Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

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 9, 2024

Chunghwa Telecom Co., Ltd.

(Translation of Registrant’s Name into English)

21-3 Xinyi Road Sec. 1,

Taipei, Taiwan, 100 R.O.C.

(Address of Principal Executive Office)

(Indicate by check mark whether the registrant files or will file annual reports under cover of form 20-F or Form 40-F.)

Form 20-F ☒ Form 40-F ☐

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

Yes ☐ No ☒

(If “Yes” is marked, indicated below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable)

EXHIBIT INDEX


Exhibit		Description

99.1		To announce the differences between consolidated financial statements for the six months ended June 30, 2024 under Taiwan-IFRSs and that under IFRSs

99.2		Consolidated Financial Statements for the Six Months Ended June 30, 2024 and 2023 and Independent Auditors’ Review Report pursuant to International Financial Reporting Standards adopted by ROC (“Taiwan-IFRSs”)

99.3		Consolidated Financial Statements for the Six Months Ended June 30, 2024 and 2023 pursuant to International Financial Reporting Standards issued by the International Accounting Standards Board (“IFRSs”)

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 9, 2024


Chunghwa Telecom Co., Ltd.

By:		/s/ Yu-Shen Chen
Name:		Yu-Shen Chen
Title:		Chief Financial Officer

Exhibit 99.1

To announce the differences between consolidated financial statements for the six months ended June 30, 2024 under Taiwan-IFRSs and that under IFRSs

Date of events: 2024/08/09

Contents:

1.	Date of occurrence of the event: 2024/8/9

2.	Of which year/ quarter financial report required to be adjusted: The second quarter of 2024

3.	Accounting principles applied (domestic listing securities):

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 (domestic listing securities):

Under Taiwan-IFRSs, Chunghwa Telecom Co., Ltd. and its subsidiaries (or the “Company”) reported consolidated net income of NT$10,111,205 thousand and NT$19,715,388 thousand, consolidated net income attributable to stockholders of the parent of NT$9,819,867 thousand and NT$19,211,286 thousand, and basic earnings per share of NT$1.27 and NT$2.48 for the three months and six months ended June 30, 2024, respectively. The Company also reported total consolidated assets of NT$536,436,240 thousand, total consolidated liabilities of NT$159,143,857 thousand, and total consolidated equity of NT$377,292,383 thousand as of June 30, 2024.

5.	Accounting principles applied (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$11,502 million and NT$20,752 million, consolidated net income attributable to stockholders of the parent of NT$11,207 million and NT$20,217 million, and basic earnings per share of NT$1.45 and NT$2.61 for the three months and six months ended June 30, 2024, respectively. The Company also reported total consolidated assets of NT$536,253 million, total consolidated liabilities of NT$160,169 million, and total consolidated equity of NT$376,084 million as of June 30, 2024.

7.	Cause of the inconsistency:

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.

Exhibit 99.2

Chunghwa Telecom Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the

Six Months Ended June 30, 2024 and 2023 and

Independent Auditors’ Review Report

INDEPENDENT AUDITORS’ REVIEW REPORT

PWCR24001402

To the Board of Directors and Shareholders 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, 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 period 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, 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 period 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.

- 1 -

Other matter - Prior period financial statements reviewed by other independent auditors

The Company’s consolidated financial statements as of and for the six-month period ended June 30, 2023 were reviewed by other independent auditors, whose review report dated August 9, 2023, expressed an unmodified conclusion on those consolidated financial statements.


/s/ Huang, Shih-Chun				/s/ Hsu, Chien-Yeh

For and on behalf of PricewaterhouseCoopers, Taiwan

August 9, 2024

Notice to Readers

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ review report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)


	June 30, 2024				December 31, 2023				June 30, 2023
	Amount		%		Amount		%		Amount		%
ASSETS
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$	37,711,905		7	$	33,823,884		6	$	49,754,425		10
Financial assets at fair value through profit or loss (Note 7)		1,539		—		904		—		3,878		—
Hedging financial assets (Note 20)		313		—		—		—		9,932		—
Contract assets (Note 29)		7,495,318		1		6,713,227		1		6,709,840		1
Trade notes and accounts receivable, net (Notes 9 and 29)		23,630,846		5		24,841,995		5		21,996,030		4
Receivables from related parties (Note 37)		86,178		—		78,089		—		100,950		—
Inventories (Note 10)		11,071,753		2		11,520,765		2		10,773,399		2
Prepayments (Note 11)		6,370,093		1		2,839,471		1		5,401,906		1
Other current monetary assets (Note 12)		32,416,618		6		20,352,050		4		18,633,936		3
Incremental costs of obtaining contracts (Note 29)		281,637		—		210,923		—		—		—
Other current assets (Notes 19 and 38)		3,808,980		1		2,822,259		1		3,681,675		1

Total current assets		122,875,180		23		103,203,567		20		117,065,971		22

NONCURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7)		1,071,625		—		1,035,701		—		1,028,334		—
Financial assets at fair value through other comprehensive income (Note 8)		4,965,921		1		4,412,343		1		3,928,302		1
Investments accounted for using equity method (Note 14)		8,394,349		2		8,450,199		2		7,087,064		1
Contract assets (Note 29)		4,165,895		1		3,768,645		1		3,414,107		1
Property, plant and equipment (Notes 15, 34, 37 and 38)		284,970,301		53		292,337,742		56		287,487,367		54
Right-of-use assets (Notes 16 and 37)		11,130,387		2		11,237,814		2		11,159,864		2
Investment properties (Note 17)		11,505,658		2		9,805,463		2		10,157,560		2
Intangible assets (Notes 18 and 37)		69,488,813		13		72,726,545		13		75,901,595		14
Deferred income tax assets (Note 3)		2,063,121		—		2,099,439		—		2,138,550		—
Incremental costs of obtaining contracts (Note 29)		1,059,621		—		939,409		—		950,431		—
Net defined benefit assets (Note 3)		6,278,381		1		5,963,259		1		5,578,735		1
Prepayments (Notes 11 and 39)		3,895,015		1		3,330,583		1		2,749,674		1
Other noncurrent assets (Notes 19, 38 and 39)		4,571,973		1		4,628,692		1		4,379,905		1

Total noncurrent assets		413,561,060		77		420,735,834		80		415,961,488		78

TOTAL	$	536,436,240		100	$	523,939,401		100	$	533,027,459		100

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans (Note 21)	$	365,000		—	$	585,000		—	$	654,000		—
Financial liabilities at fair value through profit or loss (Note 7)		141		—		—		—		—		—
Hedging financial liabilities (Note 20)		212		—		44		—		—		—
Contract liabilities (Notes 29 and 39)		15,219,078		3		14,088,416		3		12,763,432		2
Trade notes and accounts payable (Note 24)		9,826,528		2		14,395,740		3		10,518,881		2
Payables to related parties (Note 37)		225,571		—		385,089		—		265,966		—
Current tax liabilities (Note 3)		4,747,572		1		4,626,265		1		5,128,892		1
Lease liabilities (Notes 16, 34 and 37)		3,561,502		1		3,504,990		1		3,330,367		1
Dividends payable (Note 28)		36,909,931		7		—		—		36,475,514		7
Other payables (Notes 25 and 34)		22,466,992		4		25,256,926		5		22,348,519		4
Provisions (Note 26)		317,116		—		337,406		—		224,017		—
Current portion of long-term loans (Notes 22 and 38)		1,600,000		—		1,600,000		—		—		—
Other current liabilities		978,980		—		983,339		—		894,366		—

Total current liabilities		96,218,623		18		65,763,215		13		92,603,954		17

NONCURRENT LIABILITIES
Long-term loans (Notes 22 and 38)		—		—		—		—		1,600,000		—
Bonds payable (Note 23)		30,485,537		6		30,482,766		6		30,480,098		6
Contract liabilities (Note 29)		7,724,889		1		7,560,352		2		7,589,167		2
Deferred income tax liabilities (Note 3)		2,572,860		1		2,460,509		—		2,367,566		—
Provisions (Note 26)		498,285		—		485,267		—		473,529		—
Lease liabilities (Notes 16, 34 and 37)		7,452,555		1		7,470,191		2		7,326,764		2
Customers’ deposits (Note 37)		5,136,924		1		5,309,097		1		5,069,394		1
Net defined benefit liabilities (Note 3)		2,137,615		1		2,098,106		—		2,271,964		—
Other noncurrent liabilities		6,916,569		1		7,405,558		1		6,482,764		1

Total noncurrent liabilities		62,925,234		12		63,271,846		12		63,661,246		12

Total liabilities		159,143,857		30		129,035,061		25		156,265,200		29

EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT (Notes 13 and 28)
Common stocks		77,574,465		14		77,574,465		15		77,574,465		15

Additional paid-in capital		171,351,359		32		171,289,086		32		171,302,354		32

Retained earnings
Legal reserve		77,574,465		14		77,574,465		15		77,574,465		15
Special reserve		2,675,419		1		2,898,503		1		2,898,503		1
Unappropriated earnings		35,143,469		7		52,618,677		10		35,152,768		6

Total retained earnings		115,393,353		22		133,091,645		26		115,625,736		22

Others		721,309		—		352,892		—		217,854		—

Total equity attributable to stockholders of the parent		365,040,486		68		382,308,088		73		364,720,409		69
NONCONTROLLING INTERESTS (Notes 13 and 28)		12,251,897		2		12,596,252		2		12,041,850		2

Total equity		377,292,383		70		394,904,340		75		376,762,259		71

TOTAL	$	536,436,240		100	$	523,939,401		100	$	533,027,459		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

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)


	Three Months Ended June 30											Six Months Ended June 30
	2024						2023					2024					2023
	Amount			%			Amount			%		Amount			%		Amount			%
REVENUES (Notes 29, 37 and 42)	$	54,115,733			100		$	53,463,651			100	$	109,059,204			100	$	107,674,556			100
OPERATING COSTS (Notes 10, 27, 30 and 37)		33,286,141			62			33,076,273			62		67,740,433			62		66,706,089			62

GROSS PROFIT		20,829,592			38			20,387,378			38		41,318,771			38		40,968,467			38

OPERATING EXPENSES (Notes 9, 27, 30 and 37)
Marketing		6,189,996			11			5,603,963			10		12,121,515			11		11,275,713			10
General and administrative		1,680,050			3			1,630,787			3		3,317,157			3		3,287,912			3
Research and development		1,004,688			2			923,220			2		1,947,755			2		1,901,258			2
Expected credit loss (reversal of credit loss)		24,155			—			(29,559	)		—		79,941			—		70,809			—

Total operating expenses		8,898,889			16			8,128,411			15		17,466,368			16		16,535,692			15

OTHER INCOME AND EXPENSES (Note 30)		(3,209	)		—			1,671			—		(689	)		—		1,627			—

INCOME FROM OPERATIONS		11,927,494			22			12,260,638			23		23,851,714			22		24,434,402			23

NON-OPERATING INCOME AND EXPENSES
Interest income (Note 37)		238,965			—			200,832			—		394,765			—		318,543			—
Other income (Notes 30 and 37)		287,633			1			204,143			—		325,402			—		248,929			—
Other gains and losses (Notes 30, 36 and 37)		(32,887	)		—			(48,797	)		—		(94,151	)		—		(152,761	)		—
Interest expenses (Notes 16, 30 and 37)		(83,173	)		—			(77,661	)		—		(166,460	)		—		(153,073	)		—
Share of profits of associates and joint ventures accounted for using equity method (Note 14)		8,693			—			120,505			—		23,195			—		223,613			—

Total non-operating income and expenses		419,231			1			399,022			—		482,751			—		485,251			—

INCOME BEFORE INCOME TAX		12,346,725			23			12,659,660			23		24,334,465			22		24,919,653			23
INCOME TAX EXPENSE (Notes 3 and 31)		2,235,520			4			2,452,971			4		4,619,077			4		4,839,918			4

NET INCOME		10,111,205			19			10,206,689			19		19,715,388			18		20,079,735			19

TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified to profit or loss:
Unrealized gain or loss on investments in equity instruments at fair value through other comprehensive income (Notes 28 and 36)		(385,670	)		(1	)		(111,911	)		—		240,798			—		436,921			—
Gain or loss on hedging instruments subject to basis adjustment (Note 20)		72			—			8,736			—		145			—		(2,959	)		—
Share of other comprehensive income (loss) of associates and joint ventures (Note 14)		1,363			—			(2,461	)		—		1,239			—		7,652			—

		(384,235	)		(1	)		(105,636	)		—		242,182			—		441,614			—

(Continued)

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)


	Three Months Ended June 30											Six Months Ended June 30
	2024						2023					2024				2023
	Amount			%			Amount			%		Amount		%		Amount		%
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations	$	33,070			—		$	54,038			—	$	136,849		—	$	6,815		—
Share of other comprehensive income of associates and joint ventures (Note 14)		(4,262	)		—			2,940			—		21,370		—		2,120		—

		28,808			—			56,978			—		158,219		—		8,935		—

Total other comprehensive income (loss), net of income tax		(355,427	)		(1	)		(48,658	)		—		400,401		—		450,549		—

TOTAL COMPREHENSIVE INCOME	$	9,755,778			18		$	10,158,031			19	$	20,115,789		18	$	20,530,284		19

NET INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	9,819,867			17		$	9,921,274			18	$	19,211,286		18	$	19,564,529		19
Noncontrolling interests		291,338			1			285,415			1		504,102		—		515,206		—

	$10,111,205			18			$10,206,689			19		$19,715,388		18		$20,079,735		19

COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	9,460,822			17		$	9,872,306			18	$	19,580,056		18	$	20,015,580		19
Noncontrolling interests		294,956			1			285,725			1		535,733		—		514,704		—

	$9,755,778			18			$10,158,031			19		$20,115,789		18		$20,530,284		19

EARNINGS PER SHARE (Note 32)
Basic	$	1.27					$	1.28				$	2.48			$	2.52

Diluted	$	1.27					$	1.28				$	2.47			$	2.52


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

(In Thousands of New Taiwan Dollars)


	Equity Attributable to Stockholders of the Parent (Notes 13, 20 and 28)
														Others
																	Unrealized Gain
														Exchange			or Loss on
														Differences			Financial Assets
														Arising from the			at Fair Value
						Retained Earnings								Translation of			Through Other			Gain or Loss						Noncontrolling
			Additional								Unappropriated			the Foreign			Comprehensive			on Hedging						Interests
	Common Stocks		Paid-in Capital			Legal Reserve		Special Reserve			Earnings			Operations			Income			Instruments			Total			(Notes 13 and 28)			Total Equity
BALANCE, JANUARY 1, 2023	$	77,574,465	$	171,300,898		$	77,574,465	$	3,083,569		$	51,868,574		$	(111,213	)	$	(124,762	)	$	12,891		$	381,178,887		$	12,599,541		$	393,778,428
Appropriation of 2022 earnings
Special reserve		—		—			—		(185,066	)		185,066			—			—			—			—			—			—
Cash dividends recognized by Chunghwa		—		—			—		—			(36,475,514	)		—			—			—			(36,475,514	)		—			(36,475,514	)
Cash dividends recognized by subsidiaries		—		—			—		—			—			—			—			—			—			(1,091,670	)		(1,091,670	)
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		—		(134	)		—		—			—			—			—			—			(134	)		—			(134	)
Net income for the six months ended June 30, 2023		—		—			—		—			19,564,529			—			—			—			19,564,529			515,206			20,079,735
Other comprehensive income (loss) for the six months ended June 30, 2023		—		—			—		—			10,113			8,128			435,769			(2,959	)		451,051			(502	)		450,549

Total comprehensive income (loss) for the six months ended June 30, 2023		—		—			—		—			19,574,642			8,128			435,769			(2,959	)		20,015,580			514,704			20,530,284

Share-based payment transactions of subsidiaries		—		1,590			—		—			—			—			—			—			1,590			19,275			20,865

BALANCE, JUNE 30, 2023	$	77,574,465	$	171,302,354		$	77,574,465	$	2,898,503		$	35,152,768		$	(103,085	)	$	311,007		$	9,932		$	364,720,409		$	12,041,850		$	376,762,259

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 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

Share-based payment transactions 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

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

- 6 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)


	Six Months Ended June 30
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$	24,334,465		$	24,919,653
Adjustments for:
Depreciation		16,450,250			16,456,255
Amortization		3,344,912			3,354,416
Amortization of incremental costs of obtaining contracts		436,680			427,702
Expected credit loss		79,941			70,809
Interest expense		166,460			153,073
Interest income		(394,765	)		(318,543	)
Dividend income		(234,965	)		(162,168	)
Compensation cost of share-based payment transactions		4,629			4,818
Share of profits of associates and joint ventures accounted for using equity method		(23,195	)		(223,613	)
Loss (gain) on disposal of property, plant and equipment		689			(1,627	)
Gain on disposal of financial instruments		(1,073	)		—
Provision for impairment loss and obsolescence of inventory (reversal of impairment loss)		35,721			(9,167	)
Valuation loss on financial assets and liabilities at fair value through profit or loss, net		72,447			88,349
Others		33,275			15,444
Changes in operating assets and liabilities
Decrease (increase) in:
Contract assets		(1,181,575	)		(932,937	)
Trade notes and accounts receivable		1,126,101			2,595,197
Receivables from related parties		(8,089	)		(25,889	)
Inventories		413,291			552,174
Prepayments		(3,404,852	)		(3,007,786	)
Other current monetary assets		(70,888	)		(476,342	)
Other current assets		(986,721	)		(126,252	)
Incremental cost of obtaining contracts		(627,606	)		(398,219	)
Increase (decrease) in:
Contract liabilities		1,295,199			(711,935	)
Trade notes and accounts payable		(4,569,383	)		(5,909,874	)
Payables to related parties		(159,518	)		(273,228	)
Other payables		(2,126,880	)		(2,794,666	)
Provisions		(7,272	)		298,494
Other current liabilities		(3,719	)		(105,063	)
Net defined benefit plans		(275,613	)		(326,274	)

Cash generated from operations		33,717,946			33,132,801
Interests paid		(138,204	)		(125,179	)
Income taxes paid		(4,349,101	)		(4,542,675	)

Net cash provided by operating activities		29,230,641			28,464,947

(Continued)

- 7 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)


	Six Months Ended June 30
	2024			2023
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income	$	(312,780	)	$	—
Proceeds from capital reduction of financial assets at fair value through other comprehensive income		3,326			—
Acquisition of financial assets at fair value through profit or loss		(112,695	)		(115,238	)
Proceeds from disposal of financial assets at fair value through profit or loss		4,468			—
Proceeds from capital reduction and profit distribution of financial assets at fair value through profit or loss		435			18,833
Acquisition of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		(47,077,553	)		(28,441,589	)
Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		35,505,117			14,405,783
Acquisition of investments accounted for using equity method		(111,914	)		—
Acquisition of property, plant and equipment		(10,250,655	)		(11,774,179	)
Proceeds from disposal of property, plant and equipment		8,435			12,515
Acquisition of intangible assets		(102,453	)		(67,864	)
Acquisition of investment properties		—			(48,103	)
Decrease in other noncurrent assets		55,271			331,941
Increase in prepayments for leases		(690,202	)		(1,016,909	)
Interests received		380,842			282,257
Dividends received		153,262			8,983

Net cash used in investing activities		(22,547,096	)		(26,403,570	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans		540,000			1,974,800
Repayments of short-term loans		(760,000	)		(2,042,800	)
Decrease in customers’ deposits		(172,813	)		(104,056	)
Payments for the principal of lease liabilities		(1,941,741	)		(2,083,857	)
Decrease in other noncurrent liabilities		(488,989	)		(243,423	)
Cash dividends distributed to noncontrolling interests		(4,283	)		(5,639	)
Change in other noncontrolling interests		14,284			16,047

Net cash used in financing activities		(2,813,542	)		(2,488,928	)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		18,018			(10,628	)

(Continued)

- 8 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)


	Six Months Ended June 30
	2024		2023
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	$	3,888,021	$	(438,179	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		33,823,884		50,192,604

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	37,711,905	$	49,754,425


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

- 9 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(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 9, 2024.

