16 8,900 16 18,319 16 17,467 16
OTHER INCOME AND EXPENSES 5 — (4 ) — 6 — (1 ) —
INCOME FROM OPERATIONS 12,545 22 11,926 22 25,068 23 23,851 22
NON-OPERATING INCOME AND EXPENSES
Interest income 302 — 239 — 514 — 395 1
Other income 344 1 287 1 381 — 325 —
Other gains and losses 31 — (48 ) — 6 — (33 ) —
Interest expenses (93 ) — (83 ) — (182 ) — (166 ) —
Share of profits of associates and joint ventures accounted for using equity method 5 — 24 — 43 — 37 —
Total non-operating income and expenses 589 1 419 1 762 — 558 1
INCOME BEFORE INCOME TAX 13,134 23 12,345 23 25,830 23 24,409 23
INCOME TAX EXPENSE 1,049 2 843 2 4,013 4 3,657 3
NET INCOME 12,085 21 11,502 21 21,817 19 20,752 20
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<br>comprehensive income 469 1 (386 ) (1 ) 1,037 1 241 —
Gain or loss on hedging instruments subject to basis adjustment (13 ) — — — (12 ) — — —
Share of other comprehensive income (loss) of associates and joint ventures (2 ) — 1 — (1 ) — 1 —
454 1 (385 ) (1 ) 1,024 1 242 —

(Continued)

  • 2 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(InMillions of New Taiwan Dollars, Except Earnings Per Share)

(Unaudited)

Three Months Ended June 30 Six Months Ended June 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 $ (505 ) (1 ) $ 33 — $ (431 ) — $ 137 —
Share of other comprehensive income (loss) of associates and joint ventures (30 ) — (3 ) — (23 ) — 22 —
(535 ) (1 ) 30 — (454 ) — 159 —
Total other comprehensive income (loss), net of income tax (81 ) — (355 ) (1 ) 570 1 401 —
TOTAL COMPREHENSIVE INCOME $ 12,004 21 $ 11,147 20 $ 22,387 20 $ 21,153 20
NET INCOME ATTRIBUTABLE TO
Stockholders of the parent $ 11,636 20 $ 11,207 20 $ 20,955 18 $ 20,217 20
Noncontrolling interests 449 1 295 1 862 1 535 —
$ 12,085 21 $ 11,502 21 $ 21,817 19 $ 20,752 20
COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent $ 11,596 20 $ 10,848 19 $ 21,560 19 $ 20,586 19
Noncontrolling interests 408 1 299 1 827 1 567 1
$ 12,004 21 $ 11,147 20 $ 22,387 20 $ 21,153 20
EARNINGS PER SHARE
Basic $ 1.50 $ 1.45 $ 2.70 $ 2.61
Diluted $ 1.50 $ 1.44 $ 2.70 $ 2.60

(Concluded)

  • 3 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(InMillions of New Taiwan Dollars)

(Unaudited)

Equity Attributable to Stockholders of the Parent
Others
Exchange
Differences
Arising Unrealized
from the Gain or Loss Total Equity
Retained Earnings Translation of on Financial Gain or Loss Attributable to
Additional Special Unappropriated Total Retained the Foreign Assets at on Hedging Stockholders Noncontrolling
Common Stocks Paid-in Capital Legal Reserve Reserve Earnings Earnings Operations FVOCI Instruments Total Others of the Parent 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 recognized by Chunghwa — — — — (36,910 ) (36,910 ) — — — — (36,910 ) — (36,910 )
Cash dividends recognized by subsidiaries — — — — — — — — — — — (898 ) (898 )
Net income for the six months ended June 30, 2024 — — — — 20,217 20,217 — — — — 20,217 535 20,752
Other comprehensive income for the six months ended June 30, 2024 — — — — — — 135 234 — 369 369 32 401
Total comprehensive income for the six months ended June 30, 2024 — — — — 20,217 20,217 135 234 — 369 20,586 567 21,153
Changes in equities of subsidiaries — — — — — — — — — — — 18 18
Net increase in noncontrolling interests — — — — — — — — — — — 2 2
BALANCE, JUNE 30, 2024 $ 77,574 $ 149,828 $ 77,574 $ 2,676 $ 55,589 $ 135,839 $ (33 ) $ 755 $ — $ 722 $ 363,963 $ 12,121 $ 376,084
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 recognized by Chunghwa — — — — (38,787 ) (38,787 ) — — — — (38,787 ) — (38,787 )
Cash dividends recognized by subsidiaries — — — — — — — — — — — (1,094 ) (1,094 )
Net income for the six months ended June 30, 2025 — — — — 20,955 20,955 — — — — 20,955 862 21,817
Other comprehensive income (loss) for the six months ended June 30, 2025 — — — — (2 ) (2 ) (417 ) 1,036 (12 ) 607 605 (35 ) 570
Total comprehensive income (loss) for the six months ended June 30, 2025 — — — — 20,953 20,953 (417 ) 1,036 (12 ) 607 21,560 827 22,387
Changes in equities of subsidiaries — 6 — — — — — — — — 6 10 16
Net increase in noncontrolling interests — — — — — — — — — — — 19 19
BALANCE, JUNE 30, 2025 $ 77,574 $ 150,060 $ 77,574 $ 2,676 $ 56,528 $ 136,778 $ (394 ) $ 1,600 $ (13 ) $ 1,193 $ 365,605 $ 12,742 $ 378,347
  • 4 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions ofNew Taiwan Dollars)

