Chunghwa Telecom (NYSE: CHT) maps 2045 net-zero and RE100 path

Rhea-AI Filing Summary

Chunghwa Telecom furnishes a detailed 2025 sustainability-related financial report, its first aligned with IFRS S1 and IFRS S2. The company targets net-zero emissions by 2045, 100% renewable energy use by 2040, and full electrification of engineering and official vehicles by 2030.

Science Based Targets include a 50% cut in combined Scope 1 and 2 emissions from a 2020 base and 25% Scope 3 reduction from 2021 by 2030. In 2025, climate resilience products generated about NT$20.009 billion of revenue, while energy-efficiency projects reduced electricity use by 44.3 million kWh and cut power costs by about NT$186 million despite higher renewable energy expenses and decarbonization capex.

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 February 26, 2026

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		Sustainability-Related Financial Information 2025
99.2		Parent Only Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors’ Report pursuant to International Financial Reporting Standards adopted by ROC (“Taiwan-IFRSs”)
99.3		Consolidated Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors’ Report pursuant to International Financial Reporting Standards adopted by ROC (“Taiwan-IFRSs”)

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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: February 26, 2026

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

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Exhibit 99.1

Chunghwa Telecom Co., Ltd.

Sustainability-Related Financial Information 2025

Aligned with IFRS Sustainability Disclosure Standards: IFRS S1 & IFRS S2

(This translated document is prepared in accordance with the Chinese version and is for reference only. In the event of any inconsistency between the English version and the Chinese version, the Chinese version shall prevail.)

1.		Introduction							3
		1.1 Company Introduction							3
		1.2 Reporting Entity							3
		1.3 Statement of Compliance							3
		1.4 Date and Procedures for Approval of the Sustainability Information Section							3
		1.5 Application of Exemptions							4
2.		Governance							4
		2.1 Role of the Governing Body in Overseeing Sustainability-Related Risks and Opportunities							4
		2.1.1 Governance Structure for Sustainability-Related Risks and Opportunities							4
		2.1.2 Development of Skills and Expertise Related to Sustainability-Related Risks and Opportunities							6
		2.1.3 Trade-Offs in Policies Related to Sustainability-Related Risks and Opportunities							7
		2.1.4 Target Setting for Sustainability-Related Risks and Opportunities, and Linkage to Performance and Remuneration Policies							7
3.		Strategies							8
		3.1 Sustainability-Related Risks and Opportunities							8
		3.1.1 Time Horizons: Definitions and Linkage to Strategic Planning Timelines							9
		3.1.2 Sustainability-related Risks and Opportunities Reasonably Expected to Affect the Company’s Outlook, and Their Potential   Impacts on the Business Model and Value Chain							10
		3.2 Impacts of Sustainability-Related Risks and Opportunities on Strategy and Decision-making							16
		3.2.1 Sustainability Plan and Climate Transition Plan							16
		3.2.2 Financial Impact of Sustainability-Related Risks and Opportunities							23
		3.3 Resilience Assessment							27
		3.3.1 Climate-Related Scenario Analysis and Assessment							27
		3.3.2 Resilience Assessment for Non-Climate Sustainability-related Risks							32
4.		Risk Management							32
		4.1 Processes and Policies for Identifying, Assessing, Prioritizing, and Monitoring Sustainability-Related Risks							32
		4.1.1 Input Data Sources and Parameters for Sustainability-Related Risks and Opportunities							33
		4.1.2 Assessment Methods for the Nature, Likelihood, and Impact of Sustainability-Related Risks and Opportunities							33
		4.1.3 Prioritization of Sustainability-Related Risks and Opportunities and the Methodology							34
		4.1.4 Mechanisms for Monitoring Sustainability-Related Risks and Opportunities							34
5.		Metrics & Targets							35
		5.1 Disclosure of Established Sustainability-Related Metrics and Targets							35
		5.1.1 Greenhouse Gas–related Targets and Metrics							38
		5.1.2 Cross-Industry Climate-Related Indicators							45
		5.1.3 Internal Carbon Pricing							46
		5.1.4 Remuneration							46
		5.2 Information Relevant to Industry-Based Metrics							47

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1. Introduction

1.1 Company Introduction

Chunghwa Telecom Co., Ltd. (hereinafter referred to as “Chunghwa Telecom”) is the largest integrated telecommunications operator in Taiwan. Its core business encompasses fixed-line communications, mobile communications, broadband access, and internet services. Leveraging technological capabilities in big data, cybersecurity, cloud computing, and network data center, the Company provides ICT services to enterprise customers. It also develops emerging technology solutions such as the Internet of Things (IoT) and artificial intelligence (AI), creating a high-quality communications environment and an exciting and convenient digital lifestyle for customers. In addition, Chunghwa Telecom actively strengthens its strategic partnerships with international telecommunications operators to advance its global presence.

1.2 Reporting Entity

The reporting entity covered in this dedicated section on sustainability-related financial information (hereinafter referred to as “the Group”) is consistent with that presented in the Group’s consolidated financial statements for the reporting period ended December 31, 2025.

1.3 Statement of Compliance

The Group has prepared this report in accordance with the Regulations Governing Information to be Published in Annual Reports of Public Companies and the IFRS Sustainability Disclosure Standards recognized by the Financial Supervisory Commission. Fiscal year 2025 marks the first year in which the Group applies the IFRS Sustainability Disclosure Standards.

1.4 Date and Procedures for Approval of the Sustainability Information Section

This Sustainability-Related Financial Information Section (hereinafter referred to as “this Section”) was approved and released by the Board of Directors on February 26, 2026.

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1.5 Application of Exemptions

The exemptions applied by the Group for the current year in accordance with the transitional provisions and other provisions under the IFRS Sustainability Disclosure Standards are summarized in the table below:

Exemption Items		Description		Corresponding Paragraphs under the IFRS Sustainability Disclosure Standards
Comparative Information		Entities are not required to disclose comparative information (including information related to climate-related risks and opportunities) in the first annual reporting period in which IFRS S1 is applied.		IFRS S1.E3& E6(a), IFRS S2.C3
Commercially Sensitive Information		Commercially sensitive information related to sustainability-related opportunities may be omitted when the conditions specified in paragraph B35 of IFRS S1 are met.		IFRS S1.B34-B36
Use of Global Warming Potential (GWP) values other than those provided in the latest IPCC Assessment Report.		In accordance with the “Greenhouse Gas Emissions Inventory and Reporting Guidelines (2024 Edition)” issued by the Ministry of Environment, the GWP values from the IPCC Fifth Assessment Report (AR5), as specified in Appendix 1 of the Guidelines, shall be applied when calculating greenhouse gas (GHG) emissions.		IFRS S2.B21-B22

2. Governance

2.1 Role of the Governing Body in Overseeing Sustainability-Related Risks and Opportunities

The Board of Directors serves as the highest governing body, responsible for the governance and oversight of sustainability- and climate-related matters. The Board conducts regular supervision of sustainability- and climate-related issues and, through its functional committees at the board level, ensures that sustainability- and climate-related affairs receive adequate attention and management.

2.1.1 Governance Structure for Sustainability-Related Risks and Opportunities

The Board of Directors and its functional committees provide the highest level of guidance in addressing risks and seizing opportunities across various dimensions of sustainability- and climate-related matters. The detailed responsibilities of the Board and senior management are described as follows:

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		Board of Directors of Chunghwa Telecom: • Holds meetings on a quarterly basis. • Oversees the overall sustainability and climate governance strategies and mechanisms, formulates major decisions and sets the vision, and regularly reviews the effectiveness of the implementation of sustainability and climate strategies.
Board-Level		Sustainable Development and Strategy Committee: • Holds meetings at least twice a year. • Aims to enhance the effectiveness of the Board of Directors by convening discussions on key corporate development matters, with meeting conclusions submitted to the Board for approval when necessary. Key topics include, but are not limited to: establishing sustainability policies and management guidelines, setting medium- to long-term development goals and strategies, major investments and mergers & acquisitions, significant organizational adjustments, acquisition or surrender of business licenses, preparation and revision of annual operational plans and budgets, and changes in capital. Risk Management Committee: • Holds meetings at least twice a year. • Integrates sustainability- and climate-related risks into the Enterprise Risk Management (ERM) system and internal risk management framework for oversight. Audit Committee: • Holds meetings on a quarterly basis. • Oversees the proper presentation of the financial statements, the effective implementation of internal controls over overall operations (including sustainability-related activities), the Company’s risk management mechanisms, and compliance with applicable laws and regulations, and reviews the Chief Audit Executive’s report and recommendations on the effectiveness of the Company’s internal control implementation. Compensation Committee: • Holds meetings at least twice a year. • Establishes and regularly reviews the policies, systems, standards, and structures for the performance evaluation and remuneration of directors and executives, linking the assessment results of sustainability- and climate-related target achievements to compensation. For detailed mechanisms, please refer to ‘‘2.1.4 Target Setting for Sustainability-Related Risks and Opportunities, and Linkage to Performance and Remuneration Policies’’ for further information. Nomination Committee: • Holds meetings at least once a year. • Establishes standards for board diversity and independence, nominates and reviews director candidates; regularly evaluates the performance of the Board and its functional committees; formulates and recommends continuing education programs for directors; and reviews proposed amendments to the Company’s Corporate Governance Code and the Board Performance Evaluation Regulations.

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Management-Level           Sustainable Development Promotion Committee: • The Chairman and the President serve as the Chair and Deputy Chair of the Committee, respectively, responsible for driving the formulation, review, and oversight of sustainability strategies, policies, and targets, as well as the supervision of annual ESG performance outcomes. The Committee reports key sustainability issues to the Sustainable Development and Strategy Committee, and provides quarterly updates to the Board of Directors on major sustainability progress and target achievement status. • The Committee has established four subgroups corresponding to the Environmental, Social 1, Social 2, and Governance dimensions, each supervised by an Executive Vice President from the headquarters. Each subgroup convenes a monthly meeting to oversee progress. A cross-functional quarterly meeting is held, presided over by the President, to supervise ESG-related sustainability planning, stakeholder engagement, and the execution outcomes of action plans across all dimensions.   Risk Management Steering Committee: • The President serves as the Chairperson, leading the Committee in reviewing, overseeing, and formulating the Company’s enterprise risk management (ERM) policies and mechanisms, as well as planning risk management training programs to enhance overall risk awareness and organizational culture. The Committee provides regular reports to the Risk Management Committee and the Board of Directors. • The Committee has established a dedicated Risk Management Execution Unit responsible for carrying out day-to-day risk management activities, consolidating and regularly reporting the Company’s ERM implementation status. Currently, quarterly meetings are convened with the participation of relevant departments to ensure continuous enhancement and effective execution of risk management operations.

2.1.2 Development of Skills and Expertise Related to Sustainability-Related Risks and Opportunities

Of the 13 directors on the current Board, 9 possess professional expertise in ESG-related matters, while 8 have relevant experience in risk management, with several directors holding expertise in both areas. The distribution of the aforementioned competencies is presented in the table below:

Directors Name		Sustainability (including Climate Change)–Related Competencies
		Sustainable Development (ESG)		Audit / Risk Management		Climate Change
Chih-Cheng Chien		◎		◎		◎
Rong-Shy Lin		◎		◎		◎
Sheng-Yuan Wu		◎		◎		«
Ching-Hwi Lee		«				«
Chi-Hwa Chern		◎		◎		◎
Lee-Feng Chien		«
I-Jen Su				◎
Shiow-Long Horng		◎		«
Su-ming Lin		◎		◎		◎
Yi-Chin Tu		◎		◎		«
Ikujin Ko		◎		«
Ching-Feng Hsueh		«		«
Jer-Liang Yeh		◎		◎

« Indicates partial capability.

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To enhance the Board of Directors’ awareness and competencies regarding climate change issues, as well as their sensitivity to sustainability trends and green technology developments, the Group arranges annual training programs covering topics such as sustainability trends, sustainability- and climate-related risks, advancements in green technologies, and emerging domestic and international sustainability and climate regulatory trends. These programs support directors in strengthening their understanding of sustainability transitions and practical developments. During the reporting year, all 13 directors completed sustainability-related training, accumulating a total of 93 training hours.

2.1.3 Trade-Offs in Policies Related to Sustainability-Related Risks and Opportunities

In governing sustainability- and climate-related matters, various decision-making dimensions are taken into account and the perspectives of different stakeholders are considered to the greatest extent possible. The Board of Directors, in its oversight of corporate strategy, review of material transactions, and supervision of risk management processes and related policies, evaluates sustainability- and climate-related considerations as presented by the responsible units and carefully weighs the potential impacts of all relevant factors in its decision-making.

2.1.4 Target Setting for Sustainability-Related Risks and Opportunities, and Linkage to Performance and Remuneration Policies

The Group’s oversight of the target-setting process for sustainability-related risks and opportunities, as well as the monitoring of progress against such targets, is detailed in “2.1.1 Governance Structure for Sustainability-Related Risks and Opportunities”.

In addition, to foster sustainability and climate awareness and enhance response capabilities, the Group links the remuneration of directors and senior management at headquarters to corporate sustainability- and climate-related matters. This approach is designed to incentivize all employees to actively engage with sustainability and climate issues, strengthen the willingness to implement action plans, and ultimately enhance overall climate resilience, advancing the Group’s proactive transition toward a low-carbon and sustainable pathway.

Directors		To strengthen the alignment between directors’ performance and the Company’s sustainability vision, as well as its short-, medium-, and long-term strategic objectives, the Company has incorporated sustainability management and ESG-related issues into the evaluation dimensions set forth in the Regulations Governing the Performance Evaluation of the Board of Directors of Chunghwa Telecom Co., Ltd. The ESG evaluation dimension assesses directors’ understanding of sustainability-related matters, their ongoing oversight of the Company’s ESG performance, and the extent to which directors support and promote the Company’s sustainability initiatives. The evaluation results serve as an important reference for continuously enhancing board governance quality and overall operational effectiveness. In addition to conducting annual internal self-evaluations, the Board commissions external professional institutions or teams of experts and scholars to conduct independent evaluations every three years, thereby providing objective perspectives and professional insights.
Executives		The Company has established the Regulations of Performance Management for Senior Executives, and Related Incentive Issuance Ruler, and in alignment with the Group’s sustainability vision and strategy, has formally incorporated ESG indicators into its performance management framework. Senior executive compensation is explicitly linked to ESG performance. The relevant sustainability indicators include electricity consumption, renewable energy utilization, digital empowerment of small and medium-sized enterprises (SMEs), corporate governance, and international sustainability ratings. The ESG-linked weighting increased to 10% in 2022, thereby reinforcing accountability and incentivizing senior management to fully integrate ESG principles into day-to-day operations. The proportion will be progressively increased on an annual basis to reach 30% by 2025.

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3. Strategies

3.1 Sustainability-Related Risks and Opportunities

To identify sustainability-related risks and opportunities that could reasonably be expected to affect the Group’s development, the Group established, in 2024, a project task force for the implementation of the IFRS Sustainability Disclosure Standards. The task force operates under the supervision of the President, with joint leadership by the Senior Executive Vice President of Finance and the Senior Executive Vice President of Technology, to advance the disclosure of sustainability-related risks and opportunities.

In identifying sustainability-related risks and opportunities, the information used by the Group is based on reasonable and supportable data that can be obtained without incurring undue cost or effort as of the reporting date, including past events, current conditions, and forward-looking projections. This approach ensures that the primary users of general purpose financial reports can fully understand the impacts of such risks and opportunities on the Group’s development.

The significant judgments involved in the preparation of the Group’s sustainability-related financial disclosures follow the process set out in the table below:

Procedures		Description
Step 1 Consolidation of Group Sustainability-related Topics		Through ongoing operational activities and continuous engagement and communication with stakeholders, the Group identifies sustainability-related topics by integrating its sustainability development framework with global sustainability disclosure standards, thereby recognizing sustainability-related risks and opportunities. The primary bases and sources of analysis include: • Sustainability Management Framework: Incorporating the Group’s sustainability vision, development objectives, and historical material sustainability topics. • Standards and Frameworks: Including the Sustainability Accounting Standards Board (SASB) Standards, IFRS S2 Industry-based Implementation Guidance, GRI Standards, and TCFD. • Industry trends and benchmark cases from leading domestic and international peers. • Perspectives from internal and external experts, as well as sustainability issues prioritized by stakeholders.
Step 2 Identifying the Potential Impacts of Sustainability-related Risks and Opportunities on Current and Expected Financial Performance		The Group analyzes interactions with stakeholders, society, the economy, and the natural environment across the value chain to identify how sustainability-related positive and negative events may affect the Group’s business model and strategic direction. Furthermore, the Group assesses the extent to which these impacts may reasonably be expected to give rise to sustainability-related risks and opportunities in the short, medium, and long term, potentially influencing the Group’s cash flows, access to financing, and cost of capital.
Step 3 Establishing Sustainability-related Metrics and Targets		For material sustainability-related risks and opportunities, the Group establishes concrete management measures and sets short-, medium-, and long-term metrics and targets, accompanied by monitoring, evaluation, and tracking mechanisms.

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Furthermore, the Group implements a periodic issue-maintenance mechanism to ensure that, during each financial reporting period, any occurrence of significant events or substantial changes in circumstances is promptly identified and addressed. The Group has reassessed the scope of all relevant sustainability-related risks and opportunities across its operations and value chain.

3.1.1 Time Horizons: Definitions and Linkage to Strategic Planning Timelines

The Group classifies the time horizons within which sustainability-related risks and opportunities are expected to occur into short-term, medium-term, and long-term. The definitions are presented in the table below:

Period		Definition		Linkage to Strategic Decision-Making
Short- term		• Less than 1 year • 2026		In consideration of the Group’s planning cycles for sustainability-related decision-making, as well as relevant national policies and regulatory requirements, the time horizons are categorized into short-term, medium-term, and long-term.
Medium-term		• More than 1 year and up to 5 years • 2027 to 2031
Long- term		• More than 5 years • 2032 and afterwards

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3.1.2 Sustainability-related Risks and Opportunities Reasonably Expected to Affect the Company’s Outlook, and Their Potential Impacts on the Business Model and Value Chain

The sustainability-related risks and opportunities reasonably expected to affect the Group’s development—along with their potential impacts on the business model and value chain, as well as the anticipated time horizons—are summarized in the table below.

Sustainability-Related Risks and Opportunities

Current and Expected Impacts on the Business Model and Value Chain

Affected Positions within the Value Chain

Expected Time Horizon of Major Impacts

Type

Description

Upstream

The  Group

Downstream

Short-  term   (2026)

Medium - term  (2027–2031)

Long- term  (after 2032)

Sustainability-Related Opportunities

To meet the digital resilience requirements of government and corporate clients, the Group provides solutions encompassing network, system, and cybersecurity resilience

The telecommunications industry serves as the foundation of digital resilience across all sectors. Through investments in research and development, as well as in equipment procurement to enhance intellectual and manufactured capital, telecommunications companies can strengthen their financial capital while driving business growth and enhancing overall social and relationship capital through improved digital resilience.

Current Situation • Network Resilience: Key infrastructure network backup requirements from clients in maritime, remote island, and banking sectors are expected to increase revenue opportunities of CT- and ICT-related services for satellite communications. • System Resilience: In line with the national development plan to build a resilient Taiwan, and with regulatory relaxation in the financial sector allowing hybrid cloud deployment for backup and disaster recovery, demand for IDC and cloud services is expected to grow. Geopolitical factors also reinforce this trend. • Cybersecurity Resilience: In recent years, the resilience of digital communication infrastructure has become a national development priority. Demand from government and corporate clients for professional cybersecurity services and integrated cybersecurity hardware and software solutions is expected to increase. Expected Situation In response to business opportunities arising from the government’s five major trusted industries and next-generation communications initiatives, the Group will leverage diversified network, system, and cybersecurity resilience services to empower vertical industries and provide comprehensive resilience solutions covering networks, systems, and cybersecurity for government and corporate clients.

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Sustainability-Related Risks and Opportunities

Current and Expected Impacts on the Business Model and Value Chain

Affected Positions within the Value Chain

Expected Time Horizon of Major Impacts

Type

Description

Upstream

The  Group

Downstream

Short-  term   (2026)

Medium - term  (2027–2031)

Long- term  (after 2032)

Climate-Related Opportunities

Providing customers with products or services that enhance climate resilience.

As core infrastructure within the information and communications technology (ICT) industry, telecommunications services can expand business scope and enhance both financial capital and social and relationship capital through investments in intellectual and manufactured capital, including R&D and advanced equipment.

Current Situation By leveraging the Internet of Things (IoT) to enhance disaster early warning, energy management, and remote maintenance capabilities, the Group assists enterprises in addressing challenges posed by climate change. Promoting smart service applications for disaster prevention can expand business scope and increase operational revenue. Expected Situation • Deepen IoT smart applications to generate new revenue streams. • Through diversified business development, integrate technologies and resources, and strengthen collaboration with suppliers. Develop digital, communication, and smart solutions—including cloud computing, data processing, carbon reduction analytics, and low-carbon digital services—to help enterprise clients enhance climate resilience and operational stability.

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Sustainability-Related Risks and Opportunities

Current and Expected Impacts on the Business Model and Value Chain

Affected Positions within the Value Chain

Expected Time Horizon of Major Impacts

Type

Description

Upstream

The  Group

Downstream

Short-  term   (2026)

Medium - term  (2027–2031)

Long- term  (after 2032)

Climate-Related Opportunities

Energy efficiency improvements to reduce electricity consumption and associated carbon pricing costs

The telecommunications industry is characterized by substantial capital investment in energy-intensive equipment. By investing in energy-saving and high-energy-efficiency equipment manufacturing capital, companies can enhance energy efficiency and reduce electricity consumption, thereby strengthening financial capital and intellectual capital.

Current Situation The Group’s guideline focuses on reducing electricity cost and ensuring business stability: • In terms of operations, by implementing energy-efficient equipment and enhancing data center energy efficiency, the Group reduces electricity consumption and lowers long-term operational electricity costs. • In terms of business, through energy efficiency initiatives, the Group supports clients in reducing long-term electricity costs, enhancing operational efficiency, and thereby stabilizing business revenue. Expected Situation • Promote energy efficiency for base stations and retire outdated fixed-network equipment; develop energy consumption analysis and air-conditioning optimization technologies for cloud data centers, and implement centralized energy monitoring with anomaly detection. • Leverage information and communication technologies to manage EV charging stations, inspect solar photovoltaic modules, optimize green energy storage, and provide carbon footprint analysis solutions, assisting enterprises in adopting green energy applications and carbon management practices.

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Sustainability-Related Risks and Opportunities

Current and Expected Impacts on the Business Model and Value Chain

Affected Positions within the Value Chain

Expected Time Horizon of Major Impacts

Type

Description

Upstream

The  Group

Downstream

Short-  term   (2026)

Medium - term  (2027–2031)

Long- term  (after 2032)

Climate-Related Risks — Transition  Risks

Increased compliance costs in response to the government’s 2050 net-zero emissions policy

The telecommunications industry’s service operations rely heavily on electricity consumption and therefore generate substantial GHG emissions. In response to global net-zero decarbonization trends and relevant regulatory policies of regulatory authorities, telecommunications operators may be required to incur additional operating costs, expenses, or capital expenditures related to intellectual capital and manufactured capital investments.

Current Situation In response to the government’s 2050 net-zero emissions policy, the Group has proactively planned its decarbonization pathway and established a target to achieve net-zero emissions by 2045. Implementation actions—such as the replacement of energy-intensive equipment, deployment of energy management systems, procurement of renewable energy, and the purchase of carbon credits—are expected to increase compliance costs. Expected Situation In order to achieve 100% renewable energy usage by 2040 (RE100) and 100% electrification of engineering and corporate fleet vehicles by 2030 (EV100), higher long-term procurement costs are anticipated.

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Sustainability-Related Risks and Opportunities

Current and Expected Impacts on the Business Model and Value Chain

Affected Positions within the Value Chain

Expected Time Horizon of Major Impacts

Type

Description

Upstream

The  Group

Downstream

Short-  term   (2026)

Medium - term  (2027–2031)

Long- term  (after 2032)

Sustainability-Related Risks

Power and network disruptions and abnormal outages of critical information systems or cloud data center infrastructure caused by major natural disasters, external environmental changes, or multi-hazard events

Chunghwa Telecom owns extensive equipment and infrastructure classified as manufactured capital (including but not limited to base stations and data centers) and continuously utilizes such capital to provide essential telecommunications services to society. When exposed to significant external events (including but not limited to strong winds, heavy rainfall, and earthquakes), such manufactured capital may be impaired. These events may also adversely affect Chunghwa Telecom’s social capital, including customer relationships and brand reputation.

Current Situation •  Malfunctions of critical network equipment may disrupt voice and broadband internet services. •  Instability or operational failures in IDC and cloud data center facilities. •  Inability to resolve outages in critical information systems. These issues may result in shortfalls in operating revenue and require additional capital expenditures for restoration and reconstruction. Expected Situation Taiwan is located in a region highly susceptible to natural disasters, and various telecommunications network infrastructures are prone to damage. When large-scale disasters strike affected areas, communications services may be severely disrupted, leading to interruptions in customer communications and emergency reporting, and potentially creating “communication islands.” Such incidents would significantly impair disaster response efforts, endanger life and property, and result in substantial revenue losses for the Company.

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Sustainability-Related Risks and Opportunities

Current and Expected Impacts on the Business Model and Value Chain

Affected Positions within the Value Chain

Expected Time Horizon of Major Impacts

Type

Description

Upstream

The  Group

Downstream

Short-  term   (2026)

Medium - term  (2027–2031)

Long- term  (after 2032)

Sustainability-Related Risks

The occurrence of major cybersecurity incidents, leakage or improper use of personal data resulting in administrative penalties imposed by regulatory authorities or operational losses

During the provision of telecommunications services, operators inevitably process and access customer information, thereby accumulating substantial social and relationship capital. In the event of a cybersecurity incident or a cyberattack, the company may suffer reputational damage and regulatory penalties, which could negatively impact both its intellectual capital and its social and relationship capital.

Current Situation Due to hacker attacks, major cybersecurity incidents, personal data leakage or improper use may occur, potentially resulting in regulatory sanctions or operational losses, including: •  Shortfalls in operating revenue •  Administrative penalties imposed by government authorities •  Legal claims and compensation arising from litigation •  Customer remediation and compensation costs Expected Situation With cyberattacks and personal data breaches occurring frequently worldwide, a successful hacker attack could lead to service disruptions, theft of customers’ personal data or confidential information, and financial transaction issues. Such incidents would severely impact the Group’s reputation and result in significant financial losses.

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3.2 Impacts of Sustainability-Related Risks and Opportunities on Strategy and Decision-making

Based on the results of risk and opportunity identification, the Group considers aspects such as business operations, products and services, adaptation and mitigation activities, and R&D investments to formulate a sustainability vision, long-term strategies, and medium- to long-term targets that are appropriate for the Group’s business model.

3.2.1 Sustainability Plan and Climate Transition Plan

In 2023, the Group officially obtained verification of its GHG reduction targets under the Science Based Targets initiative (SBTi). The Group’s GHG reduction targets for 2030 are as follows: a 50% reduction in Scope 1 and Scope 2 emissions compared with the 2020 base year, and a 25% reduction in Scope 3 emissions compared with the 2021 base year. The Group is committed to achieving net-zero emissions by 2045, five years earlier than the 2050 target, in alignment with the global 1.5°C warming limit pathway outlined by the Intergovernmental Panel on Climate Change (IPCC).

The Group has developed a transition plan to address the aforementioned GHG reduction targets related to climate mitigation and adaptation, as well as the identified transition risks and associated opportunities. The specific actions are outlined as follows:

Specific Actions		Description and Progress of the Plan		Action Targets
Climate-Related Products and Services		During the initial implementation stage, existing systems are integrated and IoT security and data management mechanisms are strengthened to establish a robust technological foundation. These efforts are expected to enable predictive maintenance and real-time disaster response, further enhancing operational efficiency and service reliability while creating greater service value and competitive advantages.		• Continuously expand and enhance the scale of climate resilience–related services, products, and solutions, broaden customer adoption and application, and increase their contribution to overall revenue.
Technology-driven decarbonization in IDC data centers		1. Actively Introducing Advanced Technologies to Enhance Data Center Energy Efficiency: • Replaced outdated equipment with high-efficiency solutions, such as upgrading to magnetic levitation variable-speed chillers and ultra-high-efficiency pumps (IE3 or above). • Expanded deployment of proprietary AI-driven energy-saving technologies to optimize operations, stabilize rack temperatures, and enhance power efficiency. For AI data center construction, direct liquid cooling solutions using Coolant Distribution Units (CDUs) were implemented to dissipate 65% of heat from computing nodes, thereby improving system performance, increasing energy efficiency, and reducing PUE. 2. Through these initiatives, the IDC achieved a PUE of approximately 1.587 in 2025, meeting the annual target and improving from 1.61 in 2024.		• By 2030, the IDC data center aims to achieve a Power Usage Effectiveness (PUE) of below 1.5.

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Specific Actions		Description and Progress of the Plan		Action Targets
RE100		The Group joined the RE100 initiative in 2023, committing to achieve 100% renewable energy usage across all operations by 2040. In 2025, renewable energy procurement and self-generated power reached 88.679 million kWh (Note 1), including the following: • Solar PV and green base station construction: With a cumulative total of 171 installations, achieving a total installed capacity of 13.1MWp. • Renewable energy procurement: In 2025, an investment of hundreds of millions NTD was made to purchase renewable energy.		• By 2030, IDC data centers are targeted to use 100% renewable energy. • By 2040, all operational sites are expected to achieve 100% renewable energy usage.
EV100		The Group officially joined the EV100 initiative in 2024, committing to achieve 100% electrification of engineering and official vehicles by 2030: • By the end of 2025, replaced 386 engineering and official vehicles with electric vehicles.		• From 2024 to 2026, 30%–50% of engineering and official vehicles will be gradually replaced with electric vehicles. • By 2030, the Group aims to achieve full electrification of all engineering and official vehicles.
Replacement of Aging, Energy-Intensive Equipment		In 2025, the Group made an investment of hundreds of millions NTD to construct and procure energy-efficient equipment, including energy-saving measures for power systems, air conditioning, switching equipment, transmission equipment, access networks, and mobile devices. Compared to 2024, the replacement of outdated, energy-consuming equipment resulted in an overall electricity reduction of 44.3 million kWh (Note 1) and cost savings of approximately NT$ 186 million (based on an average rate of NT$4.19 per kWh).		• Introduction and testing of energy-saving technologies and next-generation hardware (antennas and baseband modules) to compare energy-saving performance with previous equipment, and to develop optimal solutions that balance power efficiency, recovery time, and user experience.

Note 1: Regarding the electricity consumption data for 2025, where certain activity data could not be obtained due to data availability constraints, the Group applied reasonably obtainable and supportable information available as of the reporting date (including, where necessary, estimates based on prior-period data) to perform estimations. However, the emissions data derived from such estimations involve a high degree of uncertainty and may be subject to material revisions upon the availability of updated information in the subsequent year.

In advancing its net-zero transition strategy, the Group is required in the short term to allocate capital toward the replacement of energy-intensive equipment, the implementation of energy management and monitoring systems, and the expansion of renewable energy procurement. These initiatives are expected to drive an increase in capital expenditures and certain long-term procurement costs. However, the Group’s assessment indicates that such investments will enhance energy efficiency and reduce electricity consumption over the medium to long term, thereby lowering operating costs and mitigating the risk of rising carbon fees and other compliance-related expenditures under increasingly stringent regulatory requirements. At the same time, the Group is leveraging its capabilities to provide customers with climate resilience–enhancing services and products, assisting corporate clients in strengthening carbon emissions management and improving energy efficiency. In doing so, the Group transforms regulatory compliance–driven risk factors into scalable sources of revenue from low-carbon products and services, thereby reinforcing the resilience of its business model and supporting long-term value creation.

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To achieve the climate targets, the key assumptions, elements, and conditions involved in the formulation of the transition plan are as follows:

• Key Assumptions: Referring to the IEA NZE scenario, it is assumed that the global energy sector will achieve net-zero CO2 emissions by 2050 and will have deployed a broad portfolio of clean energy technologies.

• Elements: Assumptions include factors such as the cost of green electricity, maturity of carbon capture technologies, renewable energy market conditions, existing infrastructure, and government policies, which align with the Group’s transition strategies of “Technology-driven Decarbonization” and “Use of Renewable Energy.”

• Conditions: Under the SBTi (telecommunications sector) emission reduction plan, assuming the business model and value chain remain unchanged, the Group commits to achieving net-zero emissions by 2045, in line with the IPCC’s global 1.5°C warming limit pathway.

In addition, there are inherent limits to emission reductions within the value chain. According to the current guidance published by the Science Based Targets initiative (SBTi), once a company has achieved a substantial level of internal emissions reduction, it may pursue beyond-value-chain mitigation through the purchase of carbon credits. Such measures include forest carbon sequestration, high-quality carbon credits, carbon capture technologies, and initiatives to reduce forest degradation, thereby contributing to net-zero emissions. Accordingly, the Group participated in the first carbon credit procurement facilitated by the Taiwan Carbon Solution Exchange (TCSE) in 2023. Moving forward, the Group will continue to plan for and acquire high-quality carbon credits to honor its commitment to achieving net-zero emissions.

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For sustainability-related risks and opportunities beyond the scope of the transition plan, the Group provides the following information regarding the developed initiatives, including their progress:

Strategic Targets		Description and Progress of the Plan		Action Targets
Sustainability-Related Opportunities – Digital Resilience To meet the digital resilience requirements of government and corporate clients, the Group provides solutions encompassing network, system, and cybersecurity resilience		The Group is committed to assisting government and enterprise customers in building a sustainable operational environment and meeting their digital resilience needs. To serve as a solid backbone for digital transformation, the Group actively invests in the research, development, and deployment of digital resilience solutions, including: • Actively enhancing comprehensive network resilience through multi-orbit satellite communication services, constructing the Sea, Land, Satellite and Sky Network, and integrating LEO (Low Earth Orbit), MEO (Medium Earth Orbit) and GEO (Geostationary Earth Orbit) satellite technologies to provide stable, high-speed, and bandwidth-flexible satellite communication services, achieving a substantial improvement in network resilience.		The Group aspires to become a co-creator within the digital ecosystem by providing customers with comprehensive digital resilience solutions encompassing networks, systems, and cybersecurity. To this end, the Group has established the following product development objectives: • Network Resilience: Secure distribution rights for medium- and low-earth-orbit satellites, and integrate LEO, MEO, and GEO satellite services to deliver a broad portfolio of satellite communication solutions.
		• Providing CMCX multi-cloud direct connections, multi-route redundancy, and Tier 3 grade IDC data center subscription-based services that integrate both software and hardware, combined with data encryption and distribution, backup, system redundancy, DDoS protection, and telecom-grade high-speed network lines. These services help enterprises build a resilient cloud-network hybrid architecture, linking cloud and on-premises systems seamlessly. • Based on a Zero Trust architecture, the Group has independently developed the xTrust Zero Trust Network System, offering a one-stop “Cloud-Network-Endpoint Security” (CNE Security) solution that addresses the key concerns of performance, stability, and cybersecurity during cloud migration for government agencies and enterprises. The Group will continue investing in the development of digital resilience products and services, including identity management, enterprise cybersecurity, Zero Trust security, IDC data center construction, hybrid cloud and on-premises backup, cross-border cloud encrypted data-splitting backup mechanism, satellite spectrum deployment, and integrated satellite services.		• System Resilience: Promote hybrid cloud architectures, geo-redundancy mechanisms, and cross-border cloud encrypted data-splitting backup mechanism. • Cybersecurity Resilience: Develop Zero Trust services integrating identity authentication, device authentication, and intelligent data analytics; establish cloud-native security monitoring services (Cloud SOC) to enhance cybersecurity resilience. All related product development has been completed, and further efforts will focus on continuously enhancing product functionality and expanding adoption among enterprise clients. The Group aims for compound annual growth rate (CAGR) of 6~10% in revenue from “multi-dimensional network, system, and cybersecurity resilience services” from 2025 to 2030.

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Strategic Targets		Description and Progress of the Plan		Action Targets
Sustainability-Related Risk – Digital Resilience Power and network disruptions and abnormal outages of critical information systems or cloud data center infrastructure caused by major natural disasters, external environmental changes, or multi-hazard events		To strengthen disaster response mechanisms, the Company has established the Natural Disaster Protection Operational Procedures, the Natural Disaster Emergency Response and Repair Operational Guidelines, the Information Systems Disaster Emergency Response and Repair Operational Guidelines, and the Information and Communications System Business Continuity Management Guidelines. These procedures apply to major disasters, including natural disasters, fires, explosions, and terrorist attacks, which may cause severe damage to communication network equipment and information and communications systems, and are designed to ensure emergency communication response in affected areas. • Fixed-line Communications: To prevent the escalation of disaster-related damage, measures have been strengthened, including the deployment of multi-routing repeater transmission in remote areas, wireless routing backups, increased backup power capacity, and backups in both international and domestic submarine cable systems. These measures enhance overall disaster prevention and resilience capabilities. Annual drills for network and equipment scheduling and emergency repairs are conducted to improve proficiency in disaster response, thereby minimizing potential losses. Aging and end-of-support (EOS) equipment will continue to be replaced, new high-performance equipment introduced, microwave systems in mountainous and offshore areas expanded, international and domestic submarine cable systems enhanced, and multi-orbit satellite solutions deployed to further strengthen the resilience of critical infrastructure and overall backup capacity.		The Group has also established a Network Operations Center (NOC) and an ICT system quality monitoring mechanism to detect early signs of network or system performance degradation and anomalies, enabling proactive mitigation to reduce the occurrence of disruptions. In addition, the Group participates annually in exercises for National Critical Infrastructure (CI) and Critical Information Infrastructure (CII).
		• Mobile Communications: In the event of a disaster causing mobile communication disruptions, microwave-, satellite-, and mobile base station–based transmission alternatives are in place. These solutions can be rapidly deployed according to the conditions of the affected area to restore emergency communication with external networks in the shortest possible time. Mobile network quality and resilience solutions will continue to be enhanced, redundancy mechanisms established for critical equipment, backup power supply for key base stations strengthened, and the replacement of high-failure-rate and energy-intensive equipment prioritized to maintain mobile network quality and high service stability.

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Strategic Targets		Description and Progress of the Plan		Action Targets
		• Data Communications: Chunghwa Telecom’s HiNet network adopts multi-route architecture with a highly reliable network redundancy mechanism, enabling real-time monitoring and traffic load balancing across all routes. For international routing, traffic is distributed across multiple submarine cable systems to prevent congestion or outages caused by single-route failures. Additionally, collaboration with overseas carriers is undertaken to increase direct international interconnection bandwidth, thereby improving the quality and stability of international internet connectivity. The expansion of international internet bandwidth and diversification of submarine cable routes will remain key resource allocation priorities to enhance HiNet’s domestic backbone capacity and international connectivity.
		• Information Systems and Data Centers: To respond to natural disasters such as typhoons, heavy rainfall, earthquakes, landslides, and tsunamis, as well as major incidents including fires, explosions, terrorist attacks, or other significant catastrophes that may cause severe damage to information systems, equipment, or data centers, backup environments have been established and Business Continuity Management (BCM) levels are assessed based on business impact analysis to define recovery time objectives (RTOs) and recovery point objectives (RPOs). Business continuity plans have been developed, and regular backup drills are conducted to expedite the restoration of damaged equipment, shorten service interruption durations, and ensure the achievement of operational objectives. Inspections of aging equipment will continue, end-of-support (EOS) and end-of-life (EOL) equipment will be replaced, and cross-system and cross-organization joint BCM drills will be promoted to enhance system reliability and disaster resilience.

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Strategic Targets		Description and Progress of the Plan		Action Targets
Sustainability-Related Risks - Cybersecurity and Customer Privacy The occurrence of major cybersecurity incidents, leakage or improper use of personal data resulting in administrative penalties imposed by regulatory authorities		The Group places a high priority on cybersecurity and personal data protection. We have established the Cybersecurity Policy and the Privacy Policy in accordance with international standards and regulatory requirements. We have also developed a comprehensive cybersecurity governance framework and internal control system to ensure the overall cybersecurity defense and response capabilities of the Group and our subsidiaries, safeguarding operational and customer information security. • Current Situation: 1.  Establish an information security management system in line with international standards and implement the ISO 27701 Privacy Information Management System, in alignment with the national cybersecurity strategy. Conduct cybersecurity risk assessments, develop corresponding protective strategies, and implement various effective mitigation measures. 2.  Through technical measures aligned with ISO 27001 standards—such as access controls, transmission encryption, personal data pseudonymization, and de-identification in accordance with CNS 29100-2 standards—the Group ensures the security of customers’ personal data and privacy without infringing upon their rights. 3.  Clear requirements and penalties for information security and personal data protection are established for suppliers, and regular monitoring is conducted to ensure that suppliers handle and protect customer data strictly according to authorized procedures. • Expected Situation: 1.  The ISO 27701:2019 certification will be transitioned to ISO 27701:2025 within three years. 2.  Conduct cybersecurity training and drills to enhance employees’ security awareness and improve response efficiency during incidents. AI technologies are implemented for cybersecurity event detection to enhance early warning capabilities. 3.  Expand collaboration with external public and private sector entities is expanded to strengthen information sharing and joint cybersecurity defense, thereby improving the effectiveness of security measures and their societal impact.		The Group integrates cybersecurity and personal data protection into the core of ESG governance framework. It continuously assesses cybersecurity risks and corresponding protection strategies, and applies a tiered management approach based on the business characteristics of the parent company and its subsidiaries. In accordance with regulations and risk identification results, appropriate measures are implemented, including the establishment of Information Security and Privacy Information Management Systems (ISMS/PIMS), exposure assessment services (EASM), vulnerability scanning, penetration testing, cybersecurity health assessments, red team exercises, cybersecurity monitoring, social engineering drills, training programs, intelligence sharing and joint defense, internal and external audits, and third-party certifications. The Group plans to complete the transition of ISO 27701:2019 certification to ISO 27701:2025 by 2028, while continuously advancing and refining privacy protection management in line with GRI and SASB indicators.

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3.2.2 Financial Impact of Sustainability-Related Risks and Opportunities

Sustainability-Related Risks and Opportunities		Impact on Financial Position, Financial  Performance, and Cash Flows (Note 1)
Description		Current Reporting Period (Note 2)		Expected Financial Impact (Note 3)
Sustainability-Related Opportunities – Digital Resilience To meet the digital resilience requirements of government and corporate clients, the Group provides solutions encompassing network, system, and cybersecurity resilience.		“Network, Systems, and Cybersecurity Resilience Services” has become one of the Group’s primary revenue streams. To advance the research and development of technologies and products related to digital resilience, the Group has actively committed internal funds to drive the growth of related business segments.		Driven by government digital development initiatives and ESG-related green energy policies, enterprises continue to advance digital transformation. To meet the digital resilience demands of government and corporate clients, the Group provides “Network, Systems, and Cybersecurity Resilience Solutions” which have driven growth in satellite application services, IDC, cloud services, cybersecurity professional services, hardware and software integration services. The scale of revenue is projected to achieve a revenue compound annual growth rate (CAGR) of 6%-10% from 2025 to 2030. However, the related operating revenue and capital expenditure constitutes commercially sensitive information and therefore cannot be disclosed.
Climate-Related Opportunities – Climate Resilience Products and Services Providing customers with products or services that enhance climate resilience		By adopting innovative technologies and intelligent solutions, leveraging partnership models to increase operating revenue while providing products and services that enhance climate risk response capabilities, such as satellite communications, IDC, and cloud-based solutions. Revenue from these related products and services amounted to approximately NT$20.009 billion for the current year.		Through the development of digital, communication, and intelligent solutions—covering areas such as cloud computing, data processing, carbon-reduction analytics, and low-carbon digital services—the Group assists corporate and individual users in enhancing climate resilience as well as operational and livelihood stability, thereby driving industries and society toward a low-carbon transition and creating sustainable business opportunities and revenue growth. Using 2025 as the base year and applying an annual growth rate of 7.1%, the cumulative operating revenue from the related products and services for 2026 to 2028 is projected to reach approximately NT$ 68.96 billion. However, capital expenditures directly attributable to such operating revenue cannot be separately identified and therefore are not disclosed.

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Sustainability-Related Risks and Opportunities		Impact on Financial Position, Financial  Performance, and Cash Flows (Note 1)
Description		Current Reporting Period (Note 2)		Expected Financial Impact (Note 3)
Climate-Related Opportunities - Energy Energy efficiency improvements to reduce electricity consumption and associated carbon pricing costs		By integrating power and environmental monitoring with system development technologies, the Group actively promotes and implements optimization and improvement of office spaces, data centers, and base station infrastructure to reduce electricity consumption. Compared to 2024, total electricity consumption this year decreased by 44.3 million kWh, resulting in a reduction of approximately NT$186 million in electricity expense. (Note 4)		• Expected Financial Impact The Group places energy efficiency and low-carbon solutions at the core of its strategy, leveraging its ICT capabilities and talent advantages to systematically invest capital expenditures and resources in advancing its“Technology-Driven Energy Saving and Carbon Reduction” strategy. In 2026, operating costs and expenses, including electricity costs, are expected to decrease by approximately NT$201 million (Note 4). In practice, the financial impact of operating revenue arising from related business opportunities has been incorporated into the measurement and disclosure under“Climate-Related Opportunities — Climate Resilience Products and Services,” while the financial impact of capital expenditures required to implement the strategy has been incorporated into the measurement and disclosure under “Climate-Related Risks — Transition Risks.” • Medium to Long-term Impacts The Group’s medium to long-term energy efficiency and low-carbon initiatives include the in-house development of an intelligent Energy Operations Center (EOC) system to automatically collect and analyze electricity consumption data and to calibrate energy-saving performance in real time; the accelerated decommissioning of outdated, energy-intensive equipment; the continuous reduction of the average PUE of IDC data centers; and the promotion of IP migration for the public switched telephone network, etc. These actions are expected to structurally lower the unit cost of electricity, increase potential revenue, and reduce operating expenses. During the period from 2027 to 2040, the anticipated reduction in potential operating costs and expenses, including electricity expenses, is estimated at approximately NT$3.029 billion. In addition, the Group expects to avoid potential carbon fee charges of approximately NT$427 million during 2027 to 2030 (Note 5). However, the financial impact of operating revenue arising from related business opportunities has been incorporated into the measurement and disclosure under “Climate-Related Opportunities — Climate Resilience Products and Services,” while the financial impact of capital expenditures required to implement the strategy has been incorporated into the measurement and disclosure under “Climate-Related Risks — Transition Risks.”

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Sustainability-Related Risks and Opportunities		Impact on Financial Position, Financial  Performance, and Cash Flows (Note 1)
Description		Current Reporting Period (Note 2)		Expected Financial Impact (Note 3)
Climate-Related Risks - Transition Risks Increased compliance costs in response to the government’s 2050 net-zero emissions policy		In response to sustainability compliance requirements and the enhancement of operational resilience, the Group has completed the procurement of green electricity, the replacement of high energy-consumption equipment, and the implementation of a GHG inventory system. During the reporting year, the increase in the proportion of renewable energy resulted in an increase in operating costs and expenses of approximately NT$216 million (Note 6), while capital expenditures for equipment replacement amounted to approximately NT$2.57 billion. The Group continues to allocate hundreds of millions of NTD in ongoing investments, representing more than 3% of the financial impact (Note 7), toward renewable energy procurement costs and capital expenditures for equipment replacement to further deepen our strategic deployment and advancement of renewable energy.		The Group’s climate transition plan is implemented in alignment with the decarbonization pathways advocated by the SBTi. The primary strategies focus on two key pillars: technology-driven carbon reduction and renewable energy procurement. Taking into account the implementation progress of green electricity procurement and equipment upgrades, the potential impacts in the short term and the medium to long term are as follows: • Short-term Impact In accordance with the Group’s SBTi targets, the Group will progressively increase the proportion of renewable energy used and implement GHG inventory and management systems. Increase in operating costs and expenses: approximately NT$395 million, primarily attributable to the increased proportion of renewable energy usage (Note 6). Capital expenditures: approximately NT$2.239 billion, primarily for the replacement of outdated equipment. • Medium- to Long-term Impacts To achieve the SBTi-aligned decarbonization pathway, the Group will be required to further expand its procurement of renewable energy. As a result, operating expenses are expected to increase over the medium to long term. However, as the relevant green electricity procurement contracts are still under negotiation, the associated costs remain highly uncertain and therefore cannot be reliably disclosed at this stage.

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Sustainability-Related Risks and Opportunities		Impact on Financial Position, Financial  Performance, and Cash Flows (Note 1)
Description		Current Reporting Period (Note 2)		Expected Financial Impact (Note 3)
Sustainability-Related Risk – Digital Resilience Power and network disruptions and abnormal outages of critical information systems or cloud data center infrastructure caused by major natural disasters, external environmental changes, or multi-hazard events		A failure of critical network equipment, interruption of external power supply or abnormal power conditions, inability to resolve key information system issues, or data center inability to operate stably under abnormal power or environment conditions may cause major service interruptions, potentially affecting operating revenue and generating capital expenditures.		All core services are designed from the outset with built-in mechanisms such as geographically distributed and heterogeneous redundancy, multi-route architecture paths, system decentralization, and robust physical security controls, as well as being integrated with backup power sources such as uninterruptible power systems and generators to address external power interruptions or supply anomalies, thereby meeting the fundamental requirements for disaster and operational resilience. In the event of a large-scale disaster, the Group is able to restore essential service levels within the shortest possible timeframe, thereby preventing network-wide outages caused by the failure of a single device or a single power source. Accordingly, the financial impacts arising across various time horizons from incidents such as network disruptions, power outages, failures of critical information systems, or abnormalities in cloud data center infrastructure are expected to be significantly controlled and reduced going forward.
Sustainability-Related Risks - Cybersecurity and Customer Privacy The occurrence of major cybersecurity incidents, leakage or improper use of personal data resulting in administrative penalties imposed by regulatory authorities or operational losses		Due to hacker attacks, major cybersecurity incidents may occur, and the leakage or improper use of personal data may result in regulatory authorities or operational losses.		The Group adheres to applicable regulatory requirements and the principles of Information Security and Privacy Information Management Systems, such as ISO 27001, ISO 27701, and continuously reviews and refines its practices through the PDCA cycle, integrating them into daily operational activities. Accordingly, incidents such as personal data breaches or improper use of personal data are not expected to result in material financial impacts across the relevant time horizons.

Note 1: If the degree of measurement uncertainty involved in estimating the expected financial impacts of sustainability-related risks or opportunities is so high that certain quantitative information would not be useful, the Group provides qualitative disclosures only to assist primary users of general-purpose financial reports in understanding the relevant impacts.

Note 2: The assessment scope covers the impact of sustainability-related risks and opportunities on the Group’s financial position, financial performance, and cash flows for 2025. Based on the evaluation, the Group does not expect any of the sustainability-related risks or opportunities listed in the table above to pose a significant risk of material adjustments to the carrying amounts of assets and liabilities in the next annual financial statements.

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Note 3: The assessment scope includes the expected impacts of sustainability-related risks and opportunities on the Group’s short-, medium-, and long-term financial position, financial performance, cash flows, access to financing, and cost of capital.

Note 4: Calculated based on an average of NT$4.19 per kWh for gray electricity; Due to limitations in data availability, certain activity data relating to the Group’s total electricity consumption could not be obtained; therefore, estimates were made using reasonably available and supportable information as of the reporting date, including, where necessary, data from prior periods.

Note 5: For carbon fee estimation, key assumptions include annual implementation progress in line with the reduction pathway set out in the Group’s voluntary emissions reduction plan. Relevant parameters include the estimated annual GHG emissions of the Group and assumed future carbon fee rates to be announced by the regulatory authority, which are expected to increase in phases with reference to international carbon pricing practices and global assessment reports. Changes in these assumptions and estimation bases may result in material adjustments to the estimated carbon fee amounts.

Note 6: Calculated based on the expected annual volume of green electricity procurement and the price differential between green and conventional (grid) electricity. The projected annual green electricity procurement volume is aligned with the Group’s established GHG reduction pathway. Changes in the aforementioned assumptions and estimation bases may result in material adjustments to the estimated amounts.

Note 7: The financial impact of measures already implemented is calculated as a proportion of the Group’s consolidated profit before tax for 2025, in order to assess the relative impact of various climate-related risks and opportunities.

3.3 Resilience Assessment

3.3.1 Climate-Related Scenario Analysis and Assessment

In considering climate-related risks and opportunities, the Group conducts annual scenario analysis to assess climate resilience and evaluate the potential impacts on operations and the supply chain. These assessments help determine whether updates to the estimated effects of climate-related uncertainties are necessary and whether adjustments to operational strategies are required.

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3.3.1.1 Time Horizons Used in Climate-Related Scenario Analysis

To facilitate the use of scenario analysis in identifying the most relevant climate-related risks and opportunities and their associated financial impacts, the Group’s analyses adopt three-tiered time horizons linked to the strategic planning cycle. Short term: 2026; Medium term:2027-2031; Long term:2032 and thereafter. For further details, please refer to the disclosures in “3.1.1 Time Horizons: Definitions and Linkage to Strategic Planning Timelines”.

3.3.1.2 Scenario Analysis and Assessment of Strategy and Business Model

Type		Key Assumptions		Selected Scenarios		Time Horizon		Scope of Analysis		Assessment of Impacts and Resilience Capacity
Transition Risks / Carbon Pricing		1. Climate-related policies in the jurisdictions where the Company operates are formulated in accordance with the Government’s current policy framework. It is anticipated that the “2050 Net-Zero Emissions Pathway” will continue to be implemented. In addition, the Company will comply with the requirement set forth in Appendix I, “Designated Reduction Rates by Industry,” of the Designated GHG Emissions Reduction Goals for Entities Subject to Carbon Fees, which stipulates that GHG emissions for “other industries” in the year 2030 shall be reduced by 42% compared with the base year 2021.		IEA STEPs Under the Stated Policies Scenario (STEPS), Taiwan has set 2005 as the base year. The government’s emission reduction targets are a 10% reduction by 2025, a 24% (±1%) reduction by 2030, and the achievement of net-zero emissions by 2050, with other policies assumed to remain unchanged. IEA Net Zero Emissions Scenario In assessing transition risks under the IEA Net Zero Emissions (NZE) Scenario, it is assumed that the government amends relevant legislation to set 2020 as the base year. Under this assumption, the emission reduction targets would be strengthened to a 21% reduction by 2025, a 42% reduction by 2030, and the achievement of net-zero emissions by 2050.		2015–2050		The scope of analysis covers all major operational sites of the Group.		1. Impact Assessment: Under the STEPS carbon price scenario, assuming business-as-usual (BAU) trends, the carbon fees payable are estimated to account for approximately 0.33–0.49% of annual revenue in 2030 and 2050. Under an active decarbonization scenario, the carbon fees are expected to account for approximately 0.21–0.31% of annual revenue in 2030, and 0.02–0.03% in 2050. Under the NZE carbon price scenario, carbon fees under the BAU scenario are estimated to account for approximately 1.57% of annual revenue in 2030 and 2.17% in 2050. Under the active decarbonization scenario, carbon fees are expected to account for approximately 1.37% of annual revenue in 2030 and 0.14% in 2050. 2. Resilience Capability: The Group addresses transition risks arising from carbon pricing through “technology-driven emission reductions” and “renewable energy adoption” The detailed response strategies are outlined in “3.2.1 Sustainability Plan and Climate Transition Plan.”

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Type		Key Assumptions		Selected Scenarios		Time Horizon		Scope of Analysis		Assessment of Impacts and Resilience Capacity
Physical Risk / Flooding Caused by Sea Level Rise		2. Impact of Macroeconomic Trends According to the Chung-Hua Institution for Economic Research, based on its full-year forecast for 2025 and the development of emerging technologies, the annual economic growth rate is projected to reach 5.45%. 3. Impact of Country- or Region-Level Variables According to official reports from the Taiwan Climate Change Projection Information and Adaptation Knowledge Platform and national meteorological observation authorities, climate model projections indicate that Taiwan’s winter season is expected to gradually shorten, total annual precipitation is projected to increase, and the intensity of extreme rainfall events is likely to exhibit an increasing trend. 4. Assumptions on Energy Use and Mix The Group expects to increase the proportion of electricity consumption from renewable energy sources to 100% by 2040.		1.RCP2.6 The IPCC uses Representative Concentration Pathways (RCPs) to model climate scenarios under varying levels of warming. RCP 2.6 represents a mitigation scenario, in which radiative forcing is projected to decrease by the year 2100. 2.RCP 8.5 • RCP 8.5 represents a high GHG emission scenario, in which radiative forcing is projected to continue increasing by 2100. In assessing physical risks, the Group selected three physical risk types that are most frequently observed in the telecommunications sector and for which domestic research data are available. The assessment parameters include: flooding caused by sea level rise, global temperature increase, and flood risk. • Assumptions: It is assumed that future climate change trends will follow the projections in the “National Climate Change Science Report 2024: Phenomena, Impacts, and Adaptation,” and that temperature increases due to climate change will exhibit the same trend across all of Taiwan. • Analysis Factors: Severity of disaster caused by sea level rise, magnitude of global temperature increase, impact of flood-inducing natural hazards		2015–2100				1. Impact Assessment: Using the NASA Sea Level Projection Tool, the future sea level rise in Taiwan was estimated under a global warming scenario of 2°C (closest to the projected temperature increase under RCP 8.5). For this assessment, the “National Climate Change Science Report 2024: According to studies, disasters caused by sea level rise are expected to occur after 2080 and, therefore, do not have a significant impact on the Group at present. 2. Resilience Capability: Based on the integrated scenario analysis, under a long-term 2°C warming scenario towards the low-carbon economy, some of the Group’s data centers are located in high-risk coastal zones. However, the majority of data centers were designed prior to construction with considerations for wind resistance and sea level rise to ensure the safety of the facilities and the continuity of operations, assuming no further deterioration in climate change and global warming.

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Type		Key Assumptions		Selected Scenarios		Time Horizon		Scope of Analysis		Assessment of Impacts and Resilience Capacity
Physical Risk / Global Temperature Increase		5. Assumptions on Technological Development With reference to Taiwan’s “2050 Net-Zero Emissions Pathway,” Taiwan is expected to develop low-carbon energy technologies in the short to medium term, while advancing high-efficiency green energy generation technologies over the long term.				2015–2100				1. Impact Assessment: According to the National Climate Change Science Report 2024, under the RCP 8.5 scenario, the mid-21st century (2041–2060) is projected to experience a temperature increase of 1.6°C, while by the end of the century (2081–2100), temperatures could rise by up to 3.4°C. The risks associated with rising temperatures are not significant for the Group, and are mainly reflected in increased electricity costs resulting from cooling needs at office areas or operating locations. 2. Resilience Capability: In recent years, Taiwan’s warming trend has been approximately 0.32°C per decade, accompanied by a corresponding increase in electricity consumption. The Group has implemented an energy management system and established monitoring for major power-consuming equipment, setting electricity usage targets and ensuring effective control and management.
Physical Risk / Flood Risk						2015–2099				1. Impact Assessment: • Under the RCP 8.5 scenario, typhoon-induced waves exceeding 12 meters in height are projected to affect operational sites in Taitung County, as well as localized areas in Hualien County and Yilan County. Locations experiencing extreme storm surge heights exceeding 1.2 meters include New Taipei City, Yilan County, and parts of Taichung City, Yunlin County, Chiayi County, Hualien County, and Taitung County. Such conditions indicate extreme wind and rainfall, which increase the risk of damage to outdoor telecommunications equipment and base stations in the aforementioned counties. • In the long-term scenario (including the mid-century period, 2040–2065, and the end-of-century period, 2075–2099), the probability of flooding gradually increases across counties, primarily affecting Changhua, Yunlin, Chiayi, Nantou, and Tainan. • A comprehensive water stress analysis was conducted for operational sites using the World Resources Institute (WRI) tool, with evaluation years set at 2030 and 2050, under the pessimistic RCP 8.5 scenario. Additionally, the Group utilized the WRI tool to assess physical risks for key suppliers with annual transaction values exceeding NT$ 50 million. The analysis indicates that over 98% of key suppliers fall within low to moderate or below-low risk levels. 2. Resilience Capability: The Group conducts an annual natural disaster preparedness inspection for all data centers. Flood protection measures include leak detection and waterproofing. The operations and maintenance unit issues notifications requiring all data center managers to perform safety checks, such as ensuring drainage openings are free of debris, verifying flood protection measures, and confirming the installation of waterproof gates.

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3.3.1.3 Major Areas of Uncertainty Considered in Climate Resilience Assessment

To ensure the decision-usefulness of the resilience assessment, the Group considers several major areas of uncertainty, including policy changes, technological advancements, shifts in market demand, environmental changes, and economic factors. The areas of significant uncertainty are described as follows:

1. Policy Changes:

Governments worldwide may introduce new regulatory policies and requirements in response to the impacts of climate change. These may include adjustments to carbon fee rates, revisions to eligibility criteria for preferential mechanisms, and the tightening or expansion of resilience standards for critical infrastructure.

2. Technological Advancements:

With the rapid pace of technological development, the maturity and cost trajectories of data center energy-efficiency technologies, network cloudification/virtualization, power storage solutions, and AI-enabled energy-efficiency tools will influence both the marginal abatement cost and the timing of related investments.

3. Changes in Market Demand:

Market demand for low-carbon products and services may evolve over time. The Group must anticipate and adapt to such demand shifts to ensure that its offerings continue to meet customer expectations. These shifts include, but are not limited to, changes in demand for cloud/IDC colocation services, the impact of 5G/6G applications on power-use flexibility and peak–off-peak load structures, and evolving customer preferences for low-carbon service offerings, such as green colocation and green SLAs.

4. Environmental Changes:

Climate change may lead to an increase in extreme weather events, such as typhoons, severe rainfall, and sea-level rise. These environmental changes could significantly impact the Group’s operations and value chain, particularly through risks to sites and submarine cable landing stations, including flood depth, wind and salt damage, power outage likelihood, and regional variations in exposure.

5. Economic Factors:

Global economic uncertainty may affect investment activities and capital flows. The Group must consider how changes in the economic environment may influence its financial position and operations, including but not limited to the effects of interest rate, exchange rate, and electricity price volatility on PPA pricing, CAPEX discounting, and operating costs.

3.3.1.4 Adaptive Capacity of Climate-Transition Strategies and Business Model in the Short, Medium, and Long Term

The Group’s strategy and business model are implemented based on the most reasonably likely scenarios. The Group assesses its capacity to adjust and adapt its strategy and business model, including the availability and flexibility of financial resources, the ability to reallocate and upgrade assets, and the impact of investments in climate-related mitigation, adaptation, and resilience opportunities, as described below:

• Availability and Flexibility of Financial Resources

The Group has remained profitable each year. The quick ratio has consistently been maintained above 90%, and the debt-to-asset ratio has been remained below 30%. The Group’s existing financial resources are assessed to be adequate and sufficiently flexible.

• Capacity for Asset Reallocation and Upgrades

The Group allocates annual budgets for relevant implementation projects in accordance with its sustainability-related targets. Funding sources include not only net cash inflows from the Group’s operating activities but also the issuance of sustainability bonds, serving as strategic funding to address sustainability-related risks and opportunities. In 2022 and 2025, the Group issued NT$3.5 billion in sustainability bonds each year, totaling NT$7 billion, thereby ensuring no constraints on its ability to reallocate, upgrade, or decommission existing assets.

• Impacts on Investments in Sustainability- and Climate-Related Mitigation, Adaptation, and Resilience Opportunities

For the impacts of the Group’s investments in climate-related mitigation, adaptation, and resilience opportunities, please refer to “3.2.1 Sustainability Plan and Climate Transition Plan”.

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3.3.2 Resilience Assessment for Non-Climate Sustainability-related Risks

Sustainability-Related Risks		Resilience of Strategy and Business Model
Sustainability-Related Risk – Digital Resilience Power and network disruptions and abnormal outages of critical information systems or cloud data center infrastructure caused by major natural disasters, external environmental changes, or multi-hazard events		To provide customers with uninterrupted and reliable services while ensuring high disaster resilience, management mechanisms have been established to maintain the continuous operation of critical infrastructure, networks, and information and communication systems, supported by ongoing deployment of geographically dispersed and multi-routing backup protections. This includes regularly assessing the reliability of equipment that has exceeded its durable life and proactively replacing end-of-support (EOS) and end-of-life (EOL) hardware. Regular disaster prevention, network, and ICT continuity tests, drills, reviews, and updates are continuously conducted. Furthermore, to validate the effectiveness of business continuity management mechanisms and procedural frameworks, an enterprise-level Business Continuity Management (BCM) tabletop exercise project has been implemented. This initiative enhances the overall responsiveness and disaster resilience of the information systems while fostering cross-functional and cross-organizational collaborative operating mechanisms to ensure operational stability under various risk scenarios. Based on assessment, current working capitals are sufficient to cover the expenditures associated with these measures.
Sustainability-Related Risks - Cybersecurity and Customer Privacy The occurrence of major cybersecurity incidents, leakage or improper use of personal data resulting in administrative penalties imposed by regulatory authorities or operational losses		Adopting a risk management–oriented approach, the Group provides sufficient resources and support for the information security and personal data management systems, and implements related protective measures. The Group allocates dedicated personnel and technical tools, and continuously monitors and enhances protective measures to ensure alignment with international best practices. Based on the assessment, under normal operating conditions, the risk of operational disruption due to these risks is low; furthermore, current working capitals are sufficient to cover the expenditures associated with these measures.