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, 2023. Please refer to the consolidated financial statements for the year ended December 31, 2023 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.

- 10 -

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, 2024		December 31, 2023		June 30, 2023		Note
Chunghwa Telecom Co., Ltd.	Senao International Co., Ltd. (“SENAO”)	Handset and peripherals retailer, sales of CHT mobile phone plans as an agent		28		28		28	a.
	Light Era Development Co., Ltd. (“LED”)	Planning and development of real estate and intelligent buildings, and property management		100		100		100
	Donghwa Telecom Co., Ltd. (“DHT”)	International private leased circuit, IP VPN service, and IP transit services		100		100		100
	Chunghwa Telecom Singapore Pte., Ltd. (“CHTS”)	International private leased circuit, IP VPN service, and IP transit services		100		100		100
	Chunghwa System Integration Co., Ltd. (“CHSI”)	Providing system integration services and telecommunications equipment		100		100		100
	Chunghwa Investment Co., Ltd. (“CHI”)	Investment		89		89		89
	CHIEF Telecom Inc. (“CHIEF”)	Network integration, internet data center (“IDC”), communications integration and cloud application services		56		56		56	b.
	CHYP Multimedia Marketing & Communications Co., Ltd. (“CHYP”)	Digital information supply services and advertisement services		100		100		100
	Prime Asia Investments Group Ltd. (“Prime Asia”)	Investment		100		100		100
	Spring House Entertainment Tech. Inc. (“SHE”)	Software design services, internet contents production and play, and motion picture production and distribution		56		56		56
	Chunghwa Telecom Global, Inc. (“CHTG”)	International private leased circuit, internet services, and transit services		100		100		100
	Chunghwa Telecom Vietnam Co., Ltd. (“CHTV”)	Intelligent energy saving solutions, international circuit, and information and communication technology (“ICT”) services.		100		100		100
	Smartfun Digital Co., Ltd. (“SFD”)	Providing diversified family education digital services		65		65		65
	Chunghwa Telecom Japan Co., Ltd. (“CHTJ”)	International private leased circuit, IP VPN service, and IP transit services		100		100		100
	Chunghwa Sochamp Technology Inc. (“CHST”)	Design, development and production of Automatic License Plate Recognition software and hardware		37		37		37	c.
	Honghwa International Co., Ltd. (“HHI”)	Telecommunications engineering, sales agent of mobile phone plan application and other business services, etc.		100		100		100
	Chunghwa Leading Photonics Tech Co., Ltd. (“CLPT”)	Production and sale of electronic components and finished products		75		75		75	d.

(Continued)

- 11 -


			Percentage of Ownership Interests
Name of Investor	Name of Investee	Main Businesses and Products	June 30, 2024		December 31, 2023		June 30, 2023		Note
	Chunghwa Telecom (Thailand) Co., Ltd. (“CHTT”)	International private leased circuit, IP VPN service, ICT and cloud VAS services		100		100		100
	CHT Security Co., Ltd. (“CHTSC”)	Computing equipment installation, wholesale of computing and business machinery equipment and software, management consulting services, data processing services, digital information supply services and internet identity services		66		69		69	e.
	International Integrated Systems, Inc. (“IISI”)	IT solution provider, IT application consultation, system integration and package solution		51		51		51
	Chunghwa Digital Cultural and Creative Capital Co., Ltd (“CDCC Capital”)	Investment and management consulting		100		—		—	f.
Senao International Co., Ltd.	Senao International (Samoa) Holding Ltd. (“SIS”)	International investment		—		—		100	g.
	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
	Youyi Co., Ltd. (“Youyi”)	Maintenance of information and communication technologies products		—		—		100	h.
Aval Technologies Co., Ltd.	Wiin Technology Co., Ltd. (“Wiin”)	Sale of information and communication technologies products		100		100		100
Senyoung Insurance Agent Co., Ltd.	Senaolife Insurance Agent Co., Ltd. (“Senaolife”)	Life insurance services		—		—		—	i.
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	j.
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	k.
Chunghwa Precision Test Tech. Co., Ltd.	Chunghwa Precision Test Tech. USA Corporation (“CHPT (US)”)	Design and after-sale services of semiconductor testing components and printed circuit board		100		100		100
	CHPT Japan Co., Ltd. (“CHPT (JP)”)	Related services of electronic parts, machinery processed products and printed circuit board		100		100		100
	Chunghwa Precision Test Tech. International, Ltd. (“CHPT (International)”)	Wholesale and retail of electronic materials, and investment		100		100		100
	TestPro Investment Co., Ltd. (“TestPro”)	Investment		100		100		100

(Continued)

- 12 -


			Percentage of Ownership Interests
Name of Investor	Name of Investee	Main Businesses and Products	June 30, 2024		December 31, 2023		June 30, 2023		Note
TestPro Investment Co., Ltd.	NavCore Tech. Co., Ltd (“NavCore”)	Sale and manufacturing of smart equipment, smart factory software and hardware integration and technical consulting service		54		54		54
Senao International (Samoa) Holding Ltd.	Senao International HK Limited (“SIHK”)	International investment		—		—		100	l.
Prime Asia Investments Group Ltd.	Chunghwa Hsingta Co., Ltd. (“CHC”)	Investment		100		100		100
Chunghwa Precision Test Tech. International, Ltd.	Shanghai Taihua Electronic Technology Limited (“STET”)	Design of printed circuit board and related consultation service		100		100		100
	Su Zhou Precision Test Tech. Ltd. (“SZPT”)	Assembly processed of circuit board, design of printed circuit board and related consultation service		100		100		100
International Integrated Systems, Inc.	Infoexplorer International Co., Ltd.(“IESA”)	Investment		—		—		100	m.
	Unitronics Technology Corp. (“UTC”)	Development and maintenance of information system		100		100		99.96	n.
Infoexplorer International Co., Ltd.	International Integrated Systems (Hong Kong) Limited (“IEHK”)	Investment and technical consulting service		—		—		—	o.

(Concluded)

a.	Chunghwa continues to control more than half of seats of the Board of Directors of SENAO through the support of large beneficial stockholders. As a result, the Company treated SENAO as a subsidiary.

b.	CHIEF issued new shares in December 2023 as its employees exercised options. Therefore, the Company’s ownership interest in CHIEF decreased to 58.63% as of December 31, 2023.

c.	Chunghwa continues to control three out of five seats of the Board of Directors of CHST. As a result, the Company treated CHST as a subsidiary.

d.	CLPT issued new shares in May 2023 as its employees exercised options. Therefore, the Company’s ownership interest in CLPT decreased to 74.56% as of June 30, 2023.

e.	CHTSC issued new shares in February 2023, May 2023, January 2024 and March 2024 as its employees exercised options. Therefore, the Company’s ownership interest in CHTSC decreased to 69.28%, 69.28% and 66.08% as of June 30, 2023, December 31, 2023 and June 30, 2024, respectively.

f.	Chunghwa invested and established CDCC Capital in February 2024. Chunghwa obtained 100% ownership interest of CDCC Capital.

g.	SIS completed its liquidation in September 2023.

h.	Youyi completed its liquidation in November 2023.

- 13 -

i.	In order to coordinate with financial planning and adjustment of organizational resources, the Board of Directors of SENYOUNG approved the merger with Senaolife. SENYOUNG was the surviving company. The merger was completed on May 1, 2023.

j.	CHIEF has two out of three seats of the Board of Directors of SCT according to the mutual agreements among stockholders and gained control over SCT; hence, SCT is deemed as a subsidiary of the Company.

Though the Company’s ownership interest in CHPT is less than 50%, the management considered the absolute and relative size of ownership interest, and the dispersion of shares owned by the other stockholders and concluded that the Company has a sufficiently dominant voting interest to direct the relevant activities; hence, CHPT is deemed as a subsidiary of the Company.

l.	SIHK completed its liquidation in July 2023.

m.	IESA completed its liquidation in September 2023.

n.	IISI purchased shares of UTC in August 2023. Therefore, the Company’s ownership interest in UTC increased to 100% as of December 31, 2023.

o.	IEHK completed its liquidation in June 2023.

The following diagram presented information regarding the relationship and percentages of ownership interests between Chunghwa and its subsidiaries as of June 30, 2024.

LOGO

- 14 -

Other Material Accounting Policies

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.

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.

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, 2023.

5.	APPLICATION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS

Initial application of the amendments to the IFRSs endorsed and issued into effect by the FSC

The initial application of the amendments to the IFRSs issued by the International Accounting Standards Board and endorsed and issued into effect by the FSC does not have a material impact on the Company’s consolidated financial statements.

The IFRSs endorsed by the FSC for application starting from 2025

New, Revised or Amended Standards and Interpretations

Effective Date

Announced by IASB

Amendments to IAS 21

Lack of Exchangeability

January 1, 2025

The application of the above new, revised or amended standards and interpretations will not have a material impact on the Company’s consolidated financial statements.

- 15 -

IFRSs issued by the IASB but not yet endorsed and issued into effect by the FSC


New, Revised or Amended Standards and Interpretations		Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7	Amendments to the classification and measurement of financial Instruments	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

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, 2024		December 31, 2023		June 30, 2023
Cash
Cash on hand	$	431,744	$	403,536	$	337,483
Bank deposits		11,250,075		9,522,341		9,182,377

		11,681,819		9,925,877		9,519,860

Cash equivalents (with maturities of less than three months)
Commercial papers		15,960,205		14,496,056		24,891,477
Negotiable certificates of deposit		6,800,000		5,900,000		11,200,000
Time deposits		3,268,548		3,501,671		4,142,902
Stimulus vouchers		1,333		280		186

		26,030,086		23,898,007		40,234,565

	$	37,711,905	$	33,823,884	$	49,754,425

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


	June 30, 2024	December 31, 2023	June 30, 2023
Bank deposits	0.00%~3.10%	0.00%~3.10%	0.00%~2.97%
Commercial papers	0.95%~1.48%	0.72%~1.33%	0.65%~1.30%
Negotiable certificates of deposit	1.46%~1.48%	1.38%	1.20%~1.30%
Time deposits	0.01%~5.60%	0.01%~5.50%	0.01%~4.70%

- 16 -

7.	FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS


	June 30, 2024		December 31, 2023		June 30, 2023
Financial assets-current
Mandatorily measured at FVTPL
Derivatives (not designated for hedge)
Forward exchange contracts	$	1,100	$	483	$	3,444
Non-derivatives
Listed stocks - domestic		439		421		434

	$	1,539	$	904	$	3,878

Financial assets-noncurrent
Mandatorily measured at FVTPL
Non-derivatives
Non-listed stocks - domestic	$	632,868	$	703,537	$	695,572
Non-listed stocks - foreign		91,718		88,827		80,953
Limited partnership - domestic		315,340		219,032		225,204
Other investing agreements		31,699		24,305		26,605

	$	1,071,625	$	1,035,701	$	1,028,334

Financial liabilities-current
Held for trading
Derivatives (not designated for hedge)
Forward exchange contracts	$	141	$	—	$	—

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, 2024, Chunghwa invested $300,000 thousand.

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

Currency

Maturity
Period

Contract Amount

(In Thousands)

June 30, 2024

Forward exchange contracts - buy

NT$/EUR

September 2024

NT$

220,050/EUR6,400

December 31, 2023

Forward exchange contracts - buy

NT$/EUR

March 2024

NT$

144,936/EUR4,300

June 30, 2023

Forward exchange contracts - buy

NT$/EUR

September 2023

NT$

164,675/EUR5,000

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.

- 17 -

8.	FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NONCURRENT


	June 30, 2024		December 31, 2023		June 30, 2023
Domestic investments
Listed stocks	$	217,190	$	243,649	$	268,689
Non-listed stocks		4,057,183		3,733,782		3,495,100
Foreign investments
Non-listed stocks		691,548		434,912		164,513

	$	4,965,921	$	4,412,343	$	3,928,302

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.	TRADE NOTES AND ACCOUNTS RECEIVABLE, NET


	June 30, 2024			December 31, 2023			June 30, 2023
Trade notes and accounts receivable	$	24,748,287		$	25,943,635		$	23,141,710
Less: Loss allowance		(1,117,441	)		(1,101,640	)		(1,145,680	)

	$	23,630,846		$	24,841,995		$	21,996,030

The main credit terms range from 30 to 90 days.

The Company serves a large consumer base for telecommunications business; therefore, the concentration of credit risk is limited. When having transactions with customers, the Company considers the record of arrears in the past. In addition, the Company may also collect some telecommunication charges in advance to reduce the payment arrears in subsequent periods.

The Company adopted a policy of dealing with counterparties with certain credit ratings for project business and to obtain collateral where necessary to mitigate the risk of loss arising from defaults. Credit rating information is provided by independent rating agencies where available and, if such credit rating information is not available, the Company uses other publicly available financial information and its own historical transaction experience to rate its major customers. The Company continues to monitor the credit exposure and credit ratings of its counterparties and spread the credit risk amongst qualified counterparties.

In order to mitigate credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure the recoverability of receivables. In addition, the Company reviews the recoverable amount of receivables at balance sheet dates to ensure that adequate allowance is provided for possible irrecoverable amounts. In this regard, the management believes the Company’s credit risk could be reasonably reduced.

The Company applies the simplified approach to recognize expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for receivables. The expected credit losses on receivables are estimated using a provision matrix by reference to past default experience of the customers and an analysis of the customers’ current financial positions, as well as the forward-looking indicators such as macroeconomic business indicator.

- 18 -

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, 2024


	Not Past Due			Past Due Less than 30 Days			Past Due 31 to 60 Days			Past Due 61 to 90 Days			Past Due 91 to 120 Days			Past Due 121 to 180 Days			Past Due over 180 Days			Total
Telecommunications business
Expected credit loss rate (Note a)		0%~1%			1%~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

December 31, 2023


	Not Past Due			Past Due Less than 30 Days			Past Due 31 to 60 Days			Past Due 61 to 90 Days			Past Due 91 to 120 Days			Past Due 121 to 180 Days			Past Due over 180 Days			Total
Telecommunications business
Expected credit loss rate (Note a)		0%~1%			1%~20%			3%~65%			12%~82%			23%~91%			40%~96%			100	%
Gross carrying amount	$	17,065,909		$	346,172		$	135,390		$	69,909		$	47,730		$	48,827		$	577,604		$	18,291,541
Loss allowance (lifetime ECL)		(49,828	)		(21,667	)		(28,978	)		(29,154	)		(35,221	)		(21,848	)		(577,604	)		(764,300	)

Amortized cost	$	17,016,081		$	324,505		$	106,412		$	40,755		$	12,509		$	26,979		$	—		$	17,527,241

Project business
Expected credit loss rate (Note b)		0%~5%			5	%		10	%		30	%		50	%		80	%		100	%
Gross carrying amount	$	3,868,984		$	101,408		$	11,954		$	17,535		$	1,353		$	613		$	287,368		$	4,289,215
Loss allowance (lifetime ECL)		(2,812	)		(16,671	)		(1,195	)		(5,261	)		(676	)		(490	)		(287,368	)		(314,473	)

Amortized cost	$	3,866,172		$	84,737		$	10,759		$	12,274		$	677		$	123		$	—		$	3,974,742

June 30, 2023


	Not Past Due			Past Due Less than 30 Days			Past Due 31 to 60 Days			Past Due 61 to 90 Days			Past Due 91 to 120 Days			Past Due 121 to 180 Days			Past Due over 180 Days			Total
Telecommunications business
Expected credit loss rate (Note a)		0%~1%			1%~20%			3%~65%			10%~81%			19%~90%			42%~96%			100	%
Gross carrying amount	$	16,643,393		$	343,155		$	145,394		$	93,622		$	34,310		$	42,670		$	625,648		$	17,928,192
Loss allowance (lifetime ECL)		(47,308	)		(21,404	)		(25,698	)		(37,870	)		(24,531	)		(38,448	)		(625,648	)		(820,907	)

Amortized cost	$	16,596,085		$	321,751		$	119,696		$	55,752		$	9,779		$	4,222		$	—		$	17,107,285

Project business
Expected credit loss rate (Note b)		0%~5%			5	%		10	%		30	%		50	%		80	%		100	%
Gross carrying amount	$	2,310,619		$	34,090		$	5,994		$	3,351		$	900		$	—		$	293,627		$	2,648,581
Loss allowance (lifetime ECL)		(1,451	)		(1,703	)		(599	)		(1,005	)		(450	)		—			(293,627	)		(298,835	)

Amortized cost	$	2,309,168		$	32,387		$	5,395		$	2,346		$	450		$	—		$	—		$	2,349,746

- 19 -

Note a:

Please refer to Note 42 for the information of disaggregation of telecommunications service revenue. The expected credit loss rate applicable to different business revenue varies so as to reflect the risk level indicating by factors like historical experience.

Note b:

The project business has different loss types according to the customer types. The expected credit loss rate listed above is for general customers. When the customer is a government-affiliated entity, it is anticipated that there will not be an instance of credit loss. Customers with past history of bounced checks or accounts receivable exceeding six months overdue are classified as high-risk customers, with an expected credit loss rate of 50%, increasing by period as the days overdue increase.

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


	Six Months Ended June 30
	2024			2023
Beginning balance	$	1,101,640		$	1,365,222
Add: Provision for credit loss		82,602			77,380
Less: Amounts written off		(66,801	)		(296,922	)

Ending balance	$	1,117,441		$	1,145,680

10.

INVENTORIES


	June 30, 2024		December 31, 2023		June 30, 2023
Merchandise	$	3,480,593	$	4,340,001	$	3,375,788
Project in process		5,118,831		4,771,313		4,958,350
Work in process		152,160		73,622		90,293
Raw materials		201,816		221,314		247,108

		8,953,400		9,406,250		8,671,539
Land held under development		1,998,733		1,998,733		1,998,733
Construction in progress		119,620		115,782		103,127

	$	11,071,753	$	11,520,765	$	10,773,399

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. The operating costs related to inventories were $11,694,662 thousand (including the reversal of valuation loss on inventories of $14,441 thousand) and $24,195,528 thousand (including the reversal of valuation loss on inventories of $9,167 thousand) for the three months and six months ended June 30, 2023, respectively.

- 20 -

As of June 30, 2024, December 31, 2023 and June 30, 2023, inventories of $2,118,353 thousand, $2,114,515 thousand and $2,101,860 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.

11.

PREPAYMENTS


	June 30, 2024		December 31, 2023		June 30, 2023
Prepaid salary and bonus	$	2,884,120	$	4,736	$	2,769,068
Prepayments for leases - satellite (Note 39)		2,419,320		1,729,118		1,016,909
Prepaid rents		1,980,044		2,143,336		2,294,644
Others		2,981,624		2,292,864		2,070,959

	$	10,265,108	$	6,170,054	$	8,151,580

Current
Prepaid salary and bonus	$	2,884,120	$	4,736	$	2,769,068
Prepaid rents		547,240		580,930		567,744
Others		2,938,733		2,253,805		2,065,094

	$	6,370,093	$	2,839,471	$	5,401,906

Noncurrent
Prepayments for leases - satellite (Note 39)	$	2,419,320	$	1,729,118	$	1,016,909
Prepaid rents		1,432,804		1,562,406		1,726,900
Others		42,891		39,059		5,865

	$	3,895,015	$	3,330,583	$	2,749,674

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.

12.

OTHER CURRENT MONETARY ASSETS


	June 30, 2024		December 31, 2023		June 30, 2023
Time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months	$	30,199,427	$	18,572,579	$	15,961,472
Accrued custodial receipts		814,140		893,629		822,059
Others		1,403,051		885,842		1,850,405

	$	32,416,618	$	20,352,050	$	18,633,936

- 21 -

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, 2024	December 31, 2023	June 30, 2023
Time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months	0.03%~5.10%	0.03%~5.54%	0.03%~4.75%

13.