(Unaudited)

Six Months Ended June 30
2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax $ 25,830 $ 24,409
Adjustments to reconcile income before income tax to net cash provided by operating<br>activities:
Depreciation 16,708 16,450
Amortization 3,336 3,345
Amortization of incremental costs of obtaining contracts 472 437
Expected credit loss 48 80
Valuation loss on financial assets and liabilities at fair value through profit or loss,<br>net 85 72
Interest expense 182 166
Interest income (514 ) (395 )
Dividend income (275 ) (235 )
Compensation cost of share-based payment transactions 2 4
Share of profits of associates and joint ventures accounted for using equity method (43 ) (37 )
Loss (gain) on disposal of property, plant and equipment (6 ) 1
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 14 36
Gain on disposal of subsidiaries (15 ) —
Others (52 ) 34
Changes in operating assets and liabilities:
Decrease (increase) in:
Contract assets 256 (1,181 )
Trade notes and accounts receivable 2,300 1,126
Receivables from related parties 65 (8 )
Inventories 119 413
Prepayments (2,968 ) (3,405 )
Other current assets (396 ) (987 )
Other current monetary assets (205 ) (71 )
Incremental cost of obtaining contracts (424 ) (629 )
Increase (decrease) in:
Contract liabilities (407 ) 1,296
Trade notes and accounts payable (6,613 ) (4,569 )
Payables to related parties (335 ) (159 )
Other payables (2,876 ) (2,127 )
Provisions 1 (7 )
Net defined benefit plans (316 ) (275 )
Other current liabilities (106 ) (4 )
Cash generated from operations 33,873 33,718

(Continued)

  • 5 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions ofNew Taiwan Dollars)

(Unaudited)

Six Months Ended June 30
2025 2024
Interests paid $ (154 ) $ (138 )
Income taxes paid (4,436 ) (4,349 )
Net cash provided by operating activities 29,283 29,231
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income (65 ) (313 )
Proceeds from capital reduction of financial assets at fair value through other comprehensive<br>income — 3
Acquisition of financial assets at fair value through profit or loss (191 ) (112 )
Proceeds from disposal of financial assets at fair value through profit or loss — 5
Acquisition of investments accounted for using equity method (14 ) (112 )
Net cash outflow from loss of control of subsidiaries (9 ) —
Acquisition of property, plant and equipment (11,490 ) (10,250 )
Proceeds from disposal of property, plant and equipment 10 8
Acquisition of intangible assets (54 ) (102 )
Acquisition of investment properties (2 ) —
Acquisition of time deposits, negotiable certificates of deposit and commercial paper with<br>maturities of more than three months (34,494 ) (47,078 )
Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper<br>with maturities of more than three months 18,771 35,505
Decrease in other noncurrent assets 129 55
Increase in prepayments for leases (1,191 ) (690 )
Interests received 369 381
Dividends received 159 153
Proceeds from profit distribution of financial assets at fair value through profit or<br>loss 1 —
Net cash used in investing activities (28,071 ) (22,547 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans 580 540
Repayments of short-term loans (250 ) (760 )
Decrease in customers’ deposits (121 ) (173 )
Payments for the principal of lease liabilities (2,116 ) (1,941 )
Decrease in other noncurrent liabilities (433 ) (490 )
Cash dividends distributed to noncontrolling interests (1 ) (4 )
Change in other noncontrolling interests 13 14
Net cash used in financing activities (2,328 ) (2,814 )

(Continued)

  • 6 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions ofNew Taiwan Dollars)

(Unaudited)

Six Months Ended June 30
2025 2024
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS $ (111 ) $ 18
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,227 ) 3,888
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 36,260 33,824
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 35,033 $ 37,712

(Concluded)

  • 7 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NOTE TO CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHSENDED JUNE 30, 2025 and 2024

(Unaudited)

STATEMENT OF COMPLIANCE

The Company has prepared its consolidated balance sheets as of June 30, 2025 and 2024, the related consolidated statements of comprehensive income for the three months ended June 30, 2025 and 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the six months ended June 30, 2025 and 2024 in accordance with IAS 34 “Interim Financial Reporting” as issued by the International Accounting Standards 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 -

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