4. Risk Management

4.1 Processes and Policies for Identifying, Assessing, Prioritizing, and Monitoring Sustainability-Related Risks

Chunghwa Telecom’s Board of Directors establishes the risk management policies, framework, and culture, and sets up a board-level functional committee, the Risk Management Committee, to oversee and review risk management policies, procedures, and frameworks. At the management level, the Risk Management Steering Committee is responsible for driving the implementation of company-wide risk control operations. The Audit Office reviews risk events, with realized risks reported to the Audit Committee, while imminent or preventive risks are reported to the Risk Management Committee.

In the processes for identifying, assessing, prioritizing, and monitoring sustainability- related risks, the assessment and management plans for sustainability-related risks are integrated into the Company’s Enterprise Risk Management (ERM) framework, in line with the principle of materiality. To ensure timely evaluation of operational risks, annual identification of risk events, monthly reviews, assessments, and follow-ups are conducted, and potential new risk are continuously identified on a rolling basis. This ensures that all risk types—such as strategic risks, operational risks, and reporting/compliance risks—are properly identified. Control indicators and mitigation actions for each risk type are regularly and actively monitored to maintain the overall risk appetite within acceptable levels. In addition, no modifications were made to the risk identification and assessment processes during the reporting year.

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4.1.1 Input Data Sources and Parameters for Sustainability-Related Risks and Opportunities

In the process of identifying, assessing, prioritizing, and monitoring sustainability- and climate-related risks and opportunities, input data sources and parameters utilized as listed below.

Type		Input Data Sources and Parameters
Sustainability-Related Risks and Opportunities		Sustainability-related risks and opportunities are identified by reviewing the sustainability management context, operational activities, and business partnerships, while referencing international sustainability standards and regulations, disclosure frameworks, industry trends, peer sustainability practices, expert opinions, and stakeholder concerns. The collected information is consolidated and organized into material sustainability topics.
Climate-Related Risks and Opportunities		Climate-related risks and opportunities are identified and updated regularly using scenario assumptions from the International Energy Agency (IEA) NZE and STEPS, climate simulation data from the IPCC Sixth Assessment Report (AR6), and government-downscaled physical risk scenarios. The scope of risk and opportunity identification includes potential climate-related risks and opportunities across the Group’s operations and supply chain.

Subsequently, scenario analysis is conducted to further identify climate-related risks but is not applied to the identification of climate-related opportunities or other sustainability-related risks and opportunities. Impact and use of climate-related scenario analysis on risk identification is summarized below.

Type		Impact and Use of Climate-Related Scenario Analysis on Risk Identification
Climate-Related Risks		During the climate risk identification process, the Group conducts scenario analysis for both transition risks and physical risks. Based on these scenario analyses, the potential financial impacts of each risk are evaluated, and risks that exceed the material financial threshold are disclosed accordingly.

4.1.2 Assessment Methods for the Nature, Likelihood, and Impact of Sustainability-Related Risks and Opportunities

In the risk identification and analysis process, qualitative factors (e.g., corporate reputation, business strategy) and quantitative thresholds are considered. For a detailed description of the nature of sustainability-related risks, please refer to the disclosures in “3.1.2 Sustainability- and Climate-related Risks and Opportunities Reasonably Expected to Affect the Company’s Development Outlook, and Their Potential Impacts on the Business Model and Value Chain”. The methods for assessing the likelihood and impact of risks are summarized below.

Type		Assessment Methods for the Nature, Likelihood, and Impact of Sustainability- and Climate-Related Risks
Sustainability-Related Risks		The assessment of sustainability-related risks is conducted in accordance with the double materiality principle. Dozens of senior executives involved in sustainability-related operations complete questionnaires for each topic to evaluate both the impact materiality and financial materiality, assessing the likelihood and magnitude of potential positive and negative impacts for each issue.
Climate-Related Risks		1.  Collecting and Identifying Climate Topics: Following the TCFD framework, the Group reviews the service models and characteristics of the telecommunications industry to compile a comprehensive list of climate-related risks and opportunities. 2.  Identifying Material Climate Risks and Opportunities: Internal and external inputs are gathered through questionnaires and interviews to assess the magnitude and urgency of impacts. Materiality thresholds are established, and material climate risks and opportunities are selected accordingly. 3.  Establishing a Material Climate Risk and Opportunity Matrix: Climate risks and opportunities are prioritized based on the double materiality principle, and annual priorities are determined. After internal review, a materiality matrix is produced, illustrating the ranking of each topic. 4.  Target Setting and Strategy Management: Based on the climate risk matrix, annual targets and strategies are formulated. Policy implementation is reviewed quarterly, plans are adjusted, and monitoring mechanisms are established to ensure target achievement and strengthened risk response.

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4.1.3 Prioritization of Sustainability-Related Risks and Opportunities and the Methodology

The severity of operational impacts is assessed based on the likelihood and consequence of each risk event, and risks are prioritized using a risk matrix, with corresponding risk levels assigned. Risk mitigation actions are implemented according to the assigned risk level. (Expected Risk Value = Risk Impact × Risk Probability)

• Risk Probability = likelihood of the risk occurring.

• Risk Impact = severity of the risk’s consequence.

Within the matrix, risks with higher expected values are defined as enterprise-level critical risks, serving as a priority action list for management and a basis for resource allocation.

Note: The “Investments in business” risk event is assessed at the subsidiary level, whereas other risk events are primarily assessed for the parent company, Chunghwa Telecom.

4.1.4 Mechanisms for Monitoring Sustainability-Related Risks and Opportunities

To achieve the four key control objectives—strategy, operations, reporting, and regulatory compliance—risk sources are analyzed based on strategic goals and internal and external environmental variables. Using a risk matrix, we identify and assess opportunities and risk events within the operating environment. Relevant managerial units then formulate strategies and risk response measures to carry out effective risk management and control:

• First Line of Defense: Undertaken by risk owners and individual operating units, focusing on day-to-day risk management and response. Risk controls are integrated into routine operational processes.

• Second Line of Defense: Led by the Risk Management Steering Committee and relevant functional units. This line is responsible for overseeing, guiding, and adjusting risk management policies and mechanisms, as well as establishing standardized processes and procedures.

• Third Line of Defense: Led by the Audit Department, which conducts periodic internal audits to evaluate the effectiveness and implementation of the overall risk management framework and provides recommendations for improvement based on identified issues.

Through the coordinated efforts of the three lines of defense, a multilayered protection system is established that reinforces robust operations and supports long-term sustainable development.

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5. Metrics & Targets

5.1 Disclosure of Established Sustainability-Related Metrics and Targets

The Group’s disclosures are aligned with international sustainability disclosure standards and managed in accordance with global frameworks and guidelines. This section provides detailed disclosure of the following information:

• The metrics established to continuously measure and monitor sustainability-related risks and opportunities, as well as the strategic targets formulated to mitigate or adapt to such risks or to capitalize on such opportunities, including analyses of performance trends or changes.

• Specific cross-industry metric categories, including: GHG Emissions, Climate-Related Transition Risks — the amount and percentage of assets or business activities exposed to climate-related transition risks, Climate-Related Physical Risks — the amount and percentage of assets or business activities exposed to climate-related physical risks, Climate-Related Opportunities — the amount and percentage of assets or business activities aligned with climate-related opportunities, Capital Allocation — capital expenditures, financing, or investments allocated to climate-related risks and opportunities, Internal Carbon Pricing, Remuneration, etc.

The Group places high importance on sustainable development and climate change issues, closely monitoring global net-zero and decarbonization trends. The Sustainable Development Promotion Committee participates in the formulation and review of sustainability strategies, policies, and various strategic targets. Quarterly reports on related progress are submitted to the Board of Directors, and significant sustainability topics are also presented to the Sustainable Development and Strategy Committee. The Board’s guidance on each topic is followed by subsequent actions and tracking to ensure effective implementation. These efforts demonstrate the Group’s proactive alignment with the United Nations Sustainable Development Goals (SDGs), the Paris Agreement’s 1.5°C temperature limit target, and Taiwan’s Climate Change Response Act, which sets the national target for achieving net-zero GHG emissions by 2050.

Strategic Objectives and Performance Trends for Sustainability-Related Risks and Opportunities

Sustainability and Related Risks or Opportunities

Metrics

Base Period

Strategic Goals

Targets

Indicator Definition

Calculation Input Values

Third-Party Verification

Unit of Measurement

Indicator Type

Current Value

Target Purpose

Target Scope

Target Type

Target Period

Milestone / Interim Target

Sustainability-Related Opportunities – Digital Resilience To meet the digital resilience requirements of government and corporate clients, the Group provides solutions encompassing network, system , and cybersecurity resilience.

Medium-term revenue compound annual growth rate, CAGR of digital resilience solutions

Calculated based on the Group’s annual operating revenue.

Not verified by a third party

Percentage

Quant.

(Note 1)

2025 revenue of digital resilience solutions

Provide comprehensive digital resilience solutions for governments and enterprises, covering networks, systems, and cybersecurity.

Position as a co-creator within the digital ecosystem, continuously advancing expertise in network, system, and cybersecurity resilience technologies.

Consolidated entities

Intensity target

2030

Medium-term revenue CAGR: 6%~10% (2025 - 2030)

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Sustainability and Related Risks or Opportunities

Metrics

Base Period

Strategic Goals

Targets

Indicator Definition

Calculation Input Values

Third-Party Verification

Unit of Measurement

Indicator Type

Current Value

Target Purpose

Target Scope

Target Type

Target Period

Milestone / Interim Target

Climate-Related Opportunities – Climate Resilience Products and Services Providing customers with products or services that enhance climate resilience.

Revenue proportion of climate-related opportunity products

Calculated based on the Group’s annual operating revenue.

Not verified by a third party

Percentage

Quant.

6%~8%

2025 revenue of climate-related opportunity products

By expanding sustainable revenues, the Group enables its products and solutions to drive greater carbon reductions and makes a tangible contribution to environmental sustainability.

Pioneering new opportunities in the low-carbon market

Consolidated entities

Intensity target

2030

Maintain (or increase) the proportion of revenue from climate-related products on an annual basis.

Climate-Related Opportunities - Energy Energy efficiency improvements to reduce electricity consumption and associated carbon pricing costs

Reduction in electricity consumption

• Electricity consumption in the previous year • Electricity consumption in the current year

Electricity consumption is related to Scope 2 GHG emissions. The Group conducts an annual GHG inventory and obtains third-party verification.

Electricity consumption (kWh)

Quant.

Total electricity consumption this year decreased by 124 million kWh compared to the base year, and by 44.3 million kWh compared to 2024 (Note2)

2020

Compared to the base year (Year 2020), reduce electricity consumption by 849 million kWh by 2040

Reduction in electricity consumption

Consolidated entities

Absolute target

2040

Compared with the base year (Year 2020), reduce electricity consumption by 216 million kWh by 2030

Climate-Related Risks — Transition Risks Increased compliance costs in response to the government’s 2050 net-zero emissions policy

GHG Emissions Reduction Ratio

Scope 1 & Scope 2 GHG Emissions Scope 3 GHG Emissions

Conduct an annual GHG inventory and third-party verification.

Emissions volume

Quant.

Scopes 1 & 2: 20.51% reduction compared to the base year Scope 3: 11.07% reduction compared to the base year (Note 3)

Scopes 1 & 2: 2020: 857.1 thousand t-CO₂e Scope 3: 2021: 1.9132 million t-CO₂e

Net-Zero Carbon Emissions Target: 2045

Reduce carbon emissions

Scopes 1 & 2: Consolidated entities Scope 3: Parent company (Chunghwa Telecom)

Intensity target

2045

2030 Scope 1 and Scope 2 GHG emissions: 50% reduction compared to the base year Scope 3 GHG emissions: 25% reduction compared to the base year

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Sustainability and Related Risks or Opportunities

Metrics

Base Period

Strategic Goals

Targets

Indicator Definition

Calculation Input Values

Third-Party Verification

Unit of Measurement

Indicator Type

Current Value

Target Purpose

Target Scope

Target Type

Target Period

Milestone / Interim Target

Sustainability-Related Risk – Digital Resilience Power and network disruptions and abnormal outages of critical information systems or cloud data center infrastructure caused by major natural disasters, external environmental changes, or multi-hazard events

Maintaining Backbone Network Service Availability

Calculation of affected users and duration based on major network outages

Not verified by a third party

Percentage

Quant.

Backbone network service availability ≥ 99.99%

2025, 99.99%

Strengthen the resilience and performance of service systems to ensure digital services remain complete and uninterrupted

Maintaining Backbone Network Service Availability

Parent company (Chunghwa Telecom)

Intensity target

2026

Backbone network service availability ≥ 99.99%

Maintain the annual service availability of critical information systems and IDC/cloud services.

Total unplanned downtime (excluding scheduled maintenance)

Not verified by a third party

Percentage

Quant.

Critical information systems: service availability ≥ 99.95% IDC/ cloud services: service availability ≥ 99.95%

2025, 99.95%

Maintain the annual service availability of critical information systems and IDC/cloud services

Parent company (Chunghwa Telecom)

Intensity target

2026

Critical information systems: service availability ≥ 99.95% (Note 4) IDC/ cloud services: service availability ≥ 99.95% (Note 4)

Critical Network Facility backup power duration

Backup power duration (UPS & generators) following external power interruptions.

Not verified by a third party

Hour

Quant.

Critical network facility backup power duration: ≥ 72 hours

2025, 72 hours

Maintain the critical network facility backup power

Parent company (Chunghwa Telecom)

Absolute targets

2026

Critical network facility backup power duration: ≥ 72 hours (Note 5)

Sustainability-Related Risks - Cybersecurity and Customer Privacy The occurrence of major cybersecurity incidents, leakage or improper use of personal data resulting in administrative penalties imposed by regulatory authorities or operational losses

1. Number of Data Breaches 2. Number of Affected Customers

Calculated based on the Group’s Personal Data Incident Reporting Statistics

Not verified by a third party

Case/ Person

Quant.

1.0 case 2.0 persons

2025, 1.0 case 2.0 person

Strengthen cybersecurity resilience and enhance personal data protection to create a top-tier technology group that meets international standards for safety, reliability, and customer trust

Protect customer personal data

Consolidated entities

Absolute targets

2050

1.0 case 2.0 person

Maintain ongoing third-party information security and personal data certification

Based on the Group’s Statistics of Achieved Information Security and Personal Data Certifications

Not verified by a third party

Achievement Rate / Percentage

Quant.

100%

2025, 100%

Comprehensive Information Security and Privacy Information Management System

Consolidated entities

Intensity target

2050

Maintain 100% compliance with third-party information security and personal data certification

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Note 1: 2025 is the base year for this metric/target. The indicator is measured using the Compound Annual Growth Rate (CAGR), which requires data from at least two periods to calculate. Starting from 2026, the calculation will use 2025 as the base year.

Note 2: Electricity consumption for certain subsidiaries includes estimated values, based on the actual consumption for the same period in the previous year.

Note 3: GHG emissions data for Year 2025 is based on internal calculations. A reasonable assurance opinion on the GHG inventory is expected to be obtained by April 30, 2026. The complete assurance information will be disclosed in the Sustainability Report.

Note 4: The availability target for this service refers to circumstances in which a “significant disaster” occurs and that are “not limited to any specific scope or asset”. If circumstances are “limited to a specific scope or asset”, or if an “exclusive SLA agreement has been signed with the customer,” the availability target may exceed 99.95%.

Note 5: Aligned with international TIA-942 IDC Tier 3 standard for high-reliability power resilience.

5.1.1 Greenhouse Gas–related Targets and Metrics

The Group recognizes the significant impacts and challenges posed by climate change on the industry, while also taking a forward-looking approach to identifying opportunities associated with sustainable and low-carbon development. To proactively address climate-related risks and seize green growth opportunities, the governing bodies and management closely monitor global climate developments. Based on Science-Based Targets (SBTs) for scientifically quantified decarbonization, the Group adopts two core strategies—technology-driven decarbonization and renewable energy utilization—and is committed to achieving 100% renewable energy use by 2040 and net-zero emissions by 2045.

The Group has formulated a GHG reduction strategy and designated 2020 as the base year for emissions reduction. In that year, Scope 1 and Scope 2 emissions were 27,791.4061 t-CO₂e and 829,322.1537 t-CO₂e, respectively, with a total combined emission of 857,113.5598 t-CO₂e. The Group targets a 50% reduction in combined Scope 1 and Scope 2 emissions by 2030 relative to the 2020 base year. To achieve this reduction target, the Group has developed the following decarbonization pathway:

Year (Gregorian Calendar)		2020				2021				2022				2023				2024				2025				2026				2027				2028				2029				2030
Annual Carbon Emission Reduction Ratio			Base year				1.7	%			3.7	%			6.5	%			10.1	%			14.5	%			20.0	%			26.0	%			33.0	%			41.0	%			50.0	%

Since 2023, the Group has gradually purchased Gold Standard-certified carbon credits through the international carbon trading platform of the Taiwan Carbon Exchange, totaling 3,826 tons, to offset part of the organization’s carbon emissions. Going forward, the Company will assess the purchase of internationally recognized carbon credits based on its carbon reduction plan and actual needs to achieve overall emission reduction targets.

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Strategic Targets

Corresponding Indicator

Targets

Target Purpose

Scope of Application

Target Type

Status and Performance Trend in 2025

Decarbonization Pathway: Advancement to Achieve Net-Zero Emissions by 2045 (Note 1)

Scope 1 and Scope 2 GHG emissions

Net-Zero Target – 2030: • Scope 1 and 2: 50% reduction compared to the base year 2020

GHG Emission Reduction

Entire Group

Quantitative – Absolute Target

Scope 1, 2: Actual emissions amounted to 681.3 thousand t-CO₂e, representing a 20.51% reduction compared to the base year (2020).

Gradual Reduction of IDC Data Center PUE Through Technological Decarbonization

IDC Data Center PUE

Reduce IDC Data Center PUE to below 1.5 by 2030, using 2020 as the base year

GHG Emission Reduction

Parent Company (Chunghwa Telecom)

Quantitative – Intensity Target

The PUE value was 1.587, reduce by approximately 0.6%–1% per year

Procure and Self-Build Renewable Energy

Proportion of Renewable Energy Usage

Achieve 100% renewable energy usage by 2040 across the entire Group (including all five subsidiaries: Chief Telecom, Honghwa International, Chunghwa Precision Test, Chunghwa Leading Photonics, International Integrated Systems) in line with RE100 commitments

GHG Emission Reduction

Parent company (Chunghwa Telecom) and certain subsidiaries (including all five subsidiaries: Chief Telecom, Honghwa International, Chunghwa Precision Test, Chunghwa Leading Photonics, International Integrated Systems)

Quantitative – Intensity Target

• Actively promote the development of renewable energy. As of 2025, 171 self-owned solar photovoltaic (PV) sites and green base stations are constructed across Taiwan, with a cumulative installed capacity of 13.1M kWp. • In 2024, total renewable energy consumption reached 72.604 million kWh, accounting for 5.38% of total electricity consumption; In 2025, the proportion of renewable energy usage increased, with total consumption amounting to 88.679 million kWh, representing 6.46% of total electricity consumption.

Setting the EV100 target to advance the adoption of electric vehicles

Electrification Rate (%) of Engineering / Administrative / Transportation Vehicles

Achieve 100% electrification of engineering, administrative, and transportation fleet vehicles by 2030 under the EV100 commitment

GHG Emission Reduction

Parent Company (Chunghwa Telecom)

Quantitative – Intensity Target

From 2024 to 2026, the Company has initiated a phased replacement of existing engineering and administrative vehicles with electric vehicles. Beginning in 2027, the Company plans to procure only electric vehicles for all new fleet acquisitions.

Note 1: The Group’s GHG reduction targets are derived using the absolute contraction approach.

Note 2: GHG emissions data for 2025 is based on internal calculations. A reasonable assurance opinion on the GHG inventory is expected to be obtained by April 30, 2026. The complete assurance information will be disclosed in the Sustainability Report.

Note 3: The total renewable energy consumption data are based on the Company’s internal reporting. For certain activity data could not be obtained due to data availability constraints, the Group applied reasonably obtainable and supportable information available as of the reporting date (including, where necessary, estimates based on prior-period data) to perform estimations. However, the emissions data derived from such estimations involve a high degree of uncertainty and may be subject to material revisions upon the availability of updated information in the subsequent year.

Note 4: All other performance indicators are calculated based on internally developed definitions and have not undergone third-party verification.

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5.1.1.1 Absolute Greenhouse Gas Emissions During the Reporting Period

The Group discloses its carbon emissions data annually and obtains third-party verification in accordance with the Greenhouse Gas Protocol (GHG Protocol) and ISO 14064 standards to ensure the accuracy and reliability of its emissions information. Based on 2025 data, the Group’s total GHG emissions for Scope 1, Scope 2, and Scope 3 (Categories 1–6) amounted to 2,468,907.9383 t-CO₂e. The absolute GHG emissions for Scope 1, Scope 2, and Scope 3 generated by the consolidated accounting group during the 2025 reporting period are detailed as follows:

Scopes 1, 2, 3
Item				Item		Item
Scope 1 (Direct) (t-CO₂e)				25,561.6967			Entire Group
Scope 2 (Indirect Energy) (t-CO₂e)		Market- based		655,726.1313			Entire Group
		Location - based		697,727.2713
Scope 3 (Other Indirect) (t-CO₂e)				1,787,620.1103			Entire Group
Total Emissions (Scope 1 + 2) (t-CO₂e)		Market - based		681,287.8280			Entire Group
		Location- based		723,288.9680
Total emissions (Scopes 1+2+3) (t-CO₂e)		Market- based		2,468,907.9383			Entire Group
		Location- based		2,510,909.0783
Scope 3 Inventory and Verification
Category				Category		Category
3				Upstream transportation and distribution			988.1236
				Downstream transportation and distribution			110.0064
				Business travel			7,733.7823
				Employee commute			15,971.4690
4				Purchased goods and services			596,873.2328
				Procurement of capital goods			617,767.2306
				Fuel and energy-related activities			137,866.9587
				Waste generated by operations			1,974.5813
				Upstream leased assets			86,170.5668
5				Use of sold products			94,362.7120
				End-of-life treatment of sold products			411.3818
				Downstream leased assets			170,587.8345
				Investment			56,802.2305

Note 1: The industries to which the Group belongs do not emit ozone-depleting substances or other significant pollutants.

Note 2: GHG emissions data for 2025 is based on internal calculations. A reasonable assurance opinion on the GHG inventory is expected to be obtained by April 30, 2026. The complete assurance information will be disclosed in the Sustainability Report.

Note 3: For 2025 GHG emission data, where certain activity data could not be obtained due to data availability constraints, the Group applied reasonably obtainable and supportable information available as of the reporting date (including, where necessary, estimates based on prior-period data) to perform estimations. However, the emissions data derived from such estimations involve a high degree of uncertainty and may be subject to material revisions upon the availability of updated information in the subsequent year.

5.1.1.2 Methodology, Input Values, and Assumptions for GHG Emissions

The Group’s GHG emissions are verified by a third-party organization in accordance with the Greenhouse Gas Protocol (GHG Protocol) and ISO 14064 standards, in order to track the effectiveness of emission reduction efforts. In addition to completing voluntary inventories at operational sites, the Group has extended the inventory scope to its value chain, establishing a systematic framework that provides a solid information foundation for carbon management. During the reporting period, there were no changes to the methodology, input values, or assumptions used for measuring GHG emissions. For detailed estimation methodologies, please refer to “5.1.1.3 Scope 1 and Scope 2 Greenhouse Gas Emissions”.

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5.1.1.3 Scope 1 and Scope 2 Greenhouse Gas Emissions

The Group’s Scope 1 and Scope 2 GHG emissions for 2025 are presented in “5.1.1.1 Absolute Greenhouse Gas Emissions During the Reporting Period.” Scope 1 and Scope 2 emissions are segregated between the consolidated accounting group and other investees not included in the consolidated group. The Group adopts the operational control approach and has determined that it does not exercise operational control over other investees.

The Group discloses Scope 2 emissions on a location-based approach, with emission factors applied to electricity retailing utility enterprise. The aggregated data are summarized as follows:

Emission Source		Emission Factor			Unit			Source
		CO2
Taiwan		0.4740			t/kWh			Electricity emission factors for 2024 as announced by the Bureau of Energy
Japan		0.4230			t/kWh			Emission Factors by Electricity Providers (TEPCO) as Announced by the Ministry of the Environment, Japan
Singapore		0.4020			t/kWh			2024 Electricity Emission Factor as announced by the Energy Market Authority (EMA), Singapore
United States (CAMX)		0.19504800			t/kWh			US EPA eGRID 2023
United States (AZNM)		0.32033232			t/kWh			US EPA eGRID 2023
United States (ERCT)		0.33412176			t/kWh			US EPA eGRID 2023
China (Shanghai)		0.5777			t/kWh			2024 Electricity CO2 Emission Factor Announcement – Shanghai
Hong Kong		0.3800			t/kWh			CLP Power announced electricity emission factor
Thailand		0.4750			kg/kWh			TGO announced electricity emission factor (2025)
Vietnam		0.6592			t/kWh			2023 Electricity Emission Factor as announced by the Ministry of Climate Change, Vietnam

The Group additionally utilizes self-installed solar photovoltaic systems and procures renewable energy to achieve its net-zero carbon reduction targets. The data for renewable energy usage and Renewable Energy Certificates (T-REC) for 2025 are summarized as follows:

Year		Renewable Energy (10,000 kWh)		Renewable Energy Certificates (Number of Certificates)		Renewable Energy Utilization Rate (%)
2025		8,867.9		88,170		6.46%

Note 1: The total renewable energy consumption data are based on the Company’s internal reporting. For certain activity data could not be obtained due to data availability constraints, the Group applied reasonably obtainable and supportable information available as of the reporting date (including, where necessary, estimates based on prior-period data) to perform estimations. However, the emissions data derived from such estimations involve a high degree of uncertainty and may be subject to material revisions upon the availability of updated information in the subsequent year.

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5.1.1.4 Scope 3 Greenhouse Gas Emissions

The Group’s Scope 3 GHG emissions for 2025 are presented in “5.1.1.1 Absolute Greenhouse Gas Emissions During the Reporting Period.’’ The Group applies a hybrid approach and the average-data method to measure Scope 3 emissions. The hybrid approach combines supplier-specific data and secondary data, while the average-data method primarily multiplies the quantity of purchased goods and services by secondary data (industry-average emission factors) to estimate GHG emissions. In 2025, the Group’s total carbon emissions under Scope 3 amounted to 1,787,620.1103 t-CO₂e. This data is expected to be verified by a third party in accordance with ISO 14064-1 and GHG Protocol standards. The Group anticipates that this information enables key users to understand the verified input values used in measuring Scope 3 GHG emissions and provides supporting information to substantiate the reasonableness and reliability of these input values.

Methodologies for Calculating Scope 3 GHG Emissions and Description of Exclusions

Scope 3 Categories		Description of Emission Calculation Methodology and Exclusions
1.  Purchased goods and services		Priority is given to estimating emissions using product life cycle GHG emission factors. For materials or products with available weight data (such as consumables, packaging materials, electronic components, and raw materials), emissions are calculated by multiplying the weight by the corresponding life cycle GHG emission factor (sources include the Environmental Protection Administration’s Carbon Footprint Database or the SimaPro database). If such data are unavailable, quantification is performed using Environmentally Extended Input-Output (EEIO) analysis. The detailed calculation methods for each item are as follows: 1.  Water (Carbon Footprint): Multiply the water consumption by the emission factor published on the Product Carbon Footprint Information Platform. 2.  Supplier Inventory Items (Carbon Footprint): Based on the quantity of products procured, multiply by the emission factors announced by suppliers to calculate carbon emissions. This includes refrigerants, leased goods, SIM cards, and products sold in retail stores. 3.  Others (EEIO): Classify the procurement items according to the industry classification standards of the Directorate-General of Budget, Accounting and Statistics, and calculate carbon emissions based on procurement costs using EEIO analysis.
2.  Procurement of capital goods		The primary approach for quantification is Environmentally Extended Input-Output (EEIO) analysis. Based on the capital expenditures incurred during the year (such as IT equipment, servers, building renovations, vehicles, and facility installations), procurement amounts are classified according to the industry classification standards of the accounting system. These amounts are then multiplied by the corresponding industry-specific GHG emission factors for the manufacturing stage to calculate the indirect GHG emissions associated with the capital goods.
3.  Fuel and energy-related activities		Based on fuel and electricity consumption within the organizational boundaries defined for the inventory, indirect emissions are calculated by multiplying by the emission factors announced on the Product Carbon Footprint Information Platform (i.e., life-cycle emission factors excluding the use-phase emissions).
4.  Upstream transportation and distribution		Priority is given to using available material or product weight and delivery data to calculate emissions by applying the corresponding ton-kilometer emission factor approach (sources include the Environmental Protection Administration’s Carbon Footprint Database or the SimaPro database). If such data are unavailable, emissions are quantified using the Environmentally Extended Input-Output (EEIO) method. The detailed calculation methods are as follows: 1.  Supplier Inventory Items (Ton-Kilometer): For retail products, the parent company and subsidiaries estimate upstream transportation ton-kilometers based on inbound quantities, weights, supplier shipping records, and sales data. Emissions are calculated using ton-kilometer emission factors published on the Product Carbon Footprint Information Platform. For non-retail products (e.g., HGW, Wi-Fi AP, signal boosters, SIM cards, MOD), the same calculation principle applies. Subsidiaries calculate waste generation using per capita waste generation rates announced by authorities and employee headcount or total working hours, then apply incineration emission factors. Transportation emissions are calculated using the activity-based ton-kilometer method by multiplying waste transport weight and distance to the nearest incineration plant by the transport emission factor. 2.  Accounting Items (EEIO): Based on expense records for upstream and downstream transportation and distribution, emissions are calculated using the EEIO approach by applying expenditure amounts, excluding non-product transportation expenses.

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Scope 3 Categories		Description of Emission Calculation Methodology and Exclusions
5.  Waste generated by operations		Priority is given to using available material or product weight and disposal method to calculate emissions by applying the corresponding ton-kilometer or emission factor approach (sources include the Environmental Protection Administration’s Carbon Footprint Database or the SimaPro database). If such data are unavailable, emissions are quantified using the Environmentally Extended Input-Output (EEIO) method. The detailed calculation methods are as follows: 1.  Waste Generation (Treatment Emission Factor): Based on the amount of general and industrial waste generated within the organizational boundary at each operating site, and the recorded waste treatment methods (including incineration, composting, and recycling), emissions are calculated by multiplying the waste quantity by the incineration emission factor published on the Product Carbon Footprint Information Platform; food waste is multiplied by the composting emission factor from the same source. 2.  Waste Transportation (Ton-Kilometer): For municipal waste transported from operating sites to the final disposal location, emissions are calculated by multiplying the transport distance and weight by the ton-kilometer emission factor published on the Product Carbon Footprint Information Platform. For industrial waste transported from headquarters to treatment facilities, the same method applies. 3.  Accounting Items (EEIO): Based on expense records for upstream and downstream transportation and distribution, emissions are calculated using the EEIO approach by applying expenditure amounts.
6.  Business travel		Priority is given to quantifying emissions using the activity-based method (passenger-kilometer approach). Actual business travel distances for each mode of transportation (e.g., air, rail, car, metro, high-speed rail) are aggregated and multiplied by the corresponding GHG emission factors for each transport mode. The detailed calculation methods are as follows: 1.  Transportation (EEIO): Based on business travel classifications, including air transport, sea transport, rail transport, private car (taxi), coach/bus, and airport-related expenses, emissions are calculated using the Environmentally Extended Input-Output (EEIO) method by applying expenditure amounts. 2.  Business Accommodation (EEIO): For domestic stays, emissions are quantified using the per-night emission factor published on the Product Carbon Footprint Information Platform; for international stays, SimaPro emission factors are applied.
7.  Employee commute		Both the parent company and subsidiaries conduct an employee commuting survey and require all employees to complete the questionnaire. After collecting data on commuting modes and distances, emissions are calculated by multiplying the corresponding public transportation emission factors. The calculation method is as follows: 1.  Commuting Transportation (Passenger-Kilometer): For each county/city, commuting modes and distances are aggregated and then multiplied by the corresponding public transportation emission factors. The result is adjusted by the response rate (number of respondents ÷ total employees in that county/city) to estimate the commuting emissions for all employees nationwide.

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Scope 3 Categories		Description of Emission Calculation Methodology and Exclusions
8.  Upstream leased assets		Priority is given to quantifying emissions from upstream lease-related accounting expenses using the Environmentally Extended Input-Output (EEIO) method, and to include electricity consumption for leased premises without full operational control. The detailed calculation methods are as follows: 1.  Accounting Items (EEIO): Based on expense records for upstream leases, emissions are calculated using the EEIO approach by applying procurement costs, excluding service fees, usage fees, and attachment fees. 2.  Electricity Without Full Operational Control (Electricity Emission Factor): For leased premises with fixed electricity charges and base stations without full operational control, emissions are calculated using the electricity emission factor.
9.  Downstream transportation and distribution		Priority is given to quantifying emissions using the transport activity-based method (ton-kilometer approach). Emissions are calculated by multiplying the weight of goods transported during product sales or service delivery by the transport distance to customers and applying the corresponding GHG emission factor for the transport mode (e.g., road, sea, air). If only accounting expense data are available, emissions are quantified using the Environmentally Extended Input-Output (EEIO) method (limited to subsidiary products). The detailed calculation methods are as follows: 1.  Supplier Inventory Items (Ton-Kilometer): For products sold in retail stores where suppliers bear the transportation cost, ton-kilometers are estimated using the supplier’s address and product weight. Emissions are calculated using the ton-kilometer emission factors published on the Product Carbon Footprint Information Platform or those provided by the SimaPro database. 2.  EEIO Method: For downstream distribution or transportation-related accounting expenses, emissions are calculated by applying EEIO emission factors based on industry classification to reflect indirect emissions generated during product transportation. This method applies only to subsidiary products.
10. Processing of Sold Products		As no intermediate products are sold under the current business model, processing of sold products is not applicable.
11. Use of sold products		Priority is given to using available product carbon footprint information to quantify emissions based on the number of products sold. If such data are unavailable, emissions are quantified based on the product’s energy consumption throughout its life cycle. The detailed calculation methods are as follows: 1.  Product Carbon Footprint: Carbon emissions are calculated by multiplying the number of products sold by the use-phase emission factor announced by suppliers or associated products in the SimaPro database. 2.  Product Electricity Consumption (Electricity Emission Factor): If annual electricity consumption data for individual electronic products announced by the Energy Administration or equipment lifetime standards from the Directorate-General of Budget, Accounting and Statistics are available, these are used to calculate product electricity consumption. If such data are unavailable, emissions are calculated by multiplying the number of products sold by estimated electricity consumption over the product’s lifetime and then applying the latest 2024 electricity emission factor. Products without electricity consumption are excluded from carbon emission calculations.
12. End-of-life treatment of sold products		The disposal method for each product is determined based on its composition and properties, considering potential end-of-life treatments such as incineration, landfill, or recycling. Emissions are then calculated by multiplying the corresponding end-of-life GHG emission factor for each treatment method. Emission factors are primarily sourced from the treatment stage data in the SimaPro life cycle assessment database. The detailed calculation methods are as follows: 1.  Product Carbon Footprint: For sold products and SIM cards, carbon emissions are calculated by multiplying the sales volume by the end-of-life emission factor announced by suppliers or associated products in the SimaPro database. 2.  Waste Treatment Volume (Weight-Based Emission Factor): Estimate the total weight based on product characteristics and apply the proportion of regulated recyclable materials announced by the Ministry of Environment to determine the total treatment volume. Multiply this by the emission factor published on the Product Carbon Footprint Information Platform for quantification. 3.  Waste Transportation (Ton-Kilometer): Calculate emissions from transporting sold goods from operating sites to the Gangshan incineration plant by multiplying the transport distance and weight by the ton-kilometer emission factor published on the Product Carbon Footprint Information Platform.

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Scope 3 Categories		Description of Emission Calculation Methodology and Exclusions
13. Downstream leased assets		Downstream leased products and premises are quantified based on electricity consumption. The detailed calculation methods are as follows: 1.  Leased Product Electricity Consumption (Electricity Emission Factor): Carbon emissions are calculated by multiplying the product’s rated power or standby and operating electricity consumption by the 2024 electricity emission factor published by the Energy Administration. 2.  Leased Premises Electricity Consumption (Electricity Emission Factor): Carbon emissions are calculated by multiplying the electricity allocation recorded by external systems for leased premises by the latest 2024 electricity emission factor. This includes electricity used in IDC facilities subleased by subsidiaries.
14. Franchise Business		There were no franchised operations in 2025.
15. Investment		The primary focus is on assets with investment amounts disclosed in financial reporting documents, quantified using Environmentally Extended Input-Output (EEIO) analysis. If the investee company provides its Scope 1 and Scope 2 GHG emissions, emissions are further calculated based on the Company’s equity share. The detailed calculation methods are as follows: 1.  EEIO Method: In accordance with the GHG Protocol category for debt and equity investments, this includes investments accounted for under the equity method in consolidated financial statements, financial assets measured at fair value through other comprehensive income, and financial assets measured at fair value through profit or loss. All subsidiaries are included in the inventory scope, excluding liquidated or merged entities, and only companies with investment amounts are considered. Emissions are calculated by multiplying the Company’s investment amount by the corresponding industry-specific EEIO emission factor to determine Scope 3 emissions attributable to subsidiaries. 2.  Emission Factor Method: For companies that provide Scope 1 and Scope 2 emissions data, carbon emissions are calculated and then weighted based on the Company’s equity share to determine Scope 3 emissions.

5.1.2 Cross-Industry Climate-Related Indicators

This section focuses on key performance indicators to disclose the Group’s specific targets and implementation status regarding net-zero carbon emissions, renewable energy goals, data center PUE, and climate adaptation measures. It aims to demonstrate the Group’s commitment and proactive actions on climate change issues.

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Cross-Industry Climate-Related Indicators

Type		Indicator Item		2025 Current Status Overview
Climate-Related Opportunities		Revenue from Climate-Related Opportunity Products		In accordance with the Reference Guidelines for the Recognition of Sustainable Economic Activities, the Group’s revenue from climate-related opportunity products amounted to approximately 6%–8% of the Company’s total operating revenue in the year 2025.
Climate-Related Transition Risks		The Group operates within the service industry and is not classified as a major electricity consumer regulated by the Ministry of Economic Affairs; therefore, its exposure to policy-driven transition risks (e.g., carbon pricing, carbon tariffs) is relatively limited. The potential impacts of climate-related transition risks on operations—including asset allocation, operating costs, and business models—remain within a controllable range. No significant operational disruptions are expected in the short, medium, or long term.
Climate-Related Physical Risks		Critical communication facilities are located in areas classified as “high/extremely high” risk for extreme rainfall, river and coastal flooding, storm surges, and typhoon-induced waves.		In 2025, no critical communication facilities are located in areas potentially affected, and the impact of sea level rise is currently estimated to become significant only after 2060.
Capital Allocation		1.  Expenses on Renewable Energy 2.  Expenditure on Equipment Replacement		Hundreds of millions of NTD are being allocated this year toward renewable energy procurement costs and capital expenditures for equipment replacement to further strengthening our strategic deployment and advancement of renewable energy.

5.1.3 Internal Carbon Pricing

Since 2022, Chunghwa Telecom has implemented an internal carbon fee mechanism. The internal carbon price is established based on the average cost of renewable energy, with reference to global trends in internal carbon pricing and prevailing industry practices. Internal carbon fees are charged to operating units according to their electricity consumption and incorporated into their profit and loss performance evaluations. The internal carbon price for 2025 was set at NT$ 1,600 per ton of CO₂e. The collected carbon fees are allocated to an internal carbon fee fund, which is used to incentivize innovative proposals that promote environmental sustainability. The carbon price will be periodically reviewed and adjusted as necessary, taking into consideration government regulations, international carbon pricing developments, and benchmarking data from leading companies.

5.1.4 Remuneration

For policies linking sustainability (including climate)–related risks and opportunities to remuneration, as well as details on remuneration linkages, please refer to “2.1.4 Target Setting for Sustainability- and Climate-Related Risks and Opportunities, and Linkage to Performance and Remuneration Policies”.

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5.2 Information Relevant to Industry-Based Metrics

In accordance with the Group’s business model, the parent company identifies the applicable sustainability- and climate-related standards as the SASB Telecommunication Services Standard and the IFRS S2 Industry-based Implementation Guidance, Volume 59: Telecommunication Services (TC-TL). In addition, the subsidiaries included within the scope of this disclosure apply the following standards: the SASB Multiline and Specialty Retailers & Distributors Standard, the SASB Semiconductors Standard, the SASB Software & IT Services Standard, the SASB Telecommunication Services Standard; as well as the IFRS S2 Industry-based Implementation Guidance, Volume 6: Multiline and Specialty Retailers & Distributors (CG-MR), Volume 57: Semiconductors (TC-SC), Volume 58: Software & IT Services (TC-SI), and Volume 59: Telecommunication Services (TC-TL), covering all relevant disclosure topics and associated industry-based metrics.

Sustainability Disclosure Topics and Metrics

SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

●  Telecommunication Services ●  Multiline and Specialty Retailers & Distributors ●  Software & IT Services ●  Semiconductors

●  Environmental Footprint of Operations ●  Energy Management in Retail & Distribution ●  Environmental Footprint of Hardware Infrastructure ●  Energy Management in Manufacturing

TC-TL-130a.1 CG-MR-130a.1 TC-SI-130a.1 TC-SC-130a.1

(1)  Total energy consumed (2)  Percentage grid electricity (3)  Percentage renewable

Quantitative

Gigajoules (GJ) Percentage (%)

(1)  5,483,530.34 Gigajoules (GJ) (2)  90.35% (3)  8.68%

●  Telecommunication Services ●  Multiline and Specialty Retailers & Distributors

●  Data Security ●  Data Security ●  Data Security

TC-TL-230a.1 CG-MR-230a.2 TC-SI-230a.1

(1)  Number of data breaches (2)  Percentage that are personal data breaches

Quantitative

Number, Percentage (%)

(1)  0 cases (2)  0% (3)  0 person

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

●  Software & IT Services

(3)  Number of customers affected

●  Telecommunication Services ●  Multiline and Specialty Retailers & Distributors ●  Software & IT Services

●  Data Security ●  Data Security ●  Data Security

TC-TL-230a.2 CG-MR-230a.1 TC-SI-230a.2

•  Description of approach to identifying and addressing data security risks, including use of third-party cybersecurity standards. •  Provide an explanation of the approaches taken to identify and address data security risks, including the application of third-party cybersecurity standards.

Discussion and Analysis

Not applicable.

The Group places a high priority on information security and the protection of personal data, and has established an Information Security Policy and a Privacy Protection Policy. In compliance with international standards and regulatory requirements, the Group has built a comprehensive cybersecurity governance framework and internal control system to ensure robust security defenses and incident response capabilities across the Group and its subsidiaries, safeguarding both operational and customer information security. The Group continuously analyzes cybersecurity risks and corresponding protection strategies, implementing a tiered management approach based on the business characteristics of the parent company and subsidiaries. In accordance with regulatory requirements and risk identification outcomes, appropriate measures are adopted, including the establishment of Information Security Management Systems (ISMS) / Personal Information Management Systems (PIMS), External Attack Surface Management (EASM), vulnerability scanning, penetration testing, cybersecurity health checks, red team exercises, threat detection (SOC/MDR), social engineering simulations, training and education, threat intelligence collaboration, internal and external audits, and third-party certifications. These measures are continuously refined through the PDCA (Plan-Do-Check-Act) cycle to protect investor interests and support the Group’s sustainable development.

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

●  Telecommunication Services ●  Software & IT Services

●  Data Privacy ●  Data Privacy & Freedom of Expression

TC-TL-220a.1 TC-SI-220a.1

Description of policies and practices related to targeted advertising and customer privacy

Discussion and Analysis

Not applicable.

The Group has established policies governing behavioral advertising and customer privacy, clearly outlining how customer data is used and customers’ choices regarding data usage. A comprehensive Privacy Policy is publicly disclosed to enable customers to opt in or opt out of relevant services. The privacy management practices of Chunghwa Telecom, its subsidiaries, and outsourced media service providers are summarized as follows: 1.  The Group Our Policy: Chunghwa Telecom places strong emphasis on protecting customer privacy and complies with the Personal Data Protection Act and the Regulations Governing the Security Maintenance of Personal Data Files by Non-Government Agencies issued by the National Communications Commission (NCC). A comprehensive Privacy Protection Policy has been established, applicable to all branches, operating locations, subsidiaries, and suppliers. Our Management Measures: •  We have established rigorous personal data privacy protection and security controls, implemented data governance systems, defined data standards and classifications, and enforced access control mechanisms and data owner review processes. These measures ensure that data access and sharing are properly governed and safeguarded to maintain data availability, integrity, and confidentiality. •  Prior to launching relevant business initiatives, we conduct risk assessments to verify compliance in data access and to ensure that adequate data protection measures are in place. To enhance customer privacy protection, we have implemented the ISO 27701 Privacy Information Management System (PIMS) to ensure the effectiveness and compliance of the entire data lifecycle.

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

•  For the collection, processing, use, and protection of personal data involved in our operations, we strictly follow all applicable laws and regulations and use personal data only within the scope permitted by law. We do not provide, rent, or disclose personal data to third parties in any disguised form. All practices strictly adhere to the Company’s Chunghwa Telecom Privacy Protection Policy, ensuring robust customer data security and privacy rights. •  The National Communications Commission (NCC) has not established specific regulations governing children’s online privacy. In Taiwan, the primary regulations pertaining to children’s online privacy protection include: •  Protection of Children and Youths Welfare and Rights Act •  Child and Youth Sexual Exploitation Prevention Act •  Sexual Assault Crime Prevention Act •  With respect to personally identifiable information, Chunghwa Telecom does not collect or process biometric data. For more information, please refer to the Chunghwa Telecom official website g Sustainability ESG g Privacy Protection. 2.  Outsourced Company – Carat Media Taiwan Ltd. (“Carat Media”)

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

•  The Group engages Carat Media to provide communication planning, interactive marketing, direct marketing, event marketing, consumer research, and related services, including targeted advertising and behavioral advertising. In addition to requiring Carat Media to establish a comprehensive Privacy Policy, the Company mandates full compliance with Chunghwa Telecom’s Privacy Protection Policy and all related management procedures. Carat Media must also provide mechanisms ensuring lawful and explicit customer consent, data anonymization and security measures, as well as user control and opt-out options to safeguard customer privacy. For the complete Privacy Policy, please refer to the Carat Media official website.

●  Telecommunication Services ●  Software & IT Services

●  Data Privacy ●  Data Privacy & Freedom of Expression

TC-TL-220a.2 TC-SI-220a.2

Number of customers/users whose information was used for secondary purposes

Quantitative

Number

75.79% Note: The number of customers who consented to the use of their personal data for secondary purposes constitutes sensitive business information; therefore, it is disclosed in percentage terms.

●  Telecommunication Services ●  Software & IT Services

●  Data Privacy ●  Data Privacy & Freedom of Expression

TC-TL-220a.3 TC-SI-220a.3

Total amount of monetary losses as a result of legal proceedings associated with customer/user privacy

Quantitative

Presentation Currency

0. In 2025, no monetary losses incurred resulting from violations of laws related to customer privacy.

●  Telecommunication Services ●  Software & IT Services

●  Data Privacy ●  Data Privacy & Freedom of Expression

TC-TL-220a.4 TC-SI-220a.4

(1)  Number of law-enforcement requests for customer/user information (2)  Number of customers/users whose information was requested (3)  Percentage resulting in disclosure

Quantitative

Number, Percentage (%)

(1) 247,539 (2) 97,422 (3) 98.33%

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

●  Semiconductors ●  Software & IT Services

●  Recruitment and Management of a Global and Skilled Workforce ●  Recruitment & Management of a Global, Diverse, and Skilled Workforce

TC-SC-330a.1 TC-SI-330a.1

Percentage of employees requiring work visas

Quantitative

Percentage (%)

5.61%

●  Semiconductors ●  Software & IT Services

●  Water Management ●  Environmental Footprint of Hardware Infrastructure

TC-SC-140a.1 TC-SI-130a.2

(1)  Total water withdrawn, (2)  total water consumed; percentage of each in regions with High or Extremely High Baseline

Quantitative

thousand cubic meters (m³) Percentage (%)

(1) 253,626.30,0% (2) 156,810.30,0%

●  Telecommunication Services

●  Product End-of-Life Management

TC-TL-440a.1

(1)  Materials recovered through take-back programmes, percentage of recovered materials that were (2)  reused, (3)  recycled, and (4)  landfilled.

Quantitative

metric tonnes (t) Percentage (%)

(1) 16.91 (2) 89.37% (3) 0% (4) 10.63%

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

●  Telecommunication Services

●  Competitive Behavior & Open Internet

TC-TL-520a.1

Total amount of monetary losses as a result of legal proceedings associated with anti-competitive behavior regulations.

Quantitative

Presentation Currency

0. In 2025, there were no violations of regulations related to anti-competitive behavior.

●  Telecommunication Services

●  Competitive Behavior & Open Internet

TC-TL-520a.2

Average actual sustained download speed of (1)  owned and commercially associated content and (2)  non-associated content

Quantitative

Megabits per second (Mbps)

The Group provides consistent download speeds across all types of content. For the average actual download speeds, please refer to Table 5-2-1: Telecommunication Services – Average Actual Download Speeds in page 67, which details the speeds for fixed-line, data communication, and mobile communication.

●  Telecommunication Services

●  Competitive Behavior & Open Internet

TC-TL-520a.3

Description of risks and opportunities associated with net neutrality, paid peering, zero-rating, and related practices.

Discussion and Analysis

Not applicable.

1.  The Group adheres to Taiwan’s Digital Communication Act and Telecommunications Management Act, which require Internet Service Providers (ISPs) to disclose traffic management practices to users. ISPs with significant market power are prohibited from engaging in discriminatory treatment in the telecommunications services market. 2.  Article 13 of the Telecommunications Management Act sets out general regulations on interconnection agreements. Articles 30 and 31, along with their authorized regulations (i.e., the Regulations Governing Interconnection involving Significant Market Power), establish specific interconnection rules for entities with significant market power and other telecommunication enterprises.

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

Potential Risks and Opportunities Risks: •  The international Internet transit price continues to decline, reducing the willingness of local ISPs to establish interconnection agreements. •  Remote interconnection models have become a new trend at Internet Exchange Points (IXPs). Large international IXPs establish Points-of-Presence (POPs) closer to local ISPs, enabling direct connection to international traffic and bypassing local IXPs, which poses a threat to local ISP interconnection markets. •  The New Telecommunications Act continues to regulate wholesale pricing for dominant market players. Declining Internet transit prices year by year affect ISP interconnection revenue. •  Internet Data Centers (IDCs) are attracting more content service providers, reducing the demand for ISP interconnection. Opportunities: •  Domestic Internet Exchange Points in Taiwan may have insufficient interconnection trust, encouraging content service providers to explore bilateral interconnections with major operators and data centers. •  International content service providers strive to reduce network latency and improve user service quality by providing services closer to end-users. If a substantial local aggregation develops, it could increase interconnection demand for local small- and medium-sized ISPs. •  For details regarding the Taiwan Internet Exchange (TWIX), please refer to its official website. •  Chunghwa Telecom currently does not offer any zero-rating agreements.

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

●  Telecommunication Services

●  Managing Systemic Risks from Technology Disruptions

TC-TL-550a.1

(1)  System average interruption duration, (2)  system average interruption frequency and (3)  customer average interruption duration

Quantitative

Minutes, Quantity

(1) 8.19 (2) 0.03 (3) 270.39

●  Telecommunication Services

●  Managing Systemic Risks from Technology Disruptions

TC-TL-550a.2

Discussion of systems to provide uninterrupted service during service disruptions

Discussion and Analysis

Not applicable.

1.  In 2025, a total of four significant network outage incidents occurred: three were caused by careless excavation by road construction units, resulting in damage to critical optical cables, and one was due to the Subscriber Location Function (SLF) going online, which caused database corruption and led to mobile voice service disruptions. Key measures and explanations are as follows: (1)  Close communication with road authorities and construction units is maintained, including providing pipeline mapping data and reinforcing line inspections, to ensure existing pipelines are avoided during external excavation, thereby reducing the risk of cable damage. (2)  For fixed-line infrastructure with lower resilience (e.g., microwave stations), backup optical cable routes or satellite circuit backups are planned to reduce the risk of service interruption. (3)  The SLF malfunction caused service interruptions for 400,000 mobile customers, significantly increasing the metrics for Average System Downtime Duration (minutes) and Average System Interruption Frequency (times).

- 55 -

SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

(4)  A fail-safe mechanism has been implemented to prevent service disruptions during SLF synchronization operations. In the event of an SLF malfunction, mobile registration signaling bypasses the SLF and queries user subscription information directly from the Home Subscriber Server (HSS), ensuring uninterrupted service. To strengthen disaster prevention, improve disaster response capabilities, and minimize losses, the Group has established the “Disaster Protection Operation Guidelines.” 2.  The Group has also implemented “Emergency Disaster Response and Restoration Procedures” to address major disasters, including natural disasters, fires, explosions, and terrorist attacks, which may severely damage telecommunications network equipment. These procedures ensure emergency communication services in affected areas, minimizing service downtime. In the fixed-line communications segment, to prevent the escalation of disaster-related damage, we have reinforced the deployment of multi-route relay transmission in remote areas, wireless backup routing, expanded standby power capacity, and enhanced redundancy for both international and domestic submarine cable systems. These measures strengthen our overall disaster prevention and resilience capabilities. In addition, we conduct annual network and equipment dispatch and emergency repair drills to improve operational proficiency in disaster response and thereby reduce potential losses. Regarding mobile communications:    In the event that disasters cause disruptions to mobile communications, we have equipped 4WD off-road mobile base stations with high-orbit ST-2 or low-orbit OneWeb satellite antennas for signal transmission. These units can be rapidly deployed and set up based on on-site conditions in affected areas, enabling the swift restoration of mobile connectivity to the outside world.

- 56 -

SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

3.  For critical transportation corridors with single access points—such as the Suhua Highway, South-Link Highway, and Alishan Highway—we have not only reinforced 4G/5G base station infrastructure and mobile communication multilayer coverage along the routes, but also conduct regular disaster-prevention drills to ensure the stable operation of mobile communication networks. These efforts enhance the disaster resilience and robustness of the mobile network. In the data communications segment, the Group’s HiNet network adopts multi-route architecture with a highly reliable network redundancy mechanism, enabling real-time monitoring and traffic load balancing across all routes. For international routing, traffic is distributed across multiple submarine cable systems to prevent congestion or outages caused by single-route failures. Additionally, we collaborate with overseas carriers to increase direct international interconnection bandwidth, thereby improving the quality and stability of international internet connectivity.

●  Multiline and Specialty Retailers & Distributors

●  Product Sourcing, Packaging & Marketing

CG-MR-410a.1

Product Revenue with third-party certified environmental or social sustainability standards

Quantitative

Presentation Currency

NT$ 12.059 billion

- 57 -

SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

●  Multiline and Specialty Retailers & Distributors

●  Product Sourcing, Packaging & Marketing

CG-MR-410a.2

Discussion of processes to assess and manage risks or hazards associated with chemicals in products

Discussion and Analysis

Not applicable.

The Group is the largest distributor and agent of 3C products in Taiwan, and not a manufacturer of end-products. Nevertheless, we remain committed to minimizing potential health and safety risks to consumers. We assess and manage potential risks through the following measures to ensure that third-party products distributed and sold by our Group are subject to effective controls and adequate disclosure of chemical substances and hazardous materials: During the procurement process, we require suppliers/agents to fulfill their obligation to disclose product information and to provide declarations/certificates regarding the use of chemicals and hazardous substances in the products they represent or supply. Where feasible, suppliers must provide chemical control documentation or verification reports issued by original manufacturers or producers—such as REACH and RoHS certifications—so that our procurement teams can effectively implement chemical-related risk and hazard management. 1.  Chemical Management (1)  Chemical Usage Scenarios:    Currently, the Group primarily uses four types of chemicals in repair operations: isopropyl alcohol (IPA), cleaning agents, DOWSIL™ SE 9160 Adhesive, and EH9777BS. These chemicals are used for cleaning and bonding handheld smart devices. Isopropyl alcohol and cleaning agents: Used for cleaning functions such as fingerprint and ink removal on device casings, full-device cleaning and disinfection, removal of adhesive residues during lamination, cleaning solder flux on motherboards, and removing copper chloride corrosion caused by moisture intrusion. DOWSIL™ SE 9160 Adhesive and EH9777BS: Used for bonding processes, including the lamination of smartphone LCD panels.

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

(2)  Chemical Issuance and Control: •  Isopropyl alcohol and cleaning agents: Engineers request chemicals from warehouse custodians as needed during repair operations. The custodian dispenses the required quantity at the warehouse and distributes it to the requester. •  DOWSIL™ SE 9160 Adhesive and EH9777BS: Engineers request usage from the designated custodian. Upon verifying the legitimacy of the request, the custodian retrieves the items from controlled storage areas, records the issuance in the logbook, and distributes them to the requester. (3)  Operational Management Procedures:    As the largest 3C product distributor and agent in Taiwan—and not a manufacturer— the Group manages chemical-related consumer risks by requiring suppliers to provide chemical management/certification documents issued by product manufacturers as part of the procurement process. 2.  Enhanced Supplier Communication: Chemical Use Prioritization and Development of Substitutes    The Group communicates with suppliers regularly—such as through email—each year to emphasize consumers’ growing expectations for sustainable products. Upholding our green

- 59 -

SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

procurement principles, we encourage suppliers to produce or provide products that do not contain chemicals harmful to human health. We also expect suppliers to adopt eco-design principles during product design and manufacturing, using green chemicals to replace traditional chemical substances that may pose potential health risks. 3.  Disclosure of Complete Chemical Formulations for Products Sold    For all products we distribute or act as agent for, we require manufacturers and agents to comply with product labeling regulations applicable in the country of manufacture or import, ensuring that product information is clearly disclosed. 4.  Chemical Composition Verification (1)  The Group does not own any private-label brands; therefore, we do not maintain chemical composition testing mechanisms for in-house products. (2)  For third-party branded products, there is currently no mechanism to screen or select products that have obtained third-party chemical composition certifications. However, during procurement, we require suppliers or agents to fulfill their product information disclosure obligations and provide declarations or certificates regarding the use of chemicals and hazardous substances in supplied or represented products.

●  Multiline and Specialty Retailers & Distributors

●  Product Sourcing, Packaging & Marketing

CG-MR-410a.3

Discussion of strategies to reduce the environmental impact of packaging

Discussion and Analysis

Not applicable.

To reduce packaging used in warehousing and logistics, the Group utilizes appropriately sized corrugated cartons and environmentally friendly cushioning materials to prevent product damage caused by impact during transportation.

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

1.  Compliance with the Ministry of Environment’s “Entities Subject to Online Shopping Packaging Restrictions and Implementation Methods”: (1)  Implementation Requirements for Packaging Material Restrictions: •  Packaging materials must not contain polyvinyl chloride (PVC). •  The recycled content ratio of corrugated cartons (boxes), paperboard products, and molded pulp packaging used for paper-based packaging boxes (bags) must reach 90% or above. •  Plastic packaging boxes (bags) and cushioning materials must contain at least 25% recycled content. (2)  Product-to-Packaging Weight Ratio Requirements: •  For goods weighing 250 grams to less than 1 kilogram, the packaging weight ratio must be less than 40%. •  For goods weighing 1 kilogram to less than 3 kilograms, the packaging weight ratio must be less than 30%. •  For goods weighing 3 kilograms or more, the packaging weight ratio must be less than 15%. •  Packaging Weight Ratio= [Weight of Online Shopping Packaging Materials ÷ (Weight of Online Shopping Packaging Materials + Total Product Weight)] × 100%. 2.  Implementation Measures: (1)  No PVC-containing packaging materials are used; current materials include OPP (adhesive tape) and HDPE (cushioning materials for inner cartons). (2)  The recycled content ratio of corrugated cartons (boxes), paperboard products, and molded pulp used in paper-based packaging boxes (bags) has reached 95% or above.

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

(3)  Cushioning materials contain 30% recycled content and are certified under the Global Recycled Standard (GRS). (4)  Conduct statistical analysis of packaging weight ratio data and produce corresponding reports. Performance and Outcomes: (1)  Recognized by the Ministry of Environment as a certified Online Shopping Packaging Reduction Label enterprise. (A total of 22 B2C platforms in Taiwan have obtained this certification.) (2)  All current packaging materials used by the Group exceed the government’s regulatory requirements. (3)  Reduced waste generated from logistics packaging, thereby mitigating environmental impacts and resource consumption.

●  Software and Information Services

●  Environmental Footprint of Hardware Infrastructure

TC-SI-130a.3

Discussion on integrating environmental considerations into strategic planning for data center requirements

Discussion and Analysis

Not applicable.

The Group continues to enhance energy efficiency by implementing intelligent energy management systems, developing cloud computing technologies, and optimizing energy-saving equipment and electricity usage practices. In addition, when planning for equipment replacement or new procurement, priority is given to products with energy-efficient designs. Examples include high sensible-heat EC fan constant-temperature and humidity control units, the installation of chilled water flow energy-saving control systems on chillers, the replacement of cooling water pumps with variable-frequency drive (VFD) systems, and the establishment of an energy monitoring system to manage data center airflow efficiency (cold and hot aisle configuration) and other energy-saving measures.

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

●  Software and Information Services

●  Data Privacy & Freedom of Expression

TC-SI-220a.5

List of countries where core products or services are subject to government-mandated oversight, restrictions, content filtering, or censorship

Discussion and Analysis

Not applicable.

Currently not subject to government-mandated monitoring.

●  Software and Information Services

●  Recruitment and Managing a Global, Diverse, and Skilled Workforce

TC-SI-330a.2

Employee engagement as a percentage

Quantitative

Percentage (%)

81.43%

●  Software and Information Services

●  Recruitment and Managing a Global, Diverse, and Skilled Workforce

TC-SI-330a.3

Percentage of: (1)  gender and (2)  diversity group representation for (a)  executive management, (b)  non-executive management, (c)  technical employees, and (d)  all other employees

Quantitative

Percentage (%)

For employee headcount and percentages, please refer to Table 5-2-2: Recruitment and Management of a Global, Diverse, and Skilled Workforce in page 68.

●  Semiconductors

●  GHG emissions

TC-SC-110a.1

(1)  Total global scope 1 emissions, and (2)  total emissions from perfluorinated compounds (PFCs)

Quantitative

Metric tonness (t) CO₂-e

(1) 1,571.06 (2) 1050.20

●  Semiconductors

●  GHG emissions

TC-SC-110a.2

Discussion on long-term and short-term

Discussion and Analysis

Not applicable.

For subsidiaries applicable to the semiconductor industry, the base year is 2022, and they are committed to achieving a target of zero growth in GHG emissions by 2027.

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

strategies or plan to manage scope 1 emissions, emission reduction targets, and performance analysis against those targets

•  Scope 1 and Scope 2 carbon emissions in 2030 are projected to decrease by 8–15% compared with the base year.

●  Semiconductors

●  Waste Management

TC-SC-150a.1

(1)  Amount of hazardous waste from manufacturing, (2)  percentage recycled

Quantitative

metric tonnes (t), Percentage (%)

(1) 457.18 (2) 98.81%

●  Semiconductors

●  Product Lifecycle Management

TC-SC-410a.1

Percentage of product by revenue that contain IEC 62474 declarable substances

Quantitative

Percentage (%)

Not applicable. The Group does not report products under IEC 62474

●  Semiconductors

●  Product Lifecycle Management

TC-SC-410a.2

Processor energy efficiency at a system-level for: (1) servers, (2) desktops, and (3) laptop

Quantitative

Varies by Product Category

The Group does not manufacture servers, desktop computers, or laptop computers; therefore, this metric is not applicable to the Group’s products.

●  Semiconductors

●  Materials Sourcing

TC-SC-440a.1

Description of the management of risks associated with the use of critical materials

Discussion and Analysis

Not applicable.

Supplier Risk Identification: The Group conducts annual risk assessments of raw material suppliers to determine their risk levels. In 2025, a total of 26 suppliers underwent risk identification (4 key suppliers and 22 important suppliers), with evaluation criteria including quality, delivery performance, information security, and sustainability factors. Based on the risk assessment mechanism, certain supplier products were identified as requiring enhanced management. In accordance with the supplier risk assessment and rolling management principles, a Second Source mechanism was activated to ensure timely adjustment of supply allocations, thereby maintaining operational and quality stability.

- 64 -

SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

In 2025, all products supplied to customers by the Group were confirmed to be conflict-free metal products. During the manufacturing process, 29 raw materials containing gold, tin, tantalum, and cobalt were used. The Group conducted inquiries and surveys with the suppliers of these raw materials. All suppliers completed the CMRT to verify that the gold, tin, tantalum, and cobalt contained in the materials used for production originated from RMAP-audited conflict-free smelters/refiners. In 2025, no suppliers were found to be in violation or disqualified. Prohibited Substances: The Group promotes halogen-free raw materials for customer selection. Due to product requirements, some materials containing restricted substances are still used; however, in alignment with increasing environmental awareness and global sustainability trends, the Group actively develops and researches raw materials free of restricted substances. The Group has implemented an SCM Supplier Master Data Platform. When a new supplier is added, the procurement unit manages hazardous substances under RoHS and Halogen-Free (HF) requirements for direct raw materials, requiring suppliers to submit relevant test reports prior to ordering. The Group verifies report contents and validity, and green product test reports are incorporated into the supplier master data system for ongoing management.