SUBSIDIARIES

Information on subsidiaries with material noncontrolling interests


	Principal		Proportion of Ownership Interests and Voting Rights Held by Noncontrolling Interests
Subsidiaries	Place of Business		June 30, 2024	December 31, 2023	June 30, 2023
SENAO		Taiwan	72%	72%	72%
CHPT		Taiwan	66%	66%	66%


	Profit Allocated to Noncontrolling Interests
	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
SENAO	$	67,818	$	121,353	$	164,644	$	262,551

CHPT	$	34,870	$	15,427	$	37,255	$	(11,405	)


	Accumulated Noncontrolling Interests
	June 30, 2024		December 31, 2023		June 30, 2023
SENAO	$	4,481,652	$	4,666,876	$	4,447,611
CHPT		5,030,999		4,995,300		4,992,674
Individually immaterial subsidiaries with noncontrolling interests		2,739,246		2,934,076		2,601,565

	$	12,251,897	$	12,596,252	$	12,041,850

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, 2024			December 31, 2023			June 30, 2023
Current assets	$	7,102,676		$	6,539,760		$	6,957,630
Noncurrent assets		3,293,606			3,293,533			3,314,764
Current liabilities		(3,741,910	)		(2,949,548	)		(3,652,273	)
Noncurrent liabilities		(488,077	)		(458,543	)		(500,927	)

Equity	$	6,166,295		$	6,425,202		$	6,119,194

Equity attributable to the parent	$	1,684,643		$	1,758,326		$	1,671,583
Equity attributable to noncontrolling interests		4,481,652			4,666,876			4,447,611

	$	6,166,295		$	6,425,202		$	6,119,194

- 22 -


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Revenues and income	$	7,453,750	$	7,168,743	$	15,624,931	$	15,485,630
Costs and expenses		7,360,103		6,999,658		15,396,374		15,119,866

Profit for the period	$	93,647	$	169,085	$	228,557	$	365,764

Profit attributable to the parent	$	25,829	$	47,732	$	63,913	$	103,213
Profit attributable to noncontrolling interests		67,818		121,353		164,644		262,551

Profit for the period	$	93,647	$	169,085	$	228,557	$	365,764

Other comprehensive income attributable to the parent	$	244	$	795	$	8,184	$	400
Other comprehensive income attributable to noncontrolling interests		621		2,026		20,857		1,019

Other comprehensive income for the period	$	865	$	2,821	$	29,041	$	1,419

Total comprehensive income attributable to the parent	$	26,073	$	48,527	$	72,097	$	103,613
Total comprehensive income attributable to noncontrolling interests		68,439		123,379		185,501		263,570

Total comprehensive income for the period	$	94,512	$	171,906	$	257,598	$	367,183


	Six Months Ended June 30
	2024			2023
Net cash flow from operating activities	$	740,625		$	814,833
Net cash flow from investing activities		(11,121	)		(14,379	)
Net cash flow from financing activities		(151,052	)		(154,095	)
Effect of exchange rate changes on cash and cash equivalents		26			8

Net cash inflow	$	578,478		$	646,367

Dividends paid to noncontrolling interests	$	—		$	—

- 23 -

Summarized financial information in respect of CHPT and its subsidiaries that has material noncontrolling interests is set out below. The summarized financial information below represented amounts before intercompany eliminations.


	June 30, 2024			December 31, 2023			June 30, 2023
Current assets	$	3,968,548		$	3,773,213		$	4,092,226
Noncurrent assets		4,327,909			4,499,182			4,572,792
Current liabilities		(641,688	)		(675,326	)		(1,083,530	)
Noncurrent liabilities		(18,622	)		(23,546	)		(20,199	)

Equity	$	7,636,147		$	7,573,523		$	7,561,289

Equity attributable to CHI	$	2,605,148		$	2,578,223		$	2,568,615
Equity attributable to noncontrolling interests		5,030,999			4,995,300			4,992,674

	$	7,636,147		$	7,573,523		$	7,561,289


	Three Months Ended June 30					Six Months Ended June 30
	2024		2023			2024		2023
Revenues and income	$	752,467	$	754,737		$	1,450,097	$	1,461,596
Costs and expenses		694,656		727,315			1,385,106		1,471,551

Profit (loss) for the period	$	57,811	$	27,422		$	64,991	$	(9,955	)

Profit attributable to CHI	$	22,941	$	11,995		$	27,736	$	1,450
Profit (loss) attributable to noncontrolling interests		34,870		15,427			37,255		(11,405	)

Profit (loss) for the period	$	57,811	$	27,422		$	64,991	$	(9,955	)

Other comprehensive income (loss) attributable to CHI	$	1,065	$	(929	)	$	4,804	$	(954	)
Other comprehensive income (loss) attributable to noncontrolling interests		2,046		(1,784	)		9,223		(1,832	)

Other comprehensive income (loss) for the period	$	3,111	$	(2,713	)	$	14,027	$	(2,786	)

Total comprehensive income attributable to CHI	$	24,006	$	11,066		$	32,540	$	496
Total comprehensive income (loss) attributable to noncontrolling interests		36,916		13,643			46,478		(13,237	)

Total comprehensive income (loss) for the period	$	60,922	$	24,709		$	79,018	$	(12,741	)

- 24 -


	Six Months Ended June 30
	2024			2023
Net cash flow from operating activities	$	228,493		$	58,127
Net cash flow from investing activities		(46,211	)		(158,092	)
Net cash flow from financing activities		(13,233	)		(10,814	)
Effect of exchange rate changes on cash and cash equivalents		14,151			1,346

Net cash inflow (outflow)	$	183,200		$	(109,433	)

Dividends paid to noncontrolling interests	$	—		$	—

Equity transactions with noncontrolling interests

CHTSC issued new shares in February 2023, May 2023, January 2024 and March 2024 as its employees exercised options. Therefore, the Company’s ownership interest in CHTSC decreased. See Note 33(b) for details.

CLPT issued new shares in May 2023 as its employees exercised options. Therefore, the Company’s ownership interest in CLPT decreased. See Note 33(c) for details.

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

Information of the Company’s equity transactions with noncontrolling interests for the six months ended June 30, 2024 and 2023 were as follows:


	Six Months Ended June 30, 2024
	CHTSC Share-Based Payment
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 noncontrolling interests		(13,650	)

Differences arising from equity transactions	$	(405	)

Line items for equity transaction adjustments
Additional paid-in capital - arising from changes in equities of subsidiaries	$	(405	)

- 25 -


	Six Months Ended June 30, 2023
	CHTSC Share-Based Payment			CLPT Share-Based Payment
Cash consideration received from noncontrolling interests (Note)	$	15,173		$	874
The proportionate share of the carrying amount of the net assets of the subsidiary transferred to noncontrolling interests		(13,507	)		(950	)

Differences arising from equity transactions	$	1,666		$	(76	)

Line items for equity transaction adjustments
Additional paid-in capital - arising from changes in equities of subsidiaries	$	1,666		$	(76	)

Note: The proceeds from the new shares issued in January 2024 and February 2023 by CHTSC have been received in advance in December 2023 and December 2022, respectively.

14.

INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD


	June 30, 2024		December 31, 2023		June 30, 2023
Investments in associates	$	8,384,982	$	8,440,736	$	7,077,477
Investment in joint venture		9,367		9,463		9,587

	$	8,394,349	$	8,450,199	$	7,087,064

Investments in associates

Investments in associates were as follows:


	Carrying Amount
	June 30, 2024		December 31, 2023		June 30, 2023
Material associate
Non-listed
Next Commercial Bank Co., Ltd. (“NCB”)	$	4,112,887	$	4,293,338	$	2,984,516

Associates that are not individually material
Listed
Senao Networks, Inc. (“SNI”)		1,551,669		1,564,311		1,483,677
KingwayTek Technology Co., Ltd. (“KWT”)		264,415		266,407		260,023

(Continued)

- 26 -


	Carrying Amount
	June 30, 2024		December 31, 2023		June 30, 2023
Non-listed
Viettel-CHT Co., Ltd. (“Viettel-CHT”)	$	519,071	$	542,178	$	507,341
ST-2 Satellite Ventures Pte., Ltd. (“STS”)		370,774		285,430		321,009
WiAdvance Technology Corporation (“WATC”)		280,768		212,101		218,083
Chunghwa PChome Fund I Co., Ltd. (“CPFI”)		254,873		257,657		263,296
Taiwan International Standard Electronics Co., Ltd. (“TISE”)		248,739		312,800		342,106
So-net Entertainment Taiwan Limited (“So-net”)		215,187		225,697		230,692
KKBOX Taiwan Co., Ltd. (“KKBOXTW”)		164,501		163,999		176,276
Taiwan International Ports Logistics Corporation (“TIPL”)		112,366		121,948		103,918
Porrima Inc. (“PORRIMA”)		80,000		—		—
Imedtac Co., Ltd. (“IME”)		60,373		46,880		37,775
CHT Infinity Singapore Pte. Ltd. (“CISG”)		58,680		56,764		59,007
Click Force Co., Ltd. (“CF”)		47,077		42,637		42,424
AgriTalk Technology Inc. (“ATT”)		28,279		30,798		32,396
Baohwa Trust Co., Ltd. (“BHT”)		10,011		10,317		7,825
Cornerstone Ventures Co., Ltd. (“CVC”)		5,312		7,474		7,113

		4,272,095		4,147,398		4,092,961

	$	8,384,982	$	8,440,736	$	7,077,477

(Concluded)

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, 2024		December 31, 2023		June 30, 2023
Material associate
Non-listed
Next Commercial Bank Co., Ltd. (“NCB”)		46		46		42
Associates that are not individually material
Listed
Senao Networks, Inc. (“SNI”)		34		34		34
KingwayTek Technology Co., Ltd. (“KWT”)		23		23		23

(Continued)

- 27 -


	% of Ownership Interests and Voting Rights
	June 30, 2024		December 31, 2023		June 30, 2023
Non-listed
Viettel-CHT Co., Ltd. (“Viettel-CHT”)		30		30		30
ST-2 Satellite Ventures Pte., Ltd. (“STS”)		38		38		38
WiAdvance Technology Corporation (“WATC”)		16		19		20
Chunghwa PChome Fund I Co., Ltd. (“CPFI”)		50		50		50
Taiwan International Standard Electronics Co., Ltd. (“TISE”)		40		40		40
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		—		—
Imedtac Co., Ltd. (“IME”)		10		7		7
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		40
Cornerstone Ventures Co., Ltd. (“CVC”)		49		49		49

(Concluded)

Summarized financial information of NCB was set out below:


	June 30, 2024			December 31, 2023			June 30, 2023
Assets	$	39,522,184		$	37,431,036		$	35,480,775
Liabilities		(30,571,865	)		(28,083,960	)		(28,280,404	)

Equity	$	8,950,319		$	9,347,076		$	7,200,371

The percentage of ownership interest held by the Company		46.26	%		46.26	%		41.90	%
Equity attributable to the Company	$	4,140,417		$	4,323,958		$	3,016,955
Unrealized gain or loss from downstream transactions		(27,530	)		(30,620	)		(32,439	)

The carrying amount of investment	$	4,112,887		$	4,293,338		$	2,984,516

- 28 -


	Three Months Ended June 30						Six Months Ended June 30
	2024			2023			2024			2023
Net revenues (losses)	$	72,952		$	4,378		$	141,916		$	(8,111	)

Net loss for the period	$	(192,617	)	$	(229,468	)	$	(378,129	)	$	(460,367	)
Other comprehensive income (loss)		(16,096	)		2,805			(18,628	)		2,411

Total comprehensive loss for the period	$	(208,713	)	$	(226,663	)	$	(396,757	)	$	(457,956	)

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
	2024		2023			2024		2023
The Company’s share of profits	$	96,285	$	215,121		$	195,123	$	413,506
The Company’s share of other comprehensive income (loss)		4,547		(696	)		31,226		8,762

The Company’s share of total comprehensive income	$	100,832	$	214,425		$	226,349	$	422,268

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


	June 30, 2024		December 31, 2023		June 30, 2023
SNI	$	3,116,858	$	4,061,863	$	4,227,653

KWT	$	913,514	$	987,520	$	1,098,529

The Company participated in the capital increase of PORRIMA at the price 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 proportion to the original shareholder percentage in December 2023 and increased its investment in IME in higher proportion to the original shareholder percentage at the price of $31,914 thousand in April 2024. Therefore, the Company’s ownership interest in IME increased to 10.00% as of June 30, 2024. 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.

The Company did not participate in the capital increase of WATC in January 2024. WATC issued new shares in April 2023, September 2023, December 2023 and March 2024 as its employees exercised option. Therefore, the Company’s ownership interest in WATC decreased to 19.22% and 16.35% as of December 31, 2023 and June 30, 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.

- 29 -

The Company’s ownership interest in NCB was originally 41.90%. NCB reduced 26.43% of its capital to offset accumulated deficits and increased its capital in December 2023. The Company increased its investment in NCB in higher proportion to the original shareholder percentage. Therefore, the Company’s ownership interest in NCB increased to 46.26% as of December 31, 2023. 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 did not participate in the capital increase of BHT in September 2023. Therefore, the Company’s ownership interest in BHT decreased to 25.00% as of December 31, 2023.

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 invested and obtained 49% ownership interest in CVC. However, as the Company has only two out of five seats of the Board of Directors of CVC, the Company has no control but significant influence over CVC. Therefore, the Company recognized CVC 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.

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, 2024		December 31, 2023		June 30, 2023		June 30, 2024			December 31, 2023			June 30, 2023
Non-listed
Chunghwa SEA Holdings (“CHT SEA”)	$	9,367	$	9,463	$	9,587		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.

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
	2024			2023			2024			2023
The Company’s share of loss	$	(33	)	$	(15	)	$	(96	)	$	(90	)
The Company’s share of other comprehensive income		—			—			—			—

The Company’s share of total comprehensive loss	$	(33	)	$	(15	)	$	(96	)	$	(90	)

- 30 -

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

15.

PROPERTY, PLANT AND EQUIPMENT


	June 30, 2024		December 31, 2023		June 30, 2023
Assets used by the Company	$	278,913,666	$	285,084,900	$	279,806,589
Assets subject to operating leases		6,056,635		7,252,842		7,680,778

	$	284,970,301	$	292,337,742	$	287,487,367

Assets used by the Company


	Land			Land Improvements			Buildings			Computer Equipment			Telecommuni- cations Equipment			Transportation Equipment			Miscellaneous Equipment			Construction in Progress and Equipment to be Accepted			Total
Cost
Balance on January 1, 2023	$	103,663,528		$	1,675,255		$	72,529,774		$	11,088,877		$	720,068,323		$	3,971,039		$	11,467,527		$	14,427,497		$	938,891,820
Additions		95,567			—			12,302			45,157			36,184			1,248			80,714			10,435,377			10,706,549
Disposal		(1,672	)		—			—			(526,959	)		(12,522,117	)		(66,934	)		(174,843	)		—			(13,292,525	)
Effect of foreign exchange differences		—			—			—			16			20,528			(48	)		(903	)		1,887			21,480
Others		(1,049,463	)		6,954			(1,329,846	)		150,293			13,023,182			8,176			405,990			(13,563,590	)		(2,348,304	)

Balance on June 30, 2023	$	102,707,960		$	1,682,209		$	71,212,230		$	10,757,384		$	720,626,100		$	3,913,481		$	11,778,485		$	11,301,171		$	933,979,020

Accumulated depreciation and impairment
Balance on January 1, 2023	$	—		$	(1,474,085	)	$	(32,263,200	)	$	(9,553,580	)	$	(597,957,285	)	$	(3,672,728	)	$	(8,642,023	)	$	—		$	(653,562,901	)
Depreciation expenses		—			(17,062	)		(717,346	)		(342,302	)		(12,849,896	)		(45,232	)		(395,488	)		—			(14,367,326	)
Disposal		—			—			—			526,879			12,513,824			66,842			174,092			—			13,281,637
Effect of foreign exchange differences		—			—			—			(18	)		(12,586	)		51			1,235			—			(11,318	)
Others		—			—			537,612			(17,470	)		(38,119	)		(247	)		5,701			—			487,477

Balance on June 30, 2023	$	—		$	(1,491,147	)	$	(32,442,934	)	$	(9,386,491	)	$	(598,344,062	)	$	(3,651,314	)	$	(8,856,483	)	$	—		$	(654,172,431	)

Balance on January 1, 2023, net	$	103,663,528		$	201,170		$	40,266,574		$	1,535,297		$	122,111,038		$	298,311		$	2,825,504		$	14,427,497		$	285,328,919

Balance on June 30, 2023, net	$	102,707,960		$	191,062		$	38,769,296		$	1,370,893		$	122,282,038		$	262,167		$	2,922,002		$	11,301,171		$	279,806,589

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

Accumulated depreciation and impairment
Balance on January 1, 2024	$	—		$	(1,507,932	)	$	(33,283,812	)	$	(9,221,060	)	$	(599,131,991	)	$	(3,654,724	)	$	(9,022,741	)	$	—		$	(655,822,260	)
Depreciation expenses		—			(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

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, 2024 and 2023.

Depreciation expense for assets used by the Company is computed using the straight-line method over the following estimated service lives:

- 31 -


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			3~16 years
Others			1~15 years

Assets subject to operating leases


	Land			Buildings			Total
Cost
Balance on January 1, 2023	$	4,376,196		$	3,185,097		$	7,561,293
Additions		—			1,129			1,129
Others		722,806			1,287,717			2,010,523

Balance on June 30, 2023	$	5,099,002		$	4,473,943		$	9,572,945

Accumulated depreciation and impairment
Balance on January 1, 2023	$	—		$	(1,362,302	)	$	(1,362,302	)
Depreciation expenses		—			(40,071	)		(40,071	)
Others		—			(489,794	)		(489,794	)

Balance on June 30, 2023	$	—		$	(1,892,167	)	$	(1,892,167	)

Balance on January 1, 2023, net	$	4,376,196		$	1,822,795		$	6,198,991

Balance on June 30, 2023, net	$	5,099,002		$	2,581,776		$	7,680,778

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 expenses		—			(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

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.

- 32 -

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


	June 30, 2024		December 31, 2023		June 30, 2023
Year 1	$	327,178	$	381,357	$	407,421
Year 2		228,043		278,903		282,290
Year 3		130,999		221,059		213,401
Year 4		89,926		175,747		179,147
Year 5		63,203		146,035		150,400
Onwards		175,699		1,025,127		1,062,459

	$	1,015,048	$	2,228,228	$	2,295,118

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

16.

LEASE ARRANGEMENTS

Right-of-use assets


	June 30, 2024		December 31, 2023		June 30, 2023
Land and buildings
Handsets base stations	$	7,636,464	$	7,576,685	$	7,330,908
Others		1,741,737		1,754,335		1,772,217
Equipment		1,752,186		1,906,794		2,056,739

	$	11,130,387	$	11,237,814	$	11,159,864


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Additions to right-of-use assets					$	2,074,978	$	2,199,782

Depreciation charge for right-of-use assets
Land and buildings
Handsets base stations	$	748,733	$	731,814	$	1,492,579	$	1,456,942
Others		202,795		211,249		398,781		397,693
Equipment		88,293		86,275		175,616		172,095

	$	1,039,821	$	1,029,338	$	2,066,976	$	2,026,730

The Company did not have significant sublease or impairment of right-of-use assets for the six months ended June 30, 2024 and 2023.

- 33 -

Lease liabilities


	June 30, 2024		December 31, 2023		June 30, 2023
Lease liabilities
Current	$	3,561,502	$	3,504,990	$	3,330,367
Noncurrent		7,452,555		7,470,191		7,326,764

	$	11,014,057	$	10,975,181	$	10,657,131

Ranges of discount rates for lease liabilities were as follows:

June 30, 2024

December 31,
2023

June 30, 2023

Land and buildings

Handsets base stations

0.37%~1.87%

0.37%~1.84%

Others

0.37%~9.00%

Equipment

0.37%~3.50%

0.37%~2.87%

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 37 for details.

Other lease information


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Expenses relating to low-value asset leases	$	2,326	$	2,134	$	4,389	$	4,467

Expenses relating to variable lease payments not included in the measurement of lease liabilities	$	1,588	$	1,541	$	3,066	$	3,240

Total cash outflow for leases					$	2,010,054	$	2,140,451

- 34 -

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 15 and 17.

17.

INVESTMENT PROPERTIES


Cost
Balance on January 1, 2023	$	10,780,029
Additions		48,103
Reclassification		327,724

Balance on June 30, 2023	$	11,155,856

Accumulated depreciation and impairment
Balance on January 1, 2023	$	(976,168	)
Depreciation expense		(22,128	)

Balance on June 30, 2023	$	(998,296	)

Balance on January 1, 2023, net	$	9,803,861

Balance on June 30, 2023, net	$	10,157,560

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

Depreciation expense is computed using the straight-line method over the following estimated service lives:


Land improvements			10~30 years
Buildings
Main buildings			35~60 years
Other building facilities			4~10 years

- 35 -

The fair values of the Company’s investment properties as of December 31, 2023 and 2022 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, 2024 and 2023 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:

June 30, 2024

December 31,
2023

June 30, 2023

Fair value

35,336,628

24,236,751

25,032,987

Overall capital interest rate

1.43%~5.51%

1.31%~4.91%

Profit margin ratio

10%~20%

8%~20%

Discount rate

—

Capitalization rate

0.23%~2.28%

0.23%~2.16%

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, 2024		December 31, 2023		June 30, 2023
Year 1	$	270,323	$	168,384	$	152,559
Year 2		244,074		156,821		157,994
Year 3		213,800		134,231		140,296
Year 4		182,133		104,567		116,004
Year 5		169,506		82,732		90,037
Onwards		1,230,112		435,202		475,433

	$	2,309,948	$	1,081,937	$	1,132,323

18.

INTANGIBLE ASSETS


	Mobile Broadband Concession			Computer Software			Goodwill			Others			Total
Cost
Balance on January 1, 2023	$	109,963,431		$	2,797,835		$	291,206		$	421,813		$	113,474,285
Additions-acquired separately		—			66,106			—			1,758			67,864
Disposal		—			(125,607	)		—			(180	)		(125,787	)
Effect of foreign exchange differences		—			(136	)		—			(7	)		(143	)
Others		—			1,571			—			—			1,571

Balance on June 30, 2023	$	109,963,431		$	2,739,769		$	291,206		$	423,384		$	113,417,790

Accumulated amortization and impairment
Balance on January 1, 2023	$	(31,812,278	)	$	(2,176,234	)	$	(73,624	)	$	(225,062	)	$	(34,287,198	)
Amortization expenses		(3,195,069	)		(141,765	)		—			(17,582	)		(3,354,416	)
Disposal		—			125,607			—			180			125,787
Effect of foreign exchange differences		—			137			—			3			140
Others		—			(508	)		—			—			(508	)

Balance on June 30, 2023	$	(35,007,347	)	$	(2,192,763	)	$	(73,624	)	$	(242,461	)	$	(37,516,195	)

Balance on January 1, 2023, net	$	78,151,153		$	621,601		$	217,582		$	196,751		$	79,187,087

Balance on June 30, 2023, net	$	74,956,084		$	547,006		$	217,582		$	180,923		$	75,901,595

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

(Continued)

- 36 -


	Mobile Broadband Concession			Computer Software			Goodwill			Others			Total
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	)

Others	$	(41,397,485	)	$	(1,970,613	)	$	(73,624	)	$	(259,805	)	$	(43,701,527	)

Balance on June 30, 2024

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

(Concluded)

The concessions are granted and issued by the National Communications Commission (“NCC”). The concession fees are amortized using the straight-line method over the period from the date operations commence through the date the license expires or the useful life, whichever is shorter. The 4G concession fees will be fully amortized by December 2030 and December 2033 and 5G concession fees will be fully amortized by December 2040.

The computer software is amortized using the straight-line method over the estimated useful lives of 1 to 10 years. Other intangible assets are amortized using the straight-line method over the estimated useful lives of 3 to 20 years. Goodwill is not amortized.

19.

OTHER ASSETS


	June 30, 2024		December 31, 2023		June 30, 2023
Spare parts	$	2,871,996	$	2,232,800	$	3,334,167
Refundable deposits		1,978,753		1,994,503		1,885,309
Other financial assets		1,000,000		1,000,000		1,000,000
Others		2,530,204		2,223,648		1,842,104

	$	8,380,953	$	7,450,951	$	8,061,580

Current
Spare parts	$	2,871,996	$	2,232,800	$	3,334,167
Others		936,984		589,459		347,508

	$	3,808,980	$	2,822,259	$	3,681,675

Noncurrent
Refundable deposits	$	1,978,753	$	1,994,503	$	1,885,309
Other financial assets		1,000,000		1,000,000		1,000,000
Others		1,593,220		1,634,189		1,494,596

	$	4,571,973	$	4,628,692	$	4,379,905

- 37 -

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.

20.

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, 2024

Notional
Amount

Forward

Rate

Line Item in

Carrying Amount

Change in Fair
Values of
Hedging
Instruments Used
for Calculating
Hedge

Hedging Instruments

Currency

(In Thousands)

Maturity

(In Dollars)

Balance Sheet

Asset

Liability

Ineffectiveness

Cash flow hedge

Forecast purchases - forward exchange contracts

NT$/EUR

NTD 79,313
/EUR 2,300

2024.09

34.48

Hedging financial
assets (liabilities)

313

212

145

- 38 -


	Change in Value of Hedged Item Used for			Accumulated Gain or Loss on Hedging Instruments in Other Equity
Hedged Items	Calculating Hedge Ineffectiveness			Continuing Hedges		Hedge Accounting No Longer Applied
Cash flow hedge
Forecast equipment purchases	$	(145	)	$	101	$	—

December 31, 2023

Notional
Amount

Forward

Rate

Line Item in

Carrying Amount

Change in Fair
Values of
Hedging
Instruments Used
for Calculating
Hedge

Hedging Instruments

Currency

(In Thousands)

Maturity

(In Dollars)

Balance Sheet

Asset

Liability

Ineffectiveness

Cash flow hedge

Forecast purchases - forward exchange contracts

NT$/EUR

NT$ 23,717
/EUR 700

March
2024

33.88

Hedging financial
assets (liabilities)

—

(12,935

)


	Change in Value of Hedged Item Used for		Accumulated Gain or Loss on Hedging Instruments in Other Equity
Hedged Items	Calculating Hedge Ineffectiveness		Continuing Hedges			Hedge Accounting No Longer Applied
Cash flow hedge
Forecast equipment purchases	$	12,935	$	(44	)	$	—

June 30, 2023

Notional
Amount

Forward

Rate

Line Item in

Carrying Amount

Change in
Fair Values of
Hedging
Instruments
Used for
Calculating
Hedge

Hedging Instruments

Currency

(In Thousands)

Maturity

(In Dollars)

Balance Sheet

Asset

Liability

Ineffectiveness

Cash flow hedge

Forecast purchases - forward exchange contracts

NT$/EUR

NTD 474,192
/EUR 14,400

September
2023

32.93

Hedging financial
assets (liabilities)

9,932

—

(2,959

)


	Change in Value of Hedged Item Used for		Accumulated Gain or Loss on Hedging Instruments in Other Equity
Hedged Items	Calculating Hedge Ineffectiveness		Continuing Hedges		Hedge Accounting No Longer Applied
Cash flow hedge
Forecast equipment purchases	$	2,959	$	9,932	$	—

- 39 -

Six Months Ended June 30, 2024


	Comprehensive Income						Reclassification from Equity to Assets and the Adjusted Line Item
Hedge Transaction	Hedging Gain or Loss Recognized in OCI		Amount of Hedge Ineffectiveness Recognized in Profit or Loss		Line Item in Which Hedge Ineffectiveness is Included		Amount Reclassified to Assets and the Adjusted Line Item		Due to Hedged Future Cash Flows No Longer Expected to Occur
Cash flow hedge
Forecast equipment purchases	$	145	$	—		—	$	2,497	$	—
								Construction in progress and equipment to be accepted		Other gains and losses

Six Months Ended June 30, 2023


	Comprehensive Income							Reclassification from Equity to Assets and the Adjusted Line Item
Hedge Transaction	Hedging Gain or Loss Recognized in OCI			Amount of Hedge Ineffectiveness Recognized in Profit or Loss		Line Item in Which Hedge Ineffectiveness is Included		Amount Reclassified to Assets and the Adjusted Line Item		Due to Hedged Future Cash Flows No Longer Expected to Occur
Cash flow hedge
Forecast equipment purchases	$	(2,959	)	$	—		—	$	17,011	$	—
									Construction in progress and equipment to be accepted		Other gains and losses

21.

SHORT-TERM LOANS


	June 30, 2024		December 31, 2023		June 30, 2023
Unsecured bank loans	$	365,000	$	585,000	$	654,000

The annual interest rates of bank loans were as follows:


	June 30, 2024	December 31, 2023	June 30, 2023
Unsecured bank loans	1.70%~3.49%	2.16%~3.36%	1.66%~3.36%

22.

LONG-TERM LOANS


	June 30, 2024		December 31, 2023		June 30, 2023
Secured bank loans (Note 38)		$1,600,000		$1,600,000		$1,600,000
Less: Current portion		(1,600,000)		(1,600,000)		—

	$	—	$	—	$	1,600,000

- 40 -

The annual interest rates of bank loans were as follows:


	June 30, 2024			December 31, 2023			June 30, 2023
Secured bank loans		2.01	%		1.87	%		1.91	%

LED obtained a secured loan from Chang Hwa Bank with monthly interest payments. The contract will be due in September 2024.

23.

BONDS PAYABLE


	June 30, 2024			December 31, 2023			June 30, 2023
Unsecured domestic bonds	$	30,500,000		$	30,500,000		$	30,500,000
Less: Discounts on bonds payable		(14,463	)		(17,234	)		(19,902	)

	$	30,485,537		$	30,482,766		$	30,480,098

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


Issuance	Tranche	Issuance Period	Total Amount	Coupon Rate	Repayment and Interest Payment
2020-1	A	July 2020 to July 2025	$8,800,000	0.50%	One-time repayment upon maturity; interest payable annually
	B	July 2020 to July 2027	7,500,000	0.54%	The same as above
	C	July 2020 to July 2030	3,700,000	0.59%	The same as above
2021-1	A	April 2021 to April 2026	1,900,000	0.42%	The same as above
	B	April 2021 to April 2028	4,100,000	0.46%	The same as above
	C	April 2021 to April 2031	1,000,000	0.50%	The same as above
2022-1 (Sustainable Bond)	—	March 2022 to March 2027	3,500,000	0.69%	The same as above

24.

TRADE NOTES AND ACCOUNTS PAYABLE


	June 30, 2024		December 31, 2023		June 30, 2023
Trade notes and accounts payable	$	9,826,528	$	14,395,740	$	10,518,881

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

25.

OTHER PAYABLES


	June 30, 2024		December 31, 2023		June 30, 2023
Accrued salary and compensation	$	6,249,715	$	10,441,118	$	6,067,617
Accrued compensation to employees and remuneration to directors and supervisors		3,029,794		2,107,392		2,922,636

(Continued)

- 41 -


	June 30, 2024		December 31, 2023		June 30, 2023
Amounts collected for others	$	1,627,580	$	1,543,596	$	1,670,773
Payables to contractors		1,228,845		1,990,007		1,517,691
Accrued maintenance costs		1,102,704		1,316,233		929,816
Payables to equipment suppliers		563,700		1,311,426		1,230,866
Others		8,664,654		6,547,154		8,009,120

	$	22,466,992	$	25,256,926	$	22,348,519

(Concluded)

26.

PROVISIONS


	June 30, 2024		December 31, 2023		June 30, 2023
Employee benefits	$	400,939	$	387,082	$	372,554
Warranties		237,133		237,873		230,921
Onerous contracts		174,262		194,651		90,304
Others		3,067		3,067		3,767

	$	815,401	$	822,673	$	697,546

Current	$	317,116	$	337,406	$	224,017
Noncurrent		498,285		485,267		473,529

	$	815,401	$	822,673	$	697,546


	Employee Benefits			Warranties			Onerous Contracts			Others		Total
Balance on January 1, 2023	$	64,776		$	235,308		$	95,201		$	3,767	$	399,052
Additional / (reversal of) provisions recognized		308,224			39,341			(4,897	)		—		342,668
Used / forfeited during the period		(446	)		(43,700	)		—			—		(44,146	)
Effect of foreign exchange differences		—			(28	)		—			—		(28	)

Balance on June 30, 2023	$	372,554		$	230,921		$	90,304		$	3,767	$	697,546

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

The provision for warranty claims represents the present value of the management’s best estimate of the future outflow of economic benefits that will be required under the Company’s obligation for warranties in sales agreements. The estimate has been made based on historical warranty experience.

The provision for employee benefits represents vested long-term service compensation accrued.

- 42 -

The provision for onerous contracts represents the present obligation resulting from the measurement for the unavoidable costs of meeting the Company’s contractual obligations exceed the economic benefits expected to be received from the contracts.

27.

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, 2023 and 2022 were as follows:


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Operating costs	$	104,919	$	123,282	$	209,825	$	246,251
Marketing expenses		77,752		82,170		155,584		164,199
General and administrative expenses		18,019		19,381		35,902		39,080
Research and development expenses		7,986		8,701		15,998		17,514

	$	208,676	$	233,534	$	417,309	$	467,044

28.

EQUITY

Share capital

Common stocks


	June 30, 2024		December 31, 2023		June 30, 2023
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

Each issued common stock with par value of $10 is entitled the right to vote and receive dividends.

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, 2024, the outstanding ADSs were 181,985 thousand common stocks, which equaled 18,199 thousand units and represented 2.35% 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:

- 43 -

Exercise their voting rights,

Sell their ADSs, and

Receive dividends declared and subscribe to the issuance of new shares.

Additional paid-in capital

The adjustments of additional paid-in capital for the six months ended June 30, 2024 and 2023 were as follows:


	Share Premium		Movements of Additional Paid-in Capital for Associates and Joint Ventures Accounted for Using Equity Method			Movements of Additional Paid-in Capital Arising from Changes in Equities of Subsidiaries			Difference between Consideration Received or Paid and Carrying Amount of the Subsidiaries’ Net Assets during Actual Disposal or Acquisition		Donated Capital		Stockholders’ Contribution due to Privatization		Total
Balance on January 1, 2023	$	147,329,386	$	173,672		$	2,137,032		$	987,611	$	25,119	$	20,648,078	$	171,300,898
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		—		(134	)		—			—		—		—		(134	)
Share-based payment transactions of subsidiaries		—		—			1,590			—		—		—		1,590

Balance on June 30, 2023	$	147,329,386	$	173,538		$	2,138,622		$	987,611	$	25,119	$	20,648,078	$	171,302,354

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 associates and joint ventures accounted for using equity method		—		62,678			—			—		—		—		62,678
Share-based payment transactions 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

Additional paid-in capital from share premium, donated capital and the difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition may be utilized to offset deficits. Furthermore, when Chunghwa has no deficit, it may be distributed in cash or capitalized, which however is limited to a certain percentage of Chunghwa’s paid-in capital except the additional paid-in capital arising from unclaimed dividend can only be utilized to offset deficits.

The additional paid-in capital from movements of paid-in capital arising from changes in equities of subsidiaries may only be utilized to offset deficits.

Among additional paid-in capital from movements of investments in associates and joint ventures accounted for using equity method, the portion arising from the difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition may be utilized to offset deficits; furthermore, when the Company has no deficit, it may be distributed in cash or capitalized. However, other additional paid-in capital recognized in proportion of share ownership may only be utilized to offset deficits.

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.

- 44 -

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 2023 and 2022 earnings of Chunghwa approved by the stockholders in their meetings on May 31, 2024 and May 26, 2023 were as follows:


	Appropriation of Earnings						Dividends Per Share (NT$)
	For Fiscal Year 2023			For Fiscal Year 2022			For Fiscal Year 2023		For Fiscal Year 2022
Reversal of special reserve	$	(223,084	)	$	(185,066	)
Cash dividends		36,909,931			36,475,514		$	4.758	$	4.702

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.

Others

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.

Unrealized gain or loss on financial assets at FVOCI


	Six Months Ended June 30
	2024			2023
Beginning balance	$	520,748		$	(124,762	)
Recognized for the period
Unrealized gain or loss
Equity instruments		241,399			437,221
Share of loss of associates and joint ventures accounted for using equity method		(7,743	)		(1,452	)

Ending balance	$	754,404		$	311,007

- 45 -

Noncontrolling interests


	Six Months Ended June 30
	2024			2023
Beginning balance	$	12,596,252		$	12,599,541
Shares attributed to noncontrolling interests
Net income for the period		504,102			515,206
Exchange differences arising from the translation of the foreign operations		12,300			(949	)
Unrealized gain or loss on financial assets at FVOCI		(601	)		(300	)
Share of other comprehensive income of associates and joint ventures accounted for using equity method		19,932			747
Cash dividends recognized by subsidiaries		(897,678	)		(1,091,670	)
Share-based payment transactions of subsidiaries		18,279			19,275
Changes in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		(1,728	)		—
Net increase in noncontrolling interests		1,039			—

Ending balance	$	12,251,897		$	12,041,850

29.

REVENUES


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Revenue from contracts with customers	$	53,489,054	$	52,897,772	$	107,818,815	$	106,023,047

Other revenues
Rental income		286,918		278,396		578,418		553,920
Government grants income		292,887		241,256		567,239		1,004,483
Others		46,874		46,227		94,732		93,106

		626,679		565,879		1,240,389		1,651,509

	$	54,115,733	$	53,463,651	$	109,059,204	$	107,674,556

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, 2023 for details.

Disaggregation of revenue

Please refer to Note 42 Segment Information for details.

- 46 -

Contract balances


	June 30, 2024			December 31, 2023			June 30, 2023			January 1, 2023
Trade notes and accounts receivable (Note 9)	$	23,630,846		$	24,841,995		$	21,996,030		$	24,672,473

Contract assets
Products and service bundling	$	9,969,190		$	9,297,181		$	8,531,371		$	7,955,689
Others		1,715,539			1,205,973			1,612,839			1,255,584
Less: Loss allowance		(23,516	)		(21,282	)		(20,263	)		(19,129	)

	$	11,661,213		$	10,481,872		$	10,123,947		$	9,192,144

Current	$	7,495,318		$	6,713,227		$	6,709,840		$	6,055,343
Noncurrent		4,165,895			3,768,645			3,414,107			3,136,801

	$	11,661,213		$	10,481,872		$	10,123,947		$	9,192,144

Contract liabilities
Telecommunications business	$	14,154,278		$	14,015,949		$	13,890,909		$	14,081,316
Project business		7,363,091			6,654,364			5,705,841			6,586,384
Advance land receipts (Note 39)		760,704			459,697			187,141			—
Others		665,894			518,758			568,708			396,834

	$	22,943,967		$	21,648,768		$	20,352,599		$	21,064,534

Current	$	15,219,078		$	14,088,416		$	12,763,432		$	13,390,439
Noncurrent		7,724,889			7,560,352			7,589,167			7,674,095

	$	22,943,967		$	21,648,768		$	20,352,599		$	21,064,534

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.

Incremental costs of obtaining contracts


	June 30, 2024		December 31, 2023		June 30, 2023
Current
Incremental costs of obtaining contracts	$	281,637	$	210,923	$	—

Noncurrent
Incremental costs of obtaining contracts	$	1,059,621	$	939,409	$	950,431

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. LED also believes the commissions paid for obtaining real estate sale contracts are expected to be recoverable; therefore, such costs were capitalized and classified as current by the operating cycle. Amortization expenses for the three months and six months ended June 30, 2024 were $221,960 thousand and $436,680 thousand, respectively. Amortization expenses for the three months and six months ended June 30, 2023 were $213,500 thousand and $427,702 thousand, respectively.