- 65 -

SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

●  Telecommunication Services

●  Activity Metrics

TC-TL-000.A TC-TL-000.B TC-TL-000.C TC-TL-000.D

(1)  Number of wireless subscribers (2)  Number of wireline subscribers (3)  Number of broadband subscribers (4)  Network traffic

Quantitative

(1)  Number (10,000 subscribers) (2)  Number (10,000 subscribers) (3)  Number (10,000 subscribers) (4) Terabyte (TB)

(1)  1123.9 (2)  1,064.5 (Local network: 863.4; MOD: 201.1) (3)  824.1 (Broadband access: 444.9: Internet: 379.2) (4) (a) This information is confidential and cannot be disclosed. (b) Regarding network traffic data reported to the National Communications Commission (NCC), such as quarterly mobile internet traffic, fixed-network operator connection bandwidth and peak traffic volume, and annual fixed broadband internet traffic, all are considered trade secrets and cannot be provided. (c) For interconnection traffic statistics, please refer to the Internet Exchange Center statistics published by the National Communications Commission.

●  Multiline and Specialty Retailers & Distributors

●  Activity Metrics

CG-MR-000.A

(1)  Number of retail locations, and (2)  Number of distribution centers

Quantitative

Number Square meters (m2)

(1) 817 (2) 4

CG-MR-000.B

(1)  Total area of retail spaces, and (2)  Total area of distribution centers

(1) 96,488.96 (2) 9,897.54

●  Software & IT Services

●  Activity Metrics

TC-SI-000.A

(1)  Number of licensed or subscribed users, and (2)  Percentage cloud-based

Quantitative

(1) Quantity (2) Percentage (%)

For sales volume and sales value of software and information technology services, please refer to Table 5-2-3: Software & IT Services – Activity Indicators in page 68.

TC-SI-000.B

(1)  Data processing capacity, and (2)  Percentage outsourced

(1) Sales Volume (2) Percentage (%)

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SASB Standards

Topic

Code

Metrics

Category

Unit of Measurement

Amount/Description

TC-SI-000.C

(1)  Data storage volume, and (2)  Percentage outsourced

(1)  Terabyte (TB) (2)  Percentage (%)

●  Semiconductors

●  Activity Metrics

TC-SC-000.A TC-SC-000.B

Total production Percentage of production from owned facilities

Quantitative

Production Volume Percentage (%)

All sold products are manufactured at owned facilities (100%). For related production capacity and output, please refer to Table 5-2-4: Semiconductor – Activity Indicators in page 69.

Note 1: For certain metrics, due to data availability limitations, some activity data could not be obtained. Reasonably obtainable and supportable information as of the reporting date (including, where necessary, data from prior periods) was used for measurement and disclosure.

Table 5-2-1 Telecommunication Services – Average Actual Download Speed
1. Fixed Network and Data Communications – 2025 Measured Line Speeds for ADSL Broadband Installations and HiNet Internet Data Rates (Measured Monthy)
Internet Speed: bps (Download / Upload)		Line Rate: bps (Download / Upload) – 80% of Customer-Measured Values		Data Rate: bps (Download / Upload) – 80% of Customer-Measured Values (Measured Using Technicians’ Computers)
2M/64K		2.165~2.154M/80.000~78.000K		2.009~1.575M/73.000~63.000K
2. Fixed Network and Data Communications – 2025 Measured Line Speeds for FTTx Broadband Installations and HiNet Internet Data Rates (Measured Monthly)
Internet Speed: bps (Download / Upload)		Line Rate: bps (Download / Upload) – 80% of Customer-Measured Values		Data Rate: bps (Download / Upload) – 80% of Customer-Measured Values (Measured Using Technicians’ Computers)
16M/3M		17.145~17.008M/ 3.484~3.165M		16.259~14.680M/ 3.212~2.632M
35M/6M		37.759~37.205M/ 6.969~6.330M		35.690~32.195M/ 6.522~5.677M
100M/40M		116.930~100.035M/ 47.348~42.066M		110.569~93.188M/ 45.613~39.952M
300M/300M		334.845~334.845M/ 332.325~332.325M		316.004~299.470M/ 318.546~310.164M
500M/500M		558.075~558.075M/ 553.875~553.875M		527.362~507.552M/ 530.261~518.340M
1G/1G		1000.000~1000.000M/ 1000.000~1000.000M		948.166~894.032M/ 949.766~884.115M
2G/1G		2304.970~2304.970M/ 2295.000~2295.000M		2194.060~2109.400M/ 2167.060~2161.650M
3. Mobile Communications (Please refer to the official website)

- 67 -

Table 5-2-2 Recruitment and Management of a Global, Diverse, and Skilled Workforce
Unit: Number of Employees				Number of Employees		Percentage
Total Employees				1,826		100%
Senior Management		Male		66		3.61%
		Female		11		0.60
		Not disclosed.		-		0.00%
Non-Senior Management		Male		69		3.78%
		Female		26		1.42%
		Not disclosed.		-		0.00%
Technical Personnel		Male		789		43.21%
		Female		330		18.07%
		Not disclosed.		-		0.00%
All Other Employees		Male		158		8.65%
		Female		377		20.65%
		Not disclosed.		-		0.00%
Senior Management		Diverse Groups		-		0.00%
Non-Senior Management		Diverse Groups		3		0.16%
Technical Personnel		Diverse Groups		13		0.71%
All Other Employees		Diverse Groups		16		0.88%

Table 5-2-3 Software & IT Services–Activity Indicators
Sales Volume/Key Products		Sales Volume		Sales Value
IDC Data Center Services (Ping)		5,325		1,776,356
Data Network Services (Mbps)		1,408,253		1,470,353
Voice Communication Services (Minutes)		22,520,788		48,929

- 68 -

Table 5-2-3 Software & IT Services–Activity Indicators
Cloud Application Services (G)		2,629		648,027
Number of licenses or subscriptions		26,375		-
Total		N/A		3,943,665
Number of licenses or subscriptions; percentage based on cloud infrastructure				93.58%
Data processing capacity; percentage outsourced				0.00%
Number of licenses or subscriptions; percentage outsourced				0.00%

Table 5-2-4 Semiconductor – Activity Indicators
Product		Production Capacity		Production Volume
Wafer Test Card		24,049		25,143
IC Test Board		6,873		3,382
		30,922		28,525

- 69 -

Exhibit 99.2

Chunghwa Telecom Co., Ltd.

Parent Only Financial Statements for the

Years Ended December 31, 2025 and 2024 and

Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

PWCR25003504

To the Board of Directors and Stockholders of Chunghwa Telecom Co., Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of Chunghwa Telecom Co., Ltd. (the “Company”) as of December 31, 2025 and 2024, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policy information.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2025 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2025 parent company only financial statements are stated as follows:

Accuracy of revenues from mobile services, fixed-line broadband services and fixed-line data services

Description

Refer to Note 3 for the accounting policies on revenue recognition and Notes 27 and 40 for details of revenue.The Company recognizes revenues from mobile services, fixed-line broadband services and fixed-line data services based on the terms of mobile services, fixed-line broadband services and fixed-line data services contracts and actual usage of mobile services, fixed-line broadband services and fixed-line data services.

- 1 -

Given that revenues from mobile services, fixed-line broadband services and fixed-line data services are comprised of a high volume of low-dollar transactions from a large number of contracts and a wide variety of tariff plans, the Company highly relies on the automated information systems to process and recognize revenues from mobile services, fixed-line broadband services and fixed-line data services.

Given the Company’s revenues from mobile services, fixed-line broadband services and fixed-line data services are comprised of a high volume of low-dollar transactions and highly relies on information technology systems, a high degree of auditor effort was required in performing procedures related to accuracy of the Company’s revenues from mobile services, fixed-line broadband services and fixed-line data services. Thus, we consider the accuracy of revenues from mobile services, fixed-line broadband services and fixed-line data services as a key audit matter.

How our audit addressed the matter

Our audit procedures performed in respect of the above included the following:

1. Obtained an understanding over the design of internal controls and information systems related to the business process of the Company’s revenue recognition on mobile services, fixed-line broadband services and fixed-line data services and evaluated operating effectiveness of such controls. This includes the following procedures:

• Obtained an understanding and evaluated the significant systems related to revenues from mobile services, fixed-line broadband services and fixed-line data services, and tested the information technology general controls as well as the automated controls for automatic calculations and system interface over these systems.

• Tested manual controls related to the review of information on mobile services, fixed-line broadband services and fixed-line data services, including service acceptance, updates to price information, data collection and system interface, pricing, billing, and accounting processes.

2. Selected samples from mobile services, fixed-line broadband services and fixed-line data services revenues, agreed the samples selected to service contracts, invoices, payment records, and tested consistency between the data entered into the system and the original service contracts.

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Company’s financial reporting process.

- 2 -

Auditors’ responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

- 3 -

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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

For and on behalf of PricewaterhouseCoopers, Taiwan

February 26, 2026

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’ 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.

- 4 -

CHUNGHWA TELECOM CO., LTD.

BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

		2025								2024
ASSETS		Amount				%				Amount				%
CURRENT ASSETS
Cash and cash equivalents (Notes 3, 6 and 34)		$	24,577,441				5			$	25,028,261				5
Financial assets at fair value through profit or loss (Notes 3, 4 and 7)			3,204				—				27				—
Hedging financial assets (Notes 3 and 20)			3,204				—				1,133				—
Contract assets (Notes 3 and 27)			2,953,031				1				2,840,082				1
Trade notes and accounts receivable, net (Notes 3, 4, 10 and 27)			23,024,351				5				22,579,093				5
Receivables from related parties (Note 34)			857,886				—				904,400				—
Inventories (Notes 3, 4, 11 and 36)			6,841,525				1				6,093,041				1
Prepayments (Note 12)			2,518,958				—				2,218,834				—
Other current monetary assets (Notes 13, 25 and 34)			20,134,445				4				20,275,215				4
Other current assets (Note 19)			2,145,896				—				2,003,000				—
Total current assets			83,059,941				16				81,943,086				16
NONCURRENT ASSETS
Financial assets at fair value through profit or loss (Notes 3, 4 and 7)			1,129,933				—				957,548				—
Financial assets at fair value through other comprehensive income (Notes 3, 4 and 8)			6,341,812				1				4,446,650				1
Financial assets at amortized cost (Notes 3 and 9)			2,000,000				—				2,000,000				—
Investments accounted for using equity method (Notes 3 and 14)			23,653,467				5				22,818,526				5
Contract assets (Notes 3 and 27)			1,773,930				—				1,654,675				—
Property, plant and equipment (Notes 3, 4, 15, 31, 34 and 36)			276,047,930				55				277,555,283				55
Right-of-use assets (Notes 3, 4, 16 and 34)			9,894,116				2				10,060,020				2
Investment properties (Notes 3, 4 and 17)			12,523,874				2				12,471,985				2
Intangible assets (Notes 3, 4 and 18)			59,325,453				13				65,835,855				13
Deferred income tax assets (Notes 3 and 29)			1,633,448				—				1,516,083				—
Incremental costs of obtaining contracts (Notes 3 and 27)			9,981,190				2				9,631,413				2
Net defined benefit assets (Notes 3, 4 and 25)			9,804,829				2				8,831,611				2
Prepayments (Notes 12 and 36)			5,340,494				1				3,757,969				1
Other noncurrent assets (Notes 19, 35 and 36)			4,756,003				1				4,057,113				1
Total noncurrent assets			424,206,479				84				425,594,731				84
TOTAL		$	507,266,420				100			$	507,537,817				100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Hedging financial liabilities (Notes 3 and 20)		$	56				—			$	1,907				—
Contract liabilities (Notes 3 and 27)			18,549,710				4				14,123,368				3
Trade notes and accounts payable (Note 22)			11,089,872				2				12,373,111				2
Payables to related parties (Note 34)			4,375,535				1				4,738,525				1
Current tax liabilities (Notes 3 and 29)			4,586,870				1				4,147,707				1
Lease liabilities (Notes 3, 4, 16, 31 and 34)			3,493,065				1				3,168,016				1
Other payables (Notes 23 and 31)			23,132,432				5				21,544,689				4
Provisions (Notes 3 and 24)			401,912				—				325,812				—
Current portion of bonds payable (Notes 3 and 21)			1,899,856				—				8,798,880				2
Other current liabilities			921,552				—				940,377				—
Total current liabilities			68,450,860				14				70,162,392				14
NONCURRENT LIABILITIES
Bonds payable (Notes 3 and 21)			23,288,282				5				21,689,326				4
Contract liabilities (Notes 3, 27 and 36)			5,218,360				1				5,782,173				1
Deferred income tax liabilities (Notes 3 and 29)			2,757,622				1				2,605,414				1
Provisions (Notes 3 and 24)			546,632				—				509,177				—
Lease liabilities (Notes 3, 4, 16, 31 and 34)			6,525,855				1				6,872,331				1
Customers’ deposits (Note 34)			5,115,377				1				5,108,234				1
Net defined benefit liabilities (Notes 3, 4 and 25)			2,318,584				—				2,085,962				—
Other noncurrent liabilities			6,787,137				1				7,772,118				2
Total noncurrent liabilities			52,557,849				10				52,424,735				10
Total liabilities			121,008,709				24				122,587,127				24
EQUITY (Note 26)
Common stocks			77,574,465				15				77,574,465				15
Additional paid-in capital			172,450,886				34				171,587,279				34
Retained earnings
Legal reserve			77,574,465				15				77,574,465				15
Special reserve			2,675,419				1				2,675,419				1
Unappropriated earnings			54,962,307				11				54,953,379				11
Total retained earnings			135,212,191				27				135,203,263				27
Others			1,020,169				—				585,683				—
Total equity			386,257,711				76				384,950,690				76
TOTAL		$	507,266,420				100			$	507,537,817				100

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

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CHUNGHWA TELECOM CO., LTD.

STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

		2025								2024
		Amount				%				Amount				%
REVENUES (Notes 3, 27, 34 and 40)		$	197,721,867				100			$	192,942,916				100
OPERATING COSTS (Notes 3, 11, 25, 27, 28 and 34)			124,108,799				63				121,801,607				63
GROSS PROFIT			73,613,068				37				71,141,309				37
OPERATING EXPENSES (Notes 3, 10, 25, 28 and 34)
Marketing			20,346,936				10				19,365,397				10
General and administrative			5,833,821				3				5,484,110				3
Research and development			3,321,400				2				3,124,052				2
Expected credit loss			201,648				—				177,855				—
Total operating expenses			29,703,805				15				28,151,414				15
OTHER INCOME AND EXPENSES (Notes 15, 17, 28 and 40)			(112,371	)			—				123,305				—
INCOME FROM OPERATIONS			43,796,892				22				43,113,200				22
NON-OPERATING INCOME AND EXPENSES
Interest income (Notes 34 and 40)			724,926				—				611,483				—
Other income (Notes 8, 28 and 34)			368,509				—				319,117				—
Other gains and losses (Notes 14, 28, 33 and 34)			670,468				—				(216,979	)			—
Interest expense (Notes 16, 28, 34 and 40)			(301,287	)			—				(273,095	)			—
Share of profits of subsidiaries, associates and joint ventures accounted for using equity method (Notes 14 and 40)			2,155,060				1				2,050,828				1
Total non-operating income and expenses			3,617,676				1				2,491,354				1
INCOME BEFORE INCOME TAX			47,414,568				23				45,604,554				23
INCOME TAX EXPENSE (Notes 3 and 29)			8,702,164				4				8,384,090				4
NET INCOME			38,712,404				19				37,220,464				19

(Continued)

- 6 -

CHUNGHWA TELECOM CO., LTD.

STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

		2025								2024
		Amount				%				Amount				%
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit pension plans (Note 25)		$	92,346				—			$	2,225,453				1
Unrealized gain or loss on investments in equity instruments at fair value through other comprehensive income (Notes 3, 26 and 33)			534,577				—				63,749				—
Gain or loss on hedging instruments subject to basis adjustment (Notes 3 and 20)			3,922				—				(730	)			—
Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method (Notes 3, 14 and 26)			90,162				—				2,802				—
Income tax relating to items that will not be reclassified to profit or loss (Note 29)			(18,469	)			—				(445,091	)			—
			702,538				—				1,846,183				1
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations			(199,706	)			—				170,923				—
Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method (Note 14)			15,410				—				16,770				—
			(184,296	)			—				187,693				—
Total other comprehensive income, net of income tax			518,242				—				2,033,876				1
TOTAL COMPREHENSIVE INCOME		$	39,230,646				19			$	39,254,340				20
EARNINGS PER SHARE (Note 30)
Basic		$	4.99							$	4.80
Diluted		$	4.98							$	4.79

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

- 7 -

CHUNGHWA TELECOM CO., LTD.

STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

																						Others (Notes 20 and 26)
																										Unrealized Gain
																										or Loss on
																						Exchange				Financial Assets
																						Differences				at Fair Value
						Additional				Retained Earnings (Note 26)												Arising from the				through Other				Gain or Loss
		Common Stocks				Paid-in Capital												Unappropriated				Translation of the				Comprehensive				on Hedging
		(Note 26)				(Note 26)				Legal Reserve				Special Reserve				Earnings				Foreign Operations				Income				Instruments				Total Equity
BALANCE, JANUARY 1, 2024		$	77,574,465			$	171,289,086			$	77,574,465			$	2,898,503			$	52,618,677			$	(167,812	)		$	520,748			$	(44	)		$	382,308,088
Appropriation of 2023 earnings
Special reserve			—				—				—				(223,084	)			223,084				—				—				—				—
Cash dividends			—				—				—				—				(36,909,931	)			—				—				—				(36,909,931	)
Unclaimed dividend			—				2,109				—				—				—				—				—				—				2,109
Change in additional paid-in capital from investments in subsidiaries, associates and joint ventures accounted for using equity method			—				71,791				—				—				—				—				—				—				71,791
Actual disposal of interests in subsidiaries			—				224,293				—				—				—				—				—				—				224,293
Net income for the year ended December 31, 2024			—				—				—				—				37,220,464				—				—				—				37,220,464
Other comprehensive income (loss) for the year ended December 31, 2024			—				—				—				—				1,801,085				190,664				42,857				(730	)			2,033,876
Total comprehensive income (loss) for the year ended December 31, 2024			—				—				—				—				39,021,549				190,664				42,857				(730	)			39,254,340
BALANCE, DECEMBER 31, 2024			77,574,465				171,587,279				77,574,465				2,675,419				54,953,379				22,852				563,605				(774	)			384,950,690
Appropriation of 2024 earnings
Cash dividends			—				—				—				—				(38,787,232	)			—				—				—				(38,787,232	)
Unclaimed dividend			—				1,926				—				—				—				—				—				—				1,926
Change in additional paid-in capital from investments in subsidiaries, associates and joint ventures accounted for using equity method			—				221,825				—				—				—				—				—				—				221,825
Actual disposal of interests in subsidiaries			—				9,884				—				—				—				—				—				—				9,884
Change in additional paid-in capital for not participating in the capital increase of subsidiaries			—				629,972				—				—				—				—				—				—				629,972
Disposal of investments in equity instruments at fair value through other comprehensive income by subsidiaries			—				—				—				—				16				—				(16	)			—				—
Net income for the year ended December 31, 2025			—				—				—				—				38,712,404				—				—				—				38,712,404
Other comprehensive income (loss) for the year ended December 31, 2025			—				—				—				—				83,740				(214,531	)			645,111				3,922				518,242
Total comprehensive income (loss) for the year ended December 31, 2025			—				—				—				—				38,796,144				(214,531	)			645,111				3,922				39,230,646
BALANCE, DECEMBER 31, 2025		$	77,574,465			$	172,450,886			$	77,574,465			$	2,675,419			$	54,962,307			$	(191,679	)		$	1,208,700			$	3,148			$	386,257,711

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

- 8 -

CHUNGHWA TELECOM CO., LTD.

STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax		$	47,414,568			$	45,604,554
Adjustments for:
Depreciation			32,146,875				31,634,679
Amortization			6,561,327				6,595,302
Amortization of incremental costs of obtaining contracts			6,998,153				6,730,872
Expected credit loss			201,648				177,855
Valuation loss on financial assets and liabilities at fair value through profit or loss, net			96,851				143,102
Interest expense			301,287				273,095
Interest income			(724,926	)			(611,483	)
Dividend income			(271,772	)			(234,593	)
Share of profits of subsidiaries, associates and joint ventures accounted for using equity method			(2,155,060	)			(2,050,828	)
Loss on disposal of property, plant and equipment			28,782				15,895
Gain on disposal of intangible assets			(276	)			—
Gain on disposal of investments accounted for using equity method			(768,704	)			—
Provision for impairment loss and obsolescence of inventory			24,753				50,759
Impairment loss on property, plant and equipment			112,219				—
Reversal of impairment loss on investment properties			(28,354	)			(139,200	)
Others			(36,728	)			(64,475	)
Changes in operating assets and liabilities:
Decrease (increase) in:
Contract assets			(233,022	)			(648,066	)
Trade notes and accounts receivable			(642,067	)			(1,205,988	)
Receivables from related parties			46,514				11,115
Inventories			(773,139	)			(587,409	)
Prepayments			(170,763	)			(247,643	)
Other current assets			(142,896	)			231,481
Other current monetary assets			(1,280,013	)			148,010
Incremental cost of obtaining contracts			(7,347,930	)			(7,791,659	)
Increase (decrease) in:
Contract liabilities			3,862,529				1,650,468
Trade notes and accounts payable			(1,284,402	)			1,817,467
Payables to related parties			(362,990	)			595,350
Other payables			1,246,724				1,159,388
Provisions			113,555				121,737
Net defined benefit plans			(648,250	)			(652,165	)
Other current liabilities			(18,825	)			5,741
Cash generated from operations			82,265,668				82,733,361

(Continued)

- 9 -

CHUNGHWA TELECOM CO., LTD.

STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

		2025				2024
Interests paid		$	(294,924	)		$	(266,993	)
Income taxes paid			(8,246,627	)			(8,377,382	)
Net cash provided by operating activities			73,724,117				74,088,986
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income			(1,360,340	)			(282,780	)
Proceeds from capital reduction of financial assets at fair value through other comprehensive income			—				3,326
Acquisition of financial assets at amortized cost			—				(2,000,000	)
Acquisition of financial assets at fair value through profit or loss			(295,792	)			(158,909	)
Acquisition of investments accounted for using equity method			(125,255	)			(461,080	)
Proceeds from disposal of investments accounted for using equity method			877,865				—
Acquisition of property, plant and equipment			(26,637,981	)			(26,915,138	)
Proceeds from disposal of property, plant and equipment			20,212				11,787
Acquisition of intangible assets			(51,895	)			(162,161	)
Proceeds from disposal of intangible assets			342				—
Acquisition of investment properties			(7,060	)			(4,333	)
Acquisition of time deposits and negotiable certificates of deposit with maturities of more than three months			(51,210,668	)			(70,883,712	)
Proceeds from disposal of time deposits and negotiable certificates of deposit with maturities of more than three months			52,921,060				67,916,007
Increase in other noncurrent assets			(699,940	)			(235,656	)
Increase in prepayments for leases			(1,711,886	)			(1,400,074	)
Interests received			733,517				594,472
Cash dividends received from others			271,772				234,593
Cash dividends received from subsidiaries, associates and joint ventures accounted for using equity method			1,801,877				1,716,284
Proceeds from capital reduction and profit distribution of financial assets at fair value through profit or loss			23,379				42,514
Net cash used in investing activities			(25,450,793	)			(31,984,860	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of bonds			3,500,000				—
Repayment of bonds payable			(8,800,000	)			—
Payments for transaction costs attributable to the issuance of bonds			(4,985	)			—
Increase in customers’ deposits			7,143				21,465
Payments for the principal of lease liabilities			(3,669,086	)			(3,486,781	)
Increase (decrease) in other noncurrent liabilities			(984,981	)			279,278
Cash dividends paid			(38,787,232	)			(36,909,931	)

(Continued)

- 10 -

CHUNGHWA TELECOM CO., LTD.

STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

		2025				2024
Partial disposal of interests in subsidiaries without a loss of control		$	13,071			$	258,773
Unclaimed dividend			1,926				2,109
Net cash used in financing activities			(48,724,144	)			(39,835,087	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(450,820	)			2,269,039
CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR			25,028,261				22,759,222
CASH AND CASH EQUIVALENTS, END OF THE YEAR		$	24,577,441			$	25,028,261

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

- 11 -

CHUNGHWA TELECOM CO., LTD.

NOTES TO FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL

Chunghwa Telecom Co., Ltd. (“the Company”) was incorporated on July 1, 1996 in the Republic of China (“ROC”). The Company 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 the Company 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 the Company 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 the Company by reducing the government ownership to below 50% in various stages. In July 2000, the Company 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 the Company’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 the Company’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 the Company 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 the Company and completed the privatization plan.

The financial statements are presented in the Company’s functional currency, New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Board of Directors on February 26, 2026.

3. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

Statement of Compliance

The accompanying financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis of Preparation

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values and net defined benefit liabilities (assets) which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

- 12 -

When preparing the accompanying financial statements, the Company used equity method to account for its investment in subsidiaries, associates and joint ventures. In order for the amounts of the net profit, other comprehensive income and total equity in the parent company only financial statements to be the same with those amounts attributable to the owner of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatment between parent company only basis and consolidated basis were made to the captions of “investments accounted for using equity method”, “share of profit (loss) of subsidiaries, associates and joint ventures accounted for using equity method”, “share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method” and related equity items, as appropriate, in the parent company only financial statements.

Current and Noncurrent Assets and Liabilities

Current assets include:

a. Assets held primarily for the purpose of trading;

b. Assets expected to be realized within twelve months after the reporting period; and

c. Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

Current liabilities include:

a. Liabilities held primarily for the purpose of trading;

b. Liabilities due to be settled within twelve months after the reporting period; and

c. Liabilities for which the Company on the balance sheet date does not have in substance the right to defer settlement for at least twelve months after the reporting period.

Assets and liabilities that are not classified as current are classified as noncurrent.

Foreign Currencies

In preparing the Company’s financial statements, transactions in currencies other than the Company’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined and related exchange differences are recognized in profit or loss. Conversely, when the fair value changes were recognized in other comprehensive income, related exchange difference shall be recognized in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.

For the purpose of presenting financial statements, the assets and liabilities of the Company’s foreign operations (including those subsidiaries, associates and joint ventures in other countries or currencies used different with the Company) are translated into New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income.

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Cash Equivalents

Cash equivalents include those maturities within three months from the date of acquisition, highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value such as commercial paper, negotiable certificates of deposit, time deposits and stimulus vouchers. These cash equivalents are held for the purpose of meeting short-term cash commitments.

Inventories

Inventories are stated at the lower of cost or net realizable value item by item, except for those that may be appropriate to group items of similar or related inventories. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. The calculation of the cost of inventory is derived using the weighted-average method.

Investments Accounted for Using Equity Method

Investments in subsidiaries, associates and joint ventures are accounted for using equity method.

a. Investment in subsidiaries

Subsidiaries are the entities controlled by the Company.

Under the equity method, the investment in subsidiaries is initially recognized at cost and the increase or decrease of carrying amount reflects the recognition of the Company’s share of profit or loss and other comprehensive income of the subsidiaries after the date of acquisition. Besides, the Company also recognizes the Company’s share of the change in other equity of the subsidiaries.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company’s loss of control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amounts of the investment of the subsidiaries and the fair value of the consideration paid or received is recognized directly in equity.

When the Company loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (a) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (b) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Company accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Company directly disposed of the related assets or liabilities.

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the cost on initial recognition of an investment in an associate.

The acquisition cost in excess of the acquisition-date fair value of the identifiable net assets acquired is recognized as goodwill, which is included within the carrying amount of the investment and shall not be amortized. The acquisition-date fair value of the net identifiable assets acquired in excess of the acquisition cost is recognized immediately in profit or loss.

Unrealized profits and losses from downstream transactions with a subsidiary are eliminated in full. Profits and losses from upstream transactions with a subsidiary and sidestream transactions between subsidiaries are recognized in the Company’s financial statements only to the extent of interests in the subsidiary that are not related to the Company.

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b. Investments in associates and joint ventures

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor an interest in a joint venture. A joint venture is a joint arrangement whereby the Company and other parties that have joint control of the arrangement have rights to the net assets of the arrangement.

Under the equity method, an investment in an associate and a joint venture is initially recognized at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the associate and joint venture as well as the distribution received. The Company also recognizes its share in changes in the associates and joint ventures.

When the Company subscribes for new shares of an associate and a joint venture at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the associate and joint venture. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to additional paid-in capital. When the adjustment should be debited to additional paid-in capital but the additional paid-in capital recognized from investments accounted for using equity method is insufficient, the shortage is debited to retained earnings.

Any excess of the cost of acquisition over the Company’s share of the fair value of the identifiable net assets and liabilities of an associate and a joint venture at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and shall not be amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition is recognized immediately in profit or loss.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Company discontinues the use of the equity method from the date on which its investment ceases to be an associate and a joint venture. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate and joint venture attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate and joint venture. The Company accounts for all amounts previously recognized in other comprehensive income in relation to that associate and joint venture on the same basis as would be required had that associate and joint venture directly disposed of the related assets or liabilities.

When the Company transacts with its associate and joint venture, profits and losses resulting from the transactions with the associate and joint venture are recognized in the Company’s financial statements only to the extent of interests in the associate and joint venture that are not related to the Company.

Property, Plant and Equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

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Depreciation on property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. Freehold land is not depreciated. The estimated useful lives, residual values and depreciation method are reviewed at the end of each year, with the effect of any changes in estimate accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period in which the property is derecognized.

Investment Properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

For a transfer from the investment properties to property, plant and equipment, the deemed cost of the property, plant and equipment for subsequent accounting is its carrying amount at the commencement of owner-occupation.

For a transfer from the property, plant and equipment to investment properties, the deemed cost of the investment properties for subsequent accounting is its carrying amount at the end of owner-occupation.

On derecognition of the investment properties, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period in which the property is derecognized.

Intangible Assets

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. The residual value of an intangible asset with a finite useful life shall be assumed to be zero unless the Company expects to dispose of the intangible asset before the end of its economic life. Intangible assets with indefinite useful lives are measured at cost less accumulated impairment loss.

Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss in the period in which the asset is derecognized.

Impairment of Property, Plant and Equipment, Right-of-use Assets, Investment Properties, Intangible Assets and Incremental Costs of Obtaining Contracts

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use assets, investment properties and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

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Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

Impairment loss from the assets related to incremental cost of obtaining contracts is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Company expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services.

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

Financial Instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

a. Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

1) Measurement category

a) Financial assets at fair value through profit or loss (FVTPL)

Financial asset is classified as at FVTPL when the financial asset is mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at fair value through other comprehensive income (FVOCI).

Financial assets at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss does not incorporate any dividend earned on the financial asset. Fair value is determined in the manner described in Note 33.

b) Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

ii. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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Subsequent to initial recognition, financial assets at amortized cost are measured at amortized cost, which equals to gross carrying amount determined by the effective interest method less any impairment loss, except for short-term receivables as the effect of discounting is immaterial. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such financial assets.

c) Investments in equity instruments at FVOCI

On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVOCI. Designation at FVOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments. Instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

2) Impairment of financial assets and contract assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable) and contract assets.

The Company recognizes lifetime Expected Credit Loss (ECL) for accounts receivable and contract assets. For all other financial instruments, the Company recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.

Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

The Company recognizes an impairment loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

3) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.

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On derecognition of investments in equity instruments at FVOCI in its entirety, the cumulative gain or loss is directly transferred to retained earnings, and it is not reclassified to profit or loss.

b. Financial liabilities

1) Subsequent measurement

Except for financial liabilities at FVTPL, all the financial liabilities are subsequently measured at amortized cost using the effective interest method.

2) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

c. Derivative financial instruments

The Company enters into derivative financial instruments to manage its exposure to foreign exchange rate risks, including forward exchange contracts.

Derivatives are initially measured at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. When the fair value of derivative financial instruments is positive, the derivative is recognized as a financial asset; when the fair value of derivative financial instruments is negative, the derivative is recognized as a financial liability.

Hedge Accounting

The Company designates some derivatives instruments as cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.

The associated gains or losses that were recognized in other comprehensive income are reclassified from equity to profit or loss as a reclassification adjustment in the line item relating to the hedged item in the same period when the hedged item affects profit or loss. If a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the associated gains and losses that were recognized in other comprehensive income are removed from equity and are included in the initial cost of the non-financial asset or non-financial liability.

The Company discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated or exercised. The cumulative gain or loss on the hedging instrument that has been previously recognized in other comprehensive income from the period when the hedge was effective remains separately in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

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Provisions

Provisions are measured at the best estimate of the expenditure required to settle the Company’s obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. The provisions for warranties claims are made by management according to the sales agreements which represent the management’s best estimate of the future outflow of economic benefits. The provisions of warranties claims are recognized as operating cost in the period in which the goods are sold. 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. In assessing whether a contract is onerous, the cost of fulfilling a contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that are related directly to fulfilling contracts. The provision for decommissioning liabilities is recognized in accordance with the contractual requirements. The Company bears dismantling, removing the asset and restoring the site obligations for certain handsets base stations in the future. A provision is recognized for the costs to be incurred for fulfilling these obligations.

Revenue Recognition

The Company identifies the performance obligations in the contract with the customers, allocates transaction price to each performance obligation and recognizes revenue when performance obligations are satisfied.

Sales of products are recognized as revenue when the Company delivers products and the customer accepts and controls the product. Except for the consumer electronic products such as mobile devices sold in channel stores which are usually in cash sale, the Company recognizes revenues for sale of other electronic devices and corresponding trade notes and accounts receivable.

Usage revenues from fixed-line services (including local, domestic long distance and international long distance telephone services), mobile services, internet and data services, and interconnection and call transfer fees from other telecommunications companies and carriers are billed in arrears and are recognized based upon seconds or minutes of traffic processed when the services are provided in accordance with contract terms. The usage revenues and corresponding trade notes and accounts receivable are recognized monthly.

Other revenues are recognized as follows: (a) one-time subscriber connection fees (on fixed-line services) are first recognized as contract liabilities and revenues are recognized subsequently over the average expected customer service periods, (b) monthly fees (on fixed-line services, mobile, internet and data services) and related receivables are accrued monthly, and (c) prepaid services (fixed-line, mobile, internet and data services) are recognized as contract liabilities upon collection considerations from customers and are recognized as revenues subsequently based upon actual usage by customers.

Where the Company enters into transactions which involve both the provision of telecommunications service bundled with products such as handsets, total consideration received from products and telecommunications service in these arrangements are allocated based on their relative stand-alone selling price. The amount of sales revenue recognized for products is not limited to the amount paid by the customer for the products. When the amount of sales revenue recognized for products exceeded the amount paid by the customer for the products, the difference is recognized as contract assets. Contract assets are reclassified to accounts receivable when the amounts become collectible from customers subsequently. When the amount of sales revenue recognized for products was less than the amount paid by the customer for the products, the difference is recognized as contract liabilities and revenues are recognized subsequently when the telecommunications services are provided.

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For project business contracts, if a substantial part of the Company’s promise to customers is to manage and coordinate the various tasks and assume the risks of those tasks to ensure the individual goods or services are incorporated into the combined output, they are treated as a single performance obligation since the Company provides a significant integration service. The Company recognizes revenues and corresponding accounts receivable when the project business contract is completed and accepted by customers. For some project contracts, the Company does not create an asset with an alternative use to the Company and has an enforceable right to payment for performance completed to date; therefore, performance obligations are satisfied and revenues are recognized over time.

For service contracts such as maintenance and warranties, customers simultaneously receive and consume the benefits provided by the Company; thus revenues and corresponding accounts receivable of service contracts are recognized over the related service period.

When another party is involved in providing goods or services to a customer, the Company is acting as a principal if it controls the specified good or service before that good or service is transferred to a customer; otherwise, the Company is acting as an agent. When the Company is acting as a principal, gross inflow of economic benefits arising from transactions is recognized as revenue. When the Company is acting as an agent, revenue is recognized as its share of transaction.

Incremental Costs of Obtaining Contracts

Commissions and equipment subsidy related to telecommunications service as a result of obtaining contracts are recognized as an asset under the incremental costs of obtaining contracts to the extent the costs are expected to be recovered, and are amortized over the contract period. However, the Company elects not to capitalize the incremental costs of obtaining contracts if the amortization period of the assets that the Company otherwise would have recognized is expected to be one year or less.

Leasing

At inception of a contract, the Company assesses whether the contract is, or contains, a lease.

a. The Company as lessor

Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease.

b. The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for lease payments for low-value assets are recognized as expenses on a straight-line basis over the lease terms accounted for applying recognition exemption.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities and for lease payments made at or before the commencement date. Right-of-use assets are subsequently measured at cost less accumulated depreciation and accumulated impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented separately on the balance sheets.

Right-of-use assets are depreciated using the straight-line basis from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities were initially measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If such rate cannot be readily determined, the lessee’s incremental borrowing rate is used.

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Lease liabilities are subsequently measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. The Company accounts for the remeasurement of the lease liability as a result of the decrease of lease scope by decreasing the carrying amount of the right-of-use assets and recognizes in profit or loss any gain or loss on the partial or full termination of the lease. Lease liabilities are presented separately on the balance sheets.

Variable lease payments not depending on an index or a rate are recognized as expenses in the periods in which they are incurred.

Borrowing Costs

All borrowing costs are recognized in profit or loss in the period in which they are incurred.

Government Grants

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to government grants and that the grants will be received.

Government grants related to income are recognized in profit or loss on a systematic basis over the periods in which the Company recognizes expenses of the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the Company should construct noncurrent assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that become receivable as compensation for expenses or losses already incurred are recognized in profit or loss in the period in which they become receivable.

Employee Benefits

a. Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

b. Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost and gains or losses on settlements) and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising (a) actuarial gains and losses; and (b) the return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Company’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

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c. Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plan except that remeasurement is recognized in profit or loss.

Income Tax

Income tax expense represents the sum of the tax currently payable and deferred tax.

a. Current tax

According to the Income Tax Act in the ROC, an additional tax of unappropriated earnings is provided for in the year the stockholders approve to retain the earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

b. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Company’s financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused tax credits from purchases of machinery, equipment and technology, and research and development expenditures, etc. to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

c. Current and deferred tax

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income, in which case, the current and deferred tax are also recognized in other comprehensive income.

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Where current tax or deferred tax arises from the initial accounting for the acquisition of a subsidiary, the tax effect is included in the accounting for the investments in a subsidiary.

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.

a. Material accounting judgments

1) Principal versus agent

The Company’s project agreements are mainly to provide one or more customized equipment or services to customers. In order to fulfill the agreements, another party may be involved in some agreements. The Company considers the following factors to determine whether the Company is a principal of the transaction: whether the Company is the primary obligation provider of the agreements, its exposures to inventory risks and the discretion in establishing prices, etc. The determination of whether the Company is a principal or an agent will affect the amount of revenue recognized by the Company. Only when the Company is acting as a principal, gross inflows of economic benefits arising from transactions is recognized as revenue.

2) Control over subsidiaries

As discussed in Note 14, some entities are subsidiaries of the Company although the Company only owns less than 50% ownership interests in these entities. After considering the Company’s absolute size of holding in the entity and the relative size of and the dispersion of shares owned by the other stockholders, and the contractual arrangements between the Company and other investors, potential voting interests and the written agreement between stockholders, the management concluded that the Company has a sufficiently dominant voting interest to direct the relevant activities of the entity and therefore the Company has control over these entities.

b. Key sources of estimation uncertainty and assumption

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period. Actual results may differ from these estimates.

1) Impairment of trade notes and accounts receivable

The provision for impairment of trade notes and accounts receivable is based on assumptions on probability of default and expected credit loss rates. The Company uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’s past experience, current market conditions as well as forward looking information at the end of each reporting period. For details of the key assumptions and inputs used, see Note 10. Where the actual future cash flows are less than expected, a material impairment loss may arise.

2) Fair value measurements and valuation processes

For the assets and liabilities measured at fair value without quoted prices in active markets, the Company’s management determines the appropriate valuation techniques for the fair value measurements and whether to engage third party qualified appraisers based on the related regulations and professional judgments.

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Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities was disclosed in Note 33. If the actual changes of inputs in the future differ from expectation, the fair value may vary accordingly. The Company updates inputs periodically to monitor the appropriateness of the fair value measurement.

3) Provision for inventory valuation and obsolescence

Inventories are stated at the lower of cost or net realizable value. Net realizable value is calculated as the estimated selling price less the estimated costs necessary to make a sale. Comparison of net realizable value and cost is determined on an item by item basis, except for those similar items which could be categorized into the same groups. The Company uses the inventory holding period and turnover as the evaluation basis for inventory obsolescence losses.

4) Impairment of property, plant and equipment, right-of-use assets, investment properties and intangible assets

When an indication of impairment is assessed with objective evidence, the Company considers whether the recoverable amount of an asset is less than its carrying amount and recognizes the impairment loss based on difference between the recoverable amount and its carrying amount. The estimate of recoverable amount would impact on the timing and the amount of impairment loss recognition.

5) Useful lives of property, plant and equipment

As discussed in Note 3, “Summary of Material Accounting Policy Information—Property, Plant and Equipment”, the Company reviews estimated useful lives of property, plant and equipment at the end of each year.

6) Recognition and measurement of defined benefit plans

Net defined benefit liabilities (assets) and the resulting pension expense under defined benefit pension plans are calculated using the Projected Unit Credit Method. Actuarial assumptions comprise the discount rate, employee turnover rate, average future salary increase and etc. Changes in economic circumstances and market conditions will affect these assumptions and may have a material impact on the amount of the expense and the liability.

7) Lessees’ incremental borrowing rates

In determining a lessee’s incremental borrowing rate used in discounting lease payments, a risk-free rate for relevant duration and the same currency is selected as a reference rate. The lessee’s credit spread adjustments and lease specific adjustments are also taken into account.

5. APPLICATION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), International Financial Reporting Interpretations Committee Interpretations (IFRIC) and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC).

The initial application of the amendments to the IFRS, IAS, IFRIC and SIC issued by the International Accounting Standards Board and endorsed and issued into effect by the FSC (collectively, the “Taiwan-IFRSs”) does not have material impacts on the Company’s financial statements.

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b. The IFRSs endorsed by the FSC for application starting from 2026

New, Revised or Amended Standards and Interpretations				Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7		Amendments to the Classification and Measurement of Financial Instruments		January 1, 2026
Amendments to IFRS 9 and IFRS 7		Contracts Referencing Nature-Dependent Electricity		January 1, 2026
Amendments to IFRS Accounting Standards		Annual Improvements—Volume 11		January 1, 2026

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

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

New, Revised or Amended Standards and Interpretations				Effective Date Announced by IASB
Amendments to IFRS 10 and IAS 28		Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture		To be determined by IASB
IFRS 18		Presentation and Disclosure in Financial Statements		January 1, 2027 (Note)
IFRS 19		Subsidiaries without Public Accountability: Disclosures		January 1, 2027
Amendments to IAS 21		Translation to a Hyperinflationary Presentation Currency		January 1, 2027

Note : The FSC announced in a press release in September 2025 that public companies will apply IFRS 18 starting from fiscal year 2028. In addition, entities may choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses the standard.

IFRS 18 “Presentation and Disclosure in Financial Statements” will replace IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and guidance to enhance the principles of aggregation and disaggregation applying to the primary financial statements and notes.

Except for the above, as of the date the 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

		December 31
		2025				2024
Cash
Cash on hand		$	122,131			$	113,478
Bank deposits			11,509,956				5,811,284
			11,632,087				5,924,762

(Continued)

- 26 -

		December 31
		2025				2024
Cash equivalents (with maturities of less than three months)
Commercial paper		$	7,577,744			$	16,302,531
Time deposits			4,366,750				560
Negotiable certificates of deposit			1,000,000				2,800,000
Stimulus vouchers			860				408
			12,945,354				19,103,499
		$	24,577,441			$	25,028,261

(Concluded)

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

		December 31
		2025		2024
Bank deposits		0.03%~1.85%		0.00%~2.55%
Commercial paper		1.35%~1.46%		1.49%~1.56%
Time deposits		1.30%~1.73%		1.23%
Negotiable certificates of deposit		1.64%		1.55%~1.70%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

		December 31
		2025				2024
Financial assets - current
Mandatorily measured at FVTPL
Derivatives (not designated for hedge)
Forward exchange contracts		$	3,204			$	27
Financial assets - noncurrent
Mandatorily measured at FVTPL
Non-derivatives
Non-listed stocks - domestic		$	577,044			$	628,737
Non-listed stocks - foreign			11,080				15,575
Limited partnership - domestic			472,112				276,479
Other investing agreements			69,697				36,757
		$	1,129,933			$	957,548

The Company’s Board of Directors approved an investment in TRF 1 L.P. at the amount of $300,000 thousand in January 2025. As of December 31, 2025, the Company invested $120,000 thousand.

The Company’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 December 31, 2025, the Company invested $400,000 thousand.

- 27 -

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

						Contract Amount
		Currency		Maturity Period		(In Thousands)
December 31, 2025
Forward exchange contracts - buy		NT$/EUR		March 2026		NT$88,878/EUR2,500
December 31, 2024
Forward exchange contracts - buy		NT$/EUR		March 2025		NT$10,177/EUR300

The Company entered into the above forward exchange contracts to manage its exposure to foreign currency risk due to fluctuations in exchange rates. However, the aforementioned derivatives did not meet the criteria for hedge accounting.

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

		December 31
		2025				2024
Domestic investments
Non-listed stocks		$	4,842,695			$	3,779,334
Foreign investments
Non-listed stocks			1,499,117				667,316
		$	6,341,812			$	4,446,650

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.

The Company participated in the capital increase of KKCompany Technologies Inc. at the amount of $875,465 thousand in November 2025.

The Company recognized dividend income of $271,772 thousand and $234,593 thousand for the years ended December 31, 2025 and 2024, respectively, both of which were from the outstanding investments on December 31, 2025 and 2024, respectively.

9. FINANCIAL ASSETS AT AMORTIZED COST - NONCURRENT

		December 31
		2025				2024
Corporate bonds		$	2,000,000			$	2,000,000

The Company acquired the 10-year unsecured cumulative subordinated corporate bond of Fubon Life Insurance Co., Ltd. at the amount of $2,000,000 thousand in October 2024.

- 28 -

10. TRADE NOTES AND ACCOUNTS RECEIVABLE, NET

		December 31
		2025				2024
Trade notes and accounts receivable		$	24,170,331			$	23,688,829
Less: Loss allowance			(1,145,980	)			(1,109,736	)
		$	23,024,351			$	22,579,093

The main credit terms range from 30 to 90 days.

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

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

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

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

When there is evidence indicating that the counterparty is in evasion, bankruptcy, deregistration or the accounts receivable are over two years past due and the recoverable amount cannot be reasonable estimated, the Company writes off the trade notes and accounts receivable. For accounts receivable that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The Company’s provision matrix arising from telecommunications business and project business is disclosed below.

December 31, 2025

		Not Past Due				Past Due Less than 30 Days				Past Due 31 to 60 Days				Past Due 61 to 90 Days				Past Due 91 to 120 Days				Past Due 121 to 180 Days				Past Due over 180 Days				Total
Telecommunications business
Expected credit loss rate (Note a)			0%~1%				2%~21%				2%~67%				13%~84%				27%~91%				55%~96%				100%
Gross carrying amount		$	16,807,075			$	418,784			$	173,148			$	41,197			$	37,662			$	29,047			$	615,221			$	18,122,134
Loss allowance (lifetime ECL)			(52,137	)			(27,067	)			(31,146	)			(34,576	)			(30,721	)			(26,420	)			(615,221	)			(817,288	)
Amortized cost		$	16,754,938			$	391,717			$	142,002			$	6,621			$	6,941			$	2,627			$	—			$	17,304,846

(Continued)

- 29 -

		Not Past Due				Past Due Less than 30 Days				Past Due 31 to 60 Days				Past Due 61 to 90 Days				Past Due 91 to 120 Days				Past Due 121 to 180 Days				Past Due over 180 Days				Total
Project business
Expected credit loss rate (Note b)			0%~5%				5%				10%				30%				50%				80%				100%
Gross carrying amount		$	5,635,620			$	51,025			$	5,712			$	26,064			$	43,229			$	65			$	286,482			$	6,048,197
Loss allowance (lifetime ECL)			(2,477	)			(2,551	)			(571	)			(7,819	)			(28,740	)			(52	)			(286,482	)			(328,692	)
Amortized cost		$	5,633,143			$	48,474			$	5,141			$	18,245			$	14,489			$	13			$	—			$	5,719,505

(Concluded)

December 31, 2024

		Not Past Due				Past Due Less than 30 Days				Past Due 31 to 60 Days				Past Due 61 to 90 Days				Past Due 91 to 120 Days				Past Due 121 to 180 Days				Past Due over 180 Days				Total
Telecommunications business
Expected credit loss rate (Note a)			0%~1%				1%~22%				2%~68%				11%~84%				21%~92%				39%~96%				100%
Gross carrying amount		$	16,477,102			$	335,307			$	138,573			$	74,834			$	49,884			$	48,247			$	605,994			$	17,729,941
Loss allowance (lifetime ECL)			(51,501	)			(23,505	)			(34,429	)			(31,370	)			(33,080	)			(34,412	)			(605,994	)			(814,291	)
Amortized cost		$	16,425,601			$	311,802			$	104,144			$	43,464			$	16,804			$	13,835			$	—			$	16,915,650
Project business
Expected credit loss rate (Note b)			0%~5%				5%				10%				30%				50%				80%				100%
Gross carrying amount		$	5,547,739			$	44,167			$	82,518			$	3,204			$	1,242			$	44			$	279,974			$	5,958,888
Loss allowance (lifetime ECL)			(3,355	)			(2,215	)			(8,252	)			(993	)			(621	)			(35	)			(279,974	)			(295,445	)
Amortized cost		$	5,544,384			$	41,952			$	74,266			$	2,211			$	621			$	9			$	—			$	5,663,443

Note a: Please refer to Note 40 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:

		Year Ended December 31
		2025				2024
Beginning balance		$	1,109,736			$	1,078,773
Add: Provision for credit loss			191,600				169,874
Less: Amounts written off			(155,356	)			(138,911	)
Ending balance		$	1,145,980			$	1,109,736

- 30 -

11. INVENTORIES

		December 31
		2025				2024
Merchandise		$	1,179,884			$	1,960,035
Project in process			5,661,641				4,133,006
		$	6,841,525			$	6,093,041

The operating costs related to inventories were $30,664,479 thousand (including the inventory valuation and obsolescence losses of $24,753 thousand) and $28,426,992 thousand (including the inventory valuation and obsolescence losses of $50,759 thousand) for the years ended December 31, 2025 and 2024, respectively.

12. PREPAYMENTS

		December 31
		2025				2024
Prepayments for leases - satellite (Note 36)		$	4,841,078			$	3,129,192
Prepaid rents			829,737				910,253
Others			2,188,637				1,937,358
		$	7,859,452			$	5,976,803
Current
Prepaid rents		$	330,321			$	281,476
Others			2,188,637				1,937,358
		$	2,518,958			$	2,218,834
Noncurrent
Prepayments for leases - satellite (Note 36)		$	4,841,078			$	3,129,192
Prepaid rents			499,416				628,777
		$	5,340,494			$	3,757,969

Prepaid rents comprised the prepayments from the lease agreements applying the recognition exemption and the prepayments for leases that do not meet the definition of leases under IFRS 16.

13. OTHER CURRENT MONETARY ASSETS

		December 31
		2025				2024
Time deposits and negotiable certificates of deposit with maturities of more than three months		$	17,226,206			$	18,918,784
Receivables from the Fund for Privatization of Government - owned Enterprises under the Executive Yuan (Note 25)			1,088,979				12,215
Accrued custodial receipts			749,025				720,693
Others			1,070,235				623,523
		$	20,134,445			$	20,275,215

- 31 -

The annual yield rates of time deposits and negotiable certificates of deposit with maturities of more than three months at the balance sheet dates were as follows:

		December 31
		2025				2024
Time deposits and negotiable certificates of deposit with maturities of more than three months			1.40%~3.87%				1.55%~3.30%

14. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

		December 31
		2025				2024
Investments in subsidiaries		$	17,818,828			$	16,341,190
Investments in associates			5,825,556				6,468,085
Investments in joint venture			9,083				9,251
		$	23,653,467			$	22,818,526

a. Investments in subsidiaries

Investments in subsidiaries were as follows:

		Carrying Amount
		December 31
		2025				2024
Listed
Senao International Co., Ltd. (“SENAO”)		$	(195,606	)		$	(67,436	)
CHIEF Telecom Inc. (“CHIEF”)			2,210,297				2,333,846
CHT Security Co., Ltd. (“CHTSC”) (Note)			1,106,750				499,199
International Integrated Systems, Inc. (“IISI”) (Note)			764,721				654,315
Non-listed
Light Era Development Co., Ltd. (“LED”)			3,830,021				3,839,467
Chunghwa Investment Co., Ltd. (“CHI”)			3,736,466				3,167,570
Chunghwa Telecom Singapore Pte., Ltd. (“CHTS”)			1,349,725				1,282,150
Donghwa Telecom Co., Ltd. (“DHT”)			990,245				928,105
Chunghwa Telecom Global, Inc. (“CHTG”)			919,632				855,234
Honghwa International Co., Ltd. (“HHI”)			711,930				664,601
Chunghwa System Integration Co., Ltd. (“CHSI”)			689,976				695,078
Chunghwa Telecom Japan Co., Ltd. (“CHTJ”)			358,331				280,861
Chunghwa Leading Photonics Tech. Co., Ltd. (“CLPT”)			218,164				196,351
CHYP Multimedia Marketing & Communications Co., Ltd. (“CHYP”)			195,379				210,581
Prime Asia Investments Group Ltd. (“Prime Asia”)			180,965				183,762
Spring House Entertainment Tech. Inc. (“SHE”)			164,226				166,407
Chunghwa Telecom (Thailand) Co., Ltd. (“CHTT”)			163,667				149,832
CHT InventAI Co., Ltd. (“CHAI”)			119,237				—
Chunghwa Telecom Europe GmbH (“CHTEU”)			114,274				116,752

(Continued)

- 32 -

		Carrying Amount
		December 31
		2025				2024
Smartfun Digital Co., Ltd. (“SFD”)		$	86,103			$	84,284
Chunghwa Telecom Vietnam Co., Ltd. (“CHTV”)			76,025				76,320
Chunghwa Digital Cultural and Creative Capital Co., Ltd (“CDCC Capital”)			28,300				39,201
Chunghwa Sochamp Technology Inc. (“CHST”)			—				(15,290	)
		$	17,818,828			$	16,341,190

(Concluded)

Note: CHTSC and IISI were listed and traded on the TWSE in September and November 2025, respectively.

The percentages of ownership and voting rights in subsidiaries held by the Company as of balance sheet dates were as follows:

		% of Ownership and Voting Right
		December 31
		2025				2024
Senao International Co., Ltd. (“SENAO”)			28				28
CHIEF Telecom Inc. (“CHIEF”)			56				56
CHT Security Co., Ltd. (“CHTSC”)			57				63
International Integrated Systems, Inc. (“IISI”)			45				50
Light Era Development Co., Ltd. (“LED”)			100				100
Chunghwa Investment Co., Ltd. (“CHI”)			89				89
Chunghwa Telecom Singapore Pte., Ltd. (“CHTS”)			100				100
Donghwa Telecom Co., Ltd. (“DHT”)			100				100
Chunghwa Telecom Global, Inc. (“CHTG”)			100				100
Honghwa International Co., Ltd. (“HHI”)			100				100
Chunghwa System Integration Co., Ltd. (“CHSI”)			100				100
Chunghwa Telecom Japan Co., Ltd. (“CHTJ”)			100				100
Chunghwa Leading Photonics Tech. Co., Ltd. (“CLPT”)			62				70
CHYP Multimedia Marketing & Communications Co., Ltd. (“CHYP”)			100				100
Prime Asia Investments Group Ltd. (“Prime Asia”)			100				100
Spring House Entertainment Tech. Inc. (“SHE”)			56				56
Chunghwa Telecom (Thailand) Co., Ltd. (“CHTT”)			100				100
CHT InventAI Co., Ltd. (“CHAI”)			100				—
Chunghwa Telecom Europe GmbH (“CHTEU”)			100				100
Smartfun Digital Co., Ltd. (“SFD”)			65				65
Chunghwa Telecom Vietnam Co., Ltd. (“CHTV”)			100				100
Chunghwa Digital Cultural and Creative Capital Co., Ltd (“CDCC Capital”)			100				100
Chunghwa Sochamp Technology Inc. (“CHST”)			—				37

CLPT issued new shares in July 2024 and December 2025 as its employees exercised options. Therefore, the Company’s ownership interest in CLPT decreased to 69.87% and 62.03% as of December 31, 2024 and 2025, respectively.

- 33 -

IISI was listed in November 2025. The Company did not participate in the capital increase of its initial public offering through public underwriting and disposed of some shares of IISI in accordance with applicable regulations and the price stabilization mechanism. The Company disposed of some shares of IISI in August 2024 before IISI traded its shares on the emerging stock market according to the local requirements. Therefore, the Company’s ownership interest in IISI decreased to 49.64% and 44.53% as of December 31, 2024 and 2025, respectively. The Company continues to control more than half of seats of the Board of Directors of IISI. As a result, the Company treated IISI as a subsidiary.

The Company invested and established CHAI in October 2025. The Company obtained 100% ownership interest of CHAI. CHAI mainly engages in AI software, system development, application services, and enterprise consulting.

CHTSC conducted its initial public offering through public underwriting in September 2025, and the Company did not participate in the capital increase of CHTSC in accordance with applicable regulations. CHTSC issued new shares in January 2024, March 2024, December 2024, February 2025, May 2025 and August 2025 as its employees exercised options. In addition, the Company disposed of some shares of CHTSC in August 2024 before CHTSC traded its shares on the emerging stock market according to the local requirements. Therefore, the Company’s ownership interest in CHTSC decreased to 63.45% and 56.69% as of December 31, 2024 and 2025, respectively.

CHIEF issued new shares in December 2024 and March 2025 as its employees exercised options. Therefore, the Company’s ownership interest in CHIEF decreased to 55.64% and 55.63% as of December 31, 2024 and 2025, respectively.

The Company controlled more than half of seats of the Board of Directors of CHST as of December 31, 2024; therefore, the Company treated CHST as a subsidiary. The Company no longer had more than half of seats of the Board of Directors of CHST since January 2025. As a result, the Company lost control over CHST and recognized CHST as an investment in associate. The Company recognized the retained interest in CHST at the fair value on the date control was lost; therefore, the Company recognized the disposal gain of $15,290 thousand based on the difference between the fair value and the carrying amount. The disposal gain was included in other gains and losses in the consolidated statements of comprehensive income.

The Company invested and established CHTEU in July 2024. The Company obtained 100% ownership interest of CHTEU. CHTEU mainly engages in international private leased circuit, internet services, transit services and ICT services.

The Company invested and established CDCC Capital in February 2024. The Company obtained 100% ownership interest of CDCC Capital. CDCC Capital mainly engages in investment and management consulting.

The Company 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.

For the details of the subsidiaries indirectly held by the Company, please refer to Note 39.

The Company’s share of profit (loss) and other comprehensive income (loss) of the subsidiaries was recognized based on the audited financial statements.

- 34 -

b. Investments in associates

Investments in associates were as follows:

		Carrying Amount
		December 31
		2025				2024
Material associate
Non-listed
Next Commercial Bank Co., Ltd. (“NCB”)		$	3,591,348			$	3,950,922
Associates that are not individually material
Listed
KingwayTek Technology Co., Ltd. (“KWT”)			265,349				278,967
Non-listed
Viettel-CHT Co., Ltd. (“Viettel-CHT”)			581,860				573,275
Taiwan International Standard Electronics Co., Ltd. (“TISE”)			378,089				379,357
WiAdvance Technology Corporation (“WATC”)			260,570				273,440
Chunghwa PChome Fund I Co., Ltd. (“CPFI”)			252,258				252,625
Taiwania Hive Technology Fund L.P. (“TWTF”)			234,057				276,180
Taiwan International Ports Logistics Corporation (“TIPL”)			135,189				133,836
So-net Entertainment Taiwan Limited (“So-net”)			126,836				192,968
KKBOX Taiwan Co., Ltd. (“KKBOXTW”)			—				151,241
Cornerstone Ventures Co., Ltd. (“CVC”)			—				5,274
Chunghwa Sochamp Technology Inc. (“CHST”)			—				—
			2,234,208				2,517,163
		$	5,825,556			$	6,468,085

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
		December 31
		2025				2024
Material associate
Non-listed
Next Commercial Bank Co., Ltd. (“NCB”)			46				46
Associates that are not individually material
Listed
KingwayTek Technology Co., Ltd. (“KWT”)			23				23

(Continued)

- 35 -

		% of Ownership Interests and Voting Rights
		December 31
		2025				2024
Non-listed
Viettel-CHT Co., Ltd. (“Viettel-CHT”)			30				30
Taiwan International Standard Electronics Co., Ltd. (“TISE”)			40				40
WiAdvance Technology Corporation (“WATC”)			16				16
Chunghwa PChome Fund I Co., Ltd. (“CPFI”)			50				50
Taiwania Hive Technology Fund L.P. (“TWTF”)			40				42
Taiwan International Ports Logistics Corporation (“TIPL”)			27				27
So-net Entertainment Taiwan Limited (“So-net”)			30				30
KKBOX Taiwan Co., Ltd. (“KKBOXTW”)			—				30
Cornerstone Ventures Co., Ltd. (“CVC”)			—				49
Chunghwa Sochamp Technology Inc. (“CHST”)			37				—

(Concluded)

Summarized financial information of NCB was set out below:

		December 31
		2025				2024
Assets		$	65,359,868			$	48,636,633
Liabilities			(57,556,996	)			(40,043,113	)
Equity		$	7,802,872			$	8,593,520
The percentage of ownership interest held by the Company			46.26	%			46.26	%
Equity attributable to the Company		$	3,609,609			$	3,975,362
Unrealized gain or loss from downstream transactions			(18,261	)			(24,440	)
The carrying amount of investment		$	3,591,348			$	3,950,922
		Year Ended December 31
		2025				2024
Net revenues		$	329,686			$	313,834
Net loss for the year		$	(856,008	)		$	(747,135	)
Other comprehensive income (loss)			65,360				(6,421	)
Total comprehensive loss for the year		$	(790,648	)		$	(753,556	)

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:

		Year Ended December 31
		2025				2024
The Company’s share of profits		$	179,533			$	228,426
The Company’s share of other comprehensive income			9,066				16,320
The Company’s share of total comprehensive income		$	188,599			$	244,746

- 36 -

The Level 1 fair values of associate based on the closing market prices as of the balance sheet date was as follows:

		December 31
		2025				2024
KWT		$	794,988			$	896,747

The Company disposed of all its shares of KKBOXTW in November 2025. The Company received the proceeds from disposal of $872,839 thousand and recognized gain on disposal of $753,416 thousand under “other gains and losses” on the consolidated statements of comprehensive income.

CVC was approved to end and dissolve its business in November 2024, and CVC completed its liquidation in August 2025. The Company received the liquidation distribution of $5,026 thousand and recognized loss on disposal of $2 thousand under “other gains and losses” on the consolidated statements of comprehensive income.

CHST was approved to end and dissolve its business in July 2025.

KWT transferred its treasury stock repurchased from December 2019 to February 2020 to employees in October 2024. In addition, KWT repurchased its stock from April 2025 to May 2025. Therefore, the Company’s ownership interest in KWT changed to 22.58% and 22.78% as of December 31, 2024 and December 31, 2025, respectively.

The Company’s Board of Directors approved an investment in TWTF at the amount of USD 30,000 thousand in February 2024. The Company initially invested $288,405 thousand (USD 9,000 thousand) in TWTF in August 2024 and obtained 41.75% ownership interest. TWTF raised capital in multiple stages. New capital was received in April 2025, resulting in an increase in the fund size; therefore, the Company’s ownership interest in TWTF changed to 39.81% as of December 31, 2025. TWTF mainly engages in investment.

The Company did not participate in the capital increase of WATC in January 2024. WATC issued new shares in March 2024 and September 2024 as its employees exercised option. Therefore, the Company’s ownership interest in WATC decreased to 16.24% as of December 31, 2024. However, as the Company continues to control one out of five seats of the Board of Directors of WATC, the Company has significant influence over WATC.

Although the Company 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. The Company is not able to direct its relevant activities. Therefore, the Company does not have control over NCB and merely has significant influence over NCB and treats it as an associate.

The Company invested and obtained 50% ownership interest in CPFI. However, as the Company has only two out of five seats of the Board of Directors of CPFI, the Company has no control but significant influence over CPFI. Therefore, the Company recognized CPFI as an investment in associate.

The Company’s share of profits and other comprehensive income (loss) of associates was recognized based on the audited financial statements.

- 37 -

c. Investment in joint venture

Investment in joint venture was as follows:

		Carrying Amount								% of Ownership Interests and Voting Rights
		December 31								December 31
Name of Joint Venture		2025				2024				2025				2024
Non-listed
Chunghwa SEA Holdings(“CHT SEA”)		$	9,083			$	9,251				51				51

The Company invested and established a joint venture, CHT SEA, with Delta Electronics, Inc. and Kwang Hsing Industrial Co., Ltd. and obtained 51% ownership interest of CHT SEA. However, according to the mutual agreements among stockholders, the Company does not individually direct CHT SEA’s relevant activities and has joint control with the other party; therefore, the Company treated CHT SEA as a joint venture. CHT SEA was approved to end and dissolve its business in June 2025. The liquidation of CHT SEA is still in process.

The joint venture is not considered individually material to the Company. Summarized financial information of CHT SEA was set out below:

		Year Ended December 31
		2025				2024
The Company’s share of loss		$	(168	)		$	(212	)
The Company’s share of other comprehensive income			—				—
The Company’s share of total comprehensive loss		$	(168	)		$	(212	)

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

15. PROPERTY, PLANT AND EQUIPMENT

		December 31
		2025				2024
Assets used by the Company		$	270,660,388			$	272,732,179
Assets subject to operating leases			5,387,542				4,823,104
		$	276,047,930			$	277,555,283

a. Assets used by the Company

		Land				Land Improvements				Buildings				Computer Equipment				Telecommuni- cations Equipment				Transportation Equipment				Miscellaneous Equipment				Construction in Progress and Equipment to be Accepted				Total
Cost
Balance on January 1, 2024		$	99,173,616			$	1,709,236			$	67,297,697			$	10,341,298			$	717,365,792			$	4,037,555			$	8,728,711			$	13,745,856			$	922,399,761
Additions			—				—				—				243				23,079				47				—				26,873,416				26,896,785
Disposal			(382	)			(386	)			(18,360	)			(1,157,459	)			(26,955,118	)			(151,443	)			(439,344	)			—				(28,722,492	)
Others			(556,692	)			40,764				1,050,093				626,796				22,914,854				282,532				845,726				(25,124,827	)			79,246
Balance on December 31, 2024		$	98,616,542			$	1,749,614			$	68,329,430			$	9,810,878			$	713,348,607			$	4,168,691			$	9,135,093			$	15,494,445			$	920,653,300

(Continued)

- 38 -

		Land				Land Improvements				Buildings				Computer Equipment				Telecommuni- cations Equipment				Transportation Equipment				Miscellaneous Equipment				Construction in Progress and Equipment to be Accepted				Total
Accumulated depreciation and impairment
Balance on January 1, 2024		$	—			$	(1,507,932	)		$	(31,786,864	)		$	(8,723,504	)		$	(596,118,410	)		$	(3,647,628	)		$	(6,727,374	)		$	—			$	(648,511,712	)
Depreciation expense			—				(36,130	)			(1,287,209	)			(664,084	)			(25,221,452	)			(125,373	)			(478,520	)			—				(27,812,768	)
Disposal			—				386				16,598				1,157,459				26,948,410				151,443				420,514				—				28,694,810
Others			—				303				(155,277	)			(477	)			(7,374	)			(495	)			(128,131	)			—				(291,451	)
Balance on December 31, 2024		$	—			$	(1,543,373	)		$	(33,212,752	)		$	(8,230,606	)		$	(594,398,826	)		$	(3,622,053	)		$	(6,913,511	)		$	—			$	(647,921,121	)
Balance on January 1, 2024, net		$	99,173,616			$	201,304			$	35,510,833			$	1,617,794			$	121,247,382			$	389,927			$	2,001,337			$	13,745,856			$	273,888,049
Balance on December 31, 2024, net		$	98,616,542			$	206,241			$	35,116,678			$	1,580,272			$	118,949,781			$	546,638			$	2,221,582			$	15,494,445			$	272,732,179
Cost
Balance on January 1, 2025		$	98,616,542			$	1,749,614			$	68,329,430			$	9,810,878			$	713,348,607			$	4,168,691			$	9,135,093			$	15,494,445			$	920,653,300
Additions			—				—				4				—				8,778				—				2				26,939,122				26,947,906
Disposal			—				(1,186	)			(4,157	)			(989,253	)			(17,513,258	)			(425,842	)			(435,273	)			—				(19,368,969	)
Others			(355,545	)			46,100				(250,191	)			796,017				22,939,022				184,567				3,103,642				(27,288,487	)			(824,875	)
Balance on December 31, 2025		$	98,260,997			$	1,794,528			$	68,075,086			$	9,617,642			$	718,783,149			$	3,927,416			$	11,803,464			$	15,145,080			$	927,407,362
Accumulated depreciation and impairment
Balance on January 1, 2025		$	—			$	(1,543,373	)		$	(33,212,752	)		$	(8,230,606	)		$	(594,398,826	)		$	(3,622,053	)		$	(6,913,511	)		$	—			$	(647,921,121	)
Depreciation expense			—				(50,482	)			(1,293,175	)			(597,725	)			(25,531,265	)			(179,206	)			(528,913	)			—				(28,180,766	)
Disposal			—				1,186				4,157				989,253				17,510,892				425,842				388,645				—				19,319,975
Impairment loss			—				—				—				—				(112,219	)			—				—				—				(112,219	)
Others			—				—				180,154				(335	)			2,292,086				(1,747	)			(2,323,001	)			—				147,157
Balance on December 31, 2025		$	—			$	(1,592,669	)		$	(34,321,616	)		$	(7,839,413	)		$	(600,239,332	)		$	(3,377,164	)		$	(9,376,780	)		$	—			$	(656,746,974	)
Balance on January 1, 2025, net		$	98,616,542			$	206,241			$	35,116,678			$	1,580,272			$	118,949,781			$	546,638			$	2,221,582			$	15,494,445			$	272,732,179
Balance on December 31, 2025, net		$	98,260,997			$	201,859			$	33,753,470			$	1,778,229			$	118,543,817			$	550,252			$	2,426,684			$	15,145,080			$	270,660,388

(Concluded)

After the evaluation of certain telecommunications equipment, the Company determined that the recoverable amount of such assets was nil because the 3G network no longer provides telecommunications services; therefore, the Company recognized an impairment loss of $112,219 thousand for the year ended December 31, 2025. The aforementioned impairment loss was included in other income and expenses in the statements of comprehensive income.

There was no indication that property, plant and equipment was impaired; therefore, the Company did not recognize any impairment loss for the year ended December 31, 2024.

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

Land improvements			10~30 years
Buildings
Main buildings			35~60 years
Other building facilities			4~10 years
Computer equipment			4~6 years
Telecommunications equipment
Telecommunication circuits			10~15 years
Telecommunication machinery and antennas equipment			3~10 years
Transportation equipment			3~7 years
Miscellaneous equipment
Leasehold improvements			2~6 years
Mechanical and air conditioner equipment			5~16 years
Others			3~15 years

- 39 -

b. Assets subject to operating leases

		Land				Buildings				Total
Cost
Balance on January 1, 2024		$	4,757,656			$	4,112,159			$	8,869,815
Others			(1,801,861	)			(702,537	)			(2,504,398	)
Balance on December 31, 2024		$	2,955,795			$	3,409,622			$	6,365,417
Accumulated depreciation and impairment
Balance on January 1, 2024		$	—			$	(1,799,909	)		$	(1,799,909	)
Depreciation expense			—				(61,512	)			(61,512	)
Others			—				319,108				319,108
Balance on December 31, 2024		$	—			$	(1,542,313	)		$	(1,542,313	)
Balance on January 1, 2024, net		$	4,757,656			$	2,312,250			$	7,069,906
Balance on December 31, 2024, net		$	2,955,795			$	1,867,309			$	4,823,104
Cost
Balance on January 1, 2025		$	2,955,795			$	3,409,622			$	6,365,417
Others			332,361				439,721				772,082
Balance on December 31, 2025		$	3,288,156			$	3,849,343			$	7,137,499
Accumulated depreciation and impairment
Balance on January 1, 2025		$	—			$	(1,542,313	)		$	(1,542,313	)
Depreciation expense			—				(68,469	)			(68,469	)
Others			—				(139,175	)			(139,175	)
Balance on December 31, 2025		$	—			$	(1,749,957	)		$	(1,749,957	)
Balance on January 1, 2025, net		$	2,955,795			$	1,867,309			$	4,823,104
Balance on December 31, 2025, net		$	3,288,156			$	2,099,386			$	5,387,542

The Company leases out land and buildings with lease terms between 1 to 20 years. The lessees do not have bargain purchase options to acquire the assets at the expiry of the lease periods.

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

		December 31
		2025				2024
Year 1		$	388,814			$	387,965
Year 2			226,702				253,039
Year 3			146,412				139,341

(Continued)

- 40 -

		December 31
		2025				2024
Year 4		$	89,635			$	95,900
Year 5			61,920				64,966
Onwards			131,202				138,457
		$	1,044,685			$	1,079,668

(Concluded)

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			4~10 years

16. LEASE ARRANGEMENTS

a. Right-of-use assets

		December 31
		2025				2024
Land and buildings
Handsets base stations		$	7,690,181			$	7,652,086
Others			768,700				722,663
Equipment			1,435,235				1,685,271
		$	9,894,116			$	10,060,020
Additions to right-of-use assets		$	3,901,162			$	3,546,274
Depreciation charge for right-of-use assets
Land and buildings
Handsets base stations		$	3,040,197			$	3,009,577
Others			379,174				366,446
Equipment			433,191				339,604
		$	3,852,562			$	3,715,627

The Company did not have significant sublease or impairment of right-of-use assets for the years ended December 31, 2025 and 2024.

b. Lease liabilities

		December 31
		2025				2024
Lease liabilities
Current		$	3,493,065			$	3,168,016
Noncurrent			6,525,855				6,872,331
		$	10,018,920			$	10,040,347

- 41 -

Ranges of discount rates for lease liabilities were as follows:

		December 31
		2025				2024
Land and buildings
Handsets base stations			0.37%~2.00%				0.37%~2.00%
Others			0.37%~1.88%				0.37%~1.88%
Equipment			0.37%~1.73%				0.37%~1.68%

c. Important lease-in activities and terms

The Company mainly enters into lease-in agreements of land and buildings for handsets base stations located throughout Taiwan with lease terms ranging from 1 to 20 years. The lease agreements do not contain bargain purchase options to acquire the assets at the expiration of the respective leases. For majority of the lease-in agreements on handsets base station, the Company has the right to terminate the agreement prior to the expiration date if the Company is unable to build the required telecommunication equipment, either due to legal restrictions, controversial events, or other events.

The Company also leases land and buildings for the use of offices, server rooms, and stores with lease terms from 1 to 30 years. Most of the lease agreements for national land adjust the lease payment according to the changes of the announced land values by the authority. At the expiry of the lease term, the Company does not have bargain purchase options to acquire the assets.

The lease agreements for equipment include a contract between the Company 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 34 for details.

d. Other lease information

		Year Ended December 31
		2025				2024
Expenses relating to low-value asset leases		$	1,126			$	929
Expenses relating to variable lease payments not included in the measurement of lease liabilities		$	967			$	936
Total cash outflow for leases		$	3,801,933			$	3,593,319

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.

- 42 -

17. INVESTMENT PROPERTIES

		Investment Properties
Cost
Balance on January 1, 2024		$	11,332,100
Additions			4,333
Reclassification			2,426,527
Balance on December 31, 2024		$	13,762,960
Accumulated depreciation and impairment
Balance on January 1, 2024		$	(1,356,371	)
Depreciation expense			(44,772	)
Reversal of impairment loss			139,200
Reclassification			(29,032	)
Balance on December 31, 2024		$	(1,290,975	)
Balance on January 1, 2024, net		$	9,975,729
Balance on December 31, 2024, net		$	12,471,985
Cost
Balance on January 1, 2025		$	13,762,960
Additions			7,060
Reclassification			76,578
Balance on December 31, 2025		$	13,846,598
Accumulated depreciation and impairment
Balance on January 1, 2025		$	(1,290,975	)
Depreciation expense			(45,078	)
Reversal of impairment loss			28,354
Reclassification			(15,025	)
Balance on December 31, 2025		$	(1,322,724	)
Balance on January 1, 2025, net		$	12,471,985
Balance on December 31, 2025, net		$	12,523,874

After the evaluation of land and buildings by comparing the recoverable amount which represented the fair value less costs of disposal with the carrying amount, the Company recognized reversals of impairment losses of $28,354 thousand and $139,200 thousand for the years ended December 31, 2025 and 2024, respectively. The reversals of impairment losses were included in other income and expenses in the statements of comprehensive income.

- 43 -

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

Land improvements			15~30 years
Buildings
Main buildings			8~60 years
Other building facilities			10~35 years

The fair values of the Company’s investment properties as of December 31, 2025 and 2024 were determined by Level 3 fair value measurements inputs based on the appraisal reports conducted by independent appraisers. Those appraisal reports are based on the comparison approach, income approach or cost approach. Key assumptions and the fair values were as follows:

		December 31
		2025				2024
Fair value		$	44,571,746			$	42,636,110
Overall capital interest rate			1.54%~6.11%				1.47%~5.81%
Profit margin ratio			12%~20%				12%~20%
Discount rate			0%~10%				0%~10%
Capitalization rate			0.64%~1.59%				1.12%~2.13%

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:

		December 31
		2025				2024
Year 1		$	324,398			$	296,183
Year 2			287,210				271,193
Year 3			258,782				240,602
Year 4			251,893				216,712
Year 5			226,279				214,118
Onwards			1,537,833				1,710,215
		$	2,886,395			$	2,949,023

18. INTANGIBLE ASSETS

		Mobile Broadband Concession				Computer Software				Others				Total
Cost
Balance on January 1, 2024		$	109,963,431			$	1,966,576			$	47,421			$	111,977,428
Additions - acquired separately			—				160,730				1,431				162,161
Disposal			—				(309,202	)			(8,301	)			(317,503	)
Balance on December 31, 2024		$	109,963,431			$	1,818,104			$	40,551			$	111,822,086

(Continued)

- 44 -

		Mobile Broadband Concession				Computer Software				Others				Total
Accumulated amortization and impairment
Balance on January 1, 2024		$	(38,202,416	)		$	(1,478,065	)		$	(27,951	)		$	(39,708,432	)
Amortization expenses			(6,390,139	)			(197,084	)			(8,079	)			(6,595,302	)
Disposal			—				309,202				8,301				317,503
Balance on December 31, 2024		$	(44,592,555	)		$	(1,365,947	)		$	(27,729	)		$	(45,986,231	)
Balance on January 1, 2024, net		$	71,761,015			$	488,511			$	19,470			$	72,268,996
Balance on December 31, 2024, net		$	65,370,876			$	452,157			$	12,822			$	65,835,855
Cost
Balance on January 1, 2025		$	109,963,431			$	1,818,104			$	40,551			$	111,822,086
Additions - acquired separately			—				50,236				1,659				51,895
Disposal			—				(211,556	)			(1,932	)			(213,488	)
Other			—				—				(904	)			(904	)
Balance on December 31, 2025		$	109,963,431			$	1,656,784			$	39,374			$	111,659,589
Accumulated amortization and impairment
Balance on January 1, 2025		$	(44,592,555	)		$	(1,365,947	)		$	(27,729	)		$	(45,986,231	)
Amortization expenses			(6,390,138	)			(167,753	)			(3,436	)			(6,561,327	)
Disposal			—				211,556				1,866				213,422
Balance on December 31, 2025		$	(50,982,693	)		$	(1,322,144	)		$	(29,299	)		$	(52,334,136	)
Balance on January 1, 2025, net		$	65,370,876			$	452,157			$	12,822			$	65,835,855
Balance on December 31, 2025, net		$	58,980,738			$	334,640			$	10,075			$	59,325,453

(Concluded)

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

The computer software is amortized using the straight-line method over the estimated useful lives of 1 to 10 years. Other intangible assets, except for those assessed as having indefinite useful lives, are amortized using the straight-line method over the estimated useful lives of 3 to 11 years.

The Company did not recognize any impairment loss on intangible assets for the years ended December 31, 2025 and 2024.

- 45 -

19. OTHER ASSETS

		December 31
		2025				2024
Spare parts		$	2,136,948			$	1,995,652
Refundable deposits			1,518,486				1,547,611
Other financial assets			1,000,000				1,000,000
Prepayments for investments (Note 36)			640,000				—
Others			1,606,465				1,516,850
		$	6,901,899			$	6,060,113
Current
Spare parts		$	2,136,948			$	1,995,652
Others			8,948				7,348
		$	2,145,896			$	2,003,000
Noncurrent
Refundable deposits		$	1,518,486			$	1,547,611
Other financial assets			1,000,000				1,000,000
Prepayments for investments (Note 36)			640,000				—
Others			1,597,517				1,509,502
		$	4,756,003			$	4,057,113

Other financial assets - noncurrent was Piping Fund. As part of the government’s effort to upgrade the existing telecommunications infrastructure, the Company 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

The Company’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, the Company’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.

The Company 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.

- 46 -

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

December 31, 2025

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$ 88,878 /EUR 2,500

March 2026

$

35.55

Hedging financial assets (liabilities)

$

3,204

$

—

$

2,071

Forecast purchases - forward exchange contracts

NT$/EUR

NT$ 55,383 /EUR 1,500

January 2026

36.92

Hedging financial assets (liabilities)

—

56

1,851

		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		$	(3,922	)		$	3,148			$	—

December 31, 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

NT$ 341,036 /EUR 10,000

March 2025

$

34.10

Hedging financial assets (liabilities)

$

1,133

$

1,907

$

(730

)

		Change in Value of Hedged Item Used for				Accumulated Gain or Loss on Hedging Instruments in Other Equity
Hedged Items		Calculating Hedge Ineffectiveness				Continuing Hedges				Hedge Accounting No Longer Applied
Cash flow hedge
Forecast equipment purchases		$	730			$	(774	)		$	—

- 47 -

Year ended December 31, 2025

Comprehensive Income

Reclassification from Equity to Assets and the Adjusted Line Item

Hedge Transaction

Hedging Gain or Loss Recognized in OCI

Amount of Hedge Ineffectiveness Recognized in Profit or Loss

Line Item in 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

$

3,922

$

—

—

$ 1,570 Construction in progress and equipment to be accepted

$  —  Other gains and losses

Year ended December 31, 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

$

(730

)

$

—

—

$  (2,029) Construction in progress and equipment to be accepted

$  —  Other gains and losses

21. BONDS PAYABLE

		December 31
		2025				2024
Unsecured domestic bonds		$	25,200,000			$	30,500,000
Less: Discounts on bonds payable			(11,862	)			(11,794	)
			25,188,138				30,488,206
Less: Current portion			(1,899,856	)			(8,798,880	)
		$	23,288,282			$	21,689,326

- 48 -

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

Issuance		Tranche		Issuance Period		Total Amount				Coupon Rate				Repayment and Interest Payment
2020-1		A		July 2020 to July 2025		$	8,800,000				0.50	%		One-time repayment upon maturity; interest payable annually
		B		July 2020 to July 2027			7,500,000				0.54	%		The same as above
		C		July 2020 to July 2030			3,700,000				0.59	%		The same as above
2021-1		A		April 2021 to April 2026			1,900,000				0.42	%		The same as above
		B		April 2021 to April 2028			4,100,000				0.46	%		The same as above
		C		April 2021 to April 2031			1,000,000				0.50	%		The same as above
2022-1 (Sustainable Bond)		-		March 2022 to March 2027			3,500,000				0.69	%		The same as above
2025-1 (Sustainable Bond)		-		August 2025 to August 2030			3,500,000				1.73	%		The same as above

22. TRADE NOTES AND ACCOUNTS PAYABLE

		December 31
		2025				2024
Trade notes and accounts payable		$	11,089,872			$	12,373,111

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

23. OTHER PAYABLES

		December 31
		2025				2024
Accrued salary and compensation		$	8,878,770			$	8,393,666
Payables to contractors			2,456,737				2,257,342
Accrued compensation to employees and remuneration to directors and supervisors			2,153,743				1,972,050
Amounts collected for others			1,819,920				1,728,914
Accrued maintenance costs			1,181,769				1,112,694
Payables to equipment suppliers			473,956				393,359
Others			6,167,537				5,686,664
		$	23,132,432			$	21,544,689

24. PROVISIONS

		December 31
		2025				2024
Decommissioning liabilities		$	300,562			$	—
Employee benefits			242,849				402,565
Onerous contracts			242,243				255,373
Warranties			153,425				163,477
Others			9,465				13,574
		$	948,544			$	834,989
Current		$	401,912			$	325,812
Noncurrent			546,632				509,177
		$	948,544			$	834,989

- 49 -

		Decommissioning liabilities				Employee Benefits				Onerous Contracts				Warranties				Others				Total
Balance on January 1, 2024		$	—			$	374,067			$	178,712			$	157,406			$	3,067			$	713,252
Additional / (reversal of) provisions recognized			—				30,993				76,661				34,992				11,101				153,747
Used / forfeited during the year			—				(2,495	)			—				(28,921	)			(594	)			(32,010	)
Balance on December 31, 2024		$	—			$	402,565			$	255,373			$	163,477			$	13,574			$	834,989
Balance on January 1, 2025		$	—			$	402,565			$	255,373			$	163,477			$	13,574			$	834,989
Additional / (reversal of) provisions recognized			300,562				57,254				(13,130	)			5,857				(200	)			350,343
Used / forfeited during the year			—				(216,970	)			—				(15,909	)			(3,909	)			(236,788	)
Balance on December 31, 2025		$	300,562			$	242,849			$	242,243			$	153,425			$	9,465			$	948,544

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

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

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

d. The provision for decommissioning liabilities represents the Company bears dismantling, removing the asset and restoring the site obligations for certain handsets base stations in the future. A provision is recognized for the costs to be incurred for dismantling, removing the asset and restoring the site.

25. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The pension plan under the Labor Pension Act of ROC (the “LPA”) is considered as a defined contribution plan. Based on the LPA, the Company makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The Company completed its privatization plans on August 12, 2005. The Company is required to pay all accrued pension obligations including service clearance payment, lump sum payment under civil service plan, additional separation payments, etc. upon the completion of the privatization in accordance with the Statute Governing Privatization of Stated-owned Enterprises. After paying all pension obligations for privatization, the plan assets of the Company should be transferred to the Fund for Privatization of Government-owned Enterprises (the “Privatization Fund”) under the Executive Yuan. On August 7, 2006, the Company transferred the remaining balance of fund to the Privatization Fund. However, according to the instructions of MOTC, the Company was requested to administer the distributions to employees for pension obligations including service clearance payment, lump sum payment under civil service plan, additional separation payments, etc. upon the completion of the privatization and recognized in other current monetary assets.

- 50 -

The Company with the pension mechanism under the Labor Standards Law in the ROC is considered as defined benefit plans. These pension plans provide benefits based on an employee’s length of service and average six-month salary prior to retirement. The Company contributes an amount no more than 15% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the names of the Committees in the Bank of Taiwan. The plan assets are held in a commingled fund which is operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the funds. According to the Article 56 of the Labor Standards Law, entities are required to contribute the difference in one appropriation to their pension funds before the end of next March when the balance of the Funds is insufficient to pay the eligible employees who meet the retirement criteria in the following year.

The amounts included in the balance sheets arising from the Company’s obligation in respect of its defined benefit plans were as follows:

		December 31
		2025				2024
Present value of funded defined benefit obligations		$	27,049,319			$	27,731,063
Fair value of plan assets			(34,535,564	)			(34,476,712	)
Funded status - surplus		$	(7,486,245	)		$	(6,745,649	)
Net defined benefit liabilities		$	2,318,584			$	2,085,962
Net defined benefit assets			(9,804,829	)			(8,831,611	)
		$	(7,486,245	)		$	(6,745,649	)

- 51 -

Movements in the defined benefit obligation and the fair value of plan assets were as follows:

		Present Value of Funded Defined Benefit Obligations				Fair Value of Plan Assets				Net Defined Benefit Liabilities (Assets)
Balance on January 1, 2024		$	30,048,947			$	33,916,979			$	(3,868,032	)
Current service cost			903,348				—				903,348
Interest expense / interest income			368,528				418,268				(49,740	)
Amounts recognized in profit or loss			1,271,876				418,268				853,608
Remeasurement on the net defined benefit liability
Return on plan assets (excluding amounts included in net interest)			—				3,081,661				(3,081,661	)
Actuarial gain recognized from changes in financial assumptions			(371,652	)			—				(371,652	)
Actuarial loss recognized from experience adjustments			1,227,860				—				1,227,860
Amounts recognized in other comprehensive income			856,208				3,081,661				(2,225,453	)
Contributions from employer			—				1,239,442				(1,239,442	)
Benefits paid			(4,179,638	)			(4,179,638	)			—
Benefits paid directly by the Company			(266,330	)			—				(266,330	)
Balance on December 31, 2024			27,731,063				34,476,712				(6,745,649	)
Current service cost			810,227				—				810,227
Interest expense / interest income			466,004				596,984				(130,980	)
Amounts recognized in profit or loss			1,276,231				596,984				679,247
Remeasurement on the net defined benefit liability
Return on plan assets (excluding amounts included in net interest)			—				2,379,624				(2,379,624	)
Actuarial gain recognized from changes in demographic assumptions			(7,285	)			—				(7,285	)
Actuarial loss recognized from changes in financial assumptions			802,229				—				802,229
Actuarial loss recognized from experience adjustments			1,492,334				—				1,492,334
Amounts recognized in other comprehensive income			2,287,278				2,379,624				(92,346	)
Contributions from employer			—				1,104,094				(1,104,094	)
Benefits paid			(4,021,850	)			(4,021,850	)			—
Benefits paid directly by the Company			(223,403	)			—				(223,403	)
Balance on December 31, 2025		$	27,049,319			$	34,535,564			$	(7,486,245	)

Relevant pension costs recognized in profit and loss for defined benefit plans were as follows:

		Year Ended December 31
		2025				2024
Operating costs		$	319,799			$	415,434
Marketing expenses			253,641				313,406
General and administrative expenses			61,652				73,253
Research and development expenses			28,744				32,489
		$	663,836			$	834,582

The Company is exposed to following risks for the defined benefits plans under the Labor Standards Law:

a. Investment risk

Under the Labor Standards Law, the rate of return on assets shall not be lower than the average interest rate on a two-year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return. The plan assets are held in a commingled fund mainly invested in foreign and domestic equity and debt securities and bank deposits which is operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the funds.

- 52 -

b. Interest rate risk

The decline in government bond interest rate will increase the present value of the obligation on the defined benefit plan, while the return on plan assets will increase. The net effect on the present value of the obligation on defined benefit plan is partially offset by the return on plan assets.

c. Salary risk

The calculation of the present value of defined benefit obligation is referred to the plan participants’ future salary. Hence, the increase in plan participants’ salary will increase the present value of the defined benefit obligation.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out by the independent actuary. The principal assumptions used for the purpose of the actuarial valuations were as follows:

		Measurement Date
		December 31
		2025				2024
Discount rates			1.50%				1.75%
Expected rates of salary increase			2.50%				2.25%

If reasonably possible changes of the respective significant actuarial assumptions occur at the end of reporting periods, while holding all other assumptions constant, the present values of the defined benefit obligations would increase (decrease) as follows:

		December 31
		2025				2024
Discount rates
0.5% increase		$	(713,371	)		$	(780,047	)
0.5% decrease		$	879,350			$	825,198
Expected rates of salary increase
0.5% increase		$	946,085			$	893,483
0.5% decrease		$	(781,802	)		$	(852,079	)

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. There is no change in the methods and assumptions used in preparing the sensitivity analysis from the previous period.

		December 31
		2025				2024
The expected contributions to the plan for the next year		$	1,091,519			$	1,219,330
The average duration of the defined benefit obligation			6.5 years				6.0 years

- 53 -

As of December 31, 2025, the Company’s maturity analysis of the undiscounted benefit payments was as follows:

Year		Amount
2026		$	2,373,745
2027			3,916,262
2028			3,465,363
2029			2,757,667
2030 and thereafter			12,151,614
		$	24,664,651

26. EQUITY

a. Share capital

1) Common stocks

		December 31
		2025				2024
Number of authorized shares (thousand)			12,000,000				12,000,000
Authorized shares		$	120,000,000			$	120,000,000
Number of issued and paid shares (thousand)			7,757,447				7,757,447
Issued shares		$	77,574,465			$	77,574,465

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

2) Global depositary receipts

The MOTC and some stockholders sold some common stocks of the Company 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 December 31, 2025, the outstanding ADSs were 186,374 thousand common stocks, which equaled 18,637 thousand units and represented 2.40% of the Company’s total outstanding common stocks.

The ADS holders generally have the same rights and obligations as other common stockholders, subject to the provision of relevant laws. The exercise of such rights and obligations shall comply with the related regulations and deposit agreement, which stipulate, among other things, that ADS holders are entitled to, through deposit agents:

a) Exercise their voting rights,

b) Sell their ADSs, and

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

- 54 -

b. Additional paid-in capital

The adjustments of additional paid-in capital for the years ended December 31, 2025 and 2024 were as follows:

		Share Premium				Movements of Additional Paid-in Capital for Associates and Joint Ventures Accounted for Using Equity Method				Movements of Additional Paid-in Capital Arising from Changes in Equities of Subsidiaries				Difference between Consideration Received or Paid and Carrying Amount of the Subsidiaries’ Net Assets during Actual Disposal or Acquisition				Donated Capital				Stockholders’ Contribution due to Privatization				Total
Balance on January 1, 2024		$	147,329,386			$	151,952			$	2,144,727			$	987,607			$	27,336			$	20,648,078			$	171,289,086
Unclaimed dividend			—				—				—				—				2,109				—				2,109
Change in additional paid-in capital from investments in subsidiaries, associates and joint ventures accounted for using equity method			—				71,883				—				—				—				—				71,883
Actual disposal of interests in subsidiaries			—				—				406				223,887				—				—				224,293
Changes in equities of subsidiaries			—				—				(92	)			—				—				—				(92	)
Balance on December 31, 2024			147,329,386				223,835				2,145,041				1,211,494				29,445				20,648,078				171,587,279
Unclaimed dividend			—				—				—				—				1,926				—				1,926
Change in additional paid-in capital from investments in subsidiaries, associates and joint ventures accounted for using equity method			—				(5,929	)			—				225,668				—				—				219,739
Actual disposal of interests in subsidiaries			—				—				1,824				8,060				—				—				9,884
Change in additional paid-in capital for not participating in the capital increase of subsidiaries			—				—				629,972				—				—				—				629,972
Changes in equities of subsidiaries			—				—				2,086				—				—				—				2,086
Balance on December 31, 2025		$	147,329,386			$	217,906			$	2,778,923			$	1,445,222			$	31,371			$	20,648,078			$	172,450,886

Additional paid-in capital from share premium, donated capital and the difference between 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, which however is limited to a certain percentage of the Company’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.

- 55 -

c. Retained earnings and dividends policy

In accordance with the the Company’s Articles of Incorporation, the Company 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 the Company’s total issued capital, and depending on its business needs or requirements, may also set aside or reverse special reserves. No less than 50% of the remaining earnings comprising remaining balance of net income, if any, plus cumulative undistributed earnings shall be distributed as stockholders’ dividends, of which cash dividends to be distributed shall not be less than 50% of the total amount of dividends to be distributed. If cash dividend to be distributed is less than $0.10 per share, such cash dividend shall be distributed in the form of common stocks.

The Company should appropriate a special reserve when the net amount of other equity items is negative at the end of reporting period upon the earnings distribution. Distributions can be made out of any subsequent reversal of the debit to other equity items.

The appropriation for legal reserve shall be made until the accumulated reserve equals the aggregate par value of the outstanding capital stock of the Company. This reserve can only be used to offset a deficit, or, when the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of the 2024 and 2023 earnings of the Company approved by the stockholders in their meetings on May 29, 2025 and May 31, 2024 were as follows:

		Appropriation of Earnings								Dividends Per Share (NT$)
		For Fiscal Year 2024				For Fiscal Year 2023				For Fiscal Year 2024				For Fiscal Year 2023
Reversal of special reserve		$	—			$	(223,084	)
Cash dividends			38,787,232				36,909,931			$	5.000			$	4.758

The appropriations of earnings for 2025 had been proposed by Chunghwa’s Board of Directors on, 2026. The appropriations and dividends per share were as follows:

		Appropriation of Earnings				Dividends Per Share (NT$)
Cash dividends		$	40,338,722			$	5.200

The appropriations of earnings for 2025 are subject to the resolution of the stockholders’ meeting planned to be held on May 29, 2026. Information of the appropriation of the Company’s earnings proposed by the Board of Directors and approved by the stockholders is available on the Market Observation Post System website.

d. Others

1) Exchange differences arising from the translation of the foreign operations

The exchange differences arising from the translation of the foreign operations from their functional currency to New Taiwan dollars were recognized as exchange differences arising from the translation of the foreign operations in other comprehensive income.

- 56 -

2) Unrealized gain or loss on financial assets at FVOCI

		Year Ended December 31
		2025				2024
Beginning balance		$	563,605			$	520,748
Recognized for the year
Unrealized gain or loss
Equity instruments			534,577				63,749
Share of profits (loss) of subsidiaries, associates and joint ventures accounted for using equity method			110,534				(20,892	)
Transferred accumulated gain or loss to unappropriated earnings resulting from the disposal of equity instruments by subsidiaries			(16	)			—
Ending balance		$	1,208,700			$	563,605

27. REVENUES

		Year Ended December 31
		2025				2024
Revenue from contracts with customers		$	195,061,719			$	190,261,382
Other revenues
Government grants income			1,333,574				1,392,143
Rental income			1,110,917				1,094,737
Others			215,657				194,654
			2,660,148				2,681,534
		$	197,721,867			$	192,942,916

For the information of performance obligations related to customer contracts, please refer to Note 3 Summary of Material Accounting Policy Information for details.

a. Disaggregation of revenue

Please refer to Note 40 Segment Information for details.

b. Contract balances

		December 31, 2025				December 31, 2024				January 1, 2024
Trade notes and accounts receivable (Note 10)		$	23,024,351			$	22,579,093			$	21,501,983
Contract assets
Products and service bundling		$	4,168,068			$	3,991,761			$	3,577,392
Others			571,085				514,370				280,673
Less: Loss allowance			(12,192	)			(11,374	)			(9,460	)
		$	4,726,961			$	4,494,757			$	3,848,605

(Continued)

- 57 -

		December 31, 2025				December 31, 2024				January 1, 2024
Current		$	2,953,031			$	2,840,082			$	2,378,557
Noncurrent			1,773,930				1,654,675				1,470,048
		$	4,726,961			$	4,494,757			$	3,848,605
Contract liabilities
Telecommunications business		$	12,277,513			$	12,262,334			$	12,232,712
Project business			10,859,229				7,125,999				5,617,069
Advance house and land receipts (Note 36)			114,020				114,020				—
Others			517,308				403,188				405,292
		$	23,768,070			$	19,905,541			$	18,255,073
Current		$	18,549,710			$	14,123,368			$	12,518,134
Noncurrent			5,218,360				5,782,173				5,736,939
		$	23,768,070			$	19,905,541			$	18,255,073

(Concluded)

The Board of Directors of the Company resolved to sign a joint construction with separate sale and partition contract for the Datong S. Sec., Sanchong Dist., New Taipei City project with LED in August 2021. The Company classified the land of the project as investment properties. Regarding the project, the Company has signed the house and land presale contracts with customers and has received payments in accordance with the contracts. Please refer to Note 36 for details.

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. Significant changes of contract assets and liabilities recognized resulting from product and service bundling were as follows:

		Year Ended December 31
		2025				2024
Contract assets
Net increase of customer contracts		$	3,162,490			$	3,291,980
Reclassified to trade receivables			(3,006,542	)			(2,864,384	)
		$	155,948			$	427,596
Contract liabilities
Net increase of customer contracts		$	77,628			$	67,512
Recognized as revenues			(82,196	)			(70,680	)
		$	(4,568	)		$	(3,168	)

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.

- 58 -

Revenue recognized for the year that was included in the contract liability at the beginning of the year was as follows:

		Year Ended December 31
		2025				2024
Telecommunications business		$	6,763,590			$	6,689,634
Project business			4,582,897				4,061,895
Others			290,405				226,887
		$	11,636,892			$	10,978,416

c. Incremental costs of obtaining contracts

		December 31
		2025				2024
Noncurrent
Incremental costs of obtaining contracts		$	9,981,190			$	9,631,413

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 telecommunications service contracts are expected to be recoverable; therefore, such costs were capitalized. Amortization expenses for the years ended December 31, 2025 and 2024 were $6,998,153 thousand and $6,730,872 thousand, respectively.

d. Remaining Performance Obligations

As of December 31, 2025, the aggregate amount of transaction price allocated to performance obligations for non-cancellable telecommunications service contracts that are unsatisfied is $52,297,792 thousand. The Company recognizes revenue when service is provided over contract terms. The Company expects to recognize such revenue of $30,067,246 thousand, $16,161,159 thousand and $6,069,387 thousand in 2026, 2027 and 2028, respectively. The variable consideration collected from customers on nonrecurring basis resulting from exceeded usage from monthly fee and revenue recognized for contracts that the Company has a right to consideration from customers in the amount corresponding directly with the value to the customers of the Company’s performance completed to date have been excluded from the disclosure of remaining performance obligations.

As of December 31, 2025, the aggregate amount of transaction price allocated to performance obligations for non-cancellable project business contracts that are unsatisfied is $34,357,614 thousand. The Company recognizes revenues when the project business contract is completed and accepted by customers. The Company expects to recognize such revenue of $17,950,159 thousand, $9,439,733 thousand and $6,967,722 thousand in 2026, 2027 and 2028, respectively. Project business contracts whose expected duration are less than a year have been excluded from the aforementioned disclosure.

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28. NET INCOME

a. Other income and expenses

		Year Ended December 31
		2025				2024
Loss on disposal of property, plant and equipment, net		$	(28,782	)		$	(15,895	)
Impairment loss on property, plant and equipment			(112,219	)			—
Reversal of impairment loss on investment properties			28,354				139,200
Gain on disposal of intangible assets, net			276				—
		$	(112,371	)		$	123,305

b. Other income

		Year Ended December 31
		2025				2024
Dividend income		$	271,772			$	234,593
Others			96,737				84,524
		$	368,509			$	319,117

c. Other gains and losses

		Year Ended December 31
		2025				2024
Foreign currency exchange gain (loss), net		$	29,199			$	(64,862	)
Valuation loss on financial assets and liabilities at fair value through profit or loss, net			(96,851	)			(143,102	)
Gain on disposal of subsidiaries, net			15,290				—
Gain on disposal of associates, net			753,414				—
Others			(30,584	)			(9,015	)
		$	670,468			$	(216,979	)

d. Interest expenses

		Year Ended December 31
		2025				2024
Interest on bonds payable		$	169,087			$	167,760
Interest on lease liabilities			130,754				104,673
Others			1,446				662
		$	301,287			$	273,095

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e. Impairment loss (reversal of impairment loss)

		Year Ended December 31
		2025				2024
Contract assets		$	818			$	1,914
Trade notes and accounts receivable		$	191,600			$	169,874
Other receivables		$	9,230			$	6,067
Inventories		$	24,753			$	50,759
Property, plant and equipment		$	112,219			$	—
Investment properties		$	(28,354	)		$	(139,200	)

f. Depreciation and amortization expenses

		Year Ended December 31
		2025				2024
Property, plant and equipment		$	28,249,235			$	27,874,280
Right-of-use assets			3,852,562				3,715,627
Investment properties			45,078				44,772
Intangible assets			6,561,327				6,595,302
Incremental costs of obtaining contracts			6,998,153				6,730,872
Total depreciation and amortization expenses		$	45,706,355			$	44,960,853
Depreciation expenses summarized by functions
Operating costs		$	30,684,880			$	30,227,718
Operating expenses			1,461,995				1,406,961
		$	32,146,875			$	31,634,679
Amortization expenses summarized by functions
Operating costs		$	13,463,701			$	13,211,153
Marketing expenses			67,881				68,483
General and administrative expenses			11,477				27,499
Research and development expenses			16,421				19,039
		$	13,559,480			$	13,326,174

g. Employee benefit expenses

		Year Ended December 31
		2025				2024
Post-employment benefit
Defined contribution plans		$	695,648			$	575,315
Defined benefit plans			663,836				834,582
			1,359,484				1,409,897
Other employee benefit
Salaries			18,685,519				18,140,047
Insurance			2,211,593				2,082,752
Others			15,616,414				14,070,595
			36,513,526				34,293,394
Total employee benefit expenses		$	37,873,010			$	35,703,291

(Continued)

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		Year Ended December 31
		2025				2024
Summary by functions
Operating costs		$	18,987,575			$	18,122,028
Operating expenses			18,885,435				17,581,263
		$	37,873,010			$	35,703,291

(Concluded)

According to the amendments to the Company’s Articles of Incorporation approved by the Company’s stockholders in their meeting on May 31, 2024, the distribution rate of employees’ compensation increased from 1.7% to 4.3% of pre-tax income to 2% to 5% of pre-tax income, while the distribution rate of directors’ remuneration remained at no more than 0.17%. According to the amendments to the Company’s Articles of Incorporation approved by the Company’s stockholders in their meeting on May 29, 2025, no less than 20% of the total employees’ compensation shall be distributed to non-executive employees. As of December 31, 2025, the payables of the employees’ compensation and the remuneration to directors were $2,111,610 thousand and $42,133 thousand, respectively. Such amounts have been approved by the Company’s Board of Directors on, 2026 and will be reported to the stockholders in their meeting planned to be held on May 29, 2026.

If there is a change in the proposed amounts after the annual financial statements are authorized for issue, the difference is recorded as a change in accounting estimate.

The compensation to the employees and remuneration to the directors of 2024 and 2023 approved by the Board of Directors on February 26, 2025 and February 23, 2024, respectively, were as follows:

		Cash
		2024				2023
Compensation distributed to the employees		$	1,931,610			$	1,522,481
Remuneration paid to the directors			40,440				39,797

There was no difference between the initial accrued amounts recognized in 2024 and 2023 and the amounts approved by the Board of Directors in 2025 and 2024 of the aforementioned compensation to employees and the remuneration to directors.

Information of the appropriation of the Company’s employees compensation and remuneration to directors and those approved by the Board of Directors is available on the Market Observation Post System website.

29. INCOME TAX

a. Income tax recognized in profit or loss

The major components of income tax expense were as follows:

		Year Ended December 31
		2025				2024
Current tax
Current tax expenses recognized for the year		$	8,681,688			$	8,358,943
Income tax adjustments on prior years			—				(134,281	)

(Continued)

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		Year Ended December 31
		2025				2024
Others		$	4,102			$	3,893
			8,685,790				8,228,555
Deferred tax
Deferred tax expenses recognized for the year			16,374				155,535
Income tax expense recognized in profit or loss		$	8,702,164			$	8,384,090

(Concluded)

Reconciliation of accounting profit and income tax expense was as follows:

		Year Ended December 31
		2025				2024
Income before income tax		$	47,414,568			$	45,604,554
Income tax expense calculated at the statutory rate		$	9,482,914			$	9,120,911
Nondeductible income and expenses in determining taxable income			8,281				10,938
Tax-exempt income			(620,628	)			(434,926	)
Investment credits			(219,522	)			(194,802	)
Income tax adjustments on prior years			—				(134,281	)
Others			51,119				16,250
Income tax expense recognized in profit or loss		$	8,702,164			$	8,384,090

The applicable tax rate used by the Company is 20%.

b. Income tax recognized in other comprehensive income

		Year Ended December 31
		2025				2024
Deferred tax
Remeasurement on defined benefit pension plan		$	18,469			$	445,091

c. Current tax liabilities

		December 31
		2025				2024
Current tax liabilities
Income tax payable		$	4,586,870			$	4,147,707

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d. Deferred income tax assets and liabilities

The movements of deferred income tax assets and liabilities were as follows:

For the year ended December 31, 2025

		Beginning Balance				Recognized in Profit or Loss				Recognized in Other Comprehensive Income				Ending Balance
Deferred income tax assets
Temporary differences
Defined benefit pension plan		$	1,048,065			$	12,299			$	(18,469	)		$	1,041,895
Allowance for doubtful receivables over quota			117,456				40,000				—				157,456
Valuation loss on financial assets			73,920				19,370				—				93,290
Impairment loss on assets			59,573				22,310				—				81,883
Estimated decommissioning liabilities			—				60,112				—				60,112
Valuation loss on onerous contracts			45,575				2,873				—				48,448
Inventory valuation and obsolescence losses			46,399				(1,213	)			—				45,186
Seniority bonus			72,911				(31,943	)			—				40,968
Estimated warranty liabilities			32,695				(2,010	)			—				30,685
Unrealized foreign exchange loss, net			—				19,270				—				19,270
Accrued award credits liabilities			14,822				(1,931	)			—				12,891
Deferred revenue			4,667				(4,667	)			—				—
Others			—				1,364				—				1,364
		$	1,516,083			$	135,834			$	(18,469	)		$	1,633,448
Deferred income tax liabilities
Temporary differences
Defined benefit pension plan		$	2,397,195			$	141,949			$	—			$	2,539,144
Deferred revenue for award credits			111,653				11,839				—				123,492
Land value incremental tax			94,986				—				—				94,986
Unrealized foreign exchange gain, net			1,580				(1,580	)			—				—
		$	2,605,414			$	152,208			$	—			$	2,757,622

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For the year ended December 31, 2024

		Beginning Balance				Recognized in Profit or Loss				Recognized in Other Comprehensive Income				Ending Balance
Deferred income tax assets
Temporary differences
Defined benefit pension plan		$	1,482,865			$	10,291			$	(445,091	)		$	1,048,065
Allowance for doubtful receivables over quota			142,583				(25,127	)			—				117,456
Valuation loss on financial assets			45,300				28,620				—				73,920
Impairment loss on assets			59,778				(205	)			—				59,573
Valuation loss on onerous contracts			36,538				9,037				—				45,575
Inventory valuation and obsolescence losses			43,249				3,150				—				46,399
Seniority bonus			67,211				5,700				—				72,911
Estimated warranty liabilities			31,481				1,214				—				32,695
Accrued award credits liabilities			16,547				(1,725	)			—				14,822
Deferred revenue			14,376				(9,709	)			—				4,667
Others			19				(19	)			—				—
		$	1,939,947			$	21,227			$	(445,091	)		$	1,516,083
Deferred income tax liabilities
Temporary differences
Defined benefit pension plan		$	2,256,472			$	140,723			$	—			$	2,397,195
Deferred revenue for award credits			66,448				45,205				—				111,653
Land value incremental tax			94,986				—				—				94,986
Unrealized foreign exchange gain, net			10,746				(9,166	)			—				1,580
		$	2,428,652			$	176,762			$	—			$	2,605,414

e. All deductible temporary differences were recognized as deferred tax assets in the balance sheets.

f. Income tax examinations

Income tax returns of the Company have been examined by the tax authorities through 2022.

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30. 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

		Year Ended December 31
		2025				2024
Net income used to compute the basic earnings per share		$	38,712,404			$	37,220,464
Assumed conversion of all dilutive potential common stocks
Employee stock options and employee compensation of subsidiaries			(5,288	)			(3,251	)
Net income used to compute the diluted earnings per share		$	38,707,116			$	37,217,213

Weighted Average Number of Common Stocks

		(Thousand Shares)
		Year Ended December 31
		2025				2024
Weighted average number of common stocks used to compute the basic earnings per share			7,757,447				7,757,447
Assumed conversion of all dilutive potential common stocks
Employee compensation			18,565				17,482
Weighted average number of common stocks used to compute the diluted earnings per share			7,776,012				7,774,929

As the Company may settle the employee compensation in shares or cash, the Company 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.

31. CASH FLOW INFORMATION

Except for those disclosed in other notes, the Company entered into the following non-cash investing and financing activities:

		Year Ended December 31
Investing Activities		2025				2024
Additions of property, plant and equipment		$	26,947,906			$	26,896,785
Changes in other payables			(309,925	)			18,353
Payments for acquisition of property, plant and equipment		$	26,637,981			$	26,915,138

- 66 -

Financing Activities

		Balance on January 1,				Cash Flows from Financing				Changes in Non-Cash Transactions								Cash Flows from Operating Activities -				Balance on December 31,
		2025				Activities				New Leases				Others				Interest Paid				2025
Lease liabilities		$	10,040,347			$	(3,669,086	)		$	3,901,162			$	(122,749	)		$	(130,754	)		$	10,018,920

		Balance on January 1,				Cash Flows from Financing				Changes in Non-Cash Transactions								Cash Flows from Operating Activities -				Balance on December 31,
		2024				Activities				New Leases				Others				Interest Paid				2024
Lease liabilities		$	10,187,010			$	(3,486,781	)		$	3,546,274			$	(101,483	)		$	(104,673	)		$	10,040,347

32. CAPITAL MANAGEMENT

The Company manages its capital to ensure that 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 and the equity of the Company.

The Company is 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.

33. 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).

- 67 -

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

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

		December 31
		2025								2024
		Carrying Value				Fair Value				Carrying Value				Fair Value
Financial assets
Financial assets at amortized cost
Corporate bonds		$	2,000,000			$	2,010,142			$	2,000,000			$	2,002,268
Financial liabilities
Financial liabilities at amortized cost
Bonds payable		$	25,188,138			$	25,196,749			$	30,488,206			$	30,485,103

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

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

December 31, 2025

		Level 1				Level 2				Level 3				Total
Financial assets at FVTPL
Derivatives		$	—			$	3,204			$	—			$	3,204
Non-listed stocks			—				—				588,124				588,124
Limited partnership			—				—				472,112				472,112
Other investing agreements			—				—				69,697				69,697
		$	—			$	3,204			$	1,129,933			$	1,133,137
Financial assets at FVOCI
Non-listed stocks		$	—			$	—			$	6,341,812			$	6,341,812
Hedging financial assets		$	—			$	3,204			$	—			$	3,204
Hedging financial liabilities		$	—			$	56			$	—			$	56

- 68 -

December 31, 2024

		Level 1				Level 2				Level 3				Total
Financial assets at FVTPL
Derivatives		$	—			$	27			$	—			$	27
Non-listed stocks			—				—				644,312				644,312
Limited partnership			—				—				276,479				276,479
Other investing agreements			—				—				36,757				36,757
		$	—			$	27			$	957,548			$	957,575
Financial assets at FVOCI
Non-listed stocks		$	—			$	—			$	4,446,650			$	4,446,650
Hedging financial assets		$	—			$	1,133			$	—			$	1,133
Hedging financial liabilities		$	—			$	1,907			$	—			$	1,907

There were no transfers between Levels 1 and 2 for the years ended December 31, 2025 and 2024.

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

2025

Financial Assets		Measured at Fair Value through Profit or Loss				Measured at Fair Value through Other Comprehensive Income				Total
Balance on January 1, 2025		$	957,548			$	4,446,650			$	5,404,198
Acquisition			295,792				1,399,495				1,695,287
Recognized in profit or loss under “Other gains and losses”			(100,028	)			—				(100,028	)
Recognized in other comprehensive income under “Unrealized gain or loss on financial assets at fair value through other comprehensive income”			—				534,577				534,577
Proceeds from capital reduction of the investees and profit distribution			(23,379	)			(38,910	)			(62,289	)
Balance on December 31, 2025		$	1,129,933			$	6,341,812			$	7,471,745
Unrealized gain or loss in 2025		$	(100,090	)

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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		$	983,799			$	4,100,121			$	5,083,920
Acquisition			158,909				282,780				441,689
Recognized in profit or loss under “Other gains and losses”			(142,646	)			—				(142,646	)
Recognized in other comprehensive income under “Unrealized gain or loss on financial assets at fair value through other comprehensive income”			—				63,749				63,749
Proceeds from capital reduction of the investees and profit distribution			(42,514	)			—				(42,514	)
Balance on December 31, 2024		$	957,548			$	4,446,650			$	5,404,198
Unrealized gain or loss in 2024		$	(139,182	)

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

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

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

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

		December 31
		2025		2024
Discount for lack of marketability		10.00%~20.00%		20.00%
Noncontrolling interests discount		10.00%~25.00%		15.00%~25.00%
Growth rate of long-term revenue		1.33%		0.12%
Discount rate		8.21%~11.60%		8.32%~14.40%

- 70 -

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.

		December 31
		2025				2024
Discount for lack of marketability
5% increase		$	(116,500	)		$	(55,165	)
5% decrease		$	116,500			$	55,165
Noncontrolling interests discount
5% increase		$	(117,121	)		$	(46,663	)
5% decrease		$	117,121			$	46,663
Growth rate of long-term revenue
0.1% increase		$	40,424			$	31,347
0.1% decrease		$	(39,685	)		$	(30,798	)
Discount rate
1% increase		$	(457,823	)		$	(362,930	)
1% decrease		$	560,233			$	439,187

Categories of Financial Instruments

		December 31
		2025				2024
Financial assets
Measured at FVTPL
Mandatorily measured at FVTPL		$	1,133,137			$	957,575
Hedging financial assets			3,204				1,133
Financial assets at amortized cost (Note a)			73,112,609				73,334,580
Financial assets at FVOCI			6,341,812				4,446,650
Financial liabilities
Hedging financial liabilities			56				1,907
Financial liabilities at amortized cost (Note b)			57,868,841				63,887,049

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

Note b: The balances included trade notes and accounts payable, payables to related parties, partial other payables, customers’ deposits and bonds payable (including the current portion).

Financial Risk Management Objectives

The main financial instruments of the Company include investments in equity and debt instruments, trade notes and accounts receivable, trade notes and accounts payable, lease liabilities 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.

- 71 -

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.

The Company reports the significant risk exposures and related action plans timely and actively to the audit committee and if needed to the Board of Directors.

a. Market risk

The Company is exposed to market risks of changes in foreign currency exchange rates and interest rates. The Company uses forward exchange contracts to hedge the exchange rate risk arising from assets and liabilities denominated in foreign currencies.

There were no changes to the Company’s exposure to market risks or the manner in which these risks are managed and measured.

1) Foreign currency risk

For details about the carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the balance sheet dates, please refer to Note 38 Significant Assets and Liabilities Denominated in Foreign Currencies.

The carrying amounts of the Company’s derivatives with exchange rate risk exposures at the balance sheet dates were as follows:

		December 31
		2025				2024
Assets
EUR		$	6,408			$	1,160
Liabilities
EUR			56				1,907

Foreign currency sensitivity analysis

The Company is mainly exposed to the fluctuations of the currencies USD, EUR and SGD.

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.

- 72 -

		Year Ended December 31
		2025				2024
Profit or loss
Monetary assets and liabilities (a)
USD		$	60,069			$	12,854
EUR			(70,561	)			(49,238	)
SGD			(620	)			(56,055	)
Derivatives (b)
EUR			4,613				512
Equity
Derivatives (c)
EUR			7,380				17,070

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

b) This is mainly attributable to forward exchange contracts.

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

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

2) Interest rate risk

The carrying amounts of the Company’s exposures to interest rates on financial assets and financial liabilities at the balance sheet dates were as follows:

		December 31
		2025				2024
Fair value interest rate risk
Financial assets		$	32,357,508			$	40,233,358
Financial liabilities			35,207,058				40,528,553
Cash flow interest rate risk
Financial assets			10,828,566				5,565,363

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 $27,071 thousand and $13,913 thousand for the years ended December 31, 2025 and 2024, respectively. This is mainly attributable to the Company’s exposure to floating interest rates on its financial assets.

- 73 -

3) Other price risk

The Company is exposed to equity price risks arising from holding other company’s equity. Equity investments are held for strategic rather than trading purposes. The management managed the risk through holding various risk portfolios. Further, the Company assigned finance and investment departments to monitor the price risk.

Equity price sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income would have increased/decreased by $53,012 thousand and $317,091 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the year ended December 31, 2025. If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income would have increased/decreased by $46,040 thousand and $222,333 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the year ended December 31, 2024.

b. Credit risk

Credit risk refers to the risk that a counterparty would default on its contractual obligations resulting in financial loss to the Company. The maximum credit exposure of the aforementioned financial instruments is equal to their carrying amounts recognized in the balance sheet as of the balance sheet date.

The Company has large trade receivables outstanding with its customers. A substantial majority of the Company’s outstanding trade receivables are not covered by collateral or credit insurance. The Company has implemented ongoing measures including enhancing credit assessments and strengthening overall risk management to reduce its credit risk. While the Company has procedures to monitor and limit exposure to credit risk on trade receivables, there can be no assurance such procedures will effectively limit its credit risk and avoid losses. This risk is heightened during periods when economic conditions worsen. As the Company serves a large number of unrelated consumers, the concentration of credit risk was limited.

The Company mitigates its financial credit risk by selecting counterparties with investment grade credit ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors and reviews market conditions, and adjusts the limit applied to counterparties according to their credit standing.

In accordance with the Company’s investment and risk management policies, counterparties for debt investments must be financial institutions with investment grade or higher, and thus there is no significant credit exposure resulting from such investments. The Company assesses whether there has been a significant increase in credit risk on debt instruments since initial recognition by reviewing changes in financial market conditions, and external credit ratings and material information of the issuers.

The Company assesses the 12-month expected credit loss and lifetime expected credit loss for debt instruments based on the probability of default and loss given default provided by external credit rating agencies.

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c. Liquidity risk

The Company manages and maintains sufficient cash and cash equivalent position to support the operations and reduce the impact on fluctuation of cash flow.

1) Liquidity and interest risk tables

The following tables detailed the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company is required to pay.

December 31, 2025

		Weighted Average Effective Interest Rate (%)				Less than 1 Month				1-3 Months				3 Months to 1 Year				1-5 Years				More than 5 Years				Total
Non-derivative financial liabilities
Non-interest bearing			—			$	36,358,603			$	—			$	2,153,743			$	5,115,377			$	—			$	43,627,723
Fixed interest rate instruments			0.71				14,904				47,925				2,096,214				22,675,050				1,001,667				25,835,760
						$	36,373,507			$	47,925			$	4,249,957			$	27,790,427			$	1,001,667			$	69,463,483

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		$	3,512,166			$	5,041,786			$	1,561,416			$	132,631			$	10,247,999

December 31, 2024

		Weighted Average Effective Interest Rate (%)				Less than 1 Month				1-3 Months				3 Months to 1 Year				1-5 Years				More than 5 Years				Total
Non-derivative financial liabilities
Non-interest bearing			—			$	36,600,632			$	—			$	1,972,050			$	5,108,234			$	—			$	43,680,916
Fixed interest rate instruments			0.53				13,527				45,166				8,968,938				17,248,299				4,719,400				30,995,330
						$	36,614,159			$	45,166			$	10,940,988			$	22,356,533			$	4,719,400			$	74,676,246

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		$	3,183,715			$	4,830,949			$	2,096,300			$	149,388			$	10,260,352

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
December 31, 2025
Gross settled
Forward exchange contracts
Inflow		$	55,327			$	184,164			$	—			$	—			$	239,491
Outflow			55,383				177,756				—				—				233,139
		$	(56	)		$	6,408			$	—			$	—			$	6,352

(Continued)

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		Less than 1 Month				1-3 Months				3 Months to 1 Year				1-5 Years				Total
December 31, 2024
Gross settled
Forward exchange contracts
Inflow		$	—			$	350,466			$	—			$	—			$	350,466
Outflow			—				351,213				—				—				351,213
		$	—			$	(747	)		$	—			$	—			$	(747	)

(Concluded)

2) Financing facilities

		December 31
		2025				2024
Unsecured bank loan facilities
Amount used		$	—			$	—
Amount unused			19,910,000				48,968,000
		$	19,910,000			$	48,968,000

34. RELATED PARTIES TRANSACTIONS

The ROC Government has significant equity interest in the Company. The Company provides fixed-line services, mobile services, internet and data and other services to the various departments and institutions of the ROC Government in the normal course of business and at arm’s-length prices. Except for those disclosed in other notes or this note, the transactions with the ROC government bodies have not been disclosed because the transactions are not individually or collectively significant. However, the related revenues and operating costs have been appropriately recorded.

a. The Company engages in business transactions with the following related parties:

Company		Relationship
Senao International Co., Ltd.		Subsidiary
Light Era Development Co., Ltd.		Subsidiary
Donghwa Telecom Co., Ltd.		Subsidiary
Chunghwa Telecom Singapore Pte., Ltd.		Subsidiary
Chunghwa System Integration Co., Ltd.		Subsidiary
Chunghwa Investment Co., Ltd.		Subsidiary
CHIEF Telecom, Inc.		Subsidiary
CHYP Multimedia Marketing & Communications Co., Ltd.		Subsidiary
Prime Asia Investments Group Ltd.		Subsidiary
Spring House Entertainment Tech. Inc.		Subsidiary
Chunghwa Telecom Global, Inc.		Subsidiary
Chunghwa Telecom Vietnam Co., Ltd.		Subsidiary
Smartfun Digital Co., Ltd.		Subsidiary
Chunghwa Telecom Japan Co., Ltd.		Subsidiary
Honghwa International Co., Ltd.		Subsidiary
Chunghwa Leading Photonics Tech. Co., Ltd.		Subsidiary

(Continued)

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Company		Relationship
Chunghwa Telecom (Thailand) Co., Ltd.		Subsidiary
Chunghwa Telecom Europe GmbH		Subsidiary
CHT Security Co., Ltd.		Subsidiary
International Integrated Systems, Inc.		Subsidiary
Chunghwa Digital Cultural and Creative Capital Co., Ltd		Subsidiary
CHT InventAI Co., Ltd.		Subsidiary
Youth Co., Ltd. (“Youth”)		Subsidiary of SENAO
Aval Technologies Co., Ltd. (“Aval”)		Subsidiary of SENAO
Senyoung Insurance Agent Co., Ltd.		Subsidiary of SENAO
ISPOT Co., Ltd.		Subsidiary of Youth
Wiin Technologies Co., Ltd.		Subsidiary of Aval
Unigate Telecom Inc.		Subsidiary of CHIEF
Chief International Corp.		Subsidiary of CHIEF
Shanghai Chief Telecom Co., Ltd. (“SCT”)		Subsidiary of CHIEF
Chunghwa Precision Test Tech. Co., Ltd. (“CHPT”)		Subsidiary of CHI
Chunghwa Precision Test Tech. USA Corporation		Subsidiary of CHPT
CHPT Japan Co., Ltd.		Subsidiary of CHPT
Chunghwa Precision Test Tech. International, Ltd. (“CHPT (International)”)		Subsidiary of CHPT
Chunghwa Telecom Malaysia SDN. BHD. (“CHTM”)		Subsidiary of CHTS (Note 1)
TestPro Investment Co., Ltd. (“TestPro”)		Subsidiary of CHPT
NavCore Tech Co., Ltd.		Subsidiary of TestPro
Chunghwa Hsingta Co., Ltd.		Subsidiary of Prime Asia
Shanghai Taihua Electronic Technology Limited		Subsidiary of CHPT (International)
Su Zhou Precision Test Tech. Ltd.		Subsidiary of CHPT (International)
Unitronics Technology Corp.		Subsidiary of IISI
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. (“SNI”)		Associate of SENAO
EnGenius Networks Inc.		Subsidiary of the Company’s associate, SNI
Emplus Technologies, Inc.		Subsidiary of the Company’s associate, SNI
ST-2 Satellite Ventures Pte., Ltd.		Associate of CHTS
CHT Infinity Singapore Pte., Ltd. (“CISG”)		Associate of CHTS
Viettel-CHT Co., Ltd.		Associate
PT. CHT Infinity Indonesia		Subsidiary of the Company’s associate, CISG
Click Force Co., Ltd.		Associate of CHYP
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 of CHI
Imedtac Co., Ltd.		Associate of CHI
Baohwa Trust Co., Ltd.		Associate of CHTSC
Gather Works Co., Ltd. (“GW”)		Associate of CHI (Note 2)
Porrima Inc. (“PORRIMA”)		Associate of CHI (Note 3)
Taiwania Hive Technology Fund L.P.		Associate

(Continued)

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Company		Relationship
Chunghwa Sochamp Technology Inc.		Associate
Chunghwa SEA Holdings		Joint venture
Other related parties
Chunghwa Telecom Foundation		A nonprofit organization of which the funds donated by the Company exceeds one third of its total funds
Senao Technical and Cultural Foundation		A nonprofit organization of which the funds donated by SENAO exceeds one third of its total funds
Ba Gua Liao Foundation		Substantial related party of SENAO
Cih Yue Charity Foundation		Substantial related party of SENAO
Tsann Kuen Enterprise Co., Ltd.		Substantial related party of SENAO
E-Life Mall Co., Ltd.		Substantial related party of SENAO
Engenius Technologies Co., Ltd.		Substantial related party of SENAO
Cheng Keng Investment Co., Ltd.		Substantial related party of SENAO
Cheng Feng Investment Co., Ltd.		Substantial related party of SENAO
All Oriented Investment Co., Ltd.		Substantial related party of SENAO
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
UDN Digital Co., Ltd.		Investor of significant influence over SFD
Shenzhen Century Communication Co., Ltd.		Investor of significant influence over SCT
Advantech Co., Ltd.		Investor of significant influence over IISI

(Concluded)

Note 1: CHTS established CHTM in June 2025.

Note 2: CHI invested and established GW in April 2025.