- 47 -

30.

NET INCOME

Other income and expenses


	Three Months Ended June 30					Six Months Ended June 30
	2024			2023		2024			2023
Gain (loss) on disposal of property, plant and equipment, net	$	(3,209	)	$	1,671	$	(689	)	$	1,627

Other income


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Dividend income	$	234,965	$	162,168	$	234,965	$	162,168
Rental income		19,089		18,927		36,576		37,831
Others		33,579		23,048		53,861		48,930

	$	287,633	$	204,143	$	325,402	$	248,929

Other gains and losses


	Three Months Ended June 30						Six Months Ended June 30
	2024			2023			2024			2023
Valuation loss on financial assets and liabilities at fair value through profit or loss, net	$	(10,790	)	$	(42,263	)	$	(72,447	)	$	(88,349	)
Foreign currency exchange loss, net		(17,988	)		(4,644	)		(24,632	)		(59,635	)
Gain on disposal of financial instruments, net		—			—			1,073			—
Others		(4,109	)		(1,890	)		1,855			(4,777	)

	$	(32,887	)	$	(48,797	)	$	(94,151	)	$	(152,761	)

- 48 -

Interest expenses


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Interest on bonds payable	$	41,961	$	41,938	$	83,931	$	83,901
Interest on lease liabilities		31,409		25,654		60,858		48,887
Interest paid to financial institutions		9,797	$	10,065		20,996	$	20,277
Others		6		4		675		8

	$	83,173	$	77,661	$	166,460	$	153,073

Impairment loss (reversal of impairment loss)


	Three Months Ended June 30						Six Months Ended June 30
	2024			2023			2024			2023
Contract assets	$	1,150		$	352		$	2,234		$	1,134

Trade notes and accounts receivable	$	26,430		$	(22,906	)	$	82,602		$	77,380

Other receivables	$	(3,425	)	$	(7,005	)	$	(4,895	)	$	(7,705	)

Inventories	$	10,145		$	(14,441	)	$	35,721		$	(9,167	)

Depreciation and amortization expenses


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Property, plant and equipment	$	7,162,728	$	7,211,911	$	14,360,955	$	14,407,397
Right-of-use assets		1,039,821		1,029,338		2,066,976		2,026,730
Investment properties		11,212		11,064		22,319		22,128
Intangible assets		1,672,640		1,676,910		3,344,912		3,354,416
Incremental costs of obtaining contracts		221,960		213,500		436,680		427,702

Total depreciation and amortization expenses	$	10,108,361	$	10,142,723	$	20,231,842	$	20,238,373

Depreciation expenses summarized by functions
Operating costs	$	7,685,649	$	7,735,469	$	15,387,382	$	15,391,520
Operating expenses		528,112		516,844		1,062,868		1,064,735

	$	8,213,761	$	8,252,313	$	16,450,250	$	16,456,255

Amortization expenses summarized by functions
Operating costs	$	1,846,888	$	1,843,472	$	3,685,677	$	3,687,574
Marketing expenses		22,333		17,651		42,766		35,048
General and administrative expenses		15,442		17,370		31,188		35,162
Research and development expenses		9,937		11,917		21,961		24,334

	$	1,894,600	$	1,890,410	$	3,781,592	$	3,782,118

- 49 -

Employee benefit expenses


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Post-employment benefit
Defined contribution plans	$	263,689	$	237,216	$	519,859	$	468,919
Defined benefit plans		208,676		233,534		417,309		467,044

		472,365		470,750		937,168		935,963

Share-based payment
Equity-settled share-based payment		2,256		2,346		4,629		4,818

Other employee benefit (Note)		11,705,536		11,095,417		23,088,808		22,163,981

Total employee benefit expenses	$	12,180,157	$	11,568,513	$	24,030,605	$	23,104,762

Summary by functions
Operating costs	$	5,695,461	$	5,492,751	$	11,218,173	$	10,979,646
Operating expenses		6,484,696		6,075,762		12,812,432		12,125,116

	$	12,180,157	$	11,568,513	$	24,030,605	$	23,104,762

Note:

Other employee benefit mainly includes salaries, compensation and labor and health insurance expenses, etc.

The amendments to the Chunghwa’s Articles of Incorporation were 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 higher than 0.17%.

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 2023 and 2022 approved by the Board of Directors on February 23, 2024 and February 24, 2023, respectively, were as follows:


	Cash
	2023		2022
Compensation distributed to the employees	$	1,522,481	$	1,498,374
Remuneration paid to the directors		39,797		39,480

There was no difference between the initial accrued amounts recognized in 2023 and 2022 and the amounts approved by the Board of Directors in 2024 and 2023 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.

- 50 -

31.

INCOME TAX

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
	2024			2023			2024			2023
Current tax
Current tax expenses recognized for the period	$	2,312,844		$	2,401,892		$	4,615,177		$	4,739,187
Income tax on unappropriated earnings		5,600			10,808			5,600			10,808
Income tax adjustments on prior years		(152,121	)		(6,836	)		(150,353	)		(35,129	)
Others		(58	)		403			(31	)		767

		2,166,265			2,406,267			4,470,393			4,715,633

Deferred tax
Deferred tax expenses recognized for the period		73,230			48,096			152,659			125,677
Income tax adjustments on prior years		(3,975	)		(1,392	)		(3,975	)		(1,392	)

		69,255			46,704			148,684			124,285

Income tax recognized in profit or loss	$	2,235,520		$	2,452,971		$	4,619,077		$	4,839,918

The applicable tax rate used by the entities subject to the Income Tax Act of the Republic of China is 20%, while the applicable tax rate used by subsidiaries in China is 25%. Tax rates used by other entities of the Company operating in other jurisdictions are based on the tax laws in those jurisdictions.

Income tax examinations

Income tax returns of Chunghwa, SENAO, HHI and IISI have been examined by the tax authorities through 2021. Income tax returns of Youth, ISPOT, Aval, Wiin, SENYOUNG, CHYP, CHSI, LED, SHE, CHIEF, Unigate, CHI, CHPT, NavCore, TestPro, CHST, SFD, CLPT, CHTSC and UTC have been examined by the tax authorities through 2022.

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.

- 51 -

32.

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
	2024			2023			2024			2023
Net income used to compute the basic earnings per share
Net income attributable to the parent	$	9,819,867		$	9,921,274		$	19,211,286		$	19,564,529
Assumed conversion of all dilutive potential common stocks
Employee stock options and employee compensation of subsidiaries		(645	)		(649	)		(1,154	)		(1,494	)

Net income used to compute the diluted earnings per share	$	9,819,222		$	9,920,625		$	19,210,132		$	19,563,035

Weighted Average Number of Common Stocks

(Thousand Shares)


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
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		3,961		1,692		11,442		7,258

Weighted average number of common stocks used to compute the diluted earnings per share		7,761,408		7,759,139		7,768,889		7,764,705

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.

- 52 -

33.

SHARE-BASED PAYMENT ARRANGEMENT

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 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.

The compensation costs for stock options for the three months ended June 30, 2024 and 2023 were $816 thousand and $1,393 thousand, respectively. The compensation costs for stock options for the six months ended June 30, 2024 and 2023 were $1,632 thousand and $2,788 thousand, respectively.

CHIEF modified the plan terms of stock options granted on November 13, 2020 in August 2023; therefore, the exercise price changed from $193.50 to $171.70 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, 2024 and 2023 was as follows:


	Six Months Ended June 30, 2024				Six Months Ended June 30, 2023
	Granted on November 13, 2020				Granted on November 13, 2020
	Number of Options		Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the period		93	$	171.70		142.25		$	193.50
Options forfeited		—		—		(1.50	)		—

Options outstanding at end of the period		93		171.70		140.75			193.50

Options exercisable at end of the period		—		—		0.50			193.50

Weighted average remaining contractual life (years)		1.37				2.37

- 53 -

CHIEF used the fair value method to evaluate the options using the Black-Scholes model and binomial option pricing model and the related assumptions and the fair value of the options were as follows:


	Stock Options Granted on November 13, 2020
Grant-date share price (NT$)	$	356.00
Exercise price (NT$)	$	206.00
Dividend yield		—
Risk-free interest rate		0.18	%
Expected life		5 years
Expected volatility		34.61	%
Weighted average fair value of grants (NT$)	$	173,893

The expected volatility for the options granted in 2020 was based on CHIEF’s average annualized historical share price volatility from June 5, 2018, CHIEF’s listing date on Taipei Exchange, to the grant date.

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.

The compensation costs for stock options for the three months ended June 30, 2024 and 2023 were $195 thousand and $619 thousand, respectively. The compensation costs for stock options for the six months ended June 30, 2024 and 2023 were $389 thousand and $1,236 thousand, respectively.

Information about CHTSC’s outstanding stock options for the six months ended June 30, 2024 and 2023 was as follows:


	Six Months Ended June 30, 2024
	Granted on February 20, 2021					Granted on December 20, 2019
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the period		1,519		$	19.085		40		$	19.085
Options exercised		(689	)		19.085		(5	)		19.085
Options forfeited		(134	)		—		—			—

Options outstanding at end of the period		696			19.085		35			19.085

Options exercisable at end of the period		15		$	19.085		—		$	—

Weighted average remaining contractual life (years)		1.64					0.47

- 54 -


	Six Months Ended June 30, 2023
	Granted on February 20, 2021					Granted on December 20, 2019
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the period		2,343		$	19.085		1,083		$	19.085
Options exercised		(764	)		19.085		(31	)		19.085
Options forfeited		(24	)		—		(31	)		—

Options outstanding at end of the period		1,555			19.085		1,021			19.085

Options exercisable at end of the period		14			19.085		—			—

Weighted average remaining contractual life (years)		2.64					1.47

CHTSC used the fair value method to evaluate the options using the Black-Scholes model and the related assumptions and the fair value of the options were as follows:


	Stock Options Granted on Ferbuary 20, 2021			Stock Options Granted on December 20, 2019
Grant-date share price (NT$)	$	23.76		$	20.17
Exercise price (NT$)	$	19.085		$	19.085
Dividend yield		15.18	%		12.49	%
Risk-free interest rate		0.25	%		0.54	%
Expected life		5 years			5 years
Expected volatility		47.35	%		42.41	%
Weighted average fair value of grants (NT$)	$	3,350		$	2,470

- 55 -

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.

The compensation costs for stock options for the three months ended June 30, 2024 and 2023 were $1,245 thousand and $334 thousand, respectively. The compensation costs for stock options for the six months ended June 30, 2024 and 2023 were $2,608 thousand and $794 thousand, respectively.

CLPT modified the plan terms of stock options granted on September 26, 2023 in September 2023; therefore, the exercise price changed from $16.87 to $15.30 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 September 2023; therefore, the exercise price changed from $16.87 to $15.30 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 September 2023; therefore, the exercise price changed from $15.90 to $14.40 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, 2024 and 2023 was as follows:


	Six Months Ended June 30, 2024
	Granted on September 26, 2023				Granted on May 31, 2022				Granted on February 26, 2021
	Number of Options		Weighted Average Exercise Price (NT$)		Number of Options		Weighted Average Exercise Price (NT$)		Number of Options		Weighted Average Exercise Price (NT$)
Options outstanding at the beginning and end of the period		755	$	15.30		440	$	15.30		440	$	14.40

Options exercisable at end of the year		—		—		220		15.30		440		14.40

Weighted average remaining contractual life (years)		3.24				1.92				0.66

- 56 -


	Six Months Ended June 30, 2023
	Granted on May 31, 2022				Granted on February 26, 2021
	Number of Options		Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the period		440	$	16.87		510		$	15.90
Options exercised		—		—		(55	)		15.90
Options forfeited		—		—		(15	)		—

Options outstanding at end of the period		440		16.87		440			15.90

Options exercisable at end of the period		—		—		192			15.90

Weighted average remaining contractual life (years)		2.92				1.66

CLPT used the fair value method to evaluate the options using the Black-Scholes model and the related assumptions and the fair value of the options were as follows:


	Stock Options Granted on September 26, 2023			Stock Options Granted on May 31, 2022			Stock Options Granted on February 26, 2021
Grant-date share price (NT$)	$	28.43		$	18.66		$	17.63
Exercise price (NT$)	$	16.87		$	16.87		$	16.87
Dividend yield		—			—			—
Risk-free interest rate		1.10	%		0.98	%		0.31	%
Expected life		4 years			4 years			4 years
Expected volatility		31.99	%		35.76	%		35.22	%
Weighted average fair value of grants (NT$)	$	13,225		$	5,665		$	4,750

Expected volatility was based on the average annualized historical share price volatility of CLPT’s comparable companies before the grant date.

- 57 -

34	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
	2024		2023
Additions of property, plant and equipment	$	8,664,250	$	10,707,678
Changes in other payables		1,586,405		1,066,501

Payments for acquisition of property, plant and equipment	$	10,250,655	$	11,774,179

Financing Activities


	Balance on January 1,		Cash Flows From Financing			Changes in Non-Cash Transactions					Cash Flows From Operation Activities -			Balance on 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


	Balance on January 1,		Cash Flows From Financing			Changes in Non-Cash Transactions					Cash Flows From Operation Activities -			Balance on June 30,
	2023		Activities			New Leases		Others			Interest Paid			2023
Lease liabilities	$	10,672,507	$	(2,083,857	)	$	2,199,782	$	(82,414	)	$	(48,887	)	$	10,657,131

35. 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.

- 58 -

36.

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).

Financial instruments that are not measured at fair value but for which fair value is disclosed

Except those listed in the table below, the Company considers that the carrying amounts of financial assets and liabilities not measured at fair value approximate their fair values or the fair values cannot be reliable estimated.


	June 30, 2024				December 31, 2023				June 30, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial liabilities
Financial liabilities measured at amortized cost Bonds payable	$	30,485,537	$	30,476,804	$	30,482,766	$	30,468,634	$	30,480,098	$	30,460,538

The fair value of bonds payable is measured using Level 2 inputs. The valuation of fair value is based on the quoted market prices provided by third party pricing services.

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

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

Hedging financial assets	$	—	$	313	$	—	$	313

(Continued)

- 59 -


	Level 1		Level 2		Level 3		Total
Financial assets at FVOCI
Listed stocks	$	217,190	$	—	$	—	$	217,190
Non-listed stocks		—		—		4,748,731		4,748,731

	$	217,190	$	—	$	4,748,731	$	4,965,921

Financial liabilities at FVTPL
Derivatives	$	—	$	141	$	—	$	141

Hedging financial liabilities	$	—	$	212	$	—	$	212

(Concluded)

December 31, 2023


	Level 1		Level 2		Level 3		Total
Financial assets at FVTPL
Derivatives	$	—	$	483	$	—	$	483
Listed stocks		421		—		—		421
Non-listed stocks		—		—		792,364		792,364
Limited partnership		—		—		219,032		219,032
Other investing agreements		—		—		24,305		24,305

	$	421	$	483	$	1,035,701	$	1,036,605

Financial assets at FVOCI
Listed stocks	$	243,649	$	—	$	—	$	243,649
Non-listed stocks		—		—		4,168,694		4,168,694

	$	243,649	$	—	$	4,168,694	$	4,412,343

Hedging financial liabilities	$	—	$	44	$	—	$	44

June 30, 2023


	Level 1		Level 2		Level 3		Total
Financial assets at FVTPL
Derivatives	$	—	$	3,444	$	—	$	3,444
Listed stocks		434		—		—		434
Non-listed stocks		—		—		776,525		776,525
Limited partnership		—		—		225,204		225,204
Other investing agreements		—		—		26,605		26,605

	$	434	$	3,444	$	1,028,334	$	1,032,212

Hedging financial assets	$	—	$	9,932	$	—	$	9,932

Financial assets at FVOCI
Listed stocks	$	268,689	$	—	$	—	$	268,689
Non-listed stocks		—		—		3,659,613		3,659,613

	$	268,689	$	—	$	3,659,613	$	3,928,302

- 60 -

There were no transfers between Levels 1 and 2 for the six months ended June 30, 2024 and 2023.

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

Six months ended June 30, 2024


Financial Assets	Measured at Fair Value through Profit or Loss			Measured at Fair Value through Other Comprehensive Income		Total
Balance on January 1, 2024	$	1,035,701		$	4,168,694	$	5,204,395
Acquisition		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 at fair value through other comprehensive income”		—			267,257		267,257
Proceeds from capital reduction of the investees and profit distribution		(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	)

Six months ended June 30, 2023


Financial Assets	Measured at Fair Value through Profit or Loss			Measured at Fair Value through Other Comprehensive Income		Total
Balance on January 1, 2023	$	1,020,203		$	3,218,579	$	4,238,782
Acquisition		115,238			—		115,238
Recognized in profit or loss under “Other gains and losses”		(88,274	)		—		(88,274	)
Recognized in other comprehensive income under “Unrealized gain or loss on financial assets at fair value through other comprehensive income”		—			441,034		441,034

(Continued)

- 61 -


Financial Assets	Measured at Fair Value through Profit or Loss			Measured at Fair Value through Other Comprehensive Income		Total
Proceeds from capital reduction of the investees and profit distribution	$	(18,833	)	$	—	$	(18,833	)

Balance on June 30, 2023	$	1,028,334		$	3,659,613	$	4,687,947

Unrealized gain or loss for the six months ended June 30, 2023	$	(87,891	)

(Concluded)

The fair values of financial assets and financial liabilities of Level 2 are determined as follows:

The fair values of financial assets and financial liabilities with standard terms and conditions and traded in active markets are determined with reference to quoted market prices.

For derivatives, fair values are estimated using discounted cash flow model. Future cash flows are estimated based on observable inputs including forward exchange rates at the end of the reporting periods and the forward and spot exchange rates stated in the contracts, discounted at a rate that reflects the credit risk of various counterparties.

The fair values of non-listed domestic and foreign equity investments and other investing agreements were Level 3 financial assets and determined using the market approach by reference the Price-to-Book ratios (P/B ratios) of peer companies that traded in active markets, using the income approach, in which the discounted cash flow is used to capture the present value of the expected future economic benefits to be derived from the investments, or using assets approach. The significant unobservable inputs used were listed in the below table. An increase in growth rate of long-term revenue, a decrease in discount for the lack of marketability or noncontrolling interests discount, or a decrease in the discount rate would result in increases in the fair values.

June 30, 2024

December 31,
2023

June 30, 2023

Discount for lack of marketability

4.68%~20.00%

3.75%~20.00%

14.09%~20.00%

Noncontrolling interests discount

17.01%~25.00%

17.29%~25.00%

Growth rate of long-term revenue

0.12%

0.19%

Discount rate

7.83%~10.00%

7.11%~8.20%

7.52%~7.80%

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, 2024			June 30, 2023
Discount for lack of marketability
5% increase	$	(47,063	)	$	(34,019	)

5% decrease	$	46,822		$	34,019

Noncontrolling interests discount
5% increase	$	(21,253	)	$	(22,850	)

5% decrease	$	21,253		$	22,850

(Continued)

- 62 -


	June 30, 2024			June 30, 2023
Long-term revenue growth rates
0.1% increase	$	33,380		$	31,144

0.1% decrease	$	(32,781	)	$	(30,564	)

Discount rate
1% increase	$	(401,407	)	$	(365,952	)

1% decrease	$	482,413		$	449,355

(Concluded)

Categories of Financial Instruments


	June 30, 2024		December 31, 2023		June 30, 2023
Financial assets
Measured at FVTPL
Mandatorily measured at FVTPL	$	1,073,164	$	1,036,605	$	1,032,212
Hedging financial assets		313		—		9,932
Financial assets at amortized cost (Note a)		96,824,300		82,090,521		93,370,650
Financial assets at FVOCI		4,965,921		4,412,343		3,928,302
Financial liabilities
Measured at FVTPL
Held for trading		141		—		—
Hedging financial liabilities		212		44		—
Measured at amortized cost (Note b)		97,736,974		65,466,108		98,422,119

Note a:

The balances included cash and cash equivalents, trade notes and accounts receivable, receivables from related parties, other current monetary assets and refundable deposits (classified as other noncurrent assets), which were financial assets measured at amortized cost.