Note 3: CHI participated in the capital increase of PORRIMA in May 2024.

b. Terms of the foregoing transactions with related parties were not significantly different from transactions with non-related parties. When no similar transactions with non-related parties can be referenced, terms were determined in accordance with mutual agreements. Details of transactions between the Company and other related parties are disclosed below:

1) Operating transactions

		Revenues
		Year Ended December 31
		2025				2024
Subsidiaries		$	6,553,638			$	6,375,076
Associates			133,514				193,472
Others			3,279				5,092
		$	6,690,431			$	6,573,640

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		Operating Costs and Expenses
		Year Ended December 31
		2025				2024
Subsidiaries		$	12,783,425			$	12,704,657
Associates			535,901				960,748
Others			58,700				59,858
		$	13,378,026			$	13,725,263

2) Non-operating transactions

		Non-operating Income and (Expenses)
		Year Ended December 31
		2025				2024
Subsidiaries		$	270			$	(956	)
Associates			(6,516	)			(7,354	)
Others			(6	)			(6	)
		$	(6,252	)		$	(8,316	)

3) Receivables

		December 31
		2025				2024
Subsidiaries		$	785,269			$	822,266
Associates			72,617				82,132
Others			—				2
		$	857,886			$	904,400

4) Payables

		December 31
		2025				2024
Subsidiaries		$	4,247,641			$	4,272,574
Associates			127,894				465,951
		$	4,375,535			$	4,738,525

5) Customers’ deposits

		December 31
		2025				2024
Subsidiaries		$	11,110			$	13,071
Associates			2,293				3,407
		$	13,403			$	16,478

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6) Acquisition of property, plant and equipment

		Year Ended December 31
		2025				2024
Subsidiaries		$	855,761			$	542,509
Associates			21,376				143,986
		$	877,137			$	686,495

7) Lease-in agreements

The Company 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 the Company approved to extend the lease period accordingly with the original contract terms in December 2021; therefore, the Company acquired right-of-use asset of $1,124,780 thousand from the aforementioned lease extension.

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

		December 31
		2025				2024
Lease liabilities - current		$	297,328			$	204,393
Lease liabilities - noncurrent			1,191,341				1,463,029
		$	1,488,669			$	1,667,422

The interest expense recognized for the aforementioned lease liabilities were $6,630 thousand and $7,478 thousand for the years ended December 31, 2025 and 2024, respectively.

8) Others

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

		December 31
		2025				2024
Bank deposits and other financial assets		$	2,003,007			$	2,003,657

The interest income recognized for the aforementioned bank deposits and other financial assets were $37,678 thousand and $23,088 thousand for the years ended December 31, 2025 and 2024, respectively.

- 80 -

c. Compensation of key management personnel

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

		Year Ended December 31
		2025				2024
Short-term employee benefits		$	82,644			$	79,731
Post-employment benefits			5,139				4,289
		$	87,783			$	84,020

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

35. PLEDGED ASSETS

The following assets are pledged to the trust account the Company entrusts to Land Bank of Taiwan for fund control:

		Year Ended December 31
		2025				2024
Restricted assets (included in other assets - others)		$	114,980			$	114,254

36. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Except for those disclosed in other notes, the Company’s significant commitments and contingent liabilities as of December 31, 2025 were as follows:

a. Acquisitions of property, plant and equipment of $21,510,051 thousand.

b. Acquisitions of telecommunications-related inventory of $6,826,887 thousand.

c. 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 the Company on August 15, 1996 (classified as other financial assets - noncurrent). If the fund is not sufficient, the Company will contribute the remaining $1,000,000 thousand upon notification from the Taipei City Government.

d. The Company 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, the Company will provide financial support to assist NCB in maintaining a healthy financial condition.

e. The Company 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 December 31, 2025, the Company had paid the amount of EUR 117,705 thousand. The Company signed a contract for Astranis block 3 Satellite with Astranis Space Technologies Corp. for a total transaction price of USD 115,000 thousand; as of December 31, 2025, the Company had paid the amount of USD 17,080 thousand. The aforementioned amounts are classified as prepayments.

- 81 -

f. The Company has signed the house and land presale contracts amounting to $950,670 thousand and has received $114,020 thousand in accordance with the contracts (classified as contract liabilities).

g. The Company’s Board of Directors approved an investment in Cultural Content Industry Fund in February 2024, and the investment amount is capped at $1,200,000 thousand. The Company injected $640,000 thousand in December 2025, which was classified as other assets - prepayments for investments.

h. The Company entered into a long-term energy purchase agreement with the supplier. The relative fulfillment period, quantity and price are specified in the agreement.

37. SIGNIFICANT SUBSEQUENT EVENTS

None to report.

38. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The information of significant assets and liabilities denominated in foreign currencies was as follows:

		December 31, 2025
		Foreign Currencies (Thousands)				Exchange Rate				New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD		$	79,820				31.43			$	2,508,746
EUR			1,143				36.90				42,190
SGD			63,198				24.45				1,545,197
Non-monetary items
Investments accounted for using equity method
USD			79,651				31.43				2,503,414
EUR			3,097				36.90				114,274
HKD			245,231				4.038				990,245
JPY			1,784,514				0.201				358,331
VND			557,529,204				0.001				657,885
RMB			40,250				4.496				180,965
THB			163,356				1.002				163,667
Liabilities denominated in foreign currencies
Monetary items
USD			41,596				31.43				1,307,364
EUR			39,388				36.90				1,453,403
SGD			63,705				24.45				1,557,595

- 82 -

		December 31, 2024
		Foreign Currencies (Thousands)				Exchange Rate				New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD		$	33,462				32.79			$	1,097,055
EUR			1,317				34.14				44,959
SGD			24,970				24.13				602,526
Non-monetary items
Investments accounted for using equity method
USD			73,618				32.79				2,413,564
EUR			3,420				34.14				116,752
HKD			219,826				4.222				928,105
JPY			1,338,069				0.210				280,861
VND			511,492,454				0.001				649,595
RMB			41,037				4.478				183,762
THB			155,702				0.962				149,832
Liabilities denominated in foreign currencies
Monetary items
USD			25,621				32.79				839,976
EUR			30,161				34.14				1,029,714
SGD			71,431				24.13				1,723,623

The unrealized foreign currency exchange gains and losses were loss of $67,045 thousand and gain of $7,900 thousand for the years ended December 31, 2025 and 2024, respectively. Due to the various foreign currency transactions of the Company, foreign exchange gains and losses cannot be disclosed by the respective significant foreign currency.

39. ADDITIONAL DISCLOSURES

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

a. Financing provided: None.

b. Endorsement/guarantee provided: Please see Table 1.

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

d. Total purchases from or sales to related parties amounting to at least $100 million or 20% of the paid-in capital: Please see Table 3.

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

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

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g. Information on investments in Mainland China:

1) The name of the investee in Mainland China, its main businesses and products, paid-in capital, method of investment, information on inflow or outflow of capital, ownership percentage, net income (loss) of the investee, share of profit (loss) of the investee, ending balance, amount received as dividends from the investee, and the limit on the amount of investment in Mainland China: Please see Table 6.

2) Significant transactions with the investee in Mainland China occurring directly or indirectly through a third region, and the prices, terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in Mainland China on financial reports: None.

40. 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
Year ended December 31, 2025
Revenues
From external customers		$	122,010,903			$	67,942,568			$	6,563,781			$	1,204,615			$	197,721,867
Intersegment revenues			154,541				—				161,004				—				315,545
Segment revenues		$	122,165,444			$	67,942,568			$	6,724,785			$	1,204,615				198,037,412
Intersegment elimination																			(315,545	)
Consolidated revenues																		$	197,721,867
Segment income before income tax		$	30,372,943			$	11,653,223			$	2,097,659			$	3,290,743			$	47,414,568
Year ended December 31, 2024
Revenues
From external customers		$	119,277,477			$	65,954,094			$	6,514,513			$	1,196,832			$	192,942,916
Intersegment revenues			165,981				7				149,604				—				315,592
Segment revenues		$	119,443,458			$	65,954,101			$	6,664,117			$	1,196,832				193,258,508
Intersegment elimination																			(315,592	)
Consolidated revenues																		$	192,942,916
Segment income before income tax		$	28,705,132			$	12,234,665			$	2,244,119			$	2,420,638			$	45,604,554

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Other Segment Information

Other information reviewed by the chief operating decision maker or regularly provided to the chief operating decision maker was as follows:

		Consumer Business				Enterprise Business				International Business				Others				Total
Year ended December 31, 2025
Share of profits (loss) of associates and joint ventures accounted for using equity method		$	(106,011	)		$	1,146,054			$	667,232			$	447,785			$	2,155,060
Interest income		$	492			$	19,813			$	11,402			$	693,219			$	724,926
Interest expenses		$	199,580			$	92,754			$	8,124			$	829			$	301,287
Depreciation and amortization		$	33,456,051			$	10,621,600			$	1,382,933			$	245,771			$	45,706,355
Impairment loss on property, plant and equipment		$	90,157			$	22,040			$	22			$	—			$	112,219
Reversal of impairment loss on investment properties		$	—			$	—			$	—			$	28,354			$	28,354
Year ended December 31, 2024
Share of profits of associates and joint ventures accounted for using equity method		$	58,199			$	992,619			$	646,539			$	353,471			$	2,050,828
Interest income		$	447			$	13,152			$	10,343			$	587,541			$	611,483
Interest expenses		$	180,739			$	83,131			$	8,456			$	769			$	273,095
Depreciation and amortization		$	33,086,644			$	10,304,636			$	1,335,306			$	234,267			$	44,960,853
Reversal of impairment loss on investment properties		$	—			$	—			$	—			$	139,200			$	139,200

Main Products and Service Revenues

		Year Ended December 31
		2025				2024
Consumer Business
Mobile services		$	62,783,726			$	60,761,873
Fixed-line services			43,208,169				42,967,552
Sales			14,121,384				13,715,002
Others			1,897,624				1,833,050
			122,010,903				119,277,477
Enterprise Business
Fixed-line services			32,045,916				32,131,190
ICT business			23,131,218				21,797,016
Mobile services			9,976,715				9,622,435
Others			2,788,719				2,403,453
			67,942,568				65,954,094
International Business
Fixed-line services			3,400,495				3,554,671
ICT business			2,546,270				2,161,127
Others			617,016				798,715
			6,563,781				6,514,513
Others			1,204,615				1,196,832
		$	197,721,867			$	192,942,916

- 85 -

Geographic Information

The users of the Company’s services are mainly from Taiwan, ROC. The revenues it derived outside Taiwan are mainly revenues from international long distance telephone and leased line services. The geographic information for revenues was as follows:

		Year Ended December 31
		2025				2024
Taiwan, ROC		$	194,717,759			$	189,896,761
Overseas			3,004,108				3,046,155
		$	197,721,867			$	192,942,916

The Company does not have material noncurrent assets in foreign operations.

Major Customers

For the years ended December 31, 2025 and 2024, the Company did not have any single customer whose revenue exceeded 10% of the total revenues.

- 86 -

TABLE 1

CHUNGHWA TELECOM CO., LTD.

ENDORSEMENTS/GUARANTEES PROVIDED

YEAR ENDED DECEMBER 31, 2025

(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)
1		Senao International Co., Ltd.		Aval Technologies Co., Ltd.		b		$	644,013			$	300,000			$	300,000			$	300,000			$	—				4.66			$	3,220,063			Yes		No		No		Notes 3 and 4
				Wiin Technology Co., Ltd.		b			644,013				200,000				200,000				200,000				—				3.11				3,220,063			Yes		No		No		Notes 3 and 4

Note 1: Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as follows:

a. “0” for the Company.

b. Subsidiaries are numbered from “1”.

Note 2: Relationships between the endorsement/guarantee provider and the guaranteed party:

a. A company with which it does business.

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

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

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

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

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

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

Note 3: The limits on endorsement or guarantee amount provided to each guaranteed party is up to 10% of the net assets value of the latest financial statements of Senao International Co., Ltd.

Note 4: The total amount of endorsement or guarantee that the Company is allowed to provide is up to 50% of the net assets value of the latest financial statements of Senao International Co., Ltd.

- 87 -

TABLE 2

CHUNGHWA TELECOM CO., LTD.

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Held Company Name		Marketable Securities Type and Name		Relationship with the Company				Financial Statement Account		December 31, 2025																Note
										Shares (Thousands/ Thousand Units)				Carrying Value (Note 1)				Percentage of Ownership				Fair Value
Chunghwa Telecom Co., Ltd.		Stocks
		Taipei Financial Center Corp.			—			Financial assets at FVOCI - noncurrent			172,927			$	4,352,638				12			$	4,352,638				—
		iKala Global Online Corp.			—			Financial assets at FVOCI - noncurrent			112,500				313,036				—				313,036				Note 4
		KKCompany Technologies Inc.			—			Financial assets at FVOCI - noncurrent			12,039				1,029,327				8				1,029,327				—
		4 Gamers Entertainment Inc.			—			Financial assets at FVOCI - noncurrent			136				110,936				—				110,936				Note 4
		Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II)			—			Financial assets at FVOCI - noncurrent			5,252				19,183				17				19,183				—
		Taiwan mobile payment Co., Ltd.			—			Financial assets at FVOCI- noncurrent			1,200				4,749				2				4,749				—
		Innovation Works Limited			—			Financial assets at FVOCI- noncurrent			1,000				6,908				—				6,908				Note 4
		RPTI Intergroup International Ltd.			—			Financial assets at FVOCI- noncurrent			4,765				—				10				—				—
		Global Mobile Corp.			—			Financial assets at FVOCI- noncurrent			7,617				—				3				—				—
		Taiwan Smart Electricity & Energy Co., Ltd.			—			Financial assets at FVOCI- noncurrent			19,688				177,939				13				177,939				—
		Cornerstone Ventures Co., Ltd.			—			Financial assets at FVOCI- noncurrent			25				186				5				186				—
		Da Da Broadband Ltd.			—			Financial assets at FVOCI- noncurrent			4,800				288,000				8				288,000				—
		Manuscript Inc.			—			Financial assets at FVOCI- noncurrent			13				38,910				8				38,910				—
		Taiwania Capital Buffalo Fund Co., Ltd.			—			Financial assets at FVTPL - noncurrent			555,600				400,115				—				400,115				Note 4
		TOP TAIWAN XIV VENTURE CAPITAL CO., LTD.			—			Financial assets at FVTPL - noncurrent			20,000				176,929				9				176,929				—
		Innovation Works Development Fund, L.P.			—			Financial assets at FVTPL - noncurrent			—				11,080				4				11,080				—
		Limited partnership
		Taiwania Capital Buffalo Fund VI, L.P.			—			Financial assets at FVTPL - noncurrent			—				349,962				10				349,962				—
		TRF 1 L.P.			—			Financial assets at FVTPL - noncurrent			—				122,150				10				122,150				—
		Corporate bonds
		Fubon Life Insurance Co., Ltd.			—			Financial assets at amortized cost			2				2,000,000				—				2,010,142				Note 3
Senao International Co., Ltd.		Stocks
		N.T.U. Innovation Incubation Corporation			—			Financial assets at FVOCI - noncurrent			1,200				9,753				9				9,753				—
CHIEF Telecom Inc.		Stocks
		WT Microelectronics Co., Ltd.			—			Financial assets at FVOCI - current			361				18,555				—				18,555				Notes 2 and 4
Chunghwa Investment Co., Ltd.		Stocks
		PChome Online Inc.			—			Financial assets at FVOCI - noncurrent			1,875				59,821				1				59,821				Note 2
		Tatung Technology Inc.			—			Financial assets at FVOCI - noncurrent			4,571				33,213				11				33,213				—
		Bossdom Digiinnovation Co., Ltd.			—			Financial assets at FVOCI - noncurrent			2,309				18,173				7				18,173				Note 2
		KEYXENTIC INC.			—			Financial assets at FVOCI - noncurrent			600				26,709				9				26,709				—

(Continued)

- 88 -

CHUNGHWA TELECOM CO., LTD.

MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Held Company Name		Marketable Securities Type and Name		Relationship with the Company		Financial Statement Account		December 31, 2025																Note
								Shares (Thousands/ Thousand Units)				Carrying Value (Note 1)				Percentage of Ownership				Fair Value
		ioNetworks Inc.		—		Financial assets at FVOCI - noncurrent			107			$	11,491				—			$	11,491				Note 4
		iSing99 Inc.		—		Financial assets at FVOCI - noncurrent			10,000				—				7				—				—
		Powtec ElectroChemical Corporation		—		Financial assets at FVOCI - noncurrent			20,000				—				2				—				—
		Horng Yu Electric Co., Ltd.		—		Financial assets at FVOCI - noncurrent			400				194,000				1				194,000				Note 2
		Navstar Electronics Co., Ltd.		—		Financial assets at FVTPL - noncurrent			3,000				39,303				—				39,303				Note 4
		Limited partnership
		Taiwania Capital Buffalo Fund V, L.P.		—		Financial assets at FVTPL - noncurrent			—				27,544				3				27,544				—
TestPro Investment Co., Ltd.		Stocks
		Yokowo Co., Ltd		—		Financial assets at FVOCI - noncurrent			52				23,431				—				23,431				Note 2
CHT Security Co., Ltd.		Stocks
		TXOne Networks Inc.		—		Financial assets at FVTPL - noncurrent			91				14,572				—				14,572				Note 4
		CyCraft Technology Corporation		—		Financial assets at FVOCI - noncurrent			912				66,478				3				66,478				—
		Fubon Financial Holding Co., Ltd.		—		Financial assets at FVOCI - noncurrent			36				1,922				—				1,922				Notes 2 and 4
		Corporate bonds
		Mercuries Life Insurance Co., Ltd.		—		Financial assets at amortized cost			—				20,300				—				20,002				Note 3

Note 1: Except debt instrument investments are shown at amortized cost, the remaining are shown at carrying amounts with fair value adjustments.

Note 2: Fair value was based on the closing price on the last trading day of the reporting period in the stock market.

Note 3: Fair value was based on the weighted average price per 100 units of par value for bonds on the last trading day of the reporting period in the over-the-counter market.

Note 4: Preferred stocks.

(Concluded)

- 89 -

TABLE 3

CHUNGHWA TELECOM CO., LTD.

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

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Company Name		Related Party		Nature of Relationship		Transaction Details												Abnormal Transaction (Note 3)						Notes / Accounts Payable or Receivable
						Purchases/Sales (Note 1)		Amount (Note 4)				% to Total				Payment Terms		Unit Price				Payment Terms		Ending Balance (Notes 2 and 4)				% to Total
Chunghwa Telecom Co., Ltd.		Senao International Co., Ltd.		Subsidiary		Sales		$	4,934,806				2			30 days		$	—			—		$	220,475				1
						Purchase			1,356,587				1			30~90 days			—			—			(1,062,359	)			(7	)
		CHIEF Telecom Inc.		Subsidiary		Sales			518,373				—			30 days			—			—			69,415				—
						Purchase			135,038				—			30 days			—			—			(17,003	)			—
		CHYP Multimedia Marketing & Communications Co., Ltd.		Subsidiary		Purchase			192,787				—			30 days			—			—			(62,483	)			—
		Chunghwa System Integration Co., Ltd.		Subsidiary		Purchase			1,225,190				1			30 days			—			—			(506,721	)			(3	)
		Honghwa International Co., Ltd.		Subsidiary		Sales			220,239				—			30~60 days			—			—			3,708				—
						Purchase			7,582,106				6			30~60 days			—			—			(1,708,370	)			(11	)
		Donghwa Telecom Co., Ltd.		Subsidiary		Sales			192,820				—			30 days			—			—			56,577				—
						Purchase			528,923				—			90 days			—			—			(116,562	)			(1	)
		Chunghwa Telecom Japan Co., Ltd.		Subsidiary		Purchase			128,268				—			30~90 days			—			—			(19,856	)			—
		Chunghwa Telecom Singapore Pte., Ltd.		Subsidiary		Purchase			187,219				—			30 days			—			—			(174,695	)			(1	)
		Chunghwa Telecom Global, Inc.		Subsidiary		Sales			142,763				—			30~90 days			—			—			27,321				—
						Purchase			289,110				—			90 days			—			—			(67,502	)			—
		CHT Security Co., Ltd.		Subsidiary		Purchase			322,151				—			30 days			—			—			(33,449	)			—
		International Integrated Systems, Inc.		Subsidiary		Purchase			711,742				1			30 days			—			—			(109,050	)			(1	)
		Senyoung Insurance Agent Co., Ltd.		Subsidiary		Sales			161,981				—			30 days			—			—			45,438				—
		Taiwan International Standard Electronics Co., Ltd.		Associate		Purchase			255,021				—			30~90 days			—			—			(8,645	)			—
		WiAdvance Technology Corporation		Associate		Purchase			162,634				—			60 days			—			—			(42,280	)			—
Senao International Co., Ltd.		Aval Technologies Co., Ltd.		Subsidiary		Purchase			264,107				1			30 days			—			—			(7,774	)			—
		Senyoung Insurance Agent Co., Ltd.		Subsidiary		Sales			108,732				—			60 days			—			—			28,390				1
CHIEF Telecom Inc.		So-net Entertainment Taiwan Limited		Associate		Sales			139,066				4			30 days			—			—			10,919				3
Chunghwa Precision Test Tech. Co., Ltd.		Su Zhou Precision Test Tech. Ltd.		Subsidiary		Sales			170,220				4			90 days			—			—			72,740				11

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.

- 90 -

TABLE 4

CHUNGHWA TELECOM CO., LTD.

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

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Company Name		Related Party		Nature of Relationship		Ending Balance				Turnover Rate (Note)		Overdue								Amounts Received in Subsequent Period				Allowance for Bad Debts
												Amounts				Action Taken
Chunghwa Telecom Co., Ltd.		Senao International Co., Ltd.		Subsidiary		$	397,076			10.88		$	—				—			$	380,959			$	—
Senao International Co., Ltd.		Chunghwa Telecom Co., Ltd.		Parent company			1,215,809			8.12			—				—				212,480				—
Chunghwa System Integration Co., Ltd.		Chunghwa Telecom Co., Ltd.		Parent company			506,721			4.54			—				—				292,955				—
Honghwa International Co., Ltd.		Chunghwa Telecom Co., Ltd.		Parent company			1,735,718			4.97			—				—				616,172				—
International Integrated Systems, Inc.		Chunghwa Telecom Co., Ltd.		Parent company			109,050			7.66			—				—				72,303				—
Donghwa Telecom Co., Ltd.		Chunghwa Telecom Co., Ltd.		Parent company			116,562			5.88			—				—				65,865				—
Chunghwa Telecom Singapore Pte., Ltd.		Chunghwa Telecom Co., Ltd.		Parent company			174,695			7.81			—				—				162,526				—
Chunghwa Precision Test Tech. Co., Ltd.		Su Zhou Precision Test Tech. Ltd.		Subsidiary			72,740			1.60			—				—				15,284				—

Note: Payments and receipts collected in trust for others are excluded from the accounts receivable in calculating the turnover rate.

- 91 -

TABLE 5

CHUNGHWA TELECOM CO., LTD.

NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES IN WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INVESTMENT IN MAINLAND CHINA)

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Investor Company		Investee Company		Location		Main Businesses and Products		Original Investment Amount								Balance as of December 31, 2025												Net Income (Loss) of the Investee				Recognized Gain (Loss) (Notes 1 and 2)				Note
								December 31, 2025				December 31, 2024				Shares (Thousands)				Percentage of Ownership (%)				Carrying Value
Chunghwa Telecom Co., Ltd.		Senao International Co., Ltd.		Taiwan		Handset and peripherals retailer; sales of CHT mobile phone plans as an agent		$	1,065,813			$	1,065,813				71,773				28			$	1,745,625			$	445,292			$	117,446			Subsidiary (Note 3)
		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				3,830,021				18,892				10,771			Subsidiary
		Donghwa Telecom Co., Ltd.		Hong Kong		International private leased circuit, IP VPN service, and IP transit services			691,163				691,163				178,590				100				990,245				101,622				101,622			Subsidiary
		Chunghwa Telecom Singapore Pte., Ltd.		Singapore		International private leased circuit, IP VPN service, and IP transit services			574,112				574,112				26,383				100				1,349,725				266,078				266,082			Subsidiary
		Chunghwa System Integration Co., Ltd.		Taiwan		Providing system integration services and telecommunications equipment			838,506				838,506				60,000				100				689,976				38,140				33,678			Subsidiary
		CHIEF Telecom Inc.		Taiwan		Network integration, internet data center (“IDC”), communications integration and cloud application services			459,652				459,652				43,368				56				2,210,297				1,227,441				699,241			Subsidiary
		Chunghwa Investment Co., Ltd.		Taiwan		Investment			639,559				639,559				68,085				89				3,736,466				311,080				277,049			Subsidiary
		Prime Asia Investments Group Ltd.		British Virgin Islands		Investment			385,274				385,274				1				100				180,965				(3,408	)			(3,408	)		Subsidiary
		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				725,618				365,125				362,788			Subsidiary (Note 3)
		CHYP Multimedia Marketing & Communications Co., Ltd.		Taiwan		Digital information supply services and advertisement services			150,000				150,000				15,000				100				195,379				7,096				5,315			Subsidiary
		Chunghwa Telecom Vietnam Co., Ltd.		Vietnam		Intelligent energy saving solutions, international circuit, and information and communication technology (“ICT”) services			148,275				148,275				—				100				76,025				5,113				5,113			Subsidiary
		Chunghwa Telecom Global, Inc.		United States		International private leased circuit, internet services, and transit services			70,429				70,429				6,000				100				919,632				98,703				98,703			Subsidiary
		CHT Security Co., Ltd.		Taiwan		Computing equipment installation, wholesale of computing and business machinery equipment and software, management consulting services, data processing services, digital information supply services and internet identify services			230,580				230,580				23,058				57				1,106,750				436,927				291,121			Subsidiary
		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				163,667				7,293				7,293			Subsidiary
		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				164,226				28,577				16,015			Subsidiary
		Chunghwa Leading Photonics Tech Co., Ltd.		Taiwan		Production and sale of electronic components and finished products			70,500				70,500				7,050				62				218,164				68,355				47,568			Subsidiary
		Smartfun Digital Co., Ltd.		Taiwan		Providing diversified family education digital services			65,000				65,000				6,500				65				86,103				21,604				13,142			Subsidiary
		Chunghwa Telecom Japan Co., Ltd.		Japan		International private leased circuit, IP VPN service, and IP transit services			17,291				17,291				1				100				358,331				101,299				93,387			Subsidiary
		International Integrated Systems, Inc.		Taiwan		IT solution provider, IT application consultation, system integration and package solution			503,369				507,363				35,920				45				764,721				152,442				69,391			Subsidiary
		Chunghwa Digital Cultural and Creative Capital Co., Ltd		Taiwan		Investment and management consulting			50,000				50,000				5,000				100				28,300				(10,715	)			(10,900	)		Subsidiary
		Chunghwa Telecom Europe GmbH		Germany		International private leased circuit, internet services, transit services and ICT services			122,675				122,675				3,500				100				114,274				(11,360	)			(11,360	)		Subsidiary
		CHT InventAI Co., Ltd.		Taiwan		AI software, system development, application services, and enterprise consulting			120,000				—				12,000				100				119,237				(763	)			(763	)		Subsidiary

(Continued)

- 92 -

CHUNGHWA TELECOM CO., LTD.

NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES IN WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INVESTMENT IN MAINLAND CHINA)

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Investor Company		Investee Company		Location		Main Businesses and Products		Original Investment Amount								Balance as of December 31, 2025												Net Income (Loss) of the Investee				Recognized Gain (Loss) (Notes 1 and 2)				Note
								December 31, 2025				December 31, 2024				Shares (Thousands)				Percentage of Ownership (%)				Carrying Value
		Viettel-CHT Co., Ltd.		Vietnam		IDC services		$	293,582			$	288,327				—				30			$	581,860			$	433,687			$	130,106			Associate
		Taiwan International Standard Electronics Co., Ltd.		Taiwan		Manufacturing, selling, designing, and maintaining of telecommunications systems and equipment			164,000				164,000				1,760				40				378,089				260,582				112,765			Associate
		KKBOX Taiwan Co., Ltd.		Taiwan		Providing of music on-line, software, electronic information, and advertisement services			—				67,025				—				—				—				(81,804	)			(24,541	)		Associate (Note 7)
		So-net Entertainment Taiwan Limited		Taiwan		Online service and sale of computer hardware			120,008				120,008				9,429				30				126,836				(221,199	)			(66,360	)		Associate
		KingwayTek Technology Co., Ltd.		Taiwan		Design and sale of digital map, technical support for computer peripherals device, design and development of system programming projects			66,684				66,684				12,720				23				265,349				85,048				19,588			Associate
		Taiwan International Ports Logistics Corporation		Taiwan		Import and export storage, logistic warehouse, and ocean shipping service			80,000				80,000				8,000				27				135,189				155,053				41,353			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				252,258				(734	)			(367	)		Associate
		Cornerstone Ventures Co., Ltd.		Taiwan		Investment, venture capital, investment advisor, management consultant and other consultancy service			—				4,900				—				—				—				(1	)			—			Associate (Note 5)
		Next Commercial Bank Co., Ltd.		Taiwan		Online banking business			5,733,847				5,733,847				462,643				46				3,591,348				(856,008	)			(389,810	)		Associate
		Chunghwa SEA Holdings		Taiwan		Investment business			10,200				10,200				1,020				51				9,083				(329	)			(168	)		Joint venture
		WiAdvance Technology Corporation		Taiwan		Software solution integration			273,800				273,800				3,700				16				260,570				(45,554	)			(12,870	)		Associate
		Taiwania Hive Technology Fund L.P.		Cayman Islands		Investment business			288,405				288,405				—				40				234,057				(49,829	)			(20,141	)		Associate
		Chunghwa Sochamp Technology Inc.		Taiwan		Design, development and production of Automatic License Plate Recognition software and hardware			20,400				20,400				2,040				37				—				(11,414	)			—			Associate
Senao International Co., Ltd.		Senao Networks, Inc.		Taiwan		Telecommunication facilities manufactures and sales			578,186				578,186				19,582				33				2,023,706				307,052				101,807			Associate
		Youth Co., Ltd.		Taiwan		Sale of information and communication technologies products			427,850				427,850				14,752				96				153,943				835				(7,455	)		Subsidiary
		Aval Technologies Co., Ltd.		Taiwan		Sale of information and communication technologies products			89,550				89,550				13,740				100				155,331				12,611				12,610			Subsidiary
		Senyoung Insurance Agent Co., Ltd.		Taiwan		Property and liability insurance agency			59,000				59,000				8,909				100				141,343				34,466				34,466			Subsidiary
CHIEF Telecom Inc.		Unigate Telecom Inc.		Taiwan		Telecommunications and internet service			2,000				2,000				200				100				1,532				86				86			Subsidiary
		Chief International Corp.		Samoa Islands		Telecommunications and internet service			6,068				6,068				200				100				45,836				4,616				4,616			Subsidiary
Chunghwa Telecom Singapore Pte., Ltd.		ST-2 Satellite Ventures Pte., Ltd.		Singapore		Operation of ST-2 telecommunications satellite			21,309				21,309				943				38				344,530				486,684				185,574			Associate
		CHT Infinity Singapore Pte., Ltd.		Singapore		Investment business			55,720				55,720				2,000				40				53,947				(768	)			(307	)		Associate
		Chunghwa Telecom Malaysia SDN. BHD.		Malaysia		International private leased circuit, IP VPN service, and ICT services			45,540				—				6,219				100				44,328				(2,056	)			(2,056	)		Subsidiary
Chunghwa Investment Co., Ltd.		Chunghwa Precision Test Tech. Co., Ltd.		Taiwan		Production and sale of semiconductor testing components and printed circuit board			175,951				178,608				11,063				34				2,959,109				997,181				340,890			Subsidiary
		CHIEF Telecom Inc.		Taiwan		Network integration, internet data center (“IDC”), communications integration and cloud application services			19,064				19,064				2,286				3				106,471				1,227,441				35,991			Associate
		Senao International Co., Ltd.		Taiwan		Selling and maintaining mobile phones and its peripheral products			49,731				49,731				1,001				—				45,706				445,292				1,726			Associate
		AgriTalk Technology Inc.		Taiwan		Providing smart agricultural solutions, scientific agricultural product, biological inhibitor, and biochips			—				65,175				—				—				—				(12,983	)			(3,544	)		Associate (Note 6)

(Continued)

- 93 -

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)

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Investor Company		Investee Company		Location		Main Businesses and Products		Original Investment Amount								Balance as of December 31, 2025												Net Income (Loss) of the Investee				Recognized Gain (Loss) (Notes 1 and 2)				Note
								December 31, 2025				December 31, 2024				Shares (Thousands)				Percentage of Ownership (%)				Carrying Value
		Imedtac Co., Ltd.		Taiwan		Providing medical AIoT solution, biomedical engineering services, and sales of medical device as an agent		$	91,381			$	91,381				2,559				10			$	53,608			$	(20,658	)		$	(3,204	)		Associate
		Porrima Inc.		Taiwan		Designing and selling zero-emission ships			80,000				80,000				8,000				9				73,731				(51,738	)			(5,174	)		Associate
		Gather Works Co., Ltd.		Taiwan		Film and drama IP development, copyright management and copyright sales			14,400				—				1,440				48				12,123				(4,744	)			(2,277	)		Associate
Chunghwa Precision Test Tech. Co., Ltd.		Chunghwa Precision Test Tech USA Corporation		United States		Design and after-sale services of semiconductor testing components and printed circuit board			74,192				74,192				2,600				100				107,069				1,783				1,819			Subsidiary
		CHPT Japan Co., Ltd.		Japan		Related services of electronic parts, machinery processed products and printed circuit board			2,008				2,008				1				100				2,220				92				92			Subsidiary
		Chunghwa Precision Test Tech. International, Ltd.		Samoa Islands		Wholesale and retail of electronic materials, and investment			173,649				173,649				5,700				100				133,449				(15,971	)			(9,454	)		Subsidiary
		TestPro Investment Co., Ltd.		Taiwan		Investment			195,000				135,000				19,500				100				84,812				(13,200	)			(11,489	)		Subsidiary
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				17,727				(24,644	)			(13,370	)		Subsidiary
Prime Asia Investments Group, Ltd.		Chunghwa Hsingta Co., Ltd.		Hong Kong		Investment			375,274				375,274				1				100				180,965				(3,408	)			(3,408	)		Subsidiary
Youth Co., Ltd.		ISPOT Co., Ltd.		Taiwan		Sale of information and communication technologies products			53,021				53,021				—				100				13,970				537				521			Subsidiary
Aval Technologies Co., Ltd.		Wiin Technology Co., Ltd.		Taiwan		Sale of information and communication technologies products			29,550				29,550				5,029				100				62,124				9,524				9,524			Subsidiary
CHYP Multimedia Marketing & Communications Co., Ltd		Click Force Marketing Company		Taiwan		Advertisement services			44,607				44,607				2,450				49				41,579				(9,989	)			(4,800	)		Associate
International Integrated Systems, Inc.		Unitronics Technology Corp.		Taiwan		Development and maintenance of information system			55,610				55,610				5,067				100				60,904				(1,209	)			(1,209	)		Subsidiary
CHT Security Co., Ltd.		Baohwa Trust Co., Ltd.		Taiwan		VR integration and AIoT security services			20,000				20,000				2,000				25				18,269				25,208				6,302			Associate

Note 1: The amounts were based on audited 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: CVC was approved to end and dissolve its business in November 2024, and CVC completed its liquidation in August 2025.

Note 6: CHI disposed of all its shares of ATT in October 2025.

Note 7: The Company disposed of all its shares of KKBOXTW in November 2025.

(Concluded)

- 94 -

TABLE 6

CHUNGHWA TELECOM CO., LTD.

INVESTMENTS IN MAINLAND CHINA

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Investee		Main Businesses and Products		Total Amount of Paid-in Capital				Investment Type (Note 1)				Accumulated Outflow of Investment from Taiwan as of January 1, 2025				Investment Flows								Accumulated Outflow of Investment from Taiwan as of December 31, 2025				Net Income (Loss) of the Investee				% Ownership of Direct or Indirect Investment				Investment Gain (Loss) (Note 2)				Carrying Value as of December 31, 2025				Accumulated Inward Remittance of Earnings as of December 31, 2025				Note
																Outflow				Inflow
Chunghwa Telecom (China) Co., Ltd.		Integrated information and communication solution services for enterprise clients, and intelligent energy network service		$	177,176				2			$	177,176			$	—			$	—			$	177,176			$	—				100			$	—			$	—			$	—			Note 6
Jiangsu Zhenghua Information Technology Company, LLC		Providing intelligent energy saving solution and intelligent buildings services			189,410				2				142,057				—				—				142,057				—				75				—				—				—			Note 7
Shanghai Taihua Electronic Technology Limited		Design of printed circuit board and related consultation service			51,233				2				51,233				—				—				51,233				611				100				611				9,732				—			Note 8
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				(16,690	)			100				(16,690	)			138,446				—			Note 8
Shanghai Chief Telecom Co., Ltd.		Telecommunications and internet service			10,150				1				4,973				—				—				4,973				5,851				49				2,867				8,662				10,194			Note 9

Investor		Accumulated Investment in Mainland China as of December 31, 2025				Investment Amounts Authorized by Investment Commission, MOEA				Upper Limit on Investment Stipulated by Investment Commission, MOEA
Chunghwa Telecom Co., Ltd. (Note 3)		$	319,233			$	319,233			$	240,474,045
Chunghwa Precision Test Tech. Co., Ltd. and its subsidiaries (Note 4)			170,432				216,185				5,268,256
CHIEF Telecom Inc. and its subsidiaries (Note 5)			4,973				4,973				2,184,159

Note 1: Investments are divided into three categories as follows:

a. Direct investment.

b. Investments through a holding company registered in a third region.

c. Others.

Note 2: The amounts were calculated based on the investee’s audited 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: Shanghai Chief Telecom Co., Ltd. was a reinvestment through CHIEF Telecom Inc.

- 95 -

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

ITEM		STATEMENT INDEX
MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY
STATEMENT OF CASH AND CASH EQUIVALENTS		1
STATEMENT OF FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS		2 and Note 7
STATEMENT OF HEDGING FINANCIAL INSTRUMENTS		Note 20
STATEMENT OF TRADE NOTES AND ACCOUNTS RECEIVABLE, NET		3
STATEMENT OF INVENTORIES		4
STATEMENT OF PREPAYMENTS		Note 12
STATEMENT OF OTHER CURRENT MONETARY ASSETS		Note 13
STATEMENT OF OTHER CURRENT ASSETS		Note 19
STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NONCURRENT		5
STATEMENT OF FINANCIAL ASSETS AT AMORTIZED COST		Note 9
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD		6
STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT		Note 15
STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS		7
STATEMENT OF CHANGES IN INVESTMENT PROPERTIES		Note 17
STATEMENT OF CHANGES IN INTANGIBLE ASSETS		Note 18
STATEMENT OF DEFERRED INCOME TAX ASSETS		Note 29
STATEMENT OF OTHER NONCURRENT ASSETS		Note 19
STATEMENT OF TRADE NOTES AND ACCOUNTS PAYABLE		8
STATEMENT OF OTHER PAYABLES		Note 23
STATEMENT OF CHANGES IN PROVISIONS		Note 24
STATEMENT OF BONDS PAYABLE		9
STATEMENT OF LEASE LIABILITIES		10
STATEMENT OF DEFERRED INCOME TAX LIABILITIES		Note 29
MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS
STATEMENT OF REVENUES		Note 40
STATEMENT OF OPERATING COSTS		11
STATEMENT OF OPERATING EXPENSES		12
STATEMENT OF OTHER INCOME AND EXPENSES		Note 28
STATEMENT OF INTEREST EXPENSES		Note 28
STATEMENT OF EMPLOYEE BENEFIT, DEPRECIATION AND AMORTIZATION BY FUNCTION		13

- 96 -

STATEMENT 1

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Item		Period				Annual Interest Rate / Earnings Rate				Amount
Cash
Cash on hand										$	122,131
Bank deposits
Checking deposits											681,390
Demand deposits(Note)											10,828,566
											11,632,087
Cash equivalents
Commercial paper
Mega Bills Finance Co., Ltd.			2025.11.24~2026.02.04				1.44%~1.45%				2,093,246
China Bills Finance Corporation			2025.11.26~2026.02.04				1.43%~1.45%				1,989,170
International Bills Finance Corporation			2025.11.24~2026.01.23				1.45%~1.46%				1,601,810
Taiwan Cooperative Bills Finance Corporation			2025.12.12~2026.01.14				1.35%				897,455
Grand Bills Finance Corporation			2025.12.22~2026.02.04				1.45%				500,000
Taishin International Bank Co., Ltd.			2025.12.12~2026.01.14				1.36%				496,063
											7,577,744
Time deposits			2025.11.03~2026.03.31				1.30%~1.73%				4,366,750
Negotiable certificates of deposit			2025.12.17~2026.03.17				1.64%				1,000,000
Stimulus vouchers											860
											12,945,354
										$	24,577,441

Note: Including USD28,441 thousand @31.43 and EUR1,113 thousand @36.90.

- 97 -

STATEMENT 2

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS-NONCURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

		Balance, January 1, 2025								Additions in Investment								Decrease in Investment								Balance, December 31, 2025
Investee Company		Shares (In Thousand)				Amount				Shares (In Thousand)				Amount				Shares (In Thousand)				Amount				Shares (In Thousand)				Percentage of Ownership (%)				Amount				Note
Financial assets at fair value through profit or loss
Taiwania Capital Buffalo Fund Co., Ltd.			555,600			$	450,621				—			$	—				—			$	50,506				555,600				—			$	400,115				Notes 1 and 6
TOP TAIWAN XIV VENTURE CAPITAL CO., LTD.			20,000				178,116				—				—				—				1,187				20,000				9.17				176,929				Note 1
Innovation Works Development Fund, L.P.			—				15,575				—				1,727				—				6,222				—				4.44				11,080				Notes 3 and 5
Taiwania Capital Buffalo Fund VI, L.P.			—				276,479				—				100,000				—				26,517				—				10.00				349,962				Notes 1 and 2
TRF 1 L.P.			—				—				—				122,150				—				—				—				10.00				122,150				Notes 2 and 5
Other investing agreements			—				36,757				—				75,792				—				42,852				—				—				69,697				Notes 1, 2 and 4
						$	957,548							$	299,669							$	127,284											$	1,129,933

Note 1: Decrease in investment was fair value adjustments.

Note 2: Additions in investment was participating in investment.

Note 3: Decrease in investment was cash refund from capital reduction.

Note 4: Decrease in investment was profit distribution.

Note 5: Increase in investment was fair value adjustments.

Note 6: Preferred stocks.

- 98 -

STATEMENT 3

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF TRADE NOTES AND ACCOUNTS RECEIVABLE, NET

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item		Amount
Mobile broadband services revenue		$	7,413,546
Project services revenue			6,048,197
Leased line services revenue			3,383,490
Internet and value-added services revenue			2,343,220
Local telephone services revenue			1,602,039
Others (Note)			3,379,839
			24,170,331
Less: Loss allowance			(1,145,980	)
		$	23,024,351

Note: The amount of individual item included in others does not exceed 5% of the account balance.

- 99 -

STATEMENT 4

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

		Amount
Item		Cost				Market Price (Note)
Merchandise		$	1,179,884			$	1,433,918
Project in process			5,661,641				8,361,989
		$	6,841,525			$	9,795,907

Note: Amount of net realizable value.

- 100 -

STATEMENT 5

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME-NONCURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

		Balance, January 1, 2025								Additions in Investment								Decrease in Investment								Balance, December 31, 2025
Investee Company		Shares (In Thousand)				Amount				Shares (In Thousand)				Amount				Shares (In Thousand)				Amount				Shares (In Thousand)				Percentage of Ownership (%)				Amount				Note
Financial assets at fair value through other comprehensive income
Non-listed stocks
Taipei Financial Center Corp.			172,927			$	3,757,704				—			$	594,934				—			$	—				172,927				11.76			$	4,352,638			Note 1
KKCompany Technologies Inc.			2,762				246,582				9,277				875,465				—				92,720				12,039				7.72				1,029,327			Notes 2, 3, 4 and 6
iKala Global Online Corp.			112,500				281,045				—				31,991				—				—				112,500				—				313,036			Notes 1 and 5
Da Da Broadband Ltd.			—				—				4,800				288,000				—				—				4,800				8.00				288,000			Note 2
Taiwan Smart Electricity & Energy Co., Ltd.			—				—				19,688				196,875				—				18,936				19,688				12.50				177,939			Notes 2 and 3
4 Gamers Entertainment Inc.			136				136,117				—				—				—				25,181				136				—				110,936			Notes 3 and 5
Manuscript Inc.			—				—				13				38,910				—				—				13				7.72				38,910			Note 6
Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II)			5,252				17,098				—				2,085				—				—				5,252				16.67				19,183			Note 1
Innovation Works Limited			1,000				3,572				—				3,336				—				—				1,000				—				6,908			Notes 1 and 5
Taiwan mobile payment Co., Ltd.			1,200				4,532				—				217				—				—				1,200				2.00				4,749			Note 1
Cornerstone Ventures Co., Ltd.			—				—				25				245				—				59				25				4.90				186			Notes 2 and 3
Global Mobile Corp.			7,617				—				—				—				—				—				7,617				2.76				—
RPTI Intergroup International Ltd.			4,765				—				—				—				—				—				4,765				10.19				—
						$	4,446,650							$	2,032,058							$	136,896											$	6,341,812

Note 1: Increase in investment was fair value adjustments.

Note 2: Additions in investment was participating in investment.

Note 3: Decrease in investment was fair value adjustments.

Note 4: Decrease in investment was capital reduction of the investees.

Note 5: Preferred stocks.

Note 6: KKCompany Technologies Inc. conducted a reduction of additional paid-in capital by distributing shares of Manuscript Inc.

- 101 -

STATEMENT 6

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

																										Increase (Decrease) in Using the Equity Method
		Balance, January 1, 2025								Additions in Investment								Decrease in Investment												Balance, December 31, 2025
Investee Company		Shares (In Thousand)				Amount				Shares (In Thousand)				Amount				Shares (In Thousand)				Amount								Shares (In Thousand)				Percentage of Ownership (%)				Amount				Market Value / Net Asset Value				Note
Investments accounted for using equity method Subsidiaries
Listed stocks
Senao International Co., Ltd.			71,773			$	(67,436	)			—			$	—				—			$	118,426			$	(9,744	)			71,773				28			$	(195,606	)		$	2,077,828			Notes 2 and 4
CHIEF Telecom Inc.			43,368				2,333,846				—				—				—				828,336				704,787				43,368				56				2,210,297				16,263,000			Notes 2 and 4
CHT Security Co., Ltd.			23,058				499,199				—				—				—				212,709				820,260				23,058				57				1,106,750				6,663,762			Notes 2 and 4
International Integrated Systems, Inc.			36,205				654,315				—				—				285				59,318				169,724				35,920				45				764,721				1,831,920			Notes 2, 4 and 5
Non-listed stocks
Light Era Development Co., Ltd.			300,000				3,839,467				—				—				—				20,216				10,770				300,000				100				3,830,021				3,881,405			Notes 1 and 4
Chunghwa Investment Co., Ltd.			68,085				3,167,570				—				—				—				13,617				582,513				68,085				89				3,736,466				3,811,444			Notes 1 and 4
Chunghwa Telecom Singapore Pte., Ltd.			26,383				1,282,150				—				—				—				158,489				226,064				26,383				100				1,349,725				1,357,649			Notes 1 and 4
Donghwa Telecom Co., Ltd.			178,590				928,105				—				—				—				—				62,140				178,590				100				990,245				990,245			Note 1
Chunghwa Telecom Global, Inc.			6,000				855,234				—				—				—				—				64,398				6,000				100				919,632				913,545			Note 1
Honghwa International Co., Ltd.			18,000				664,601				—				—				—				313,998				361,327				18,000				100				711,930				817,615			Notes 1 and 4
Chunghwa System Integration Co., Ltd.			60,000				695,078				—				—				—				39,985				34,883				60,000				100				689,976				699,514			Notes 1 and 4
Chunghwa Telecom Japan Co., Ltd.			1				280,861				—				—				—				—				77,470				1				100				358,331				366,242			Note 1
Chunghwa Leading Photonics Tech. Co., Ltd.			7,050				196,351				—				—				—				21,855				43,668				7,050				62				218,164				218,260			Notes 1 and 4
CHYP Multimedia Marketing & Communications Co., Ltd.			15,000				210,581				—				—				—				20,517				5,315				15,000				100				195,379				194,628			Notes 1 and 4
Prime Asia Investments Group Ltd. (B.V.I.)			1				183,762				—				—				—				—				(2,797	)			1				100				180,965				180,965			Note 1
Spring House Entertainment Tech. Inc.			8,251				166,407				—				—				—				18,564				16,383				8,251				56				164,226				148,488			Notes 1 and 4
Chunghwa Telecom (Thailand) Co., Ltd.			1,300				149,832				—				—				—				—				13,835				1,300				100				163,667				163,667			Note 1
CHT InventAI Co., Ltd.			—				—				12,000				120,000				—				—				(763	)			12,000				100				119,237				119,237			Notes 1 and 3
Chunghwa Telecom Europe GmbH			3,500				116,752				—				—				—				—				(2,478	)			3,500				100				114,274				114,274			Note 1
Smartfun Digital Co., Ltd.			6,500				84,284				—				—				—				11,323				13,142				6,500				65				86,103				87,406			Notes 1 and 4
Chunghwa Telecom Vietnam Co., Ltd.			—				76,320				—				—				—				—				(295	)			—				100				76,025				76,025			Note 1
Chunghwa Digital Cultural and Creative Capital Co., Ltd			5,000				39,201				—				—				—				—				(10,901	)			5,000				100				28,300				28,251			Note 1
Chunghwa Sochamp Technology Inc.			2,040				(15,290	)			—				—				—				—				15,290				—				—				—				—			Note 8
							16,341,190								120,000								1,837,353				3,194,991												17,818,828
Associates
Listed stocks
KingwayTek Technology Co., Ltd.			12,720				278,967				—				—				—				28,106				14,488				12,720				23				265,349				794,988			Notes 2 and 4
Non-listed stocks
Next Commercial Bank Co., Ltd.			462,643				3,950,922				—				—				—				—				(359,574	)			462,643				46				3,591,348				3,609,609			Note 1
Viettel-CHT Co., Ltd.			—				573,275				—				5,255				—				69,018				72,348				—				30				581,860				581,860			Notes 1, 3 and 4
Taiwan International Standard Electronics Co., Ltd.			1,760				379,357				—				—				—				120,978				119,710				1,760				40				378,089				510,792			Notes 1 and 4
WiAdvance Technology Corporation			3,700				273,440				—				—				—				—				(12,870	)			3,700				16				260,570				95,172			Note 1
Taiwania Hive Technology Fund L.P.			—				276,180				—				—				—				—				(42,123	)			—				40				234,057				255,342			Note 1
Chunghwa PChome Fund I Co., Ltd.			20,000				252,625				—				—				—				—				(367	)			20,000				50				252,258				232,853			Note 1
Taiwan International Ports Logistics Corporation			8,000				133,836				—				—				—				40,000				41,353				8,000				27				135,189				135,160			Notes 1 and 4
So-net Entertainment Taiwan Limited			9,429				192,968				—				—				—				—				(66,132	)			9,429				30				126,836				108,982			Note 1
KKBOX Taiwan Co., Ltd.			4,438				151,241				—				—				4,438				126,700				(24,541	)			—				—				—				—			Notes 1 and 6
Cornerstone Ventures Co., Ltd.			490				5,274				—				—				490				5,273				(1	)			—				—				—				—			Notes 1 and 7
Chunghwa Sochamp Technology Inc.							—				—				—				—				—				—				2,040				37				—				—			Note 8
							6,468,085								5,255								390,075				(257,709	)											5,825,556
Joint Ventures
Non-listed stocks
Chunghwa SEA Holdings			1,020				9,251				—				—				—				—				(168	)			1,020				51				9,083				9,083			Note 1
						$	22,818,526							$	125,255							$	2,227,428			$	2,937,114											$	23,653,467

Note 1: The amounts of net asset value were based on audited financial statements.

Note 2: Fair value was based on the closing price on the last trading day of the reporting period.

Note 3: Additions in investment was participating in investment.

Note 4: Decrease in investment was cash dividends received.

Note 5: Decrease in investment was due to disposal of some shares of the investee company before the investee company traded its shares on the emerging stock market according to the local requirements.

Note 6: Decrease in investment was due to disposed of its shares.

Note 7: Decrease in investment was due to the investee’s completion of its liquidation.

Note 8: The Company lost control over the investee and recognized the investee as an investment in associate since January 2025.

- 102 -

STATEMENT 7

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

		Land and Buildings (Handsets Base Stations)				Land and Buildings (Others)				Equipment				Total
Cost
Balance on January 1, 2025		$	23,288,140			$	2,154,519			$	4,257,454			$	29,700,113
Additions			3,270,169				446,069				184,924				3,901,162
Decreases			(875,492	)			(352,552	)			(3,583	)			(1,231,627	)
Balance on December 31, 2025		$	25,682,817			$	2,248,036			$	4,438,795			$	32,369,648
Accumulated depreciation and impairment
Balance on January 1, 2025		$	15,636,054			$	1,431,856			$	2,572,183			$	19,640,093
Depreciation expense			3,040,197				379,174				433,191				3,852,562
Decreases			(683,615	)			(331,694	)			(1,814	)			(1,017,123	)
Balance on December 31, 2025		$	17,992,636			$	1,479,336			$	3,003,560			$	22,475,532
Balance on January 1, 2025, net		$	7,652,086			$	722,663			$	1,685,271			$	10,060,020
Balance on December 31, 2025, net		$	7,690,181			$	768,700			$	1,435,235			$	9,894,116

- 103 -

STATEMENT 8

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF TRADE NOTES AND ACCOUNTS PAYABLE

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item		Amount
Payable of spare parts for equipment		$	2,504,500
Others (Note)			8,585,372
		$	11,089,872

Note: The amount of each item in others does not exceed 5% of the account balance.

- 104 -

STATEMENT 9

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF BONDS PAYABLE

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Bond Name		Trustee		Issuance Period		Repayment of the Principal and Interest Payment Date		Coupon Rate (%)				Total Amount				Repayments Made				Balance at December 31, 2025				Balance of unamortized discount				Carrying Value				Guarantee
Unsecured domestic bonds		Bank of Taiwan		2020.07~2025.07		Interest payable in July annually and one-time repayment upon maturity			0.50			$	8,800,000			$	(8,800,000	)		$	—			$	—			$	—				None
		Bank of Taiwan		2020.07~2027.07		Interest payable in July annually and one-time repayment upon maturity			0.54				7,500,000				—				7,500,000				(1,838	)			7,498,162				None
		Bank of Taiwan		2020.07~2030.07		Interest payable in July annually and one-time repayment upon maturity			0.59				3,700,000				—				3,700,000				(1,830	)			3,698,170				None
		Bank of Taiwan		2021.04~2026.04		Interest payable in April annually and one-time repayment upon maturity			0.42				1,900,000				—				1,900,000				(144	)			1,899,856				None
		Bank of Taiwan		2021.04~2028.04		Interest payable in April annually and one-time repayment upon maturity			0.46				4,100,000				—				4,100,000				(1,524	)			4,098,476				None
		Bank of Taiwan		2021.04~2031.04		Interest payable in April annually and one-time repayment upon maturity			0.50				1,000,000				—				1,000,000				(596	)			999,404				None
		Bank of Taiwan		2022.03~2027.03		Interest payable in March annually and one-time repayment upon maturity			0.69				3,500,000				—				3,500,000				(1,147	)			3,498,853				None
		Bank of Taiwan		2025.08~2030.08		Interest payable in August annually and one-time repayment upon maturity			1.73				3,500,000				—				3,500,000				(4,783	)			3,495,217				None
												$	34,000,000			$	(8,800,000	)		$	25,200,000			$	(11,862	)			25,188,138
Less: Current portion																													(1,899,856	)
																												$	23,288,282

- 105 -

STATEMENT 10

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF LEASE LIABILITIES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item

Period

Discount Rate (%)

Amount

Land and buildings

Handsets base stations

1~20 years

0.37~2.00

$

7,470,679

Others

1~30 years

0.37~1.88

789,953

Equipment

1~8 years

0.37~1.73

1,758,288

10,018,920

Less: Lease liabilities-current

(3,493,065

)

Lease liabilities-noncurrent

$

6,525,855

- 106 -

STATEMENT 11

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item		Amount
Depreciation		$	30,684,880
Cost of products			18,635,788
Amortization			13,463,701
Salaries			9,366,120
Repair, maintenance and warranty expenses			7,393,427
Compensation			6,195,593
Others (Note)			38,369,290
		$	124,108,799

Note: The amount of each item in others does not exceed 5% of the account balance.

- 107 -

STATEMENT 12

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item		Marketing				General and Administrative				Research and Development				Expected Credit Loss				Total
Salaries		$	6,373,890			$	1,665,516			$	1,279,993			$	—			$	9,319,399
Compensation			4,275,732				1,114,955				865,982				—				6,256,669
Professional service fee			2,348,459				489,626				367,308				—				3,205,393
Welfare fee			1,406,553				342,645				273,263				—				2,022,461
Depreciation			875,118				445,941				140,936				—				1,461,995
Marketing and promotion expenses			1,037,946				—				—				—				1,037,946
Expected credit loss			—				—				—				201,648				201,648
Others (Note)			4,029,238				1,775,138				393,918				—				6,198,294
		$	20,346,936			$	5,833,821			$	3,321,400			$	201,648			$	29,703,805

Note: The amount of each item in others does not exceed 5% of the account balance.

- 108 -

STATEMENT 13

CHUNGHWA TELECOM CO., LTD.

STATEMENT OF EMPLOYEE BENEFIT, DEPRECIATION AND AMORTIZATION BY FUNCTION

FOR THE YEARS ENDED DECEMBER 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

		Year Ended December 31, 2025												Year Ended December 31, 2024
		Classified as Operating Costs				Classified as Operating Expenses				Total				Classified as Operating Costs				Classified as Operating Expenses				Total
Employee benefit expenses
Salaries		$	9,366,120			$	9,319,399			$	18,685,519			$	9,224,709			$	8,915,338			$	18,140,047
Insurance			1,140,351				1,071,242				2,211,593				1,081,814				1,000,938				2,082,752
Pension			685,965				673,519				1,359,484				716,000				693,897				1,409,897
Remuneration to directors			—				48,128				48,128				—				46,048				46,048
Others			7,795,139				7,773,147				15,568,286				7,099,505				6,925,042				14,024,547
		$	18,987,575			$	18,885,435			$	37,873,010			$	18,122,028			$	17,581,263			$	35,703,291
Depreciation		$	30,684,880			$	1,461,995			$	32,146,875			$	30,227,718			$	1,406,961			$	31,634,679
Amortization		$	13,463,701			$	95,779			$	13,559,480			$	13,211,153			$	115,021			$	13,326,174

Note 1: The average numbers of the Company’s employees were 20,443 and 20,096 including 10 non-employee directors in 2025 and 2024, respectively.

Note 2: The average employee benefits expense were $1,851 thousand and $1,775 thousand for the years ended December 31, 2025 and 2024, respectively. (Which refers to [total employee benefits-total directors’ remuneration] divided by [number of employees-number of non-employee directors].)

Note 3: The average salary expenses were $914 thousand and $903 thousand for the years ended December 31, 2025 and 2024, respectively. (Which refers to [salary expenses] divided by [number of employees-number of non-employee directors]). The change of average salary expenses is approximately 1.2%.

Note 4: The Company does not have supervisors; therefore, there is no remuneration to supervisors.

Note 5: The remuneration policies for directors, management personnel, and employees were as follows:

a. General directors and independent directors:

(i) Fixed remuneration is based on monthly basis resolved by the Board of Directors.

(ii) Floating remuneration is based on distribution stated in the Company’s Articles of Incorporation. Please refer to Note 28(7) for details. Independent directors are excluded from the aforementioned distribution.

b. The remuneration to directors and management personnel are evaluated regularly and determined by the compensation committee of the Company.

c. The remuneration to management personnel is based on the company’s executive performance management and guidelines which are linked to the Company’s performance, business unit performance and personal performance. In addition, the result of ESG sustainable development is taken into consideration for the floating remuneration.

d. Compensation to employees is based on the Company’s salary guidance.

Note 6: The Company’s salary expenses refer to recurring grants such as base salary, job premiums, and overtime pay, and exclude compensation expenses.

- 109 -

Exhibit 99.3

Chunghwa Telecom Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the

Years Ended December 31, 2025 and 2024 and

Independent Auditors’ Report

REPRESENTATION LETTER

The entities that are required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the year ended December 31, 2025 are all the same as those included in the consolidated financial statements of Chunghwa Telecom Co., Ltd. and its subsidiaries prepared in conformity with the International Financial Reporting Standard 10 “Consolidated Financial Statements”. Relevant information that should be disclosed in the consolidated financial statements of affiliates is included in the consolidated financial statements of Chunghwa Telecom Co., Ltd. and its subsidiaries. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,
CHUNGHWA TELECOM CO., LTD.
By		/s/ Chih-Cheng Chien
Chih-Cheng Chien
Chairman
February 26, 2026

- 1 -

INDEPENDENT AUDITORS’ REPORT

PWCR25003503

To the Board of Directors and Stockholders of Chunghwa Telecom Co., Ltd.

Opinion

We have audited the accompanying consolidated balance sheets of Chunghwa Telecom Co., Ltd. and its subsidiaries (the “Company”) as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2025 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2025 consolidated financial statements are stated as follows:

Accuracy of revenues from mobile services, fixed-line broadband services and fixed-line data services

Description

Refer to Note 3 for the accounting policies on revenue recognition and Notes 30 and 44 for details of revenue.

- 2 -

The Company recognizes revenues from mobile services, fixed-line broadband services and fixed-line data services based on the terms of mobile services, fixed-line broadband services and fixed-line data services contracts and actual usage of mobile services, fixed-line broadband services and fixed-line data services. Given that revenues from mobile services, fixed-line broadband services and fixed-line data services are comprised of a high volume of low-dollar transactions from a large number of contracts and a wide variety of tariff plans, the Company highly relies on the automated information systems to process and recognize revenues from mobile services, fixed-line broadband services and fixed-line data services.

Given the Company’s revenues from mobile services, fixed-line broadband services and fixed-line data services are comprised of a high volume of low-dollar transactions and highly relies on information technology systems, a high degree of auditor effort was required in performing procedures related to accuracy of the Company’s revenues from mobile services, fixed-line broadband services and fixed-line data services. Thus, we consider the accuracy of revenues from mobile services, fixed-line broadband services and fixed-line data services as a key audit matter.

How our audit addressed the matter

Our audit procedures performed in respect of the above included the following:

1. Obtained an understanding over the design of internal controls and information systems related to the business process of the Company’s revenue recognition on mobile services, fixed-line broadband services and fixed-line data services and evaluated operating effectiveness of such controls. This includes the following procedures:

• Obtained an understanding and evaluated the significant systems related to revenues from mobile services, fixed-line broadband services and fixed-line data services, and tested the information technology general controls as well as the automated controls for automatic calculations and system interface over these systems.

• Tested manual controls related to the review of information on mobile services, fixed-line broadband services and fixed-line data services, including service acceptance, updates to price information, data collection and system interface, pricing, billing, and accounting processes.

2. Selected samples from mobile services, fixed-line broadband services and fixed-line data services revenues, agreed the samples selected to service contracts, invoices, payment records, and tested consistency between the data entered into the system and the original service contracts.

Other matter – Parent company only financial reports

We have audited and expressed an unmodified opinion on the parent company only financial statements of Chunghwa Telecom Co., Ltd. as of and for the years ended December 31, 2025 and 2024.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

- 3 -

In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Company’s financial reporting process.

Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

- 4 -

6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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

For and on behalf of PricewaterhouseCoopers, Taiwan

February 26, 2026

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’ 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.

- 5 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

		2025								2024
ASSETS		Amount				%				Amount				%
CURRENT ASSETS
Cash and cash equivalents (Notes 3, 6, 14 and 38)		$	36,944,206				7			$	36,259,689				6
Financial assets at fair value through profit or loss (Notes 3, 4 and 7)			3,372				—				290				—
Financial assets at fair value through other comprehensive income (Notes 3, 4 and 8)			18,555				—				—				—
Hedging financial assets (Notes 3 and 21)			3,204				—				1,133				—
Contract assets (Notes 3 and 30)			8,576,194				2				8,401,343				2
Trade notes and accounts receivable, net (Notes 3, 4, 10 and 30)			27,396,423				5				26,025,696				5
Receivables from related parties (Note 38)			213,480				—				193,004				—
Inventories (Notes 3, 4, 11, 30, 39 and 40)			13,178,595				2				12,087,118				2
Prepayments (Note 12)			3,789,733				1				3,138,313				1
Other current monetary assets (Notes 13, 28 and 38)			23,467,523				4				23,408,001				4
Incremental costs of obtaining contracts (Notes 3 and 30)			338,581				—				339,172				—
Other current assets (Notes 20, 32 and 39)			3,441,219				1				3,114,554				1
Total current assets			117,371,085				22				112,968,313				21
NONCURRENT ASSETS
Financial assets at fair value through profit or loss (Notes 3, 4 and 7)			1,211,352				—				1,005,236				—
Financial assets at fair value through other comprehensive income (Notes 3, 4 and 8)			6,786,803				1				4,666,976				1
Financial assets at amortized cost (Notes 3 and 9)			2,020,300				—				2,000,000				—
Investments accounted for using equity method (Notes 3 and 15)			8,456,132				2				9,073,464				2
Contract assets (Notes 3 and 30)			4,733,374				1				4,327,424				1
Property, plant and equipment (Notes 3, 4, 14, 16, 35, 38, 39 and 40)			288,164,825				55				289,840,144				55
Right-of-use assets (Notes 3, 4, 17 and 38)			10,763,909				2				10,912,329				2
Investment properties (Notes 3, 4 and 18)			12,420,318				2				12,301,719				2
Intangible assets (Notes 3, 4, 19 and 38)			59,762,175				11				66,283,202				12
Deferred income tax assets (Notes 3, 14 and 32)			1,781,649				—				1,661,402				—
Incremental costs of obtaining contracts (Notes 3 and 30)			1,109,029				—				1,221,652				—
Net defined benefit assets (Notes 3, 4 and 28)			9,865,533				2				8,883,719				2
Prepayments (Notes 12 and 40)			5,931,213				1				4,461,017				1
Other noncurrent assets (Notes 20, 39 and 40)			5,494,254				1				4,885,230				1
Total noncurrent assets			418,500,866				78				421,523,514				79
TOTAL		$	535,871,951				100			$	534,491,827				100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans (Notes 14 and 22)		$	340,000				—			$	215,000				—
Financial liabilities at fair value through profit or loss (Notes 3, 4 and 7)			3				—				—				—
Hedging financial liabilities (Notes 3 and 21)			56				—				1,907				—
Contract liabilities (Notes 3, 30 and 40)			21,296,124				4				16,300,986				3
Trade notes and accounts payable (Note 25)			15,922,842				3				17,742,532				3
Payables to related parties (Note 38)			176,746				—				480,401				—
Current tax liabilities (Notes 3 and 32)			5,218,971				1				4,718,103				1
Lease liabilities (Notes 3, 4, 17, 35 and 38)			3,889,510				1				3,557,874				1
Other payables (Notes 26 and 35)			28,716,142				5				26,581,353				5
Provisions (Notes 3 and 27)			524,743				—				441,801				—
Current portion of long-term liabilities (Notes 3, 23, 24 and 39)			1,899,856				—				8,802,526				2
Other current liabilities			957,029				—				1,050,559				—
Total current liabilities			78,942,022				14				79,893,042				15
NONCURRENT LIABILITIES
Long-term loans (Notes 3, 23 and 39)			1,600,000				—				1,631,354				—
Bonds payable (Notes 3 and 24)			23,288,282				4				21,689,326				4
Contract liabilities (Notes 3, 30 and 40)			6,567,398				1				7,540,730				2
Deferred income tax liabilities (Notes 3 and 32)			2,828,682				1				2,658,419				—
Provisions (Notes 3 and 27)			560,273				—				534,684				—
Lease liabilities (Notes 3, 4, 17, 35 and 38)			7,000,631				2				7,333,503				2
Customers’ deposits (Note 38)			5,261,997				1				5,310,453				1
Net defined benefit liabilities (Notes 3, 4 and 28)			2,329,312				—				2,107,224				—
Other noncurrent liabilities			6,703,278				2				7,688,236				2
Total noncurrent liabilities			56,139,853				11				56,493,929				11
Total liabilities			135,081,875				25				136,386,971				26
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT (Notes 14 and 29)
Common stocks			77,574,465				15				77,574,465				15
Additional paid-in capital			172,450,886				32				171,587,279				32
Retained earnings
Legal reserve			77,574,465				15				77,574,465				15
Special reserve			2,675,419				—				2,675,419				—
Unappropriated earnings			54,962,307				10				54,953,379				10
Total retained earnings			135,212,191				25				135,203,263				25
Others			1,020,169				—				585,683				—
Total equity attributable to stockholders of the parent			386,257,711				72				384,950,690				72
NONCONTROLLING INTERESTS (Notes 14 and 29)			14,532,365				3				13,154,166				2
Total equity			400,790,076				75				398,104,856				74
TOTAL		$	535,871,951				100			$	534,491,827				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

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

		2025								2024
		Amount				%				Amount				%
REVENUES (Notes 3, 30, 38 and 44)		$	236,114,409				100			$	229,968,292				100
OPERATING COSTS (Notes 3, 11, 28, 30, 31 and 38)			149,145,192				63				146,582,797				64
GROSS PROFIT			86,969,217				37				83,385,495				36
OPERATING EXPENSES (Notes 3, 10, 28, 31 and 38)
Marketing			26,019,335				11				25,103,662				11
General and administrative			7,718,111				3				7,175,286				3
Research and development			4,362,479				2				4,167,200				2
Expected credit loss			209,446				—				188,064				—
Total operating expenses			38,309,371				16				36,634,212				16
OTHER INCOME AND EXPENSES (Notes 16, 18, 31 and 44)			(112,144	)			—				121,853				—
INCOME FROM OPERATIONS			48,547,702				21				46,873,136				20
NON-OPERATING INCOME AND EXPENSES
Interest income (Notes 38 and 44)			904,058				—				780,968				1
Other income (Notes 8, 31 and 38)			491,743				—				463,343				—
Other gains and losses (Notes 14, 15, 31, 37 and 38)			632,532				—				(178,503	)			—
Interest expense (Notes 17, 31, 38 and 44)			(370,367	)			—				(339,342	)			—
Share of profits of associates and joint ventures accounted for using equity method (Notes 15 and 44)			63,932				—				154,187				—
Total non-operating income and expenses			1,721,898				—				880,653				1
INCOME BEFORE INCOME TAX			50,269,600				21				47,753,789				21
INCOME TAX EXPENSE (Notes 3 and 32)			9,752,500				4				9,216,287				4
NET INCOME			40,517,100				17				38,537,502				17
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit pension plans (Note 28)			97,822				—				2,254,578				1
Unrealized gain or loss on investments in equity instruments at fair value through other comprehensive income (Notes 3, 29 and 37)			620,589				—				48,185				—

(Continued)

- 7 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

		2025								2024
		Amount				%				Amount				%
Gain or loss on hedging instruments subject to basis adjustment (Notes 3 and 21)		$	3,922				—			$	(730	)			—
Share of other comprehensive income of associates and joint ventures (Notes 3, 15 and 29)			9,738				—				14,243				—
Income tax relating to items that will not be reclassified to profit or loss (Note 32)			(19,974	)			—				(450,916	)			—
			712,097				—				1,865,360				1
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations			(218,289	)			—				192,188				—
Share of other comprehensive income of associates and joint ventures (Note 15)			12,010				—				22,944				—
			(206,279	)			—				215,132				—
Total other comprehensive income, net of income tax			505,818				—				2,080,492				1
TOTAL COMPREHENSIVE INCOME		$	41,022,918				17			$	40,617,994				18
NET INCOME ATTRIBUTABLE TO
Stockholders of the parent		$	38,712,404				16			$	37,220,464				16
Noncontrolling interests			1,804,696				1				1,317,038				1
		$	40,517,100				17			$	38,537,502				17
COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent		$	39,230,646				17			$	39,254,340				17
Noncontrolling interests			1,792,272				—				1,363,654				1
		$	41,022,918				17			$	40,617,994				18
EARNINGS PER SHARE (Note 33)
Basic		$	4.99							$	4.80
Diluted		$	4.98							$	4.79

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

- 8 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

		Equity Attributable to Stockholders of the Parent (Notes 14, 21 and 29)
																						Others
																										Unrealized Gain
																										or Loss on
																						Exchange				Financial Assets
																						Differences				at Fair Value
										Retained Earnings												Arising from the				Through Other				Gain or Loss								Noncontrolling
						Additional												Unappropriated				Translation of the				Comprehensive				on Hedging								Interests
		Common Stocks				Paid-in Capital				Legal Reserve				Special Reserve				Earnings				Foreign Operations				Income				Instruments				Total				(Notes 14 and 29)				Total Equity
BALANCE, JANUARY 1, 2024		$	77,574,465			$	171,289,086			$	77,574,465			$	2,898,503			$	52,618,677			$	(167,812	)		$	520,748			$	(44	)		$	382,308,088			$	12,596,252			$	394,904,340
Appropriation of 2023 earnings
Special reserve			—				—				—				(223,084	)			223,084				—				—				—				—				—				—
Cash dividends distributed by Chunghwa			—				—				—				—				(36,909,931	)			—				—				—				(36,909,931	)			—				(36,909,931	)
Cash dividends distributed by subsidiaries			—				—				—				—				—				—				—				—				—				(898,565	)			(898,565	)
Unclaimed dividend			—				2,109				—				—				—				—				—				—				2,109				—				2,109
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method			—				71,883				—				—				—				—				—				—				71,883				13,029				84,912
Actual disposal of interests in subsidiaries			—				224,293				—				—				—				—				—				—				224,293				34,480				258,773
Net income for the year ended December 31, 2024			—				—				—				—				37,220,464				—				—				—				37,220,464				1,317,038				38,537,502
Other comprehensive income (loss) for the year ended December 31, 2024			—				—				—				—				1,801,085				190,664				42,857				(730	)			2,033,876				46,616				2,080,492
Total comprehensive income (loss) for the year ended December 31, 2024			—				—				—				—				39,021,549				190,664				42,857				(730	)			39,254,340				1,363,654				40,617,994
Changes in equities of subsidiaries			—				(92	)			—				—				—				—				—				—				(92	)			45,316				45,224
BALANCE, DECEMBER 31, 2024			77,574,465				171,587,279				77,574,465				2,675,419				54,953,379				22,852				563,605				(774	)			384,950,690				13,154,166				398,104,856
Appropriation of 2024 earnings
Cash dividends distributed by Chunghwa			—				—				—				—				(38,787,232	)			—				—				—				(38,787,232	)			—				(38,787,232	)
Cash dividends distributed by subsidiaries			—				—				—				—				—				—				—				—				—				(1,307,323	)			(1,307,323	)
Unclaimed dividend			—				1,926				—				—				—				—				—				—				1,926				—				1,926
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method			—				(5,929	)			—				—				—				—				—				—				(5,929	)			140				(5,789	)
Actual disposal of interests in subsidiaries			—				235,552				—				—				—				—				—				—				235,552				75,106				310,658
Change in additional paid-in capital for not participating in the capital increase of subsidiaries			—				629,972				—				—				—				—				—				—				629,972				759,248				1,389,220
Net income for the year ended December 31, 2025			—				—				—				—				38,712,404				—				—				—				38,712,404				1,804,696				40,517,100
Other comprehensive income (loss) for the year ended December 31, 2025			—				—				—				—				83,740				(214,531	)			645,111				3,922				518,242				(12,424	)			505,818
Total comprehensive income (loss) for the year ended December 31, 2025			—				—				—				—				38,796,144				(214,531	)			645,111				3,922				39,230,646				1,792,272				41,022,918
Disposal of investments in equity instruments at fair value through other comprehensive income			—				—				—				—				16				—				(16	)			—				—				—				—
Changes in equities of subsidiaries			—				2,086				—				—				—				—				—				—				2,086				39,222				41,308
Net increase in noncontrolling interests			—				—				—				—				—				—				—				—				—				19,534				19,534
BALANCE, DECEMBER 31, 2025		$	77,574,465			$	172,450,886			$	77,574,465			$	2,675,419			$	54,962,307			$	(191,679	)		$	1,208,700			$	3,148			$	386,257,711			$	14,532,365			$	400,790,076

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

- 9 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax		$	50,269,600			$	47,753,789
Adjustments for:
Depreciation			33,549,658				32,919,862
Amortization			6,666,281				6,698,604
Amortization of incremental costs of obtaining contracts			944,587				905,990
Expected credit loss			209,446				188,064
Valuation loss on financial assets and liabilities at fair value through profit or loss, net			91,513				147,026
Interest expense			370,367				339,342
Interest income			(904,058	)			(780,968	)
Dividend income			(280,667	)			(239,908	)
Compensation cost of share-based payment transactions			10,294				7,700
Share of profits of associates and joint ventures accounted for using equity method			(63,932	)			(154,187	)
Loss on disposal of property, plant and equipment			28,555				17,347
Gain on disposal of intangible assets			(276	)			—
Gain on disposal of financial instruments			—				(1,077	)
Gain on disposal of investments accounted for using equity method			(738,929	)			—
Provision for impairment loss and obsolescence of inventory			34,070				60,381
Impairment loss on property, plant and equipment			112,219				—
Reversal of impairment loss on investment properties			(28,354	)			(139,200	)
Gain on disposal of subsidiaries			(15,290	)			—
Others			(18,910	)			(67,746	)
Changes in operating assets and liabilities:
Decrease (increase) in:
Contract assets			(593,906	)			(2,249,458	)
Trade notes and accounts receivable			(1,581,327	)			(1,322,106	)
Receivables from related parties			(20,476	)			(114,915	)
Inventories			(1,132,068	)			(626,734	)
Prepayments			(411,025	)			(29,202	)
Other current assets			(328,961	)			(292,295	)
Other current monetary assets			(1,372,770	)			63,556
Incremental cost of obtaining contracts			(831,373	)			(1,316,482	)
Increase (decrease) in:
Contract liabilities			4,029,182				2,192,948
Trade notes and accounts payable			(1,810,371	)			3,346,607
Payables to related parties			(303,655	)			95,312
Other payables			1,802,153				1,540,200
Provisions			108,531				153,812
Net defined benefit plans			(661,904	)			(656,764	)
Other current liabilities			(95,913	)			77,697
Cash generated from operations			87,032,291				88,517,195

(Continued)

- 10 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

		2025				2024
Interests paid		$	(363,509	)		$	(333,456	)
Income taxes paid			(9,223,235	)			(8,939,418	)
Net cash provided by operating activities			77,445,547				79,244,321
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income			(1,517,922	)			(312,780	)
Proceeds from disposal of financial assets at fair value through other comprehensive income			374				—
Proceeds from capital reduction of financial assets at fair value through other comprehensive income			—				111,795
Acquisition of financial assets at amortized cost			(20,300	)			(2,000,000	)
Acquisition of financial assets at fair value through profit or loss			(325,792	)			(162,304	)
Proceeds from disposal of financial assets at fair value through profit or loss			—				4,920
Acquisition of investments accounted for using equity method			(19,655	)			(775,747	)
Proceeds from disposal of investments accounted for using equity method			886,090				—
Net cash outflow from loss of control of subsidiaries			(8,664	)			—
Acquisition of property, plant and equipment			(27,698,023	)			(28,755,550	)
Proceeds from disposal of property, plant and equipment			20,739				12,995
Acquisition of intangible assets			(143,675	)			(234,144	)
Proceeds from disposal of intangible assets			342				—
Acquisition of investment properties			(73,974	)			(4,333	)
Acquisition of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months			(54,079,731	)			(72,914,674	)
Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months			55,181,734				69,886,296
Increase in other noncurrent assets			(622,489	)			(258,306	)
Increase in prepayments for leases			(1,711,886	)			(1,400,074	)
Interests received			912,403				764,108
Dividends received			911,506				663,161
Proceeds from capital reduction and profit distribution of financial assets at fair value through profit or loss			25,084				42,514
Net cash used in investing activities			(28,283,839	)			(35,332,123	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans			3,745,000				700,000
Repayment of short-term loans			(3,555,000	)			(1,070,000	)
Proceeds from issuance of bonds			3,500,000				—
Repayment of bonds payable			(8,800,000	)			—
Payments for transaction costs attributable to the issuance of bonds			(4,985	)			—

(Continued)

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

		2025				2024
Proceeds from long-term loans		$	—			$	35,000
Repayment of long-term loans			(35,000	)			—
Decrease in customers’ deposits			(38,947	)			(9,121	)
Payments for the principal of lease liabilities			(4,134,509	)			(3,944,494	)
Increase (decrease) in other noncurrent liabilities			(984,958	)			282,678
Cash dividends paid			(38,787,232	)			(36,909,931	)
Partial disposal of interests in subsidiaries without a loss of control			310,658				258,773
Cash dividends distributed to noncontrolling interests			(1,094,115	)			(898,565	)
Change in other noncontrolling interests			1,420,234				37,524
Unclaimed dividend			1,926				2,109
Net cash used in financing activities			(48,456,928	)			(41,516,027	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS			(20,263	)			39,634
NET INCREASE IN CASH AND CASH EQUIVALENTS			684,517				2,435,805
CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR			36,259,689				33,823,884
CASH AND CASH EQUIVALENTS, END OF THE YEAR		$	36,944,206			$	36,259,689

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

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL

Chunghwa Telecom Co., Ltd. (“Chunghwa”; Chunghwa together with its subsidiaries are hereinafter referred to collectively as the “Company”.) was incorporated on July 1, 1996 in the Republic of China (“ROC”). Chunghwa is a company limited by shares and, prior to August 2000, was wholly owned by the Ministry of Transportation and Communications (“MOTC”). Prior to July 1, 1996, the current operations of Chunghwa were carried out under the Directorate General of Telecommunications (“DGT”). The DGT was established by the MOTC in June 1943 to take primary responsibility in the development of telecommunications infrastructure and to formulate policies related to telecommunications. On July 1, 1996, the telecom operations of the DGT were spun-off as Chunghwa which continues to carry out the business and the DGT continues to be the industry regulator.

Effective August 12, 2005, the MOTC completed the process of privatizing Chunghwa by reducing the government ownership to below 50% in various stages. In July 2000, Chunghwa received approval from the Securities and Futures Commission (the “SFC”) for a domestic initial public offering and its common stocks were listed and traded on the Taiwan Stock Exchange (the “TWSE”) on October 27, 2000. Certain of Chunghwa’s common stocks were sold, in connection with the foregoing privatization plan, in domestic public offerings at various dates from August 2000 to July 2003. Certain of Chunghwa’s common stocks were also sold in an international offering of securities in the form of American Depository Shares (“ADS”) on July 17, 2003 and were listed and traded on the New York Stock Exchange (the “NYSE”). The MOTC sold common stocks of Chunghwa by auction in the ROC on August 9, 2005 and completed the second international offering on August 10, 2005. Upon completion of the share transfers associated with these offerings on August 12, 2005, the MOTC owned less than 50% of the outstanding shares of Chunghwa and completed the privatization plan.

The consolidated financial statements are presented in Chunghwa’s functional currency, New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Board of Directors on February 26, 2026.

3. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

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 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 Financial Supervisory Commission (the “FSC”) (collectively, the “Taiwan-IFRS”).

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Basis of Preparation

The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values and net defined benefit liabilities (assets) which are measured at the present value of the defined benefit obligations less the fair value of plan assets.

Current and Noncurrent Assets and Liabilities

Current assets include:

a. Assets held primarily for the purpose of trading;

b. Assets expected to be realized within twelve months after the reporting period; and

c. Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

Current liabilities include:

a. Liabilities held primarily for the purpose of trading;

b. Liabilities due to be settled within twelve months after the reporting period; and

c. Liabilities for which the Company on the balance sheet date does not have in substance the right to defer settlement for at least twelve months after the reporting period.

Assets and liabilities that are not classified as current are classified as noncurrent.

Light Era Development Co., Ltd. (“LED”) engages mainly in development of property for rent and sale. The assets and liabilities of LED related to property development within its operating cycle, which is over one year, are classified as current items.

Basis of Consolidation

a. Principles for preparing consolidated financial statements

The consolidated financial statements incorporate the financial statements of Chunghwa and entities controlled by Chunghwa (its subsidiaries).

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with those used by the Company.

All inter-company transactions, balances, income and expenses are eliminated in full upon consolidation.

Attribution of total comprehensive income to noncontrolling interests

Total comprehensive income of subsidiaries is attributed to the stockholders of the parent and to the noncontrolling interests even if it results in the noncontrolling interests having a deficit balance.

Changes in the Company’s ownership interests in subsidiaries

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Company’s interests and the noncontrolling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to stockholders of the parent.

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Loss of control of subsidiaries

When the Company loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (a) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (b) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Company accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Company directly disposed of the related assets or liabilities.

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the cost on initial recognition of an investment in an associate.

b. The subsidiaries in the consolidated financial statements

The detail information of the subsidiaries at the end of reporting period was as follows:

						Percentage of Ownership Interests
						December 31
Name of Investor		Name of Investee		Main Businesses and Products		2025				2024				Note
Chunghwa Telecom Co., Ltd.		Senao International Co., Ltd. (“SENAO”)		Handset and peripherals retailer, sales of CHT mobile phone plans as an agent			28				28			a)
		Light Era Development Co., Ltd. (“LED”)		Planning and development of real estate and intelligent buildings, and property management			100				100
		Donghwa Telecom Co., Ltd. (“DHT”)		International private leased circuit, IP VPN service, and IP transit services			100				100
		Chunghwa Telecom Singapore Pte., Ltd. (“CHTS”)		International private leased circuit, IP VPN service, and IP transit services			100				100
		Chunghwa System Integration Co., Ltd. (“CHSI”)		Providing system integration services and telecommunications equipment			100				100
		Chunghwa Investment Co., Ltd. (“CHI”)		Investment			89				89
		CHIEF Telecom Inc. (“CHIEF”)		Network integration, internet data center (“IDC”), communications integration and cloud application services			56				56			b)
		CHYP Multimedia Marketing & Communications Co., Ltd. (“CHYP”)		Digital information supply services and advertisement services			100				100
		Prime Asia Investments Group Ltd. (“Prime Asia”)		Investment			100				100
		Spring House Entertainment Tech. Inc. (“SHE”)		Software design services, internet contents production and play, and motion picture production and distribution			56				56
		Chunghwa Telecom Global, Inc. (“CHTG”)		International private leased circuit, internet services, and transit services			100				100
		Chunghwa Telecom Vietnam Co., Ltd. (“CHTV”)		Intelligent energy saving solutions, international circuit, and information and communication technology (“ICT”) services.			100				100
		Smartfun Digital Co., Ltd. (“SFD”)		Providing diversified family education digital services			65				65
		Chunghwa Telecom Japan Co., Ltd. (“CHTJ”)		International private leased circuit, IP VPN service, and IP transit services			100				100
		Chunghwa Sochamp Technology Inc. (“CHST”)		Design, development and production of Automatic License Plate Recognition software and hardware			—				37			c)

(Continued)

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						Percentage of Ownership Interests
						December 31
Name of Investor		Name of Investee		Main Businesses and Products		2025				2024				Note
		Honghwa International Co., Ltd. (“HHI”)		Telecommunications engineering, sales agent of mobile phone plan application and other business services, etc.			100				100
		Chunghwa Leading Photonics Tech Co., Ltd. (“CLPT”)		Production and sale of electronic components and finished products			62				70			d)
		Chunghwa Telecom (Thailand) Co., Ltd. (“CHTT”)		International private leased circuit, IP VPN service, ICT and cloud VAS services			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			57				63			e)
		International Integrated Systems, Inc. (“IISI”)		IT solution provider, IT application consultation, system integration and package solution			45				50			f)
		Chunghwa Digital Cultural and Creative Capital Co., Ltd (“CDCC Capital”)		Investment and management consulting			100				100			g)
		Chunghwa Telecom Europe GmbH (“CHTEU”)		International private leased circuit, internet services, transit services and ICT services			100				100			h)
		CHT InventAI Co., Ltd. (“CHAI”)		AI software, system development, application services, and enterprise consulting			100				—			i)
Senao International Co., Ltd.		Youth Co., Ltd. (“Youth”)		Sale of information and communication technologies products			96				96
		Aval Technologies Co., Ltd. (“Aval”)		Sale of information and communication technologies products			100				100
		Senyoung Insurance Agent Co., Ltd. (“SENYOUNG”)		Property and liability insurance agency			100				100
Youth Co., Ltd.		ISPOT Co., Ltd. (“ISPOT”)		Sale of information and communication technologies products			100				100
Aval Technologies Co., Ltd.		Wiin Technology Co., Ltd. (“Wiin”)		Sale of information and communication technologies products			100				100
CHIEF Telecom Inc.		Unigate Telecom Inc. (“Unigate”)		Telecommunications and internet service			100				100
		Chief International Corp. (“CIC”)		Telecommunications and internet service			100				100
		Shanghai Chief Telecom Co., Ltd. (“SCT”)		Telecommunications and internet service			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			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
		CHPT Japan Co., Ltd. (“CHPT (JP)”)		Related services of electronic parts, machinery processed products and printed circuit board			100				100
		Chunghwa Precision Test Tech. International, Ltd. (“CHPT (International)”)		Wholesale and retail of electronic materials, and investment			100				100
		TestPro Investment Co., Ltd. (“TestPro”)		Investment			100				100
TestPro Investment Co., Ltd.		NavCore Tech. Co., Ltd (“NavCore”)		Sale and manufacturing of smart equipment, smart factory software and hardware integration and technical consulting service			54				54

(Continued)

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Percentage of Ownership Interests

December 31

Name of Investor

Name of Investee

Main Businesses and Products

2025

2024

Note

Prime Asia Investments Group Ltd.

Chunghwa Hsingta Co., Ltd. (“CHC”)

Investment

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

Su Zhou Precision Test Tech. Ltd. (“SZPT”)

Assembly processed of circuit board, design of printed circuit board and related consultation service

100

100

International Integrated Systems, Inc.

Unitronics Technology Corp. (“UTC”)

Development and maintenance of information system

100

100

Chunghwa Telecom Singapore Pte., Ltd.

Chunghwa Telecom Malaysia SDN. BHD. (“CHTM”)

International private leased circuit, IP VPN service, and ICT services

100

—

l)

(Concluded)

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

b) CHIEF issued new shares in December 2024 and March 2025 as its employees exercised options. Therefore, the Company’s ownership interest in CHIEF decreased to 58.57% and 58.56% as of December 31, 2024 and 2025, respectively.

c) Chunghwa controlled more than half of seats of the Board of Directors of CHST as of December 31, 2024; therefore, the Company treated CHST as a subsidiary. Chunghwa no longer had more than half of seats of the Board of Directors of CHST since January 2025. As a result, the Company lost control over CHST and recognized CHST as an investment in associate. Please refer to Note 14(c) for details.

d) CLPT issued new shares in July 2024 and December 2025 as its employees exercised options. Therefore, the Company’s ownership interest in CLPT decreased to 69.87% and 62.03% as of December 31, 2024 and 2025, respectively.

e) CHTSC conducted its initial public offering through public underwriting in September 2025, and Chunghwa did not participate in the capital increase of CHTSC in accordance with applicable regulations. CHTSC issued new shares in January 2024, March 2024, December 2024, February 2025, May 2025 and August 2025 as its employees exercised options. In addition, Chunghwa disposed of some shares of CHTSC in August 2024 before CHTSC traded its shares on the emerging stock market according to the local requirements. Therefore, the Company’s ownership interest in CHTSC decreased to 63.45% and 56.69% as of December 31, 2024 and 2025, respectively.

f) IISI was listed in November 2025. Chunghwa did not participate in the capital increase of its initial public offering through public underwriting and disposed of some shares of IISI in accordance with applicable regulations and the price stabilization mechanism. Chunghwa disposed of some shares of IISI in August 2024 before IISI traded its shares on the emerging stock market according to the local requirements. Therefore, the Company’s ownership interest in IISI decreased to 49.64% and 44.53% as of December 31, 2024 and 2025, respectively. Chunghwa continues to control more than half of seats of the Board of Directors of IISI. As a result, the Company treated IISI as a subsidiary.

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

h) Chunghwa invested and established CHTEU in July 2024. Chunghwa obtained 100% ownership interest of CHTEU.

i) Chunghwa invested and established CHAI in October 2025. Chunghwa obtained 100% ownership interest of CHAI.

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

k) CHI disposed of some shares of CHPT from November to December 2025. Therefore, the Company’s ownership interest in CHPT decreased to 33.74% as of December 31, 2025. 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) CHTS established CHTM in June 2025 and obtained 100% ownership interest in CHTM. The investment capital was remitted in October 2025.

The following diagram presented information regarding the relationship and percentages of ownership interests between Chunghwa and its subsidiaries as of December 31, 2025.

Foreign Currencies

In preparing the financial statements of each individual entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

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At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined and related exchange differences are recognized in profit or loss. Conversely, when the fair value changes were recognized in other comprehensive income, related exchange difference shall be recognized in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Company’s foreign operations (including those subsidiaries, associates and joint ventures in other countries or currencies used different with Chunghwa) are translated into New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and attributed to stockholders of the parent and noncontrolling interests as appropriate.

Cash Equivalents

Cash equivalents include those maturities within three months from the date of acquisition, highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value such as commercial paper, negotiable certificates of deposit, time deposits and stimulus vouchers. These cash equivalents are held for the purpose of meeting short-term cash commitments.

Inventories

Inventories are stated at the lower of cost or net realizable value item by item, except for those that may be appropriate to group items of similar or related inventories. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. The calculation of the cost of inventory is derived using the weighted-average method.

Buildings and Land Consigned to Construction Contractors

Inventories of LED are stated at the lower of cost or net realizable value item by item, except for those that may be appropriate to group as similar items or related inventories. Land acquired before construction is classified as land held for development and then reclassified as land held under development after LED begins its construction project.

Upon the completion of the construction project, LED recognizes revenues in the amount of proceeds from customers for land and buildings and related costs when ownership is transferred to the customers. The unsold portion of the completed construction project is transferred to land and building held for sale.

Investments in Associates and Joint Ventures

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor an interest in a joint venture. A joint venture is a joint arrangement whereby the Company and other parties that have joint control of the arrangement have rights to the net assets of the arrangement.

Investments accounted for using the equity method include investments in associates and interests in joint ventures. Under the equity method, an investment in an associate and a joint venture is initially recognized at cost and adjusted thereafter to recognize the Company’s share of profit or loss and other comprehensive income of the associate and joint venture as well as the distribution received. The Company also recognizes its share in changes in the associates and joint ventures.

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When the Company subscribes for new shares of an associate and a joint venture at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the associate and joint venture. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to additional paid-in capital. When the adjustment should be debited to additional paid-in capital but the additional paid-in capital recognized from investments accounted for using equity method is insufficient, the shortage is debited to retained earnings.

Any excess of the cost of acquisition over the Company’s share of the fair value of the identifiable net assets and liabilities of an associate and a joint venture at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and shall not be amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition is recognized immediately in profit or loss.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Company discontinues the use of the equity method from the date on which its investment ceases to be an associate and a joint venture. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate and joint venture attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate and joint venture. The Company accounts for all amounts previously recognized in other comprehensive income in relation to that associate and joint venture on the same basis as would be required had that associate and joint venture directly disposed of the related assets or liabilities.

When the Company transacts with its associate and joint venture, profits and losses resulting from the transactions with the associate and joint venture are recognized in the Company’s consolidated financial statements only to the extent of interests in the associate and joint venture that are not related to the Company.

Property, Plant and Equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Depreciation on property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. Freehold land is not depreciated. The estimated useful lives, residual values and depreciation method are reviewed at the end of each year, with the effect of any changes in estimate accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period in which the property is derecognized.

- 20 -

Investment Properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

For a transfer from the investment properties to property, plant and equipment, the deemed cost of the property, plant and equipment for subsequent accounting is its carrying amount at the commencement of owner-occupation.

For a transfer from the property, plant and equipment to investment properties, the deemed cost of the investment properties for subsequent accounting is its carrying amount at the end of owner-occupation.

On derecognition of the investment properties, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period in which the property is derecognized.

Goodwill

Goodwill arising from the acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment loss.

For the purpose of impairment testing, goodwill is allocated to each of the Company’s cash-generating units or groups of cash-generating units (referred to as “cash-generating unit”) that are expected to benefit from the synergies of the business combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributable goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

Intangible Assets Other Than Goodwill

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. The residual value of an intangible asset with a finite useful life shall be assumed to be zero unless the Company expects to dispose of the intangible asset before the end of its economic life. Intangible assets with indefinite useful lives are measured at cost less accumulated impairment loss.

Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, they are measured on the same basis as intangible assets that are acquired separately.

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Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss in the period in which the asset is derecognized.

Impairment of Property, Plant and Equipment, Right-of-use Assets, Investment Properties, Intangible Assets Other Than Goodwill and Incremental Costs of Obtaining Contracts

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use assets, investment properties and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

Impairment loss from the assets related to incremental cost of obtaining contracts is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Company expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services.

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

Financial Instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

a. Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

1) Measurement category

a) Financial assets at fair value through profit or loss (FVTPL)

Financial asset is classified as at FVTPL when the financial asset is mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at fair value through other comprehensive income (FVOCI).

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Financial assets at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss does not incorporate any dividend earned on the financial asset. Fair value is determined in the manner described in Note 37.

b) Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

ii. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost are measured at amortized cost, which equals to gross carrying amount determined by the effective interest method less any impairment loss, except for short-term receivables as the effect of discounting is immaterial. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such financial assets.

c) Investments in equity instruments at FVOCI

On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVOCI. Designation at FVOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments. Instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

2) Impairment of financial assets and contract assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable) and contract assets.

The Company recognizes lifetime Expected Credit Loss (ECL) for accounts receivable and contract assets. For all other financial instruments, the Company recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.

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Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

The Company recognizes an impairment loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

3) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.

On derecognition of investments in equity instruments at FVOCI in its entirety, the cumulative gain or loss is directly transferred to retained earnings, and it is not reclassified to profit or loss.

b. Financial liabilities

1) Subsequent measurement

Except for financial liabilities at FVTPL, all the financial liabilities are subsequently measured at amortized cost using the effective interest method.

2) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

c. Derivative financial instruments

The Company enters into derivative financial instruments to manage its exposure to foreign exchange rate risks, including forward exchange contracts.

Derivatives are initially measured at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. When the fair value of derivative financial instruments is positive, the derivative is recognized as a financial asset; when the fair value of derivative financial instruments is negative, the derivative is recognized as a financial liability.

Hedge Accounting

The Company designates some derivatives instruments as cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.

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The associated gains or losses that were recognized in other comprehensive income are reclassified from equity to profit or loss as a reclassification adjustment in the line item relating to the hedged item in the same period when the hedged item affects profit or loss. If a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the associated gains and losses that were recognized in other comprehensive income are removed from equity and are included in the initial cost of the non-financial asset or non-financial liability.

The Company discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated or exercised. The cumulative gain or loss on the hedging instrument that has been previously recognized in other comprehensive income from the period when the hedge was effective remains separately in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

Provisions

Provisions are measured at the best estimate of the expenditure required to settle the Company’s obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. The provisions for warranties claims are made by management according to the sales agreements which represent the management’s best estimate of the future outflow of economic benefits. The provisions of warranties claims are recognized as operating cost in the period in which the goods are sold. 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. In assessing whether a contract is onerous, the cost of fulfilling a contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that are related directly to fulfilling contracts. The provision for decommissioning liabilities is recognized in accordance with the contractual requirements. The Company bears dismantling, removing the asset and restoring the site obligations for certain handsets base stations in the future. A provision is recognized for the costs to be incurred for fulfilling these obligations.

Revenue Recognition

The Company identifies the performance obligations in the contract with the customers, allocates transaction price to each performance obligation and recognizes revenue when performance obligations are satisfied.

Sales of products are recognized as revenue when the Company delivers products and the customer accepts and controls the product. Except for the consumer electronic products such as mobile devices sold in channel stores which are usually in cash sale, the Company recognizes revenues for sale of other electronic devices and corresponding trade notes and accounts receivable.

Usage revenues from fixed-line services (including local, domestic long distance and international long distance telephone services), mobile services, internet and data services, and interconnection and call transfer fees from other telecommunications companies and carriers are billed in arrears and are recognized based upon seconds or minutes of traffic processed when the services are provided in accordance with contract terms. The usage revenues and corresponding trade notes and accounts receivable are recognized monthly.

Other revenues are recognized as follows: (a) one-time subscriber connection fees (on fixed-line services) are first recognized as contract liabilities and revenues are recognized subsequently over the average expected customer service periods, (b) monthly fees (on fixed-line services, mobile, internet and data services) and related receivables are accrued monthly, and (c) prepaid services (fixed-line, mobile, internet and data services) are recognized as contract liabilities upon collection considerations from customers and are recognized as revenues subsequently based upon actual usage by customers.

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Where the Company enters into transactions which involve both the provision of telecommunications service bundled with products such as handsets, total consideration received from products and telecommunications service in these arrangements are allocated based on their relative stand-alone selling price. The amount of sales revenue recognized for products is not limited to the amount paid by the customer for the products. When the amount of sales revenue recognized for products exceeded the amount paid by the customer for the products, the difference is recognized as contract assets. Contract assets are reclassified to accounts receivable when the amounts become collectible from customers subsequently. When the amount of sales revenue recognized for products was less than the amount paid by the customer for the products, the difference is recognized as contract liabilities and revenues are recognized subsequently when the telecommunications services are provided.

For project business contracts, if a substantial part of the Company’s promise to customers is to manage and coordinate the various tasks and assume the risks of those tasks to ensure the individual goods or services are incorporated into the combined output, they are treated as a single performance obligation since the Company provides a significant integration service. The Company recognizes revenues and corresponding accounts receivable when the project business contract is completed and accepted by customers. For some project contracts, the Company does not create an asset with an alternative use to the Company and has an enforceable right to payment for performance completed to date; therefore, performance obligations are satisfied and revenues are recognized over time.

For service contracts such as maintenance and warranties, customers simultaneously receive and consume the benefits provided by the Company; thus, revenues and corresponding accounts receivable of service contracts are recognized over the related service period.

When another party is involved in providing goods or services to a customer, the Company is acting as a principal if it controls the specified good or service before that good or service is transferred to a customer; otherwise, the Company is acting as an agent. When the Company is acting as a principal, gross inflow of economic benefits arising from transactions is recognized as revenue. When the Company is acting as an agent, revenue is recognized as its share of transaction.

Incremental Costs of Obtaining Contracts

Commissions and equipment subsidy related to telecommunications service as a result of obtaining contracts are recognized as an asset under the incremental costs of obtaining contracts to the extent the costs are expected to be recovered and are amortized over the contract period. However, the Company elects not to capitalize the incremental costs of obtaining contracts if the amortization period of the assets that the Company otherwise would have recognized is expected to be one year or less.

Commissions for real estate sales as a result of obtaining contracts are recognized as an asset under the incremental costs of obtaining contracts to the extent the costs are expected to be recovered and are amortized when the real estate is sold and its ownership is transferred to the customers.

Leasing

At inception of a contract, the Company assesses whether the contract is, or contains, a lease.

a. The Company as lessor

Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease.

b. The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for lease payments for low-value assets are recognized as expenses on a straight-line basis over the lease terms accounted for applying recognition exemption.

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Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities and for lease payments made at or before the commencement date. Right-of-use assets are subsequently measured at cost less accumulated depreciation and accumulated impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented separately on the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line basis from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities were initially measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If such rate cannot be readily determined, the lessee’s incremental borrowing rate is used.

Lease liabilities are subsequently measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. The Company accounts for the remeasurement of the lease liability as a result of the decrease of lease scope by decreasing the carrying amount of the right-of-use assets and recognizes in profit or loss any gain or loss on the partial or full termination of the lease. Lease liabilities are presented separately on the consolidated balance sheets.

Variable lease payments not depending on an index or a rate are recognized as expenses in the periods in which they are incurred.

Borrowing Costs

All borrowing costs are recognized in profit or loss in the period in which they are incurred.

Government Grants

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to government grants and that the grants will be received.

Government grants related to income are recognized in profit or loss on a systematic basis over the periods in which the Company recognizes expenses of the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the Company should construct noncurrent assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that become receivable as compensation for expenses or losses already incurred are recognized in profit or loss in the period in which they become receivable.

Employee Benefits

a. Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

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b. Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost and gains or losses on settlements) and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising (a) actuarial gains and losses; and (b) the return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Company’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

c. Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plan except that remeasurement is recognized in profit or loss.

Share-based Payment Arrangements - Employee Stock Options

The fair value determined at the grant date of the employee share options is expensed on a straight-line basis over the vesting period, based on the Company’s estimate of employee stock options that are expected to ultimately vest, with a corresponding increase in additional paid-in capital - employee stock options. If the equity instruments granted vest immediately at the grant date, expenses are recognized in full in profit or loss.

At the end of each reporting period, the Company revises its estimate of the number of employee share options expected to vest. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to additional paid-in capital - employee stock options.

Income Tax

Income tax expense represents the sum of the tax currently payable and deferred tax.

a. Current tax

Income tax payable or recoverable is based on taxable profit or loss for the period determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Act in the ROC, an additional tax of unappropriated earnings is provided for in the year the stockholders approve to retain the earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

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b. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. A deferred tax liability is not recognized on taxable temporary difference arising from initial recognition of goodwill.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, unused loss carry forward and unused tax credits from purchases of machinery, equipment and technology, and research and development expenditures, etc. to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, associates, and joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

The Company has applied the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes. Therefore, the Company neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.

c. Current and deferred tax

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income, in which case, the current and deferred tax are also recognized in other comprehensive income.

Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

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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.

a. Material accounting judgments

1) Principal versus agent

The Company’s project agreements are mainly to provide one or more customized equipment or services to customers. In order to fulfill the agreements, another party may be involved in some agreements. The Company considers the following factors to determine whether the Company is a principal of the transaction: whether the Company is the primary obligation provider of the agreements, its exposures to inventory risks and the discretion in establishing prices, etc. The determination of whether the Company is a principal or an agent will affect the amount of revenue recognized by the Company. Only when the Company is acting as a principal, gross inflows of economic benefits arising from transactions is recognized as revenue.

2) Control over subsidiaries

As discussed in Note 3, “Summary of Material Accounting Policy Information - Basis of Consolidation”, some entities are subsidiaries of the Company although the Company only owns less than 50% ownership interests in these entities. After considering the Company’s absolute size of holding in the entity and the relative size of and the dispersion of shares owned by the other stockholders, and the contractual arrangements between the Company and other investors, potential voting interests and the written agreement between stockholders, the management concluded that the Company has a sufficiently dominant voting interest to direct the relevant activities of the entity and therefore the Company has control over these entities.

b. Key sources of estimation uncertainty and assumption

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period. Actual results may differ from these estimates.

1) Impairment of trade notes and accounts receivable

The provision for impairment of trade notes and accounts receivable is based on assumptions on probability of default and expected credit loss rates. The Company uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’s past experience, current market conditions as well as forward looking information at the end of each reporting period. For details of the key assumptions and inputs used, see Note 10. Where the actual future cash flows are less than expected, a material impairment loss may arise.

2) Fair value measurements and valuation processes

For the assets and liabilities measured at fair value without quoted prices in active markets, the Company’s management determines the appropriate valuation techniques for the fair value measurements and whether to engage third party qualified appraisers based on the related regulations and professional judgments.

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Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities was disclosed in Note 37. If the actual changes of inputs in the future differ from expectation, the fair value may vary accordingly. The Company updates inputs periodically to monitor the appropriateness of the fair value measurement.

3) Provision for inventory valuation and obsolescence

Inventories are stated at the lower of cost or net realizable value. Net realizable value is calculated as the estimated selling price less the estimated costs necessary to make a sale. Comparison of net realizable value and cost is determined on an item by item basis, except for those similar items which could be categorized into the same groups. The Company uses the inventory holding period and turnover as the evaluation basis for inventory obsolescence losses.

4) Impairment of property, plant and equipment, right-of-use assets, investment properties and intangible assets

When an indication of impairment is assessed with objective evidence, the Company considers whether the recoverable amount of an asset is less than its carrying amount and recognizes the impairment loss based on difference between the recoverable amount and its carrying amount. The estimate of recoverable amount would impact on the timing and the amount of impairment loss recognition.

5) Useful lives of property, plant and equipment

As discussed in Note 3, “Summary of Material Accounting Policy Information - Property, Plant and Equipment”, the Company reviews estimated useful lives of property, plant and equipment at the end of each year.

6) Recognition and measurement of defined benefit plans

Net defined benefit liabilities (assets) and the resulting pension expense under defined benefit pension plans are calculated using the Projected Unit Credit Method. Actuarial assumptions comprise the discount rate, employee turnover rate, average future salary increase and etc. Changes in economic circumstances and market conditions will affect these assumptions and may have a material impact on the amount of the expense and the liability.

7) Lessees’ incremental borrowing rates

In determining a lessee’s incremental borrowing rate used in discounting lease payments, a risk-free rate for relevant duration and the same currency is selected as a reference rate. The lessee’s credit spread adjustments and lease specific adjustments are also taken into account.

5. APPLICATION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS

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

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

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b. The IFRSs endorsed by the FSC for application starting from 2026

New, Revised or Amended Standards and Interpretations				Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7		Amendments to the Classification and Measurement of Financial Instruments		January 1, 2026
Amendments to IFRS 9 and IFRS 7		Contracts Referencing Nature-Dependent Electricity		January 1, 2026
Amendments to IFRS Accounting Standards		Annual Improvements—Volume 11		January 1, 2026

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

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

New, Revised or Amended Standards and Interpretations				Effective Date Announced by IASB
Amendments to IFRS 10 and IAS 28		Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture		To be determined by IASB
IFRS 18		Presentation and Disclosure in Financial Statements		January 1, 2027 (Note)
IFRS 19		Subsidiaries without Public Accountability: Disclosures		January 1, 2027
Amendments to IAS 21		Translation to a Hyperinflationary Presentation Currency		January 1, 2027

Note:  The FSC announced in a press release in September 2025 that public companies will apply IFRS 18 starting from fiscal year 2028. In addition, entities may choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses the standard.

IFRS 18 “Presentation and Disclosure in Financial Statements” will replace IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and guidance to enhance the principles of aggregation and disaggregation applying to the primary financial statements and notes.

Except for the above, 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

		December 31
		2025				2024
Cash
Cash on hand		$	309,644			$	443,745
Bank deposits			19,103,766				13,242,716
			19,413,410				13,686,461

(Continued)

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		December 31
		2025				2024
Cash equivalents (with maturities of less than three months)
Commercial paper		$	8,505,138			$	16,887,390
Time deposits			8,024,798				2,883,479
Negotiable certificates of deposit			1,000,000				2,800,000
Stimulus vouchers			860				2,359
			17,530,796				22,573,228
		$	36,944,206			$	36,259,689

(Concluded)

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

		December 31
		2025		2024
Bank deposits		0.00%~1.98%		0.00%~2.55%
Commercial paper		0.96%~1.50%		0.95%~1.56%
Time deposits		0.01%~3.90%		0.01%~4.90%
Negotiable certificates of deposit		1.64%		1.55%~1.70%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

		December 31
		2025				2024
Financial assets-current
Mandatorily measured at FVTPL
Derivatives (not designated for hedge)
Forward exchange contracts		$	3,372			$	290
Financial assets-noncurrent
Mandatorily measured at FVTPL
Non-derivatives
Non-listed stocks - domestic		$	616,347			$	628,737
Non-listed stocks - foreign			25,652				32,415
Limited partnership - domestic			499,656				307,327
Other investing agreements			69,697				36,757
		$	1,211,352			$	1,005,236
Financial liabilities-current
Held for trading
Derivatives (not designated for hedge)
Forward exchange contracts		$	3			$	—

Chunghwa’s Board of Directors approved an investment in TRF 1 L.P. at the amount of $300,000 thousand in January 2025. As of December 31, 2025, Chunghwa invested $120,000 thousand.

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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 December 31, 2025, Chunghwa invested $400,000 thousand.

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

Contract Amount

Currency

Maturity Period

(In Thousands)

December 31, 2025

Forward exchange contracts - buy

NT$/EUR

March 2026

NT$88,878/EUR2,500

Forward exchange contracts - buy

NT$/USD

January 2026

NT$30,039/USD961

December 31, 2024

Forward exchange contracts - buy

NT$/EUR

March 2025

NT$10,177/EUR300

Forward exchange contracts - buy

NT$/USD

January 2025

NT$45,879/USD1,408

The Company entered into the above forward exchange contracts to manage its exposure to foreign currency risk due to fluctuations in exchange rates. However, the aforementioned derivatives did not meet the criteria for hedge accounting.

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

		December 31
		2025				2024
Current
Domestic investments
Listed and emerging stocks		$	18,555			$	—
Noncurrent
Domestic investments
Listed and emerging stocks		$	273,916			$	126,013
Non-listed stocks			4,923,861				3,873,647
Foreign investments
Listed and emerging stocks			23,431				—
Non-listed stocks			1,565,595				667,316
		$	6,786,803			$	4,666,976

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.

The Company participated in the capital increase of KKCompany Technologies Inc. at the amount of $875,465 thousand in November 2025.

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CHIEF disposed of all its investments in 3 Link Information Service Co., Ltd. in November 2025 for financial planning purposes. The fair value of the disposed investment was $374 thousand, and the cumulative disposal gain was $30 thousand.

The related unrealized gain on financial assets at FVOCI was transferred from other equity to unappropriated earnings at the amount of $16 thousand upon the aforementioned disposal in 2025.

The Company recognized dividend income of $280,667 thousand and $239,908 thousand for the years ended December 31, 2025 and 2024, respectively, with $273,585 thousand and $239,169 thousand from the outstanding investments on December 31, 2025 and 2024, respectively.

9. FINANCIAL ASSETS AT AMORTIZED COST - NONCURRENT

		December 31
		2025				2024
Corporate bonds		$	2,020,300			$	2,000,000

Chunghwa acquired the 10-year unsecured cumulative subordinated corporate bond of Fubon Life Insurance Co., Ltd. at the amount of $2,000,000 thousand in October 2024.

CHTSC acquired the 10-year secured cumulative subordinated corporate bond of Mercuries Life Insurance Co., Ltd. at the amount of $20,300 thousand in December 2025.

10. TRADE NOTES AND ACCOUNTS RECEIVABLE, NET

		December 31
		2025				2024
Trade notes and accounts receivable		$	28,583,184			$	27,168,306
Less: Loss allowance			(1,186,761	)			(1,142,610	)
		$	27,396,423			$	26,025,696

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.

- 35 -

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

When there is evidence indicating that the counterparty is in evasion, bankruptcy, deregistration or the accounts receivable are over two years past due and the recoverable amount cannot be reasonable estimated, the Company writes off the trade notes and accounts receivable. For accounts receivable that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

Except for receivables arising from telecommunications business and project business, the Company’s remaining accounts receivable are insignificant. Therefore, only Chunghwa’s provision matrix arising from telecommunications business and project business is disclosed below:

December 31, 2025

		Not Past Due				Past Due Less than 30 Days				Past Due 31 to 60 Days				Past Due 61 to 90 Days				Past Due 91 to 120 Days				Past Due 121 to 180 Days				Past Due over 180 Days				Total
Telecommunications business
Expected credit loss rate (Note a)			0%~1%				2%~21%				2%~67%				13%~84%				27%~91%				55%~96%				100%
Gross carrying amount		$	16,807,075			$	418,784			$	173,148			$	41,197			$	37,662			$	29,047			$	615,221			$	18,122,134
Loss allowance (lifetime ECL)			(52,137	)			(27,067	)			(31,146	)			(34,576	)			(30,721	)			(26,420	)			(615,221	)			(817,288	)
Amortized cost		$	16,754,938			$	391,717			$	142,002			$	6,621			$	6,941			$	2,627			$	—			$	17,304,846
Project business
Expected credit loss rate (Note b)			0%~5%				5%				10%				30%				50%				80%				100%
Gross carrying amount		$	5,635,620			$	51,025			$	5,712			$	26,064			$	43,229			$	65			$	286,482			$	6,048,197
Loss allowance (lifetime ECL)			(2,477	)			(2,551	)			(571	)			(7,819	)			(28,740	)			(52	)			(286,482	)			(328,692	)
Amortized cost		$	5,633,143			$	48,474			$	5,141			$	18,245			$	14,489			$	13			$	—			$	5,719,505

December 31, 2024

		Not Past Due				Past Due Less than 30 Days				Past Due 31 to 60 Days				Past Due 61 to 90 Days				Past Due 91 to 120 Days				Past Due 121 to 180 Days				Past Due over 180 Days				Total
Telecommunications business
Expected credit loss rate (Note a)			0%~1%				1%~22%				2%~68%				11%~84%				21%~92%				39%~96%				100%
Gross carrying amount		$	16,477,102			$	335,307			$	138,573			$	74,834			$	49,884			$	48,247			$	605,994			$	17,729,941
Loss allowance (lifetime ECL)			(51,501	)			(23,505	)			(34,429	)			(31,370	)			(33,080	)			(34,412	)			(605,994	)			(814,291	)
Amortized cost		$	16,425,601			$	311,802			$	104,144			$	43,464			$	16,804			$	13,835			$	—			$	16,915,650
Project business
Expected credit loss rate (Note b)			0%~5%				5%				10%				30%				50%				80%				100%
Gross carrying amount		$	5,547,739			$	44,167			$	82,518			$	3,204			$	1,242			$	44			$	279,974			$	5,958,888
Loss allowance (lifetime ECL)			(3,355	)			(2,215	)			(8,252	)			(993	)			(621	)			(35	)			(279,974	)			(295,445	)
Amortized cost		$	5,544,384			$	41,952			$	74,266			$	2,211			$	621			$	9			$	—			$	5,663,443

Note a: Please refer to Note 44 for the information of disaggregation of telecommunications service revenue. The expected credit loss rate applicable to different business revenue varies so as to reflect the risk level indicating by factors like historical experience.

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

- 36 -

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

		Year Ended December 31
		2025				2024
Beginning balance		$	1,142,610			$	1,101,640
Add: Provision for credit loss			196,243				179,401
Less: Amounts written off			(152,092	)			(138,431	)
Ending balance		$	1,186,761			$	1,142,610

11. INVENTORIES

		December 31
		2025				2024
Merchandise		$	4,025,028			$	4,874,164
Project in process			6,293,607				4,564,444
Work in process			252,069				268,570
Raw materials			279,059				221,856
			10,849,763				9,929,034
Land held under development			1,998,733				1,998,733
Construction in progress			330,099				159,351
		$	13,178,595			$	12,087,118

The operating costs related to inventories were $56,261,098 thousand (including the inventory valuation and obsolescence losses of $34,070 thousand) and $52,856,250 thousand (including the inventory valuation and obsolescence losses of $60,381 thousand) for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025 and 2024, inventories of $2,328,832 thousand and $2,158,084 thousand, respectively, were expected to be realized from the sale after more than twelve months. The aforementioned amount of inventories is related to property development owned by LED.

Land held under development and construction in progress was mainly developed by LED for Qingshan Sec., Dayuan Dist., Taoyuan City project. The Board of Directors of LED resolved to sign a joint construction and separate sale contract with Farglory Land Development Co., Ltd. in June 2021. LED entrusts Land Bank of Taiwan to execute fund control and property right management for the land held under development.

Construction in progress also included the Datong S. Sec., Sanchong Dist., New Taipei City project. The Board of Directors of Chunghwa resolved to sign a joint construction with separate sale and partition contract with LED in August 2021. Chunghwa classified the land of the project as investment properties.

Regarding the aforementioned two projects, the Company has signed the house and land presale contracts with customers and has received payments in accordance with the contracts. Please refer to Notes 30 and 40 for details.

- 37 -

12. PREPAYMENTS

		December 31
		2025				2024
Prepayments for leases - satellite (Note 40)		$	4,841,078			$	3,129,192
Prepaid rents			1,480,703				1,761,848
Others			3,399,165				2,708,290
		$	9,720,946			$	7,599,330
Current
Prepaid rents		$	484,166			$	496,790
Others			3,305,567				2,641,523
		$	3,789,733			$	3,138,313
Noncurrent
Prepayments for leases - satellite (Note 40)		$	4,841,078			$	3,129,192
Prepaid rents			996,537				1,265,058
Others			93,598				66,767
		$	5,931,213			$	4,461,017

Prepaid rents comprised the prepayments from the lease agreements applying the recognition exemption and the prepayments for leases that do not meet the definition of leases under IFRS 16.

13. OTHER CURRENT MONETARY ASSETS

		December 31
		2025				2024
Time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		$	20,538,447			$	21,679,910
Receivables from the Fund for Privatization of Government - owned Enterprises under the Executive Yuan (Note 28)			1,088,979				12,215
Accrued custodial receipts			751,744				725,414
Others			1,088,353				990,462
		$	23,467,523			$	23,408,001

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:

		December 31
		2025		2024
Time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		0.03%~4.16%		0.03%~5.10%

- 38 -

14. SUBSIDIARIES

a. Information on subsidiaries with material noncontrolling interests

				Proportion of Ownership Interests and Voting Rights Held by Noncontrolling Interests
		Principal Place		December 31
Subsidiaries		of Business		2025		2024
SENAO		Taiwan		72%		72%
CHPT		Taiwan		66%		66%

		Profit Allocated to Noncontrolling Interests								Accumulated Noncontrolling Interests
		Year Ended December 31								December 31
		2025				2024				2025				2024
SENAO		$	318,874			$	343,211			$	4,684,240			$	4,683,629
CHPT		$	645,501			$	310,300				5,820,850				5,305,195
Individually immaterial subsidiaries with noncontrolling interests											4,027,275				3,165,342
										$	14,532,365			$	13,154,166

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.

		December 31
		2025				2024
Current assets		$	7,103,734			$	6,737,556
Noncurrent assets			3,589,800				3,675,523
Current liabilities			(3,889,511	)			(3,549,249	)
Noncurrent liabilities			(355,212	)			(415,771	)
Equity		$	6,448,811			$	6,448,059
Equity attributable to the parent		$	1,764,571			$	1,764,430
Equity attributable to noncontrolling interests			4,684,240				4,683,629
		$	6,448,811			$	6,448,059

- 39 -

		Year Ended December 31
		2025				2024
Revenues and income		$	33,336,315			$	32,496,922
Costs and expenses			32,891,960				32,019,561
Profit for the year		$	444,355			$	477,361
Profit attributable to the parent		$	125,481			$	134,150
Profit attributable to noncontrolling interests			318,874				343,211
Profit for the year		$	444,355			$	477,361
Other comprehensive income (loss) attributable to the parent		$	(4,928	)		$	11,685
Other comprehensive income (loss) attributable to noncontrolling interests			(12,558	)			29,781
		$	(17,486	)		$	41,466
Total comprehensive income attributable to the parent		$	120,553			$	145,835
Total comprehensive income attributable to noncontrolling interests			306,316				372,992
		$	426,869			$	518,827
Net cash flow from operating activities		$	391,169			$	903,512
Net cash flow from investing activities			(14,223	)			(355,872	)
Net cash flow from financing activities			(388,533	)			(818,544	)
Effect of exchange rate changes on cash and cash equivalents			(3	)			23
Net cash outflow		$	(11,590	)		$	(270,881	)
Dividends paid to noncontrolling interests		$	306,040			$	370,957

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.

		December 31
		2025				2024
Current assets		$	5,929,648			$	4,936,011
Noncurrent assets			4,020,936				4,222,292
Current liabilities			(1,157,583	)			(1,079,055	)
Noncurrent liabilities			(12,573	)			(21,470	)
Equity		$	8,780,428			$	8,057,778
Equity attributable to CHI		$	2,959,578			$	2,752,583
Equity attributable to noncontrolling interests			5,820,850				5,305,195
		$	8,780,428			$	8,057,778

- 40 -

		Year Ended December 31
		2025				2024
Revenues and income		$	4,857,381			$	3,670,361
Costs and expenses			3,870,990				3,185,490
Profit for the year		$	986,391			$	484,871
Profit attributable to CHI		$	340,890			$	174,571
Profit attributable to noncontrolling interests			645,501				310,300
Profit for the year		$	986,391			$	484,871
Other comprehensive income (loss) attributable to CHI		$	(2,740	)		$	5,404
Other comprehensive income (loss) attributable to noncontrolling interests			(5,259	)			10,374
		$	(7,999	)		$	15,778
Total comprehensive income attributable to CHI		$	338,150			$	179,975
Total comprehensive income attributable to noncontrolling interests			640,242				320,674
		$	978,392			$	500,649
Net cash flow from operating activities		$	1,574,235			$	615,821
Net cash flow from investing activities			(372,020	)			(188,146	)
Net cash flow from financing activities			(285,106	)			(42,664	)
Effect of exchange rate changes on cash and cash equivalents			(6,259	)			14,779
Net cash inflow		$	910,850			$	399,790
Dividends paid to noncontrolling interests		$	168,161			$	10,780

b. Equity transactions with noncontrolling interests

CHIEF issued new shares in December 2024 and March 2025 as its employees exercised options. Therefore, the Company’s ownership interest in CHIEF decreased. See Note 34(a) for details.

CHTSC conducted its initial public offering through public underwriting in September 2025, and Chunghwa did not participate in the capital increase of CHTSC in accordance with applicable regulations. CHTSC issued new shares in January 2024, March 2024, December 2024, February 2025, May 2025 and August 2025 as its employees exercised options. Therefore, the Company’s ownership interest in CHTSC decreased. See Note 34(b)(c) for details. In addition, Chunghwa disposed of some shares of CHTSC in August 2024 before CHTSC traded its shares on the emerging stock market according to the local requirements. Therefore, the Company’s ownership interest in CHTSC decreased.

IISI was listed in November 2025. Chunghwa did not participate in the capital increase of its initial public offering through public underwriting and disposed of some shares of IISI in accordance with applicable regulations and the price stabilization mechanism. Therefore, the Company’s ownership interest in IISI decreased. See Note 34(e) for details. Chunghwa disposed of some shares of IISI in August 2024 before IISI traded its shares on the emerging stock market according to the local requirements. Therefore, the Company’s ownership interest in IISI decreased.

- 41 -

CLPT issued new shares in July 2024 and December 2025 as its employees exercised options. Therefore, the Company’s ownership interest in CLPT decreased. See Note 34(d) for details.

CHI disposed of some shares of CHPT from November to December 2025. Therefore, the Company’s ownership interest in CHPT decreased.

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 years ended December 31, 2025 and 2024 were as follows:

		Year Ended December 31, 2025
		Not Participating in the Capital Increase of CHTSC				Not Participating in the Capital Increase of IISI				CHTSC Share-Based Payment				CHIEF Share-Based Payment				CLPT Share-Based Payment				Disposal of CHPT Shares				Disposal of IISI Shares
Cash consideration received from noncontrolling interests		$	1,031,797			$	357,423			$	12,482			$	1,165			$	17,367			$	297,587			$	13,071
The proportionate share of the carrying amount of the net assets of the subsidiary transferred from (to) noncontrolling interests			(500,016	)			(259,232	)			(15,836	)			8,176				(21,268	)			(71,919	)			(3,187	)
Differences arising from equity transactions		$	531,781			$	98,191			$	(3,354	)		$	9,341			$	(3,901	)		$	225,668			$	9,884
Line items for equity transaction adjustments
Additional paid-in capital - arising from the difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition		$	—			$	—			$	—			$	—			$	—			$	225,668			$	8,060
Additional paid-in capital - arising from changes in equities of subsidiaries		$	531,781			$	98,191			$	(3,354	)		$	9,341			$	(3,901	)		$	—			$	1,824

		Year Ended December 31, 2024
		CHIEF Share-Based Payment				CHTSC Share-Based Payment				CLPT Share-Based Payment				Disposal of CHTSC Shares				Disposal of IISI Shares
Cash consideration received from noncontrolling interests (Note)		$	14,152			$	13,627			$	9,342			$	206,618			$	52,155
The proportionate share of the carrying amount of the net assets of the subsidiary transferred to noncontrolling interests			(9,996	)			(14,589	)			(12,863	)			(19,150	)			(15,330	)
Differences arising from equity transactions		$	4,156			$	(962	)		$	(3,521	)		$	187,468			$	36,825

(Continued)

- 42 -

		Year Ended December 31, 2024
		CHIEF Share-Based Payment				CHTSC Share-Based Payment				CLPT Share-Based Payment				Disposal of CHTSC Shares				Disposal of IISI Shares
Line items for equity transaction adjustments
Additional paid-in capital - arising from the difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition		$	—			$	—			$	—			$	187,076			$	36,811
Additional paid-in capital - arising from changes in equities of subsidiaries		$	4,156			$	(962	)		$	(3,521	)		$	392			$	14

(Concluded)

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

c. Loss of control of subsidiaries

Chunghwa no longer had more than half of seats of the Board of Directors of CHST since January 2025. As a result, the Company lost control over CHST and recognized CHST as an investment in associate.

The Company recognized the retained interest in CHST at the fair value on the date control was lost; therefore, the Company recognized the disposal gain of $15,290 thousand based on the difference between the fair value and the carrying amount. The disposal gain was included in other gains and losses in the consolidated statements of comprehensive income.