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 and long-term loans (including the current portion) which were financial liabilities carried at amortized cost.

Financial Risk Management Objectives

The main financial instruments of the Company include equity investments, 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.

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.

- 63 -

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.

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 40 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:


	June 30, 2024			December 31, 2023			June 30, 2023
Assets
EUR	$	1,413		$	483		$	13,376
Liabilities
EUR		(353	)		(44	)		—

Foreign currency sensitivity analysis

The Company is mainly exposed to the fluctuations of the currencies USD, EUR, SGD and RMB as listed in Note 40.

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.


	Six Months Ended June 30
	2024			2023
Profit or loss
Monetary assets and liabilities (a)
USD	$	39,454		$	65,631
EUR		(23,209	)		(35,608	)
SGD		(38,879	)		(50,456	)
RMB		5,248			867

(Continued)

- 64 -


	Six Months Ended June 30
	2024		2023
Derivatives (b)
EUR	$	7,636	$	8,453
Equity
Derivatives (c)
EUR		3,992		24,343

(Concluded)

This is mainly attributable to the exposure to foreign currency denominated receivables and payables of the Company outstanding at the balance sheet dates.

This is mainly attributable to forward exchange contracts.

This is mainly attributable to the changes in the fair value of derivatives that are designated as cash flow hedges.

For a 5% strengthening of the functional currency against the relevant currencies, there would be an equal and opposite effect on the pre-tax profit or equity for the amounts shown above.

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, 2024		December 31, 2023		June 30, 2023
Fair value interest rate risk
Financial assets	$	57,190,582	$	43,156,022	$	56,675,613
Financial liabilities		41,599,594		41,457,947		41,137,229
Cash flow interest rate risk
Financial assets		10,906,086		9,136,207		8,799,687
Financial liabilities		1,865,000		2,185,000		2,254,000

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 $22,603 thousand and $16,364 thousand for the six months ended June 30, 2024 and 2023, 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 -

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 $52,018 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. If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income would have increased/decreased by $50,108 thousand and $196,415 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, 2023.

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.

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.

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.

- 66 -

June 30, 2024


	Weighted Average Effective Interest Rate (%)		Less than 1 Month		1-3 Months		3 Months to 1 Year		1-5 Years		More than 5 Years		Total
Non-derivative financial liabilities
Non-interest bearing		—	$	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

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


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

December 31, 2023


	Weighted Average Effective Interest Rate (%)		Less than 1 Month		1-3 Months		3 Months to 1 Year		1-5 Years		More than 5 Years		Total
Non-derivative financial liabilities
Non-interest bearing		—	$	37,930,363	$	—	$	2,107,392	$	5,309,097	$	—	$	45,346,852
Floating interest rate instruments		1.99		—		15,000		2,170,000		—		—		2,185,000
Fixed interest rate instruments		0.53		—		—		—		25,800,000		4,700,000		30,500,000

			$	37,930,363	$	15,000	$	4,277,392	$	31,109,097	$	4,700,000	$	78,031,852

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


	Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years		Total
Lease liabilities	$	3,518,419	$	4,819,030	$	2,356,754	$	518,335	$	11,212,538

June 30, 2023


	Weighted Average Effective Interest Rate (%)		Less than 1 Month		1-3 Months		3 Months to 1 Year		1-5 Years		More than 5 Years		Total
Non-derivative financial liabilities
Non-interest bearing		—	$	31,748,584	$	36,475,514	$	—	$	6,454,176	$	—	$	74,678,274
Floating interest rate instruments		1.99		—		229,000		425,000		1,600,000		—		2,254,000
Fixed interest rate instruments		0.53		—		—		—		25,800,000		4,700,000		30,500,000

			$	31,748,584	$	36,704,514	$	425,000	$	33,854,176	$	4,700,000	$	107,432,274

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


	Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years		Total
Lease liabilities	$	3,346,803	$	4,509,005	$	2,301,071	$	711,589	$	10,868,468

- 67 -

The following table detailed the Company’s liquidity analysis for its derivative financial instruments. The table had been drawn up based on the undiscounted gross inflows and outflows on those derivatives that require gross settlement.


	Less than 1 Month		1-3 Months		3 Months to 1 Year		1-5 Years		Total
June 30, 2024
Gross settled
Forward exchange contracts
Inflow	$	—	$	300,423	$	—	$	—	$	300,423
Outflow		—		299,363		—		—		299,363

	$	—	$	1,060	$	—	$	—	$	1,060

December 31, 2023
Gross settled
Forward exchange contracts
Inflow	$	—	$	169,092	$	—	$	—	$	169,092
Outflow		—		168,653		—		—		168,653

	$	—	$	439	$	—	$	—	$	439

June 30, 2023
Gross settled
Forward exchange contracts
Inflow	$	—	$	652,243	$	—	$	—	$	652,243
Outflow		—		638,867		—		—		638,867

	$	—	$	13,376	$	—	$	—	$	13,376

Financing facilities


	June 30, 2024		December 31, 2023		June 30, 2023
Unsecured bank loan facilities
Amount used	$	365,000	$	585,000	$	654,000
Amount unused		58,490,564		56,191,331		56,448,290

	$	58,855,564	$	56,776,331	$	57,102,290

Secured bank loan facilities
Amount used	$	1,600,000	$	1,600,000	$	1,600,000
Amount unused		15,000		20,000		20,000

	$	1,615,000	$	1,620,000	$	1,620,000

- 68 -

37.

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.

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, Senao Networks, Inc.
EnRack Technology Inc.		Subsidiary of the Company’s associate, Senao Networks, Inc.
Emplus Technologies, Inc.		Subsidiary of the Company’s associate, Senao Networks, Inc.
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, CHT Infinity Singapore Pte. Ltd.
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
Chunghwa SEA Holdings		Joint venture
Other related parties
Chunghwa Telecom Foundation		A nonprofit organization of which the funds donated by Chunghwa exceeds one third of its total funds
Senao Technical and Cultural Foundation		A nonprofit organization of which the funds donated by SENAO exceeds one third of its total funds
Sochamp Technology Co., Ltd.		Investor of significant influence over CHST
Tsann Kuen Enterprise Co., Ltd.		Substantial related party of SENAO
E-Life Mall Co., Ltd.		Substantial related party of SENAO
Engenius Technologies Co., Ltd.		Substantial related party of SENAO
Cheng Keng Investment Co., Ltd.		Substantial related party of SENAO
Cheng Feng Investment Co., Ltd.		Substantial related party of SENAO
All Oriented Investment Co., Ltd.		Substantial related party of SENAO
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
Z-Com, Inc.		Investor of significant influence over CHST

- 69 -

Balances and transactions between Chunghwa and its subsidiaries, which are related parties of Chunghwa, have been eliminated on consolidation and are not disclosed in this note. Terms of the foregoing transactions with related parties were not significantly different from transactions with non-related parties. When no similar transactions with non-related parties can be referenced, terms were determined in accordance with mutual agreements. Details of transactions between the Company and other related parties are disclosed below:

Operating transactions


	Revenues
	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Associates	$	75,502	$	111,458	$	155,081	$	189,062
Others		16,419		8,147		21,582		27,476

	$	91,921	$	119,605	$	176,663	$	216,538


	Operating Costs and Expenses
	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Associates	$	156,733	$	210,176	$	373,742	$	493,007
Others		628		5,288		71,056		61,667

	$	157,361	$	215,464	$	444,798	$	554,674

Non-operating transactions


	Non-operating Income and Expenses
	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Associates	$	10,073	$	9,397	$	19,586	$	18,823
Others		342		485		442		677

	$	10,415	$	9,882	$	20,028	$	19,500

- 70 -

Receivables


	June 30, 2024		December 31, 2023		June 30, 2023
Associates	$	82,469	$	75,994	$	100,099
Others		3,709		2,095		851

	$	86,178	$	78,089	$	100,950

Payables


	June 30, 2024		December 31, 2023		June 30, 2023
Associates	$	219,708	$	380,663	$	261,332
Others		5,863		4,426		4,634

	$	225,571	$	385,089	$	265,966

Customers’ deposits


	June 30, 2024		December 31, 2023		June 30, 2023
Associates	$	19,758	$	19,432	$	20,310
Others		—		284		284

	$	19,758	$	19,716	$	20,594

Acquisition of property, plant and equipment


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Associates	$	63	$	250	$	63	$	53,983

Acquisition of intangible assets


	Three Months Ended June 30				Six Months Ended June 30
	2024		2023		2024		2023
Associates	$	—	$	—	$	429	$	—

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, 2024		December 31, 2023		June 30, 2023
Lease liabilities - current	$	202,614	$	197,278	$	194,482
Lease liabilities - noncurrent		1,548,243		1,602,633		1,673,546

	$	1,750,857	$	1,799,911	$	1,868,028

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. The interest expense recognized for the aforementioned lease liabilities for the three months and six months ended June 30, 2023 were $2,003 thousand and $4,050 thousand, respectively.

Others

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


	June 30, 2024		December 31, 2023		June 30, 2023
Bank deposits and other financial assets	$	1,425,692	$	1,132,008	$	—

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.

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
	2024		2023		2024		2023
Short-term employee benefits	$	82,984	$	85,354	$	184,427	$	179,378
Post-employment benefits		1,106		19,731		3,404		21,944
Share-based payment		310		240		634		475
Termination benefits		46		—		46		—

	$	84,446	$	105,325	$	188,511	$	201,797

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

- 72 -

38.

PLEDGED ASSETS

The following assets are pledged as collaterals for bank loans, customs duties of the imported materials and warranties of contract performance, or the trust account LED entrusts to Land Bank of Taiwan for fund control and property rights management.


	June 30, 2024		December 31, 2023		June 30, 2023
Property, plant and equipment	$	2,454,078	$	2,468,835	$	2,483,592
Restricted assets (included in other assets - others)		825,949		546,022		268,598

	$	3,280,027	$	3,014,857	$	2,752,190

39.

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, 2024 were as follows:

Acquisitions of land and buildings of $ 40,879 thousand.

Acquisitions of telecommunications-related inventory and equipment of $ 29,724,645 thousand.

Unused letters of credit amounting to $10,000 thousand.

A commitment to contribute $2,000,000 thousand to a Piping Fund administered by the Taipei City Government, of which $1,000,000 thousand was contributed by Chunghwa on August 15, 1996 (classified as other financial assets—noncurrent). If the fund is not sufficient, Chunghwa will contribute the remaining $1,000,000 thousand upon notification from the Taipei City Government.

Chunghwa committed that when its ownership interest in NCB is greater than 25% and NCB encounters financial difficulty or the capital adequacy ratio of NCB cannot meet the related regulation requirements, Chunghwa will provide financial support to assist NCB in maintaining a healthy financial condition.

Chunghwa signed a contract, the ST-2 Satellite Succession Plan, with Singapore Telecommunications Limited, for a total transaction price of EUR 177,000 thousand and SGD 51,000 thousand. As of June 30, 2024, Chunghwa had paid the amount of EUR 69,915 thousand (classified as prepayments - noncurrent).

LED has signed the land presale contracts amounting to $5,678,332 thousand and has received $760,704 thousand in accordance with the contracts (classified as contract liabilities - current).

Chunghwa’s Board of Directors approved an investment in Cultural Content Industry Fund in February 2024. The investment amount is capped at $1,200,000 thousand.

Chunghwa’s Board of Directors approved an investment in Taiwania Hive Technology Fund L.P. at the amount of USD 30,000 thousand in February 2024.

- 73 -

40.

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:


	June 30, 2024
	Foreign Currencies (Thousands)		Exchange Rate		New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD	$	65,430		32.45	$	2,123,201
EUR		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
USD		41,113		32.45		1,334,127
EUR		14,654		34.71		508,627
SGD		76,208		23.92		1,822,901
RMB		9,608		4.445		42,706


	December 31, 2023
	Foreign Currencies (Thousands)		Exchange Rate		New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD	$	66,564		30.71	$	2,043,834
EUR		1,999		33.98		67,919
SGD		39,515		23.29		920,308
RMB		35,777		4.327		154,806
Non-monetary items
Investments accounted for using equity method
SGD		12,255		23.29		285,430
VND		435,484,544		0.0012		542,178
Liabilities denominated in foreign currencies
Monetary items
USD		33,534		30.71		1,029,674
EUR		19,875		33.98		675,342
SGD		80,039		23.29		1,864,104
RMB		8,880		4.327		38,424

- 74 -


	June 30, 2023
	Foreign Currencies (Thousands)		Exchange Rate		New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD	$	84,433		31.14	$	2,629,234
EUR		5,805		33.81		196,278
SGD		40,082		22.96		920,288
RMB		14,131		4.266		60,282
Non-monetary items
Investments accounted for using equity method
SGD		13,981		22.96		321,009
VND		388,767,156		0.0013		507,341
Liabilities denominated in foreign currencies
Monetary items
USD		42,280		31.14		1,316,613
EUR		26,869		33.81		908,435
SGD		84,033		22.96		1,929,409
RMB		10,064		4.266		42,935

The unrealized foreign currency exchange gains and losses were loss of $14,014 thousand and gain of $28,754 thousand for the three months ended June 30, 2024 and 2023, respectively. The unrealized foreign currency exchange gains and losses were loss of $8,829 thousand and gain of $24,940 thousand for the six months ended June 30, 2024 and 2023, 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.

41.

ADDITIONAL DISCLOSURES

Following are the additional disclosures required by the FSC for the Company:

Financing provided: None.

Endorsement/guarantee provided: Please see Table 1.

Marketable securities held (excluding investments in subsidiaries, associates and joint ventures): Please see Table 2.

Marketable securities acquired or disposed of at costs or prices at least $300 million or 20% of the paid-in capital: None.

Acquisition of individual real estate at costs of at least $300 million or 20% of the paid-in capital: None.

Disposal of individual real estate at prices of at least $300 million or 20% of the paid-in capital: None.

- 75 -

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.

Receivables from related parties amounting to $100 million or 20% of the paid-in capital: Please see Table 4.

Names, locations, and other information of investees on which the Company exercises significant influence (excluding investments in Mainland China): Please see Table 5.

Derivative instruments transactions: Please see Notes 7, 20 and 36.

Investments in Mainland China: Please see Table 6.

Intercompany relationships and significant intercompany transactions: Please see Table 7.

Information of main stakeholders: Please see Table 8.

42.

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:


	Consumer Business		Enterprise Business		International Business		Others		Total
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

(Continued)

- 76 -


	Consumer Business		Enterprise Business		International Business		Others		Total
Segment income before income tax	$	15,467,756	$	6,563,486	$	1,218,692	$	1,084,531	$	24,334,465

Three months ended June 30, 2023
Revenues
From external customers	$	32,759,794	$	17,542,590	$	2,166,160	$	995,107	$	53,463,651
Intersegment revenues		560,428		280,545		238,403		116,353		1,195,729

Segment revenues	$	33,320,222	$	17,823,135	$	2,404,563	$	1,111,460		54,659,380

Intersegment elimination										(1,195,729	)

Consolidated revenues									$	53,463,651

Segment income before income tax	$	7,852,133	$	3,479,864	$	551,107	$	776,556	$	12,659,660

Six months ended June 30, 2023
Revenues
From external customers	$	66,814,554	$	34,647,321	$	4,296,091	$	1,916,590	$	107,674,556
Intersegment revenues		1,206,527		487,730		459,962		182,705		2,336,924

Segment revenues	$	68,021,081	$	35,135,051	$	4,756,053	$	2,099,295		110,011,480

Intersegment elimination										(2,336,924	)

Consolidated revenues									$	107,674,556

Segment income before income tax	$	15,322,995	$	7,434,222	$	1,063,880	$	1,098,556	$	24,919,653

(Concluded)

Main Products and Service Revenues


	Three Months Ended June 30				Six Months Ended June 30

	2024		2023		2024		2023
Consumer Business
Mobile services	$	14,187,325	$	13,666,353	$	28,279,920	$	27,188,426
Fixed-line services		10,774,803		10,645,002		21,465,933		21,242,723
Sales		8,024,537		7,838,128		17,268,643		17,219,914
Others		610,101		610,311		1,206,812		1,163,491

		33,596,766		32,759,794		68,221,308		66,814,554

Enterprise Business
Fixed-line services		8,486,594		8,557,750		16,821,079		16,946,981
ICT business		5,119,648		5,501,944		10,430,882		10,641,430
Mobile services		2,289,165		2,319,806		4,542,081		4,492,750
Others		994,095		1,163,090		2,047,769		2,566,160

		16,889,502		17,542,590		33,841,811		34,647,321

International Business
Fixed-line services		1,323,581		1,363,004		2,591,162		2,701,892
ICT business		1,065,890		564,467		1,910,715		1,109,966
Others		249,280		238,689		550,287		484,233

		2,638,751		2,166,160		5,052,164		4,296,091

Others
Sales		767,619		776,567		1,487,718		1,481,977
Others		223,095		218,540		456,203		434,613

		990,714		995,107		1,943,921		1,916,590

	$	54,115,733	$	53,463,651	$	109,059,204	$	107,674,556

- 77 -

TABLE 1

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

SIX MONTHS ENDED JUNE 30, 2024

(Amounts in Thousands of New Taiwan Dollars)

No.

(Note 1)

Endorsement/
Guarantee
Provider

Guaranteed Party

Limits on
Endorsement/
Guarantee
Amount
Provided to
Each
Guaranteed
Party

Maximum
Balance
for the
Period

Ending
Balance

Actual
Borrowing
Amount

Amount of
Endorsement/
Guarantee
Collateralized
by Properties

Ratio of
Accumulated
Endorsement/
Guarantee to
Net Equity
Per Latest
Financial
Statements

Maximum
Endorsement/
Guarantee
Amount
Allowable

Endorsement/
Guarantee
Given by
Parent on
Behalf of
Subsidiaries

Endorsement/
Guarantee
Given by
Subsidiaries
on Behalf of
Parent

Endorsement/
Guarantee
Given on
Behalf of
Companies
in Mainland
China

Note

Name

Nature of
Relationship
(Note 2)

Senao International Co., Ltd.

Aval Technologies Co., Ltd.

615,623

300,000

—

4.87

3,078,114

Yes

Notes 3
and 4

Wiin Technology Co., Ltd.

615,623

200,000

—

3.25

3,078,114

Yes

Notes 3
and 4

Note 1:

Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as follows:

“0” for the Company.

Subsidiaries are numbered from “1”.

Note 2:

Relationships between the endorsement/guarantee provider and the guaranteed party:

A company with which it does business.

A company in which the Company directly and indirectly holds more than 50 percent of the voting shares.

A company that directly and indirectly holds more than 50 percent of the voting shares in the Company.

Companies in which the Company holds, directly or indirectly, 90% or more of the voting shares.

The Company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.

All capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.

Companies in the same industry provide among themselves jointly and severally guarantee for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 3:

The limits on endorsement or guarantee amount provided to each guaranteed party is up to 10% of the net assets value of the latest financial statements of Senao International Co., Ltd.

Note 4:

The total amount of endorsement or guarantee that the Company is allowed to provide is up to 50% of the net assets value of the latest financial statements of Senao International Co., Ltd.

- 78 -

TABLE 2

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

JUNE 30, 2024

(Amounts in Thousands of New Taiwan Dollars)


Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	June 30, 2024								Note
Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares (Thousands/ Thousand Units)		Carrying Value (Note 1)		Percentage of Ownership		Fair Value		Note
Chunghwa Telecom Co., Ltd.	Stocks
	Taipei Financial Center Corp.	—	Financial assets at FVOCI		172,927	$	3,936,723		12	$	3,936,723	—
	iKala Global Online Corp.	—	Financial assets at FVOCI		112,500		282,780		8		282,780	—
	KKCompany Technologies Inc.	—	Financial assets at FVOCI		2,762		255,630		2		255,630	—
	4 Gamers Entertainment Inc.	—	Financial assets at FVOCI		136		150,830		19.9		150,830	—
	Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II)	—	Financial assets at FVOCI		5,252		17,098		17		17,098	—
	Innovation Works Limited	—	Financial assets at FVOCI		1,000		2,308		2		2,308	—
	Taiwan mobile payment Co., Ltd.	—	Financial assets at FVOCI		1,200		4,446		2		4,446	—
	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		447,573		13		447,573	—
	TOP TAIWAN XIV VENTURE CAPITAL CO., LTD.	—	Financial assets at FVTPL - noncurrent		20,000		185,295		9		185,295	—
	Innovation Works Development Fund, L.P.	—	Financial assets at FVTPL - noncurrent		—		75,493		4		75,493	—
	Limited partnership
	Taiwania Capital Buffalo Fund VI, L.P.	—	Financial assets at FVTPL - noncurrent		—		282,224		10		282,224	—
Senao International Co., Ltd.	Stocks
	N.T.U. Innovation Incubation Corporation	—	Financial assets at FVOCI		1,200		11,281		9		11,281	—
CHIEF Telecom Inc.	Stocks
	WPG Holdings Limited	—	Financial assets at FVOCI		2,102		102,998		—		102,998	Note 2
	WT Microelectronics Co., Ltd.	—	Financial assets at FVOCI		361		17,075		—		17,075	Note 2
	3 Link Information Service Co., Ltd.	—	Financial assets at FVOCI		374		1,147		10		1,147	—
	WPG Holdings Limited	—	Financial assets at FVTPL - current		9		439		—		439	Note 2
Chunghwa Investment Co., Ltd.	Stocks
	PChome Online Inc.	—	Financial assets at FVOCI		1,875		66,292		1		66,292	Note 2
	Tatung Technology Inc.	—	Financial assets at FVOCI		4,571		42,384		11		42,384	—
	Bossdom Digiinnovation Co., Ltd.	—	Financial assets at FVOCI		2,309		30,825		7		30,825	Note 2
	KEYXENTIC INC.	—	Financial assets at FVOCI		600		30,474		11		30,474	—
	ioNetworks Inc.	—	Financial assets at FVOCI		107		13,630		2		13,630	—
	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		—		33,116		3		33,116	—
CHT Security Co., Ltd.	Stocks
	TXOne Networks Inc.	—	Financial assets at FVTPL - noncurrent		91		16,225		—		16,225	—

Note 1: Showed 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.

- 79 -

TABLE 3

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

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

SIX MONTHS ENDED JUNE 30, 2024

(Amounts in Thousands of New Taiwan Dollars)


Company Name	Related Party	Nature of Relationship	Transaction Details							Abnormal Transaction				Notes / Accounts Payable or Receivable
Company Name	Related Party	Nature of Relationship	Purchases/Sales (Note 1)	Amount (Note 4)		% to Total		Payment Terms		Unit Price		Payment Terms		Ending Balance (Notes 2 and 4)			% to Total
Chunghwa Telecom Co., Ltd.	Senao International Co., Ltd.	Subsidiary	Sales	$	2,007,763		2		30 days	$	—		—	$	217,546			1
			Purchase		813,295		1		30~90 days		—		—		(1,047,073	)		(11	)
	CHIEF Telecom Inc.	Subsidiary	Sales		251,271		—		30 days		—		—		68,085			—
	Chunghwa System Integration Co., Ltd.	Subsidiary	Purchase		432,888		1		30 days		—		—		(266,349	)		(3	)
	Honghwa International Co., Ltd.	Subsidiary	Sales		104,401		—		30~60 days		—		—		1,582			—
			Purchase		3,464,780		6		30~60 days		—		—		(1,012,441	)		(10	)
	Donghwa Telecom Co., Ltd.	Subsidiary	Purchase		292,706		1		90 days		—		—		(170,071	)		(2	)
	Chunghwa Telecom Global, Inc.	Subsidiary	Purchase		150,648		—		90 days		—		—		(75,439	)		(1	)
	Chunghwa Telecom Singapore Pte., Ltd.	Subsidiary	Purchase		143,688		—		30 days		—		—		(217,427	)		(2	)
	CHT Security Co., Ltd.	Subsidiary	Purchase		152,088		—		30 days		—		—		(73,823	)		(1	)
	International Integrated Systems, Inc.	Subsidiary	Purchase		305,254		1		30 days		—		—		(56,218	)		(1	)
	Taiwan International Standard Electronics Co., Ltd.	Associate	Purchase		255,618		—		30~90 days		—		—		(118,647	)		(1	)
CHIEF Telecom Inc.	Chunghwa Telecom Co., Ltd.	Parent company	Sales		103,508		6		60 days		—		—		12,735			3
Chunghwa Precision Test Tech. Co., Ltd.	Su Zhou Precision Test Tech. Ltd.	Subsidiary	Sales		126,722		9		90 days		—		—		95,906			17

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.

- 80 -

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, 2024

(Amounts in Thousands of New Taiwan Dollars)


Company Name	Related Party	Nature of Relationship	Ending Balance			Turnover Rate (Note 1)		Overdue				Amounts Received in Subsequent Period		Allowance for Bad Debts
Company Name	Related Party	Nature of Relationship	Ending Balance			Turnover Rate (Note 1)		Amounts		Action Taken		Amounts Received in Subsequent Period		Allowance for Bad Debts
Chunghwa Telecom Co., Ltd.	Senao International Co., Ltd.	Subsidiary	$	315,929 (Note 2	)		10.71	$	—		—	$	72,153	$	—
Chunghwa Telecom Co., Ltd.	Chunghwa Telecom Global, Inc.	Subsidiary		100,408 (Note 2	)		2.73		—		—		58,339		—
Senao International Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		1,184,187 (Note 2	)		9.34		—		—		184,966		—
Chunghwa System Integration Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		266,349 (Note 2	)		3.36		—		—		32,953		—
Honghwa International Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		1,026,391 (Note 2	)		6.23		—		—		66,611		—
Donghwa Telecom Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		170,071 (Note 2	)		7.03		—		—		110,476		—
Chunghwa Telecom Singapore Pte., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		217,378 (Note 2	)		10.35		—		—		188,947		—
Chunghwa Precision Test Tech. Co., Ltd.	Su Zhou Precision Test Tech. Ltd.	Parent company		95,906 (Note 2	)		2.76		—		—		11,974		—

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.

- 81 -

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)

SIX MONTHS ENDED JUNE 30, 2024

(Amounts in Thousands of New Taiwan Dollars)


Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount				Balance as of June 30, 2024							Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1 and 2)			Note
Investor Company	Investee Company	Location	Main Businesses and Products	June 30, 2024		December 31, 2023		Shares (Thousands)		Percentage of Ownership (%)		Carrying Value			Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1 and 2)			Note
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	$	1,675,584		$	229,061		$	60,012		Subsidiary (Notes 3 and 5)
	Light Era Development Co., Ltd.	Taiwan	Planning and development of real estate and intelligent buildings, and property management		3,000,000		3,000,000		300,000		100		3,831,317			7,517			8,400		Subsidiary (Note 5)
	Donghwa Telecom Co., Ltd.	Hong Kong	International private leased circuit, IP VPN service, and IP transit services		691,163		691,163		178,590		100		857,852			46,943			46,943		Subsidiary (Note 5)
	Chunghwa Telecom Singapore Pte., Ltd.	Singapore	International private leased circuit, IP VPN service, and IP transit services		574,112		574,112		26,383		100		1,316,851			92,552			92,576		Subsidiary (Note 5)
	Chunghwa System Integration Co., Ltd.	Taiwan	Providing system integration services and telecommunications equipment		838,506		838,506		60,000		100		669,809			24,085			9,804		Subsidiary (Note 5)
	CHIEF Telecom Inc.	Taiwan	Network integration, internet data center (“IDC”), communications integration and cloud application services		459,652		459,652		43,368		56		1,995,269			498,803			287,553		Subsidiary (Note 5)
	Chunghwa Investment Co., Ltd.	Taiwan	Investment		639,559		639,559		68,085		89		3,038,913			23,722			21,180		Subsidiary (Note 5)
	Prime Asia Investments Group Ltd.	British Virgin Islands	Investment		385,274		385,274		1		100		178,910			6,851			6,851		Subsidiary (Note 5)
	Honghwa International Co., Ltd.	Taiwan	Telecommunication engineering, sales agent of mobile phone plan application and other business services, etc.		180,000		180,000		18,000		100		580,077			252,839			253,233		Subsidiary (Notes 3 and 5)
	CHYP Multimedia Marketing & Communications Co., Ltd.	Taiwan	Digital information supply services and advertisement services		150,000		150,000		15,000		100		196,198			9,287			9,375		Subsidiary (Note 5)
	Chunghwa Telecom Vietnam Co., Ltd.	Vietnam	Intelligent energy saving solutions, international circuit, and information and communication technology (“ICT”) services		148,275		148,275		—		100		76,476			1,843			1,843		Subsidiary (Note 5)
	Chunghwa Telecom Global, Inc.	United States	International private leased circuit, internet services, and transit services		70,429		70,429		6,000		100		787,044			37,771			37,771		Subsidiary (Note 5)
	CHT Security Co., Ltd.	Taiwan	Computing equipment installation, wholesale of computing and business machinery equipment and software, management consulting services, data processing services, digital information supply services and internet identify services		240,000		240,000		24,000		66		436,874			193,373			131,395		Subsidiary (Note 5)
	Chunghwa Telecom (Thailand) Co., Ltd.	Thailand	International private leased circuit, IP VPN service, ICT and cloud VAS services		119,624		119,624		1,300		100		130,788			10,272			10,272		Subsidiary (Note 5)
	Spring House Entertainment Tech. Inc.	Taiwan	Software design services, internet contents production and play, and motion picture production and distribution		62,209		62,209		8,251		56		158,082			22,035			12,349		Subsidiary (Note 5)
	Chunghwa leading Photonics Tech Co., Ltd.	Taiwan	Production and sale of electronic components and finished products		70,500		70,500		7,050		75		176,945			31,406			23,417		Subsidiary (Note 5)
	Smartfun Digital Co., Ltd.	Taiwan	Providing diversified family education digital services		65,000		65,000		6,500		65		73,050			2,703			1,230		Subsidiary (Note 5)
	Chunghwa Telecom Japan Co., Ltd.	Japan	International private leased circuit, IP VPN service, and IP transit services		17,291		17,291		1		100		207,504			65,494			65,494		Subsidiary (Note 5)
	Chunghwa Sochamp Technology Inc.	Taiwan	Design, development and production of Automatic License Plate Recognition software and hardware		20,400		20,400		2,040		37		(9,713	)		(3,001	)		(1,991	)	Subsidiary (Note 5)
	International Integrated Systems, Inc.	Taiwan	IT solution provider, IT application consultation, system integration and package solution		517,423		517,423		37,211		51		618,174			32,908			20,227		Subsidiary (Note 5)
	Chunghwa Digital Cultural and Creative Capital Co., Ltd	Taiwan	Investment and management consulting		50,000		—		5,000		100		47,052			(3,243	)		(2,948	)	Subsidiary (Note 5)
	Viettel-CHT Co., Ltd.	Vietnam	IDC services		288,327		288,327		—		30		519,071			154,585			46,397		Associate

(Continued)

- 82 -

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, 2024

(Amounts in Thousands of New Taiwan Dollars)


Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount				Balance as of June 30, 2024						Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1 and 2)			Note
Investor Company	Investee Company	Location	Main Businesses and Products	June 30, 2024		December 31, 2023		Shares (Thousands)		Percentage of Ownership (%)		Carrying Value		Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1 and 2)			Note
	Taiwan International Standard Electronics Co., Ltd.	Taiwan	Manufacturing, selling, designing, and maintaining of telecommunications systems and equipment	$	164,000	$	164,000		1,760		40	$	248,739	$	55,964		$	28,124		Associate
	KKBOX Taiwan Co., Ltd.	Taiwan	Providing of music on-line, software, electronic information, and advertisement services		67,025		67,025		4,438		30		164,501		(6,009	)		(1,803	)	Associate
	So-net Entertainment Taiwan Limited	Taiwan	Online service and sale of computer hardware		120,008		120,008		9,429		30		215,187		(35,033	)		(10,510	)	Associate
	KingwayTek Technology Co., Ltd.	Taiwan	Design and sale of digital map, technical support for computer peripherals device, design and development of system programming projects		66,684		66,684		11,563		23		264,415		36,621			8,320		Associate
	Taiwan International Ports Logistics Corporation	Taiwan	Import and export storage, logistic warehouse, and ocean shipping service		80,000		80,000		8,000		27		112,366		69,059			18,418		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		254,873		(5,569	)		(2,784	)	Associate
	Cornerstone Ventures Co., Ltd.	Taiwan	Investment, venture capital, investment advisor, management consultant and other consultancy service		4,900		4,900		490		49		5,312		316			155		Associate
	Next Commercial Bank Co., Ltd.	Taiwan	Online banking business		5,733,847		5,733,847		462,643		46		4,112,887		(378,129	)		(171,832	)	Associate
	Chunghwa SEA Holdings	Taiwan	Investment business		10,200		10,200		1,020		51		9,367		(188	)		(96	)	Joint venture
	WiAdvance Technology Corporation	Taiwan	Software solution integration		273,800		273,800		3,700		16		280,768		(15,352	)		(7,991	)	Associate
Senao International Co., Ltd.	Senao Networks, Inc.	Taiwan	Telecommunication facilities manufactures and sales		202,758		202,758		16,579		34		1,551,669		76,780			25,946		Associate
	Youth Co., Ltd.	Taiwan	Sale of information and communication technologies products		427,850		427,850		14,752		96		164,723		(635	)		(4,667	)	Subsidiary (Note 5)
	Aval Technologies Co., Ltd.	Taiwan	Sale of information and communication technologies products		89,550		89,550		13,266		100		138,679		1,217			1,217		Subsidiary (Note 5)
	Senyoung Insurance Agent Co., Ltd.	Taiwan	Property and liability insurance agency		59,000		59,000		8,909		100		121,789		18,326			18,326		Subsidiary (Note 5)
CHIEF Telecom Inc.	Unigate Telecom Inc.	Taiwan	Telecommunications and internet service		2,000		2,000		200		100		1,386		52			52		Subsidiary (Note 5)
	Chief International Corp.	Samoa Islands	Telecommunications and internet service		6,068		6,068		200		100		111,293		3,807			3,807		Subsidiary (Note 5)
Chunghwa Telecom Singapore Pte., Ltd.	ST-2 Satellite Ventures Pte., Ltd.	Singapore	Operation of ST-2 telecommunications satellite		21,309		21,309		943		38		370,774		238,186			90,821		Associate
	CHT Infinity Singapore Pte. Ltd.	Singapore	Investment business		55,720		55,720		2,000		40		58,680		2,953			1,181		Associate
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		2,605,148		80,982			27,736		Subsidiary (Note 5)
	CHIEF Telecom Inc.	Taiwan	Network integration, internet data center (“IDC”), communications integration and cloud application services		19,064		19,064		2,286		3		96,588		498,803			14,643		Associate (Note 5)
	Senao International Co., Ltd.	Taiwan	Selling and maintaining mobile phones and its peripheral products		49,731		49,731		1,001		—		44,606		229,061			888		Associate (Note 5)
	AgriTalk Technology Inc.	Taiwan	Providing smart agricultural solutions, scientific agricultural product, biological inhibitor, and biochips		65,175		65,175		3,300		29		28,279		(9,262	)		(2,519	)	Associate
	Imedtac Co., Ltd.	Taiwan	Providing medical AIoT solution, biomedical engineering services, and sales of medical device as an agent		91,381		59,467		1,828		10		60,373		(27,124	)		(2,766	)	Associate
	Porrima Inc.	Taiwan	Designing and selling zero-emission ships		80,000		—		8,000		10		80,000		—			—		Associate

(Continued)

- 83 -

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, 2024

(Amounts in Thousands of New Taiwan Dollars)


Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount				Balance as of June 30, 2024						Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1 and 2)			Note
Investor Company	Investee Company	Location	Main Businesses and Products	June 30, 2024		December 31, 2023		Shares (Thousands)		Percentage of Ownership (%)		Carrying Value		Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1 and 2)			Note
Chunghwa Precision Test Tech. Co., Ltd.	Chunghwa Precision Test Tech USA Corporation	United States	Design and after-sale services of semiconductor testing components and printed circuit board	$	74,192	$	74,192		2,600		100	$	106,990	$	183		$	12		Subsidiary (Note 5)
	CHPT Japan Co., Ltd.	Japan	Related services of electronic parts, machinery processed products and printed circuit board		2,008		2,008		1		100		2,105		46			46		Subsidiary (Note 5)
	Chunghwa Precision Test Tech. International, Ltd.	Samoa Islands	Wholesale and retail of electronic materials, and investment		173,649		173,649		5,700		100		145,032		(21,887	)		(19,390	)	Subsidiary (Note 5)
	TestPro Investment Co., Ltd.	Taiwan	Investment		135,000		135,000		13,500		100		45,675		(19,134	)		(18,355	)	Subsidiary (Note 5)
TestPro Investment Co., Ltd.	NavCore Tech. Co., Ltd	Taiwan	Sale and manufacturing of smart equipment, smart factory software and hardware integration and technical consulting service		108,500		108,500		10,850		54		38,429		(35,352	)		(19,178	)	Subsidiary (Note 5)
Prime Asia Investments Group, Ltd.	Chunghwa Hsingta Co., Ltd.	Hong Kong	Investment		375,274		375,274		1		100		178,910		6,851			6,851		Subsidiary (Note 5)
Youth Co., Ltd.	ISPOT Co., Ltd.	Taiwan	Sale of information and communication technologies products		53,021		53,021		—		100		13,662		189			93		Subsidiary (Note 5)
Aval Technologies Co., Ltd.	Wiin Technology Co., Ltd.	Taiwan	Sale of information and communication technologies products		29,550		29,550		4,728		100		49,880		630			630		Subsidiary (Note 5)
CHYP Multimedia Marketing & Communications Co., Ltd	Click Force Marketing Company	Taiwan	Advertisement services		44,607		44,607		1,715		49		47,077		9,035			4,440		Associate
International Integrated Systems, Inc.	Unitronics Technology Corp.	Taiwan	Development and maintenance of information system		55,610		55,610		5,067		100		78,301		2,048			2,048		Subsidiary (Note 5)
CHT Security Co., Ltd.	Baohwa Trust Co., Ltd.	Taiwan	VR integration and AIoT security services		20,000		20,000		2,000		25		10,011		(1,224	)		(306	)	Associate

Note 1: The amounts were based on reviewed financial statements.

Note 2: Recognized gain (loss) of investees includes amortization of differences between the investment cost and net value and elimination of unrealized transactions.

Note 3: Recognized gain (loss) and carrying value of the investees did not include the adjustment of the difference between the accounting treatment on standalone basis and consolidated basis as a result of the application of IFRS 15.

Note 4: Investments in mainland China are included in Table 6.

Note 5: The amount was eliminated upon consolidation.