Analysis of assets and liabilities over which the Company lost control:

		CHST
Current assets
Cash and cash equivalents		$	8,664
Contract assets			9,132
Trade notes and accounts receivable, net			9,148
Inventories			6,521
Others			6,631
Noncurrent assets
Property, plant and equipment			202
Right-of-use assets			3,369
Deferred income tax assets			1,645
Others			12,415

(Continued)

- 43 -

		CHST
Current liabilities
Short-term loans		$	(65,000	)
Contract liabilities			(7,376	)
Trade notes and accounts payable			(9,036	)
Others			(2,309	)
Noncurrent liabilities
Customers’ deposits			(7,126	)
Others			(1,704	)
Net liabilities		$	(34,824	)

(Concluded)

15. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

		December 31
		2025				2024
Investments in associates		$	8,447,049			$	9,064,213
Investment in joint venture			9,083				9,251
		$	8,456,132			$	9,073,464

a. Investments in associates

Investments in associates were as follows:

		Carrying Amount
		December 31
		2025				2024
Material associate
Non-listed
Next Commercial Bank Co., Ltd. (“NCB”)		$	3,591,348			$	3,950,922
Associates that are not individually material
Listed
Senao Networks, Inc. (“SNI”)			2,023,706				1,998,346
KingwayTek Technology Co., Ltd. (“KWT”)			265,349				278,967
Non-listed
Viettel-CHT Co., Ltd. (“Viettel-CHT”)			581,860				573,275
Taiwan International Standard Electronics Co., Ltd. (“TISE”)			378,089				379,357
ST-2 Satellite Ventures Pte., Ltd. (“STS”)			344,530				313,467
WiAdvance Technology Corporation (“WATC”)			260,570				273,440
Chunghwa PChome Fund I Co., Ltd. (“CPFI”)			252,258				252,625

(Continued)

- 44 -

		Carrying Amount
		December 31
		2025				2024
Taiwania Hive Technology Fund L.P. (“TWTF”)		$	234,057			$	276,180
Taiwan International Ports Logistics Corporation (“TIPL”)			135,189				133,836
So-net Entertainment Taiwan Limited (“So-net”)			126,836				192,968
Porrima Inc. (“PORRIMA”)			73,731				77,634
CHT Infinity Singapore Pte., Ltd. (“CISG”)			53,947				60,782
Imedtac Co., Ltd. (“IME”)			53,608				56,667
Click Force Co., Ltd. (“CF”)			41,579				51,011
Baohwa Trust Co., Ltd. (“BHT”)			18,269				11,967
Gather Works Co., Ltd. (“GW”)			12,123				—
KKBOX Taiwan Co., Ltd. (“KKBOXTW”)			—				151,241
AgriTalk Technology Inc. (“ATT”)			—				26,254
Cornerstone Ventures Co., Ltd. (“CVC”)			—				5,274
Chunghwa Sochamp Technology Inc. (“CHST”) (Note 14)			—				—
			4,855,701				5,113,291
		$	8,447,049			$	9,064,213

(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
		December 31
		2025				2024
Material associate
Non-listed
Next Commercial Bank Co., Ltd. (“NCB”)			46				46
Associates that are not individually material
Listed
Senao Networks, Inc. (“SNI”)			33				33
KingwayTek Technology Co., Ltd. (“KWT”)			23				23
Non-listed
Viettel-CHT Co., Ltd. (“Viettel-CHT”)			30				30
Taiwan International Standard Electronics Co., Ltd. (“TISE”)			40				40
ST-2 Satellite Ventures Pte., Ltd. (“STS”)			38				38
WiAdvance Technology Corporation (“WATC”)			16				16
Chunghwa PChome Fund I Co., Ltd. (“CPFI”)			50				50
Taiwania Hive Technology Fund L.P. (“TWTF”)			40				42
Taiwan International Ports Logistics Corporation (“TIPL”)			27				27
So-net Entertainment Taiwan Limited (“So-net”)			30				30

(Continued)

- 45 -

		% of Ownership Interests and Voting Rights
		December 31
		2025				2024
Porrima Inc. (“PORRIMA”)			9				10
CHT Infinity Singapore Pte., Ltd. (“CISG”)			40				40
Imedtac Co., Ltd. (“IME”)			10				10
Click Force Co., Ltd. (“CF”)			49				49
Baohwa Trust Co., Ltd. (“BHT”)			25				25
Gather Works Co., Ltd. (“GW”)			48				—
KKBOX Taiwan Co., Ltd. (“KKBOXTW”)			—				30
AgriTalk Technology Inc. (“ATT”)			—				29
Cornerstone Ventures Co., Ltd. (“CVC”)			—				49
Chunghwa Sochamp Technology Inc. (“CHST”) (Note 14)			37				—

(Concluded)

Summarized financial information of NCB was set out below:

		December 31
		2025				2024
Assets		$	65,359,868			$	48,636,633
Liabilities			(57,556,996	)			(40,043,113	)
Equity		$	7,802,872			$	8,593,520
The percentage of ownership interest held by the Company			46.26%				46.26%
Equity attributable to the Company		$	3,609,609			$	3,975,362
Unrealized gain or loss from downstream transactions			(18,261	)			(24,440	)
The carrying amount of investment		$	3,591,348			$	3,950,922

		Year Ended December 31
		2025				2024
Net revenues		$	329,686			$	313,834
Net loss for the year		$	(856,008	)		$	(747,135	)
Other comprehensive income (loss)			65,360				(6,421	)
Total comprehensive loss for the year		$	(790,648	)		$	(753,556	)

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:

		Year Ended December 31
		2025				2024
The Company’s share of profits		$	453,910			$	493,844
The Company’s share of other comprehensive income (loss)			(8,488	)			40,157
The Company’s share of total comprehensive income		$	445,422			$	534,001

- 46 -

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

		December 31
		2025				2024
SNI		$	2,555,510			$	3,838,161
KWT		$	794,988			$	896,747

The Company participated in the capital increase of PORRIMA at the amount of $80,000 thousand in May 2024 and obtained 10.00% ownership interest. The Company did not participate in the capital increase of PORRIMA in December 2025. Therefore, the Company’s ownership interest in PORRIMA decreased to 9.26% as of December 31, 2025. 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 disposed of all its shares of KKBOXTW in November 2025. The proceeds from disposal were $872,839 thousand, and the Company recognized gain on disposal of $753,416 thousand under “other gains and losses” on the consolidated statements of comprehensive income.

The Company disposed of all its shares of ATT in October 2025. The proceeds from disposal were $8,225 thousand, and the Company recognized loss on disposal of $14,485 thousand under “other gains and losses” on the consolidated statements of comprehensive income.

CVC was approved to end and dissolve its business in November 2024, and CVC completed its liquidation in August 2025. The Company received the liquidation distribution of $5,026 thousand and recognized loss on disposal of $2 thousand under “other gains and losses” on the consolidated statements of comprehensive income.

CHST was approved to end and dissolve its business in July 2025.

KWT transferred its treasury stock repurchased from December 2019 to February 2020 to employees in October 2024. In addition, KWT repurchased its stock from April 2025 to May 2025. Therefore, the Company’s ownership interest in KWT changed to 22.58% and 22.78% as of December 31, 2024 and 2025, respectively.

The Company invested $14,400 thousand and obtained 48.00% ownership interest in GW in April 2025. GW mainly engages in film and drama IP development, copyright management and copyright sales.

Chunghwa’s Board of Directors approved an investment in TWTF at the amount of USD 30,000 thousand in February 2024. The Company initially invested $288,405 thousand (USD 9,000 thousand) in TWTF in August 2024 and obtained 41.75% ownership interest. TWTF raised capital in multiple stages. New capital was received in April 2025, resulting in an increase in the fund size; therefore, the Company’s ownership interest in TWTF changed to 39.81% as of December 31, 2025. TWTF mainly engages in investment.

The Company increased its investment in SNI in lower proportion to the original shareholder percentage at the amount of $375,428 thousand in October 2024. Therefore, the Company’s ownership interest in SNI decreased to 33.16% as of December 31, 2024.

The Company did not participate in the capital increase of WATC in January 2024. WATC issued new shares in March 2024 and September 2024 as its employees exercised option. Therefore, the Company’s ownership interest in WATC decreased to 16.24% as of December 31, 2024. However, as the Company continues to control one out of five seats of the Board of Directors of WATC, the Company has significant influence over WATC.

- 47 -

The Company increased its investment in IME in higher proportion to the original shareholder percentage at the amount of $31,914 thousand in April 2024. Therefore, the Company’s ownership interest in IME increased to 10.00%. As the Company continues to control one out of five seats of the Board of Directors of IME, the Company has significant influence over IME.

Although Chunghwa is the single largest stockholder of NCB, it only obtained six out of fifteen seats of the Board of Directors of NCB. In addition, the management considered the size of ownership interest and the dispersion of shares owned by the other stockholders, other holdings are not extremely dispersed. Chunghwa is not able to direct its relevant activities. Therefore, Chunghwa does not have control over NCB and merely has significant influence over NCB and treats it as an associate.

The Company invested and obtained 50% ownership interest in CPFI. However, as the Company has only two out of five seats of the Board of Directors of CPFI, the Company has no control but significant influence over CPFI. Therefore, the Company recognized CPFI as an investment in associate.

The Company’s share of profits and other comprehensive income (loss) of associates was recognized based on the audited financial statements.

b. Investment in joint venture

Investment in joint venture was as follows:

		Carrying Amount								% of Ownership Interests and Voting Rights
		December 31								December 31
Name of Joint Venture		2025				2024				2025				2024
Non-listed
Chunghwa SEA Holdings (“CHT SEA”)		$	9,083			$	9,251				51				51

The Company invested and established a joint venture, CHT SEA, with Delta Electronics, Inc. and Kwang Hsing Industrial Co., Ltd. and obtained 51% ownership interest of CHT SEA. However, according to the mutual agreements among stockholders, the Company does not individually direct CHT SEA’s relevant activities and has joint control with the other party; therefore, the Company treated CHT SEA as a joint venture. CHT SEA was approved to end and dissolve its business in June 2025. The liquidation of CHT SEA is still in process.

The joint venture is not considered individually material to the Company. Summarized financial information of CHT SEA was set out below:

		Year Ended December 31
		2025				2024
The Company’s share of loss		$	(168	)		$	(212	)
The Company’s share of other comprehensive income			—				—
The Company’s share of total comprehensive loss		$	(168	)		$	(212	)

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

- 48 -

16. PROPERTY, PLANT AND EQUIPMENT

		December 31
		2025				2024
Assets used by the Company		$	282,492,876			$	284,714,764
Assets subject to operating leases			5,671,949				5,125,380
		$	288,164,825			$	289,840,144

a. Assets used by the Company

		Land				Land Improvements				Buildings				Computer Equipment				Telecommuni- cations Equipment				Transportation Equipment				Miscellaneous Equipment				Construction in Progress and Equipment to be Accepted				Total
Cost
Balance on January 1, 2024		$	102,885,454			$	1,709,236			$	71,754,783			$	11,044,831			$	721,434,979			$	4,049,661			$	12,091,029			$	15,937,187			$	940,907,160
Additions			—				—				176,183				25,317				321,135				3,440				138,487				27,910,447				28,575,009
Disposal			(382	)			(386	)			(18,668	)			(1,239,646	)			(27,009,592	)			(153,554	)			(505,733	)			—				(28,927,961	)
Effect of foreign exchange differences			—				—				—				53				166,659				253				9,771				15,574				192,310
Others			(539,041	)			40,764				2,265,779				617,852				23,439,864				283,740				946,569				(27,290,456	)			(234,929	)
Balance on December 31, 2024		$	102,346,031			$	1,749,614			$	74,178,077			$	10,448,407			$	718,353,045			$	4,183,540			$	12,680,123			$	16,572,752			$	940,511,589
Accumulated depreciation and impairment
Balance on January 1, 2024		$	—			$	(1,507,932	)		$	(33,283,812	)		$	(9,221,060	)		$	(599,131,991	)		$	(3,654,724	)		$	(9,022,741	)		$	—			$	(655,822,260	)
Depreciation expense			—				(36,130	)			(1,466,831	)			(747,334	)			(25,434,256	)			(127,543	)			(829,434	)			—				(28,641,528	)
Disposal			—				386				16,906				1,239,157				27,002,884				153,008				485,278				—				28,897,619
Effect of foreign exchange differences			—				—				—				(46	)			(103,871	)			(148	)			(5,493	)			—				(109,558	)
Others			—				303				12,370				2,112				(7,374	)			(496	)			(128,013	)			—				(121,098	)
Balance on December 31, 2024		$	—			$	(1,543,373	)		$	(34,721,367	)		$	(8,727,171	)		$	(597,674,608	)		$	(3,629,903	)		$	(9,500,403	)		$	—			$	(655,796,825	)
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 December 31, 2024, net		$	102,346,031			$	206,241			$	39,456,710			$	1,721,236			$	120,678,437			$	553,637			$	3,179,720			$	16,572,752			$	284,714,764
Cost
Balance on January 1, 2025		$	102,346,031			$	1,749,614			$	74,178,077			$	10,448,407			$	718,353,045			$	4,183,540			$	12,680,123			$	16,572,752			$	940,511,589
Additions			—				—				114,893				89,236				193,888				1,710				146,930				27,219,536				27,766,193
Disposal			—				(1,186	)			(4,157	)			(1,038,149	)			(17,536,139	)			(425,946	)			(536,818	)			—				(19,542,395	)
Effect of deconsolidation of subsidiaries (Note 14)			—				—				—				—				—				(2,009	)			(3,213	)			—				(5,222	)
Effect of foreign exchange differences			—				—				—				(162	)			(102,353	)			(143	)			(5,155	)			(12,850	)			(120,663	)
Others			(374,186	)			46,100				340,920				796,017				23,653,724				184,567				3,122,685				(28,573,948	)			(804,121	)
Balance on December 31, 2025		$	101,971,845			$	1,794,528			$	74,629,733			$	10,295,349			$	724,562,165			$	3,941,719			$	15,404,552			$	15,205,490			$	947,805,381
Accumulated depreciation and impairment
Balance on January 1, 2025		$	—			$	(1,543,373	)		$	(34,721,367	)		$	(8,727,171	)		$	(597,674,608	)		$	(3,629,903	)		$	(9,500,403	)		$	—			$	(655,796,825	)
Depreciation expense			—				(50,482	)			(1,511,671	)			(678,801	)			(25,826,537	)			(181,276	)			(861,843	)			—				(29,110,610	)
Disposal			—				1,186				4,157				1,038,048				17,533,773				425,946				489,991				—				19,493,101
Effect of deconsolidation of subsidiaries (Note 14)			—				—				—				—				—				2,009				3,011				—				5,020
Impairment loss			—				—				—				—				(112,219	)			—				—				—				(112,219	)
Effect of foreign exchange differences			—				—				—				134				68,126				(8	)			2,614				—				70,866
Others			—				—				171,158				(335	)			2,292,086				(1,746	)			(2,323,001	)			—				138,162
Balance on December 31, 2025		$	—			$	(1,592,669	)		$	(36,057,723	)		$	(8,368,125	)		$	(603,719,379	)		$	(3,384,978	)		$	(12,189,631	)		$	—			$	(665,312,505	)
Balance on January 1, 2025, net		$	102,346,031			$	206,241			$	39,456,710			$	1,721,236			$	120,678,437			$	553,637			$	3,179,720			$	16,572,752			$	284,714,764
Balance on December 31, 2025, net		$	101,971,845			$	201,859			$	38,572,010			$	1,927,224			$	120,842,786			$	556,741			$	3,214,921			$	15,205,490			$	282,492,876

After the evaluation of certain telecommunications equipment, the Company determined that the recoverable amount of such assets was nil because the 3G network no longer provides telecommunications services; therefore, the Company recognized an impairment loss of $112,219 thousand for the year ended December 31, 2025. The aforementioned impairment loss was included in other income and expenses in the statements of comprehensive income.

There was no indication that property, plant and equipment was impaired; therefore, the Company did not recognize any impairment loss for the year ended December 31, 2024.

- 49 -

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

Land improvements			10~30 years
Buildings
Main buildings			20~60 years
Other building facilities			3~15 years
Computer equipment			2~8 years
Telecommunications equipment
Telecommunication circuits			2~30 years
Telecommunication machinery and antennas equipment			2~30 years
Transportation equipment			2~10 years
Miscellaneous equipment
Leasehold improvements			1~18 years
Mechanical and air conditioner equipment			2~16 years
Others			1~15 years

b. Assets subject to operating leases

		Land				Buildings				Total
Cost
Balance on January 1, 2024		$	4,924,387			$	4,131,031			$	9,055,418
Additions			—				446				446
Others			(1,819,513	)			(394,393	)			(2,213,906	)
Balance on December 31, 2024		$	3,104,874			$	3,737,084			$	6,841,958
Accumulated depreciation and impairment
Balance on January 1, 2024		$	—			$	(1,802,576	)		$	(1,802,576	)
Depreciation expense			—				(65,463	)			(65,463	)
Others			—				151,461				151,461
Balance on December 31, 2024		$	—			$	(1,716,578	)		$	(1,716,578	)
Balance on January 1, 2024, net		$	4,924,387			$	2,328,455			$	7,252,842
Balance on December 31, 2024, net		$	3,104,874			$	2,020,506			$	5,125,380
Cost
Balance on January 1, 2025		$	3,104,874			$	3,737,084			$	6,841,958
Additions			—				127				127
Others			351,003				397,667				748,670
Balance on December 31, 2025		$	3,455,877			$	4,134,878			$	7,590,755
Accumulated depreciation and impairment
Balance on January 1, 2025		$	—			$	(1,716,578	)		$	(1,716,578	)
Depreciation expense			—				(72,048	)			(72,048	)
Others			—				(130,180	)			(130,180	)
Balance on December 31, 2025		$	—			$	(1,918,806	)		$	(1,918,806	)
Balance on January 1, 2025, net		$	3,104,874			$	2,020,506			$	5,125,380
Balance on December 31, 2025, net		$	3,455,877			$	2,216,072			$	5,671,949

- 50 -

The Company leases out land and buildings with lease terms between 1 to 20 years. The lessees do not have bargain purchase options to acquire the assets at the expiry of the lease periods.

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

		December 31
		2025				2024
Year 1		$	285,779			$	305,357
Year 2			194,419				197,780
Year 3			134,983				121,845
Year 4			84,697				92,431
Year 5			58,286				62,415
Onwards			129,977				136,567
		$	888,141			$	916,395

The above items of property, plant and equipment subject to operating leases are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings
Main buildings			35~60 years
Other building facilities			3~15 years

17. LEASE ARRANGEMENTS

a. Right-of-use assets

		December 31
		2025				2024
Land and buildings
Handsets base stations		$	7,687,671			$	7,648,470
Others			1,492,427				1,564,104
Equipment			1,583,811				1,699,755
		$	10,763,909			$	10,912,329

		Year Ended December 31
		2025				2024
Additions to right-of-use assets		$	4,445,019			$	4,091,788
Depreciation charge for right-of-use assets
Land and buildings
Handsets base stations		$	3,039,184			$	3,008,471
Others		$	814,659			$	805,286
Equipment			467,875				354,342
		$	4,321,718			$	4,168,099

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The Company did not have significant sublease or impairment of right-of-use assets for the years ended December 31, 2025 and 2024.

b. Lease liabilities

		December 31
		2025				2024
Lease liabilities
Current		$	3,889,510			$	3,557,874
Noncurrent			7,000,631				7,333,503
		$	10,890,141			$	10,891,377

Ranges of discount rates for lease liabilities were as follows:

		December 31
		2025				2024
Land and buildings
Handsets base stations			0.37%~2.00%				0.37%~2.00%
Others			0.37%~9.00%				0.37%~9.00%
Equipment			0.37%~3.50%				0.37%~3.50%

c. Important lease-in activities and terms

The Company mainly enters into lease-in agreements of land and buildings for handsets base stations located throughout Taiwan with lease terms ranging from 1 to 20 years. The lease agreements do not contain bargain purchase options to acquire the assets at the expiration of the respective leases. For majority of the lease-in agreements on handsets base station, the Company has the right to terminate the agreement prior to the expiration date if the Company is unable to build the required telecommunication equipment, either due to legal restrictions, controversial events, or other events.

The Company also leases land and buildings for the use of offices, server rooms, and stores with lease terms from 1 to 30 years. Most of the lease agreements for national land adjust the lease payment according to the changes of the announced land values by the authority. At the expiry of the lease term, the Company does not have bargain purchase options to acquire the assets.

The lease agreements for equipment include a contract between Chunghwa and ST-2 Satellite Ventures Pte., Ltd. to lease capacity on the ST-2 satellite. For the information of lease agreements with related parties, please refer to Note 38 for details.

- 52 -

d. Other lease information

		Year Ended December 31
		2025				2024
Expenses relating to low-value asset leases		$	8,901			$	9,389
Expenses relating to variable lease payments not included in the measurement of lease liabilities		$	7,466			$	6,327
Total cash outflow for leases		$	4,304,688			$	4,088,641

The Company leases certain equipment which qualifies as low-value asset leases. The Company has elected to apply the recognition exemption and, thus, not to recognize right-of-use assets and lease liabilities for these leases.

Lease-out arrangements under operating leases for freehold property, plant, and equipment and investment properties were set out in Notes 16 and 18.

18. INVESTMENT PROPERTIES

Cost
Balance on January 1, 2024		$	11,161,834
Additions			4,333
Reclassification			2,426,527
Balance on December 31, 2024		$	13,592,694
Accumulated depreciation and impairment
Balance on January 1, 2024		$	(1,356,371	)
Depreciation expense			(44,772	)
Reversal of impairment loss			139,200
Reclassification			(29,032	)
Balance on December 31, 2024		$	(1,290,975	)
Balance on January 1, 2024, net		$	9,805,463
Balance on December 31, 2024, net		$	12,301,719
Cost
Balance on January 1, 2025		$	13,592,694
Additions			73,974
Reclassification			76,578
Balance on December 31, 2025		$	13,743,246
Accumulated depreciation and impairment
Balance on January 1, 2025		$	(1,290,975	)
Depreciation expense			(45,282	)
Reversal of impairment loss			28,354
Reclassification			(15,025	)
Balance on December 31, 2025		$	(1,322,928	)
Balance on January 1, 2025, net		$	12,301,719
Balance on December 31, 2025, net		$	12,420,318

- 53 -

After the evaluation of land and buildings by comparing the recoverable amount which represented the fair value less costs of disposal with the carrying amount, the Company recognized reversals of impairment losses of $28,354 thousand and $139,200 thousand for the years ended December 31, 2025 and 2024, respectively. The reversals of impairment losses were included in other income and expenses in the consolidated statements of comprehensive income.

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

Land improvements			15~30 years
Buildings
Main buildings			8~60 years
Other building facilities			10~35 years

The fair values of the Company’s investment properties as of December 31, 2025 and 2024 were determined by Level 3 fair value measurements inputs based on the appraisal reports conducted by independent appraisers. Those appraisal reports are based on the comparison approach, income approach or cost approach. Key assumptions and the fair values were as follows:

		December 31
		2025				2024
Fair value		$	43,263,149			$	41,284,758
Overall capital interest rate			1.30%~6.11%				1.47%~5.81%
Profit margin ratio			12%~20%				12%~20%
Discount rate			0%~10%				0%~10%
Capitalization rate			0.64%~1.59%				1.12%~2.13%

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:

		December 31
		2025				2024
Year 1		$	309,328			$	274,163
Year 2			271,912				247,997
Year 3			243,186				216,256
Year 4			236,844				192,062
Year 5			214,399				190,020
Onwards			1,232,947				1,306,456
		$	2,508,616			$	2,426,954

- 54 -

19. INTANGIBLE ASSETS

		Mobile Broadband Concession				Computer Software				Goodwill				Others				Total
Cost
Balance on January 1, 2024		$	109,963,431			$	2,532,249			$	291,206			$	421,835			$	113,208,721
Additions-acquired separately			—				228,757				—				5,387				234,144
Disposal			—				(357,867	)			—				(8,301	)			(366,168	)
Effect of foreign exchange differences			—				242				—				38				280
Others			—				23,682				—				—				23,682
Balance on December 31, 2024		$	109,963,431			$	2,427,063			$	291,206			$	418,959			$	113,100,659
Accumulated amortization and impairment
Balance on January 1, 2024		$	(38,202,416	)		$	(1,954,096	)		$	(73,624	)		$	(252,040	)		$	(40,482,176	)
Amortization expenses			(6,390,139	)			(278,225	)			—				(30,240	)			(6,698,604	)
Disposal			—				357,867				—				8,301				366,168
Effect of foreign exchange differences			—				(113	)			—				(24	)			(137	)
Others			—				(2,708	)			—				—				(2,708	)
Balance on December 31, 2024		$	(44,592,555	)		$	(1,877,275	)		$	(73,624	)		$	(274,003	)		$	(46,817,457	)
Balance on January 1, 2024, net		$	71,761,015			$	578,153			$	217,582			$	169,795			$	72,726,545
Balance on December 31, 2024, net		$	65,370,876			$	549,788			$	217,582			$	144,956			$	66,283,202
Cost
Balance on January 1, 2025		$	109,963,431			$	2,427,063			$	291,206			$	418,959			$	113,100,659
Additions-acquired separately			—				139,692				—				3,983				143,675
Disposal			—				(248,016	)			—				(1,932	)			(249,948	)
Effect of foreign exchange differences			—				(193	)			—				32				(161	)
Others			—				2,658				—				(904	)			1,754
Balance on December 31, 2025		$	109,963,431			$	2,321,204			$	291,206			$	420,138			$	112,995,979
Accumulated amortization and impairment
Balance on January 1, 2025		$	(44,592,555	)		$	(1,877,275	)		$	(73,624	)		$	(274,003	)		$	(46,817,457	)
Amortization expenses			(6,390,138	)			(251,248	)			—				(24,895	)			(6,666,281	)
Disposal			—				248,016				—				1,866				249,882
Effect of foreign exchange differences			—				80				—				(28	)			52
Balance on December 31, 2025		$	(50,982,693	)		$	(1,880,427	)		$	(73,624	)		$	(297,060	)		$	(53,233,804	)
Balance on January 1, 2025, net		$	65,370,876			$	549,788			$	217,582			$	144,956			$	66,283,202
Balance on December 31, 2025, net		$	58,980,738			$	440,777			$	217,582			$	123,078			$	59,762,175

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.

- 55 -

The computer software is amortized using the straight-line method over the estimated useful lives of 1 to 10 years. Other intangible assets, except for those assessed as having indefinite useful lives, are amortized using the straight-line method over the estimated useful lives of 3 to 20 years. Goodwill is not amortized.

The Company did not recognize any impairment loss on intangible assets for the years ended December 31, 2025 and 2024.

20. OTHER ASSETS

		December 31
		2025				2024
Spare parts		$	2,140,664			$	2,005,946
Refundable deposits			1,974,565				2,161,983
Other financial assets			1,000,000				1,000,000
Prepayments for investments (Note 40)			650,000				—
Others			3,170,244				2,831,855
		$	8,935,473			$	7,999,784
Current
Spare parts		$	2,140,664			$	2,005,946
Others			1,300,555				1,108,608
		$	3,441,219			$	3,114,554
Noncurrent
Refundable deposits		$	1,974,565			$	2,161,983
Other financial assets			1,000,000				1,000,000
Prepayments for investments (Note 40)			650,000				—
Others			1,869,689				1,723,247
		$	5,494,254			$	4,885,230

Other financial assets - noncurrent was Piping Fund. As part of the government’s effort to upgrade the existing telecommunications infrastructure, Chunghwa and other public utility companies were required by the ROC government to contribute to a Piping Fund administered by the Taipei City Government. This fund was used to finance various telecommunications infrastructure projects. Net assets of this fund will be returned proportionately after the project is completed.

21. HEDGING FINANCIAL INSTRUMENTS

Chunghwa’s hedge strategy is to enter into forward exchange contracts - buy to avoid its foreign currency exposure to certain foreign currency denominated equipment payments in the following six months. In addition, Chunghwa’s management considers the market condition to determine the hedge ratio and enters into forward exchange contracts with the banks to avoid the foreign currency risk.

Chunghwa signed equipment purchase contracts with suppliers and entered into forward exchange contracts to avoid foreign currency risk exposure to Euro-denominated purchase commitments. Those forward exchange contracts were designated as cash flow hedges. When forecast purchases actually take place, basis adjustments are made to the initial carrying amounts of hedged items.

- 56 -

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.

December 31, 2025

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$88,878 /EUR 2,500

March 2026

$

35.55

Hedging financial assets (liabilities)

$

3,204

$

—

$

2,071

Forecast purchases - forward exchange contracts

NT$

/EUR

NT$55,383 /EUR 1,500

January 2026

36.92

Hedging financial assets (liabilities)

—

56

1,851

		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		$	(3,922	)		$	3,148			$	—

December 31, 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

NT$341,036 /EUR10,000

March 2025

$

34.10

Hedging financial assets (liabilities)

$

1,133

$

1,907

$

(730)

		Change in Value of Hedged Item Used for				Accumulated Gain or Loss on Hedging Instruments in Other Equity
Hedged Items		Calculating Hedge Ineffectiveness				Continuing Hedges				Hedge Accounting No Longer Applied
Cash flow hedge
Forecast equipment purchases		$	730			$	(774	)		$	—

- 57 -

Year ended December 31, 2025

Comprehensive Income

Reclassification from Equity to Assets and the Adjusted Line Item

Hedge Transaction

Hedging Gain or Loss Recognized in OCI

Amount of Hedge Ineffectiveness Recognized in Profit or Loss

Line Item in 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

$

3,922

$

—

—

$  1,570 Construction in progress and equipment to be accepted

$  —  Other gains and losses

Year ended December 31, 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

$

(730)

$

—

—

$ (2,029) Construction in progress and equipment to be accepted

$   —  Other gains and losses

22. SHORT-TERM LOANS

		December 31
		2025				2024
Unsecured bank loans		$	340,000			$	215,000

The annual interest rates of bank loans were as follows:

		December 31
		2025				2024
Unsecured bank loans			2.05%~2.08%				1.82%~3.49%

- 58 -

23. LONG-TERM LOANS

		December 31
		2025				2024
Secured bank loans (Note 39)		$	1,600,000			$	1,600,000
Unsecured bank loans			—				35,000
Less: Current portion			—				(3,646	)
		$	1,600,000			$	1,631,354

The annual interest rates of bank loans were as follows:

		December 31
		2025				2024
Secured bank loans			2.10	%			2.09	%
Unsecured bank loans			—				2.22	%

LED obtained a secured loan from Chang Hwa Bank with monthly interest payments. LED entered into a contract with Chang Hwa Bank to renew the contract upon the maturity of the aforementioned contract in August 2024, and the due date of the renewed contract is September 2027.

CLPT entered into an unsecured loan contract with Mega International Commercial Bank, and interest was paid monthly. The loan was fully repaid in July 2025.

24. BONDS PAYABLE

		December 31
		2025				2024
Unsecured domestic bonds		$	25,200,000			$	30,500,000
Less: Discounts on bonds payable			(11,862	)			(11,794	)
			25,188,138				30,488,206
Less: Current portion			(1,899,856	)			(8,798,880	)
		$	23,288,282			$	21,689,326

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

Issuance		Tranche		Issuance Period		Total Amount				Coupon Rate				Repayment and Interest Payment
2020-1		A		July 2020 to July 2025		$	8,800,000				0.50	%		One-time repayment upon maturity; interest payable annually
		B		July 2020 to July 2027			7,500,000				0.54	%		The same as above
		C		July 2020 to July 2030			3,700,000				0.59	%		The same as above
2021-1		A		April 2021 to April 2026			1,900,000				0.42	%		The same as above
		B		April 2021 to April 2028			4,100,000				0.46	%		The same as above
		C		April 2021 to April 2031			1,000,000				0.50	%		The same as above
2022-1 (Sustainable Bond)		-		March 2022 to March 2027			3,500,000				0.69	%		The same as above
2025-1 (Sustainable Bond)		-		August 2025 to August 2030			3,500,000				1.73	%		The same as above

- 59 -

25. TRADE NOTES AND ACCOUNTS PAYABLE

		December 31
		2025				2024
Trade notes and accounts payable		$	15,922,842			$	17,742,532

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

26. OTHER PAYABLES

		December 31
		2025				2024
Accrued salary and compensation		$	11,408,186			$	10,721,819
Accrued compensation to employees and remuneration to directors and supervisors			2,783,132				2,499,932
Payables to contractors			2,484,267				2,264,856
Amounts collected for others			1,969,693				1,706,744
Accrued maintenance costs			1,209,557				1,116,992
Payables to equipment suppliers			556,637				720,361
Others			8,304,670				7,550,649
		$	28,716,142			$	26,581,353

27. PROVISIONS

		December 31
		2025				2024
Decommissioning liabilities		$	300,562			$	—
Onerous contracts			260,983				266,755
Employee benefits			254,888				415,477
Warranties			252,310				280,679
Others			16,273				13,574
		$	1,085,016			$	976,485
Current		$	524,743			$	441,801
Noncurrent			560,273				534,684
		$	1,085,016			$	976,485

- 60 -

		Decommiss- ioning liabilities				Onerous Contracts				Employee Benefits				Warranties				Others				Total
Balance on January 1, 2024		$	—			$	194,651			$	387,082			$	237,873			$	3,067			$	822,673
Additional / (reversal of) provisions recognized			—				72,104				33,790				113,375				11,101				230,370
Used / forfeited during the year		$	—			$	—			$	(5,395	)		$	(70,639	)		$	(594	)		$	(76,628	)
Effect of foreign exchange differences			—				—				—				70				—				70
Balance on December 31, 2024		$	—			$	266,755			$	415,477			$	280,679			$	13,574			$	976,485
Balance on January 1, 2025		$	—			$	266,755			$	415,477			$	280,679			$	13,574			$	976,485
Additional / (reversal of) provisions recognized			300,562				(5,538	)			60,126				58,671				6,608				420,429
Used / forfeited during the year			—				—				(220,715	)			(87,011	)			(3,909	)			(311,635	)
Effect of foreign exchange differences			—				(234	)			—				(29	)			—				(263	)
Balance on December 31, 2025		$	300,562			$	260,983			$	254,888			$	252,310			$	16,273			$	1,085,016

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

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

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

d. The provision for decommissioning liabilities represents the Company’s obligations to dismantle, remove the asset and restore the site for certain handsets base stations in the future. A provision is recognized for the costs to be incurred for fulfilling these obligations.

28. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The pension plan under the Labor Pension Act of ROC (the “LPA”) is considered as a defined contribution plan. Based on the LPA, Chunghwa and its domestic subsidiaries make monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages. Its foreign subsidiaries would make monthly contributions based on the local pension requirements.

- 61 -

b. Defined benefit plans

Chunghwa completed its privatization plans on August 12, 2005. Chunghwa is required to pay all accrued pension obligations including service clearance payment, lump sum payment under civil service plan, additional separation payments, etc. upon the completion of the privatization in accordance with the Statute Governing Privatization of Stated-owned Enterprises. After paying all pension obligations for privatization, the plan assets of Chunghwa should be transferred to the Fund for Privatization of Government-owned Enterprises (the “Privatization Fund”) under the Executive Yuan. On August 7, 2006, Chunghwa transferred the remaining balance of fund to the Privatization Fund. However, according to the instructions of MOTC, Chunghwa was requested to administer the distributions to employees for pension obligations including service clearance payment, lump sum payment under civil service plan, additional separation payments, etc. upon the completion of the privatization and recognized in other current monetary assets.

Chunghwa and its subsidiaries SENAO, CHIEF, CHSI, SHE, IISI and UTC with the pension mechanism under the Labor Standards Law in the ROC are considered as defined benefit plans. These pension plans provide benefits based on an employee’s length of service and average six-month salary prior to retirement. Chunghwa and its subsidiaries contribute an amount no more than 15% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the names of the Committees in the Bank of Taiwan. The plan assets are held in a commingled fund which is operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the funds. According to the Article 56 of the Labor Standards Law in the ROC, entities are required to contribute the difference in one appropriation to their pension funds before the end of next March when the balance of the Funds is insufficient to pay the eligible employees who meet the retirement criteria in the following year.

The amounts included in the consolidated balance sheets arising from the Company’s obligation in respect of its defined benefit plans were as follows:

		December 31
		2025				2024
Present value of funded defined benefit obligations		$	27,304,904			$	27,985,128
Fair value of plan assets			(34,841,125	)			(34,761,623	)
Funded status - surplus		$	(7,536,221	)		$	(6,776,495	)
Net defined benefit liabilities		$	2,329,312			$	2,107,224
Net defined benefit assets			(9,865,533	)			(8,883,719	)
		$	(7,536,221	)		$	(6,776,495	)

Movements in the defined benefit obligations and the fair value of plan assets were as follows:

		Present Value of Funded Defined Benefit Obligations				Fair Value of Plan Assets				Net Defined Benefit Liabilities (Assets)
Balance on January 1, 2024		$	30,312,817			$	34,177,970			$	(3,865,153	)
Current service cost			903,599				—				903,599
Interest expense / interest income			371,826				421,554				(49,728	)
Amounts recognized in profit or loss			1,275,425				421,554				853,871
Remeasurement on the net defined benefit liability
Return on plan assets (excluding amounts included in net interest)		$	—			$	3,104,723			$	(3,104,723	)
Actuarial gain recognized from changes in financial assumptions			(382,229	)			—				(382,229	)

(Continued)

- 62 -

		Present Value of Funded Defined Benefit Obligations				Fair Value of Plan Assets				Net Defined Benefit Liabilities (Assets)
Actuarial loss recognized from experience adjustments		$	1,232,374			$	—			$	1,232,374
Amounts recognized in other comprehensive income			850,145				3,104,723				(2,254,578	)
Contributions from employer			—				1,244,584				(1,244,584	)
Benefits paid			(4,186,929	)			(4,186,929	)			—
Settlement of plan obligation of subsidiaries			—				(279	)			279
Benefits paid directly by the Company			(266,330	)			—				(266,330	)
Balance on December 31, 2024			27,985,128				34,761,623				(6,776,495	)
Current service cost			810,311				—				810,311
Interest expense / interest income			470,450				602,009				(131,559	)
Amounts recognized in profit or loss			1,280,761				602,009				678,752
Remeasurement on the net defined benefit liability
Return on plan assets (excluding amounts included in net interest)			—				2,398,858				(2,398,858	)
Actuarial gain recognized from changes in demographic assumptions			(7,285	)			—				(7,285	)
Actuarial loss recognized from changes in financial assumptions			806,986				—				806,986
Actuarial loss recognized from experience adjustments			1,501,335				—				1,501,335
Amounts recognized in other comprehensive income			2,301,036				2,398,858				(97,822	)
Contributions from employer			—				1,117,253				(1,117,253	)
Benefits paid			(4,038,618	)			(4,038,618	)			—
Benefits paid directly by the Company			(223,403	)			—				(223,403	)
Balance on December 31, 2025		$	27,304,904			$	34,841,125			$	(7,536,221	)

(Concluded)

Relevant pension costs recognized in profit and loss for defined benefit plans were as follows:

		Year Ended December 31
		2025				2024
Operating costs		$	320,033			$	415,685
Marketing expenses			253,375				313,615
General and administrative expenses			61,184				73,051
Research and development expenses			28,750				32,495
		$	663,342			$	834,846

- 63 -

The Company is exposed to following risks for the defined benefits plans under the Labor Standards Law in the ROC:

a. Investment risk

Under the Labor Standards Law in the ROC, the rate of return on assets shall not be lower than the average interest rate on a two-year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return. The plan assets are held in a commingled fund mainly invested in foreign and domestic equity and debt securities and bank deposits which is operated and managed by the government’s designated authorities; as such, the Company does not have any right to intervene in the investments of the funds.

b. Interest rate risk

The decline in government bond interest rate will increase the present value of the obligation on the defined benefit plan, while the return on plan assets will increase. The net effect on the present value of the obligation on defined benefit plan is partially offset by the return on plan assets.

c. Salary risk

The calculation of the present value of defined benefit obligations is referred to the plan participants’ future salary. Hence, the increase in plan participants’ salary will increase the present value of the defined benefit obligations.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligations were carried out by the independent actuary.

The principal assumptions used for the purpose of the actuarial valuations were as follows:

		Measurement Date
		December 31
		2025				2024
Discount rates			1.50%				1.75%
Expected rates of salary increase			1.00%~2.50%				1.00%~2.25%

If reasonably possible changes of the respective significant actuarial assumptions occur at the end of reporting periods, while holding all other assumptions constant, the present values of the defined benefit obligations would increase (decrease) as follows:

		December 31
		2025				2024
Discount rates
0.5% increase		$	(722,739	)		$	(790,048	)
0.5% decrease		$	889,315			$	835,848
Expected rates of salary increase
0.5% increase		$	955,672			$	903,770
0.5% decrease		$	(790,904	)		$	(861,833	)

- 64 -

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. There is no change in the methods and assumptions used in preparing the sensitivity analysis from the previous period.

		December 31
		2025				2024
The expected contributions to the plan for the next year		$	1,096,083			$	1,223,997
The average duration of the defined benefit obligations			5.7~9 years				6~10 years

As of December 31, 2025, the Company’s maturity analysis of the undiscounted benefit payments was as follows:

Year		Amount
2026		$	2,423,133
2027			3,927,532
2028			3,483,861
2029			2,767,821
2030 and thereafter			12,242,639
		$	24,844,986

29. EQUITY

a. Share capital

1) Common stocks

		December 31
		2025				2024
Number of authorized shares (thousand)			12,000,000				12,000,000
Authorized shares		$	120,000,000			$	120,000,000
Number of issued and paid shares (thousand)			7,757,447				7,757,447
Issued shares		$	77,574,465			$	77,574,465

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

2) Global depositary receipts

The MOTC and some stockholders sold some common stocks of Chunghwa in an international offering of securities in the form of American Depositary Shares (“ADS”) (one ADS represents 10 common stocks) in July 2003, August 2005, and September 2006. The ADSs were traded on the New York Stock Exchange since July 17, 2003. As of December 31, 2025, the outstanding ADSs were 186,374 thousand common stocks, which equaled 18,637 thousand units and represented 2.40% of Chunghwa’s total outstanding common stocks.

The ADS holders generally have the same rights and obligations as other common stockholders, subject to the provision of relevant laws. The exercise of such rights and obligations shall comply with the related regulations and deposit agreement, which stipulate, among other things, that ADS holders are entitled to, through deposit agents:

a) Exercise their voting rights,

b) Sell their ADSs, and

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

- 65 -

b. Additional paid-in capital

The adjustments of additional paid-in capital for the years ended December 31, 2025 and 2024 were as follows:

		Share Premium				Movements of Additional Paid-in Capital for Associates and Joint Ventures Accounted for Using Equity Method				Movements of Additional Paid-in Capital Arising from Changes in Equities of Subsidiaries				Difference between Consideration Received or Paid and Carrying Amount of the Subsidiaries’ Net Assets during Actual Disposal or Acquisition				Donated Capital				Stockholders’ Contribution due to Privatization				Total
Balance on January 1, 2024		$	147,329,386			$	151,952			$	2,144,727			$	987,607			$	27,336			$	20,648,078			$	171,289,086
Unclaimed dividend			—				—				—				—				2,109				—				2,109
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method			—				71,883				—				—				—				—				71,883
Actual disposal of interests in subsidiaries			—				—				406				223,887				—				—				224,293
Changes in equities of subsidiaries			—				—				(92	)			—				—				—				(92	)
Balance on December 31, 2024			147,329,386				223,835				2,145,041				1,211,494				29,445				20,648,078				171,587,279
Unclaimed dividend			—				—				—				—				1,926				—				1,926
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method			—				(5,929	)			—				—				—				—				(5,929	)
Actual disposal of interests in subsidiaries			—				—				1,824				233,728				—				—				235,552
Change in additional paid-in capital for not participating in the capital increase of subsidiaries			—				—				629,972				—				—				—				629,972
Changes in equities of subsidiaries			—				—				2,086				—				—				—				2,086
Balance on December 31, 2025		$	147,329,386			$	217,906			$	2,778,923			$	1,445,222			$	31,371			$	20,648,078			$	172,450,886

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

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

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

c. Retained earnings and dividends policy

In accordance with the Chunghwa’s Articles of Incorporation, Chunghwa must pay all outstanding taxes, offset deficits in prior years and set aside a legal reserve equal to 10% of its net income before distributing a dividend or making any other distribution to stockholders, except when the accumulated amount of such legal reserve equals to Chunghwa’s total issued capital, and depending on its business needs or requirements, may also set aside or reverse special reserves. No less than 50% of the remaining earnings comprising remaining balance of net income, if any, plus cumulative undistributed earnings shall be distributed as stockholders’ dividends, of which cash dividends to be distributed shall not be less than 50% of the total amount of dividends to be distributed. If cash dividend to be distributed is less than $0.10 per share, such cash dividend shall be distributed in the form of common stocks.

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The Company should appropriate a special reserve when the net amount of other equity items is negative at the end of reporting period upon the earnings distribution. Distributions can be made out of any subsequent reversal of the debit to other equity items.

The appropriation for legal reserve shall be made until the accumulated reserve equals the aggregate par value of the outstanding capital stock of Chunghwa. This reserve can only be used to offset a deficit, or when the legal reserve has exceeded 25% of Chunghwa’s paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of the 2024 and 2023 earnings of Chunghwa approved by the stockholders in their meetings on May 29, 2025 and May 31, 2024 were as follows:

		Appropriation of Earnings								Dividends Per Share (NT$)
		For Fiscal Year 2024				For Fiscal Year 2023				For Fiscal Year 2024				For Fiscal Year 2023
Reversal of special reserve		$	—			$	(223,084	)
Cash dividends			38,787,232				36,909,931			$	5.000			$	4.758

The appropriations of earnings for 2025 had been proposed by Chunghwa’s Board of Directors on February 26, 2026. The appropriations and dividends per share were as follows:

		Appropriation of Earnings				Dividends Per Share (NT$)
Cash dividends		$	40,338,722			$	5.200

The appropriations of earnings for 2025 are subject to the resolution of the stockholders’ meeting planned to be held on May 29, 2026. Information of the appropriation of Chunghwa’s earnings proposed by the Board of Directors and approved by the stockholders is available on the Market Observation Post System website.

d. Others

1) Exchange differences arising from the translation of the foreign operations

The exchange differences arising from the translation of the foreign operations from their functional currency to New Taiwan dollars were recognized as exchange differences arising from the translation of the foreign operations in other comprehensive income.

2) Unrealized gain or loss on financial assets at FVOCI

		Year Ended December 31
		2025				2024
Beginning balance		$	563,605			$	520,748
Recognized for the year
Unrealized gain or loss
Equity instruments			613,263				44,823
Income tax relating to unrealized gain or loss			(201	)			—
Share of profits (loss) of associates and joint ventures accounted for using equity method			32,049				(1,966	)
Transferred accumulated gain or loss to unappropriated earnings resulting from the disposal of equity instruments (Note 8)			(16	)			—
Ending balance		$	1,208,700			$	563,605

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e. Noncontrolling interests

		Year Ended December 31
		2025				2024
Beginning balance		$	13,154,166			$	12,596,252
Shares attributed to noncontrolling interests
Net income for the year			1,804,696				1,317,038
Exchange differences arising from the translation of the foreign operations			(8,744	)			11,949
Unrealized gain or loss on financial assets at FVOCI			7,326				3,362
Remeasurements of defined benefit pension plans			2,382				17,759
Income tax relating to other comprehensive income			(685	)			(3,552	)
Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method			(12,703	)			17,098
Cash dividends distributed by subsidiaries			(1,307,323	)			(898,565	)
Loss of control of subsidiaries (Note 14)			19,534				—
Changes in additional paid-in capital from investments in associates and joint ventures accounted for using equity method			140				13,029
Actual disposal of interests in subsidiaries			75,106				34,480
Change in additional paid-in capital for not participating in the capital increase of subsidiaries			759,248				—
Net increase in noncontrolling interests			39,222				45,316
Ending balance		$	14,532,365			$	13,154,166

30. REVENUES

		Year Ended December 31
		2025				2024
Revenue from contracts with customers		$	233,650,618			$	227,184,513
Other revenues
Government grants income			1,362,751				1,392,885
Rental income			885,383				1,196,240
Others			215,657				194,654
			2,463,791				2,783,779
		$	236,114,409			$	229,968,292

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For the information of performance obligations related to customer contracts, please refer to Note 3 Summary of Material Accounting Policy Information for details.

a. Disaggregation of revenue

Please refer to Note 44 Segment Information for details.

b. Contract balances

		December 31, 2025				December 31, 2024				January 1, 2024
Trade notes and accounts receivable (Note 10)		$	27,396,423			$	26,025,696			$	24,841,995
Contract assets
Products and service bundling		$	10,991,761			$	10,445,758			$	9,297,181
Others			2,345,625				2,306,854				1,205,973
Less: Loss allowance			(27,818	)			(23,845	)			(21,282	)
		$	13,309,568			$	12,728,767			$	10,481,872
Current		$	8,576,194			$	8,401,343			$	6,713,227
Noncurrent			4,733,374				4,327,424				3,768,645
		$	13,309,568			$	12,728,767			$	10,481,872
Contract liabilities
Telecommunications business		$	13,541,048			$	13,931,238			$	14,015,949
Project business			12,061,031				8,014,350				6,654,364
Advance house and land receipts (Notes 11 and 40)			1,227,575				1,064,150				459,697
Others			1,033,868				831,978				518,758
		$	27,863,522			$	23,841,716			$	21,648,768
Current		$	21,296,124			$	16,300,986			$	14,088,416
Noncurrent			6,567,398				7,540,730				7,560,352
		$	27,863,522			$	23,841,716			$	21,648,768

The changes in the contract asset and the contract liability balances primarily result from the timing difference between the satisfaction of performance obligations and the payments collected from customers. Significant changes of contract assets and liabilities recognized resulting from product and service bundling were as follows:

		Year Ended December 31
		2025				2024
Contract assets
Net increase of customer contracts		$	8,350,884			$	8,616,560
Reclassified to trade receivables			(7,841,939	)			(7,442,992	)
		$	508,945			$	1,173,568
Contract liabilities
Net increase of customer contracts		$	223,586			$	197,195
Recognized as revenues			(215,011	)			(184,110	)
		$	8,575			$	13,085

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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.

Revenue recognized for the year that was included in the contract liability at the beginning of the year was as follows:

		Year Ended December 31
		2025				2024
Telecommunications business		$	6,888,571			$	6,721,417
Project business			5,071,789				4,473,902
Others			540,842				458,779
		$	12,501,202			$	11,654,098

c. Incremental costs of obtaining contracts

		December 31
		2025				2024
Current
Incremental costs of obtaining contracts		$	338,581			$	339,172
Noncurrent
Incremental costs of obtaining contracts		$	1,109,029			$	1,221,652

The Company considered the past experience and the default clauses in the telecommunications service contracts and believes the commissions and equipment subsidies paid for obtaining such contracts are expected to be recoverable; therefore, such costs were capitalized. The Company also believes the commissions paid for obtaining real estate sale contracts are expected to be recoverable; therefore, such costs were capitalized. Amortization expenses for the years ended December 31, 2025 and 2024 were $944,587 thousand and $905,990 thousand, respectively.

d. Remaining Performance Obligations

As of December 31, 2025, the aggregate amount of transaction price allocated to performance obligations for non-cancellable telecommunications service contracts that are unsatisfied is $45,354,477 thousand. The Company recognizes revenue when service is provided over contract terms. The Company expects to recognize such revenue of $26,157,614 thousand, $13,977,852 thousand and $5,219,011 thousand in 2026, 2027 and 2028, respectively. The variable consideration collected from customers on nonrecurring basis resulting from exceeded usage from monthly fee and revenue recognized for contracts that the Company has a right to consideration from customers in the amount corresponding directly with the value to the customers of the Company’s performance completed to date have been excluded from the disclosure of remaining performance obligations.

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As of December 31, 2025, the aggregate amount of transaction price allocated to performance obligations for non-cancellable project business contracts that are unsatisfied is $47,078,355 thousand. The Company recognizes revenues when the project business contract is completed and accepted by customers. The Company expects to recognize such revenue of $23,570,774 thousand, $13,430,904 thousand and $10,076,677 thousand in 2026, 2027 and 2028, respectively. Project business contracts whose expected duration are less than a year have been excluded from the aforementioned disclosure.

31. NET INCOME

a. Other income and expenses

		Year Ended December 31
		2025				2024
Loss on disposal of property, plant and equipment, net		$	(28,555	)		$	(17,347	)
Impairment loss on property, plant and equipment			(112,219	)			—
Reversal of impairment loss on investment properties			28,354				139,200
Gain on disposal of intangible assets, net			276				—
		$	(112,144	)		$	121,853

b. Other income

		Year Ended December 31
		2025				2024
Dividend income		$	280,667			$	239,908
Rental income			77,084				75,424
Others			133,992				148,011
		$	491,743			$	463,343

c. Other gains and losses

		Year Ended December 31
		2025				2024
Valuation loss on financial assets and liabilities at fair value through profit or loss, net		$	(91,513	)		$	(147,026	)
Foreign currency exchange gain (loss), net			5,946				(21,619	)
Gain on disposal of subsidiaries, net			15,290				—
Gain on disposal of investments accounted for using equity method, net			738,929				—
Gain on disposal of financial instruments, net			—				1,077
Others			(36,120	)			(10,935	)
		$	632,532			$	(178,503	)

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d. Interest expenses

		Year Ended December 31
		2025				2024
Interest on bonds payable		$	169,087			$	167,760
Interest on lease liabilities			153,812				128,431
Interest paid to financial institutions			45,244				42,469
Others			2,224				682
		$	370,367			$	339,342

e. Impairment loss (reversal of impairment loss)

		Year Ended December 31
		2025				2024
Contract assets		$	3,973			$	2,563
Trade notes and accounts receivable		$	196,243			$	179,401
Other receivables		$	9,230			$	6,100
Inventories		$	34,070			$	60,381
Property, plant and equipment		$	112,219			$	—
Investment properties		$	(28,354	)		$	(139,200	)

f. Depreciation and amortization expenses

		Year Ended December 31
		2025				2024
Property, plant and equipment		$	29,182,658			$	28,706,991
Right-of-use assets			4,321,718				4,168,099
Investment properties			45,282				44,772
Intangible assets			6,666,281				6,698,604
Incremental costs of obtaining contracts			944,587				905,990
Total depreciation and amortization expenses		$	41,160,526			$	40,524,456
Depreciation expenses summarized by functions
Operating costs		$	31,350,269			$	30,769,946
Operating expenses			2,199,389				2,149,916
		$	33,549,658			$	32,919,862
Amortization expenses summarized by functions
Operating costs		$	7,434,026			$	7,406,226
Marketing expenses			94,165				94,547
General and administrative expenses			56,654				62,735
Research and development expenses			26,023				41,086
		$	7,610,868			$	7,604,594

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g. Employee benefit expenses

		Year Ended December 31
		2025				2024
Post-employment benefit
Defined contribution plans		$	1,215,738			$	1,073,797
Defined benefit plans			663,342				834,846
			1,879,080				1,908,643
Share-based payment
Equity-settled share-based payment			10,294				7,700
Other employee benefit (Note)			49,472,207				46,964,163
Total employee benefit expenses		$	51,361,581			$	48,880,506
Summary by functions
Operating costs		$	23,681,538			$	22,795,442
Operating expenses			27,680,043				26,085,064
		$	51,361,581			$	48,880,506

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

According to the amendments to the Chunghwa’s Articles of Incorporation approved by the Chunghwa’s stockholders in their meeting on May 31, 2024, the distribution rate of employees’ compensation increased from 1.7% to 4.3% of pre-tax income to 2% to 5% of pre-tax income, while the distribution rate of directors’ remuneration remained at no more than 0.17%. According to the amendments to the Chunghwa’s Articles of Incorporation approved by the Chunghwa’s stockholders in their meeting on May 29, 2025, no less than 20% of the total employees’ compensation shall be distributed to non-executive employees. As of December 31, 2025, the payables of the employees’ compensation and the remuneration to directors were $2,111,610 thousand and $42,133 thousand, respectively. Such amounts have been approved by the Company’s Board of Directors on February 26, 2026 and will be reported to the stockholders in their meeting planned to be held on May 29, 2026.

If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the difference is recorded as a change in accounting estimate.

The compensation to the employees and remuneration to the directors of 2024 and 2023 approved by the Board of Directors on February 26, 2025 and February 23, 2024, respectively, were as follows:

		Cash
		2024				2023
Compensation distributed to the employees		$	1,931,610			$	1,522,481
Remuneration paid to the directors			40,440				39,797

There was no difference between the initial accrued amounts recognized in 2024 and 2023 and the amounts approved by the Board of Directors in 2025 and 2024 of the aforementioned compensation to employees and the remuneration to directors.

Information of the appropriation of Chunghwa’s employees compensation and remuneration to directors and those approved by the Board of Directors is available on the Market Observation Post System website.

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32. INCOME TAX

a. Income tax recognized in profit or loss

The major components of income tax expense were as follows:

		Year Ended December 31
		2025				2024
Current tax
Current tax expenses recognized for the year		$	9,720,792			$	9,198,596
Income tax on unappropriated earnings			19,042				5,620
Income tax adjustments on prior years			(19,918	)			(176,629	)
Others			4,187				3,669
			9,724,103				9,031,256
Deferred tax
Deferred tax expenses recognized for the year			28,336				176,917
Income tax adjustments on prior years			61				8,114
			28,397				185,031
Income tax expense recognized in profit or loss		$	9,752,500			$	9,216,287

Reconciliation of accounting profit and income tax expense was as follows:

		Year Ended December 31
		2025				2024
Income before income tax		$	50,269,600			$	47,753,789
Income tax expense calculated at the statutory rate		$	10,053,920			$	9,550,758
Nondeductible income and expenses in determining taxable income			20,044				25,543
Tax-exempt income			(158,271	)			(11,910	)
Income tax on unappropriated earnings			19,042				5,620
Investment credits			(239,281	)			(218,234	)
Effect of different tax rates of group entities operating in other jurisdictions			(13,973	)			10,051
Income tax adjustments on prior years			(19,857	)			(168,515	)
Others			90,876				22,974
Income tax expense recognized in profit or loss		$	9,752,500			$	9,216,287

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

b. Income tax recognized in other comprehensive income

		Year Ended December 31
		2025				2024
Deferred tax
Remeasurement on defined benefit pension plans		$	19,564			$	450,916
Unrealized gain or loss on financial assets at FVOCI			410				—
		$	19,974			$	450,916

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c. Current tax assets and liabilities

		December 31
		2025				2024
Current tax assets
Tax refund receivable (included in other current assets—others)		$	14,840			$	4,550
Current tax liabilities
Income tax payable		$	5,218,971			$	4,718,103

d. Deferred income tax assets and liabilities

The movements of deferred income tax assets and liabilities were as follows:

For the year ended December 31, 2025

		Beginning Balance				Recognized in Profit or Loss				Recognized in Other Comprehensive Income				Effect of Deconsolidation of Subsidiaries (Note 14)				Ending Balance
Deferred income tax assets
Temporary differences
Defined benefit pension plans		$	1,044,907			$	16,298			$	(19,099	)		$	—			$	1,042,106
Allowance for doubtful receivables over quota			118,185				40,596				—				—				158,781
Valuation loss on financial assets			73,921				19,674				—				—				93,595
Impairment loss on assets			59,573				22,310				—				—				81,883
Inventory valuation and obsolescence losses			79,300				1,040				—				(1,645	)			78,695
Decommissioning liabilities			—				60,112				—				—				60,112
Estimated warranty liabilities			56,213				(5,671	)			—				—				50,542
Valuation loss on onerous contracts			45,575				3,048				—				—				48,623
Seniority bonus			74,744				(32,410	)			—				—				42,334
Unrealized foreign exchange loss, net			683				18,967				—				—				19,650
Share of profit or loss of associates and joint ventures accounted for using equity method			15,329				3,806				—				—				19,135
Accrued award credits liabilities			14,822				(1,931	)			—				—				12,891
Deferred revenue			4,667				(4,667	)			—				—				—
Others			73,483				(181	)			—				—				73,302
		$	1,661,402			$	140,991			$	(19,099	)		$	(1,645	)		$	1,781,649

(Continued)

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		Beginning Balance				Recognized in Profit or Loss				Recognized in Other Comprehensive Income				Effect of Deconsolidation of Subsidiaries (Note 14)				Ending Balance
Deferred income tax liabilities
Temporary differences
Defined benefit pension plans		$	2,403,059			$	146,931			$	465			$	—			$	2,550,455
Deferred revenue for award credits			111,653				11,839				—				—				123,492
Land value incremental tax			94,986				—				—				—				94,986
Intangible assets			15,303				(2,361	)			—				—				12,942
Unrealized foreign exchange gain, net			6,050				(3,387	)			—				—				2,663
Valuation gain on financial assets, net			149				(149	)			410				—				410
Others			27,219				16,515				—				—				43,734
		$	2,658,419			$	169,388			$	875			$	—			$	2,828,682

(Concluded)

For the year ended December 31, 2024

		Beginning Balance				Recognized in Profit or Loss				Recognized in Other Comprehensive Income				Ending Balance
Deferred income tax assets
Temporary differences
Defined benefit pension plans		$	1,484,496			$	10,729			$	(450,318	)		$	1,044,907
Allowance for doubtful receivables over quota			143,088				(24,903	)			—				118,185
Valuation loss on financial assets			45,414				28,507				—				73,921
Impairment loss on assets			59,778				(205	)			—				59,573
Inventory valuation and obsolescence losses			76,356				2,944				—				79,300
Estimated warranty liabilities			47,640				8,573				—				56,213
Valuation loss on onerous contracts			37,350				8,225				—				45,575
Seniority bonus			69,240				5,504				—				74,744
Unrealized foreign exchange loss, net			2,753				(2,070	)			—				683
Share of profit or loss of associates and joint ventures accounted for using equity method			8,314				7,015				—				15,329
Accrued award credits liabilities			16,547				(1,725	)			—				14,822

(Continued)

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		Beginning Balance				Recognized in Profit or Loss				Recognized in Other Comprehensive Income				Ending Balance
Deferred revenue		$	14,376			$	(9,709	)		$	—			$	4,667
Others			24,608				48,875				—				73,483
			2,029,960				81,760				(450,318	)			1,661,402
Loss carryforwards			69,479				(69,479	)			—				—
		$	2,099,439			$	12,281			$	(450,318	)		$	1,661,402
Deferred income tax liabilities
Temporary differences
Defined benefit pension plans		$	2,260,446			$	142,015			$	598			$	2,403,059
Deferred revenue for award credits			66,448				45,205				—				111,653
Land value incremental tax			94,986				—				—				94,986
Intangible assets			17,663				(2,360	)			—				15,303
Unrealized foreign exchange gain, net			11,466				(5,416	)			—				6,050
Valuation gain on financial assets, net			—				149				—				149
Others			9,500				17,719				—				27,219
		$	2,460,509			$	197,312			$	598			$	2,658,419

(Concluded)

e. Unused loss carryforwards and deductible temporary differences for which no deferred tax assets have been recognized in the consolidated balance sheets

		December 31
		2025				2024
Loss carryforwards
Expire in 2025		$	—			$	17,336
Expire in 2026			8,423				10,172
Expire in 2027			2,585				2,585
Expire in 2028			930				930
Expire in 2029			697				1,964
Expire in 2030			198				862
Expire in 2031			—				1,053
Expire in 2032			5,083				5,993
Expire in 2033			16,004				19,813
Expire in 2034			10,689				12,138
Expire in 2035			7,817				—
		$	52,426			$	72,846
Deductible temporary differences		$	17,735			$	16,411

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f. Income tax examinations

Income tax returns of Chunghwa have been examined by the tax authorities through 2022. Income tax returns of SENAO, Youth, ISPOT, Aval, Wiin, SENYOUNG, HHI, CHYP, CHSI, LED, SHE, CHIEF, Unigate, CHI, CHPT, NavCore, TestPro, SFD, CLPT, CHTSC, IISI and UTC have been examined by the tax authorities through 2023.

g. Pillar Two Model Rules

The application of the Pillar Two rules does not have a material impact on the Company’s consolidated financial statements. The Company will continue to review the possible impact on the Company’s future financial performance.

33. EARNINGS PER SHARE (“EPS”)

Net income and weighted average number of common stocks used in the calculation of earnings per share were as follows:

Net Income

		Year Ended December 31
		2025				2024
Net income used to compute the basic earnings per share
Net income attributable to the parent		$	38,712,404			$	37,220,464
Assumed conversion of all dilutive potential common stocks
Employee stock options and employee compensation of subsidiaries			(5,288	)			(3,251	)
Net income used to compute the diluted earnings per share		$	38,707,116			$	37,217,213

Weighted Average Number of Common Stocks

		(Thousand Shares)
		Year Ended December 31
		2025				2024
Weighted average number of common stocks used to compute the basic earnings per share			7,757,447				7,757,447
Assumed conversion of all dilutive potential common stocks
Employee compensation			18,565				17,482
Weighted average number of common stocks used to compute the diluted earnings per share			7,776,012				7,774,929

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.

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34. SHARE-BASED PAYMENT ARRANGEMENT

a. CHIEF share-based compensation plan (“CHIEF Plan”) described as follows:

The Board of Directors of CHIEF resolved to issue 200 stock options on November 13, 2020. Each option is eligible to subscribe for one thousand common stocks when exercisable and the exercise price is $206.00 per share. The options are granted to specific employees that meet the vesting conditions. The CHIEF Plan has an exercise price adjustment formula upon the changes in common stocks or distribution of cash dividends. The options of the CHIEF Plan are valid for five years and the graded vesting schedule will vest two years after the grant date.

CHIEF did not recognize any compensation costs for stock options for the year ended December 31, 2025. The compensation costs for stock options for the year ended December 31, 2024 were $2,688 thousand.

CHIEF modified the plan terms of stock options granted on November 13, 2020 in July 2024; therefore, the exercise price changed from $171.70 to $166.50 per share. The modification did not cause any incremental fair value granted.

Information about CHIEF’s outstanding stock options for the years ended December 31, 2025 and 2024 was as follows:

		Year Ended December 31, 2025								Year Ended December 31, 2024
		Granted on November 13, 2020								Granted on November 13, 2020
		Number of Options				Weighted Average Exercise Price (NT$)				Number of Options				Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year			7			$	166.50				93			$	171.70
Options exercised			(7	)			166.50				(85	)			166.50
Options forfeited			—				—				(1	)			—
Options outstanding at end of the year			—				—				7				166.50
Options exercisable at end of the year			—				—				7				166.50
Weighted average remaining contractual life (years)			—								0.87

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

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

b. New shares reserved for subscription by employees under capital increase of CHTSC

On June 25, 2025, the Board of Directors of CHTSC approved the capital increase to issue 3,683 thousand shares and simultaneously reserved 552 thousand shares, representing 15% of the total issuance, for subscription by employees. Furthermore, when the employees did not fully subscribe or discarded their rights to subscribe shares, the Board of Directors of CHTSC authorized the chairman of the Board of Directors to contact specific people or group to subscribe.