(Concluded)

- 84 -

TABLE 6

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

INVESTMENTS IN MAINLAND CHINA

SIX MONTHS ENDED JUNE 30, 2024

(Amounts in Thousands of New Taiwan Dollars)


Investee	Main Businesses and Products	Total Amount of Paid-in Capital		Investment Type (Note 1)		Accumulated Outflow of Investment from Taiwan as of January 1, 2024		Investment Flows				Accumulated Outflow of Investment from Taiwan as of June 30, 2024		Net Income (Loss) of the Investee			% Ownership of Direct or Indirect Investment		Investment Gain (Loss) (Note 2)			Carrying Value as of June 30, 2024		Accumulated Inward Remittance of Earnings as of June 30, 2024		Note
Investee	Main Businesses and Products	Total Amount of Paid-in Capital		Investment Type (Note 1)				Outflow		Inflow				Net Income (Loss) of the Investee			% Ownership of Direct or Indirect Investment		Investment Gain (Loss) (Note 2)			Carrying Value as of June 30, 2024				Note
Chunghwa Telecom (China) Co., Ltd.	Integrated information and communication solution services for enterprise clients, and intelligent energy network service	$	177,176		2	$	177,176	$	—	$	—	$	177,176	$	—			100	$	—		$	—	$	—		Notes 6 and 9
Jiangsu Zhenghua Information Technology Company, LLC	Providing intelligent energy saving solution and intelligent buildings services		189,410		2		142,057		—		—		142,057		—			75		—			—		—		Notes 7 and 9
Shanghai Taihua Electronic Technology Limited	Design of printed circuit board and related consultation service		51,233		2		51,233		—		—		51,233		589			100		589			9,073		—		Notes 8 and 9
Su Zhou Precision Test Tech. Ltd.	Assembly processed of circuit board, design of printed circuit board and related consultation service		119,199		2		119,199		—		—		119,199		(22,567	)		100		(22,567	)		147,042		—		Notes 8 and 9
Shanghai Chief Telecom Co., Ltd.	Telecommunications and internet service		10,150		1		4,973		—		—		4,973		(1,720	)		49		(843	)		4,616		9,533		Note 9

- 85 -


Investee	Accumulated Investment in Mainland China as of June 30, 2024		Investment Amounts Authorized by Investment Commission, MOEA		Upper Limit on Investment Stipulated by Investment Commission, MOEA
Chunghwa Telecom Co., Ltd. (Note 3)	$	319,233	$	319,233	$	226,375,429
Chunghwa Precision Test Tech. Co., Ltd. and its subsidiaries (Note 4)		170,432		216,185		4,581,688
CHIEF Telecom Inc. and its subsidiaries (Note 5)		4,973		4,973		1,978,042

Note 1:

Investments are divided into three categories as follows:

Direct investment.

Investments through a holding company registered in a third region.

Others.

Note 2:

The amounts were calculated based on the investee’s reviewed financial statements.

Note 3:

Chunghwa Telecom Co., Ltd. was calculated based on the consolidated net assets value of Chunghwa Telecom Co., Ltd.

Note 4:

Chunghwa Precision Test Tech. Co., Ltd. and its subsidiaries were calculated based on the consolidated net assets value of Chunghwa Precision Test Tech. Co., Ltd.

Note 5:

CHIEF Telecom Inc. and its subsidiaries were calculated based on the consolidated net assets value of CHIEF Telecom Inc.

Note 6:

Chunghwa Telecom (China) Co., Ltd., a reinvestment through Chunghwa Hsingta Co., Ltd., completed its liquidation in October 2022.

Note 7:

Jiangsu Zhenhua Information Technology Company, LLC., a reinvestment through Chunghwa Hsingta Co., Ltd., completed its liquidation in December 2018.

Note 8:

Shanghai Taihua Electronic Technology Limited and Su Zhou Precision Test Tech. Ltd. were reinvestments through Chunghwa Precision Test Tech. International, Ltd.

Note 9:

The amount was eliminated upon consolidation.

- 86 -

TABLE 7

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS

SIX MONTHS ENDED JUNE 30, 2024

(Amounts in Thousands of New Taiwan Dollars)


Year	No. (Note 1)		Company Name	Related Party	Nature of Relationship (Note 2)	Transaction Details
Year	No. (Note 1)		Company Name	Related Party	Nature of Relationship (Note 2)	Financial Statement Account	Amount (Note 5)		Payment Terms (Note 3)		% to Total Sales or Assets (Note 4)
2024		0	Chunghwa Telecom Co., Ltd.	Senao International Co., Ltd.	a	Accounts receivable	$	217,546		—		—
						Accounts payable		1,047,073		—		—
						Amounts collected for others		137,091		—		—
						Revenues		2,007,763		—		2
						Operating costs and expenses		813,295		—		1
				CHIEF Telecom Inc.	a	Revenues		251,271		—		—
				Chunghwa System Integration Co., Ltd.	a	Accounts payable		266,349		—		—
						Operating costs and expenses		429,316		—		—
						Property, plant and equipment		198,923		—		—
				Donghwa Telecom Co., Ltd.	a	Accounts payable		170,071		—		—
						Operating costs and expenses		292,706		—		—
				Honghwa International Co., Ltd.	a	Accounts payable		1,012,441		—		—
						Revenues		104,401		—		—
						Operating costs and expenses		3,464,780		—		3
				CHT Security Co., Ltd.	a	Operating costs and expenses		114,098		—		—
				International Integrated Systems, Inc.	a	Operating costs and expenses		305,254		—		—
				Chunghwa Telecom Singapore Pte., Ltd.	a	Accounts payable		217,427		—		—
						Operating costs and expenses		143,688		—		—
				Chunghwa Telecom Global, Ltd.	a	Accounts receivable		100,408		—		—
						Operating costs and expenses		150,648		—		—

Note 1:

Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as follows:

“0” for the Company.

Subsidiaries are numbered from “1”.

Note 2:

Related party transactions are divided into three categories as follows:

The Company to subsidiaries.

Subsidiaries to the Company.

Subsidiaries to subsidiaries.

Note 3:

Transaction terms with the related parties were determined in accordance with mutual agreements when there were no similar transactions with third parties. Other transactions with related parties were not significantly different from those with third parties.

Note 4:

For assets and liabilities, amount is shown as a percentage to consolidated total assets as of June 30, 2024, while revenues, costs and expenses are shown as a percentage to consolidated revenues for the six months ended June 30, 2024.

Note 5:

The amount was eliminated upon consolidation.

- 87 -

TABLE 8

CHUNGHWA TELECOM CO., LTD.

INFORMATION OF MAJOR STOCKHOLDERS

JUNE 30, 2024


Name of Major Stockholders	Shares
Name of Major Stockholders	Number of Shares		Percentage of Ownership (%)
Ministry of Transportation and Communications		2,737,718,976		35.29

Note:

This table presents information provided by the Taiwan Depository & Clearing Corporation on stockholders holding greater than 5% of Chunghwa’s dematerialized securities that have completed the process of registration and delivery by book-entry transfer as of the last business day for the current quarter.

- 88 -

Exhibit 99.3

Chunghwa Telecom Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the

Six Months Ended June 30, 2024 and 2023

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Millions of New Taiwan Dollars)


	June 30, 2024 (Unaudited)				December 31, 2023 (Audited)				June 30, 2023 (Unaudited)
ASSETS	Amount		%		Amount		%		Amount		%
CURRENT ASSETS
Cash and cash equivalents	$	37,712		7	$	33,824		6	$	49,754		9
Financial assets at fair value through profit or loss		1		—		1		—		4		—
Hedging financial assets		—		—		—		—		10		—
Contract assets		7,495		2		6,713		1		6,710		1
Trade notes and accounts receivable, net		23,631		4		24,842		5		21,996		4
Receivables from related parties		86		—		78		—		101		—
Inventories		11,072		2		11,521		2		10,773		2
Prepayments		6,370		1		2,840		1		5,402		2
Other current monetary assets		32,417		6		20,352		4		18,634		3
Incremental costs of obtaining contracts		282		—		211		—		—		—
Other current assets		3,809		1		2,822		1		3,682		1

Total current assets		122,875		23		103,204		20		117,066		22

NONCURRENT ASSETS
Financial assets at fair value through profit or loss		1,072		—		1,036		—		1,028		—
Financial assets at fair value through other comprehensive income		4,966		1		4,412		1		3,928		1
Investments accounted for using equity method		8,211		2		8,252		2		6,892		1
Contract assets		4,166		1		3,769		1		3,414		1
Property, plant and equipment		284,970		53		292,338		56		287,487		54
Right-of-use assets		11,130		2		11,238		2		11,160		2
Investment properties		11,506		2		9,805		2		10,158		2
Intangible assets		69,489		13		72,727		14		75,902		14
Deferred income tax assets		2,063		—		2,099		—		2,139		—
Incremental costs of obtaining contracts		1,060		—		939		—		950		—
Net defined benefit assets		6,278		1		5,963		1		5,579		1
Prepayments		3,895		1		3,330		—		2,750		1
Other noncurrent assets		4,572		1		4,629		1		4,380		1

Total noncurrent assets		413,378		77		420,537		80		415,767		78

TOTAL	$	536,253		100	$	523,741		100	$	532,833		100


	June 30, 2024 (Unaudited)				December 31, 2023 (Audited)				June 30, 2023 (Unaudited)
LIABILITIES AND EQUITY	Amount		%		Amount		%		Amount		%
CURRENT LIABILITIES
Short-term loans	$	365		—	$	585		—	$	654		—
Financial liabilities at fair value through profit or loss		—		—		—		—		—		—
Hedging financial liabilities		—		—		—		—		—		—
Contract liabilities		15,219		3		14,088		3		12,763		2
Trade notes and accounts payable		9,827		2		14,396		3		10,519		2
Payables to related parties		226		—		385		—		266		—
Current tax liabilities		5,773		1		6,613		1		6,171		1
Lease liabilities		3,562		1		3,505		1		3,330		1
Dividends Payable		36,910		7		—		—		36,476		7
Other payables		22,467		4		25,257		5		22,349		5
Provisions		317		—		337		—		224		—
Current portion of long-term loans		1,600		—		1,600		—		—		—
Other current liabilities		978		—		984		—		894		—

Total current liabilities		97,244		18		67,750		13		93,646		18

NONCURRENT LIABILITIES
Long-term loans		—		—		—		—		1,600		—
Bonds payable		30,486		6		30,483		6		30,480		6
Contract liabilities		7,725		2		7,560		2		7,589		2
Deferred income taxes liabilities		2,573		1		2,461		1		2,368		—
Provisions		498		—		485		—		474		—
Lease liabilities		7,452		1		7,470		1		7,327		2
Customers’ deposits		5,137		1		5,309		1		5,069		1
Net defined benefit liabilities		2,138		—		2,098		—		2,272		—
Other noncurrent liabilities		6,916		1		7,406		1		6,483		1

Total noncurrent liabilities		62,925		12		63,272		12		63,662		12

Total liabilities		160,169		30		131,022		25		157,308		30

EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT
Common stocks		77,574		14		77,574		15		77,574		15

Additional paid-in capital		149,828		28		149,828		29		149,845		27

Retained earnings
Legal reserve		77,574		14		77,574		15		77,574		15
Special reserve		2,676		—		2,899		—		2,899		1
Unappropriated earnings		55,589		11		72,059		14		55,509		10

Total retained earnings		135,839		25		152,532		29		135,982		26

Others		722		—		353		—		218		—

Total equity attributable to stockholders of the parent		363,963		67		380,287		73		363,619		68
NONCONTROLLING INTERESTS		12,121		3		12,432		2		11,906		2

Total equity		376,084		70		392,719		75		375,525		70

TOTAL	$	536,253		100	$	523,741		100	$	532,833		100

- 1 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Millions of New Taiwan Dollars, Except Earnings Per Share)

(Unaudited)


	Three Months Ended June 30											Six Months Ended June 30
	2024						2023					2024					2023
	Amount			%			Amount			%		Amount			%		Amount			%
REVENUES	$	54,116			100		$	53,463			100	$	109,059			100	$	107,674			100
OPERATING COSTS		33,286			62			33,076			62		67,740			62		66,706			62

GROSS PROFIT		20,830			38			20,387			38		41,319			38		40,968			38

OPERATING EXPENSES
Marketing		6,191			11			5,604			10		12,122			11		11,276			10
General and administrative		1,680			3			1,631			3		3,317			3		3,288			3
Research and development		1,005			2			923			2		1,948			2		1,901			2
Expected credit loss (reversal of credit loss)		24			—			(29	)		—		80			—		71			—

Total operating expenses		8,900			16			8,129			15		17,467			16		16,536			15

OTHER INCOME AND EXPENSES		(4	)		—			2			—		(1	)		—		2			—

INCOME FROM OPERATIONS		11,926			22			12,260			23		23,851			22		24,434			23

NON-OPERATING INCOME AND EXPENSES
Interest income		239			—			201			—		395			1		319			—
Other income		287			1			204			—		325			—		249			—
Other gains and losses		(48	)		—			(49	)		—		(33	)		—		(153	)		—
Interest expenses		(83	)		—			(77	)		—		(166	)		—		(153	)		—
Share of profits of associates and joint ventures accounted for using equity method		24			—			139			—		37			—		236			—

Total non-operating income and expenses		419			1			418			—		558			1		498			—

INCOME BEFORE INCOME TAX		12,345			23			12,678			23		24,409			23		24,932			23
INCOME TAX EXPENSE		843			2			1,008			1		3,657			3		3,840			3

NET INCOME		11,502			21			11,670			22		20,752			20		21,092			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 comprehensive income		(386	)		(1	)		(112	)		—		241			—		437			—
Gain or loss on hedging instruments subject to basis adjustment		—			—			9			—		—			—		(3	)		—
Share of other comprehensive income (loss) of associates and joint ventures		1			—			(2	)		—		1			—		8			—

		(385	)		(1	)		(105	)		—		242					442			—

(Continued)

- 2 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

(Unaudited)


	Three Months Ended June 30											Six Months Ended June 30
	2024						2023					2024				2023
	Amount			%			Amount			%		Amount		%		Amount		%
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations	$	33			—		$	54			—	$	137		—	$	7		—
Share of other comprehensive income of associates and joint ventures		(3	)		—			3			—		22		—		2		—

		30			—			57			—		159		—		9		—

Total other comprehensive income (loss), net of income tax		(355	)		(1	)		(48	)		—		401		—		451		—

TOTAL COMPREHENSIVE INCOME	$	11,147			20		$	11,622			22	$	21,153		20	$	21,543		20

NET INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	11,207			20		$	11,352			21	$	20,217		20	$	20,522		19
Noncontrolling interests		295			1			318			1		535		—		570		1

	$	11,502			21		$	11,670			22	$	20,752		20	$	21,092		20

COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	10,848			19		$	11,303			21	$	20,586		19	$	20,973		19
Noncontrolling interests		299			1			319			1		567		1		570		1

	$	11,147			20		$	11,622			22	$	21,153		20	$	21,543		20

EARNINGS PER SHARE
Basic	$	1.45					$	1.46				$	2.61			$	2.64

Diluted	$	1.44					$	1.46				$	2.60			$	2.64

(Concluded)

- 3 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Millions of New Taiwan Dollars)

(Unaudited)


	Equity Attributable to Stockholders of the Parent
																Others
																Exchange
																Differences
																Arising			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, 2023	$	77,574	$	149,844	$	77,574	$	3,084		$	71,268		$	151,926		$	(111	)	$	(125	)	$	13		$	(223	)	$	379,121		$	12,408		$	391,529
Appropriation of 2022 earnings
Special reserve		—		—		—		(185	)		185			—			—			—			—			—			—			—			—
Cash dividends recognized by Chunghwa		—		—		—		—			(36,476	)		(36,476	)		—			—			—			—			(36,476	)		—			(36,476	)
Cash dividends recognized by subsidiaries		—		—		—		—			—			—			—			—			—			—			—			(1,092	)		(1,092	)
Net income for the six months ended June 30, 2023		—		—		—		—			20,522			20,522			—			—			—			—			20,522			570			21,092
Other comprehensive income (loss) for the six months ended June 30, 2023		—		—		—		—			10			10			8			436			(3	)		441			451			—			451

Total comprehensive income (loss) for the six months ended June 30, 2023		—		—		—		—			20,532			20,532			8			436			(3	)		441			20,973			570			21,543

Share-based payment transactions of subsidiaries		—		1		—		—			—			—			—			—			—			—			1			20			21

BALANCE, JUNE 30, 2023	$	77,574	$	149,845	$	77,574	$	2,899		$	55,509		$	135,982		$	(103	)	$	311		$	10		$	218		$	363,619		$	11,906		$	375,525

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

Share-based payment transactions 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

- 4 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)


	Six Months Ended June 30
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$	24,409		$	24,932
Adjustments to reconcile income before income tax to net cash provided by operating activities:
Depreciation		16,450			16,456
Amortization		3,345			3,354
Amortization of incremental costs of obtaining contracts		437			428
Expected credit loss		80			71
Interest expense		166			153
Interest income		(395	)		(319	)
Dividend income		(235	)		(162	)
Compensation cost of share-based payment transactions		4			5
Share of profits of associates and joint ventures accounted for using equity method		(37	)		(236	)
Loss (gain) on disposal of property, plant and equipment		1			(2	)
Gain on disposal of financial instruments		(1	)		—
Gain on disposal of investments accounted for using equity method		(61	)		—
Provision for impairment loss and obsolescence of inventory (reversal of impairment loss)		36			(9	)
Valuation loss on financial assets and liabilities at fair value through profit or loss, net		72			88
Others		34			15
Changes in operating assets and liabilities:
Decrease (increase) in:
Contract assets		(1,181	)		(932	)
Trade notes and accounts receivable		1,126			2,595
Receivables from related parties		(8	)		(26	)
Inventories		413			552
Prepayments		(3,405	)		(3,009	)
Other current monetary assets		(71	)		(476	)
Other current assets		(987	)		(127	)
Incremental cost of obtaining contracts		(629	)		(398	)
Increase (decrease) in:
Contract liabilities		1,296			(712	)
Trade notes and accounts payable		(4,569	)		(5,910	)
Payables to related parties		(159	)		(273	)
Other payables		(2,127	)		(2,794	)
Provisions		(7	)		299
Other current liabilities		(4	)		(104	)
Net defined benefit plans		(275	)		(326	)

Cash generated from operations		33,718			33,133

(Continued)

- 5 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)


	Six Months Ended June 30
	2024			2023
Interests paid	$	(138	)	$	(125	)
Income taxes paid		(4,349	)		(4,543	)

Net cash provided by operating activities		29,231			28,465

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income		(313	)		—
Proceeds from capital reduction of financial assets at fair value through other comprehensive income		3			—
Acquisition of financial assets at fair value through profit or loss		(112	)		(115	)
Proceeds from disposal of financial assets at fair value through profit or loss		5			—
Proceeds from capital reduction and profit distribution of financial assets at fair value through profit or loss		—			19
Acquisition of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		(47,078	)		(28,442	)
Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		35,505			14,406
Acquisition of investments accounted for using equity method		(112	)		—
Acquisition of property, plant and equipment		(10,250	)		(11,774	)
Proceeds from disposal of property, plant and equipment		8			13
Acquisition of intangible assets		(102	)		(68	)
Acquisition of investment properties		—			(48	)
Decrease in other noncurrent assets		55			331
Increase in prepayments for leases		(690	)		(1,017	)
Interests received		381			282
Dividends received		153			9

Net cash used in investing activities		(22,547	)		(26,404	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans		540			1,975
Repayments of short-term loans		(760	)		(2,043	)
Decrease in customers’ deposits		(173	)		(104	)
Payments for the principal of lease liabilities		(1,941	)		(2,084	)
Decrease in other noncurrent liabilities		(490	)		(243	)
Cash dividends distributed to noncontrolling interests		(4	)		(6	)
Change in other noncontrolling interests		14			16

Net cash used in financing activities		(2,814	)		(2,489	)

(Continued)

- 6 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)


	Six Months Ended June 30
	2024		2023
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	$	18	$	(11	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		3,888		(439	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		33,824		50,193

CASH AND CASH EQUIVALENTS, END OF PERIOD	$	37,712	$	49,754

(Concluded)

- 7 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NOTE TO CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 and 2023

(Unaudited)

STATEMENT OF COMPLIANCE

The Company has prepared its consolidated balance sheets as of June 30, 2024 and 2023, the related consolidated statements of comprehensive income for the three months ended June 30, 2024 and 2023, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the six months ended June 30, 2024 and 2023 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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