The aforementioned options granted to employees are accounted for and measured at fair value of the grant date in accordance with IFRS 2 “Share-Based Payment”. The fair value of CHTSC’s options granted to employees was $1.03 per share. The compensation costs for stock options for the year ended December 31, 2025 were $569 thousand.

CHTSC used the fair value method to evaluate the options granted to employees on August 20, 2025 using the Black-Scholes model and the related assumptions and the fair value of the options were as follows:

		Stock Options Granted on August 20, 2025
Grant-date share price (NT$)		$	216.96
Exercise price (NT$)		$	238.00
Dividend yield			—
Risk-free interest rate			0.97%
Expected life			0.038 years
Expected volatility			39.95%
Weighted average fair value of grants (NT$)		$	1.03

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

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c. CHTSC share-based compensation plan (“CHTSC Plan”) described as follows:

The Board of Directors of CHTSC resolved to issue 4,500 and 3,500 stock options on December 20, 2019 and February 20, 2021, respectively. Each option is eligible to subscribe for one thousand common stocks when exercisable and the exercise prices are both $19.085 per share. The options are granted to specific employees that meet the vesting conditions. The CHTSC Plan has an exercise price adjustment formula upon the changes in common stocks. The options of the CHTSC Plan are valid for five years and the graded vesting schedule will vest one year after the grant date.

The compensation costs for stock options for the years ended December 31, 2025 and 2024 were $74 thousand and $155 thousand, respectively.

Information about CHTSC’s outstanding stock options for the years ended December 31, 2025 and 2024 was as follows:

		Year Ended December 31, 2025
		Granted on February 20, 2021
		Number of Options				Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year			655			$	19.085
Options exercised			(651	)			19.085
Options forfeited			(2	)			—
Options outstanding at end of the year			2				19.085
Options exercisable at end of the year			2				19.085
Weighted average remaining contractual life (years)			0.14

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		Year Ended December 31, 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 year			1,519			$	19.085				40			$	19.085
Options exercised			(699	)			19.085				(20	)			19.085
Options forfeited			(165	)		$	—				(20	)		$	—
Options outstanding at end of the year			655				19.085				—				—
Options exercisable at end of the year			5				19.085				—				—
Weighted average remaining contractual life (years)			1.14								—

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

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

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

d. CLPT share-based compensation plan (“CLPT Plan”) described as follows:

The Board of Directors of CLPT resolved to issue 690, 600, 755 and 305 stock options on February 26, 2021, May 31, 2022, September 26, 2023 and October 30, 2025, 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. In addition, the Board of Directors of CLPT approved an amendment to the CLPT Plan on October 30, 2025. Under the amended plan, the stock options were valid until December 31, 2025. Employees may exercise the options immediately upon grant, and the vesting conditions were revised from the original service requirement of 2 to 3 years to full and immediate vesting.

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The compensation costs for stock options for the years ended December 31, 2025 and 2024 were $9,651 thousand and $4,857 thousand, respectively.

CLPT modified the plan terms of stock options granted on September 26, 2023 in October 2024 and October 2025; therefore, the exercise price changed from $15.30 to $14.10 and $12.60 per share, respectively. The modification did not cause any incremental fair value granted.

CLPT modified the plan terms of stock options granted on May 31, 2022 in October 2024 and October 2025; therefore, the exercise price changed from $15.30 to $14.10 and $12.60 per share, respectively. The modification did not cause any incremental fair value granted.

CLPT modified the plan terms of stock options granted on February 26, 2021 in October 2024; therefore, the exercise price changed from $14.40 to $13.30 per share. The modification did not cause any incremental fair value granted.

Information about CLPT’s outstanding stock options for the years ended December 31, 2025 and 2024 was as follows:

		Year Ended December 31, 2025
		Granted on October 30, 2025								Granted on September 26, 2023								Granted on May 31, 2022								Granted on February 26, 2021
		Number of Options				Weighted Average Exercise Price (NT$)				Number of Options				Weighted Average Exercise Price (NT$)				Number of Options				Weighted Average Exercise Price (NT$)				Number of Options				Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year			—			$	—				750			$	14.10				220			$	14.10				25			$	13.30
Options granted			305				16.87				—				—				—				—				—				—
Options exercised			(305	)			16.87				(750	)			12.60				(220	)			12.60				—				—
Options forfeited			—				—				—				—				—				—				(25	)			—
Options outstanding at end of the year			—				—				—				—				—				—				—				—
Options exercisable at end of the year			—				—				—				—				—				—				—				—
Weighted average remaining contractual life (years)			—								—								—								—

		Year Ended December 31, 2024
		Granted on September 26, 2023								Granted on May 31, 2022								Granted on February 26, 2021
		Number of Options				Weighted Average Exercise Price (NT$)				Number of Options				Weighted Average Exercise Price (NT$)				Number of Options				Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the year			755			$	15.30				440			$	15.30				440			$	14.40
Options exercised			—				—				(220	)			15.30				(415	)			14.40
Options forfeited			(5	)			—				—				—				—				—
Options outstanding at end of the year			750				14.10				220				14.10				25				13.30
Options exercisable at end of the year			—				—				—				—				25				13.30
Weighted average remaining contractual life (years)			2.74								1.41								0.16

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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 October 30, 2025				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$)		$	33.41			$	28.43			$	18.66			$	17.63
Exercise price (NT$)		$	16.87			$	16.87			$	16.87			$	16.87
Dividend yield			—				—				—				—
Risk-free interest rate			1.20%				1.10%				0.98%				0.31%
Expected life			0.08 years				4 years				4 years				4 years
Expected volatility			29.59%				31.99%				35.76%				35.22%
Weighted average fair value of grants (NT$)		$	16,560			$	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.

e. New shares reserved for subscription by employees under capital increase of IISI

On September 23, 2025, the Board of Directors of IISI approved the capital increase to issue 7,725 thousand shares and simultaneously reserved 1,158 thousand shares, representing 15% of the total issuance, for subscription by employees. Furthermore, when the employees did not fully subscribe or discarded their rights to subscribe shares, the Board of Directors of IISI authorized the chairman of the Board of Directors to contact specific people or group to subscribe.

The aforementioned options granted to employees are accounted for and measured at fair value of the grant date in accordance with IFRS 2 “Share-Based Payment”. The fair value of IISI’s options granted to employees was $1.57 per share. The compensation costs for stock options for the year ended December 31, 2025 were $1,790 thousand.

IISI used the fair value method to evaluate the options granted to employees on November 7, 2025 using the Black-Scholes model and the related assumptions and the fair value of the options were as follows:

		Stock Options Granted on November 7, 2025
Grant-date share price (NT$)		$	46.12
Exercise price (NT$)		$	46.00
Dividend yield			—
Risk-free interest rate			1.20%
Expected life			0.04 years
Expected volatility			40.69%
Weighted average fair value of grants (NT$)		$	1.57

Expected volatility was based on the average historical share price volatility of IISI’s comparable companies over the one-year period before the grant date.

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35. CASH FLOW INFORMATION

Except for those disclosed in other notes, the Company entered into the following non-cash investing and financing activities:

		Year Ended December 31
Investing Activities		2025				2024
Additions of property, plant and equipment		$	27,766,320			$	28,575,455
Changes in other payables			(68,297	)			180,095
Payments for acquisition of property, plant and equipment		$	27,698,023			$	28,755,550

Financing Activities

		Balance on January 1,				Cash Flows from Financing				Changes in Non-Cash Transactions								Cash Flows from Operating Activities -				Balance on December 31,
		2025				Activities				New Leases				Others				Interest Paid				2025
Lease liabilities		$	10,891,377			$	(4,134,509	)		$	4,445,019			$	(157,934	)		$	(153,812	)		$	10,890,141

		Balance on January 1,				Cash Flows from Financing				Changes in Non-Cash Transactions								Cash Flows from Operating Activities -				Balance on December 31,
		2024				Activities				New Leases				Others				Interest Paid				2024
Lease liabilities		$	10,975,181			$	(3,944,494	)		$	4,091,788			$	(102,667	)		$	(128,431	)		$	10,891,377

36. CAPITAL MANAGEMENT

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Company consists of debt of the Company and the equity attributable to the parent.

Some consolidated entities are required to maintain minimum paid-in capital amount as prescribed by the applicable laws.

The management reviews the capital structure of the Company as needed. As part of this review, the management considers the cost of capital and the risks associated with each class of capital. According to the management’s suggestions, the Company maintains a balanced capital structure through paying cash dividends, increasing its share capital, purchasing outstanding shares, and issuing new debt or repaying debt.

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37. FINANCIAL INSTRUMENTS

Fair Value Information

The fair value measurement guidance establishes a framework for measuring fair value and expands disclosure about fair value measurements. The standard describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. These levels are:

Level 1 fair value measurements: These measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 fair value measurements: These measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 fair value measurements: These measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

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

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

		December 31
		2025								2024
		Carrying Value				Fair Value				Carrying Value				Fair Value
Financial assets
Financial assets at amortized cost
Corporate bonds		$	2,020,300			$	2,030,144			$	2,000,000			$	2,002,268
Financial liabilities
Financial liabilities at amortized cost
Bonds payable		$	25,188,138			$	25,196,749			$	30,488,206			$	30,485,103

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

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

December 31, 2025

		Level 1				Level 2				Level 3				Total
Financial assets at FVTPL
Derivatives		$	—			$	3,372			$	—			$	3,372
Non-listed stocks			—				—				641,999				641,999
Limited partnership			—				—				499,656				499,656
Other investing agreements		$	—			$	—			$	69,697			$	69,697
		$	—			$	3,372			$	1,211,352			$	1,214,724
Financial assets at FVOCI
Listed and emerging stocks		$	315,902			$	—			$	—			$	315,902
Non-listed stocks			—				—				6,489,456				6,489,456
		$	315,902			$	—			$	6,489,456			$	6,805,358
Financial liabilities at FVTPL
Derivatives		$	—			$	3			$	—			$	3
Hedging financial assets		$	—			$	3,204			$	—			$	3,204
Hedging financial liabilities		$	—			$	56			$	—			$	56

December 31, 2024

		Level 1				Level 2				Level 3				Total
Financial assets at FVTPL
Derivatives		$	—			$	290			$	—			$	290
Non-listed stocks			—				—				661,152				661,152
Limited partnership			—				—				307,327				307,327
Other investing agreements			—				—				36,757				36,757
		$	—			$	290			$	1,005,236			$	1,005,526
Financial assets at FVOCI
Listed and emerging stocks		$	126,013			$	—			$	—			$	126,013
Non-listed stocks			—				—				4,540,963				4,540,963
		$	126,013			$	—			$	4,540,963			$	4,666,976
Hedging financial assets		$	—			$	1,133			$	—			$	1,133
Hedging financial liabilities		$	—			$	1,907			$	—			$	1,907

There were no transfers between Levels 1 and 2 for the years ended December 31, 2025 and 2024.

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

2025

Financial Assets		Measured at Fair Value through Profit or Loss				Measured at Fair Value through Other Comprehensive Income				Total
Balance on January 1, 2025		$	1,005,236			$	4,540,963			$	5,546,199
Acquisition			325,792				1,464,495				1,790,287
Disposal			—				(374	)			(374	)
Recognized in profit or loss under “Other gains and losses”			(94,592	)			—				(94,592	)
Recognized in other comprehensive income under “Unrealized gain or loss on financial assets at fair value through other comprehensive income”			—				523,282				523,282
Proceeds from capital reduction of the investees and profit distribution			(25,084	)			(38,910	)			(63,994	)
Balance on December 31, 2025		$	1,211,352			$	6,489,456			$	7,700,808
Unrealized gain or loss in 2025		$	(94,585	)

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			158,909				312,780				471,689
Recognized in profit or loss under “Other gains and losses”			(146,860	)			—				(146,860	)
Recognized in other comprehensive income under “Unrealized gain or loss on financial assets at fair value through other comprehensive income”			—				62,594				62,594
Proceeds from capital reduction of the investees and profit distribution			(42,514	)			(3,105	)			(45,619	)
Balance on December 31, 2024		$	1,005,236			$	4,540,963			$	5,546,199
Unrealized gain or loss in 2024		$	(143,396	)

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

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

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

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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.

		December 31
		2025				2024
Discount for lack of marketability			10.00%~30.00%				20.00%~30.00%
Noncontrolling interests discount			10.00%~29.04%				15.00%~29.04%
Growth rate of long-term revenue			1.33%				0.12%
Discount rate			8.21%~11.60%				8.32%~14.40%

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.

		December 31
		2025				2024
Discount for lack of marketability
5% increase		$	(130,863	)		$	(63,350	)
5% decrease		$	130,863			$	63,350
Noncontrolling interests discount
5% increase		$	(120,840	)		$	(50,558	)
5% decrease		$	120,840			$	50,558
Growth rate of long-term revenue
0.1% increase		$	40,424			$	31,347
0.1% decrease		$	(39,685	)		$	(30,798	)
Discount rate
1% increase		$	(457,823	)		$	(362,930	)
1% decrease		$	560,233			$	439,187

Categories of Financial Instruments

		December 31
		2025				2024
Financial assets
Measured at FVTPL
Mandatorily measured at FVTPL		$	1,214,724			$	1,005,526
Hedging financial assets			3,204				1,133
Financial assets at amortized cost (Note a)			93,016,497				91,048,373
Financial assets at FVOCI			6,805,358				4,666,976
Financial liabilities
Measured at FVTPL
Held for trading		$	3			$	—
Hedging financial liabilities			56				1,907
Financial liabilities at amortized cost (Note b)			63,014,547				69,231,194

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

Note b: The balances included short-term loans, trade notes and accounts payable, payables to related parties, partial other payables, customers’ deposits, bonds payable (including the current portion) and long-term loans (including the current portion).

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Financial Risk Management Objectives

The main financial instruments of the Company include investments in equity and debt instruments, trade notes and accounts receivable, trade notes and accounts payable, lease liabilities, loans and bonds payable. The Company’s Finance Department provides services to its business units, co-ordinates access to domestic and international capital markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk, and liquidity risk.

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company’s policies approved by the Board of Directors. Those derivatives are used to hedge the risks of exchange rate fluctuation arising from operating or investment activities. Compliance with policies and risk exposure limits is reviewed by the Company’s Finance Department on a continuous basis. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

Chunghwa reports the significant risk exposures and related action plans timely and actively to the audit committee and if needed to the Board of Directors.

a. Market risk

The Company is exposed to market risks of changes in foreign currency exchange rates and interest rates. The Company uses forward exchange contracts to hedge the exchange rate risk arising from assets and liabilities denominated in foreign currencies.

There were no changes to the Company’s exposure to market risks or the manner in which these risks are managed and measured.

1) Foreign currency risk

For details about the carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the balance sheet dates, please refer to Note 42 Significant Assets and Liabilities Denominated in Foreign Currencies.

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The carrying amounts of the Company’s derivatives with exchange rate risk exposures at the balance sheet dates were as follows:

		December 31
		2025				2024
Assets
USD		$	168			$	263
EUR			6,408				1,160
Liabilities
USD			3				—
EUR			56				1,907

Foreign currency sensitivity analysis

The Company is mainly exposed to the fluctuations of the currencies USD, EUR, SGD and RMB.

The following table details the Company’s sensitivity to a 5% increase and decrease in the functional currency against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible changes in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and forward exchange contracts. A positive number below indicates an increase in pre-tax profit or equity where the functional currency weakens 5% against the relevant currency.

		Year Ended December 31
		2025				2024
Profit or loss
Monetary assets and liabilities (a)
USD		$	119,427			$	87,301
EUR			(70,635	)			(49,111	)
SGD			33,692				(33,187	)
RMB			2,621				6,738
Derivatives (b)
USD			1,427				2,309
EUR			4,613				512
Equity
Derivatives (c)
EUR			7,380				17,070

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

b) This is mainly attributable to forward exchange contracts.

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

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

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2) Interest rate risk

The carrying amounts of the Company’s exposures to interest rates on financial assets and financial liabilities at the balance sheet dates were as follows:

		December 31
		2025				2024
Fair value interest rate risk
Financial assets		$	41,450,570			$	47,562,672
Financial liabilities			36,418,279				41,444,583
Cash flow interest rate risk
Financial assets			18,423,926				12,949,846
Financial liabilities			1,600,000				1,785,000

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 $42,060 thousand and $27,912 thousand for the years ended December 31, 2025 and 2024, respectively. This is mainly attributable to the Company’s exposure to floating interest rates on its financial assets, short-term and long-term loans.

3) Other price risk

The Company is exposed to equity price risks arising from holding other company’s equity. Equity investments are held for strategic rather than trading purposes. The management managed the risk through holding various risk portfolios. Further, the Company assigned finance and investment departments to monitor the price risk.

Equity price sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income would have increased/decreased by $57,083 thousand and $340,268 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the year ended December 31, 2025. If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income would have increased/decreased by $48,424 thousand and $233,349 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the year ended December 31, 2024.

b. Credit risk

Credit risk refers to the risk that a counterparty would default on its contractual obligations resulting in financial loss to the Company. The maximum credit exposure of the aforementioned financial instruments is equal to their carrying amounts recognized in the consolidated balance sheet as of the balance sheet date.

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The Company has large trade receivables outstanding with its customers. A substantial majority of the Company’s outstanding trade receivables are not covered by collateral or credit insurance. The Company has implemented ongoing measures including enhancing credit assessments and strengthening overall risk management to reduce its credit risk. While the Company has procedures to monitor and limit exposure to credit risk on trade receivables, there can be no assurance such procedures will effectively limit its credit risk and avoid losses. This risk is heightened during periods when economic conditions worsen. As the Company serves a large number of unrelated consumers, the concentration of credit risk was limited.

The Company mitigates its financial credit risk by selecting counterparties with investment grade credit ratings and by limiting the exposure to any individual counterparty. The Company regularly monitors and reviews market conditions, and adjusts the limit applied to counterparties according to their credit standing.

In accordance with the Company’s investment and risk management policies, counterparties for debt investments must be financial institutions with investment grade or higher, and thus there is no significant credit exposure resulting from such investments. The Company assesses whether there has been a significant increase in credit risk on debt instruments since initial recognition by reviewing changes in financial market conditions, and external credit ratings and material information of the issuers.

The Company assesses the 12-month expected credit loss and lifetime expected credit loss for debt instruments based on the probability of default and loss given default provided by external credit rating agencies.

c. Liquidity risk

The Company manages and maintains sufficient cash and cash equivalent position to support the operations and reduce the impact on fluctuation of cash flow.

1) Liquidity and interest risk tables

The following tables detailed the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company is required to pay.

December 31, 2025

		Weighted Average Effective Interest Rate (%)				Less than 1 Month				1-3 Months				3 Months to 1 Year				1-5 Years				More than 5 Years				Total
Non-derivative financial liabilities
Non-interest bearing			—			$	41,946,374			$	—			$	2,783,132			$	5,261,997			$	—			$	49,991,503
Floating interest rate instruments			2.10				3,352				5,600				25,200				1,625,200				—				1,659,352
Fixed interest rate instruments			0.73				225,491				178,495				2,096,214				22,675,050				1,001,667				26,176,917
						$	42,175,217			$	184,095			$	4,904,546			$	29,562,247			$	1,001,667			$	77,827,772

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		$	3,917,802			$	5,391,462			$	1,684,996			$	153,284			$	11,147,544

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December 31, 2024

		Weighted Average Effective Interest Rate (%)				Less than 1 Month				1-3 Months				3 Months to 1 Year				1-5 Years				More than 5 Years				Total
Non-derivative financial liabilities
Non-interest bearing			—			$	42,220,071			$	—			$	2,499,932			$	5,310,453			$	—			$	50,030,456
Floating interest rate instruments			2.08				103,653				5,794				79,384				1,691,150				—				1,879,981
Fixed interest rate instruments			0.54				78,746				45,166				8,968,938				17,248,299				4,719,401				31,060,550
						$	42,402,470			$	50,960			$	11,548,254			$	24,249,902			$	4,719,401			$	82,970,987

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

		Less than 1 Year				1-3 Years				3-5 Years				More than 5 Years				Total
Lease liabilities		$	3,586,029			$	5,255,191			$	2,142,230			$	164,061			$	11,147,511

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
December 31, 2025
Gross settled
Forward exchange contracts
Inflow		$	85,531			$	184,164			$	—			$	—			$	269,695
Outflow			85,422				177,756				—				—				263,178
		$	109			$	6,408			$	—			$	—			$	6,517
December 31, 2024
Gross settled
Forward exchange contracts
Inflow		$	46,142			$	350,466			$	—			$	—			$	396,608
Outflow			45,879				351,213				—				—				397,092
		$	263			$	(747	)		$	—			$	—			$	(484	)

2) Financing facilities

		December 31
		2025				2024
Unsecured bank loan facilities
Amount used		$	340,000			$	250,000
Amount unused			26,973,921				56,438,486
		$	27,313,921			$	56,688,486
Secured bank loan facilities
Amount used		$	1,600,000			$	1,600,000
Amount unused			15,000				15,000
		$	1,615,000			$	1,615,000

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38. RELATED PARTIES TRANSACTIONS

The ROC Government has significant equity interest in Chunghwa. Chunghwa provides fixed-line services, mobile services, internet and data and other services to the various departments and institutions of the ROC Government in the normal course of business and at arm’s-length prices. Except for those disclosed in other notes or this note, the transactions with the ROC government bodies have not been disclosed because the transactions are not individually or collectively significant. However, the related revenues and operating costs have been appropriately recorded.

a. The Company engages in business transactions with the following related parties:

Company		Relationship
Taiwan International Standard Electronics Co., Ltd.		Associate
So-net Entertainment Taiwan Limited		Associate
KKBOX Taiwan Co., Ltd.		Associate
KingwayTek Technology Co., Ltd.		Associate
Taiwan International Ports Logistics Corporation		Associate
Senao Networks, Inc.		Associate
EnGenius Networks Inc.		Subsidiary of the Company’s associate, SNI
Emplus Technologies, Inc.		Subsidiary of the Company’s associate, SNI
ST-2 Satellite Ventures Pte., Ltd.		Associate
CHT Infinity Singapore Pte., Ltd.		Associate
Viettel-CHT Co., Ltd.		Associate
PT. CHT Infinity Indonesia		Subsidiary of the Company’s associate, CISG
Click Force Co., Ltd.		Associate
Chunghwa PChome Fund I Co., Ltd.		Associate
Cornerstone Ventures Co., Ltd.		Associate
Next Commercial Bank Co., Ltd.		Associate
WiAdvance Technology Corporation		Associate
AgriTalk Technology Inc.		Associate
Imedtac Co., Ltd.		Associate
Baohwa Trust Co., Ltd.		Associate
Gather Works Co., Ltd.		Associate
Porrima Inc.		Associate
Taiwania Hive Technology Fund L.P.		Associate
Chunghwa Sochamp Technology 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
Ba Gua Liao Foundation		Substantial related party of SENAO
Cih Yue Charity Foundation		Substantial related party of SENAO
Tsann Kuen Enterprise Co., Ltd.		Substantial related party of SENAO
E-Life Mall Co., Ltd.		Substantial related party of SENAO
Engenius Technologies Co., Ltd.		Substantial related party of SENAO
Cheng Keng Investment Co., Ltd.		Substantial related party of SENAO
Cheng Feng Investment Co., Ltd.		Substantial related party of SENAO
All Oriented Investment Co., Ltd.		Substantial related party of SENAO
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
UDN Digital 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

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

1) Operating transactions

		Revenues
		Year Ended December 31
		2025				2024
Associates		$	330,200			$	401,964
Others			182,214				65,231
		$	512,414			$	467,195

		Operating Costs and Expenses
		Year Ended December 31
		2025				2024
Associates		$	834,909			$	1,108,287
Others			87,183				82,091
		$	922,092			$	1,190,378

2) Non-operating transactions

		Non-operating Income and Expenses
		Year Ended December 31
		2025				2024
Associates		$	43,929			$	40,193
Others			4,982				1,297
		$	48,911			$	41,490

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3) Receivables

		December 31
		2025				2024
Associates		$	184,493			$	183,753
Others			28,987				9,251
		$	213,480			$	193,004

4) Payables

		December 31
		2025				2024
Associates		$	163,125			$	476,069
Others			13,621				4,332
		$	176,746			$	480,401

5) Customers’ deposits

		December 31
		2025				2024
Associates		$	2,443			$	3,557

6) Acquisition of property, plant and equipment

		Year Ended December 31
		2025				2024
Associates		$	21,741			$	144,048

7) Acquisition of intangible assets

		Year Ended December 31
		2025				2024
Associates		$	—			$	429

8) Lease-in agreements

Chunghwa entered into a contract with ST-2 Satellite Ventures Pte., Ltd. on March 12, 2010 to lease capacity on the ST-2 satellite. This lease term is for 15 years which should start from the official operation of ST-2 satellite and the total contract value is approximately $6,000,000 thousand (SGD 260,723 thousand), including a prepayment of $3,067,711 thousand at the inception of the lease, and the rest of amount should be paid annually when ST-2 satellite starts its official operation. ST-2 satellite was launched in May 2011 and began its official operation in August 2011. As ST-2 satellite is in good operating condition, the useful life is extended for another 3 years and 3 months after evaluation in 2021. The Board of Directors of Chunghwa approved to extend the lease period accordingly with the original contract terms in December 2021; therefore, Chunghwa acquired right-of-use asset of $1,124,780 thousand from the aforementioned lease extension.

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

		December 31
		2025				2024
Lease liabilities - current		$	297,328			$	204,393
Lease liabilities - noncurrent			1,191,341				1,463,029
		$	1,488,669			$	1,667,422

The interest expense recognized for the aforementioned lease liabilities for the years ended December 31, 2025 and 2024 were $6,630 thousand and $7,478 thousand, respectively.

9) Others

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

		December 31
		2025				2024
Bank deposits and other financial assets		$	3,237,633			$	2,708,878

The interest income recognized for the aforementioned bank deposits and other financial assets for the years ended December 31, 2025 and 2024 were $49,461 thousand and $24,717 thousand, respectively.

c. Compensation of key management personnel

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

		Year Ended December 31
		2025				2024
Short-term employee benefits		$	437,623			$	368,646
Post-employment benefits			14,753				8,986
Share-based payment			1,022				920
		$	453,398			$	378,552

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

39. PLEDGED ASSETS

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

		December 31
		2025				2024
Property, plant and equipment		$	2,409,806			$	2,439,320
Land held under development (included in inventories)			1,998,733				1,998,733
Restricted assets (included in other assets - others)		$	1,306,353			$	1,189,118
		$	5,714,892			$	5,627,171

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40. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Except for those disclosed in other notes, the Company’s significant commitments and contingent liabilities as of December 31, 2025 were as follows:

a. Acquisitions of property, plant and equipment of $21,660,215 thousand.

b. Acquisitions of telecommunications-related inventory of $8,020,568 thousand.

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

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

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

f. Chunghwa signed a contract, the ST-2 Satellite Succession Plan, with Singapore Telecommunications Limited, for a total transaction price of EUR 177,000 thousand and SGD 51,000 thousand; as of December 31, 2025, Chunghwa had paid the amount of EUR 117,705 thousand. Chunghwa signed a contract for Astranis block 3 Satellite with Astranis Space Technologies Corp. for a total transaction price of USD 115,000 thousand; as of December 31, 2025, Chunghwa had paid the amount of USD 17,080 thousand. The aforementioned amounts are classified as prepayments.

g. The Company has signed the house and land presale contracts amounting to $7,691,358 thousand and has received $1,227,575 thousand in accordance with the contracts (classified as contract liabilities).

h. Chunghwa’s Board of Directors approved an investment in Cultural Content Industry Fund in February 2024. The investment amount is capped at $1,200,000 thousand. Chunghwa and CDCC Capital invested a total of $650,000 thousand in December 2025 (classified as other assets - prepayments for investments).

i. Chunghwa entered into a long-term energy purchase agreement with the supplier. The relative fulfillment period, quantity and price are specified in the agreement.

41. SIGNIFICANT SUBSEQUENT EVENTS

a. CHPT issued its first 3-year unsecured convertible corporate bond at the amount of $2,568,532 thousand in January 2026.

b. On February 25, 2026, the Board of Directors of CHIEF resolved to repurchase 1,000 thousand treasury shares for the purpose of transferring shares to the employees. The repurchase price range is between $280 and $470. When CHIEF’s stock price falls below the set floor price, CHIEF will continue to execute the repurchase plan. CHIEF expects to repurchase for the period from February 26, 2026 to April 25, 2026.

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42. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information summarizes the disclosure of foreign currencies other than the functional currency of Chunghwa and its subsidiaries. The following exchange rates are the exchange rates used to translate to the presentation currency of the consolidated financial statements, which is the NTD:

		December 31, 2025
		Foreign Currencies (Thousands)				Exchange Rate				New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD		$	126,702				31.43			$	3,982,241
EUR			1,252				36.90				46,193
SGD			91,411				24.45				2,235,002
RMB			21,710				4.496				97,607
Non-monetary items
Investments accounted for using equity method
USD			7,447				31.43				234,057
SGD			14,091				24.45				344,530
VND			484,883,118				0.0012				581,860
Liabilities denominated in foreign currencies
Monetary items
USD			50,706				31.43				1,593,700
EUR			39,536				36.90				1,458,887
SGD			63,851				24.45				1,561,165
RMB			10,048				4.496				45,178

		December 31, 2024
		Foreign Currencies (Thousands)				Exchange Rate				New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD		$	90,344				32.79			$	2,961,914
EUR			1,663				34.14				56,783
SGD			44,547				24.13				1,074,925
RMB			39,339				4.478				176,160
Non-monetary items
Investments accounted for using equity method
USD			8,424				32.79				276,180
SGD			12,991				24.13				313,467
VND			451,398,010				0.0013				573,275
Liabilities denominated in foreign currencies
Monetary items
USD		$	37,087				32.79			$	1,215,887
EUR			30,433				34.14				1,038,994
SGD			72,054				24.13				1,738,668
RMB			9,244				4.478				41,394

The unrealized foreign currency exchange gains and losses were loss of $57,167 thousand and gain of $19,319 thousand for the years ended December 31, 2025 and 2024, respectively. Due to the various foreign currency transactions and the functional currency of each individual entity of the Company, foreign exchange gains and losses cannot be disclosed by the respective significant foreign currency.

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43. ADDITIONAL DISCLOSURES

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

a. Financing provided: None.

b. Endorsement/guarantee provided: Please see Table 1.

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

d. Total purchases from or sales to related parties amounting to at least $100 million or 20% of the paid-in capital: Please see Table 3.

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

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

g. Information on investments in Mainland China:

1) The name of the investee in Mainland China, its main businesses and products, paid-in capital, method of investment, information on inflow or outflow of capital, ownership percentage, net income (loss) of the investee, share of profit (loss) of the investee, ending balance, amount received as dividends from the investee, and the limit on the amount of investment in Mainland China: Please see Table 6.

2) Significant transactions with the investee in Mainland China occurring directly or indirectly through a third region, and the prices, terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in Mainland China on financial reports: None.

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

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44. SEGMENT INFORMATION

The Company’s reportable segments are “Consumer Business”, “Enterprise Business”, “International Business” and “Others”, which are managed separately because each segment represents a strategic business unit that serves different customers. Segment information is provided to the chief operating decision maker who allocates resources and assesses segment performance. The Company’s measure of segment performance is mainly based on revenues and income before income tax.

Some operating segments have been aggregated into a single operating segment taking into account the following factors: (a) the type or class of customer for the telecommunications products and services are similar; (b) the nature of the telecommunications products and services are similar; and (c) the methods used to provide the services to the customers are similar.

The accounting policies of the operating segments are the same as those described in Note 3.

Segment Revenues and Operating Results

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

		Consumer Business				Enterprise Business				International Business				Others				Total
Year ended December 31, 2025
Revenues
From external customers		$	143,365,246			$	77,236,114			$	9,516,684			$	5,996,365			$	236,114,409
Intersegment revenues			2,941,328				1,030,139				954,903				379,559				5,305,929
Segment revenues		$	146,306,574			$	78,266,253			$	10,471,587			$	6,375,924				241,420,338
Intersegment elimination																			(5,305,929	)
Consolidated revenues																		$	236,114,409
Segment income before income tax		$	31,310,092			$	12,509,983			$	2,218,481			$	4,231,044			$	50,269,600
Year ended December 31, 2024
Revenues
From external customers		$	139,982,387			$	75,337,783			$	9,919,287			$	4,728,835			$	229,968,292
Intersegment revenues			2,764,922				884,308				1,107,156				376,459				5,132,845
Segment revenues		$	142,747,309			$	76,222,091			$	11,026,443			$	5,105,294				235,101,137
Intersegment elimination																			(5,132,845	)
Consolidated revenues																		$	229,968,292
Segment income before income tax		$	29,758,625			$	12,787,210			$	2,383,113			$	2,824,841			$	47,753,789

Other Segment Information

Other information reviewed by the chief operating decision maker or regularly provided to the chief operating decision maker was as follows:

		Consumer Business				Enterprise Business				International Business				Others				Total
Year ended December 31, 2025
Share of profits (loss) of associates and joint ventures accounted for using equity method		$	(378,904	)		$	49,573			$	295,064			$	98,199			$	63,932
Interest income		$	25,782			$	59,664			$	53,374			$	765,238			$	904,058
Interest expenses		$	219,534			$	106,984			$	8,366			$	35,483			$	370,367
Depreciation and amortization		$	28,580,762			$	10,393,048			$	1,464,886			$	721,830			$	41,160,526

(Continued)

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		Consumer Business				Enterprise Business				International Business				Others				Total
Impairment loss on property, plant and equipment		$	90,157			$	22,040			$	22			$	—			$	112,219
Reversal of impairment loss on investment properties		$	—			$	—			$	—			$	28,354			$	28,354
Year ended December 31, 2024
Share of profits (loss) of associates and joint ventures accounted for using equity method		$	(309,622	)		$	56,013			$	277,106			$	130,690			$	154,187
Interest income		$	28,783			$	56,663			$	57,673			$	637,849			$	780,968
Interest expenses		$	199,507			$	97,964			$	7,868			$	34,003			$	339,342
Depreciation and amortization		$	28,420,620			$	9,943,015			$	1,421,749			$	739,072			$	40,524,456
Reversal of impairment loss on investment properties		$	—			$	—			$	—			$	139,200			$	139,200

(Concluded)

Main Products and Service Revenues

		Year Ended December 31
		2025				2024
Consumer Business
Mobile services		$	58,918,554			$	57,067,032
Fixed-line services			43,078,322				42,871,664
Sales			38,502,884				37,231,215
Others			2,865,486				2,812,476
			143,365,246				139,982,387
Enterprise Business
Fixed-line services			33,588,512				33,757,499
ICT business			30,360,102				27,791,544
Mobile services			9,530,136				9,151,593
Others			3,757,364				4,637,147
			77,236,114				75,337,783
International Business
Fixed-line services			4,781,556				5,086,694
ICT business			4,105,759				4,016,396
Others			629,369				816,197
			9,516,684				9,919,287
Others
Sales			5,066,390				3,803,048
Others			929,975				925,787
			5,996,365				4,728,835
		$	236,114,409			$	229,968,292

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Geographic Information

The users of the Company’s services are mainly from Taiwan, ROC. The revenues it derived outside Taiwan are mainly revenues from international long distance telephone and leased line services. The geographic information for revenues was as follows:

		Year Ended December 31
		2025				2024
Taiwan, ROC		$	226,132,677			$	220,398,322
Overseas			9,981,732				9,569,970
		$	236,114,409			$	229,968,292

The Company has long-lived assets in U.S., Singapore, Hong Kong, China, Vietnam, Japan, Thailand, Germany and Malaysia for $2,578,188 thousand and $2,947,697 thousand as of December 31, 2025 and 2024, respectively, in the aforementioned areas, the other long-lived assets are located in Taiwan, ROC.

Major Customers

For the years ended December 31, 2025 and 2024, the Company did not have any single customer whose revenue exceeded 10% of the total revenues.

- 104 -

TABLE 1

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

YEAR ENDED DECEMBER 31, 2025

(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)
1		Senao International Co., Ltd.		Aval Technologies Co., Ltd.		b		$	644,013			$	300,000			$	300,000			$	300,000			$	—				4.66			$	3,220,063			Yes		No		No		Notes 3 and 4
				Wiin Technology Co., Ltd.		b			644,013				200,000				200,000				200,000				—				3.11				3,220,063			Yes		No		No		Notes 3 and 4

Note 1: Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as follows:

a. “0” for the Company.

b. Subsidiaries are numbered from “1”.

Note 2: Relationships between the endorsement/guarantee provider and the guaranteed party:

a. A company with which it does business.

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

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

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

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

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

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

Note 3: The limits on endorsement or guarantee amount provided to each guaranteed party is up to 10% of the net assets value of the latest financial statements of Senao International Co., Ltd.

Note 4: The total amount of endorsement or guarantee that the Company is allowed to provide is up to 50% of the net assets value of the latest financial statements of Senao International Co., Ltd.

- 105 -

TABLE 2

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Held Company Name		Marketable Securities Type and Name		Relationship with the Company				Financial Statement Account		December 31, 2025																Note
										Shares (Thousands/ Thousand Units)				Carrying Value (Note 1)				Percentage of Ownership				Fair Value
Chunghwa Telecom Co., Ltd.		Stocks
		Taipei Financial Center Corp.			—			Financial assets at FVOCI - noncurrent			172,927			$	4,352,638				12			$	4,352,638				—
		iKala Global Online Corp.			—			Financial assets at FVOCI - noncurrent			112,500				313,036				—				313,036				Note 4
		KKCompany Technologies Inc.			—			Financial assets at FVOCI - noncurrent			12,039				1,029,327				8				1,029,327				—
		4 Gamers Entertainment Inc.			—			Financial assets at FVOCI - noncurrent			136				110,936				—				110,936				Note 4
		Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II)			—			Financial assets at FVOCI - noncurrent			5,252				19,183				17				19,183				—
		Taiwan mobile payment Co., Ltd.			—			Financial assets at FVOCI- noncurrent			1,200				4,749				2				4,749				—
		Innovation Works Limited			—			Financial assets at FVOCI- noncurrent			1,000				6,908				—				6,908				Note 4
		RPTI Intergroup International Ltd.			—			Financial assets at FVOCI- noncurrent			4,765				—				10				—				—
		Global Mobile Corp.			—			Financial assets at FVOCI- noncurrent			7,617				—				3				—				—
		Taiwan Smart Electricity & Energy Co., Ltd.			—			Financial assets at FVOCI- noncurrent			19,688				177,939				13				177,939				—
		Cornerstone Ventures Co., Ltd.			—			Financial assets at FVOCI- noncurrent			25				186				5				186				—
		Da Da Broadband Ltd.			—			Financial assets at FVOCI- noncurrent			4,800				288,000				8				288,000				—
		Manuscript Inc.			—			Financial assets at FVOCI- noncurrent			13				38,910				8				38,910				—
		Taiwania Capital Buffalo Fund Co., Ltd.			—			Financial assets at FVTPL - noncurrent			555,600				400,115				—				400,115				Note 4
		TOP TAIWAN XIV VENTURE CAPITAL CO., LTD.			—			Financial assets at FVTPL - noncurrent			20,000				176,929				9				176,929				—
		Innovation Works Development Fund, L.P.			—			Financial assets at FVTPL - noncurrent			—				11,080				4				11,080				—
		Limited partnership
		Taiwania Capital Buffalo Fund VI, L.P.			—			Financial assets at FVTPL - noncurrent			—				349,962				10				349,962				—
		TRF 1 L.P.			—			Financial assets at FVTPL - noncurrent			—				122,150				10				122,150				—
		Corporate bonds
		Fubon Life Insurance Co., Ltd.			—			Financial assets at amortized cost			2				2,000,000				—				2,010,142				Note 3
Senao International Co., Ltd.		Stocks
		N.T.U. Innovation Incubation Corporation			—			Financial assets at FVOCI - noncurrent			1,200				9,753				9				9,753				—
CHIEF Telecom Inc.		Stocks
		WT Microelectronics Co., Ltd.			—			Financial assets at FVOCI - current			361				18,555				—				18,555				Notes 2 and 4
Chunghwa Investment Co., Ltd.		Stocks
		PChome Online Inc.			—			Financial assets at FVOCI - noncurrent			1,875				59,821				1				59,821				Note 2
		Tatung Technology Inc.			—			Financial assets at FVOCI - noncurrent			4,571				33,213				11				33,213				—
		Bossdom Digiinnovation Co., Ltd.			—			Financial assets at FVOCI - noncurrent			2,309				18,173				7				18,173				Note 2
		KEYXENTIC INC.			—			Financial assets at FVOCI - noncurrent			600				26,709				9				26,709				—

(Continued)

- 106 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Held Company Name		Marketable Securities Type and Name		Relationship with the Company		Financial Statement Account		December 31, 2025																Note
								Shares (Thousands/ Thousand Units)				Carrying Value (Note 1)				Percentage of Ownership				Fair Value
		ioNetworks Inc.		—		Financial assets at FVOCI - noncurrent			107			$	11,491				—			$	11,491			Note 4
		iSing99 Inc.		—		Financial assets at FVOCI - noncurrent			10,000				—				7				—			—
		Powtec ElectroChemical Corporation		—		Financial assets at FVOCI - noncurrent			20,000				—				2				—			—
		Horng Yu Electric Co., Ltd.		—		Financial assets at FVOCI - noncurrent			400				194,000				1				194,000			Note 2
		Navstar Electronics Co., Ltd.		—		Financial assets at FVTPL - noncurrent			3,000				39,303				—				39,303			Note 4
		Limited partnership
		Taiwania Capital Buffalo Fund V, L.P.		—		Financial assets at FVTPL - noncurrent			—				27,544				3				27,544			—
TestPro Investment Co., Ltd.		Stocks
		Yokowo Co., Ltd		—		Financial assets at FVOCI - noncurrent			52				23,431				—				23,431			Note 2
CHT Security Co., Ltd.		Stocks
		TXOne Networks Inc.		—		Financial assets at FVTPL - noncurrent			91				14,572				—				14,572			Note 4
		CyCraft Technology Corporation		—		Financial assets at FVOCI - noncurrent			912				66,478				3				66,478			—
		Fubon Financial Holding Co., Ltd.		—		Financial assets at FVOCI - noncurrent			36				1,922				—				1,922			Notes 2 and 4
		Corporate bonds
		Mercuries Life Insurance Co., Ltd.		—		Financial assets at amortized cost			—				20,300				—				20,002			Note 3

Note 1: Except debt instrument investments are shown at amortized cost, the remaining are shown at carrying amounts with fair value adjustments.

Note 2: Fair value was based on the closing price on the last trading day of the reporting period in the stock market.

Note 3: Fair value was based on the weighted average price per 100 units of par value for bonds on the last trading day of the reporting period in the over-the-counter market.

Note 4: Preferred stocks.

(Concluded)

- 107 -

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

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Company Name		Related Party		Nature of Relationship		Transaction Details												Abnormal Transaction (Note 3)						Notes / Accounts Payable or Receivable
						Purchases/Sales (Note 1)		Amount (Note 4)				% to Total				Payment Terms		Unit Price				Payment Terms		Ending Balance (Notes 2 and 4)				% to Total
Chunghwa Telecom Co., Ltd.		Senao International Co., Ltd.		Subsidiary		Sales		$	4,934,806				2			30 days		$	—			—		$	220,475				1
						Purchase			1,356,587				1			30~90 days			—			—			(1,062,359	)			(7	)
		CHIEF Telecom Inc.		Subsidiary		Sales			518,373				—			30 days			—			—			69,415				—
						Purchase			135,038				—			30 days			—			—			(17,003	)			—
		CHYP Multimedia Marketing & Communications Co., Ltd.		Subsidiary		Purchase			192,787				—			30 days			—			—			(62,483	)			—
		Chunghwa System Integration Co., Ltd.		Subsidiary		Purchase			1,225,190				1			30 days			—			—			(506,721	)			(3	)
		Honghwa International Co., Ltd.		Subsidiary		Sales			220,239				—			30~60 days			—			—			3,708				—
						Purchase			7,582,106				6			30~60 days			—			—			(1,708,370	)			(11	)
		Donghwa Telecom Co., Ltd.		Subsidiary		Sales			192,820				—			30 days			—			—			56,577				—
						Purchase			528,923				—			90 days			—			—			(116,562	)			(1	)
		Chunghwa Telecom Japan Co., Ltd.		Subsidiary		Purchase			128,268				—			30~90 days			—			—			(19,856	)			—
		Chunghwa Telecom Singapore Pte., Ltd.		Subsidiary		Purchase			187,219				—			30 days			—			—			(174,695	)			(1	)
		Chunghwa Telecom Global, Inc.		Subsidiary		Sales			142,763				—			30~90 days			—			—			27,321				—
						Purchase			289,110				—			90 days			—			—			(67,502	)			—
		CHT Security Co., Ltd.		Subsidiary		Purchase			322,151				—			30 days			—			—			(33,449	)			—
		International Integrated Systems, Inc.		Subsidiary		Purchase			711,742				1			30 days			—			—			(109,050	)			(1	)
		Senyoung Insurance Agent Co., Ltd.		Subsidiary		Sales			161,981				—			30 days			—			—			45,438				—
		Taiwan International Standard Electronics Co., Ltd.		Associate		Purchase			255,021				—			30~90 days			—			—			(8,645	)			—
		WiAdvance Technology Corporation		Associate		Purchase			162,634				—			60 days			—			—			(42,280	)			—
Senao International Co., Ltd.		Aval Technologies Co., Ltd.		Subsidiary		Purchase			264,107				1			30 days			—			—			(7,774	)			—
		Senyoung Insurance Agent Co., Ltd.		Subsidiary		Sales			108,732				—			60 days			—			—			28,390				1
CHIEF Telecom Inc.		So-net Entertainment Taiwan Limited		Associate		Sales			139,066				4			30 days			—			—			10,919				3
Chunghwa Precision Test Tech. Co., Ltd.		Su Zhou Precision Test Tech. Ltd.		Subsidiary		Sales			170,220				4			90 days			—			—			72,740				11

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.

- 108 -

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

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Company Name		Related Party		Nature of Relationship		Ending Balance				Turnover Rate (Note 1)		Overdue								Amounts Received in Subsequent Period				Allowance for Bad Debts
												Amounts				Action Taken
Chunghwa Telecom Co., Ltd.		Senao International Co., Ltd.		Subsidiary		$	397,076 (Note 2	)		10.88		$	—				—			$	380,959			$	—
Senao International Co., Ltd.		Chunghwa Telecom Co., Ltd.		Parent company			1,215,809 (Note 2	)		8.12			—				—				212,480				—
Chunghwa System Integration Co., Ltd.		Chunghwa Telecom Co., Ltd.		Parent company			506,721 (Note 2	)		4.54			—				—				292,955				—
Honghwa International Co., Ltd.		Chunghwa Telecom Co., Ltd.		Parent company			1,735,718 (Note 2	)		4.97			—				—				616,172				—
International Integrated Systems, Inc.		Chunghwa Telecom Co., Ltd.		Parent company			109,050 (Note 2	)		7.66			—				—				72,303				—
Donghwa Telecom Co., Ltd.		Chunghwa Telecom Co., Ltd.		Parent company			116,562 (Note 2	)		5.88			—				—				65,865				—
Chunghwa Telecom Singapore Pte., Ltd.		Chunghwa Telecom Co., Ltd.		Parent company			174,695 (Note 2	)		7.81			—				—				162,526				—
Chunghwa Precision Test Tech. Co., Ltd.		Su Zhou Precision Test Tech. Ltd.		Subsidiary			72,740 (Note 2	)		1.60			—				—				15,284				—

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.

- 109 -

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)

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Investor Company		Investee Company		Location		Main Businesses and Products		Original Investment Amount								Balance as of December 31, 2025												Net Income (Loss) of the Investee				Recognized Gain (Loss) (Notes 1 and 2)				Note
								December 31, 2025				December 31, 2024				Shares (Thousands)				Percentage of Ownership (%)				Carrying Value
Chunghwa Telecom Co., Ltd.		Senao International Co., Ltd.		Taiwan		Handset and peripherals retailer; sales of CHT mobile phone plans as an agent		$	1,065,813			$	1,065,813				71,773				28			$	1,745,625			$	445,292			$	117,446			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				3,830,021				18,892				10,771			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				990,245				101,622				101,622			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				1,349,725				266,078				266,082			Subsidiary (Note 5)
		Chunghwa System Integration Co., Ltd.		Taiwan		Providing system integration services and telecommunications equipment			838,506				838,506				60,000				100				689,976				38,140				33,678			Subsidiary (Note 5)
		CHIEF Telecom Inc.		Taiwan		Network integration, internet data center (“IDC”), communications integration and cloud application services			459,652				459,652				43,368				56				2,210,297				1,227,441				699,241			Subsidiary (Note 5)
		Chunghwa Investment Co., Ltd.		Taiwan		Investment			639,559				639,559				68,085				89				3,736,466				311,080				277,049			Subsidiary (Note 5)
		Prime Asia Investments Group Ltd.		British Virgin Islands		Investment			385,274				385,274				1				100				180,965				(3,408	)			(3,408	)		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				725,618				365,125				362,788			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				195,379				7,096				5,315			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				76,025				5,113				5,113			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				919,632				98,703				98,703			Subsidiary (Note 5)
		CHT Security Co., Ltd.		Taiwan		Computing equipment installation, wholesale of computing and business machinery equipment and software, management consulting services, data processing services, digital information supply services and internet identify services			230,580				230,580				23,058				57				1,106,750				436,927				291,121			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				163,667				7,293				7,293			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				164,226				28,577				16,015			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				62				218,164				68,355				47,568			Subsidiary (Note 5)
		Smartfun Digital Co., Ltd.		Taiwan		Providing diversified family education digital services			65,000				65,000				6,500				65				86,103				21,604				13,142			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				358,331				101,299				93,387			Subsidiary (Note 5)
		International Integrated Systems, Inc.		Taiwan		IT solution provider, IT application consultation, system integration and package solution			503,369				507,363				35,920				45				764,721				152,442				69,391			Subsidiary (Note 5)
		Chunghwa Digital Cultural and Creative Capital Co., Ltd		Taiwan		Investment and management consulting			50,000				50,000				5,000				100				28,300				(10,715	)			(10,900	)		Subsidiary (Note 5)
		Chunghwa Telecom Europe GmbH		Germany		International private leased circuit, internet services, transit services and ICT services			122,675				122,675				3,500				100				114,274				(11,360	)			(11,360	)		Subsidiary (Note 5)
		CHT InventAI Co., Ltd.		Taiwan		AI software, system development, application services, and enterprise consulting			120,000				—				12,000				100				119,237				(763	)			(763	)		Subsidiary (Note 5)

(Continued)

- 110 -

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)

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Investor Company		Investee Company		Location		Main Businesses and Products		Original Investment Amount								Balance as of December 31, 2025										Net Income (Loss) of the Investee				Recognized Gain (Loss) (Notes 1 and 2)				Note
								December 31, 2025				December 31, 2024				Shares (Thousands)				Percentage of Ownership (%)		Carrying Value
		Viettel-CHT Co., Ltd.		Vietnam		IDC services		$	293,582			$	288,327				—			30		$	581,860			$	433,687			$	130,106			Associate
		Taiwan International Standard Electronics Co., Ltd.		Taiwan		Manufacturing, selling, designing, and maintaining of telecommunications systems and equipment			164,000				164,000				1,760			40			378,089				260,582				112,765			Associate
		KKBOX Taiwan Co., Ltd.		Taiwan		Providing of music on-line, software, electronic information, and advertisement services			—				67,025				—			—			—				(81,804	)			(24,541	)		Associate (Note 8)
		So-net Entertainment Taiwan Limited		Taiwan		Online service and sale of computer hardware			120,008				120,008				9,429			30			126,836				(221,199	)			(66,360	)		Associate
		KingwayTek Technology Co., Ltd.		Taiwan		Design and sale of digital map, technical support for computer peripherals device, design and development of system programming projects			66,684				66,684				12,720			23			265,349				85,048				19,588			Associate
		Taiwan International Ports Logistics Corporation		Taiwan		Import and export storage, logistic warehouse, and ocean shipping service			80,000				80,000				8,000			27			135,189				155,053				41,353			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			252,258				(734	)			(367	)		Associate
		Cornerstone Ventures Co., Ltd.		Taiwan		Investment, venture capital, investment advisor, management consultant and other consultancy service			—				4,900				—			—			—				(1	)			—			Associate (Note 6)
		Next Commercial Bank Co., Ltd.		Taiwan		Online banking business			5,733,847				5,733,847				462,643			46			3,591,348				(856,008	)			(389,810	)		Associate
		Chunghwa SEA Holdings		Taiwan		Investment business			10,200				10,200				1,020			51			9,083				(329	)			(168	)		Joint venture
		WiAdvance Technology Corporation		Taiwan		Software solution integration			273,800				273,800				3,700			16			260,570				(45,554	)			(12,870	)		Associate
		Taiwania Hive Technology Fund L.P.		Cayman Islands		Investment business			288,405				288,405				—			40			234,057				(49,829	)			(20,141	)		Associate
		Chunghwa Sochamp Technology Inc.		Taiwan		Design, development and production of Automatic License Plate Recognition software and hardware			20,400				20,400				2,040			37			—				(11,414	)			—			Associate
Senao International Co., Ltd.		Senao Networks, Inc.		Taiwan		Telecommunication facilities manufactures and sales			578,186				578,186				19,582			33			2,023,706				307,052				101,807			Associate
		Youth Co., Ltd.		Taiwan		Sale of information and communication technologies products			427,850				427,850				14,752			96			153,943				835				(7,455	)		Subsidiary (Note 5)
		Aval Technologies Co., Ltd.		Taiwan		Sale of information and communication technologies products			89,550				89,550				13,740			100			155,331				12,611				12,610			Subsidiary (Note 5)
		Senyoung Insurance Agent Co., Ltd.		Taiwan		Property and liability insurance agency			59,000				59,000				8,909			100			141,343				34,466				34,466			Subsidiary (Note 5)
CHIEF Telecom Inc.		Unigate Telecom Inc.		Taiwan		Telecommunications and internet service			2,000				2,000				200			100			1,532				86				86			Subsidiary (Note 5)
		Chief International Corp.		Samoa Islands		Telecommunications and internet service			6,068				6,068				200			100			45,836				4,616				4,616			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			344,530				486,684				185,574			Associate
		CHT Infinity Singapore Pte., Ltd.		Singapore		Investment business			55,720				55,720				2,000			40			53,947				(768	)			(307	)		Associate
		Chunghwa Telecom Malaysia SDN. BHD.		Malaysia		International private leased circuit, IP VPN service, and ICT services			45,540				—				6,219			100			44,328				(2,056	)			(2,056	)		Subsidiary (Note 5)
Chunghwa Investment Co., Ltd.		Chunghwa Precision Test Tech. Co., Ltd.		Taiwan		Production and sale of semiconductor testing components and printed circuit board			175,951				178,608				11,063			34			2,959,109				997,181				340,890			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			106,471				1,227,441				35,991			Associate (Note 5)
		Senao International Co., Ltd.		Taiwan		Selling and maintaining mobile phones and its peripheral products			49,731				49,731				1,001			—			45,706				445,292				1,726			Associate (Note 5)
		AgriTalk Technology Inc.		Taiwan		Providing smart agricultural solutions, scientific agricultural product, biological inhibitor, and biochips			—				65,175				—			—			—				(12,983	)			(3,544	)		Associate (Note 7)

(Continued)

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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)

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Investor Company		Investee Company		Location		Main Businesses and Products		Original Investment Amount								Balance as of December 31, 2025												Net Income (Loss) of the Investee				Recognized Gain (Loss) (Notes 1 and 2)				Note
								December 31, 2025				December 31, 2024				Shares (Thousands)				Percentage of Ownership (%)				Carrying Value
		Imedtac Co., Ltd.		Taiwan		Providing medical AIoT solution, biomedical engineering services, and sales of medical device as an agent		$	91,381			$	91,381				2,559				10			$	53,608			$	(20,658	)		$	(3,204	)		Associate
		Porrima Inc.		Taiwan		Designing and selling zero-emission ships			80,000				80,000				8,000				9				73,731				(51,738	)			(5,174	)		Associate
		Gather Works Co., Ltd.		Taiwan		Film and drama IP development, copyright management and copyright sales			14,400				—				1,440				48				12,123				(4,744	)			(2,277	)		Associate
Chunghwa Precision Test Tech. Co., Ltd.		Chunghwa Precision Test Tech USA Corporation		United States		Design and after-sale services of semiconductor testing components and printed circuit board			74,192				74,192				2,600				100				107,069				1,783				1,819			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				2,220				92				92			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				133,449				(15,971	)			(9,454	)		Subsidiary (Note 5)
		TestPro Investment Co., Ltd.		Taiwan		Investment			195,000				135,000				19,500				100				84,812				(13,200	)			(11,489	)		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				17,727				(24,644	)			(13,370	)		Subsidiary (Note 5)
Prime Asia Investments Group, Ltd.		Chunghwa Hsingta Co., Ltd.		Hong Kong		Investment			375,274				375,274				1				100				180,965				(3,408	)			(3,408	)		Subsidiary (Note 5)
Youth Co., Ltd.		ISPOT Co., Ltd.		Taiwan		Sale of information and communication technologies products			53,021				53,021				—				100				13,970				537				521			Subsidiary (Note 5)
Aval Technologies Co., Ltd.		Wiin Technology Co., Ltd.		Taiwan		Sale of information and communication technologies products			29,550				29,550				5,029				100				62,124				9,524				9,524			Subsidiary (Note 5)
CHYP Multimedia Marketing & Communications Co., Ltd		Click Force Marketing Company		Taiwan		Advertisement services			44,607				44,607				2,450				49				41,579				(9,989	)			(4,800	)		Associate
International Integrated Systems, Inc.		Unitronics Technology Corp.		Taiwan		Development and maintenance of information system			55,610				55,610				5,067				100				60,904				(1,209	)			(1,209	)		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				18,269				25,208				6,302			Associate

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

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

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

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

Note 5: The amount was eliminated upon consolidation.

Note 6: CVC was approved to end and dissolve its business in November 2024, and CVC completed its liquidation in August 2025.

Note 7: The Company disposed of all its shares of ATT in October 2025.

Note 8: The Company disposed of all its shares of KKBOXTW in November 2025.

(Concluded)

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TABLE 6

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

INVESTMENTS IN MAINLAND CHINA

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Investee		Main Businesses and Products		Total Amount of Paid-in Capital				Investment Type (Note 1)				Accumulated Outflow of Investment from Taiwan  as of January 1, 2025				Investment Flows								Accumulated Outflow of Investment from Taiwan as of December 31, 2025				Net Income (Loss) of the Investee				% Ownership of Direct or Indirect Investment				Investment Gain (Loss) (Note 2)				Carrying Value as of December 31, 2025				Accumulated Inward Remittance of Earnings as of December 31, 2025				Note
																Outflow				Inflow
Chunghwa Telecom (China) Co., Ltd.		Integrated information and communication solution services for enterprise clients, and intelligent energy network service		$	177,176				2			$	177,176			$	—			$	—			$	177,176			$	—				100			$	—			$	—			$	—			Notes 6 and 10
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 10
Shanghai Taihua Electronic Technology Limited		Design of printed circuit board and related consultation service			51,233				2				51,233				—				—				51,233				611				100				611				9,732				—			Notes 8 and 10
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				(16,690	)			100				(16,690	)			138,446				—			Notes 8 and 10
Shanghai Chief Telecom Co., Ltd.		Telecommunications and internet service			10,150				1				4,973				—				—				4,973				5,851				49				2,867				8,662				10,194			Notes 9 and 10

Investor		Accumulated Investment in Mainland China as of December 31, 2025				Investment Amounts Authorized by Investment Commission, MOEA				Upper Limit on Investment Stipulated by Investment Commission, MOEA
Chunghwa Telecom Co., Ltd. (Note 3)		$	319,233			$	319,233			$	240,474,045
Chunghwa Precision Test Tech. Co., Ltd. and its subsidiaries (Note 4)			170,432				216,185				5,268,256
CHIEF Telecom Inc. and its subsidiaries (Note 5)			4,973				4,973				2,184,159

Note 1: Investments are divided into three categories as follows:

a. Direct investment.

b. Investments through a holding company registered in a third region.

c. Others.

Note 2: The amounts were calculated based on the investee’s audited 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: Shanghai Chief Telecom Co., Ltd. was a reinvestment through CHIEF Telecom Inc.

Note 10: The amount was eliminated upon consolidation.

- 113 -

TABLE 7

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS

YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

Year		No. (Note 1)				Company Name		Related Party		Nature of Relationship (Note 2)		Transaction Details
												Financial Statement Account		Amount (Note 5)				Payment Terms (Note 3)				% to Total Sales or Assets (Note 4)
2025			0			Chunghwa Telecom Co., Ltd.		Senao International Co., Ltd.		a		Accounts receivable		$	220,475				—				—
												Accrued custodial receipts			176,601				—				—
												Accounts payable			1,062,359				—				—
												Amounts collected for others			153,450				—				—
												Revenues			4,934,806				—				2
												Operating costs and expenses			1,356,587				—				1
								CHIEF Telecom Inc.		a		Revenues			518,373				—				—
												Operating costs and expenses			135,038				—				—
								CHYP Multimedia Marketing & Communications Co., Ltd.		a		Operating costs and expenses			192,787				—				—
								Chunghwa System Integration Co., Ltd.		a		Accounts payable			506,721				—				—
												Operating costs and expenses			1,225,190				—				1
												Prepayments			223,979								—
												Property, plant and equipment			672,519				—				—
								Honghwa International Co., Ltd.		a		Accounts payable			1,708,370				—				—
												Revenues			220,239				—				—
												Operating costs and expenses			7,582,106				—				3
								Donghwa Telecom Co., Ltd.		a		Accounts payable			116,562				—				—
												Revenues			192,820				—				—
												Operating costs and expenses			528,923				—				—
								Chunghwa Telecom Japan Co., Ltd.		a		Operating costs and expenses			128,268				—				—
								Chunghwa Telecom Singapore Pte., Ltd.		a		Accounts payable			174,695				—				—
												Operating costs and expenses			187,219				—				—
								Chunghwa Telecom Global Inc.		a		Revenues			142,763				—				—
												Operating costs and expenses			289,110				—				—
								CHT Security Co., Ltd.		a		Operating costs and expenses			322,151				—				—
								International Integrated Systems, Inc.		a		Accounts payable			109,050				—				—
												Operating costs and expenses			711,742				—				—
								Senyoung Insurance Agent Co., Ltd.		a		Revenues			161,981				—				—

Note 1: Significant transactions between the Company and its subsidiaries or among subsidiaries are numbered as follows:

a. “0” for the Company.

b. Subsidiaries are numbered from “1”.

Note 2: Related party transactions are divided into three categories as follows:

a. The Company to subsidiaries.

b. Subsidiaries to the Company.

c. Subsidiaries to subsidiaries.

Note 3: Transaction terms with the related parties were determined in accordance with mutual agreements when there were no similar transactions with third parties. Other transactions with related parties were not significantly different from those with third parties.

Note 4: For assets and liabilities, amount is shown as a percentage to consolidated total assets as of December 31, 2025, while revenues, costs and expenses are shown as a percentage to consolidated revenues for the year ended December 31, 2025.

Note 5: The amount was eliminated upon consolidation.

- 114 -

FAQ

What sustainability framework does Chunghwa Telecom (CHT) use in its 2025 report?

Chunghwa Telecom uses the IFRS Sustainability Disclosure Standards, specifically IFRS S1 and IFRS S2. The report also references SASB, GRI, TCFD and Taiwan’s regulations, integrating these into its governance, strategy, risk management and metrics for sustainability-related financial information.

What are Chunghwa Telecom (CHT)’s main climate targets and timelines?

Chunghwa Telecom targets net-zero emissions by 2045, 100% renewable energy use by 2040, and full electrification of engineering and official vehicles by 2030. It also aims to cut combined Scope 1 and 2 emissions 50% by 2030 from 2020 levels and Scope 3 emissions 25% from 2021.

How much revenue did Chunghwa Telecom (CHT) earn from climate-related products in 2025?

In 2025, Chunghwa Telecom generated approximately NT$20.009 billion in revenue from climate resilience–related products and services. These include satellite communications, IDC and cloud solutions that help customers manage climate risks and support a broader low-carbon transition across industries and society.

How is energy efficiency affecting Chunghwa Telecom (CHT)’s costs and emissions?

Energy-efficiency projects cut electricity use by 44.3 million kWh versus 2024, reducing power expenses by about NT$186 million. Longer term, the company expects lower operating costs and avoided carbon fees as it upgrades equipment, optimizes data centers and rolls out intelligent energy management systems.

What transition costs does Chunghwa Telecom (CHT) face from Taiwan’s net-zero policy?

To meet Taiwan’s 2050 net-zero policies and its own 2045 goal, Chunghwa Telecom incurred about NT$216 million in extra operating costs from higher renewable energy use and roughly NT$2.57 billion in related capital expenditures in the reporting year, with further significant investments expected.

How does Chunghwa Telecom (CHT) address digital resilience and cybersecurity risks?

Chunghwa Telecom builds redundancy into networks, data centers and critical systems, targeting backbone availability of at least 99.99%. It maintains ISO 27001 and ISO 27701-based controls, conducts drills and training, and keeps third-party cybersecurity and privacy certifications to limit outages and data breach impacts.

Filing Exhibits & Attachments

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